Transcript Pre-Application Manual

Pre-Application
Best Practices Training
Prepared by NCALL Research, Inc.
Updated February 2009
Throughout this slide
presentation, NCALL’s
recommended “best practices” will
be denoted with a *BP.
Introduction
What’s the Difference Between a PreApplication and a Final Application?

Pre-Application’s purpose, to demonstrate:
 Need
for the self-help program in an area(s)
 Organizational capability
 Organizational eligibility



If approved, organization can begin
working on the 523 Application
Preparing the 523 Pre-Application can take
up to one year
*BP RD does not reimburse for funds
expended before the grant period begins!

Organizations must pay for:
$
$
$
$
The cost of developing the 523 Pre-Application
Feasibility study
Program and organizational development
Preparing the 523 Pre-Application
Seek other funds or raise funds
from other sources
*BP
Rural Development

Four office levels

National Office
 Develops
policy, interacts with Congress, approves
applications

State Office
 Allocates
502 funds based on a state formula, approves
smaller grants

Area Office
 Responsible

for the 523 grant
Local Office
 Makes
and monitors the 502 loans, co-signer for
checking accounts, construction inspections
RD provides administrative and loan funds
 Expects grantees to carry out grant
agreement
 *BP A grantees working relationship with
RD is critical to the success of the program

NCALL and You
NCALL is available throughout the application
process and in administering the self-help
program
 *BP Use us as a resource anytime assistance is
needed

B. Pre-Application Format
Required Format

The pre-application:
 Format
is very important
 Is required by RD to be in a specified order
 Must be submitted in a three-ring binder with
table of contents and tabbed sections
Use NCALL’s Pre-App checklist as your
guide
 *BP
1a. Standard Form 424, “Application
for Federal Assistance, Version 2”


First form that the reviewer of your
application will see
It should provide RD with:
 How
many homes to be built
 During what period of time
 In what areas
 With what funds

These blank forms can be obtained from:
 State
or Area RD office
 NCALL Research, Inc.
 Whitehouse.gov/omb/grants/sf424.pdf
 *BP Want it fillable? Go to www.hudclips.org
1b. Survey on Ensuring Equal
Opportunity for Applicants


This survey helps to ensure that the
government is fairly distributing grant funds
See Guide for sample
2. Intergovernmental Review
Submittal


Intergovernmental Review, State Point
of Contact (SPOC) List fosters
intergovernmental partnership and
strengthens federalism
For list of appropriate contacts, see
Guide or visit
www.whitehouse.gov/omb/grants/spoc.pdf.
3. Previous Experience

RD requires that the organization have the
financial, legal, and administrative capacity to
carry out the responsibilities of the Grant
Agreement
vs.
A narrative statement about the
organization’s previous experience and
capacity to carry out the Grant Agreement is
required. It may include:
 *BP


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
Summaries of previous and current RD funded programs
Summaries of previous and current other programs
Description of current capabilities
Experience or capability of relevant staff and Board
members
Objectives of the organization

One must be “Production of affordable housing”
4. Evidence of Organization

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A copy of the provisions of state law under which the
corporation was organized, or an accurate reference to the
provisions organized under
Articles of Incorporation (certified, signed and dated)
Bylaws (certified, signed and dated)
Board list (5+, names, addresses, titles)
Certificate of Incorporation
501(c)(3) certificate
Evidence of good standing from Secretary of State
If another organization is a member of your organization –
its name, address and principal business
If not formally organized, submit proposed documents
5. Authorized Representative
of Applicant

Provide the name, address and official
position of the applicant’s representative that
is authorized to act for the applicant and work
with RD
6. Information About Sponsor



A sponsor is an organization that must have
the background, experience and financial
ability to help your organization in applying
for the 523 Grant and in carrying out the
responsibilities of the Grant Agreement
A written agreement must be shown to RD
A narrative of sponsor’s experience and
capabilities is required (same organizational
information as required in Section 3)

If no sponsor, indicate “Not Applicable”
7. Current Financial Statement

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

A financial statement is required and should
be prepared by an accountant (or sponsor’s
accountant), and must be no more than 12
months old
It must be dated and signed by the Executive
Director or Board President
Specific nature of assets and liabilities must
be identified
An audit may be used in lieu of financial
statement
8. Narrative Statement

The narrative statement should begin with a
short paragraph that summarizes:
 How
many homes are being planned
 What area they will be built
 How much grant funds are being requested
 What time period is planned (usually 24 months
but can be less)

