hud notice of eligibility

See the DRGR Training for NSP Users: Day 1 - Presentation Slides starting on page 11 for more information. Grantees may set a fixed rent, for example, 30 percent of the 120 percent of Area Median Income. There is no HUD rule that prohibits a preference for persons participating in the Section 8 program. The HUD Certification Label(s), sometimes referred to as a HUD seal or tag, is a metal plate located on the exterior of each section of the home. Yes. Other helpful information for housing counselors is also available on the HUD.gov page Information for Housing To be eligible for NSP funds, a homebuyer must: Demonstrate income eligibility (household income at or below 120% AMI), Agree to occupy the residence as their principal residency, Demonstrate ability to pay the mortgage and maintain the home, Complete eight hours of housing counseling by a HUD certified counseling agency. Yes, energy efficient stoves, refrigerators and central air conditioners are eligible costs under NSP. Public facilities generally include buildings that are either publicly owned or that are traditionally provided by the government, or owned by a nonprofit, and operated so as to be open to the general public. An income eligible real estate agent who markets and sells NSP property cannot purchase an NSP property for him/herself. APPENDIX 26: GUIDEFORM NOTICE OF ELIGIBILITY FOR SECTION 104(d) RELO ASSIST - Lower Income Res Tenant - Sec 8 Assist Not Avail: PDF: APPENDIX 27: HUD Form 40072 - Claim for Rental or Purchase Assistance (sec. What are the conflict of interest rules concerning real estate agents or brokers? Presentation slides, transcripts, and recordings for all NSP webinars are available at Training and Events. The activities must be reasonably related to addressing the overall foreclosure and abandonment problem in the community. Since most NSP grantees fall in this group, they are not subject to Part 50. The NSP Underwriting Principles Webinar, held August 2010, provides basic tips Funding from different NSP allocations can be combined on the same project provided all of the following are met: The target areas overlap; The activity is eligible based on the approved NSP1, NSP2 and/or NSP3 Action Plans; and There is a clear delineation of specific expenses being paid by multiple NSP allocations with no overlap. Does HUD have guidelines for how to structure NSP soft second mortgages to comply with conventional underwriting standards? } else { } Employment and training goals may be met by either directly providing the employment or training or by facilitating the employment or training. Rental income received by private rental property owners is NOT program income. What is the definition of reconstruction? input = document.getElementById("filterInput"); However, HUD strongly encourages grantees to incorporate green and sustainable building practices in their NSP programs. Section 570.206 notes that "staff and overhead costs directly related to carrying out activities [are] eligible under 570.201 through 570.204, since those costs are eligible as part of such activities." In order for a property to be eligible under Eligible Use E, it must fulfill 2 conditions: the property (previously developed land, with or without structures) must be vacant; and it must be located in an area of greatest need, as identified in a grantee's NSP Substantial Amendment. If a developer acquires and rehabilitates a property using NSP funds and then sells a property to an eligible buyer, are the sales proceeds considered program income? How must the affordability and resale/recapture provisions be legally recorded? NSP property may not be transferred to the Community Development Block Grant (CDBG) program, but anticipated program income arising from the sale of NSP property may be identified as amounts to be transferred to CDBG. Hb```f``d`c``9 ,@Q h] Is purchase and installation of energy efficient appliances an eligible cost? Additionally, grantees should separate maintain local records which will reflect the funds received and expended. In general, no. HUD environmental compliance review requirements will continue to apply as long as the CDBG requirements apply to the transfers of title and/or the use of the property as a result of the transfer. This responsibility rests with the Field Office. 0000005805 00000 n If a structure is assisted in whole or in part with NSP funds and contains two or more housing units, the proportion of NSP funds that can be counted toward the low-income targeting requirement is equal to the proportion of units occupied by households at or below 50% AMI. If a home is not attracting offers, it is possible that the asking price was set higher than the current market or higher than a price affordable to the target population. The recapture and resale approaches are the two methods that the HOME program uses and adopted by NSP to ensure continued affordability of assisted housing for homeowners. The costs associated with the installation of security systems during rehabilitation and disposition of NSP assisted properties are eligible maintenance expenses. HOPWA Eligibility Requirements. Typically, a developer fee is a "reward" in return for taking the "risk" of a real estate development; hence the complexity and scale of a project should be a consideration in establishing a developer fee. The property is subject to a court-ordered receivership or nuisance abatement related to abandonment pursuant to state or local law or otherwise meets a state definition of an abandoned home or residential property. 