harris county community and economic development department home/addi workshop

Harris CountyHarris CountyCommunity andCommunity and Economic Economic Development DepartmentDevelopment Department

HOME/ADDI WorkshopHOME/ADDI Workshop

Service AreaService Area

Service AreaService Area

Unincorporated Harris County and its 15 cooperative cities.Unincorporated Harris County and its 15 cooperative cities.

BellaireBellaire SeabrookSeabrookDeer Park Deer Park ShoreacresShoreacresGalena Park Galena Park South HoustonSouth HoustonHumble Humble TomballTomballJacinto City Jacinto City WallerWallerKaty Katy WebsterWebsterLaPorte LaPorte West University PlaceWest University PlaceMorgan’s PointMorgan’s Point

Houston, Baytown and Pasadena receive their ownHouston, Baytown and Pasadena receive their owncommunity development funds and are not includedcommunity development funds and are not included

in the Harris County service area.in the Harris County service area.

How it WorksHow it Works

Provides long term goals to improve quality of life for low-income people

Annual update to the Consolidated Plan allocating funds for the program year

Competitive process through which CDBG, ESG and HOME funds are allocated

Describes progress made towards goals set forth in the Consolidated Plan

Implementation and Monitoring

The Consolidated PlanThe Consolidated Plan

Five-year plan that addresses:Five-year plan that addresses: Housing;Housing; Social services;Social services; Infrastructure; andInfrastructure; and Community revitalization Community revitalization

needs. needs. Specifies types of projects to be fundedSpecifies types of projects to be funded

Application for federal funds under HUD’s Application for federal funds under HUD’s formula grant programs:formula grant programs:

CDBG;CDBG; HOME / ADDI; andHOME / ADDI; and ESG.ESG.

Basis for assessing performanceBasis for assessing performance

The Consolidated Plan aids decision The Consolidated Plan aids decision makers in creating strategies to address makers in creating strategies to address

the following.the following.

Employment and employabilityEmployment and employability Affordable housingAffordable housing Adequate streetsAdequate streets Water, sewage and drainage systemsWater, sewage and drainage systems Quality education and Workforce DevelopmentQuality education and Workforce Development Parks and green spaceParks and green space Community facilitiesCommunity facilities Quality health careQuality health care Crime awareness and public safety andCrime awareness and public safety and Safe, peaceful and productive neighborhoods for low- and Safe, peaceful and productive neighborhoods for low- and

moderate-income communitiesmoderate-income communities

Request for Proposals (RFP)Request for Proposals (RFP)

Solicitation and acceptance of proposals Solicitation and acceptance of proposals

According to federal and state procurement According to federal and state procurement laws and standardslaws and standards

Applicants must:Applicants must: Be a non-profit organization or Be a non-profit organization or

governmental agency or entity;governmental agency or entity; Expend funds within a 12-month period;Expend funds within a 12-month period; Have sufficient working capital;Have sufficient working capital; Meet one Consolidated Plan Objective;Meet one Consolidated Plan Objective; Meet one National Objective;Meet one National Objective; Benefit eligible residents in CEDD’s HUD Benefit eligible residents in CEDD’s HUD

Service Area.Service Area.

Used to address objectives identified in Harris Used to address objectives identified in Harris County’s Consolidated PlanCounty’s Consolidated Plan

Annual Action Plan (AAP) Annual Action Plan (AAP)

Detailed description of the Detailed description of the allocations of Harris County allocations of Harris County HUD entitlement dollars HUD entitlement dollars (CDBG, HOME, and ESG).(CDBG, HOME, and ESG).

Discusses how resources Discusses how resources generated by tax dollars will generated by tax dollars will be utilized for the upcoming be utilized for the upcoming program year.program year.

Agencies Receive AllocationsAgencies Receive Allocations

Contracts are developed Contracts are developed between Harris County between Harris County and agencies.and agencies.

Funds are dispersed on a Funds are dispersed on a reimbursement basis.reimbursement basis.

Grants Management staff Grants Management staff monitors all projects.monitors all projects.

Consolidated Annual Performance & Consolidated Annual Performance & Evaluation Report (CAPER)Evaluation Report (CAPER)

Describes progress.Describes progress.

Reports on and reviews Reports on and reviews county’s use of county’s use of Entitlement funds.Entitlement funds.

Benchmark for projects Benchmark for projects to be funded.to be funded.

Allows for self-Allows for self-assessment.assessment.