A description of the area to be served is
needed
 *BP Include
maps, population and housing
statistics
 *BP Collect current data, include only what
supports the need
 Sources: U.S. Census, State Housing Finance
Authority, local government housing plan, area
housing authorities, area Board of Realtors

Include housing conditions and why
families need self-help housing
 *BP Analyze
your data for comprehension. What
does it show? Growth? Substandard housing?
Income qualifications? Vacant rentals? Cost of
housing?
 A need occurs when very low and low income
families want their own homes but adequate,
affordable housing is not available to them!
 *BP Prove
affordability!
Estimate the cost of the self-help homes to the
participants
 Give estimate of monthly principle, interest,
taxes, insurance (PITI) payments and total debt
ratios
 Compare this figure to the cost of homes in the
area

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Provide evidence of low-income families willing to
contribute labor
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Document names, addresses, number in household, total
annual incomes and date of contact
*BP NCALL recommends that organizations obtain at least
twice as many potential participants and would be needed
to complete the grant
*BP Include a statement on the list that the participants
have had the program explained to them and are
interested in participation and providing required own
labor
See sample form in Guide
 Evidence
required
of community support is
 Include
letters of support from local
officials, individuals and community
organizations
Develop and distribute brochures or fact
sheets. Develop a relationship with the media.
Know the benefits and drawbacks of the
program. You will be asked!
 *BP
 Benefits
 Help
of community support:
organization with leveraging additional
dollars for incorporation and start up
 Provide needed political support from town and
county governments
 Help create a positive self-help housing image
 Sources
of community support:
 Those in need of improved housing
 Town and county governments
 Churches/religious groups
 Civic organizations
 Social service agencies
 Other nonprofits
 General public
 Business/industry sectors
 Media
9. Outreach Plan for Very Low
Income

A plan is required of how you propose to reach the
very low income families


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It is important to reach families that are living in housing
that is deteriorated, dilapidate, over crowded or lacking in
adequate plumbing
VLI- Minimum of 40% of total families building in program
must be VLI
Develop a marketing strategy that will reach and recruit
the families needed for your program
Very Low Income (VLI) – 50% of area median income or below
Low Income (LI) – Between 51 – 80% of area median income
10. Budget Information – Non
Construction
 SF – 424A
 Budget Narrative
 Method of TA Costs

Proposed budget must be on form SF-424A,
“Budget Information (Non-Construction
Programs)”

Use the example in Guide to complete this form
or go to www.hudclips.org
 *BP Also
include a detailed budget and a
budget narrative
 This
will come in handy when completing the Final
Application

Authorized expenses:
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Personnel salaries
Reasonable office expenses and supplies
Employment benefit costs
Purchase or lease of power tools
Insurance
Reasonable fees for training
Consultant and legal fees
Annual audits
Prohibited use of funds:

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Paying for labor on the houses
Purchasing real estate or building materials for the families
Paying any debts, expenses or costs to the participants
Any lobbying activities prohibited in OMB Circular A-122

See Guide for:
$ SF 424A (rev. 7/97) and instructions
Budget Preparation Guide
$ *BP Budget Worksheet
$ *BP Sample Budget Narrative
$
*BP Preliminary

National Self-Help Housing Directors
Association (NSHHDA)
An organization consisting of self-help housing
grantees across the nation unified by voice and
cause
 Annual dues are required to join the association
and are allowable under the Section 523 Self-Help
Housing Grant
 Dues help to lobby Congress for increased
funding and improved laws to assist the cause of
rural housing

Current annual dues for NSHHDA:
523 Grant Amount
0 - $200,000
$200,001 - $500,000
$500,001 - $1,000,000
Over $1 million
Dues
$200
$300
$400
$500
*BP Don’t forget to add this expense into
your budget!
11. Determination of TA
Grant Amount

Maximum TA Amount Calculation is required


A letter from RD identifying what the EVMH is for
proposed counties
TA Cost is the technical assistance (TA) cost
per house and is a guide that RD uses to
estimate reasonable cost of a self-help
program
TA cost = Total grant amount / # of houses
organization proposes to build
 Example: $228,000 / 12 homes = $19,000
maximum TA cost per house

Method A: The Equivalent Value of Modest
Housing (EVMH) x 15% x Number of Homes
Proposed = Maximum TA Budget
$________ x .15 x _____ = $_____________
Example:
EVMH = $115,500 x .15 = $17,325 (TA per
home) x 12 homes = $207,900 (amount of
grant request)
Method B: EVMH – Average mortgage - $1,000 =
Maximum TA cost per house (This can only be used
by experienced grantees or those who know what
their mortgages will be.)
Example: $128,000-$105,000-$1,000=$22,000
Method C: Amount established by the State Director
to accomplish a particular goal
Use worksheet on page 83 to calculate
maximum per unit TA amount
 *BP
a realistic budget before determining
your TA grant amount to see if your budget is
truly realistic and falls within RD’s guidelines
The TA Grant amount depends on
organization’s experience and capacity
Maximum amount for any grant period will be
limited to a certain TA cost per house
 *BP Do