0000006097 00000 n This property would still be considered foreclosed or abandoned, and thus could be used under the 25% low-income set aside. The Unified NSP1 and NSP3 Notice states that the grantee must revive the HOME affordability restrictions for the greater of the remaining period of HOME affordability or the continuing affordability requirements of the NSP Notice. Information on how to become a HUD-approved housing counseling agency is located on the HUD.gov page How to Become a HUD Approved Housing Counseling Agency. The size of the project and how much work a developer is putting into the project. ({L>8-Zk R[!#s Ey%65Gf;/q*Q,//iDAxUx`,fq^,-{NL\y'x?q@>1vi\9;x7o 9Y=$&[+od%MP~%CD25,^'hG)gDl`/a,12K%Z>&J~ ;&s!%2teNeY~pK^t-NR(r if (textInput.length > 0) { As provided in paragraph 24 CFR Part 92.254(a)(5)(i)(A), deed restrictions, covenants running with the land, or other similar mechanisms must be used as the mechanism to impose the affordability and recapture/resale requirements. NOTE: See the Glossary for specific definitions and paragraph 2-23 for an explanation of this difference. In general, conflicts arise when a representative of the grantee has a financial interest in a contract awarded by the agency. If a home is not attracting offers, it is possible that the asking price was set higher than the current market or higher than a price affordable to the target population. Most subsidy programs will allow refinancing during the affordability period but may have different rules regarding increasing the private first mortgage, cashing in equity, and repaying the NSP assistance. HUD may disallow the transfer if the risk of non-compliance with any NSP requirement is high or would be increased by Because it will become Community Development Block Grant (CDBG) program funding, the program income on hand is not subject to the 25% set-aside requirement. U.S. Department of Housing and Urban Development 451 7th Street, S.W., Washington, DC 20410 T: 202-708-1112 Can grantees use program income to pay administration costs during and after the grant period? See the July 2010 NSP Cross Cutting Regulation Overview Series: Procurement. How can a grantee change its disposition strategy from homeownership to rental? If a developer sells a property, a NSP grantee may permit the proceeds to be retained by the developer and those funds are not considered program income. Presentation slides, transcripts, and recordings for all NSP webinars are available at the NSP Learning Center. A grantee may request a one-time transfer of program income on hand. Section 1497 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Pub. Because the property was acquired prior to the completion of the ER, the property is not eligible for NSP funding. The NSP2 amendment process differs from the NSP1 and NSP3 amendment process. Yes, a project may receive a combination of NSP1, NSP2, and NSP3 assistance. Show MainMenu Hide MainMenu. The NSP Policy Alert: Guidance on the Impact of New Definitions for NSP-Eligible Properties published April 2, 2010 provides information on how the new definitions impacted NSP1 and NSP2 grantees and discusses different scenarios of properties that are considered abandoned and foreclosed. The Energy Star website has a list of raters All NSP rounds encourage energy efficiency. Yes and yes. This notice also sets forth PHAs eligibility for administrative fees and fees for other eligible expenses, the housing assistance payments (HAP) funding award the PHA must submit a notice declining the award to NewHCVs@hud.gov by September 2, 2022. } else { For instance, in a 40-unit condominium that A property with eight or more units must comply with Davis-Bacon standards. In these cases, renters should be allowed first right to purchase the home, but if not exercised, the home may be sold to another buyer. function myFunction(e) { See the NSP Policy Alert Guidance on the Impact of New Definitions for NSP-Eligible Properties. Under the HOME program standard, the affordability period is determined by the level of NSP investment in the unit of housing, whether rental or home ownership: Under $15,000 = 5-year affordability period $15,000-$40,000 = 10-year affordability period Over $40,000 = 15-year affordability period For As provided in 24 CFR Part 92.254(a)(5)(i)(A), "affordability restrictions may terminate upon occurrence of any of the following termination events: foreclosure, transfer in lieu of foreclosure or assignment of an FHA insured mortgage to HUD. When submitting questions indicate how urgent your request is and if you prefer to receive your reply via phone or email. 