HUD proposed calculating 95 percent of median purchase price for each MSA or county and providing the limits annually, as it has been doing for informational purposes since 2008. Other commenters expressed concern about the effect that proposed CHDO-related changes would have on these organizations. Section 92.254(a)(3) should have stated that the completion of construction triggers the beginning of this 6-month period. In addition, during the period of affordability, records for rental projects demonstrating compliance with the property standards and financial reviews and actions pursuant to 92.504(d). If the housing is not occupied by eligible tenants within six Start Printed Page 44673months following the date of project completion, HUD will require the participating jurisdiction to submit marketing information and, if appropriate, submit a marketing plan. HUD is adopting the proposed provisions, but has added a new paragraph (3) that explicitly states that these provisions do not apply to owner-occupied rehabilitation projects where assistance is provided as a grant or to homebuyer assistance projects that do not involve development or rehabilitation of housing (e.g., downpayment assistance). The Local Employment Dynamics (LED) Partnership is a voluntary federal-state enterprise created for the purpose of merging employee, and employer data to provide a set of enhanced labor market statistics known collectively as Quarterly Workforce Indicators (QWI). HUD No. HUD Response: HUD acknowledges that the proposed rule may have caused some confusion by using the term project completion in 92.254(a)(3) when describing the point at which the proposed 6-month timeframe for sale or conversion of homebuyer units is triggered. (4) If the nonprofit lender is a subrecipient or contractor that is receiving HOME assistance to determine that the family is eligible for homeownership assistance, but the participating jurisdiction or another entity is making the assistance to the homebuyer (e.g., signing the documents for the loan or the grant), the requirements of paragraphs (e)(2) and (3) of this section are applicable. Comments: Some commenters expressed concern that HOME administrative funds would not provide sufficient resources to pay for type of oversight. The HOME statute establishes four eligible activities: Acquisition, rehabilitation, new construction, and tenant-based rental assistance. HUD proposed changes to 92.205(e)(2) that would establish a 4-year time period from commitment of HOME funds and set-up of a project in IDIS to complete the project. This rule was determined to be a significant regulatory action, as defined in section 3(f) of the order (although not an economically significant regulatory action under the order). edition of the Federal Register. HUD is aware that some participating jurisdictions are not familiar with UPCS, and agrees with commenters that a transition period and training would be helpful. A project's designation as an SRO cannot be inconsistent with the building's zoning and building code classification. HUD is therefore adopting the proposed rule language without change. Maximum per-unit subsidy amount, underwriting, and subsidy layering. The person who has the life estate has the right to live in the housing for the remainder of his or her life and does not pay rent. In fact, adopting the suggested language would limit flexibility to use other models of permanent supportive housing. (2) Adjusted gross income as defined for purposes of reporting under Internal Revenue Service Form 1040 series for individual Federal annual income tax purposes. HUD proposed that, where applicable, housing would be required to be improved to mitigate the impact of disasters such as earthquakes, hurricanes, flooding, and fires. The agreement between the participating jurisdiction and the subrecipient must include: (i) Use of the HOME funds. The program was designed to reinforce several important values and principles of community development. Comments: Several commenters objected to this provision because they stated it would preclude PHAs from forming CHDOs that would be controlled by a PHA-appointed board and staffed by PHA employees. In the absence of such laws or codes, the installation must comply with the manufacturer's written instructions for installation of manufactured housing units. In 92.503, paragraph (b)(3) is revised to read as follows: (3) HUD will instruct the participating jurisdiction to either repay the funds to the HOME Investment Trust Fund Treasury account or the local account. HUD proposed revising the conflict of interest provisions of 92.356(b) to clarify that the covered conflict involves a financial benefit or interest, and that covered familial relationships are limited to immediate family members. In 92.551, paragraph (c)(1)(vii) is redesignated as paragraph (c)(1)(viii) and revised, new paragraphs (c)(1)(vii) and (c)(1)(ix) are added, and paragraph (c)(2) is revised to read as follows: (vii) Establishing procedures to ensure compliance with HOME requirements; (viii) Making matching contributions as draws are made from the participating jurisdiction's HOME Investment Trust Fund United States Treasury Account and establishing a remedial plan to make up the matching contributions deficit; and. The housing must meet the accessibility requirements of 24 CFR part 8, which implements Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. These inspections do not need to be tied to the progress payments. Another commenter questioned the legal basis for participating jurisdictions to approve the amount of rent increases as long as rents remain at or below the HOME maximum rent limits. Site and Neighborhood Standards (92.202), Required Source Documentation for Income Determinations, Federal and Military Cost of Living Allowance, Single Income Definition for Each HOME-funded