12. Preliminary Land Survey

Proof of available lots
Include at least the minimum amount of lots
for the Pre-Application
 Use MLS listings or deeds if the land is already
owned
 *BP Include narrative detailing expected cost and
anticipated development
 Maps showing local and regional area
are also required
 *BP
During Final Application, you will need to
show RD proof of control of lots or access to
suitable building sites as defined by RD
 The more work that you do now, the less that
you will have to do later
 *BP Land is a scarce resource; suitable land
even more scarce. Many programs have failed
or gotten off to a rough start due to land
delays. Work closely with RD to find possible
lots.

Subdivisions are time consuming, come
with many delays and have too many
unknown variables. If possible, find
developed lots for your first grant.
 *BP
13. Other Applicant Activities &
Indirect/Direct Cost

List all of the other activities that the organization is
engaged in and expects to continue


Include brief description of the programs and
organizations role in them
Indirect cost rate or direct cost allocation plan
required

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Document the indirect cost rate or the lack thereof
If an organization has never obtained an indirect cost rate,
grantee must submit the indirect or direct cost policy with
the 523 pre-application

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Prepare proposal for submission to DOI for approval
DOI will not review proposal until grant is approved

Indirect Cost
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Mechanism used by federal government
Recommended when shared costs become
impractical to be charged directly to various funding
sources
Direct Cost Allocation

Used by single funded organizations or those which
can track costs consistently
RD has a contract with Department of Interior’s
National Business Center to approve cost policies

Cognizant agency
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Usually the largest federal funding source of an organization
Acts on behalf of all other federal agencies in approving an
organization’s indirect cost rate or direct cost allocation plan
RD has contracted with the Department of Interior’s National
Business Center (DOI)
DOI may help design and will have to approve the cost plan
Indirect cost rate is proposed to the cognizant agency and
then an agreement is reached
If the USDA RD 523 grant is the largest federal funding
source, the indirect cost rate proposal and/or cost allocation
plan needs to be submitted to DOI
When comparing which method to use, consider
the time and money required to achieve the greater
degree of accuracy, avoiding inconsistent costing
*BP Expedite application processing by:
 *BP
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Including a cover letter stating that your organization
currently receives funds from USDA RD
Include the most recent audited financial statements
Need more information or sample forms? Go to:
http://www.nbc.gov/icsprep.html
Remember teamwork, if assistance is
needed in developing a plan, contact NCALL,
RD or the DOI for help
 See Guide for Sample Allocation of Shared
Costs Using a Direct Cost Allocation System
 See Guide for Sample Allocation of Shared
Costs Using a Indirect Cost Rate System
 *BP
14. Pre-Development Grant
Assistance Request

Pre-Development Funds
Purpose is to provide funds to develop a 523 final
grant application
 Available once for a defined area (for existing or
potential grantees)
 Requesting organization must lack the financial
resources necessary to develop the final
application
 Grants are for up to $10,000 for up to six months


If requesting pre-development funds include:
Brief narrative identifying the need, amount of
funds needed and projected time period
 Budget
 You may request up to $10,000 for up to 6
months

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If not requesting pre-developing funds
include:

Include a sentence to that effect in the preapplication
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If funding is available and the pre-application is
reviewed and approved, the RD State Director may
approve the request
Pre-development grant is not figured in the TA cost
per unit
Detailed accounting records of these funds must be
maintained
Authorized and prohibited uses of pre-development
funds same as those of 523 grant
*BP See Guide for sample request
15. HUD Fair Housing Marketing Plan
935.2B (8/2006)

Affirmative Far Housing Marketing Plan
HUD Form 935.2b, required for self-help program
 Follow instructions
 Use accurate information
 Marketing plan designed to attract those “least
likely to apply”
 Special outreach for those groups required
 Plan approved and monitored by Rural
Development
 See Form in Guide

16. Civil Rights Impact Analysis
Certification, Form RD 2006-38
2006-P, 2006.754(b)
 Complete this form and include it in the
application

17. Compliance Review (Preaward)
Form RD 400-8
 Hold a section for this to be added later by
RD

18. Self-Help Technical Assistance
Grant Pre-Development Agreement
1944-I, Exhibit D
 Sign and include this form if requesting PreDevelopment Grant

