HomeMy WebLinkAbout05.E- City Manager 5.E
RESOLUTION (ID #3213) DOC ID: 3213 B
CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION
Request for Proposal
From: Allen Parker M/CC Meeting Date: 05/19/2014
Prepared by: Brandon Mims, (909) 384-5122
Dept: City Manager Ward(s): All
Subject:
Resolution of the Mayor and Common Council of the City of San Bernardino Authorizing the
Issuance of a Request for Proposals for Affordable Housing Projects Services. (#3213)
Current Business Registration Certificate: No
Financial Impact:
None; request for bid only.
Motion: Adopt the Resolution.
Synopsis of Previous Council Action:
None.
Backp,round:
The Home Investment Partnerships Program (HOME) is a federally funded program aimed at
increasing the availability of affordable housing for low income residents, those living on less
than 80%of the area median income. The City has successfully used the program in the past to
develop affordable rental/single-family housing projects, including senior housing projects.
The attached Request for Proposal (RFP)requests proposals for a variety of affordable housing
projects-- it is not location specific and does not designate a project type. At the close of the
RFP process, staff will make a recommendation to Council on the project(s) that best suits the
City's needs and satisfies our HOME program(expenditure) commitment deadlines of July 31,
2014 and August 31, 2014.
City Attorney Review:
Supporting Documents:
reso 3213 (PDF)
4monthhomedead 2014 sbc (PDF)
HOME Program RFP (DOCX)
HOME program eligibility criteria (DOCX)
Updated: 5/8/2014 by Jolena E.Grider B Packet Pg. 122
5.E.'
RESOLUTION NO.
1
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AUTHORIZING THE ISSUANCE OF A REQUEST FOR
3 PROPOSALS FOR AFFORDABLE HOUSING PROJECTS SERVICES.
4 NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
5 COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
6 SECTION 1. The Director of Administrative Services is hereby authorized to issue a
7
Request for Proposals (RFP) for Affordable Housing Projects services, attached hereto as
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9 Exhibit"A"and incorporated herein.
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10 SECTION 2. The authorization granted hereunder shall expire and be void of no a
11 further effect if the Request for Proposals (RFP) for Affordable Housing Projects services is
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12 not issued within sixty(60) days following the effective date of the Resolution. X
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FPacket Pg. 123
I RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
2 SAN BERNARDINO AUTHORIZING THE ISSUANCE OF A REQUEST FOR
PROPOSALS FOR AFFORDABLE HOUSING PROJECTS SERVICES.
3
4 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
5
Common Council of the City of San Bernardino at a meeting
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7 thereof, held on the day of , 2014, by the following vote,to wit:
8 Council Members: AYES NAYS ABSTAIN ABSENT a
9 MARQUEZ N
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BARRIOS a
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12 VALDIVIA
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Georgeann Hanna, City Clerk
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20 The foregoing resolution is hereby approved this day of ,2014.
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22 R. Carey Davis,Mayor
23 City of San Bernardino
24 Approved as to form:
25 Gary D. Saenz, City Attorney
26 By: a.
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Packet ft. 124'
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U.S.Department of Housing and Urban Development
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* Los Angeles Field Office, Region IX
����ff� . 611 W. 61h Street, Suite 1100
0E Los Angeles, CA 90017
APR 14 2014
Allen Parker,City Manager
City of San Bernardino LL
ATTN: Brandon Mims W
300 North "D" Street, Sixth Floor
San Bernardino,CA 92418 0
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Dear Mr. Parker:
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Subject: HOME Program 2012 Commitment/2009 Expenditure Deadline =
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Please be advised that our records indicate that the City is in danger of missing two
HOME program deadlines,relating to commitment and expenditure, which occur on July 31, 0
2014 and August 31, 2014,respectively. If not committed within the applicable 24-month Q
period,and not expended within the 60-month period,the funds will be de-obligated.
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The HOME Program statute provides that funds are available to participating
jurisdictions (PJs) for commitment to affordable housing for a period of 24 months after the last n
day of the month in which the Department of Housing and Urban Development(HUD)notifies c
the PJ of HUD's execution of the HOME Investment Partnerships Grant Agreement. This N
provision is implemented by regulation at 24 CFR 92.500(d).
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The HOME Program regulation also provides that HOME funds are available for o
expenditure for a period of 60 months after the last day of the month in which the Department of
Housing and Urban Development(HUD)notifies the PJ of HUD's execution of the HOME o
Investment Partnerships Grant Agreement. This provision is also implemented by regulation at E
24 CFR 92.500(d).
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Enclosed is a copy of the applicable page of the Deadline Compliance Status Report
which identifies the cumulative commitment and expenditure requirement amounts through r
February 28,2014,as well as the amounts committed and expended by the City, as reported in a
j IDIS, through the date of the report. The report shows a commitment shortfall of$2,533,338 and
an expenditure shortfall of$1,660,619 for your jurisdiction. This information is updated
monthly on the HOME website at:
http://www.hud.gov/offices/cpd/affordablchousing/reports/#dcr.
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Packet Pg.125'
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Prior to the requirement deadlines, we are giving the City the opportunity to update IDIS
with any commitments and expenditures not previously recorded and to identify and correct
errors in IDIS. Please note that any cancellation of activities may negatively impact your ability a
to meet your requirements.
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For more information on these requirements refer to HUD Notice CPD 07-06, d
Commitment, CHDO Reservation, and Expenditure Deadline Requirements for the HOME °
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Program. If you have any questions or require assistance,please contact Arnold Sison, _
Community Planning&Development Representative at(213)534-2560, or via email at
arnold.c.sison @hud.gov. °
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Sincerely,
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William Vasquez,Director
Office of Community Plan ' y
And Development v
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City of San Bernardino
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REQUEST FOR PROPOSALS (RFP) M
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For Affordable Housing Projects W-
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RFP Release Date:
May , 2014 =
Proposal Submittal date: E
June , 2014
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City Manager's Office
300 N. "D" Street, 6th Floor
San Bernardino, CA 92418
(909) 384-5122
Packet Pg. 127
City of San Bernardino - RFP for Affordable Housing Projects
I. INTRODUCTION
A. Purpose
The City of San Bernardino, hereafter referred to as "City," is seeking proposals
from experienced and certified Community Housing Development Organizations
(CHDOs), Non-Profit, and For-Profit developers hereafter referred to as
"Applicant(s)," to provide affordable housing opportunities. The City has
identified up to two million dollars ($2,000,000) available that may be awarded to
qualified projects. The City will give preference to three (3) specific project types:
1. Homebuyer Assistance Program
2. New construction of affordable housing units n.
3. Acquisition and rehabilitation of rental buildings that are significantly
blighted.
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These projects represent some of the most pressing housing needs in the City. 0-
This RFP is released to identify projects which are ready for construction, N
acquisition, and/or rehabilitation activities. The proposal should not represent a
project that is conceptual in nature. Also, the proposal must clearly state the
entire scope and anticipated accomplishments of the housing activity proposed.
If funded, under no circumstances, must the applicant re-define, re-negotiate or -a
otherwise change the scope or the original intent of the proposal. °
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City staff will review the responses to this RFP for completeness and evaluate r;
them for compliance with HOME Program Regulations, financial feasibility, and M
project readiness and timeliness. If a project is recommended for approval, it will
be presented to the City of San Bernardino City Council for final approval. U.
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B. Program Background
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Each year since funding was originally authorized by the Cranston-Gonzalez LU
National Affordable Housing Act of 1990, the City of San Bernardino has p
administered funds provided by the Department of Housing and Urban =
Development (HUD) for eligible activities under federal regulations for the HOME
Investment Partnership (HOME) Program. Funds are limited, and to be eligible, E
projects must comply with all HOME Program Regulations.
The City of San Bernardino HOME Program finances projects that increase the a
supply of affordable housing units in the City, for the purpose of providing
affordable housing opportunities to low and lower-income households. Eligible
projects include:
• Homeownership Assistance Programs
• Construction of new affordable housing units for rental and
homeownership
• Acquisition and rehabilitation of existing housing for rental and
homeownership
Packet Pg. 128
City of San Bernardino - RFP for Affordable Housing Projects
HOME funds must be used to assist households with incomes at or below 80% of
the area median income (AMI). HUD published HOME income limits can be
found at: , and are subject to change.
The HOME Program has specific targeting restrictions for HOME assisted rental
units. These HUD published restrictions can be found at:
The HUD published HOME Program Rent Limits can be found
at: , and are subject to change.
Assistance is provided as HOME Program loans based on the individual needs of
the project. A minimum one thousand dollars ($1,000) per unit subsidy is
required. The maximum per unit subsidy is established by HUD and can be
found at: u°-.
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The Affordability Period ("Affordability Period") is the number of years during U
which restrictions on rents and occupancy are required and is established by c
federal regulations. Since the goal of the City is to provide long-term affordability a.
for all assisted projects, restrictions will be imposed that will remain in effect for
the longest feasible time. The length of the restriction period is dependent upon 3
the amount of HOME funding provided. For new construction projects, the x°
minimum Affordability Period is twenty (20) years. Typically, the City will provide a)
a loan with a term of twenty(20)years, with a corresponding Affordability Period. 3
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For rental projects, HUD establishes HOME rent limits on an annual basis. The
HOME rent limits include all utilities except telephone and cable. Projects a
assisted under the HOME Program must not exceed the HOME rents for a
specified percentage of units during the Affordability Period. HUD also
establishes income levels each year according to household size. The HOME- a
assisted units can only be rented to households meeting those income level u-
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restrictions. E
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Utility allowances for rental projects can be found at: o
and are subject to change. °-
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Rehabilitated units must meet, at minimum, HUD's Housing Quality Standards =
(HQS), including hazard reduction of asbestos and/or lead-based paint in the
structure. a
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Projects will require annual monitoring for compliance for the duration of the
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Affordability Period. a
Project must comply with the 2013 HOME Program Final Rule, and subsequent
statutory or regulatory requirements changes mandated by HUD or Congress.
Funding available through this RFP is contingent on funding availability. The City
reserves the right to cancel any contract if HOME funds become unavailable.
II. ELIGIBLE APPLICANTS
Community Housing Development Organization (CHDO's): Private nonprofit organizations that
have been certified by the City as meeting the HOME Program CHDO eligibility requirements.
Packet Pg. 129
City of San Bernardino - RFP for Affordable Housing Projects
Non-Profit Developers
For- Profit Developers
The City encourages proposals from qualified, minority or women business
enterprises.
