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(continued)
6. Describe how your program defines success in the Job Training and Employment program and to what extent your program has been successful. Provide case histories to illustrate success.
7. Describe which employment service componentns most contributed to your successes and which need to be changed, modified, and/or improved.
8. Describe the problems in establishing, implementing and/or operating the job training program. How were these problems resolved?
9. What recommendations could be made to project sponsors to coordinate or set up a similar employment program?
XVIII. JOB TRAINING AND EMPLOYMENT REPORT (Cont'd)
PROGRAM INFORMATION CHART
FISCAL YEAR
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Contract Number: Prepared by:
Development Name:
Name:
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Component Organization Average No. of Average Funding
Name Address PHDP Value of Source
and Phone Residents Service
No. Participating per FHDP
Providing For Month Resident
Services
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Individual
Vocational
Assessment
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Pre-Employment
Training
(including
remedial ed,
ESL,GED)
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Employment
Training
(including job
interview
skills, job
skills)
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Employment
Placement
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Other (Specify)
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Other (Specify)
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1...+...10....+...20....+...30....+...40....+...50....+...60....+...70...
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Title
------------
Average No.
of FHDP
Residents
on
Waiting
List
------------
------------
------------
------------
------------
------------
------------
74...80....+
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assemble a printout of the table. The information for each piece includes: (1)
a three line message preceding the tabular data showing by line # and
character # the position of the upper left-hand corner of the piece and the
position of the piece within the entire table; and (2) a numeric scale
following the tabular data displaying the character positions.]
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Prepared by Name Title
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Type of Name/ Cost of Value No. of No. of FHDP
Supportive Address/ FHDP Households
Phone
Service of Organiza- Service of Households
Offered tion
Providing (to sponsor Service Partic- Participate
Service ipat-
ing
and/or (Waiti- on a monthly
household) ng Basis
List)
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---------------------------
Average
No of
Non-
Unable to FHDP
Households
Particip-
ating
---------------------------
---------------------------
---------------------------
---------------------------
72.....80....+...90....+...
Note: Authority cited: Sections 50406(n), 50884 and 50895, Health and Safety Code. Reference: Section 50893.7, Health and Safety Code.
s 8139. Operating Budget.
(a) Prior to loan closing, the sponsor shall provide the department an initial operating budget for its approval. Such budget shall show all anticipated income, expenses for management, operations, and maintenance, debt service and reserve deposits for the initial operating year.
(b) Sixty days prior to the end of each current fiscal year of each project the sponsor shall submit to the department for its approval a proposed operating budget, including an accounting of the housing component, supportive service component, and job training and placement program.
(1) The proposed operating budget shall set forth the sponsor's estimate of the operating income, operating expenses, and debt service for the upcoming year associated with the housing component, and any proposed rent increases pursuant to section 8122.
(2) The proposed operating budget for the supportive service component shall set forth sponsor's estimate of the operating income and expenses for the upcoming year associated with the provision of supportive services.
(3) The proposed operating budget for job training and placement programs shall set forth the sponsor's estimate of the operating income and expenses for the upcoming year associated with the provision of such programs.
(c) The Department's approval of the initial and subsequent proposed operating budgets shall be based on its determination that the budget line items are reasonable and necessary in light of costs for comparable rental housing developments and prior operating budgets for the rental housing development. Actual expenditures or withdrawals from reserve funds in excess of the approved budget amount shall be subject to prior written approval of the department.
(d) The initial operating budget and subsequent proposed operating budgets shall include periodic deposits, on no less than an annual basis, to:
(1) a replacement reserve account for capital improvements, such as replacing structural elements, furniture, fixtures, or equipment of the rental housing development, which are reasonably required to preserve the project; and
(2) an operating reserve account in an amount sufficient to offset potential shortfalls in operating the housing component and the required supportive services and the job training and placement programs.
(e) Upon initial occupancy, the amount in the operating reserve account shall be at least 2 percent of total project development costs and the replacement reserve shall be at least one percent of the total project development costs.