OverviewOverview

American Dream Downpayment American Dream Downpayment Initiative (ADDI)Initiative (ADDI)

Home Investment Partnerships Home Investment Partnerships (HOME)(HOME)

**Please note, this overview provides general guidelines and regulations **Please note, this overview provides general guidelines and regulations as issued by HUD**as issued by HUD**

Purpose – Purpose – ADDIADDI

To increase the homeownership rate, To increase the homeownership rate, especially among: especially among:

Lower income; and Lower income; and Minority households.Minority households.

To revitalize and stabilize communitiesTo revitalize and stabilize communities

Purpose - Purpose - HOMEHOME

To expand the supply of:To expand the supply of: Decent, affordable housing;Decent, affordable housing; Nonprofit housing providers.Nonprofit housing providers.

To strengthen:To strengthen: Ability of state and local governments to Ability of state and local governments to

provide housing;provide housing; Public-private partnerships.Public-private partnerships.

Eligible ApplicantsEligible Applicants

For-profit developersFor-profit developers Non-profit housing providersNon-profit housing providers Community Housing Development Community Housing Development

Organizations (CHDOs)Organizations (CHDOs) Redevelopment organizationsRedevelopment organizations Public Housing Authorities (PHAs)Public Housing Authorities (PHAs)

Eligible ActivitiesEligible Activities

Homebuyer Activities - HOME and ADDIHomebuyer Activities - HOME and ADDI Homeowner Rehabilitation - HOMEHomeowner Rehabilitation - HOME Rental Housing (New Construction or Rental Housing (New Construction or

Rehabilitation) - HOMERehabilitation) - HOME Tenant-Based Rental Assistance (TBRA) Tenant-Based Rental Assistance (TBRA)

- HOME- HOME

DefinitionsDefinitions

Income limitsIncome limits Match, Eligible forms of matchMatch, Eligible forms of match Long-term affordabilityLong-term affordability Hard costsHard costs Soft costsSoft costs

Income LimitsIncome Limits

HOME funds must assist people earning HOME funds must assist people earning <=80% of the median family income (MFI). <=80% of the median family income (MFI).

PY2005 MFI: $61,000 for a 4 person PY2005 MFI: $61,000 for a 4 person household.household.

PY2005 Income Limits are in your packetPY2005 Income Limits are in your packet

MatchMatch

25% of the total HOME funds25% of the total HOME funds Permanent contribution to affordable Permanent contribution to affordable

housing. It is housing. It is notnot leveraging. leveraging. Match is not required for:Match is not required for:

Administrative funds;Administrative funds; CHDO operating expenses; or CHDO operating expenses; or ADDI funds.ADDI funds.

Cash or cash equivalents from non-federal Cash or cash equivalents from non-federal sources.sources.

Value of waived taxes, fees or charges Value of waived taxes, fees or charges associated with the HOME project.associated with the HOME project.

Value of donated land or real property.Value of donated land or real property. Cost of infrastructure improvements Cost of infrastructure improvements

associated with the HOME project.associated with the HOME project. A percentage of the proceeds of single- or A percentage of the proceeds of single- or

multi-family housing bonds issued by state, multi-family housing bonds issued by state, or local government.or local government.

Eligible Forms of MatchEligible Forms of Match

Sweat equitySweat equity $10/hour for unskilled labor$10/hour for unskilled labor Regular rate for skilled professionalsRegular rate for skilled professionals Must be part of regular program, not only for the specific Must be part of regular program, not only for the specific

projectproject Direct costs of supportive services to residents of HOME Direct costs of supportive services to residents of HOME

projectsprojects Direct cost of homebuyer counseling to families purchasing Direct cost of homebuyer counseling to families purchasing

homes with HOME assistance.homes with HOME assistance.

Eligible Forms of MatchEligible Forms of Matchcon’t.con’t.

To ensure affordable housing over the long To ensure affordable housing over the long

term, HOME imposes:term, HOME imposes:

Rent requirements; andRent requirements; and Occupancy requirements.Occupancy requirements.

The length of the affordability period depends The length of the affordability period depends on:on:

The amount of the HOME investment; and The amount of the HOME investment; and The nature of the activity.The nature of the activity.