Program, d. Eligible Activities: General (92.205), Housing Must Meet Property Standard To Be Eligible, Acquisition of Vacant Land or Demolition Are Not Eligible Stand-Alone Activities, e. Eligible Project Costs and Eligible Administrative and Planning Costs (92.206 and 92.207), f. Eligible Community Housing Development Organization (CHDO) Operating Expense and Capacity Building Costs (92.208), g. Tenant-based Rental Assistance: Eligible Costs and Requirements (92.209), Preferences for HOME Tenant-Based Rental Assistance, Tenant-Based Rental Assistance in Self-Sufficiency Programs, h. Troubled HOME-Assisted Rental Housing Projects (92.210), i. Lot, square, and subdivision data may be substituted for the street address. HUD and other federal agencies are currently engaged in a pilot program to examine ways to align the property inspections required by different housing programs. In accordance with 92.201, the written agreement must either require the State recipient to comply with the requirements established by the State or require the State recipient to establish its own requirements to comply with this part, including requirements for income determinations and underwriting subsidy layering guidelines, rehabilitation standards, refinancing guidelines, homebuyer program policies, and affordability. HUD proposed revising 92.250(b) to require participating jurisdictions to: (1) Evaluate subsidy layering and conduct or examine the underwriting of all projects to ensure that the HOME subsidy is not excessive and does not result in an undue or excessive return to the owner; and (2) adopt underwriting and subsidy layering guidelines that include an assessment of, at minimum, the market conditions of the neighborhood in which the project will be located, the experience of the developer, the financial capacity of the developer, and firm financial commitments for the project. Projects that encounter extraordinary circumstances can be dealt with administratively. 3601-3619). HUD received many comments regarding the point at which a vacant unit should trigger HUD review of the marketing plan or a requirement for enhanced marketing efforts. (2) HUD may also change the method of payment from an advance to reimbursement basis and may require supporting documentation to be submitted for HUD review for each payment request before payment is made; determine the participating jurisdiction to be high risk and impose special conditions or restrictions on the next year's allocation in accordance with 24 CFR 85.12; and take other remedies that may be legally available. HUD proposed rearranging existing provisions in the definition of homeownership in 92.2 to improve clarity, as well as clarifying that contracts for deed (also known as installment contracts or land sales contracts) and mutual or cooperative housing that receives LIHTC do not constitute homeownership. Commenters stated that it would be infeasible for projects that already have a legally binding written agreement or are already underway to comply with many of the requirements of the proposed rule. HUD proposed revising 92.222(b) so that HUD would take the extent of a disaster's fiscal impact on a participating jurisdiction into account when determining whether to grant the reduction, as well as the amount and duration of any match reduction. (k) Tenant selection. (4) The termination of the restrictions on the project does not terminate the participating jurisdiction's repayment obligation under 92.503(b). HUD establishes a HOME Investment Trust Fund for each participating jurisdiction, providing a line of credit that the jurisdiction may draw upon as needed. In addition, HUD will issue a notice that identifies which of the observable deficiencies in UPCS that participating jurisdictions must be corrected as part of the rehabilitation standards they adopt. Covered multifamily dwellings, as defined at 24 CFR 100.201, must also meet the design and construction requirements at 24 CFR Start Printed Page 44671100.205, which implements the Fair Housing Act (42 U.S.C. A CHDO that is a sponsor of HOME-assisted rental housing owns and develops the rental housing project that it agrees to convey to a private nonprofit organization at a predetermined time after completion of the development of the project. Comments: Some commenters supported the requirement that participating jurisdictions develop and follow written policies and procedures to administer their HOME programs. See http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/guidebooks/4930.3G. However, several commenters opposed permitting HOME tenant-based rental assistance in connection with self-sufficiency programs without specifying the basis of their objection. In 92.222, revise paragraph (b) to read as follows: (b) Reduction of match for participating jurisdictions in disaster areas. (C) The property owner must annually certify to the participating jurisdiction that each building and all HOME- assisted units in the project are suitable for occupancy, taking into account State and local health, safety, and other applicable codes, ordinances, and requirements, and the ongoing property standards established by the participating jurisdiction to meet the requirements of 92.251. An organization that is created by a governmental entity may qualify as a community housing development organization; however, the governmental entity may not have the right to appoint more than one-third of the membership of the organization's governing body and no more than one- third of the board members may be public officials or employees of governmental entity. Several commenters asked that HUD clarify that participating jurisdictions may enter into agreements that allow inspections to be done by a subrecipient or other qualified third party that is independent of the developer carrying out the activity. Since the promulgation of the final