Do not date
 Will be dated when executed by RD

See Guide for Agreement
 If not requesting Pre-Development Grant,
include this section but write “Not Applicable”

19. Authorizing Resolution

A resolution must be adopted by the Board of
Directors:
Authorizing one or more specified persons are
authorized to act on organization’s behalf
 It must state that they are able to:

 Sign
the Grant Agreement, 1994-I, Exhibit A
 Sign Form RD 400-4 “Assurance Agreement”
 Work with RD on the self-help program

Must include authorized person’s name, title,
address
20. RD Managers’ or Area
Managers’ Recommendation

Hold a section for this to be added later by
RD
21. T&MA Contractor’s Review
and Recommendation
Hold a section for this to be added later by
RD
 Required under National Office Contract

22. OGC Review (if necessary)
If necessary, RD may send organizational
documents for OGC for their review
 Hold a section for this to be added later by
RD

23. Review Action and Letter
of Conditions

Hold a section for this to be added later by
RD
24. Request for Obligation of Funds
Form RD
Include this completed form, RD 1940-1
 At item 45, on the back, have the authorized
representative sign and date two copies of
the form
 See Guide for sample

C. Putting the Pre-Application
Together
Putting the Pre-Application
Together
Use the RD Checklist for order and format
*BP Include Table of Contents and tab the
sections to make the information easier to
locate
*BP Check every page for completeness,
signatures and dates (RD will return the preapplication if it is not complete and in order
of the Table of Contents)
REJECTED PRE-
 *BP


APPLICATION!
NCALL recommends that organizations
send their pre-application to us first
 *BP
This is considered a “DRAFT”
 We perform a “DRAFT” review that will give you
feedback on content and completion
 Make adjustments
 “Draft” is now an “Official” Pre-Application


Make three copies of the “Official” PreApplication
 Official and two copies goes to RD office
*BP
designated to receive the grant application
 You keep a copy!
 RD will keep a copy and send NCALL a copy for
review
 NCALL’s review must be completed within 15 calendar
days
 NCALL’s review letter goes to the State Director
 You cannot send or give NCALL a copy!
 Review Process
The review process should take 60 days or
less
RD does their review only if the application is
complete!
RD verifies that a need exists and that
adequate resources will be available for the
program
 Approval
 If complete, State Director requests approval
from National Office
 Once obligated, AD-622 and Letter of Conditions
issued
 *BP When you receive notice, notify NCALL so we
can set up future training (forward to us a copy
of the grant agreement)
D. Developing a Self-Help Housing
Program / Know the Program
Developing a Self-Help
Housing Program
 *BP Be realistic. Go into the process with your





eyes open
*BP Know that this is a lengthy process
*BP Recognize the commitment of staff and
board time
*BP Be aware that housing is a political animal
and requires community support
*BP Don’t expect overnight success
*BP Set realistic expectations

Be committed and serious about
developing a self-help program
*BP
 Housing will need to be a priority for you
 Accountabilities are high
 Strive to meet time frames set
 Recognize fiscal responsibilities and advantages
of self-help housing for your organization

Other ingredients to develop a successful
self-help housing program include:
*BP
 Obtain all applicable housing regulations
 Subscribe to or request housing publications such
as HAC News, NRHC Legislative Update, NCALL’s
Self-Helper
 Have access to federal and state registers
 Join the mailing list of your state housing finance
agency
 Build a housing resource library
 Join your state housing coalitions
 Join local and state chapters of NAHRO, CHRB,
etc.
 Know your local housing market
 Provide proper orientations and training of the
program for board and staff
 Visit another self-help housing organization
Program Decisions
 *BP
Determine the number of homes to build
Be very realistic!
 Consider availability of suitable building sites
 Consider need for housing in your selected area
 Consider number of persons eligible to
participate

Determine ways in which to reach verylow income
 *BP
Know your target market
 This will help you determine methods of outreach,
time needed, manpower necessary and cost
 There is more on recruitment later in the training

 *BP
Determine staff needs and size
Should correlate with number of homes to be
built
 Traditionally, staff consists of ¾ people:

Executive Director/Project Director
Group Coordinator/Loan Packager
Secretary/Bookkeeper
Construction Supervisor
Know the Program
RD instructions provide policy, guide, and
basis for the program operations. Be familiar
with them.
 Use the internet as needed to look up
regulations and information, rurdev.usda.gov
/regs/
 *BP Know 1944-I!
 Please refer to the manual for a list of other
regulations to become familiar with
 *BP
You can print out the 1944-I and HB-1
3550 but these instructions change often, so
we encourage the use of the internet
 *BP
Project Planning and Management