II. ELIGIBLE PROJECTS
The City is seeking affordable housing projects that are consistent with its Housing Element of
the General Plan, and the 5-year Consolidated Plan. Projects may be located anywhere in the
City.
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Projects must begin construction within a twelve-month period, and be completed within four(4) o
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years. 0-
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II. PROPOSAL REQUIREMENTS
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A. Proposal Content and Format a
To be considered for funding, an Applicant must be able to meet the proposal
conditions listed in this RFP and clearly provide the following information: a
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1. Proposal Cover Letter E
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Applicant must provide a brief description of the project, its location, o
expected date to begin construction, and amount of HOME funding a
requested. The cover letter must include a statement acknowledging the W
conditions stated in the RFP, making reference to any exceptions =
contained in the response, and be signed by an authorized officer. The
letter must include the contact person responsible for answering any
questions relevant to the proposal. E
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2. Applicants' Qualification Statement w
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A narrative statement describing all entities responsible for the
development and management of the project (including service providers
if applicable) including:
a. A description of the firm, relevant to the project's development,
construction and management.
b. Identify key staff, including brief resumes that include length of
time providing such services, and contact information (including
location, phone and e-mail address).
Packet Pg. 130
City of San Bernardino- RFP for Affordable Housing Projects
C. Describe the past activities/ experience of your firm, and how they
relate to the proposed project.
d. Describe the firm's technical capacity to administer Homebuyer
Assistance, development, and/or rehabilitation programs.
e. Describe the firm's capacity to comply and monitor long-term
E affordability restrictions.
f. Identify any minority/woman business enterprises on the a
i development team and the percentage of interest held in U_
ownership, development or management of the proposed Project.
A minority/woman business enterprise is one with at least a fifty-
one percent(51%) ownership interest by a minority group member
or by a woman.
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g. Non-profit organizations must provide non-profit name, o
corporation date and place, affiliated organizations, IRS tax status, _
annual budget and major sources of funding.
h. CHDO's must submit completed certification application and o
supporting documentation.
i. Provide contact information of three (3) business references. N
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3. Project Description W
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Describe the proposed project including:
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a. Name and type of project(Homeownership assistance, new a
construction, acquisition rehab, etc.). W
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b. Identify the neighborhood you will serve, and explain how the =
project will serve the affordable housing needs of the
neighborhood. E
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C. For Homebuyer Assistance, document the market conditions to a
support the need for this type of program.
d. Property address, Assessor's Parcel Number and Census Tract
Number(if applicable).
e. Describe the population to be served (e.g., family, senior, special
needs) as applicable.
f. Number of proposed units, proposed rents (and basis for which),
and affordability levels by unit. For homebuyer assistance,
provide the number of households that will be assisted.
Packet Pg.131
City of San Bernardino - RFP for Affordable Housing Projects
g. Total project costs, total HOME units, HOME cost per unit, and
after-rehabilitation value.
h. Applicable project amenities, services, and/or any other relevant
project information.
i. Include any market or feasibility studies completed for the project
within the last six(6) months, or indicate if none were completed.
j. Outline how HOME-assisted units will be marketed, and
4. Site Control a
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The Applicant must provide evidence of site control for the project. This
requirement is not applicable to Homebuyer Assistance Program. a
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5. Project Expected Timeline a.
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Applicant must prepare a table that explains key project timeline
milestones achieved to date and/or projected in the future. Such table =
must include the following at a minimum (or indicate if not applicable):
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Milestone Date Key Prerequisite
Milestone/ Contingency g
Submit application for planning N
entitlements/approvals M
Submit loan application to lender U_
Environmental review/Phase 1 E
study o
Complete planning entitlement °-
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process
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Select tax credit investor =
Select contractor
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Prepare detailed cost estimate U
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Submit plans and application(s)for
plan check and building permit
Public body approval and to apply
for bond allocation
Submit application for bond
allocation
Submit application for tax credit
allocation
0 Obtain bond allocation
Packet Pg. 132
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City of San Bernardino - RFP for Affordable Housing Projects
Obtain tax credit allocation
Obtain approval of construction
plans
Obtain construction and permanent
loan commitment
Final construction contract
Partnership Agreement
Pay impact fees and obtain
construction permits a
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Begin construction
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Complete construction CD
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6. Zoning and Entitlements
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In addition to the table in Item 5 above, Applicant must provide a narrative
that clearly describes current zoning of the project and entitlement status
to confirm projected timing for entitlements that are not yet received. 3
Indicate level of environmental review required of the project and -a
completed to date. Indicate when and under what conditions upon receipt .°
of entitlements that buildings plans will be submitted and approved. a
7. Sources and Uses of Funds N
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Applicant must provide a detailed "Sources and Uses table" which clearly LL
states: W
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a. Each Funding Source and proposed or committed amount. c
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b. Detailed Use of Funds broken down between Acquisition, LU
Construction, Rehabilitation and other cost categories as o
applicable. Applicant must include a statement with regard to the =
basis for construction cost estimates and indicate if construction
costs are based on Prevailing Wage requirements. E
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C. Evidence of funding commitments, terms and conditions of y
commitments and expirations. a
8. Operating Proforma (Not applicable to Homeowner Assistance
Program)
The Applicant must submit a cash flow projection including the first fifteen
(15) years of the project that clearly provides all relevant revenue,
operating cost, and financing assumptions.
9. Conflict of Interest
Packet Pg. 133
City of San Bernardino - RFP for Affordable Housing Projects
Applicant must list any business or personal relationship with any
member, employee, officer, agent, consultant, or official of City, or with
any City member's immediate family. Any conflict of interest under 24
CFR 92.356 must be resolved in a manner satisfactory to City prior to the
submission and/or award of any HOME funds under this RFP.
10. Insurance
Submit evidence of ability to insure as stated in Section IV, Paragraph E -
Indemnification and Insurance Requirements.
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B. Instructions for Submitting Proposals
Submit one (1) original and two (2) complete copies of your proposal and an o
electronic version of your application on a CD or flashdrive, preferably in a single a.
PDF file format for 8.5"x11" printout. Failure to submit all the requested
information may result in the proposal being disqualified from the proposal
process. All proposals must be sealed and submitted to: 0
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Brandon Mims, Deputy Director of Housing
City of San Bernardino 0
290 North D Street, Sixth Floor a
San Bernardino, CA 92415-0040
C. Proposal Timeline
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All proposals must be received at the address listed above no later than 5:00 U.
p.m., Pacific Standard Time (PST), on June , 2014. F
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PROPOSALS RECEIVED AFTER 5:00 P.M. ON THAT DATE WILL BE o
DEEMED NON-RESPONSIVE AND WILL NOT BE CONSIDERED. SUCH a
PROPOSALS WILL BE RETURNED UNOPENED. g
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Facsimile or electronically transmitted proposals will not be accepted since they =
do not contain original signatures. Postmarks will not be accepted in lieu of a)
actual receipt. Incomplete proposals may be disqualified as non-responsive. E
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D. Submittal Schedule Q
The solicitation, receipt, and evaluation of submittals and the selection of
Applicants will follow the schedule below.
NOTE: Dates shown are subject to change.
Packet Pg. 134
City of San Bernardino - RFP for Affordable Housing Projects
0 Release of RFP: May , 2014
Proposal Submittal Deadline: Ju ne 2014, (4 p.m. PST)
Review of Proposals: June_, 2014 to June_, 2014
r Presentation to City Council for approval of
recommended project(s) July , 2014
Execution of Agreement July , 2014
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E. Agency Discretion, Non-Liability Waivers and Hold Harmless w
The information in this RFP is intended to provide general information regarding a
the HOME Program. This information is not intended or warranted to be a nI-
complete statement of all of the information the Applicants' might be required to
ultimately provide. N
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This RFP does not commit the City to pay any costs incurred in the preparation =
of a response. The City reserves the right to accept or reject any proposal in part
or in its entirety. The City reserves the right to choose any number of qualified
proposals. In addition, the City reserves the right to issue written notice to all o
AVON participants of any changes in the proposal submission schedule or other Q
schedules, should the City determine, at its sole and absolute discretion, that
such changes are necessary. M
The Applicant may protest not being selected to be funded, provided the protest 0.
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is in writing and delivered to the address listed in Section II (B), within ten (10) X
calendar days after the date on the letter notifying Applicant they were not E
selected to be funded. Grounds for a protest are that the City failed to follow the o
selection procedures and adhere to requirements specified in the RFP or any a
addenda or amendments; there has been a conflict of interest as provided by LU
California Government Code Section 87100, et. seq.; or there has been a 0
violation of state or federal law. Protests will not be accepted on any other =
grounds. All protests will be handled by a panel designated by the City Manager a
or his designee. The City will consider only those specific issues addressed in E
the written protest. A written response will be directed to the protesting applicant
within fourteen (14) calendar days of receipt of the protest, advising of the Y
decision with regard to the protest and the basis for the decision. a
Final Authority
The final approval authority rests solely with the City of San Bernardino City
Council.
Packet Pg. 135
City of San Bernardino - RFP for Affordable Housing Projects
F. Technical Contact
For information/questions regarding this RFP, please contact:
Daysi Hernandez, Consultant
City of San Bernardino
201 North "E" Street, Suite 301
San Bernardino, CA 92401
(909) 663-2271
i dhernandez @sbrda.org
H. Evaluation Criteria
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Proposals can score a maximum of 100 points. Projects will be scored based on 0:
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the factors listed below with Projects scoring the highest being funded first,
subject to availability of funds. o
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1. Project Readiness (Up to twenty (20) points) 0
Points will awarded for projects that are ready for implementation, in
construction, acquisition, and/or rehabilitation activities. Applicant must x°
indicate the actual or expected dates of key milestones related to Project
implementation.
The City encourages applications for projects where the Developer
intends to apply for LIHTC. If Applicant is applying for nine percent (9%) a
LIHTC, please submit an analysis detailing the project's tie-breaker
percentage based on TCAC guidelines, and provide a narrative
describing how the project compares to the developments funded in the a
previous year's first and second rounds. w
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Construction or rehabilitation must be initiated within twelve (12) months
of the date that a funding commitment. Project must be completed within o
four(4) years, in compliance with the 2013 HOME Final Rule. a.
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Sites identified by the Applicant must be in the City of San Bernardino. _
Applicant must provide satisfactory evidence of site control for the project,
evidence of clear title, appraised value, and environmental acceptability of
the identified site. E
Applicant has evidence of private or public lender commitment to the a
project.
