House by House Reservation Program Notice of Funds Availability June 27,2012 The webinar will start shortly

1. House by House Reservation ProgramNotice of Funds AvailabilityJune 27,2012The webinar will start shortly

2. New program • Replaces the Block Grant (RFP) and former House by House Program • Subsidy stays at the maximum $80,000 per unit • New Program Manual under construction

3. Eligible Partner Requirements • New to MFA rehab activities • 2011 Block Grant or House by House partner in good standing with MFA • Any entity where significant activities related to providing housing or services to low to moderate income households • NEW**** Must serve an entire region • Tribal, Pueblo and local governments must perform one rehab outside of the tribe, pueblo or local gov’t

4. Eligible Partner Requirements • 2011 Block Grant recipients and 2011 House by House Eligible Partners in good standing with MFA automatically become 2012 House by House Reservation Program Eligible Partners • 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

5. 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

6. 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

7. Program Requirements • 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 80%AMI • 0 to 59.9% = non-amortizing, 0 percent, deferred payment, subordinate loan • 60 to 80% = amortized, 1 – 2% interest • 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.

8. 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 • Value of home cannot exceed HUD published 203(b) value as determined by appraisal • Properties in floodplains will be required to obtain and maintain flood insurance. • Ineligible properties • Properties with home equity liens • Tax liens • Properties within cities of Albuquerque and Las Cruces

9. Program Requirements • Leveraging and Match • Must 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 3.5%

10. 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 • ***NEW 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

11. Program Requirements • 2011 Block Grant recipients 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

12. 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

13. 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 EPLS.gov for Contractor

14. 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

15. 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 EPLS.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 (EPLS.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 EPLS.gov for Contractor – must submit with each request for reimbursement • Resource Efficiency Checklist • Punchlist (if applicable)

16. Other Notable • Using own in-house labor - Beginning this program year, eligible partners that have their own labor force will be allowed to bid on their rehab projects. • Still have to put project out for bid • 3 bids (including the eligible partner) • If bids are within 10% (high or low) of cost estimate, the homeowner must pick the contractor • All bid responses must be kept with the client file, not just the bid that was chosen