Project
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SH project have a beginning and an end
Should be carried out with the intent of meeting
established program goals
Costs, time schedule, and objectives are predetermined
Project vs. Organizational

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Project decisions approached differently than
organizational
Project focuses on specific time and results vs.
organizations plan to exist indefinitely
Projects need part-time resources vs. organizations need
resources full-time
 *BP
Four phases of project management
Conceiving and defining – feasibility and preapplication
 Planning – final application stage
 Implementing – grant closing to grant close out
(1-2 years)
 Completing and evaluating – happens internally
by management and the Board and externally by
RD with Final Evaluation


Planning the Project
Planning is crucial in project management
 Not a to do list
 Plan transforms work from a series of steps into a
bundle of responsibilities for results
 A good plan tells you where you are going, how
to get there and how you know that you have
arrived

Planning the Project
 Planning Steps
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Establish project objectives
Choose basic strategy for achieving the objective
Subdivide project into subunits or steps
Design necessary staffing pattern
Design cost for each subunit
 A good budget’s main function is to monitor the cost and to
avoid overruns
 You cannot estimate cost until you break down the
budget into line-items.
 Determine what training is needed for team members
 Develop necessary policies and procedures
 Develop a plan of action
Participant Recruitment &
Program Marketing
Introduction
*BP
No matter what happens, remember
these three rules:
 Do
not get discouraged
 Try something new
 Plan ahead
Developing a Recruitment Plan
Step 1 - Know Your Target Market
 Where is your targeted market located?
Work, church, home, clubs, PTA, etc.
 What media reaches them? Radio, TV,
newspaper, etc.
 Where do they go and when?
Laundromats, gas stations, grocery stores,
restaurants, daycare, community events
 Who are your community partners?
Social service agencies, lenders, rental
agencies, realtors


Ask the people who respond to recruitment
efforts
Ask social service agencies
Step Two – Analyze the Information
Review the data collected to determine where
and how to reach most families
Step Three – Investigate
 Contact organizations, employers, churches,
radio stations, newspapers, etc.
 Get the word out about your program!
 What are your costs? Are there other FREE
methods available?
Step Four – Plan and Make Decisions
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Can you delegate tasks?
Do you have to do everything yourself?
What are your time frames and dates for
objectives?
Cost is also very important. What does your
marketing and advertising budget look like?
How can you make your program its most effective?
Refer back to “Recruitment Methods” for some
ideas
Step Five – Develop a Message


Before contacting the media or producing
brochures, know what you want to say
The message is not and should not be intended
to tell everything about the program.
All advertisements must have the equal housing
opportunity logotype or slogan on them
Five elements of a good message:
1. Attract Attention – Create interest
2. Stress Advantages & Benefits of the Self-Help
Housing Program
3. Prove What you Say is True
4. Persuade
5. Ask for Action
88
Attract Attention
 An “Attention Getter” is needed to create
interest
 Could be a photo
 Use of color
 Exciting statement or question
89
Stress Advantages and Benefits



Product – the home itself
Price – Low cost of the home, Low interest
rate, Families save money
Self - Learning skills, improving their life,
becoming independent
Make a list and prioritize the benefits for your
potential participants
90
Benefits of Self-Help Housing
Means different things to different
people
 Decide which aspects are important
to your targeted market
 Incorporate these aspects into the
message
 Do not incorporate too many benefits

Sample Chart of Potential
Benefits
Product – Stress
Advantage






Modern convenient,
well built
Energy-efficient
Quality materials
Maintenance free
Designed to meet
your needs
Modern appliances
Price – Stress
Value
•House payments
based on ability to
pay
•No down payment
•Save money
•Affordable financing
•Best financing in the
country for new
construction
Self – Stress
Improvements
•Sense of accomplishment
•Independence
•Improving yourself
•Doing better for yourself
•Security. Happiness.
•Better, safer environment
for family
•Develop
construction/maintenance
skills
92
*BP
Prove What You Say Is True
Four tactics can be used:
1. Testimonials – Past client speaks of benefits
2. Comparative quality – Comparison between
self-help home vs. contractor built home
3. Reputation - If your organization has a good
reputation in the community, use it
4. Successful Performance – After 1st group is
complete, potential families and community
members see successful program and nice homes
93
Persuade
 Get the potential participants to grasp that
they can enjoy the benefits and rewards of
becoming a successful homeowner
 Many think that they cannot be a homeowner
94
Ask for Action
 Call today
 Coming by our office
 Attending the community meeting
 Mail in a coupon, etc.
 Make it easy
 Always be prepared
95
Recruitment Methods to Try

