The Heart of the Matter Presented by: David Adams August 28, 2013

1. The Heart of the Matter Presented by: David Adams August 28, 2013

2. The Heart of the MatterSteps in the Rehab Process WHY?

3. WHY? • DHCD Reports to HUD • HUD Compliance monitoring • Office of Inspector General • HUD Auditor

4. Determine & Document Eligibility • Verification of Income • HUD HH Income Form • 80% AMI • HUD Section 8 Income Guidelines • www.huduser.org • 3rd Party Documentation* • Verification of Assets • 10% of liquid assets • cash, or property immediately convertible to cash • Verification of Rent (CDBG) • NTE Fair Market Rent • 12 month lease

6. Determine & Document Eligibility • Verification of Ownership Of Property • Document • Owner-Occupied • Deed • Tax Map • GIS • Title Search • Investor-Owned (CDBG) • Contract for Purchase (Rent-to-Own) • Legal documents • Heir Properties • Mobile Homes- own real property - DMV title - document demolition

7. Determine & Document Eligibility • IPR- Certification of IPR Eligibility • HH making use of a pit privy

8. Determine & Document Eligibility (IPR) • HH with documented failure of the wastewater absorption system

9. Determine & Document Eligibility • Substandard Housing

10. Determine & Document Eligibility • Documenting Unit as Substandard Housing • DHCD HQS Inspections (2 X 2 = 4) • Section 8 Checklist • DHCD HQS Pre/Post Rehab Inspection Checklists and Certifications • (CDBG-Appendix 57; IPR-Appendix 3) • Documented Blower Door Tests (pre; post) • Documented Suitable/Unsuitable for Rehab

11. Determining & Documenting Cost • Detailed Work Write-Up • Substantial Reconstruction Worksheet (CDBGF-Appendix 59; IPR-Appendix 24) -Estimated Cost of Rehab -Estimated cost of Substantial Reconstruction

12. Documenting Proper Procurement • Process of Pre-Qualifying Contractors • Solicitation of Contractors • Advertisements • Direct Solicitation • Contractor Qualification Statement • (CDBG-Appendix 66; IPR-Appendix 25) • Rehab Oversight Board – minutes

13. Document Proper Procurement • Document Solicitation of Bids • Document Receipt of Bids • Signed Bid Forms • Bid Tabulation Sheet • Bid Opening - PUBLIC

14. Documenting Legal Requirements • Construction Contracts • 3 Party -Change Orders -Disclosure Reports ($50,000) • Attached Federal Construction Contract Language (CDBG-Appendix 61; IPR-Appendix 27) • Landlord/Tenant Agreement or Lease (CDBG)

15. Documenting Legal Requirements • A Loan Program • Deeds of Trust (reviewed) • Recordation Receipt • DOT Note • ATP • Closing Documents

16. Documenting Legal Requirements • Lead (pre 1978) • Notice of Presumption of Lead • Confirmation of Receipt of LBP Pamphlet • Lead Inspector License • RRP Certification • LBP Clearance Examination Reports • LBP Hazard Reduction Completion Notice

17. Documenting Legal Requirements • Asbestos • Inspection • Testing • Work Write Up • Referral of Contractor to: -Department of Environmental Quality -Department of Professional and Occupational Regulations -Department of Labor and Industry

18. Financial Documentation • Accounting Records Supported by Source Documentation: • Eligible Expenditure of Funds • Proper Stewardship of Funds • Contractor Payment Requests • Invoices -properly approved -as of 2012 = required • Cancelled checks • Financial Summary Report -allowable costs

19. Documentation of Project Completion • Contractor’s Paperwork • Affidavit of Release of Lien • Affidavit of Payment of Debts and Claims • Register of Contractors, Subcontractors & Suppliers • Register of Assigned Employees (CDBG)

20. Documentation of Project Completion • Final Release by Homeowner • Documentation of Homeowner/Hazard Insurance • Occupant Signed Home Maintenance Certificate -education/training/maintenance kits

21. WHY?

22. Discovering New Frontiers