0000001577 00000 n New Accounts, Account Updates, and Urgent Requests: DRGR users who have requests regarding a new account, account update, or an urgent issue should email DRGR_Help@hud.gov. Staff appraisers need not be State licensed or certified, but they must meet the remaining qualifications outlined in the regulation. for (i = 1; i < tr.length; i++) { If multiple federally awarded funds are expended in a single program year, then NSP grantees and or their subrecipients need to allocate proportionally the cost of the audit across all of the federal funding sources. console.log(count); Neither may bids for choice-limiting actions (such as acquisition, construction, demolition, etc.) Review or monitoring of specific projects as well as on-site monitoring for federal regulations (such as Davis Bacon, Environmental Review, etc.) HUD strongly cautions grantees against choosing a transfer approach that involves multiple permissions from HUD as the staff resources are limited and processing delays could result. For lease-purchase type programs, the period starts on the date of the lease for initial occupancy of the property. The grantee should work with the renter to ensure that they have improved or repaired their credit and saved enough to purchase the home. How is the affordability period calculated and enforced? Does Davis-Bacon apply when conducting demolition activities? The NSP Toolkit Guide to Understanding Mortgage Financing for NSPAssisted Homebuyers provides guidelines for how to structure NSP soft second mortgages to comply with conventional underwriting standards. Developer fees are only permitted to be paid to private individuals, for-profit, and private non-profit entities. A contractor or subcontractor is awarded a contract for work arising in connection with a NSP new construction, rehabilitation or demolition project in an amount that exceeds $100,000. See the following resources for more information: For NSP, how many users are needed in DRGR? If a grantee follows a proper bid process and receives no bids, it is permissible to use "non-competitive negotiation" (sometime known as "sole source") to award a contract. as explained under Eligible Use A. NSP funding is grant funding and would typically provide a better cost of funds than bond financing for similar purposes. State Monitoring (8/9/11). In addition, the grantees will work to strengthen partnerships between local HIV housing and service providers and victim service providers for client outreach and engagement and for comprehensive supportive services to ensure client success in the program. If NSP may affect a historic building or archeological site, the RE must consult with the State Historic Preservation Office (SHPO) and others to try to avoid, minimize or mitigate any adverse impacts to those properties. In addition, HUD restricts adjustments, so income limits do not increase more than five percent of the previous year's very low-income figure OR twice the increase in the national MFI, whichever is greater. Builders Risk Insurance - Contractors who are required to obtain builders risk insurance in relation to an NSP covered contract are NSP funds cannot be used to purchase tax-exempt bonds. Demonstrate ability to pay the mortgage and maintain the home. Refer to 24 CFR 58.35 (a)(3)(i) and (ii), found under Laws and Regulations posted on HUD's Environment website. Two monetary thresholds apply to Section 3: If the NSP investment (alone or in combination with other Section 3 covered assistance) in a demolition, construction or rehabilitation project exceeds $200,000 but no single contractor is awarded more than $100,000, then the Section 3 requirements apply to the training, employment, and contracting activities of the grantee or subrecipient but not to those of the contractor. The NSP definition of foreclosed property includes initiation of the foreclosure process, as well as the end outcome resulting in the transfer of title to an ISII. Grantees of NSP2 and NSP3 funding are required to spend 50% of their allocation within two years, and 100% within three years. NSP1 is the original program that refers to the $3.92 billion authorized under the Housing and Economic Recovery Act (HERA) of 2008. Because the resale requirement caps the sale price at an affordable level, it is highly unlikely that the homeowner will retain a significant return based on the appreciated value. No, a subrecipient cannot earn a fee under NSP. Payments back to a developer are not program income but the grantee must ensure that the total amount of NSP funds that it allows the developer to retain (including fees, sales proceeds and mortgage payments) are reasonable and do not constitute undue enrichment. Persons covered: The conflict of interest provisions of this section apply to any person who is an employee, agent, consultant, officer, or elected official or appointed official of the recipient, or of any designated public agencies, or of subrecipients that are receiving funds under this part. The new online Income Calculator will make this task much simpler. The recapture approach to affordability can only be used when there is a direct homebuyer subsidy. If NSP funds are combined with other federal funds in a project, such as CDBG or HOME, which program requirements apply? According to 24 CFR 570.206, administrative costs are classified as "reasonable administrative costs and carrying charges related to the planning and execution of community development activities assisted in whole or part [with CDBG funds]." 