Newspapers – Both daily and weekly, try free
and paid advertising, featured article, ad
positioning is critical, classified adds great in
some areas, activities announcements
Radio - paid ads, PSAs, talk shows, interviews
 Television - featured on the local news, local

community forum programs or PSAs
96

Flyers, Posters, Handouts -

Brochures –

Direct Mailings -
simple, easy to read,
attractive flyers for public distribution in RD offices, stores,
laundromats, CAP agencies, social service agencies,
community bulletin boards, restaurant, etc.
can be the best marketing tool used, place
in supermarkets, laundromats, restaurants, waiting areas,
public service facilities
can be expensive, may be more
rewarding, church mailings, waiting lists for subsidized rental
housing, enlist assistance of social service agencies, AFDC
agencies and local employers
97
Community Meetings
 Trade Shows, Human Service Fairs, Mall
Exhibits, Community Fairs - consider time and
 *BP
effort needed
Organizations, Colleges, Trade Schools,
Headstart, Migrant Education Centers
 Community Action Agencies (CAA)
 Churches

98


Local governments – referrals for families, land, grants
Local employees - post brochures on their bulletin board, stuff
employee paycheck envelopes, or set up a table in the break/lunch area




Contact members of low-income apartment
complexes
Host a tenants’ meeting
Ask to distribute letters to persons on waiting lists
for subsidized rental housing
Meet with a core group of social service repr.,
brainstorm on how to reach families
99
*BP
Recruitment Methods
Try many options to determine what
works best for you
Stay in contact with the local media
Try the classified ads!
Radio stations – morning program usually
have a larger target listening area
TV – try to get a local featured interview. Public
service announcements (PSA) are free – use
them!
Paper distribution - Flyers, posters, handouts,
brochures
Market Research
Eliminates trial and error in recruitment
 Know which methods worked best and
are reaching target market
 Survey those who have responded to
recruitment efforts (See sample in Guide)
 Continuously review and revise
strategies to keep activities alive
 Your goal should be to have “word of
mouth” work for you
101

The News Release
Major vehicle for communicating with the
media
 Knowing the purpose, design and uses for
them can improve your chances of getting
published
 *BP Send a “thank you” note for any publicity
your agency receives

102
The following guidelines should be useful:

Decide on the message – must be interesting to target
market

Select the media – message and intended audience
usually drives which media to use

Put it in writing – prepare a properly written release
Mail to the right person

Mail by the deadline

103
Content of the Release
 Familiarize yourself with chosen publication
 Select information of interest
 Remember the 5 “W”s – Who, what, when,
where, why …and sometimes how
 Be sure that they are all in the story
104
News Release Tips
 Keep it brief
 Write in a simple, factual style
 Avoid opinions
 Don’t make assumptions
 Be accurate
 Make the story interesting
105
Structure of a News Release
Rule #1 - Keep sentences and
paragraphs short and clear
Rule #2 – Place all facts at the beginning
of the story with quotes
FACTS
DETAILS
END
*BP
News story sentences should be 16-21
words long. Paragraphs rarely should consist
of more than three sentences.
106
Other Media Tips
When the media calls:
 Be certain of who is calling and from where
 Know the reason for the interview
 Know your facts or refer him/her to the
right person
 It is ok to get back with them on information
107
Develop a list of key points
 Make time for the interview or arrange to call
them back
 Do not answer questions that would violate
confidentiality rules, legal restrictions, or
agency policy
 Do not say “no comment”, explain why you
cannot comment
 Be clear and polite
108
During the Interview







Say things that the interviewer will remember
Always tell the truth
If you do not know the answer, say so...Offer to
get back with them the answer and do so ASAP
Personalize your answers
Avoid jargon
Only state your agency’s position
Rephrase negative or objective questions
109
On the Radio
 Your voice becomes your image
 Your appearance is still important
 Maintain good posture, it aids your voice and
appearance
 Don’t let the microphone intimidate you
 Practice enunciating your words
 Practice answering anticipated questions
110
Television Appearance

Your appearance – Look in the mirror first, practice
minimizing jesters






Your attire – Be clean and professionally dressed
Avoid certain colors – Ask host what is appropriate
Speak conversationally
Follow direction on where to look when responding
to questions
Thank the host
Ask for a copy
111
Land
Finding the Right Site