Zoning or development approval has been obtained or is supported
and/or readily achievable, if applicable.
Applicant has preliminary design sketches, site and unit layout, and
landscape plan, if applicable.
For homeownership assistance, Applicant is already implementing a
0 successful program.
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City of San Bernardino - RFP for Affordable Housing Projects
i 2. Project Financial Feasibility (Up to thirty (20) points)
Applicants will also be evaluated based on the reasonableness of costs
?' and other elements of the financial proforma.
Points will awarded if funds from other sources are in place (such as, fee
'1 waivers, payment of infrastructure costs, loans, grants, Low Income
Housing Tax Credits, etc.). An analysis of the project will be performed to
determine the feasibility of the project, competitiveness to receive LIHTC
i (if applicable) and the likelihood of the project being completed within
HOME guidelines regarding timeliness.
The Applicant must submit a cash flow projection including the first fifteen
(15) years of the project. The Project must have the financial capacity to
debt service the City HOME funds requested. The development does not
require the forgiveness, or is requesting deferral of payment on any City o
HOME funds. a
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3. Program Target (Up to twenty (20) points) N
Priority will be given to proposals that assist households that have an
annual income of 50% or less of AMI. v
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The City will give priority to projects with a proposed subsidy of less than o
the allowable maximum per unit subsidy.
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4. Development and Management Capacity(Up to twenty (20) points) M
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Points will be awarded to Applicants that have a track record of a
experience and financial capacity to complete the project. Applicant must U.
provide evidence of successful experience with implementing two (2) or
more government-funded projects/programs similar to proposed project.
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5. Project Objectives — Design and Community Benefit (Up to thirty (20) a
points) g
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Project must provide permanent housing. Project design should =
complement and enhance the surrounding community and provide
amenities that serve the needs of the residents. Proposal must explain E
the project concept and design, along with submittal of the conceptual
architectural design. Q
For rental properties, points will be awarded based on on-site tenant
amenities for low-income residents and surrounding communities that
would not normally be available (such as, child daycare facilities, job
training, educational facilities, computer training, and after school tutoring
etc.). In addition to listing these services, the proposal must provide
detailed information on what additional funding sources will be utilized to
pay for these services; as such services are not an eligible use of HOME
funds.
Packet`Pg. 137
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City of San Bernardino- RFP for Affordable Housing Projects
The City will give preference to projects that serve special needs
population; i.e., large families (five [5] or more), the elderly, individuals
with disabilities, etc.).
The proposal includes a strategy on how the developer will incorporate
modern, green building and energy efficiency building ideas; e.g., energy
efficient appliances, energy efficient heating and cooling, weatherization,
etc. (see www.energystar.gov) thereby providing increased sustainability
and attractiveness of housing and neighborhoods. Applicant must
provide details on how this will be accomplished.
III. PROPOSAL CONDITIONS
a.
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A. Contingencies
Award of funds under this RFP is contingent on funding availability. This RFP o
does not commit City to enter into a HOME Loan Agreement. The City reserves a`
the right to accept or reject any or all proposals if City determines it is in the best
interest of City to do so. The City will notify all Applicants in writing if City rejects
all proposals. x0
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B. Modifications
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City reserves the right, at its sole discretion, to modify this RFP, including the �°�
process by which projects are evaluated and funds are awarded. Q
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C. Incurred Costs M
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City will not pay any costs incurred in the preparation of a proposal in response U-
to this RFP and Applicant agrees that all costs incurred in developing this F
proposal are the Applicant's responsibility.
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D. Right of Rejection a
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The City reserves the unqualified right to reject, at its sole discretion, any or all =
proposals, or to reject any portion thereof for any reason whatsoever. The City
may, at its sole discretion, cancel this solicitation or any part of this solicitation at a
any time.
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E. Acceptance of Terms and Conditions Q
Submission of a proposal must constitute acknowledgment and acceptance of all
terms and conditions contained in this RFP, unless otherwise specified in the
proposal. Any exceptions to the terms and conditions contained in this RFP
would have to be accepted by and agreed to in writing by City. Applicant must
indicate in writing and submit with its response, any exceptions to the terms and
conditions of the RFP.
F. Failure to Adhere to Specifications
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City of San Bernardino - RFP for Affordable Housing Projects
Proposals must be completed according to the instructions in this RFP. Failure
to adhere to the requirements and provide complete responses may be cause for
rejection of the proposal as non-responsive..
G. Corrections and Resubmission
The City will not accept submissions or changes to the proposals after the RFP
deadline. It is up to Applicant to make certain the proposal is received in a timely
manner.
IV. STANDARD TERMS AND CONDITIONS
a.
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These are standard terms and conditions for the HOME Program. The City reserves the 0:
right to include additional terms and conditions in any HOME Loan Agreement presented
to Applicant which will be recommended for funding approval. o
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A. Contract Compliance
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Applicant agrees to comply with the provisions of Executive Orders 11246,
11375, 11625, 12138, 12432, 12250, Title VII of the Civil Rights of 1964, the d
California Fair Employment and Housing Act (FEHA), and any other applicable
federal, state, and City laws, regulations and policies relating to equal
employment and contracting opportunities, including laws and regulations a
hereafter enacted.
B. Assurance of Compliance with Civil Rights Laws y
a.
Applicant certifies and agrees that all persons employed by such firm, its U.
affiliates, subsidiaries or holding companies are and will be treated equally by the E
firm without regard to, or because of, race, religion, ancestry, national origin, or L
sex, and in compliance with all anti-discrimination laws of the United States of o
America and the State of California. a
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Applicant certifies and agrees that it will deal with its subcontractors, bidders, or =
Applicant without regard to, or because of, race, religion, ancestry, national
origin, or sex.
The parties agree that in the event Applicant violates the anti-discrimination
provisions of the HOME Loan Agreement, City must, at its option, be entitled to a a
sum to be determined prior to execution of the HOME Loan Agreement pursuant
to Civil Code Section 1671 as damages in lieu of canceling, terminating, or
suspending the HOME Loan Agreement.
C. Compliance with Laws
Applicant agrees to comply with all applicable federal, state and local laws, rules,
regulations or ordinances, and all provisions required thereby to be included in
the HOME Loan Agreement. Applicant also agrees to maintain any necessary
licenses, certifications, or permits. Failure to do so is grounds for termination of
the HOME Loan Agreement.
Packet Pg. 139
City of San Bernardino - RFP for Affordable Housing Projects
Applicant agrees to indemnify and hold City harmless from any loss, damage, or
liability resulting from a violation on the part of Applicant of such laws, rules,
regulations, or ordinances.
D. Insurance Specifications
Applicant agrees to provide insurance set forth in accordance with the
requirements herein. If the Applicant uses existing coverage to comply with
these requirements and that coverage does not meet the specified requirements,
the Applicant agrees to amend, supplement, or endorse the existing coverage to
do so. The type(s) of insurance required is determined by the scope of the a.
U.
Agreement services.
Without in any way affecting the indemnity herein provided and in addition o
thereto, the Applicant must secure and maintain throughout the Agreement term `a
the following types of insurance with limits as shown:
N
Workers' Compensation/Employers Liability - A program of Workers'
Compensation Insurance or a state-approved, self-insurance program in an
amount and form to meet all applicable requirements of the Labor Code of the Z
State of California, including Employer's Liability with two hundred fifty thousand
dollars ($250,000) limit covering all persons, including volunteers, providing
services on behalf of the Applicant and all risks to such persons under this a
contract.
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If Applicant has no employees, it may certify or warrant to the City that it does not a
currently have any employees or individuals who are defined as "employees" LL
under the Labor Code and the requirement for Workers' Compensation coverage E
will be waived by the City's Director of Risk Management.
With respect to Applicants that are non-profit corporations organized under o
California or federal law, volunteers for such entities are required to be covered a
by Workers' Compensation insurance. g
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Commercial/General Liability Insurance - The Applicant must carry General =
Liability Insurance covering all operations performed by or on behalf of the a
Applicant providing coverage for bodily injury and property damage with a E
combined single limit of not less than one million dollars ($1,000,000), per
occurrence. The policy coverage must include: a
a. Premises, operations and mobile equipment.
b. Products and completed operations.
C. Broad form property damage (including completed operations).
d. Explosion, collapse, and underground hazards.
0 e. Personal injury.
Packet Pg. 140
City of San Bernardino- RFP for Affordable Housing Projects
f. Contractual liability.
g. Two million dollars ($2,000,000) general aggregate limit.
Automobile Liability Insurance — Primary insurance coverage must be written on
ISO Business Auto coverage form for all owned, hired, and non-owned
automobiles or symbol 1 (any auto). The policy must have a combined single
limit of not less than one million dollars ($1,000,000)for bodily injury and property
damage, per occurrence.
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If the Applicant is transporting one or more non-employee passengers in
performance of Agreement services, the automobile liability policy must have a
combined single limit of two million dollars ($2,000,000) for bodily injury and LL
Iproperty damage per occurrence.
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If the Applicant owns no autos, a non-owned auto endorsement to the General o
Liability policy described above is acceptable.
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Umbrella Liability Insurance -An umbrella (over primary) or excess policy may be
used to comply with limits or other primary coverage requirements. When used, _
the umbrella policy must apply to bodily injury/property damage, personal
injury/advertising injury and must include a "dropdown" provision providing
primary coverage for any liability not covered by the primary policy. The o
coverage must also apply to automobile liability.
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Construction Contracts - Projects over one million ($1,000,000) and less than
three million ($3,000,000) require limits of not less than three million ($3,000,000) M
in General Liability and Auto Liability coverage. a.
Construction contracts for Projects over three million ($3,000,000) and less than U_
five million ($5,000,000) require limits of not less than five million ($5,000,000) in M
General Liability and Auto Liability coverage.
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Construction contracts for Projects over five million ($5,000,000) require limits of a
not less than ten million ($10,000,000) in General Liability and Auto Liability. g
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Continuing Products/Completed Operations Liability Insurance with a limit of not =
less than five million ($5,000,000)for each occurrence for at least three (3) years
following substantial completion of the work on Projects over one million E
($1,000,000).
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Subcontractor Insurance Requirements - The Applicant agrees to require all
parties or subcontractors, including architects or others it hires or contracts with
related to the performance of this Agreement to provide insurance covering the
contracted operations with the basic requirements for all contracts and the
insurance specifications for all contracts, (including waiver of subrogation rights)
and naming the City as an additional insured. The Applicant agrees to monitor
and review all such coverage and assumes all responsibility ensuring that such
coverage is provided as required here.