Long Term AffordabilityLong Term Affordability

20 years20 yearsAny $ amountAny $ amountNew Construction or New Construction or Acquisition of Rental Acquisition of Rental

HousingHousing

15 years15 yearsAny $ amountAny $ amountRefinance of Refinance of Rehabilitation ProjectRehabilitation Project

5 years5 years

10 years10 years

15 years15 years

<$15,000/unit<$15,000/unit

$15,000-$40,000/unit$15,000-$40,000/unit

>$40,000>$40,000

Rehab or Acquisition Rehab or Acquisition of Existing Housingof Existing Housing

MINIMUM MINIMUM AFFORDABILITY AFFORDABILITY

PERIODPERIODAVG. PER-UNIT HOME $AVG. PER-UNIT HOME $ACTIVITYACTIVITY

Long-Term AffordabilityLong-Term Affordability

Acquisition of land (for a specific Acquisition of land (for a specific project)project)

Site preparations or improvements, Site preparations or improvements, including demolitionincluding demolition

Securing of buildingsSecuring of buildings

Construction materials and laborConstruction materials and labor

Hard CostsHard Costs

Financing feesFinancing fees Legal and accounting fees, including cost Legal and accounting fees, including cost certificationcertification AppraisalsAppraisals Architectural/engineering feesArchitectural/engineering fees Environmental reviewsEnvironmental reviews Builders’ or developers’ feesBuilders’ or developers’ fees Affirmative marketing, initial leasing andAffirmative marketing, initial leasing and marketing costsmarketing costs

Soft CostsSoft Costs

Homebuyer ActivitiesHomebuyer Activities

ADDI funds may be used for:ADDI funds may be used for:

Downpayment;Downpayment; Closing costs; andClosing costs; and Rehabilitation in conjunctionRehabilitation in conjunction with home purchase.with home purchase.


Eligible ActivitiesEligible Activities - ADDI - ADDI


Available to Available to first-time homebuyers first-time homebuyers onlyonly First-time homebuyersFirst-time homebuyers have not owned have not owned a home for three-years prior to a home for three-years prior to purchase purchase of a home with ADDI of a home with ADDI assistance.assistance. The amount of assistance is the greater The amount of assistance is the greater of:of:

$10,000; or$10,000; or 6% of the purchase price of the 6% of the purchase price of the home.home.


Types of AssistanceTypes of Assistance - ADDI - ADDI

Acquisition costsAcquisition costs Related reasonable and necessary Related reasonable and necessary

soft costssoft costs Development hard costs for related Development hard costs for related

rehabilitation.rehabilitation. (Including cost of reduction of lead (Including cost of reduction of lead paint hazards and the remediation of other home health paint hazards and the remediation of other home health hazards.)hazards.)

Eligible Costs - Eligible Costs - ADDIADDI Homebuyer ActivitiesHomebuyer Activities

Eligible Properties - Eligible Properties - ADDIADDI

Eligible property types include:Eligible property types include:

Single-family home;Single-family home; Two-to-four family home; andTwo-to-four family home; and Condominium unit.Condominium unit.


HOME funds can be used for:HOME funds can be used for: AcquisitionAcquisition RehabilitationRehabilitation New constructionNew construction Lease-purchase if conveyed within:Lease-purchase if conveyed within:

36 months of signing; 36 months of signing; oror 42 months of project42 months of project implementation.implementation.

Eligible Activities - Eligible Activities - HOMEHOMEHomebuyer ActivitiesHomebuyer Activities

Eligible Activities - Eligible Activities - HOMEHOME (cont’d)(cont’d)

Conversion of HOME rental units to Conversion of HOME rental units to homeowner unitshomeowner units If additional HOME funds --> If additional HOME funds -->

affordability period is set by amount affordability period is set by amount of direct assistanceof direct assistance

If no additional funds --> minimum If no additional funds --> minimum affordability of original rental unitsaffordability of original rental units


Eligible Costs - Eligible Costs - HOMEHOME

Hard CostsHard Costs AcquisitionAcquisition Site preparation or demolitionSite preparation or demolition ConstructionConstruction

Soft CostsSoft Costs Fees andFees and AppraisalsAppraisals Homebuyer Homebuyer CounselingCounseling

Relocation CostsRelocation Costs


Eligible Properties - Eligible Properties - HOMEHOME

Eligible property types include:Eligible property types include:

Single-family home;Single-family home; Two-to-four family home; andTwo-to-four family home; and Condominium unit.Condominium unit.


Maximum Property Value – Maximum Property Value – ADDI and HOMEADDI and HOME

Two things need to be <95% of the Two things need to be <95% of the median area purchase price*:median area purchase price*: After – rehab value of the property;After – rehab value of the property; Acquisition only purchase price; orAcquisition only purchase price; or

Harris CountyHarris County has set the maximum has set the maximum purchase price at $115,000.purchase price at $115,000.