Undesirable features:
Site in flood plain
 Steep terrain
 Forested lands or prime farm lands
 Site adjacent to or near airports, railroads, major
highways factories, landfills, etc.
 Soil unsuitable for on-site septic systems
 Current industrial use
 Existing easements which would interfere or
restrict the proposed building


Desirable features:









Flat or mildly sloped land
Shape and size of land lends itself to housing
Existing water and sewer
Existing paved roads
Correct zoning
Accessible to services and public facilities
Soil suitable for on-site septic system if necessary
Adequate ground water supply for wells
Uses of adjacent sites compatible to proposed project
Land Survey Criteria




Land must be in a rural area
Lot size – can not be subdivided
Roads – contiguous to and must have direct
access to a street, maintained road or
driveway, must be paved or all weather
Water – approved well or public central water
system
 *BP

Public water is preferable
Sewer – approved public sewer or septic
system
 *BP Public

sewer is preferable
Site approval – State Director delegate site
approval responsibility to appropriate person
Land Development
Key ingredient to the program
 Approach the search in an organized and
systematic manner
 Controlling land is critical
 Many other activities depend on it
 Interim financing may be necessary
 523 funds may not be used to option or
purchase land
 *BP Contact RD for ideas on where to look

Land Survey Resources









7CFR Part 3550
1924-A
1924-C
RD Community Development Manager
Health Department
County or City planner, engineer, or city planner
Soil Conservation Service Soils Book
County Court House, Tax Office, Recorder of Deeds
Utility Companies
Land Survey Process

Preparing a site search map





Identify land that is completely ineligible
Identify and plot locations with desirable features
Plot drawbacks
Talk to county governments or local universities
to help with survey process
Windshield survey – review sites for:



Topography, flood plains, erosion
Access to public roads, vegetation, existing
structures
Unique features

Land analysis form





Investigate ownership
Check into tax records
Assume that every parcel is for sale
Complete form, Attachment 6
Selecting the site







Assess suitability of the location
Check zoning
Look for community facilities
Make sure it fits RD guidelines
Would you want to live there? Why or why not?
Assess physical characteristics
Determine acquisition and development costs
Optioning vs. Purchasing

Option agreements






Contract between seller and potential buyer
Buyer not obligated to buy, seller obligated to sell
Options should be between seller and participant
See sample Option in Guide
See Option language in Guide
Purchasing land




Grantees can purchase land for later resale to
participants
Can be beneficial when purchasing multiple lots
523 funds cannot be spent for this purpose
Interim financing necessary

Interim financing
No single pot of money available
 Seller financing may be an option
 AHP, CRA, CDBG, HOME, Housing Trust
Funds
 HAC
 Other private corporations or foundations
 See NCALL’s Funding Sources Guide for more
information

E. Monthly Activities Schedule
E. Monthly Activities Schedule
See Guide for recommended
schedule of activities for preparing the
pre-application
 *BP
Personnel
Salary Ranges and Fringe
Benefits
Develop salary ranges and fringe benefits for
each position
 Both must be justified as being reasonable in
the proposed area (OMB Circular A-112,

Attachment B, Paragraph 6(2))
A good salary survey can help establish fair
and competitive rates
 *BP See Guide for sample survey

Developing Job Descriptions
See Guide for sample job descriptions
 *BP We recommend that new grantees use
the traditional SH positions
 Rural Development needs to be notified for
prior approval prior to hiring changes
occurring


Job descriptions are required, typical staffing for the
self-help program are:

Executive Director/Project Director:


Group Coordinator/Loan Packager:


Works directly with the participants, screens, counseling, training,
helping them fill out the required forms, etc.
Secretary/Bookkeeper:


Responsible for running and managing the self-help housing program
Keeps records for 523 grant funds and 502 participant loan accounts
Construction Supervisor:

Responsible for construction
Salary Range and Fringe
Benefit Areas of Concern

Job descriptions



Suitable agencies



Consider size of organization and one with a similar operation
Consider geographic and economic similarities
Consider budgetary limitations



In order to get a comparable survey, review job description, not title
Concentrate on duties
No matter what the salary survey indicates, the budget may not be
able to afford that amount
Consider hiring some part-time staff
Mutual benefit


Have personal contact
Offer to share results
Building Standards





Dwellings financed must provide modest,
decent, and sanitary housing
The home must be affordable to the family
Cost cannot exceed RD’s area loan limit
Cannot have swimming pool or income
producing facilities
Construction must meet the requirements in
1924-A
House Plans

Certified house plans will be required, during the
final application stage, for EVERY model that will be
built during the grant period