rule in 1996, many HOME participating jurisdictions have adopted more complex program designs. Comments: A few commenters supported the requirement that the housing must meet all applicable state and local code requirements and ordinances, but suggested that HUD not require participating jurisdictions to inspect or enforce those local standards. HUD proposed several revisions to 92.214(b) for the purpose of clarifying the prohibition against program participants charging fees to cover their administrative costs and that the amount of application fees charged must not create an undue impediment to a low-income family, a jurisdiction, or other entity's participation in the participating jurisdiction's HOME program. A faith-based organization that is a recipient or subrecipient of HOME program funds is eligible to use such funds as provided under the regulations of this part without impairing its independence, autonomy, expression of religious beliefs, or religious character. Other commenters stated that the prohibition on relying on volunteers to demonstrate capacity would affect faith-based and other small organizations. HUD Response: HUD's intent in proposing this requirement was to establish a standard period during which all participating jurisdictions must obtain income documentation. However, the HOME regulations do not prohibit other funding from being deposited in escrow accounts for recipients of HOME-funded tenant-based rental assistance. The agreement must describe the use of HOME funds for operating expenses; e.g., salaries, wages, and other employee compensation and benefits; employee education, training, and travel; rent; utilities; communication costs; taxes; insurance; equipment; and materials and supplies. Several commenters stated that contributions to homebuyer housing that are included in the homebuyer's mortgage serve the important purpose of enabling the housing developer to roll the value of the contributions forward into the next affordable homebuyer unit it develops. For tenant-based rental assistance, project completion means the final drawdown has been disbursed for the project. (2) Targeted assistance. The fees must be based upon the average actual cost of performing the monitoring of HOME-assisted rental projects. (c) Termination of tenancy. New paragraphs 92.250(b)(3) and (4) have been added to provide this clarification. The proposed rule required that rental housing that is developed or owned by a CHDO must be owned by a CHDO throughout the period of affordability. Another commenter suggested that HUD adopt a phased approach to implementing the new limits. (ii) A market analysis or evaluation of developer capacity is not required. Owners must annually provide the participating jurisdiction with information on rents and occupancy of HOME-assisted units to demonstrate compliance with this section. 794), and Titles II and III of the Americans with Disabilities Act (42 U.S.C. Several commenters approved HUD's proposal to permit participating jurisdictions to use the greater of its HUD-calculated 95 percent of area median purchase price or the Census Bureau's median sales price for single family houses sold outside of MSAs as the HOME homeownership limit for new construction units. (l) Use of Section 8 assistance. Several of these commenters suggested that HUD adopt 95 percent of the national median sales price as the HOME homeownership Start Printed Page 44654limit. HUD clarifies that the definition of permanent foundation means a foundation system of supports that is capable of transferring all design loads to the ground and meets the requirements of 24 CFR 203.43f(c)(i). Some commenters suggested that the proposal to require a re-inspection within 12 months of when a deficiency that must be corrected is observed is too long a time to have lapse. Other commenters expressed concern that the student housing exclusion will negatively affect persons with disabilities and the homeless who may be participating in classes as part of a broader supportive or transitional housing program. Two commenters suggested that HUD adopt a higher number of units (between 20 and 30 HOME units) as the unit threshold for applicability of this requirement. During the period of affordability, the participating jurisdiction must perform on-site inspections of HOME-assisted rental housing to determine compliance with the property standards of 92.251 and to verify the information submitted by the owners in accordance with the requirements of 92.252. The use of HOME funds may include, but is not limited to, rehabilitation of the HOME units and recapitalization of project reserves for the HOME units (to fund capital costs). HOME Investment Partnerships Program Policies and Procedures Guide County of Ventura HOME PJ - Participating Jurisdiction Community Development - County Executive Office CEO Office #L1940 800 South Victoria Avenue Ventura, CA 93009 (805) 654-2876 April 2008 Revised July 2013 GUIDE TO HOME POLICIES AND PROCEDURES Affirmative Marketing; Minority Outreach Program (92.351), 1. 2013-17348 Filed 7-23-13; 8:45 am]. (1) Rehabilitation standards. In this final rule, HUD establishes a definition of owner that allows for a CHDO to receive CHDO set-aside funds if it has the capacity to own and operate HOME-assisted housing, even if it does not have the capacity to develop it. Homeownership. Comments: A commenter suggested that the property standards language should reference the National Fire Protection Association (NFPA) 101, Life Safety Code or NFPA 5000, Building Construction and Safety Code, and include several specific requirements to address fire safety objectives. Use of certified REAC inspectors is not required. However, HUD has determined that these changes are necessary to enhance accountability and oversight and help ensure that HOME program funds deliver their intended benefit as expeditiously and effectively as possible. Register (ACFR) issues a regulation granting it official legal status. (1) Only the actual HOME eligible development costs of the assisted units may be charged to the HOME program. Requiring participating jurisdictions to clearly define these terms is expected to encourage participating jurisdictions to improve their ability to design resale requirements that are understandable to potential homebuyers and reflect the local housing market. Information about this document as published in the Federal Register. The HOME program is the largest federal block grant to States and local governments that is designed exclusively to create affordable housing for low-income households. I am dynamic, enthusiastic, and motivated to learn more in the Digital Economy and Marketing area.