Packet'Pg. 141
City of San Bernardino - RFP for Affordable Housing Projects
Course of Construction/Installation (Builder's Risk) property insurance providing
all risk, including theft coverage for all property and materials to be used on the
Project. The insurance policy must not have any coinsurance penalty.
Professional Liability— Professional Liability Insurance with limits of not less than
one million dollars ($1,000,000) per claim or occurrence and two million dollars
($2,000,000) aggregate limits.
Errors and Omissions Liability Insurance - Errors and Omissions Liability
Insurance with limits of not less than one million dollars ($1,000,000) and two
million dollars ($2,000,000) aggregate limits.
E. Improper Consideration U-
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Applicant must not offer (either directly or through an intermediary) any improper
consideration such as, but not limited to, cash, discounts, service, the provision c
of travel or entertainment, or any items of value to any officer, employee, group a.
of employees or agent of City in an attempt to secure favorable treatment or =
consideration regarding the award of a HOME Loan Agreement.
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Applicant must immediately report any attempt by a City officer, employee, group
of employees or agent to solicit (either directly or through an intermediary)
improper consideration from Applicant. The report must be made to the o
supervisor or manager charged with supervision of the employee or to the City
Administrative Office. Q
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The City, by written notice, may immediately terminate if it determines that any M
improper consideration as described in the preceding paragraphs was offered to o.
any officer, employee, group of employees or agent of City with respect to the U-
proposal and award process or any solicitation for consideration was not E
reported. This prohibition must also apply to any amendment, extension or
evaluation process once a HOME Loan Agreement has been awarded. o
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In the event of a termination under this provision, City is entitled to pursue any g
available legal remedies. _
F. Employment of Former City Officials
Applicant agrees to provide or has already provided information on former City of
San Bernardino administrative officials (as defined below) who are employed by Q
or represent Applicant.
G. Inaccuracies or Misrepresentations
If, in the course of the RFP process or in the administration of a resulting HOME
Loan Agreement, City determines that Applicant has made a material
misstatement or misrepresentation or that materially inaccurate information has
been provided to City, Applicant may be terminated from the RFP process or in
the event a HOME Loan Agreement has been awarded, the HOME Loan
Agreement may be immediately terminated.
Packet Pg. 142 ,
City of San Bernardino- RFP for Affordable Housing Projects
In the event of a termination under this provision, City is entitled to pursue any
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available legal remedies.
V. SPECIAL TERMS AND CONDITIONS
The City, as the HOME Participating Jurisdiction (PJ), is responsible for ensuring the HOME
funds are used in accordance with all Program Requirements. The use of Applicants,
subrecipients or contractors does not relieve the PJ of this responsibility. In addition, an
Applicant, subrecipient or contractor must also enter into a written Agreement before funds can
be disbursed. The Agreement remains in effect during the period of affordability under 92.252
or 92.254 as applicable, or if the entity is a subrecipient, during any period that the entity has
control over HOME funds. Prior to disbursement of HOME funds from City to any entity, the LL
following requirements (Conditions for HOME-funded Projects) must be met by the entity (or its W
designee) to the satisfaction of City as evidenced by an executed Authorization to Initiate
Project Activity. Entity may, at its own discretion, expend its own funds to satisfy these o
requirements. Reimbursement of cost incurred by the entity, or its designee, from HOME funds a`
to satisfy any of these requirements (with the exception of environmental review requirements =
found at 92.352) must receive prior approval by City. Any and all Special Terms and Conditions
applicable to a Project assisted with HOME funds will be made a part of the HOME Agreement =
entered into between City and the entity. a�
Conditions for HOME-funded Projects o
1. Applicant, or its designee, must obtain and submit to City, an objective feasibility a
study/market analysis to determine need and demand for the proposed Project.
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2. Applicant, or its designee, must submit written documentation defining the development a.
team and describing roles and responsibilities (ownership structure/site control) of each LL
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team member. E
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3. The City must prepare an Environmental Review upon receipt of necessary information o
from the Applicant regarding the proposed Project and funding is subject to City a.
obtaining an environmental release of funds. 2
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4. Applicant, or its designee, must assume responsibility for any relocation and/or =
displacement activities that occur as a result of the proposed Project. This responsibility a
must conform to the requirements found at 92.353 of HOME Regulations. E
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5. Every Agreement for the new construction or rehabilitation of housing that includes a
twelve (12) or more units assisted with HOME funds must contain a provision of the
payment of prevailing wages to all laborers and mechanics employed in the
development of the housing. Applicant or its designee must assume responsibility for
enforcing requirements regarding labor(92.354 of HOME Regulations).
6. Applicant, or its designee, must obtain and submit to City a before-rehab and after-rehab
appraisal to establish appropriate project values.
7. Applicant, or its designee, must prepare and submit to City a marketing and
management plan consistent with market analysis findings.
Packet Pg. 143
City of San Bernardino- RFP for Affordable Housing Projects
8. Applicant, or its designee, must submit written documentation identifying and verifying
sources of funding (construction and permanent)for the proposed Project.
9. Applicant, or its designee, must prepare legal documents which include all applicable
HOME Requirements, to be executed by Applicant, or its designee, and all Project
contractors/developers involved with the HOME-funded Project.
At a minimum, written Agreements must contain the following:
a. Use of HOME Funds - Include a description of the use, the tasks to be
performed, timeframes and a budget.
b. Affordability - HOME affordability requirements must be met. Repayment n
required if they are not met. W
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C. Repayments - Agreements must state who will receive repayments, interest and 2
other returns on investment. °
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d. Uniform Administrative Requirements - Agreement must state that the entity will c
comply with all applicable federal requirements (A-87, A-85, etc.).
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e. Project Requirements - Compliance with all HOME Program Project 4)
requirements.
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f. Housing Quality Standards - (HQS) Rental housing assisted with HOME funds to
be maintained in compliance with HQS and local code requirements for the Q
duration of the Agreement (that is, for a period from five (5) to twenty (20) years, r
or longer if FHA insurance is used).
g. Other Federal Requirements -All "other federal requirements" must be met. U.
h. Affirmative Marketing - Entity's affirmative marketing responsibilities to be E
specified in the Agreement. o
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i. Religious Organizations - HOME Program Regulations must be complied with for w
use of HOME funds by religious organizations. 2
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j. Disbursement Requests - Disbursements from the HUD Intergrated
Disbursement & Information System (IDIS) will not be made until needed for
payment.
k. Reversion of Assets - If the Agreement is with a subrecipient, it specifies the Q
HOME funds must be transferred to the PJ after term of the Agreement expires.
I. Records and Reports - Specifies the records that must be maintained and the
reports that must be submitted to the PJ.
M. Enforcement of Agreement - Provides for a means of enforcement by the PJ or
other entity. Examples are deed restrictions, property liens, and contractual
obligations.
n. Duration of Agreement - Specifies that the Agreement is in effect for the duration
of period of affordability.
Packet.Pg. 144
City of San Bernardino - RFP for Affordable Housing Projects
o. Non-discrimination —Applicant must agree not to discriminate against any person
on the basis of any protected classification, including but not limited to race,
religion, color, national origin, ancestry, physical or mental disability, medical
condition, familial status, sex, age, or any other arbitrary basis.
P. Labor Standards / Prevailing Wages — Federal Davis-Bacon Act provisions apply
if federal HOME funds are used for any housing project with twelve (12) or more
HOME-assisted units.
q. Non-Debarment — Contractors and subcontractors who work on HOME assisted
projects must not be suspended or debarred.
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r. Lead-based Paint — Applicants are required to comply with Lead Safe Housing
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Rule and ensure lead-based paint hazard evaluation and control measures are
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correctly carried out. o
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S. Section 3 Requirements — Section 3 of the HUD Act of 1968 applies to all
recipients of HUD funds (including their contractors and sub-contractors). 3
Applicants must certify that they will comply with Section 3 requirements. _
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City of San Bernardino - RFP for Affordable Housing Projects
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APPENDIX I
SAMPLE BREAK DOWN OF SOURCES AND USES OF FUNDS
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I. SOURCES AMOUNT
A. First Mortgage Loan $
Term (Years)
Interest Rate
Annual Debt Service
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Lender:
Address:
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Phone: c
Contact: °
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B. Second Mortgage Loan $
Term (Years) o
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Interest Rate a
Annual Debt Service N
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Lender:
C.
Address: W
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Phone: °
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C. Specify Sources of Grants =
1' $ m
2. $ Ec
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D. Owner Contribution Q
1. Cash $
2. Value of Assets $
E. HOME Request $
F. OTHER (Explain) $
Page 1 of 3
Packet Pg. 146
City of San Bernardino - RFP for Affordable Housing Projects
TOTAL $
II. USES
A. Land $
B. Land Improvements $
j C. Buildings $
1. Purchase Price $
2. Demolition $
3. Rehabilitation $
Subtotal $ U.
D. Fees
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1. Builder's Overhead and Profit $ o
2. Bond Premium $ a,
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3. Architect's Fee $ c
Subtotal $ _
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E. Charges and Financing During Construction
1. Interest During Construction $
2. Taxes $
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3. Insurance $ M
4. Title/Recording $ a
Subtotal $ Ix
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F. Legal, Organizational and Audit L
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1. Legal $ a
2. Organization $ o
3. Cost Certification and Audit $ _
Subtotal $
G. Other Fees and Costs
1. Property Appraisal $
2. Consultant Fees $
3. Relocation Expenses $
4. Other
a. $
b. $
Subtotal $
Page 2of3
Packet iPg. 147
City of San Bernardino - RFP for Affordable Housing Projects
H. Project Reserves
1. Operating Reserves $
2. Rent-Up Reserves $
I
3. Taxes/Insurance in Escrow(1st Year) $
Subtotal $
I. Developer's Fee (includes profit and overhead) $
J. Syndication Fees/Expenses
1. Organizational $ U.
2. Bridge Loan Fees and Expenses $ 0
3. Legal Fees $ o
4. Accountant's Fees $ a
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5. Other(Provide breakdown) $
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Subtotal $ _
K. OTHER (Explain) $
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TOTAL $ a
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Page 3 of 3
Packet Pg. 148
City of San Bernardino - RFP for Affordable Housing Projects
APPENDIX II
SAMPLE OPERATING PRO FORMA INFORMATION TO BE INCLUDED
Specify assumed annual adjustments by percentage. Attach detailed explanation of all
projections along with fifteen (15) year cash flow projection.