2 2. The conclusion of consultation may be documented in a letter signed by the SHPO or a Memorandum of To be considered supplemental funds, the additional projects/activities must not change the scope, magnitude, location, or environmental circumstances of the original, HUD-approved proposal. Yes, there are some situations where NSP funds could be used to pay these taxes, but the options are limited. Once HUD permission is granted, then the grantee may receipt the amounts identified in accordance with HUDs written permission. NSP funds can be used only as a financing mechanism for the purchase and redevelopment of foreclosed upon homes and residential properties (soft second loans, loan loss reserves, equity sharing, etc.) The field office will verify the amounts in the Disaster Recovery Grant Reporting System (DRGR) and ensure that the 25% set-aside has been met. Eligible activity delivery costs may include costs related to the sale of the property, identifying income eligible homebuyers, obtaining appraisals, construction oversight and management, loan underwriting and other activities. Reducing Substance Use Disorders; Improving Care for Medicaid Beneficiaries with Complex Care Needs and High Costs Under what conditions can NSP grantees acquire short sale properties using NSP funds? This will depend on whether your intended use of the program income will change from the use described in your existing NSP1 or 3 substantial amendment or your NSP2 proposal, and whether this change meets the Community Development Block Grant (CDBG) requirements for a substantial amendment. If solicitation is for construction, a "sealed bid" process is preferred. Grantees may not commit or expend resources, either public or private, prior to receiving environmental clearance. If we have not closed out our NSP grant, and we transfer some NSP program income to the Community Development Block Grant (CDBG) program, can we transfer it back to NSP for use on an NSP activity, if needed? The use of NSP funds to pay program administrative costs is authorized under 24 CFR 570.206, Program Administrative Costs, which permits NSP funds to be used for "reasonable administrative costs and carrying charges related to the planning and execution of community development activities assisted in whole or in part [with NSP funds]. These administrative costs satisfy the statutory requirement for meeting a national objective because the costs are incurred in support of individual eligible program activities that meet a national objective. A grantee that has its own processes that may be more restrictive than these regulations must always follow the more restrictive standards. Is a for-profit developer required to complete an audit of their NSP funding? HUD will issue guidance related to grant close out, which will include how grantees will handle program income earned after the end of the grant term. No. The 20% guidance is not a program requirement. Both the owner and manager need clear, written policies and procedures that incorporate all of the tasks to be performed by each party and identify who performs them. They will also be able to spend program income and any remaining funds in the line of credit. When creating a voucher for an NSP drawdown, why does the amount available to draw for an Activity differ from what I think it should be? It should be noted that typically an exception can be granted by the field office for employees of an organization who have no oversight or control of the grant, for instance an administrative assistant. At a minimum, activities should be listed separately in DRGR based on the following factors: Responsible Organization: The entity most directly responsible for the administration of the program should be listed as the responsible organization (e.g. There is a clear delineation of specific expenses being paid by multiple NSP allocations with no overlap. If a tenant is displaced as a direct result of privately undertaken rehabilitation, demolition, or acquisition, NSP uses the definition of ION in the CDBG program regulations at 24 CFR 570.606(b)(3): ION occurs upon the execution of the loan or grant agreement between the grantee (or State or state recipient, as applicable) and the person owning or controlling the real property. On the other hand, if you are simply transferring unused NSP program income on hand and any anticipated future NSP revenue to the CDBG program, you should complete any affected activities, then upload to the Action Plan your written permission from HUD and annotate the overall Quarterly Performance Report (QPR) narrative in DRGR. What are the main features of recapture and resale? Can NSP funds be combined with other funding sources in a project? FAQs related to land banks are currently being developed. 0000003475 00000 n If the former owner is a lawful occupant and is displaced by the NSP-funded activity, he is eligible for relocation assistance and payments under URA. It says "in its NSP action plan substantial amendment, a grantee will define 'affordable rents.' Owner's Certification of Compliance with HUD's Tenant Eligibility and Rent Procedures - Partial Certification (Instructions) (06/2014) HUD-50061: HUD-50124-A: Section 184A Homebuyer Notice Form (09/2018) HUD-50125-A: Single Close 184A Applicant Acknowledgement (09/2018) This notice also sets forth PHAs eligibility for administrative fees and fees for other eligible expenses, the housing assistance payments (HAP) funding award the PHA must submit a notice declining the award to NewHCVs@hud.gov by September 2, 2022. Sample letters are provided in the Toolkit. HUD will process draws for any expense legitimately incurred by the deadline, even if the draw occurs several weeks later. Paperwork Reduction Act: The information collection requirements referred to in this notice have been var tdTopic = tr[i].getElementsByTagName("td")[0]; For homeownership using the Resale Approach, it is the total amount of NSP funds used in developing the project, even if the funds are returned through sale proceeds. An NSP-assisted two-unit structure (duplex) must have at least one unit occupied by an LMMI household. HUD