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FY 2010 Section 202/811 NOFAs

FY 2010 Section 202/811 NOFAs. Part III. Community Planning and Development. Community Planning and Development Technical Processing. Areas for Scoring 202/811 Cert/Consistency RC/EZ/EC-II Bonus Points Only (2). Areas of Review Acquisition and Relocation

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FY 2010 Section 202/811 NOFAs

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  1. FY 2010Section 202/811 NOFAs Part III

  2. Community Planning and Development

  3. Community Planning and Development Technical Processing • Areas for • Scoring • 202/811 Cert/Consistency • RC/EZ/EC-II • Bonus Points Only (2) • Areas of Review • Acquisition and Relocation • Certification of Consistency with the Consolidated Plan • RC/EZ/EC-II Bonus Points • Exhibit 4(d)(iv) – Evidence of compliance with Uniform Act advance written notice to seller requirement • Exhibit 7 – Required information on relocation • Exhibit 8(e) – Certification of Consistency with the Consolidated Plan • Exhibit 8(h) – Certification of Consistency with the RC/EZ/EC-II Strategic Plan

  4. Community Planning and DevelopmentURA Acquisition Checklist Review (Exhibit 4(d)(iv)) • Applicants must comply with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA or Uniform Act) which covers acquisition of real property (with or without existing structures) 49 CFR Part 24, Subpart B and HUD Handbook 1378, Chapter 5 • For an acquisition by a Nonprofit to be exempt from the Subpart B acquisition requirements under the Uniform Act (a “voluntary” acquisition), the Nonprofit must submit evidence in accordance with the instructions for Exhibit 4(d)(iv) in the Federal Register Notice: • Evidence of compliance with the URA requirement that the seller has been provided, in writing, with the required information regarding a voluntary, arm’s length purchase transaction (i.e., (1) applicant does not have the power of eminent domain and, therefore, will not acquire the property if negotiations fail to result in an amicable agreement, and (2) of the estimate of the fair market value of the property.) 49 CFR 24.101(b)(2) • NOTE:  A certification for this requirement is not sufficient.  Evidence must be submitted to meet this requirement.  This information should have been provided before making the purchase offer.  However, in those cases where there is an existing option or contract, the seller must be provided the opportunity to withdraw from the agreement or transaction, without penalty, after this information is provided.

  5. Community Planning and DevelopmentURA Acquisition Checklist Review (Exhibit 4(d)(iv)) Exhibit 4(d)(iv) should include: Evidence that written voluntary acquisition notice was provided to seller. Evidence that estimate of Fair Market Value was disclosed to seller prior to execution of option or contract. Evidence that if the voluntary acquisition information was not provided to the seller, or the seller was not advised of the estimated value prior to execution of the option or contract, the seller was provided the opportunity to withdraw from the agreement or transaction, without penalty, after this notification and/or fair market value estimate was delivered/ disclosed to the seller.

  6. Community Planning and DevelopmentURA Relocation Checklist Review (Exhibit 7) • The Uniform Act also covers the permanent and involuntary displacement, or temporary relocation, of both residential and non-residential occupants. 49 CFR Part 24, Subpart C and HUD Handbook 1378, Chapter 3 • Acquisition by a Nonprofit of a tenant-occupied property (nonresidential or residential) can cause the tenant-occupant to qualify for assistance as a “displaced person.” • (NOTE: An owner-occupant who sells his/her property voluntarily is not considered a “displaced person.”) • Under the URA, a displaced residential tenant is entitled to advisory services, moving assistance, and in some cases, a replacement housing assistance payment. • A nonresidential tenant is entitled to advisory services, move assistance, and if they continue to operate at their new location, a reestablishment payment.

  7. Community Planning and DevelopmentURA Relocation Checklist Review (Exhibit 7) • To ensure compliance with the relocation requirements of the URA, sponsors are required to submit a statement (Exhibit 7) that: • If applicable, indicates that no relocation will occur and why • (e.g., property is vacant land, or property was unoccupied and • no persons were made to move for the project). • or (if relocation will occur) • Identifies all persons (families, individuals, businesses and nonprofit organizations) by race/minority group, and status as owners or tenants occupying the property on the date of submission of the application for a capital advance, • Indicates the estimated cost of relocation payments and other services,

  8. Community Planning and DevelopmentURA Relocation Checklist Review (Exhibit 7) • - continued – • Indicates the source of funds to be used to pay relocation • costs and evidence of commitment if funded from source • other than Capital Advance, • Identifies the staff or organization that will carry out the relocation activities, • Identifies all persons that have moved from the site within the past 12 months, and • Indicates that all persons occupying the site have been issued the appropriate required General Information Notice and advisory services information, receipt required, either at the time the option to acquire the property is executed, or at the time the application is submitted. 