% Annual
I. Annual Income Adjustment
Gross Rental Income $
Minus Vacancy(7%) $ a
Other Income $
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TOTAL INCOME $
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II. Annual Expenses S
Administrative $ o
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Operating $
Maintenance $
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Property Taxes $ Q
Insurance $ M
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Replacement Reserve (_%) $
Miscellaneous $
TOTALEXPENSES $ E
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III. Annual Net Operating Income °'
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A. Total Income [item (1) above] $
B. Total Expenses [item (II) above] $
C. Net Operating Income $ E
[Subtract Total Expenses from Total Income] U
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IV. Annual Debt Service Coverage
A. Net Operating Income$
B. Annual Debt Service $
C. Debt Service Coverage $
[Divide(A)by(B)]
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Page 1 of 2
Packet Pg. 149
I
City of San Bernardino- RFP for Affordable Housing Projects
Attach detailed explanation of all expense projections and calculations of annual debt service.
NOTE: The information requested by this form will be utilized in determining the "economic
viability" of the Project.
1. ESTIMATE OF PROJECT INCOME
Living Unit Rent
No. of Area Composition Total Monthly
i Type Living Unit yp 9 P
er Month
S . ft. of Units Unit Rent ($)
Units ( q )
per unit)($)
Eff. a
1 BR U-
2 BR
3 BR d
Other
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2. a. Total Estimated Monthly Rentals for all Living Units: $ _
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b. Total Estimated Annual Rentals for all Living Units: $ _
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3. Total Number of Parking Spaces:
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Attended Self Park a
4. Parking and Other Income (Not Included in Rent): N
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a. Open Spaces @ $ per month = $ a.
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b. Covered Spaces @ $ per month = $ E
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C. Laundry @ $ per month = $ °
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d. Other* @ $ per month = $ 2
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e. TOTAL PARKING & OTHER $
{*Attach detailed explanation of'other" income as Exhibit A}
5. Commercial Space (Describe):
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a. Area-Ground Level sq. ft. @ $ per sq. ft./month = $
b. Other Levels sq. ft. @ $ per sq. ft./month = $
C. Total Commercial $
6. TOTAL ESTIMATED MONTHLY GROSS PROJECT INCOME
AT 100% OCCUPANCY: [Add 2(a) + 4(e) + 5(c)] $
7. ANNUAL GROSS PROJECT INCOME WITH 7% VACANCY $
Page 2 of 2
Packet Pg. 150
5.E.c
City of San Bernardino - RFP for Affordable Housing Projects
AUTHORIZED OFFICIAL CERTIFICATION FORM
The undersigned certifies, to the best of his or her knowledge and belief, that:
A. No federally appropriated funds have been paid, or will be paid, by or on behalf of the
undersigned, to any person for influencing or attempting to influence an officer or
employee of any agency, a member of Congress, an officer or employee of Congress, or
an employee of a member of Congress in connection with the awarding of any federal
contract, the making of any federal grant, the making of any federal loan, the entering
into of any cooperative agreement, and/or the extension, continuation, renewal,
amendment, or modification of any federal contract, grant, loan, or cooperative
agreement.
41
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B. If any funds other than federally appropriated funds have been paid or will be paid to any o
persons for influencing or attempting to influence an officer or employee of any agency, a
a member of Congress, an officer or employee of Congress, or an employee of a
member of Congress in connection with this federal contract, grant, loan, or cooperative
agreement, the undersigned must complete and submit Standard Form-LLL, "Disclosure =
Form to Report Lobbying," in accordance with its instructions. c,
C. The language in Paragraphs A and B above must be included in the award documents o
for all sub awards at all tiers (including subcontracts, subgrants, and contracts under
grants, loans, and cooperative agreements) and all subrecipients must certify and Q
disclose accordingly.
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D. The information and statements contained in this Application and any of its Appendixes a.
are true and correct. �
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E. Any HOME funds awarded must be used in accordance with all laws and regulations 2-
governing the HOME Program and other applicable laws. o
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F. Neither the Applicant nor any of its principals is presently debarred, suspended, g
proposed for debarment or suspension, declared ineligible or excluded from participation =
in the HOME Program by any federal department or agency.
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G. No member, employee, officer, agent, consultant or official of the Applicant, nor any E
member of its immediate family, during his tenure or for one year thereafter, must have U
any interest, direct or indirect, in any award of HOME funds made pursuant to this a
Application.
H. Any changes in the facts and information supplied in this Application, or in any of its
Appendixes, may result in denial or withdrawal of any HOME funding awarded.
K. The Applicant will not invest any more HOME funds, in combination with other federal
assistance, than is necessary to provide affordable housing.
L. The Applicant possesses the legal authority to carry out the HOME Program in
accordance with the HOME Regulations.
Page 1 of 2
Packet Pg.' 151
City of San Bernardino - RFP for Affordable Housing Projects
M. Where applicable, the Applicant will comply with the HOME Regulations relating to
acquisition and/or rehabilitation, relocation, and to maintaining a drug free workplace.
Executed this day of
By:
Print Full Name of Applicant
By:
Applicant's Signature LL
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Applicant's Official Title a
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Packet Pg. 152
City of San Bernardino - RFP for Affordable Housing Projects
roll,\
Proposal Checklist
❑ Completed Proposal —One (1) original, two (2) copies, and one (1)digital copy
❑ Proposal Cover Letter
❑ Applicants' Qualification Statement
❑ Project Description (including photographs of the proposed site)
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a.
❑ Site Control Description/Evidence and Valuation
❑ Project Expected Timeline
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❑ Zoning and Entitlements a.
❑ Sources and Use of Funds
❑ Operating Proformas
❑ Former City Officials
❑ Conflict of Interest
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❑ Evidence of Insurance C
❑ Exceptions
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❑ Authorized Official Certification Form
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Packet Pg. 153
City of San Bernardino
HOME Program Eligible and Prohibited Activities
§92.205 Eligible activities: General.
(a) Eligible activities. (1) HOME funds may be used by a participating jurisdiction to provide
incentives to develop and support affordable rental housing and homeownership affordability LL
through the acquisition (including assistance to homebuyers), new construction,
reconstruction, or rehabilitation of non-luxury housing with suitable amenities, including real
property acquisition, site improvements, conversion, demolition, and other expenses, including a
financing costs, relocation expenses of any displaced persons, families, businesses, or
organizations; to provide tenant-based rental assistance, including security deposits; to provide
payment of reasonable administrative and planning costs; and to provide for the payment of 0
operating expenses of community housing development organizations. The housing must be d
permanent or transitional housing. The specific eligible costs for these activities are set forth in
§§92.206 through 92.209. The activities and costs are eligible only if the housing meets the 0
property standards in §92.251 upon project completion. a
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(2) Acquisition of vacant land or demolition must be undertaken only with respect to a
particular housing project intended to provide affordable housing within the time frames
established in paragraph (2) of the definition of"commitment" in §92.2. a;
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(3) Conversion of an existing structure to affordable housing is rehabilitation, unless the
conversion entails adding one or more units beyond the existing walls, in which case, the
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project is new construction for purposes of this part. d
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(4) Manufactured housing. HOME funds may be used to purchase and/or rehabilitate a o
manufactured housing unit, or purchase the land upon which a manufactured housing unit is a
located. Except for existing, owner-occupied manufactured housing that is rehabilitated with W
HOME funds, the manufactured housing unit must, at the time of project completion, be =
connected to permanent utility hook-ups and be located on land that is owned by the
manufactured housing unit owner or land for which the manufactured housing owner has a 4)
lease for a period at least equal to the applicable period of affordability.
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(b) Forms of assistance. (1) A participating jurisdiction may invest HOME funds as equity a
investments, interest-bearing loans or advances, non-interest-bearing loans or advances,
interest subsidies consistent with the purposes of this part, deferred payment loans, grants, or
other forms of assistance that HUD determines to be consistent with the purposes of this part
and specifically approves in writing. Each participating jurisdiction has the right to establish the
terms of assistance, subject to the requirements of this part.
City of San Bernardino, HOME Program Eligibility Criteria
1
Packet Pg. 154
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(2) A participating jurisdiction may invest HOME funds to guarantee loans made by lenders and,
if required, the participating jurisdiction may establish a loan guarantee account with HOME
funds.The HOME funds may be used to guarantee the timely payment of principal and interest
or payment of the outstanding principal and interest upon foreclosure of the loan. The amount
of the loan guarantee account must be based on a reasonable estimate of the default rate on
o circumstances may the guaranteed loans, but under n Y the amount on deposit exceed 20
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percent of the total outstanding principal amount guaranteed; except that the account may
include a reasonable minimum balance. While loan funds guaranteed with HOME funds are
subject to all HOME requirements,funds which are used to repay the guaranteed loans are not. a
(c) Minimum amount of assistance. The minimum amount of HOME funds that must be
invested in a project involving rental housing or homeownership is $1,000 times the number of o
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HOME-assisted units in the project. a.
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(d) Multi-unit projects. HOME funds may be used to assist one or more housing units in a multi-
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unit project.
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(1) Only the actual HOME eligible development costs of the assisted units may be charged to 0
the HOME program. If the assisted and non-assisted units are not comparable, the actual costs a
may be determined based on a method of cost allocation. If the assisted and non- assisted units
are comparable in terms of size, features, and number of bedrooms, the actual cost of the N
HOME- assisted units can be determined by prorating the total HOME eligible development
costs of the project so that the proportion of the total development costs charged to the HOME
program does not exceed the proportion of the HOME-assisted units in the project. L
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(2) After project completion, the number of units designated as HOME- assisted may be
reduced only in accordance with §92.210, except that in a project consisting of all HOME- .P
assisted units, one unit may be subsequently converted to an on-site manager's unit if the
participating jurisdiction determines that the conversion will contribute to the stability or
effectiveness of the housing and that, notwithstanding the loss of one HOME-assisted unit, the o
costs charged to the HOME program do not exceed the actual costs of the HOME- assisted units w
and do not exceed the subsidy limit in §92.250(b). 2
0
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(e) Terminated projects. A HOME assisted project that is terminated before completion, either
voluntarily or involuntarily, constitutes an ineligible activity, and the participating jurisdiction E
must repay any HOME funds invested in the project to the participating jurisdiction's HOME
r
Investment Trust Fund in accordance with §92.503(b) (except for project- specific assistance to Q
community housing development organizations as provided in §92.301(a)(3) and (b)(3)).