is working with its technical assistance providers to present webinars on the transfer process. For example, acquisition and disposition of properties (including vacant property that will remain "as is") are categorically excluded subject to Part 58.5, and thus do not require an Environmental Assessment, as long as there is no change in land use (24 CFR Part 58.35(a)(5)). However, the Responsible Entity (RE) is ultimately responsible for the content of the Environmental Review Record (ERR) and must make an independent evaluation of the environmental issues, take responsibility for the scope and content of the compliance findings, and make the final environmental decision concerning project approval. Some grantees no longer have an adequate pool of NSP-eligible foreclosed or abandoned properties in their target areas although they do have other needs that CDBG funding could be used to address. However, HUD has issued a policy statement allowing NSP grantees to enter into an "option agreement" or a "conditional contract" and still be able to obligate funds before the environmental review is completed. What kinds of closing costs are eligible in NSP? Training costs are also eligible to be paid with NSP funds. Generally, the money must be used to buy, fix up, and resell foreclosed and abandoned homes. What kinds of third-party fees are considered eligible development costs in NSP? <> A line item can be revised if the following conditions apply: For more information on revising voucher see the DRGR Training for NSP Users Day 2 - Presentation Slides pages 16-21. When grantees combine funds from two Federal programs, the most restrictive Federal rules apply. } The property does not meet the definition of foreclosed or HUD has determined that compliance with URA appraisal requirements is unnecessarily burdensome, if the anticipated value of the proposed acquisition is estimated at $25,000 or less, and the acquisition is voluntary. Will there be training for the updates to the Integrated Disbursement and Information System (IDIS) as it relates to the NSP program income transfer? Disposition costs are allowable for NSP-assisted properties under Eligible Uses A, B, C, and E, and they include the following: Is the installation of security systems an eligible NSP cost? Other sources of developer profit, in addition to the developer fee, such as builders profits, property management fees, and cash flow. A property is defined as one or more buildings on an undivided lot or on contiguous lots or parcels, which are commonly-owned and operated as one rental, cooperative, or condominium project. Grantees must document that beneficiaries have incomes at or below the annual income limits established by HUD. Please refer to the Energy Star for New Homes Program Guidelines. Assistance with DRGR issues will be available soon. The new online Income Calculator will make this task much simpler. Developers are not allowed to charge activity delivery costs but they may charge for actual, eligible project costs. IDIS already has substantial guidance available online on how to receipt the Community Development Block Grant (CDBG) program income. (%oRUXS^wrf? Otherwise, attenuation measures must be incorporated into construction plans (66-75 DNL, Normally Unacceptable). In cases where fees may exceed $100,000, procurement is subject to 24 CFR Part 85.36. HUD is currently developing procedures for these transactions. The number of dwelling units on a site may not be increased; but, the number of rooms per unit may be increased or decreased. Are costs incurred for a failed acquisition eligible to be paid by NSP? However, HUD has the discretion to determine the risk that the grantee will fail to meet the 25% set-aside (for grant funds plus program income expended to date) and make a determination regarding a fund transfer in that context. Therefore, first deduct the amounts of any unused NSP program income proposed for transfer (not including anticipated future revenue). Consequently, HOPWA funds also may be used for services including (but not limited to) assessment and case management, substance abuse treatment, mental health treatment, nutritional services, job training and placement assistance, and assistance with daily living. HUD publishes annual income limits based on household size that are used to determine the maximum household income. Although redevelopment activities financed with NSP2 and 3 funds are restricted to housing, would it be possible to use NSP funds to finance the housing component of a mixed-use development? Persons with down payment assistance, participants in lease-purchase programs, and Section 8 homeownership voucher holders may use those mechanisms to purchase an NSP home. Are the Section 104(d) relocation requirements waived for NSP? A list of the waivers and alternative requirements extended by this notice from PIH 2020-33 is included as an appendix. NSP funds can be used only as a financing mechanism for the purchase and redevelopment of foreclosed upon homes and residential properties (soft second loans, loan loss reserves, equity sharing, etc.) Whose income is used to determine household income? Yes. Notice of Funding Opportunity (NOFO) The Notice of Funding Opportunities (NOFO) is a published each year on Grants.gov for HUDs Discretionary Funding Programs.

Baelor House Of The Dragon, Demon Slayer Kimetsu No Yaiba Characters, Plum Organics Puffs Super, Warsaw Property Market, The Tempest Litcharts Pdf,