(f) For projects with a child care center, nonassisted units, or commercial space, all budgets submitted pursuant to this section shall show income and uses of income allocated among assisted units, nonassisted units, the child care center, and commercial space. The allocation method used for each budget line item shall be subject to department approval and shall apportion income and expenses in a manner that accurately reflects the particular physical, operational and economic characteristics of the project.
Note: Authority cited: Sections 50406(n), 50884 and 50895, Health and Safety Code. Reference: Section 50893.7(i), Health and Safety Code.
s 8140. Emergency Reserve Subaccount.
(a) The department shall establish an emergency reserve subaccount in the Account. Three (3) percent of any allocation made to the Account pursuant to Health and Safety Code section 53130(a) shall be deposited into the emergency reserve subaccount. Excess funds returned to the department pursuant to section 8123(h) and 8117(e)(2)(B) shall be deposited into the emergency reserve subaccount to first, replace the allocated funds in the subaccount on a dollar-for-dollar basis and then to replenish the emergency reserve subaccount. Excess funds received which cause the emergency reserve subaccount to exceed three percent of all allocations to the Account shall transfer to the Account and become available for loans pursuant to this subchapter.
(b) The department shall maintain a default reserve subaccount, as a portion of the emergency reserve subaccount, in an amount equal to 2 percent of all allocations to the Account pursuant to Health and Safety Code section 53130(a) for the purpose of avoiding or curing defaults pursuant to section 8136(e).
(c) When funds in the emergency reserve subaccount exceed the 2 percent required to be maintained pursuant to subdivision (b), the department shall be authorized to advance funds from the emergency reserve subaccount to defray unanticipated cost increases or revenue shortfalls to the extent necessary to preserve fiscal integrity of any project and to maintain rents in accordance with program requirements. All funds so advanced shall be part of the program loan to the sponsor and subject to the same interest rate and terms of repayment.
Note: Authority cited: Sections 50406(n), 50884 and 50895, Health and Safety Code. Reference: Sections 50883.5(b) and 53130, Health and Safety Code.
s 8141. Feasibility Subaccount.
(a) The department shall establish a feasibility subaccount in the Account. Four (4) percent of any allocation made to the Account pursuant to Health and Safety Code section 53130(a) shall be deposited into the feasibility subaccount. Excess funds returned to the department pursuant to section 8123(h) and 8117(e)(2)(B) shall be deposited into the feasibility subaccount to first replace the allocated funds in the subaccount on a dollar-for-dollar basis and then to replenish the feasibility subaccount. Excess funds received which cause the subaccount to exceed four percent of all allocations to the Account shall transfer to the Account and become available for loans pursuant to this subchapter.
(b) To the extent necessary to assure or preserve fiscal integrity and to establish or maintain rents in accordance with program requirements, the department shall be authorized to advance funds from the feasibility subaccount when necessary:
(1) to defray unforeseeable construction cost increases prior to the completion of construction; or
(2) to defray unforeseeable capital expenses at any time during the term of the loan.
(c) All funds advanced pursuant to subdivision (b) shall be part of the program loan to the sponsor and subject to the same interest rate and terms of repayment.
(d) Upon determination that another percentage is more appropriate based on the actual demand on the subaccount by program sponsors, the department shall alter the percentage of the allocation that is required to be maintained in the subaccount in order to meet the actual demand.
(1) Such a determination will occur either at the time of a new allocation to the Account or during the annual review of the subaccount.
(2) The percentage of all allocations to the Account that shall be maintained in this subaccount shall not be adjusted to exceed ten percent.
Note: Authority cited: Sections 50406(n), 50884 and 50895, Health and Safety Code. Reference: Sections 50883.5(a) and 53130, Health and Safety Code.
s 8142. Approvals.