*$138,110*$138,110


Property StandardsProperty StandardsAcquisitionAcquisition

Must meet state/local housing standards Must meet state/local housing standards and codesand codes If no state/local standards, then Section 8 If no state/local standards, then Section 8

HQS appliesHQS applies House must be inspectedHouse must be inspected House must meet standards at time of House must meet standards at time of

occupancyoccupancy


Property StandardsProperty StandardsAcquisition and RehabAcquisition and Rehab

Properties must:Properties must: Meet written rehab standards, Meet written rehab standards, and and Meet state/local code/standardsMeet state/local code/standards

If no state/local code, meet a national codeIf no state/local code, meet a national code

Be inspected prior to occupancyBe inspected prior to occupancy Present no health and safety defectsPresent no health and safety defects Meet applicable codes: Meet applicable codes:

At project completion; At project completion; andand Within 2 years of transfer.Within 2 years of transfer.


Property StandardsProperty StandardsNew ConstructionNew Construction

Properties must:Properties must: Meet state/local code and Meet state/local code and

standards;standards; If no state/local code, meet a national If no state/local code, meet a national

code; andcode; and Also meet Model Energy Code.Also meet Model Energy Code.


The Applicant*The Applicant*

Occupy property as principal residence for a Occupy property as principal residence for a minimumminimum of five years of five years

Must meet eligible low income requirementsMust meet eligible low income requirements At purchase for existing housingAt purchase for existing housing At contract signature for new constructionAt contract signature for new construction At signing of lease-purchase agreementAt signing of lease-purchase agreement

*Applicant = individual or beneficiary*Applicant = individual or beneficiary


Income EligibilityIncome Eligibility

PJs can use one of the three income definitions to PJs can use one of the three income definitions to determine annual income:determine annual income: Annual Gross Income under Part 5Annual Gross Income under Part 5 Census Long FormCensus Long Form IRS Form 1040 adjusted gross income*IRS Form 1040 adjusted gross income*

Review source documentsReview source documentsProject income for next 12 monthsProject income for next 12 months

Income verification is good for six months.Income verification is good for six months.*For more information – www.hud.gov*For more information – www.hud.gov


Recapture ProvisionsRecapture Provisions

Recapture most like a conventional loan Recapture most like a conventional loan Buyer pays back direct subsidyBuyer pays back direct subsidy Direct subsidy is:Direct subsidy is:

Assistance that reduced purchase price Assistance that reduced purchase price from fair market value; from fair market value; andand

Direct assistance to the homebuyer Direct assistance to the homebuyer (ex: (ex: downpayment or closing cost assistance).downpayment or closing cost assistance).

May sell to any willing buyerMay sell to any willing buyer


Recapture ProvisionsRecapture Provisions (continued)(continued)

Recapture all or part of subsidyRecapture all or part of subsidy

Development subsidies NOT subject Development subsidies NOT subject to recaptureto recapture

Use resale provisions when:Use resale provisions when: Development subsidy only; orDevelopment subsidy only; or No $ subject to recapture. No $ subject to recapture.


Other Federal RequirementsOther Federal Requirements

Other Federal requirements may apply:Other Federal requirements may apply:

Fair Housing and equal opportunity;Fair Housing and equal opportunity; Affirmative marketing;Affirmative marketing; Davis-Bacon labor standards;Davis-Bacon labor standards; Flood insurance;Flood insurance; Relocation; andRelocation; and Lead-based paint.Lead-based paint.


Homeowner Rehabilitation Homeowner Rehabilitation ActivitiesActivities

Homeowner Rehabilitation ActivitiesHomeowner Rehabilitation Activities

Eligible ActivitiesEligible Activities

Assists owner-occupants with:Assists owner-occupants with:

RepairsRepairs RehabilitationRehabilitation ReconstructionReconstruction


Special Purpose Homeowner RepairsSpecial Purpose Homeowner Repairs

Ineligible IF the property does not Ineligible IF the property does not meet minimum property standards meet minimum property standards upon completion:upon completion:

Weatherization;Weatherization; Emergency repair; andEmergency repair; and Handicapped accessibility.Handicapped accessibility.


Forms of AssistanceForms of Assistance

Most common:Most common:

GrantsGrants Deferred payment loansDeferred payment loans Interest or non-interest bearing loansInterest or non-interest bearing loans

Can also use:Can also use: Loan guaranteesLoan guarantees Interest subsidiesInterest subsidies Other forms approved by HUDOther forms approved by HUD


Eligible CostsEligible Costs

Hard Costs:Hard Costs: Actual rehabActual rehab Accessibility improvementsAccessibility improvements Utility connectionsUtility connections

Soft CostsSoft Costs

Relocation Costs Relocation Costs


Eligible Property TypesEligible Property Types

To be eligible, housing must be:To be eligible, housing must be: Occupied by income-eligible familyOccupied by income-eligible family The owners’ principal residenceThe owners’ principal residence

Types of eligible housing include:Types of eligible housing include: Single family housing;Single family housing; Condo unit;Condo unit; Co-op or mutual housing unit if Co-op or mutual housing unit if recognized by state law.recognized by state law.


