House by House Reservation Program Notice of Funds Availability September 12,2013

1. House by House Reservation ProgramNotice of Funds AvailabilitySeptember 12,2013

2. Eligible Partner Requirements • New to MFA rehab activities • House by House Reservation Rehab partner for Program Year 2013 in good standing with MFA • House by House Reservation Rehab partner expanding into underserved area • Must serve an entire county • Tribal, Pueblo and local governments must perform one rehab outside of the tribe, pueblo or local gov’t • All Eligible Partners will recertify annually • Partner status good from January 1 – December 31 • Re-cert will occur on or around November 1 • Re-cert docs to MFA before December 15

3. Eligible Partner Requirements • Proof of 501(c)(3) • If non-profit, proof of current registration with NMAG’s office • If not local government, Letter of Recommendation from the unit of local government signed by an authorized official • Current financial audit or independent CPA’s auditors report (GAS) on the following: • Financial statements • Internal control over financial reporting and compliance • No repeat or unresolved findings • Federal funding of $500,000 requires Single Audit • If referenced in audit as a separate communication, must submit Management Response letter

4. Eligible Partner Requirements • Current Board or Tribal Resolution stating approval to apply to House by House Reservation Program • Current Board Member List including: • Name • Employer • Term length • Have functioning accounting system that is in accordance with GAAP • Resumes of Management and Administrative Team • Current General Liability Insurance Certificate • Must have been operating for a minimum of one (1) year

5. Program Requirements • Partners may impose a nominal application fee • Environmental Reviews – Local governments and Tribal entities (not tribal housing authorities) are required to perform their own ERs which must be included in the Reservation Request documents. • Cannot sub-contract any Administrative or Management services. Must have paid staff on hand. Exceptions are: • EPA Certified Lead Assessor • Construction crews • Bookkeeper/Accountant • Eligible Borrowers – at or below 60%AMI • 0 to 60% = non-amortizing, 0 percent, deferred payment, subordinate loan • Secured by lien placed on property for the amount of construction costs ONLY. Soft cost, Lead based paint fees and administrative fees not passed to the homeowner.

6. Program Requirements • Property Eligibility • Owned and occupied by applicant • Evidenced by deed and title search • Fee simple or 99 year leasehold. Tribal/Pueblo land may have 50-year lease with 50-year renewable. Inherited property with multiple owners, Life Estates or Living Trusts are now eligible. • Program Change! The 95% Area Median values have changed. Can no longer use the previous 203(b) values noted on the After Rehab Value Certificate. • Properties in floodplains will be required to obtain and maintain flood insurance. • Ineligible properties • Properties with home equity liens or real estate contracts • Tax liens • Properties within cities of Albuquerque and Las Cruces

7. Program Requirements • Leveraging and Match • Partner with NM Energy$mart Providers for weatherization • Match with non-federal funds, if possible • Subsidy amounts • Hard construction costs capped at $65,000 • Soft costs capped at $15,000 to offset: • Direct project related salaries for Project/Program Manager, Administrative Assistant, Construction Manager to prepare: • Work write-ups, cost estimates • Bid Documents, bid opening • Environmental review • Progress inspections • Fees: • Title Search • Appraisal • Recording fees for Covenants/Tribal Land Award Agreements • Admin fee capped at 3.0%

8. Program Requirements • Manufactured homes eligible for program • Replacement must be set on original foundation • See Asbestos below • Lead Based Paint required for all homes built prior to 1978 including homes being torn down and replaced with new housing • Asbestos – all homes being demolished or renovated must follow National Emission Standards for Hazardous Air Pollutants (NESHAP), 40 CFR Part 61, Subpart M. • http://www.nmenv.state.nm.us/aqb/asbestos/ • Fees for inspections are an eligible soft cost • HQS Property Standard is being phased out and replaced with UPCS

9. Program Requirements • 2013 Eligible Partners may have up to five (5) projects open at one time • All other Eligible Partners may have up to three (3) projects open at one time • All projects must be completed and closed out with MFA within 120 days. • Eligible partners are responsible for guaranteeing that the work is inspected and completed • Progress reports with pictures are required for all requests for reimbursement for hard construction costs!

10. Submission of Projects and Invoicing • Funds are reserved on a first come, first served basis • New Procedure Checklist: • Completed Reservation Request Form • Homeowner Verification Package includes • Application • Title Search (not applicable for Tribal/Pueblo projects) • Work write-up and cost estimate • Income verification and backup docs • Signed Lead Based Paint notificaiton • Environmental Review Forms • Appraisal or Property Value Verification (for Tribal/Pueblo projects) • Schedule K – Budget form • HOME Project Setup Form

11. Submission of Projects and Invoicing • MFA will issue a combined Reservation Verification and Notice to Proceed letter. • This combined letter must be signed by the Eligible Partner and faxed or emailed back to the MFA Program Manager. • MFA Program Manager will email the assigned project number and Covenant or Tribal Land Award Agreement to Eligible Partner • Invoicing – no restriction on the number of invoices that can be submitted but all invoices must include the following documents: • Progress inspection notes • Photos of the completed work being invoiced • print screen of SAM.gov for Contractor • Timesheets showing hours worked in program

12. Submission of Projects and Invoicing • Final documentation and invoice • HOME Completion Report • Copies of authorized change orders, if applicable • Release of liens by contractor and subcontractors • Original recorded Award and Restrictive Covenants Agreement, or Tribal Land Award Agreement • Request for Reimbursement with copy of contractor final invoice. • Request for Reimbursement for Lead-Based Paint (if applicable)*** • Request for Reimbursement for Asbestos (if applicable)*** • *** can be submitted on earlier invoice

13. Submission of Projects and Invoicing • The following documents must be maintained in the Agency’s Client File: • Copy of notarized Award and Restrictive Covenants Agreement or Mortgage and Promissory Note. • Evidence of Property Ownership (Fee Simple or 99 year leasehold interest only) • Print Screen of SAM.Gov search of Homeowner • Borrower Verification Form (in conjunction with Covenant, TLAA or Mortgage) • Evidence of Flood Insurance (if applicable) • Copy of bid documents and advertisement. • Pre-Construction Conference Report with Contractor Certification of eligibility to perform federal work (SAM.gov). • Copy of executed Construction Contract with scope of work attached as an Exhibit. • Copies of Lead-Based Paint Risk Assessment, Notification Certification(s), and Clearance (if applicable) • Copy of print screen of SAM.gov for Contractor – must submit with each request for reimbursement • Resource Efficiency Checklist • Punchlist (if applicable)