Except during the application process set forth in section 8130, where the department's approval is required throughout this subchapter the following process shall apply:
(a) The sponsor shall apply for the approval by providing the department with a written request mailed to the Family Housing Demonstration Program, Division of Community Affairs, Department of Housing and Community Development, P.O. Box 952054, Sacramento, CA 94252-2054 or panafax to (916) 323-6625. All documentation or information necessary for the approval shall accompany the request.
(b) Within 30 working days of the receipt of the request for approval, the department shall notify the sponsor in writing if the required documentation and information are not complete. If the documentation and information are not complete, the department will specify what additional documentation and information are needed.
(c) Within 30 working days of the notification to the sponsor of whether the request for approval is complete, the department shall notify the sponsor in writing whether approval is provided. If approval is not provided, the department shall provide the reasons for denying approval.
(d) A complete request for approval is one which provides all documentation and information necessary for the department to make a determination as to whether approval can be provided.
Note: Authority cited: Sections 50406(n), 50884 and 50895, Health and Safety Code. Reference: Section 15376, Government Code; and Section 50884, Health and Safety Code.
s 8200. Purpose and Scope.
(a) These regulations establish procedures for the award and disbursement of HOME funds and establish policies and procedures for use of these funds to meet the purposes contained in Title II of Public Law No. 101-625, 104 Stat. 4079 (Nov. 28, 1990), (42 USC 12701), known as the Cranston-Gonzalez National Affordable Housing Act of 1990 as amended by the Housing and Community Development Act of 1992, Public Law No. 102-550.
(b) The Cranston-Gonzalez National Affordable Housing Act of 1990 and any amendments thereto provide for state administration of the Home Investment Partnerships Program. These regulations set forth the policies and procedures governing the department's management of these funds. In addition to these regulations, program participants shall comply with the HOME rules applicable to the state program as set forth in 24 CFR part 92. In the event that Congress, the California Legislature, or HUD add or change any statutory or regulatory requirements concerning the use or management of these funds, program participants shall comply with such requirements.
Note: Authority cited: Sections 50406 and 50896.3(b), Health and Safety Code. Reference: 24 CFR part 92; and sections 50896, 50896.1 and 50896.3, Health and Safety Code.
s 8201. Definitions.
In addition to the definitions found in 24 CFR Section 92.2, the following definitions shall apply to this subchapter. These definitions are further provided to clarify applicable provisions contained in 24 CFR Section 92.2.
(a) "Administrative subcontractor" means any entity or individual which contracts with the State Recipient or CHDO to provide any portion of administrative services to the local HOME activity. Individuals or groups that are acting in the capacity of developer, owner, or sponsor of a project shall not act as administrative subcontractors for the activity.
(b) "Applicant" is any city, county, or CHDO which submits an application to the Department to operate programs or develop or rehabilitate projects using HOME Funds within a specified jurisdictional boundary.
(c) "Award letter" means a conditional reservation letter signed by the director indicating that the Department has reserved funds for a project or program subject to meeting specific conditions in the regulations.
(d) RESERVED.
(e) "CFR" is the acronym used for the Code of Federal Regulations.
(f) "CHDO" is the acronym for Community Housing Development Organization and means those organizations which meet the criteria set forth in 24 CFR Section 92.2 and are certified by the Department pursuant to Section 8204.1.
(g) "Conditional reservation" means the Department has reserved funds for a project or program subject to meeting specific conditions in the regulations and in the award letter.
(h) "Department" means the State of California, Department of Housing and Community Development, which shall serve as a participating jurisdiction as defined by 24 CFR Section 92.2, for the purposes of this program.
(i) "Director" means the director of the Department.
(j) "Family" is a household consisting of an individual or two or more persons who by blood or marriage, or otherwise, live together in a housing unit.
(k) "Federal disbursement and information system" is the computerized system operated by HUD which manages, disburses, collects data and reports on the use of HOME funds.