  9. Community Planning and DevelopmentURA Relocation Checklist Review (Exhibit 7) • Sponsors are required to submit A STATEMENT to address Exhibit 7 requirements. • Sponsors are reminded that A STATEMENT is required. • The phrase N/A (for “not applicable“) is not a statement. • To clarify, a statement is required to address Exhibit 7, not “N/A.” • NOTE: If any of the relocation costs will be funded from sources other than the Section 202 capital advance (Section 811 capital advance), you must provide evidence of a firm commitment of these funds. • When evaluating applications, HUD will consider the total cost of proposals (i.e., cost of the acquisition, relocation, construction and other project costs.)

  10. Community Planning and DevelopmentConsolidated Plan Certification (Exhibit 8(e)) • Sponsors are required to submit Form HUD–2991, Certification of Consistency with the Consolidated Plan (Exhibit 8(e)), for the jurisdiction in which the proposed project will be located. • The certification must be made by the unit of general local government if it is required to have, or has, a complete Plan. • Otherwise, the certification may be made by the State, or by the unit of general local government if the project will be located within the jurisdiction of the unit of general local government authorized to use an abbreviated strategy, and if it is willing to prepare such a Plan. • All certifications must be made (signed) by the “certifying official” (the public official responsible for submitting the Consolidated Plan to HUD). • The certifications must be submitted as part of the application by the application submission deadline date set forth in the program section of the NOFA.

  11. Community Planning and DevelopmentRC/EC/EZ Certification (Exhibit 8(h)) • While a project need not be located in an RC/EZ/EC-II area and serve the residents of that area, a project that is located within an RC/EZ/EC-II area and that serves its residents may qualify for two bonus points. • For an application to be considered for these points, the sponsor must submit form HUD–2990, Certification of Consistency with the RC/EZ/EC–IIs Strategic Plan (Exhibit 8(h)), to certify that the project is consistent with the RC/EZ/EC–II strategic plan, is located within the RC/EZ/EC–II, and serves RC/EZ/EC–II residents. NOTE: This certification does not need to be completed/ submitted if the project site is not located within an RC/EZ/EC-II/ • N

  12. Community Planning and DevelopmentReminder! • Relocation can be both COSTLY and COMPLEX. Careful planning is a must. • Sponsors may wish to call HUD’s Office of CPD for relocation guidance before entering into a purchase agreement • To find the Regional Relocation Specialist in your area, or for URA guidance for HUD’s programs, visit HUD’s website at www.hud.gov/relocation.

  13. Readiness & Common Mistakes

  14. Re-cap on Readiness Criteria • Points awarded under rating factor 3k (202) and 3j (811) give competitive advantage to projects that are ready to start construction in a timely manner upon receipt of a fund reservation. • Tasks to complete before application submission: • Secure discretionary approvals leading up to a building permit if required • Prepare schematic design • Prepare a budget of sources and uses • Confirm that utilities are available to the site • Consider timeliness of environmental mitigation if required

  15. Common Mistakes Failure to read the General Section and the Program NOFA THOROUGHLY. Failure to obtain a DUNS No. & Register early. If HUD waiver given to submit paper appl., submitting less than original + 4 copies.

  16. Common Mistakes Submitting an application and you do not have the appropriate IRS tax exemption because the IRS is still processing your request. Submitting an application and you have no organizational experience

  17. Common Mistakes Failure to submit the electronic application in accordance with the requirements detailed in the General Section Failure to submit all of the required exhibits

  18. Common Mistakes Failure to properly label faxed and/or scanned exhibits Not using the compatible version of Adobe Reader Not allowing for sufficient time to electronically submit your application

  19. Common Mistakes You have outstanding delinquent Federal debt with no approved workout plan for repayment prior to deadline. Failure to submit your appl. to State Point of Contact (SPOC), if required, by deadline date.

  20. Common Mistakes • Failure to meet appl. deadline. • Failure to submit a Phase I (no substitutions) completed within last 6 mths for 202s and 811s with site control. • Your appl. will be rejected if a 202 or downgraded to site identified if an 811.

  21. Common Mistakes • For previous fund reservations that went to initial closing after 24, 36 or 48 months: • Reasons were not provided for delay • No indication as to why amendment $ was needed

  22. Common Mistakes For 202, failure to have site control or site does not meet HUD site and neighborhood standards. (24 CFR 891.125) For 202s and 811s with site control, the site control failed to meet minimum requirements (e.g., no reverters, etc., option must extend beyond 6 months from appl. deadline and be renewable)

  23. Common Mistakes Proposing a 202 scattered site project with less than 5 units per site. Site not properly zoned and no indication of likelihood that zoning will be changed

  24. Common Mistakes • For an 811, proposing a group home exceeding 6 residents • Requesting more units than allocated to the applicable HUD Office. • For 202, this applies to metro and non-metro categories separately

  25. Questions

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