Maximum Property ValueMaximum Property Value

The value The value after rehabilitationafter rehabilitation <95% of median purchase price <95% of median purchase price for the area. for the area. ($138,110)($138,110)

In In Harris CountyHarris County, the value , the value must not exceed $115,000.must not exceed $115,000.


Property StandardsProperty Standards

All rehab projects must meet standards All rehab projects must meet standards and state/local codesand state/local codes If no local code exists either:If no local code exists either:

Uniform Building Code, National Uniform Building Code, National Building Code;Building Code;

Standard Building Code;Standard Building Code;

CABO One to Two Family code; orCABO One to Two Family code; or

FHA Minimum Property Standards.FHA Minimum Property Standards.


Applicant EligibilityApplicant Eligibility

Homeowners must:Homeowners must:

Be low-income; andBe low-income; and

Occupy the property as their Occupy the property as their principal residence. principal residence.


Determining IncomeDetermining Income

Use one of the three definitions:Use one of the three definitions:

Annual Gross Income under part 5Annual Gross Income under part 5 Census long formCensus long form IRS form 1040 adjusted gross incomeIRS form 1040 adjusted gross income

Document the incomeDocument the income

Complete documentation and qualification Complete documentation and qualification before assistancebefore assistance


Definition of OwnershipDefinition of Ownership

Fee simple titleFee simple title 99-year leasehold interest99-year leasehold interest Ownership in condominiumOwnership in condominium Ownership/membership in a co-op Ownership/membership in a co-op

or mutual housing projector mutual housing project Other HUD approved formOther HUD approved form


Long-Term AffordabilityLong-Term Affordability

No long-term affordability or No long-term affordability or occupancy requirements occupancy requirements



Other Federal requirements mayOther Federal requirements mayapply:apply:

Employment/contracting;Employment/contracting; Environmental reviews;Environmental reviews; Flood insurance;Flood insurance; Relocation; andRelocation; and Lead-based paint.Lead-based paint.

Rental Housing ActivitiesRental Housing Activities


HOME funds may be used for:HOME funds may be used for: Acquisition;Acquisition; New construction; orNew construction; or Rehabilitation of affordable Rehabilitation of affordable

rental housing. rental housing.

The developers or owners of the rental The developers or owners of the rental

housing may be:housing may be: Small-scale property owners;Small-scale property owners; For-profit developers;For-profit developers; Nonprofit housing providers;Nonprofit housing providers; CHDOs;CHDOs; Local government;Local government; Redevelopment organizations; orRedevelopment organizations; or Public housing authorities.Public housing authorities.


Hard CostsHard Costs Soft CostsSoft Costs


Eligible Rental Housing CostsEligible Rental Housing Costs


Maximum HOME InvestmentMaximum HOME Investment

Maximum amount of HOME funds to be expended Maximum amount of HOME funds to be expended per unit based on unit size per unit based on unit size (one bedroom, two bedrooms, (one bedroom, two bedrooms, etc.)etc.)

ExampleExampleA six-unit structure will be rehabilitated with HOME A six-unit structure will be rehabilitated with HOME funds. The maximum per-unit HOME subsidy is funds. The maximum per-unit HOME subsidy is $40,000. Thus, the HOME subsidy for this project $40,000. Thus, the HOME subsidy for this project cannot exceed $240,000 (6 X $40,000).cannot exceed $240,000 (6 X $40,000).


HOME-Assisted UnitsHOME-Assisted Units

HOME distinguishes between the HOME HOME distinguishes between the HOME assisted units and non assisted units.assisted units and non assisted units.

The HOME rent and occupancy rules The HOME rent and occupancy rules apply only to HOME-assisted units.apply only to HOME-assisted units.

The number of HOME-assisted units must The number of HOME-assisted units must be specified at project commitment.be specified at project commitment.



ExampleExample

Great Housing, Inc. is considering a request for HOME Great Housing, Inc. is considering a request for HOME funds for a 20-unit building. The HOME-eligible funds for a 20-unit building. The HOME-eligible development costs total $400,000, and the developer development costs total $400,000, and the developer has requested $100,000 in HOME funds. Since the has requested $100,000 in HOME funds. Since the request equals 25% of the total eligible costs, Great request equals 25% of the total eligible costs, Great Housing, Inc. must require the project to have at least Housing, Inc. must require the project to have at least five HOME-assisted units.five HOME-assisted units.