(1) A project that does not meet the requirements for affordable housing must be terminated
and the participating jurisdiction must repay all HOME funds invested in the project to the
participating jurisdiction's HOME Investment Trust Fund in accordance with §92.503(b).
City of San Bernardino, HOME Program Eligibility Criteria
2
Packet Pg. 155
(2) If a participating jurisdiction does not complete a project within 4 years of the date of
commitment of funds, the project is considered to be terminated and the participating
jurisdiction must repay all funds invested in the project to the participating jurisdiction's HOME
Investment Trust Fund in accordance with §92.503(b). The participating jurisdiction may
request a one-year extension of this deadline in writing, by submitting information about the
status of the project, steps being taken to overcome any obstacles to completion, proof of
adequate funding to complete the project, and a schedule with milestones for completion of
the project for HUD's review and approval.
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[61 FR 48750, Sept. 16, 1996, as amended at 62 FR 28928, May 28, 1997; 78 FR 44667, July 24, a
2013]
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§92.206 Eligible project costs.
HOME funds may be used to pay the following eligible costs:
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(a) Development hard costs. The actual cost of constructing or rehabilitating housing. These
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costs include the following: 0
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(1) For new construction projects, costs to meet the new construction standards in §92.251; M
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(2) For rehabilitation, costs to meet the property standards for rehabilitation projects in
§92.251;
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(3) For both new construction and rehabilitation projects, costs:
72
(i)To demolish existing structures;
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(ii) To make utility connections including off-site connections from the property line to the
adjacent street; and Q
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(iii) To make improvements to the project site that are in keeping with improvements of 0
(...) p p J p� g p =
surrounding, standard projects. Site improvements may include on-site roads and sewer and
water lines necessary to the development of the project. The project site is the property, W
owned by the project owner, upon which the project is located. U
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(4) For both new construction and rehabilitation of multifamily rental housing projects, costs to
construct or rehabilitate laundry and community facilities that are located within the same
building as the housing and which are for the use of the project residents and their guests.
(5) Costs to make utility connections or to make improvements to the project site, in
accordance with the provisions of §92.206(a)(3) (ii) and (iii) are also eligible in connection with
acquisition of standard housing.
City of San Bernardino, HOME Program Eligibility Criteria
3
Packet Pg. 156
(b) Refinancing costs. The cost to refinance existing debt secured by a housing project that is
being rehabilitated with HOME funds.These costs include the following:
(1) For single-family (one- to four- family) owner-occupied housing, when loaning HOME funds
to rehabilitate the housing, if the refinancing is necessary to reduce the overall housing costs to
the borrower and make the housing more affordable and if the rehabilitation cost is greater
than the amount of debt that is refinanced.
(2) For single family or multifamily projects, when loaning HOME funds to rehabilitate the units a
if refinancing is necessary to permit or continue affordability under §92.252. The participating
jurisdiction must establish refinancing guidelines and state them in its consolidated plan
described in 24 CFR part 91. Regardless of the amount of HOME funds invested, the minimum o
affordability period shall be 15 years. The guidelines shall describe the conditions under which a
the participating jurisdictions will refinance existing debt. At minimum, the guidelines must: _
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7
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(i) Demonstrate that rehabilitation is the primary eligible activity and ensure that this =
requirement is met by establishing a minimum level of rehabilitation per unit or a required ratio
between rehabilitation and refinancing; o
(ii) Require a review of management practices to demonstrate that disinvestment in the a
property has not occurred, that the long term needs of the project can be met and that the N
feasibility of serving the targeted population over an extended affordability period can be
demonstrated; 1°
(iii) State whether the new investment is being made to maintain current affordable units, w
create additional affordable units, or both; s
2
(iv) Specify the required period of affordability, whether it is the minimum 15 years or longer; a)
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(v) Specify whether the investment of HOME funds may be jurisdiction-wide or limited to a o
specific geographic area, such as a neighborhood identified in a neighborhood revitalization a
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strategy under 24 CFR 91.215(e)(2) or a Federally designated Empowerment Zone or Enterprise o
Community; and =
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(vi) State that HOME funds cannot be used to refinance single family or multifamily housing E
loans made or insured by any Federal program, including CDBG. s
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(c) Acquisition costs. Costs of acquiring improved or unimproved real property, including
acquisition by homebuyers.
(d) Related soft costs. Other reasonable and necessary costs incurred by the owner or
participating jurisdiction and associated with the financing, or development (or both) of new
construction, rehabilitation or acquisition of housing assisted with HOME funds. These costs
include, but are not limited to:
City of San Bernardino, HOME Program Eligibility Criteria
4
Packet Pg. 157
(1) Architectural, engineering, or related professional services required to prepare plans,
drawings, specifications, or work write-ups. The costs may be paid if they were incurred not
more than 24 months before the date that HOME funds are committed to the project and the
participating jurisdiction expressly permits HOME funds to be used to pay the costs in the
written agreement committing the funds.
(2) Costs to process and settle the financing for a project, such as private lender origination
fees, credit reports, fees for title evidence, fees for recordation and filing of legal documents,
building permits, attorneys fees, private appraisal fees and fees for an independent cost LL
estimate, builders or developers fees. W_
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(3) Costs of a project audit, including certification of costs performed by a certified public o
accountant, that the participating jurisdiction may require with respect to the development of a`
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the project. _
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(4) Costs to provide information services such as affirmative marketing and fair housing x
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information to prospective homeowners and tenants as required by §92.351.
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(5) For new construction or rehabilitation, the cost of funding an initial operating deficit Q
reserve, which is a reserve to meet any shortfall in project income during the period of project
rent-up (not to exceed 18 months) and which may only be used to pay project operating N
expenses, scheduled payments to a replacement reserve, and debt service. Any HOME funds
placed in an operating deficit reserve that remain unexpended after the period of project rent-
up may be retained for project reserves if permitted by the participating jurisdiction.
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(6) Staff and overhead costs of the participating jurisdiction directly related to carrying out the
project, such as work specifications preparation, loan processing inspections, and other services a�
related to assisting potential owners, tenants, and homebuyers, e.g., housing counseling, may
be charged to project costs only if the project is funded and the individual becomes the owner M
or tenant of the HOME-assisted project. For multi-unit projects, such costs must be allocated o
among HOME- assisted units in a reasonable manner and documented. Although these costs C
may be charged as project costs, these costs (except housing counseling) cannot be charged to M
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or paid by low-income families. _
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(7) For both new construction and rehabilitation, costs for the payment of impact fees that are E
charged for all projects within a jurisdiction.
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(8) Costs of environmental review and release of funds in accordance with 24 CFR part 58 which
are directly related to the project.
(e) Community housing development organization costs. Eligible costs of project-specific
assistance are set forth in §92.301.
City of San Bernardino, HOME Program Eligibility Criteria
5
Packet Pg. 158
(f) Relocation costs. The cost of relocation payments and other relocation assistance to persons
displaced by the project are eligible costs.
(1) Relocation payments include replacement housing payments, payments for moving
expenses, and payments for reasonable out-of-pocket costs incurred in the temporary
relocation of persons.
(2) Other relocation assistance means staff and overhead costs directly related to providing
advisory and other relocation services to persons displaced by the project, including timely a
written notices to occupants, referrals to comparable and suitable replacement property,
property inspections, counseling, and other assistance necessary to minimize hardship.
0
(g) Costs relating to payment of loans. If the HOME funds are not used to directly pay a cost
specified in this section, but are used to pay off a construction loan, bridge financing loan, or
guaranteed loan, the payment of principal and interest for such loan is an eligible cost only if: o
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(1)The loan was used for eligible costs specified in this section, and
(2) The HOME assistance is part of the original financing for the project and the project meets
the requirements of this part. Q
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[61 FR 48750, Sept. 16, 1996, as amended at 62 FR 28928, May 28, 1997; 64 FR 50224, Sept. 15, n
1999; 78 FR 44667, July 24, 20131 2
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§92.207 Eligible administrative and planning costs. w
.2
A participating jurisdiction may expend, for payment of reasonable administrative and planning
costs of the HOME program and ADDI, an amount of HOME funds that is not more than ten E
percent of the sum of the Fiscal Year HOME basic formula allocation plus any funds received in (a,
accordance with §92.102(b) to meet or exceed participation threshold requirements that Fiscal °
a
Year. A state that transfers any HOME funds in accordance with §92.102(b) must exclude these W
funds in calculating the amount it may expend for administrative and planning costs. A p
participating jurisdiction may also expend, for payment of reasonable administrative and =
planning costs of the HOME program and the ADDI described in subpart M of this part, a sum c
up to ten percent of the program income deposited into its local account or received and
reported by its state recipients or subrecipients during the program year. A participating w
jurisdiction may expend such funds directly or may authorize its state recipients or a
subrecipients, if any, to expend all or a portion of such funds, provided total expenditures for
planning and administrative costs do not exceed the maximum allowable amount. Reasonable
administrative and planning costs include:
(a) General management, oversight and coordination. Reasonable costs of overall program
management, coordination, monitoring, and evaluation. Such costs include, but are not limited
to, necessary expenditures for the following:
City of San Bernardino, HOME Program Eligibility Criteria
6
Packet Pg. 159
I
(1) Salaries, wages, and related costs of the participating jurisdiction's staff. In charging costs to
this category the participating jurisdiction may either include the entire salary, wages, and
related costs allocable to the program of each person whose primary responsibilities with
regard to the program involves program administration assignments, or the prorated share of
the salary, wages, and related costs of each person whose job includes any program
administration assignments. The participating jurisdiction may use only one of these methods.
Program administration includes the following types of assignments:
(i) Developing systems and schedules for ensuring compliance with program requirements; n
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(ii) Developing interagency agreements and agreements with entities receiving HOME funds;
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(iii) Monitoring HOME-assisted housing for progress and compliance with program aL
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requirements;
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(iv) Developing agreements and monitoring housing not assisted with HOME funds that the =
participating jurisdiction designates as a matching contribution in accordance with §92.219(b)
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for compliance with applicable program requirements; o
(v) Preparing reports and other documents related to the program for submission to HUD; a
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(vi) Coordinating the resolution of audit and monitoring findings;
(vii) Evaluating program results against stated objectives; and
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(viii) Managing or supervising persons whose primary responsibilities with regard to the
program include such assignments as those described in paragraphs (a)(1)(i) through (vii) of this
section; d
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(2)Travel costs incurred for official business in carrying out the program; o
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(3) Administrative services performed under third party contracts or agreements, including such 2
services as general legal services, accounting services, and audit services; _
(4) Other costs for goods and services required for administration of the program, including E
such goods and services as rental or purchase of equipment, insurance, utilities, office supplies,
and rental and maintenance (but not purchase) of office space; and Q
(5) Costs of administering tenant-based rental assistance programs.