(l) "First-time homebuyer" means an individual or individuals or an individual and his or her spouse who have not owned a home during the three-year period before the purchase of a home with HOME assistance, except that the following individual or individuals may not be excluded from consideration as a first-time homebuyer under this definition:
(1) a displaced homemaker who, while a homemaker, owned a home with his or her spouse or resided in a home owned by the spouse. A displaced homemaker is an adult who has not, within the preceding two years, worked on a full-time basis as a member of the labor force for a consecutive twelve-month period and who has been unemployed or underemployed, experienced difficulty in obtaining or upgrading employment and worked primarily without remuneration to care for his or her home and family;
(2) a single parent who, while married, owned a home with his or her spouse or resided in a home owned by a spouse. A single parent is an individual who: 1) is unmarried or legally separated from a spouse, and 2) has custody or joint custody of one or more minor children or is pregnant; or
(3) an individual or individuals who owns or owned, as a principal residence during the three-year period before the purchase of a home with HOME assistance, a dwelling unit whose structure is:
(i) not permanently affixed to a permanent foundation in accordance with local or state regulations; or
(ii) not in compliance with state, local, or model building codes and cannot be brought into compliance with such codes for less than the cost of constructing a permanent structure.
(m) "First-time homebuyer program" means HOME funds are provided to a city, county or CHDO to administer a program to assist first-time homebuyers. Eligible uses of these funds consist of: 1) a city or county providing a loan to the homebuyer for acquisition and up to $10,000 for rehabilitation of a dwelling that the homebuyer selects from the open market; provided the work is done after transfer of ownership interest; and 2) a city, county or CHDO providing assistance for the construction of scattered site dwellings, with no more than four dwellings on each vacant site, and each site shall be in an existing built-out neighborhood. Such dwellings shall then be sold to first-time homebuyers.
(n) "First-time homebuyer project" means that HOME funds are used to develop a specified number of units to be sold to first-time homebuyers. By the conclusion of construction, the entire HOME investment shall be converted to mortgage assistance to the first-time homebuyers.
(o) "Funding cycle" means the annual period of time during which HUD makes funds available to the Department for distribution pursuant to the Act, and includes the period of time during which the Department solicits applications and makes conditional reservations of funds.
(p) "HOME" is the abbreviation used for the Department-administered Home Investment Partnerships Program.
(q) "HOME fund" means the account established in the U.S. Treasury Account of the HOME Investment Trust Fund, to which funds for the Department's use in the HOME program are allocated.
(r) "Housing" means any structure, which is currently for residential use, or proposed for residential use, in whole or in part, including manufactured housing as defined in Health and Safety Code Section 18007.
(s) "Housing element in substantive compliance" means the local public entity's adopted housing element is in substantive compliance as demonstrated by a letter from the Department which sets forth findings that the housing element adopted within the time frames required by Section 65588 of the Government Code includes that substance essential to every requirement of Article 10.6, commencing with Section 65580, of Chapter 3 of Division I of Title VII of the Government Code.
(t) "HUD" means the United States Department of Housing and Urban Development.
(u) "Leverage" means all documented monetary and non-monetary contributions, other than HOME funds, which have been assigned a measurable value and which are applied to the specific HOME-assisted project. Leverage does not include contributions toward the cost of non-low-income units and commercial space.
(v) "Local account" is an account maintained by the Department, or State Recipient, or CHDO, as may be specified in an agreement between the Department and a State Recipient, or CHDO, which shall include repayments of HOME funds and matching contributions and any payment of interest or other return on the investment of HOME funds and matching contributions.
(w) "NOFA" is the acronym used for Notice of Funding Availability. The NOFA is the document used by the Department to announce that funds are available and applications may be submitted.
(x) "Owner-occupied housing program" means funds are provided to a city or county to administer a program to assist owners of homes that are in need of rehabilitation as defined in Section 8201(y).
(y) "Rehabilitation" means repairs and improvements to substandard housing which are necessary to meet rehabilitation standards as defined in Section 50097 of the Health and Safety Code, to eliminate conditions specified in Section 17920.3 of the Health and Safety Code, and to meet housing quality standards as set forth in 24 CFR Section 882.109. Rehabilitation also means repairs and improvements which are necessary to meet any locally-adopted standards used in local rehabilitation programs. Rehabilitation shall include reconstruction.