(20 x 25% = 5)(20 x 25% = 5)



Properties with both assisted and non-Properties with both assisted and non-assisted units, must designate either:assisted units, must designate either:

Fixed unitsFixed units – Same units are HOME – Same units are HOME assisted throughout affordability period. assisted throughout affordability period.

Floating unitsFloating units – Always have same # of – Always have same # of HOME Assisted units, but, units may HOME Assisted units, but, units may change over time. change over time.


Eligible Property TypesEligible Property Types

HOME rental projects may be:HOME rental projects may be:

One or more buildings on a single One or more buildings on a single site; or site; or

Multiple sites that are under common Multiple sites that are under common ownership, management or financing.ownership, management or financing.

5+ HOME-assisted units, 20% of the HOME-5+ HOME-assisted units, 20% of the HOME-assisted units must be occupied by families assisted units must be occupied by families who earn <=50% of the median income. who earn <=50% of the median income. (Median (Median Family Incomes are in your packet.)Family Incomes are in your packet.)

HOME-assisted units are subject to rent limits. HOME-assisted units are subject to rent limits. These maximum rents are referred to as These maximum rents are referred to as “HOME rents.”“HOME rents.”

HUD publishes the rent schedule each year. HUD publishes the rent schedule each year. (www.hud.gov)(www.hud.gov)


Rent and Occupancy RequirementsRent and Occupancy Requirements


Rent and Occupancy Requirements Rent and Occupancy Requirements (cont’d)(cont’d)

Two HOME rents are used.Two HOME rents are used.

High HOME Rents are the High HOME Rents are the lesser lesser of:of: The Section 8 Fair Market Rents (FMRs) for The Section 8 Fair Market Rents (FMRs) for

existing housing; orexisting housing; or 30% of the adjusted income of a family 30% of the adjusted income of a family

whose income equals 65% of median whose income equals 65% of median income.income.

Low HOME RentsLow HOME Rents 5+ HOME-assisted units, 20% of HOME-5+ HOME-assisted units, 20% of HOME-

assisted units must have rents no greater assisted units must have rents no greater than:than: 30% of the 30% of the tenant’stenant’s monthly adjusted monthly adjusted

income, ORincome, OR 30% of the annual income of a family 30% of the annual income of a family

whose income is 50% of the median whose income is 50% of the median income.income.



High HOME Rents for Harris County High HOME Rents for Harris County

(Fair Market Rents*)(Fair Market Rents*)



$1093$1093$997$997$768$768$633$633$569$569

4 BR4 BR3 BR3 BR2 BR2 BR1 BR1 BR0 BR0 BR

* Source: U.S. Department of Housing and Urban Development, March 2007.* Source: U.S. Department of Housing and Urban Development, March 2007.

On-site inspections are performed to verify: On-site inspections are performed to verify: Compliance with property standards;Compliance with property standards; Tenants’ incomes; Tenants’ incomes; Rents; andRents; and HOME rental requirements during the HOME rental requirements during the

affordability period.affordability period.

Annually Annually 26 or more26 or more

Every 2 yearsEvery 2 years5 – 255 – 25

Every 3 yearsEvery 3 years1 – 41 – 4

Inspection RequiredInspection RequiredTotal Number of UnitsTotal Number of Units


InspectionsInspections



Other Federal requirements may apply:Other Federal requirements may apply:

Employment/contracting;Employment/contracting; Environmental reviews;Environmental reviews; Flood insurance;Flood insurance; Relocation;Relocation; Lead-based paint;Lead-based paint; Site and neighborhood standards. Site and neighborhood standards.


Site and Neighborhood StandardsSite and Neighborhood Standards

All new construction projects must meet certain site and All new construction projects must meet certain site and neighborhood standards*neighborhood standards*

Examples of these standards include:Examples of these standards include:

Amenities available in HOME-assisted units;Amenities available in HOME-assisted units; Proximity to public facilities, schools, etc.;Proximity to public facilities, schools, etc.; Location outside of an area of minority concentration;Location outside of an area of minority concentration; Location outside of areas with high concentration of Location outside of areas with high concentration of

LIHTC (tax credit) or other assisted housing projects;LIHTC (tax credit) or other assisted housing projects; Availability of transportation services;Availability of transportation services; Size of project adequate to accommodate the number Size of project adequate to accommodate the number

and type of units proposed.and type of units proposed.*In accordance to HUD regulations *In accordance to HUD regulations (24 CFR 983.6)(24 CFR 983.6)

Tenant-Based Rental Tenant-Based Rental Assistance (TBRA)Assistance (TBRA)

What is TBRA?What is TBRA?