<br><br>Excellent Digital Marketing and inter-personal skills . HUD received 322 public comments in response to the December 16, 2011, proposed rule. Other commenters expressed uncertainty over how the statutory rent provisions applicable to HOME-assisted units could be met in a public housing unit and requested that HUD provide additional guidance . The participating jurisdiction's standards must require the housing to meet the lead-based paint requirements at 24 CFR part 35. HUD Response: Several provisions in the proposed rule that are being adopted by this final rule are best practices already in use by participating jurisdictions, and this final rule codifies those practices for purposes of uniformity and increasing accountability and performance under the HOME Program. HUD proposed a revision to 92.252(a) to specifically state that HOME rent limits include both rent and utilities or utility allowance. The HOME program has been amended several times since then by subsequent legislation, most recently on July 23, 2013. Comments: A commenter supported the clarification provided by the revised definition. Several commenters requested more information about what HUD envisioned would be in written methods and materials and asked that HUD provide training, guidance, templates with recommended minimum standards, and other technical assistance from HUD to help participating jurisdictions implement this requirement. (iii) Disaster mitigation. This rule eliminates the Census long form definition from the HOME regulations. The participating jurisdiction must conduct progress and final inspections of construction to ensure that work is done in accordance with the applicable codes, the construction contract, and construction documents. The proposed rule added language to 92.206(b)(1) to condition refinancing as an eligible cost to projects in which the cost of the actual rehabilitation is greater than the amount of debt that is refinanced with HOME funds. Converting rental units to homeownership units for existing tenants. The number of housing units on the lot may not be decreased or increased as part of a reconstruction project, but the number of rooms per unit may be increased or decreased. In 92.201, revise paragraph (a)(2) to read as follows: (2) The participating jurisdiction may only invest its HOME funds in eligible projects within its boundaries, or in jointly funded projects within the boundaries of contiguous local jurisdictions which serve residents from both jurisdictions. Major systems are: structural support; roofing; cladding and weatherproofing (e.g., windows, doors, siding, gutters); plumbing; electrical; and heating, ventilation, and air conditioning. (5) HOME-assisted rental housing is also sponsored by a community housing development organization if the community housing development organization developed the rental housing project that it agrees to convey to an identified private nonprofit organization at a predetermined time after completion of the development of the project. Comments: Only a few commenters commented on this provision, but they were all supportive of the change. Other commenters urged HUD to require that the existing period of affordability be extended on all projects that receive additional HOME funds. However, HUD chose not to list this use because the use of HOME funds for this purpose is relatively rare. HUD Response: HUD did not find it necessary to specifically state in the HOME regulations that the selection of owners, developers and sponsors of housing is not subject to the procurement rules at 24 CFR part 84 and part 85, although a participating jurisdiction may choose to follow these requirements. Affirmative marketing; minority outreach program. This language prohibited costs such as annual unit inspections from being charged to a tenant-based rental assistance project. In 92.202, revise paragraph (b) to read as follows: (b) New rental housing. As explained in the preamble to the proposed rule, waivers of the timeframe can be granted in the event of widespread destruction of housing due to natural disaster. 39. HUD has determined that the capital needs assessment requirement would be overly burdensome for multifamily projects with less than 26 units. Comments: While a few commenters expressed their support for this change, the majority of commenters commenting on this provision expressed their opposition to the requirement that participating jurisdictions examine at least 3 months of source documentation when determining income. (xi) Fees. The total HOME funding for the project (original investment plus additional investment) must not exceed the per-unit subsidy limit in 92.250(a). 11. For complete information about, and access to, our official publications [4] HUD may approve one or both of the actions described in paragraphs (b) and (c) of this section to strategically preserve a rental project after consideration of market needs, available resources, and the likelihood of long-term viability of the project.
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