A complete set consists of plans and blueprints which
have been certified by an architect or engineer licensed in
your state
Blueprints need to include the following views with
mechanicals noted:
Foundation plan
 Floor plan
 Cross section
 Front and rear elevations
 Right and left side elevations

CERTIFIED!
Codes and Standards






Local and state building codes set the minimum
standards
Local authorities can require additional standards
All house plans must be approved by RD
Research building codes for each location since
requirements may vary
Each plan must conform to state and local codes
and comply with RD’s standards
The dwelling must also be affordable to the
applicant

There are several ways to obtain house plans:
 Local Building Supplier
 House Plan Book
 Rural Development
 NCALL
 Other Self-Help Providers
 Software – Cheap Architect
Cost of Obtaining House Plans
Take into consideration cost before
committing to the house plans
 Remember, it costs on average $500 - $700
per set of plans

You owe me $4,200!
YOU
Standardize Plans

Limit selections to three basic plans






Plans can have varying living areas and varying number
of rooms
Cost estimate and use of materials will remain the same
Construction Supervisor and participants will become
familiar with plans
Try to standardize the cabinet and kitchen
arrangement
House plans should be prepared in advance of the
formation of the first group of participants
Only one set needs to be certified original, the rest
can be copies
*BP Choose
plans based on what is in
demand by surveying the target area
and participants’ affordability!!
Fair Housing
Introduction
The right to fair housing is set by law
 Training in this area is crucial
 Effects every staff person in the self-help
program
 Right to fair housing enforced by formal
complaint process, litigation, testing and
monitoring
 Lack of knowledge is no excuse

The Fair Housing Act

Prohibits discrimination because of:
Race or color
 National origin
 Religion
 Sex
 Familial status
 Handicap / Disability

Covers most housing, definitely federally
financed
 Law effects sale and mortgage

Other Applicable Laws
Know that housing laws exist and must be enforced.
Such laws include:
 Title
VI of the Civil Rights Act of 1964
 Section 504 of the Rehabilitation Act of 1973
 Age Discrimination Act of 1975
 Title II of the Americans with Disabilities Act
 Section 109 of the Housing and Community Development
Act of 1974
 Title VIII, Title VI
 Record keeping requirements: racial & ethnic data
((1901.202(g))
Helpful Websites: HUD: http://www.hud.gov
USDA: http://www.rurdev.usda.gov
Fair Housing Marketing

Affirmative Far Housing Marketing Plan
HUD Form 935.2b, required for self-help program
 Follow instructions
 Use accurate information
 Marketing plan designed to attract those “least
likely to apply”
 Special outreach for those groups required
 Plan approved and monitored by Rural
Development

Fair Housing Advertising

To comply with Fair Housing Act
requirements must be met
No discriminatory or limiting words or phrases
allowed
 No selective use of media and models which
can lead to discriminatory results
 Use fair housing policies and practices

 All
advertising for real estate must contain the
equal housing opportunity logotype, statement or
slogan
For further details, see Guide


Equal Housing Opportunity Logotype Equal Housing Opportunity Slogan


“Equal Housing Opportunity”
Equal Housing Opportunity Statement

“We are pledged to the letter and spirit of U.S. policy
for the achievement of equal housing opportunity
throughout the Nation. We encourage and support
affirmative fair housing advertising and marketing
program in which there are no barriers to obtaining
housing because of race, color, religion, sex, handicap,
familial status, or national origin.”
Participant Selection and
the Membership Agreement
Two ways to ensure that all fair housing
laws are being followed
 *BP
Consistency
 Documentation

A person with a disability cannot be denied
the right to participate in the Mutual SelfHelp Housing Program
 RD and grantees are to make reasonable
accommodations which allow someone with
a disability to participate

“Participating family” definition allows
substitute labor with prior approval by State
Director
 In reward and corrective action, participants
should be treated equally
 *BP Follow rules in Membership Agreement,
always

Identifying and Solving Potential
Fair Housing Problems
Contact Rural Development or HUD
immediately
 Use mediation and all available resources
 Understand the complaint process

Complaints must be filled within one year
 Either HUD or RD may investigate
 Try to reach a conciliation agreement
 If agreement breached, further legal action
taken

Additional Resources
Various fair housing training materials exist
 HUD’s Fair Housing Information Clearinghouse
has brochures, videos, PSAs, posters
 Rural Development can also provide materials
and training

Stay in Compliance
 *BP Review
the Affirmative Fair Housing
Marketing Plan every quarter to insure
compliance
 Enforce Fair Housing Advertising
requirements
 Display Fair Housing Posters as required
by RD
 Questions should be addressed to State
Civil Right’s Coordinator
The End