(b) Staff and overhead. Staff and overhead costs of the participating jurisdiction directly related
to carrying out the project, such as work specifications preparation, loan processing,
inspections, lead-based paint evaluations (visual assessments, inspections, and risk
assessments) and other services related to assisting potential owners, tenants, and homebuyers
City of San Bernardino, HOME Program Eligibility Criteria
7
Packet Pg. 160
(e.g., housing counseling); and staff and overhead costs directly related to providing advisory
and other relocation services to persons displaced by the project, including timely written
notices to occupants, referrals to comparable and suitable replacement property, property
inspections, counseling, and other assistance necessary to minimize hardship. These costs may
be charged as administrative costs or as project costs under §92.206(d)(6) and (f)(2), at the
discretion of the participating jurisdiction; however, these costs (except housing counseling)
cannot be charged to or paid by the low-income families.
(c) Public information. The provision of information and other resources to residents and citizen
organizations participating in the planning, implementation, or assessment of projects being W
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assisted with HOME funds.
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(d) Fair housing. Activities to affirmatively further fair housing in accordance with the o-
participating jurisdiction's certification under 24 CFR part 91. _
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(e) Indirect Costs. Indirect costs may be charged to the HOME program under a cost allocation =
0
plan prepared in accordance with OMB Circulars A-87 or A-122 as applicable.
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(f) Preparation of the consolidated plan. Preparation of the consolidated plan required under 24 a
CFR part 91. Preparation includes the costs of public hearings, consultations, and publication.
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(g) Other Federal requirements. Costs of complying with the Federal requirements in subpart H V
of this part. Project-specific environmental review costs may be charged as administrative costs
or as project costs in accordance with §92.206(d)(8), at the discretion of the participating
jurisdiction. y
(h) Preserving affordable housing already assisted with HOME funds. Costs specified under rn
§92.254(a)(9) may be charged as an administrative cost or may be charged to the project as m
provided in §92.254(a)(9). In addition, the foreclosure cost of a HOME-assisted rental housing
project with a HOME loan in default is an eligible administrative cost. o
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w
[61 FR 48750, Sept. 16, 1996, as amended at 67 FR 61756, Oct. 1, 2002; 69 FR 16766, Mar. 30, n
2004; 72 FR 16685, Apr. 4, 2007; 78 FR 44668,July 24, 2013] _
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§92.208 Eligible community housing development
organization (CHDO) operating expense and capacity building a
costs.
(a) Up to 5 percent of a participating jurisdiction's fiscal year HOME allocation may be used for
the operating expenses of community housing development organizations (CHDOs). This
amount is in addition to amounts set aside for housing projects that are owned, developed, or
sponsored by CHDOs as described in §92.300(a). These funds may not be used to pay operating
expenses incurred by a CHDO acting as a subrecipient or contractor under the HOME Program.
City of San Bernardino, HOME Program Eligibility Criteria
8
Packet Pg. 161
Operating expenses means reasonable and necessary costs for the operation of the community
housing development organization. Such costs include salaries, wages, and other employee
compensation and benefits; employee education, training, and travel; rent; utilities;
communication costs; taxes; insurance; equipment; materials; and supplies. The requirements
and limitations on the receipt of these funds by CHDOs are set forth in §92.300(e) and (f).
(b) HOME funds may be used for capacity building costs under§92.300(b).
[61 FR 48750, Sept. 16, 1996, as amended at 78 FR 44668, July 24, 2013] a
§92.209 Tenant-based rental assistance: Eligible costs and
requirements. 0.
(a) Eligible costs. Eligible costs are the rental assistance and security deposit payments made to 0
provide tenant-based rental assistance for a family pursuant to this section. Eligible costs also =
include utility deposit assistance, but only if this assistance is provided with tenant-based rental
assistance or security deposit payment. Administration of tenant-based rental assistance is
eligible only under general management oversight and coordination at §92.207(a), except that Q
the costs of inspecting the housing and determining the income eligibility of the family are
eligible as costs of the tenant-based rental assistance. N
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(b) General requirement. A participating jurisdiction may use HOME funds for tenant-based f°
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rental assistance only if the participating jurisdiction makes the certification about inclusion of
this type of assistance in its consolidated plan in accordance with 24 CFR 91.225(d)(1),
91.325(d)(1), or 91.425(a)(2)(i), and specifies local market conditions that lead to the choice of =
this option. 2M
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(c) Tenant selection. The participating jurisdiction must select low-income families in
accordance with written tenant selection policies and criteria that are based on local housing c
needs and priorities established in the participating jurisdiction's consolidated plan.
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(1) Low-income families. Tenant-based rental assistance may only be provided to very low- and =
low-income families. The participating jurisdiction must determine that the family is very low-
or low-income before the assistance is provided. During the period of assistance, the E
participating jurisdiction must annually determine that the family continues to be low-income.
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(2) Targeted assistance. (i) The participating jurisdiction may establish a preference for
individuals with special needs (e.g., homeless persons or elderly persons) or persons with
disabilities. The participating jurisdiction may offer, in conjunction with a tenant-based rental
assistance program, particular types of nonmandatory services that may be most appropriate
for persons with a special need or a particular disability. Generally, tenant-based rental
assistance and the related services should be made available to all persons with special needs
or disabilities who can benefit from such services. Participation may be limited to persons with
City of San Bernardino, HOME Program Eligibility Criteria
9
Packet Pg. 162
a specific disability if necessary to provide as effective housing, aid, benefit, or services as those
provided to others in accordance with 24 CFR 8.4(b)(1)(iv).
(ii) The participating jurisdiction may also provide a preference for a specific category of
individuals with disabilities (e.g., persons with HIV/AIDS or chronic mental illness) if the specific
category is identified in the participating jurisdiction's consolidated plan as having unmet need
and the preference is needed to narrow the gap in benefits and services received by such
persons.
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(iii) Self-sufficiency program. The participating jurisdiction may require the family to participate
in a self- sufficiency program as a condition of selection for assistance. The family's failure to U
continue participation in the self-sufficiency program is not a basis for terminating the o
assistance; however, renewal of the assistance may be conditioned on participation in the a
program. Tenants living in a HOME- assisted rental project who receive tenant-based rental c
assistance as relocation assistance must not be required to participate in a self- sufficiency o
program as a condition of receiving assistance. _
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(iv) Homebuyer program. HOME tenant-based rental assistance may assist a tenant who has -E
been identified as a potential low-income homebuyer through a lease-purchase agreement, °t
with monthly rental payments for a period up to 36 months (i.e., 24 months, with a 12-month a
renewal in accordance with paragraph (e) of this section). The HOME tenant-based rental N
0 assistance payment may not be used to accumulate a downpayment or closing costs for the y
purchase; however, all or a portion of the homebuyer-tenant's monthly contribution toward
rent may be set aside for this purpose. If a participating jurisdiction determines that the tenant '
has met the lease-purchase criteria and is ready to assume ownership, HOME funds may be
provided for downpayment assistance in accordance with the requirements of this part.
.9
(v) Preferences cannot be administered in a manner that limits the opportunities of persons on d
any basis prohibited by the laws listed under 24 CFR 5.105(a). For example, a participating
m
jurisdiction may not determine that persons given a preference under the program are o
therefore prohibited from applying for or participating in other programs or forms of a
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assistance. Persons who are eligible for a preference must have the opportunity to participate M
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in all programs of the participating jurisdiction, including programs that are not separate or =
different.
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(3) Existing tenants in the HOME-assisted projects. A participating jurisdiction may select low-
income families currently residing in housing units that are designated for rehabilitation or Q
acquisition under the participating jurisdiction's HOME program. Participating jurisdictions
using HOME funds for tenant-based rental assistance programs may establish local preferences
for the provision of this assistance. Families so selected may use the tenant-based assistance in
the rehabilitated or acquired housing unit or in other qualified housing.
City of San Bernardino, HOME Program Eligibility Criteria
10
Packet Pg. 163
i
i (d) Portability of assistance. A participating jurisdiction may require the family to use the
tenant-based assistance within the participating jurisdiction's boundaries or may permit the
family to use the assistance outside its boundaries.
(e) Term of rental assistance contract. The term of the rental assistance contract providing
assistance with HOME funds may not exceed 24 months, but may be renewed, subject to the
availability of HOME funds. The term of the rental assistance contract must begin on the first
day of the term of the lease. For a rental assistance contract between a participating
jurisdiction and an owner, the term of the contract must terminate on termination of the lease. a
For a rental assistance contract between a participating jurisdiction and a family, the term of W
the contract need not end on termination of the lease, but no payments may be made after
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termination of the lease until a family enters into a new lease. o
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(f) Rent reasonableness. The participating jurisdiction must disapprove a lease if the rent is not
reasonable, based on rents that are charged for comparable unassisted rental units. o
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(g) Tenant protections. The tenant must have a lease that complies with the requirements in
§92.253 (a) and (b).
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(h) Maximum subsidy. (1) The amount of the monthly assistance that a participating jurisdiction a
may pay to, or on behalf of, a family may not exceed the difference between a rent standard for N
AF N the unit size established by the participating jurisdiction and 30 percent of the family's monthly
adjusted income. c�
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(2)The participating jurisdiction must establish a minimum tenant contribution to rent.
(3)The participating jurisdiction's rent standard for a unit size must be based on: a,
4)
(i) Local market conditions; or
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(ii)The Section 8 Housing Choice Voucher Program (24 CFR part 982).
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(i) Housing quality standards. Housing occupied by a family receiving tenant-based assistance =
under this section must meet the requirements set forth in 24 CFR 982.401. The participating
jurisdiction must inspect the housing initially and re-inspect it annually. E
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(j) Security deposits. (1) A participating jurisdiction may use HOME funds provided for tenant- a
based rental assistance to provide loans or grants to very low- and low-income families for
security deposits for rental of dwelling units whether or not the participating jurisdiction
provides any other tenant-based rental assistance under this section.
(2) The relevant State or local definition of "security deposit" in the jurisdiction where the unit
is located is applicable for the purposes of this part, except that the amount of HOME funds
City of San Bernardino, HOME Program Eligibility Criteria
11
Packet Pg. 164
that may be provided for a security deposit may not exceed the equivalent of two month's rent
for the unit.