(z) "Rental new construction project" means funds are provided to develop a specific multifamily project on a specific site by a specific developer.
(aa) "Rental rehabilitation and/or acquisition program" means funds are provided to a city or county to administer a program to assist owners of multi-unit rental housing that is in need of rehabilitation as defined in 8201(y) or to assist the purchase and rehabilitation of multi-unit rental housing that is in need of rehabilitation. No one property assisted through this program shall receive more than 40 percent of the activity amount.
(bb) "Rental rehabilitation and/or acquisition projects" means funds are provided to acquire a specific rental housing project, to rehabilitate a specific project without any transfer of ownership, or to both acquire and rehabilitate a specific project.
(cc) "Rural area" means the same as defined in Section 50199.21 of the Health and Safety Code.
(dd) "Set up" means all of the funding conditions required by HUD and the Department have been met and the State Recipient or CHDO is ready to establish a project-specific account in the federal disbursement and information system.
(ee) "Setaside" means HOME funds, which are designated to be used for a specific purpose necessary to meet any statutory or regulatory requirement.
(ff) "State Recipient" means a city or county, which is designated to receive an award of HOME funds from the Department.
(gg) "Tenant-based rental assistance program" means funds are provided to a city or county to administer a program to provide rent subsidies to eligible households. State Recipients who administer a tenant-based rental assistance program are eligible only for administrative funds to reimburse expenses eligible under 24 CFR Section 92.207 of the federal HOME regulations.
Note: Authority cited: Sections 50406 and 50896.3(b), Health and Safety Code. Reference: 24 CFR Sections 882.109, 92.102(b)(2), 92.2 and 882.109; and Sections 17920.3, 18007, 50079.5, 50101, 50105, 50896 and 50896.1, Health and Safety Code.
s 8202. Supplementary Allocations for Entitlement Jurisdictions.
Note: Authority cited: Sections 50406 and 50896.3(b), Health and Safety Code. Reference: 24 CFR Section 92.102(a); Section 65580, Government Code; and Sections 50896, 50896.1 and 50896.3, Health and Safety Code.
s 8203. Allocations for Model Programs.
Note: Authority cited: Sections 50406 and 50896.3(b), Health and Safety Code. Reference: 24 CFR Sections 92.201(b)(2), 92.201(b)(3)(i) and 92.205(a); and Sections 50406(o), 50896, 50896.1 and 50896.3, Health and Safety Code.
s 8204. Eligible Applicant.
(a) In order to be eligible to apply for HOME funds, the applicant shall be a city or county, or a nonprofit corporation that has been certified as a CHDO by the Department pursuant to Section 8204.1.
(1) Cities and counties shall comply with the following:
(A) A city may only apply for funding for activities within its incorporated boundaries;
(B) A county may only apply for funding for activities within its unincorporated areas;
(C) A city or county applicant shall not have been designated as a participating jurisdiction, or included as part of an urban county, as defined in 24 CFR Section 570.3(ee), or included as part of a consortium, as defined in 24 CFR Section 92.101, for HOME funding for the federal fiscal year for which the NOFA is issued, and
(D) A city or county applicant must demonstrate to the Department's satisfaction that it has:
(i) staff available or has committed to hiring staff able to operate a local HOME program and oversee the work of an administrative subcontractor, if any;
(ii) resolved any audit finding(s), for prior Department, or federally funded housing or community development projects or programs to the satisfaction of the Department or federal agency by which the finding was made,
(iii) provided a self certification that it is not debarred or suspended from participation in federal or state housing or community development projects or programs, and
(iv) provided a self certification that it is in compliance with the submittal requirements of OMB A-133, Single Audit Report.
