| (a) Commitment or Reservation of Funds. The Administrator
must submit true and correct information, certified as such, with
a request for the Commitment of Funds as described in paragraphs (1)
- (12) 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 cost, construction costs, contractor fees,
and developer fees, as applicable. A maximum of five percent of hard
construction costs for contingency items, proposed Match to be provided,
evidence that Activity 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.
All documentation used to determine the income of the Household must
be provided;
(6) Project cost estimates, construction contracts,
and other construction documents necessary, in the Department's sole
determination, to ensure applicable property standard requirements
will be met at completion;
(7) Identification of Lead-Based Paint (LBP) if site
remediation is needed;
(8) Executed sales contract and documentation that
the first lien mortgage meets the eligibility requirements;
(9) Evidence that the housing unit will be located
outside the 100-year floodplain;
(10) If applicable, documentation to address or resolve
any potential conflict of interest, Identity of Interest, duplication
of benefit, or floodplain mitigation;
(11) Appraisal, which includes post construction improvements;
and
(12) Any other documentation necessary to evidence
that the Activity meets the program requirements.
(b) Construction Loan closing. The Administrator must
submit the documents described in paragraphs (1) - (2) of this subsection,
with a request for the preparation of loan closing with the request
for the Commitment of Funds:
(1) 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 project 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; and
(2) Within 90 days after the loan closing date, the
Administrator must submit to the Department the original recorded
deed of trust and transfer of lien, if applicable. Failure to submit
these documents within 90 days after the loan closing date will result
in the Department withholding payment for disbursement requests.
(c) Disbursement of funds. The Administrator must comply
with the requirements described in paragraphs (1) - (11) of this subsection,
for a request for disbursement of funds to reimburse eligible costs
incurred. Submission of documentation related to the Administrator
compliance with requirements described in paragraphs (1) - (11) of
this subsection may be required with a request for disbursement:
(1) For construction costs, an interim construction
binder advance endorsement not older than the date of the last disbursement
of funds or 45 days, whichever is later. For release of retainage
a down date endorsement to the mortgagee policy issued to the homebuyer
dated at least 40 days after the Construction Completion Date;
(2) If required or applicable, a maximum of 50 percent
of Direct Activity Costs 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
or Developer;
(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 provided a source of Match or 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
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;
(6) 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 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
or Developer as may be necessary or advisable for compliance with
all Program Requirements;
(7) Table funding requests must be submitted to the
Department with complete documentation no later than 14 days prior
to the anticipated loan closing date. Such a request must include
a draft settlement statement, 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;
(8) 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;
(9) For final disbursement requests, submission of
documentation required for Activity completion reports;
(10) 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
(11) 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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