(3) Only the prospective tenant may apply for HOME security deposit assistance, although the
participating jurisdiction may pay the funds directly to the tenant or to the landlord.
(4) HOME funds for security deposits may be provided as a grant or as a loan. If they are
provided as a loan, the loan repayments are program income to be used in accordance with
§92.503. a
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(5) Paragraphs (b), (c), (d), (f), (g), and (i) of this section are applicable to HOME security deposit
assistance, except that income determinations pursuant to paragraph (c)(1) of this section and o
Housing Quality Standard inspections pursuant to paragraph (i) of this section are required only a
at the time the security deposit assistance is provided.
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(k) Program operation. A tenant-based rental assistance program must be operated consistent =
with the requirements of this section. The participating jurisdiction may operate the program 0
itself, or may contract with a PHA or other entity with the capacity to operate a rental
assistance program. The tenant-based rental assistance may be provided through an assistance Q
contract to an owner that leases a unit to an assisted family or directly to the family. In either
case, the participating jurisdiction (or entity operating the program) must approve the lease. N
(1) Use of Section 8 assistance. In any case where assistance under section 8 of the 1937 Act f°
becomes available, recipients of tenant-based rental assistance under this part will qualify for °'
L
tenant selection preferences to the same extent as when they received the HOME tenant-based
rental assistance under this part.
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[61 FR 48750, Sept. 16, 1996, as amended at 62 FR 28928, May 28, 1997; 67 FR 61756, Oct. 1, E
2002; 78 FR 44668, July 24, 20131
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§92.210 Troubled HOME-assisted rental housing projects.
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(a) The provisions of this section apply only to an existin g HOME- assisted rental project that, _
within the HOME period of affordability, is no longer financially viable. For purposes of this W
section, a HOME assisted rental project is no longer financially viable if its operating costs
significantly exceed its operating revenue. HUD may approve one or both of the actions y
described in paragraphs (b) and (c) of this section to strategically preserve a rental project after Q
consideration of market needs, available resources, and the likelihood of long-term viability of
the project.
(b) Notwithstanding §92.214, a participating jurisdiction may request and HUD may permit,
pursuant to a written memorandum of agreement, a participating jurisdiction to invest
additional HOME funds in the existing HOME-assisted rental project. The total HOME funding
L) for the project (original investment plus additional investment) must not exceed the per-unit
City of San Bernardino, HOME Program Eligibility Criteria
12
Packet Pg. 165
5.E.d
€ subsidy limit in §92.250(a). 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). If additional HOME funds are invested, HUD may require the period of
affordability to be extended, based on such considerations as the amount of additional HOME
funds or additional units.
(c) HUD Headquarters may, through written approval, permit the participating jurisdiction to
li reduce the number of HOME-assisted units, if the project contains more than the minimum
number of units required to be designated as HOME-assisted under §92.205(d). In determining E
whether to permit a reduction in the number of HOME-assisted units, HUD will take into W
account the required period of affordability and the amount of HOME assistance provided to U
2
the project.
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[78 FR 44669,July 24, 2013]
0
§92.212 Pre-award costs.
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(a) General. Before the effective date of the HOME Investment Partnership Agreement, the 0
participating jurisdiction may incur costs which may be charged to the HOME allocation after a
the award of the HOME allocation, provided the costs are in compliance with the requirements M
r
of this part (including environmental review requirements) and with the statutory and
regulatory requirements in effect at the time the costs are charged to the HOME allocation.
(b) Administrative and planning costs. Eligible administrative and planning costs may be v
incurred as of the beginning of the participating jurisdiction's consolidated program year (see r
24 CFR 91.10) or the date the consolidated plan describing the HOME allocation to which the
2M
costs will be charged is received by HUD, whichever is later. d
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(c) Project costs. Eligible project costs may be incurred during the current program year in an M
amount not to exceed 25% of the current HOME allocation amount, to be charged to the
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following year's HOME allocation. Before incurring the pre-award costs, the participating W
jurisdiction must comply with its citizen participation plan requirements addressing 24 CFR =
91.105(b)(2), (4), (5) and (g) (local governments) or 24 CFR 91.115(b)(2), (4), (5) and (f) (States).
In lieu of a full action plan, the participating jurisdiction may develop a mini-action plan which E
describes the proposed pre-award projects and costs in accordance with 24 CFR 91.220(c) and
includes, if applicable, 24 CFR 91.220(g)(2) (local governments) or 24 CFR 91.320(c) and, if w
applicable, 24 CFR 91.320(g)(2) (States).The mini-action plan must state that HOME funding for Q
the project(s) is subject to the future availability of HOME funds. The subsequent action plan
(i.e., action plan for the HOME allocation to which the costs will be charged) must also include
the use of HOME funds contained in the mini-action plan.
(d) Subrecipient or State recipient costs. The participating jurisdiction may authorize its
0 subrecipient or State recipient to incur pre-award costs in accordance with the requirements of
this section.The authorization must be in writing.
City of San Bernardino, HOME Program Eligibility Criteria
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Packet Pg. 166
} (e) Other pre-agreement costs. Pre-agreement costs in excess of the amount set forth in
paragraph (c) of this section must be approved, in writing, by the HUD Field Office before the
costs are incurred.
§92.213 HOME Funds and Public Housing.
(a) General rule. HOME funds may not be used for public housing units. HOME-assisted housing
units may not receive Operating Fund or Capital Fund assistance under section 9 of the 1937
Act during the HOME period of affordability.
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(b) Exception. HOME funds may be used for the development of public housing units, if the
units are developed under section 24 of the 1937 Act (HOPE VI) and no Capital Fund assistance a
under section 9(d) of the Act is used for the development of the unit. Units developed with =
both HOME and HOPE VI may receive operating assistance under section 9 of the 1937 Act.
Units developed with HOME and HOPE VI funds under this paragraph may subsequently receive x°
Capital Funds for rehabilitation or modernization.
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(c) Using HOME funds in public housing projects. Consistent with §92.205(d), HOME funds may °
be used for affordable housing units in a project that also contains public housing units,
provided that the HOME funds are not used for the public housing units (except as provided in M
paragraph (b) of this section) and HOME funds are used only for eligible costs in accordance M
with this part.
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(d) The HOME funds must be used in accordance with the requirements of this part and the v
project must meet the requirements of this part, including rent requirements in §92.252.
[78 FR 44669,July 24, 2013]
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§92.214 Prohibited activities and fees. 0-
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(a) HOME funds may not be used to: 2
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(1) Provide project reserve accounts, except as provided in §92.206(d)(5), or operating
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subsidies; E
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(2) Provide tenant-based rental assistance for the special purposes of the existing section 8 a
program, in accordance with section 212(d) of the Act;
(3) Provide non-federal matching contributions required under any other Federal program;
(4) Provide assistance for uses authorized under section 9 of the 1937 Act (Public Housing
Capital and Operating Funds);
City of San Bernardino, HOME Program Eligibility Criteria
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(5) Provide assistance to eligible low-income housing under 24 CFR part 248 (Prepayment of
Low Income Housing Mortgages), except that assistance may be provided to priority purchasers
as defined in 24 CFR 248.101;
(6) Provide assistance (other than tenant-based rental assistance, assistance to a homebuyer to
acquire housing previously assisted with HOME funds, or assistance to preserve affordability of
homeownership housing in accordance with §92.254(a)(9)) to a project previously assisted with
HOME funds during the period of affordability established by the particular jurisdiction in the
written agreement under §92.504. However, additional HOME funds may be committed to a
project for up to one year after project completion (see §92.502), but the amount of HOME
he maximum per-unit subsidy amount established under w
may not exceed t �
funds in the project p Y
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§92.250. o
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(7) Pay for the acquisition of property owned by the participating jurisdiction, except for
property acquired by the participating jurisdiction with HOME funds, or property acquired in o
anticipation of carrying out a HOME project; or =
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(8) Pay delinquent taxes,fees or charges on properties to be assisted with HOME funds. o
(9) Pay for any cost that is not eligible under§§92.206 through 92.209. Q
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(b)(1) Participating jurisdictions may not charge (and must prohibit State recipients, ='-
subrecipients, and community housing development organizations from charging) servicing,
origination, or other fees for the purpose of covering costs of administering the HOME program
(e.g., fees on low-income families for construction management or for inspections for a
compliance with property standards) (see §92.206(d)(6) and §92.207), except that: —
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(i) Participating jurisdictions and State recipients may charge owners of rental projects
reasonable annual fees for compliance monitoring during the period of affordability. The fees
must be based upon the average actual cost of performing the monitoring of HOME-assisted o
rental projects. The basis for determining the amount of for the fee amount must be w
documented and the fee must be included in the costs of the project as part of the project 0
underwriting; _
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(ii) Participating jurisdictions, subrecipients and State recipients may charge nominal E
application fees (although these fees are not an eligible HOME cost) to project owners to
discourage frivolous applications. The amount of application fees must be appropriate to the a
type of application and may not create an undue impediment to a low-income family's,
subrecipient's, State recipient's, or other entity's participation in the participating jurisdiction's
program; and
(iii) Participating jurisdictions, subrecipients and State recipients may charge homebuyers a fee
for housing counseling.
City of San Bernardino, HOME Program Eligibility Criteria
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5.E.d
(2) All fees charged under paragraph (b)(1) of this section are applicable credits under 2 CFR
part 225 (OMB Circular A-87, entitled "Cost Principles for State, Local, and Indian Tribal
Governments").
(3) The participating jurisdiction must prohibit project owners from charging fees that are not
customarily charged in rental housing (e.g., laundry room access fees), except that rental
project owners may charge:
(i) Reasonable application fees to prospective tenants;
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(ii) Parking fees to tenants only if such fees are customary for rental housing projects in the
neighborhood; and o
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(iii) Fees for services such as bus transportation or meals, as long as the services are voluntary
and fees are charged for services provided. o
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[61 FR 48750, Sept. 16, 1996, as amended at 62 FR 28929, May 28, 1997; 67 FR 61756, Oct. 1,
2002; 72 FR 16685, Apr. 4, 2007; 78 FR 44669, July 24, 20131
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§92.215 Limitation on jurisdictions under court order. a
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Limitations on the use of HOME funds in connection with litigation involving discrimination or CU
fair housing are set forth in section 224 of the Act. ,
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City of San Bernardino, HOME Program Eligibility Criteria
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Packet Pg. 169