TBRA is a rental subsidy to help households TBRA is a rental subsidy to help households afford housing costs such as:afford housing costs such as:

Rent;Rent; Utility costs;Utility costs; Security deposits; andSecurity deposits; and Utility deposits.Utility deposits.

Provided to very low- and low-income families. Provided to very low- and low-income families. Households are subject to income Households are subject to income recertification annually.recertification annually.

Tenant-Based Rental AssistanceTenant-Based Rental Assistance

TBRA:TBRA:

Helps individual households.Helps individual households. (Rather than (Rather than subsidizing particular rental projects)subsidizing particular rental projects)

Moves with the tenantMoves with the tenant. . (Household can take (Household can take TBRA and move to another property)TBRA and move to another property)

Subsidy levels are varied.Subsidy levels are varied. (Based on (Based on household income and the unit the household household income and the unit the household selects)selects)

Tenant Based Rental AssistanceTenant Based Rental Assistance

Eligible ApplicantsEligible Applicants

Tenants who are <=80% of area Tenants who are <=80% of area median income.median income.

90% of the TBRA assisted families 90% of the TBRA assisted families and the HOME-assisted households and the HOME-assisted households must be <=60% of area median must be <=60% of area median income.income.


Minimum and Maximum PaymentMinimum and Maximum Payment

Minimum tenant paymentMinimum tenant payment - - Jurisdictions set Jurisdictions set minimum payment levels for the tenants.minimum payment levels for the tenants.

Maximum TBRA paymentMaximum TBRA payment – – Difference Difference between 30% of the household’s adjusted between 30% of the household’s adjusted monthly income and the Fair Market Rent. monthly income and the Fair Market Rent.


Property StandardsProperty Standards

Inspections:Inspections: Verify compliance with Housing Quality Standards (HQS) Verify compliance with Housing Quality Standards (HQS) Verify Occupancy standards Verify Occupancy standards Are completed at initial move-in and annually during the TBRA.Are completed at initial move-in and annually during the TBRA.

CHDOCHDO

Community Housing Community Housing Development OrganizationDevelopment Organization

A Community Housing Development A Community Housing Development Organization (CHDO) is a private nonprofit, Organization (CHDO) is a private nonprofit,

community-based service organization community-based service organization that has obtained or intends to obtain staff that has obtained or intends to obtain staff

with the capacity to develop affordable with the capacity to develop affordable housing for the community it serves.housing for the community it serves.

What is a CHDO?What is a CHDO?

CHDO Set-AsideCHDO Set-Aside

15% of the HOME allocation must 15% of the HOME allocation must go to housing owned, developed, or go to housing owned, developed, or sponsored by CHDOssponsored by CHDOs

Jurisdictions have 24 months to Jurisdictions have 24 months to reserve funds for CHDOsreserve funds for CHDOs

CHDO Qualifying CriteriaCHDO Qualifying Criteria

CHDOs must meet requirements pertaining to CHDOs must meet requirements pertaining to their:their:

Legal StatusLegal Status Organizational structureOrganizational structure Capacity and experienceCapacity and experience

CHDOCHDO

Legal StatusLegal Status

To be eligible, organizations must:To be eligible, organizations must: Be organized under state and local law;Be organized under state and local law; Have as its purpose to provide decent and Have as its purpose to provide decent and

affordable housing to low/mod income persons;affordable housing to low/mod income persons; Provide no individual benefit;Provide no individual benefit; Have a clearly defined service area; andHave a clearly defined service area; and Have an IRS non-profit status.Have an IRS non-profit status.

CHDOCHDO

Organizational StructureOrganizational Structure

1/3 of the board members must be 1/3 of the board members must be from the low-income communityfrom the low-income community

No more than 1/3 board members can No more than 1/3 board members can be from the public sectorbe from the public sector

Balance is unrestricted except when Balance is unrestricted except when sponsored/organized by a for-profitsponsored/organized by a for-profit

Free Legal Advice to CHDOsFree Legal Advice to CHDOs

Francis MartinezFrancis MartinezStaff AttorneyStaff AttorneyTexas C-BarTexas C-Bar

712 Main St., Ste. 2700712 Main St., Ste. 2700Houston, Texas 77002Houston, Texas 77002

Ph: (713) 228-0735 ext. 153 or Ph: (713) 228-0735 ext. 153 or (800) 369-9270 ext.2710(800) 369-9270 ext.2710

