| (a) Commitment or Reservation of Funds. The Administrator
must submit true and correct information, certified as such, with
a request for the Commitment or Reservation of Funds as described
in paragraphs (1) - (15) 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 Activity and soft costs 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 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) Identification of Lead-Based Paint (LBP);
(8) 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;
(9) If applicable, documentation to address or resolve
any potential Conflict of Interest, Identity of Interest, duplication
of benefit, or floodplain mitigation;
(10) Appraisal which includes post construction improvements
for Activities involving construction;
(11) A title commitment to issue a title policy that
evidences the property will transfer with no tax lien, child support
lien, mechanic's or materialman's lien or any other restrictions or
encumbrances that impair the good and marketable nature of title to
the ownership interest and that the definition of Homeownership will
be met. The effective date of the title commitment must be no more
than 60 days prior to the date of Activity submission. Commitments
that expire prior to execution of closing must be updated at closing
and must not have any adverse changes in order to close;
(12) In the instances of replacement with an MHU, information
necessary to draft loan documents and issue Statement of Ownership
and Location (SOL);
(13) Life event documentation, as applicable, and all
information necessary to prepare any applicable affidavits such as
marital status and heirship;
(14) A copy of the recorded executory contact and a
current payoff statement; and
(15) Any other documentation necessary to evidence
that the Activity meets the program requirements.
(b) Disbursement of funds. The Administrator must comply
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, 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) 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;
(3) Property inspections, including photographs of
the front, back, and side elevations of the housing unit and at least
one picture of 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;
(4) Certification that its fiscal control and fund
accounting procedures are adequate to assure the proper disbursal
of, and accounting for, funds provided, no Person that would benefit
from the award of HOME funds has satisfied the Applicant's 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;
(5) Original, executed, legally enforceable loan documents,
and statement of location, as 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.
This provision is not applicable for funds made available at the loan
closing;
(6) Expenditures must be allowable and reasonable in
accordance with federal, state, and local rules and regulations. The
Department shall determine the reasonableness of each expenditure
submitted for reimbursement. The Department may request Administrator
or Developer 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;
(7) The request for funds for administrative costs
must be proportionate to the amount of Direct Activity Costs requested
or already disbursed;
(8) Table funding requests must be submitted to the
Department with complete documentation no later than 14 calendar days
prior to the anticipated loan closing date. Such a request must include
a draft closing disclosure, title company payee identification information,
the Administrator or Developer's authorization for disbursement of
funds to the title company, request letter from title company to the
Comptroller of Public Accounts with bank account wiring instructions,
and invoices for costs being paid at closing;
(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 secured by the
loan, 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's insurance policies charged
as Activity costs, evidence of payment of the cost must be submitted
with the retainage request.
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