| (a) Commitment or Reservation of Funds. The Administrator
must submit the true and complete information, certified as such,
with a request for the Commitment or Reservation of Funds as described
in paragraphs (1) - (20) of this subsection:
(1) Head of Household name and address of housing unit
for which assistance is being requested;
(2) A budget that includes the amount of Activity funds
specifying the acquisition costs, construction costs, soft costs and
administrative costs requested, a maximum of five percent of hard
construction costs for contingency items, proposed Match to be provided,
evidence that Direct Activity Cost and Soft Cost limitations are not
exceeded, and evidence that any duplication of benefit is addressed;
(3) Verification of environmental clearance;
(4) A copy of the Household's intake application on
a form prescribed by the Department;
(5) Certification of the income eligibility of the
Household signed by the Administrator and all Household members age
18 or over, and including the date of the income eligibility determination.
In instances where the total Household income is within $3,000 of
the 80 percent AMFI, all documentation used to determine the income
of the Household;
(6) Project cost estimates, construction contracts,
and other construction documents necessary to ensure applicable property
standard requirements will be met at completion;
(7) When assistance is provided in the form of a loan,
provide written consent from all Persons who have a valid lien or
ownership interest in the Property;
(8) In the instance of relocation from one site to
another site, the Household must document Homeownership of the existing
unit to be replaced and must establish Homeownership of the lot on
which the replacement housing unit will be constructed. The Household
must agree to the demolition of the existing housing unit. HOME Activity
funds cannot be used for the demolition of the existing unit and any
funding used for the demolition is not eligible Match; however, solely
for a Activity under this paragraph, the Administrator Match obligation
may be reduced by the cost of such demolition without any Contract
amendment;
(9) Identification of any Lead-Based Paint (LBP);
(10) For housing units located within the 100-year
floodplain or otherwise required to carry flood insurance by federal
or local regulation, certification from the Household that they understand
the flood insurance requirements;
(11) Consent to demolish from any existing mortgage
lien holders and consent to subordinate to the Department's loan,
if applicable;
(12) If applicable, documentation to address or resolve
any potential conflict of interest, Identity of Interest, duplication
of benefit, or floodplain mitigation;
(13) A title commitment or policy or a down date endorsement
to an existing title policy evidencing the Household's ownership of
the property:
(A) For New Construction Activities, a title commitment
or down-date endorsement to an existing title policy the effective
date title commitment must be no more than 60 days prior to of the
date of Activity submission. Title commitments for loan projects that
expire prior to the loan closing date must be updated and must not
have any adverse changes; and
(B) For Reconstruction Activities, a title report or
a title commitment dated not more than six months prior to the date
of Activity submission;
(14) Documents evidencing ownership, such as a warranty
deed, life estate, or 99-year leasehold;
(15) If the housing to be replaced is an MHU, a Statement
of Ownership and Location (SOL) for the MHU;
(16) Tax certificate that evidences a current paid
status, and in the case of delinquency, evidence of an approved payment
plan with the taxing authority and evidence that the payment plan
is current;
(17) In the instances of replacement with an MHU, information
necessary to draft loan documents or grant agreements to issue SOL;
(18) Life event documentation, as applicable, and all
information necessary to prepare any applicable affidavits such as
marital status and heirship;
(19) For disaster relief set-aside Activities, evidence
that the housing unit occupied by the eligible Household was damaged
as a direct result of a federal, state, or locally declared disaster
that occurred less than four years prior to the submission of the
Activity; and
(20) Any other documentation necessary to evidence
that the Activity meets the program requirements.
(b) Loan closing or grant agreement. In addition to
the documents required under subsection (a) of this section, the Administrator
must submit the appraisal or other valuation method approved by the
Department which establishes the post construction value of improvements
for Activities involving construction prior to the issuance of grant
or loan documents by the Department.
(c) Disbursement of funds. The Administrator must comply
with all of the requirements described in paragraphs (1) - (12) of
this subsection, for a request for disbursement of funds to reimburse
eligible costs incurred. Submission of documentation related to the
Administrator's compliance with requirements described in paragraphs
(1) - (12) of this subsection, may be required with a request for
disbursement:
(1) For construction costs associated with a loan,
a down date endorsement to the title policy not older than the date
of the last disbursement of funds or 45 days, whichever is later.
For release of retainage the down date endorsement must be dated at
least 40 days after the Construction Completion Date;
(2) For construction costs associated with a grant
agreement, an interim lien waiver or final lien waiver. For release
of retainage the release on final payment must be dated at least 40
days after the Construction Completion Date;
(3) If applicable, a maximum of 50 percent of Activity
funds for an Activity may be drawn before providing evidence of Match.
Thereafter, each Administrator must provide evidence of Match, including
the date of provision, in accordance with the percentage of Activity
funds disbursed;
(4) Property inspections, including photographs of
the front, back, and side elevations of the housing unit and at least
one picture of the each of the kitchen, family room, each bedroom
and each bathroom with date and property address reflected on each
photo. The inspection must be signed and dated by the inspector and
Administrator;
(5) Certification that its fiscal control and fund
accounting procedures are adequate to assure the proper disbursal
of, and accounting for, funds provided; that no Person that would
benefit from the award of HOME funds; that it has satisfied any applicable
cash reserve obligation or made promises in connection therewith;
that each request for disbursement of HOME funds is for the actual
cost of providing a service; and that the service does not violate
any conflict of interest provisions;
(6) The executed grant agreement or original, executed,
legally enforceable loan documents and statement of location, if applicable,
for each assisted Household containing remedies adequate to enforce
any applicable affordability requirements. Original documents must
evidence that such agreements have been recorded in the real property
records of the county in which the housing unit is located and the
original documents must be returned, duly certified as to recordation
by the appropriate county official;
(7) Expenditures must be allowable and reasonable in
accordance with federal, state, and local rules and regulations. The
Department shall determine the reasonableness for expenditures submitted
for reimbursement. The Department may request Administrator to make
modifications to the disbursement request and is authorized to modify
the disbursement procedures set forth herein and to establish such
additional requirements for payment of HOME funds to Administrator
as may be necessary or advisable for compliance with all program requirements;
(8) The request for funds for administrative costs
must be proportionate to the amount of Direct Activity Costs requested
or already disbursed;
(9) Include the withholding of ten percent of hard
construction costs for retainage. Retainage will be held until at
least 40 days after the Construction Completion Date;
(10) For final disbursement requests, submission of
documentation required for Activity completion reports and evidence
that the demolition or, if an MHU, salvage and removal of all dilapidated
housing units on the lot, certification or other evidence acceptable
to Department that the replacement house, whether site-built or MHU,
was constructed or placed on and within the same lot for which ownership
was established and on and within the same lot secured by the loan
or grant agreement, if applicable, and evidence of floodplain mitigation;
(11) The final request for disbursement must be submitted
to the Department with support documentation no later than 60 days
after the termination date of the Contract in order to remain in compliance
with Contract and eligible for future funding. The Department shall
not be obligated to pay for costs incurred or performances rendered
after the termination date of a Contract; and
(12) For costs associated with insurance policies,
including title policies and homeowner insurance policies, charged
as Activity costs, evidence of payment of the cost must be submitted
with the retainage request.
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