(2) A CHDO applicant shall comply with the following:
(A) have received the Department's certification to serve the jurisdiction in which the project is located;
(B) be eligible to apply for activities located in cities and counties which have not been designated as participating jurisdictions by HUD, or included as part of an urban county, as defined in 24 CFR Section 570.3, or included as part of a consortium, as defined in 24 CFR Section 92.101, for HOME funding from the federal fiscal year for which the NOFA was issued; and
(C) The CHDO must demonstrate to the Department's satisfaction that it has:
(i) resolved any audit findings for prior Department or federally funded housing or community development projects or programs to the satisfaction of the Department or federal agency by which the finding was made,
(ii) provided a self certification that it is not debarred or suspended from participation in federal or state housing or community development projects or programs, and
(iii) provided a self certification that it is in compliance with the submittal requirements of OMB A-133, Single Audit Report; and
(D) provide evidence that the CHDO fulfills at least one of the following roles:
(i) sole project developer;
(ii) sole owner; or
(iii) sole general partner.
(b) An applicant with one or more current State HOME contracts for which the expenditure deadline established in the contract(s) has not yet passed shall be ineligible to apply for a program activity unless the applicant has expended at least fifty percent (50%) of the aggregate total of program funds originally awarded.
Note: Authority cited: Sections 50406 and 50896.3(b), Health and Safety Code. Reference: 24 CFR Sections 92.201(b)(3)(i), 92.300(b), 92.504(a) and 570.3; and Sections 50896, 50896.1 and 50896.3, Health and Safety Code.
s 8204.1. CHDO Certification.
(a) Applicants for CHDO certification may apply to the Department at any time.
(1) Within 15 business days of receipt of a nonprofit corporation's application for certification as a CHDO, the Department shall provide the applicant with written notice indicating whether the application is incomplete and, if so, what specific information is required for it to be considered complete.
(2) Within 45 business days of receiving all of the documentation requested in subsection (b) below, the Department shall provide the applicant with either written notice of certification identifying the geographic area for which the CHDO is being certified or written notice indicating why the CHDO application is being denied.
(3) A survey conducted by the Department pursuant to Government Code Section 15376 of the Department's performance determined the minimum, median and maximum elapsed time between receipt of a CHDO application and reaching a final decision; the results are as follows:
Minimum: 15 calendar days
Median: 30 calendar days
Maximum: 45 calendar days
(4) Applicants that are not certified by the final filing date published in the NOFA shall not be considered eligible to apply for funding as a CHDO.
(b) To apply for certification or recertification, an applicant shall submit, at a minimum, the following documentation to the Department:
(1) a copy of the Internal Revenue Service exemption letter and a letter of good standing from the California Franchise Tax Board that is dated no more than 12 months prior to the date the applicant applies for certification;
(2) a copy of the corporation's financial statement that is dated no more than 12 months prior to the date the applicant applies for certification;
(3) a copy of the corporation's bylaws, which describes, at a minimum, the following:
(A) the governing board composition,
(B) the fulfillment and maintenance of the 1/3 representation requirement contained in 24 CFR Section 92.2,
(C) a description of the manner in which board members are selected,
(D) evidence that the purposes of the organization comply with 24 CFR Section 92.2, and
(E) relationships to for-profit individuals or entities, if any, as they relate to the governance of the corporation.
