| (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) - (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 Direct Activity Cost and Soft Cost limitations are not
exceeded, and evidence that any duplication of benefit is addressed;
(3) Verification of environmental clearance from the
Department;
(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 to ensure applicable property
standard requirements will be met at completion;
(7) Identification of any Lead-Based Paint (LBP) if
activity involves an existing unit and certification that LBP will
be mitigated as required by 24 CFR §92.355;
(8) Evidence that the housing unit will be located
outside of the 100-year floodplain;
(9) If applicable, documentation to address or resolve
any potential conflict of interest, Identity of Interest, or duplication
of benefit;
(10) Information necessary to draft Mortgage Loan documents,
including issuance of an SOL;
(11) Life event documentation, as applicable, and all
information necessary to prepare any applicable affidavits such as
marital status and heirship;
(12) Documentation of homebuyer completion of a homebuyer
counseling program/class provided by a HUD certified housing counselor;
(13) For Activities involving acquisition of real property:
(A) A title commitment to issue a title policy that
evidences that the property will transfer with no tax lien, child
support lien, mechanics 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;
(B) Executed sales contract; and
(C) A loan estimate or letter from any other lender
confirming that the loan terms and closing costs will be consistent
with the executed sales contract, the first lien Mortgage Loan requirements,
and the requirements of this Chapter;
(14) For Activities that do not involve acquisition
of real property:
(A) A title commitment or policy, or a down date endorsement
to an existing title policy, and the actual documents, or legible
copies thereof, establishing the Household's ownership, such as a
warranty deed or ground lease for a 99-year leasehold. The effective
date of the title commitment must be no more than 60 days prior to
of the date of project submission. Title commitments for loan projects
that expire prior to the loan closing date must be updated and must
not have any adverse changes. These documents must evidence the definition
of Homeownership is met;
(B) A tax certificate that evidences a current paid
status;
(C) Written consent from all Persons who have a valid
lien or ownership interest in the Property;
(D) Consent to demolish from any existing Mortgage
Loan lien holders and consent to subordinate to the Department's loan,
if applicable; and
(15) Any other documentation necessary to evidence
that the Activity meets the Program requirements.
(b) Loan closing. 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 prior
to the issuance of loan documents by the Department.
(c) Disbursement of funds. The Administrator must comply
with all of the requirements described in paragraphs (1) - (11) of
this subsection, for a request for disbursement of funds to reimburse
eligible costs incurred. Submission of additional documentation related
to the Administrator's compliance with requirements described in paragraphs
(1) - (11) of this subsection, may be required with a request for
disbursement:
(1) For construction costs that are part of a loan
subject to the requirements of this subsection, 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, is required. 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,
are required to be submitted. The inspection must be signed and dated
by the inspector and Administrator;
(4) Certification of the following is required:
(A) That its fiscal control and fund accounting procedures
are adequate to assure the proper disbursal of, and accounting for,
funds provided;
(B) That 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;
(C) That each request for disbursement of HOME funds
is for the actual cost of providing a service; and
(D) That the service does not violate any conflict
of interest provisions;
(5) Original, fully executed, legally enforceable loan
documents for each assisted Household containing remedies adequate
to enforce any applicable affordability requirements are required.
Certified copies of fully executed, recorded loan documents that are
required to be recorded in the real property records of the county
in which the housing unit is located must be returned to the Department,
duly certified as to recordation by the appropriate county official.
This documentation prior to disbursement 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 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;
(7) The request for funds for administrative costs
must be proportionate to the amount of Direct Activity Costs requested
or already disbursed;
(8) Disbursement requests must 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, the following
is required:
(A) Submission of documentation required for Activity
completion reports and evidence that the demolition or, if an MHU,
salvage and disposal of all dilapidated housing units on the lot;
(B) 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; and
(C) A final appraisal of the property after completion
of improvements;
(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 the 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 insurance policies charged
as Activity costs, evidence of payment of the cost must be submitted
with the retainage request.
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