Fax: (512) 447-3940 Fax: (512) 447-3940

For Harris County CHDO certification For Harris County CHDO certification information, contact:information, contact:

Lori Wilson-ReynoldsLori Wilson-Reynolds

Program AnalystProgram Analyst

(713) 578-2000, ext. 2108(713) 578-2000, ext. 2108

[email protected][email protected]

Recordkeeping and MonitoringRecordkeeping and Monitoring

Recordkeeping & MonitoringRecordkeeping & Monitoring

OverviewOverview

General recordkeeping requirementsGeneral recordkeeping requirements Access to recordsAccess to records Retention of recordsRetention of records MonitoringMonitoring Reporting requirements Reporting requirements

General Recordkeeping General Recordkeeping RequirementsRequirements

Records should be: Records should be:

Accurate, complete, orderly; andAccurate, complete, orderly; and

Maintained in order to:Maintained in order to: Document all HOME funded activities; and Document all HOME funded activities; and Demonstrate compliance with all applicable Demonstrate compliance with all applicable

program and other requirements.*program and other requirements.*

* * According to U.S. Department of Housing and Urban Development Department (HUD) 24 CFR Part According to U.S. Department of Housing and Urban Development Department (HUD) 24 CFR Part 570 and Part 570.208. 570 and Part 570.208.

General Recordkeeping RequirementsGeneral Recordkeeping Requirements

Every organization funded with HOME/ADDI Every organization funded with HOME/ADDI funds is required to establish and maintain funds is required to establish and maintain the following:the following:

Program Records;Program Records; Administrative Records;Administrative Records; Financial Records; andFinancial Records; and Project Files.Project Files.

Access to RecordsAccess to Records

Records are used to create audits, Records are used to create audits, examinations, excerpts and transcripts. The examinations, excerpts and transcripts. The following have access to records of HOME following have access to records of HOME funded organizations:funded organizations:

HCCEDD representatives;HCCEDD representatives; HUD representatives;HUD representatives; Comptroller General’s Office of the United Comptroller General’s Office of the United

States;States; Other authorized governmental agencies;Other authorized governmental agencies; Citizens (24 CFR 570.508).Citizens (24 CFR 570.508).

Retention of RecordsRetention of Records

Retain records after annual project Retain records after annual project activities have been completed to avoid activities have been completed to avoid findings.findings.

Retain records for five years from the Retain records for five years from the date of submission of the CAPER in date of submission of the CAPER in which activity is reported for the last which activity is reported for the last time. time.

For all organizations (per 24 CFR 570.502(b)(3), 24 CFR 85.42, and OMB For all organizations (per 24 CFR 570.502(b)(3), 24 CFR 85.42, and OMB

Circular A-110, Attachment C)Circular A-110, Attachment C)

MonitoringMonitoring

The primary mission of monitoring is to ensure The primary mission of monitoring is to ensure that organizations are:that organizations are:

In compliance with all regulations In compliance with all regulations governing their administrative, financial, governing their administrative, financial, and programmatic operations; and and programmatic operations; and

Achieving their performance objectives Achieving their performance objectives within the schedule and budget, as outlined within the schedule and budget, as outlined in the Agreement.in the Agreement.

MonitoringMonitoring

Five steps in a monitoring visitFive steps in a monitoring visit

Notification letterNotification letter

Entrance conferenceEntrance conference

Documentation, data acquisition and analysisDocumentation, data acquisition and analysis

Exit conferenceExit conference

Monitoring letterMonitoring letter

Reporting RequirementsReporting Requirements

Reporting requirements are specified by the Reporting requirements are specified by the Grantee (HCCEDD) in the Subrecipient Grantee (HCCEDD) in the Subrecipient Agreement*. Agreement*.

Programmatic and Financial Reimbursement Programmatic and Financial Reimbursement Request Reports are due monthly.Request Reports are due monthly.

Quarterly and Annual reports may also apply. Quarterly and Annual reports may also apply.

* 24 CFR 570.503(b)(2) * 24 CFR 570.503(b)(2)

Questions Questions And And

AnswersAnswers

Questions?Questions?

Contact:Contact:Shanna LeBrumShanna LeBrumProgram AnalystProgram Analyst

(713) 578-2000, ext. 2051(713) 578-2000, ext. [email protected][email protected]

Or visit our website at:Or visit our website at:www.cedd.hctx.netwww.cedd.hctx.net

harris county community and economic development department home/addi workshop

Documents

performance slide

service area slide

harris county community

consolidated plan objective

unincorporated harris

harris county service

community development

purpose home purpose