(4) a copy of the corporation's articles of incorporation and any amendments;
(5) a Certificate of Status, Domestic Corporation, from the California Secretary of State that is dated no more than 12 months prior to the date of application for certification;
(6) a description of the formal process used to solicit advice from low-income program beneficiaries in decisions regarding design, siting, development, and management of affordable housing;
(7) a plan describing the program of tenant participation in management decisions for rental projects and the proposed fair lease and grievance procedure pursuant to 24 CFR Section 92.303;
(8) a description of the applicant's capacity for carrying out activities with HOME funds or a plan to gain such capacity, including but not limited to
(A) a list of current staff members responsible for any proposed HOME activity and resumes;
(B) if staff does not have such capacity, a commitment to hire experienced staff or a commitment to hire an experienced consultant and a plan to train staff;
(9) a description of the applicant's history of serving the community within which housing to be assisted with HOME funds is to be located or if the applicant has been in existence less than one year, a description of the applicant's parent organization and its history of serving the community;
(10) a list of the names of board members, their occupations, the names of their employers and any appointment or election to a public body, and an indication of which members fulfill the requirements of the 1/3 representation contained in 24 CFR Section 92.2;
(11) a copy of the corporation's business or strategic plan adopted by the Board;
(A) shall be submitted if any of the following applies to the organization:
(i) this is the first certification request with the State HOME Program,
(ii) there has been five years or more since the last certification has expired
(iii) it has been incorporated less than 10 years,
(B) the Business plan shall cover at a minimum:
(i) Business Description including, background, purpose and who, what, where, when and how the organizations plans to operate;
(ii) Market Evaluation and Strategy including customers, geographical area, competition, and environment in which the organization plans to operate;
(iii) Organizational Plan covering the corporations structure, status, staffing plan, policies and procedures for delivery of program, management controls, physical space and equipment needs;
(iv) Financial Plan detailing projected capital budgets for equipment, construction, development projects or for loan funds; start-up and cash flow; and
(v) Risk Analysis of potential financial, political, regulatory, unknown and crucial threats.
(12) the geographical areas served by the corporation, and evidencing compliance with Section 8204(a)(2)(B) in either the Articles of Incorporation, Resolution or Charter, or Bylaws;
(13) a geographic area map served by the applicant; evidencing compliance with Section 8204(a)(2)(B); and
(14) a self-certification that the applicant is not on the Federal List of Excluded, Debarred, or Suspended Contractors with supporting documentation.
(c) Upon receipt of all the documents listed in subsection (b), the Department shall conduct an analysis of the documents to determine if the applicant meets the definition of a CHDO as set forth in 24 CFR Section 92.2. If the Department determines that the applicant meets the definition of a CHDO, and meets the other requirements of this Section, the Department shall issue a letter of certification to the applicant, which shall be submitted as part of any CHDO application considered for funding.
(d) In order to demonstrate its capacity for carrying out activities assisted with HOME funds, as required by 24 CFR Section 92.2, an applicant shall meet the requirements of paragraph (1) and either paragraph (2) or (3) below.
(1) The applicant shall have resolved any audit findings, for prior Department, or federally-funded housing or community development projects or programs to the satisfaction of the Department or federal agency by which the finding was made.
(2) The applicant has staff that possesses the core competencies listed herein, and has a staffing plan specifying the number of full-time staff persons and percentages of these persons' working hours which are allotted to housing projects. The required core housing development competencies are the knowledge, skills and ability to:
(A) Conduct market/needs analyses and conceptual project design;
(B) Choose and negotiate purchase of a suitable site;
(C) Select and work with architects and other consultants;
(D) Understand and comply with local planning, zoning and building requirements;
(E) Create a development pro forma and operating budget;
(F) Set rents or sales prices;
(G) Identify financing sources and apply for financing;
(H) Comply with other lender requirements;
(I) Deal with community concerns;
(J) Comply with CEQA and NEPA requirements;
(K) Choose and work with construction contractors;
(L) Manage the construction process;
(M) Choose and work with a management agent;
(N) Successfully market a project; and
(O) Comply with HOME program requirements, construction close-out and long-term obligations.
(3) The applicant has an executed contract with a consultant experienced in housing development to commence not later than six months of the date of certification or recertification and requiring the training to be completed not later than two years from the date of certification or recertification, and which shall identify the names and titles of persons being trained and the specific core competencies in which they are being trained.
(4) A CHDO certified pursuant to paragraph (3) above shall be required to submit a status report on the process of such training on the first and second anniversaries of its certification.
(5) A CHDO shall only be permitted to achieve certification once pursuant to paragraph (3) above. Thereafter, all applications for recertification shall be subject to the requirements of paragraph (2).
(e) In order to demonstrate that the applicant, or its parent, has a history of serving the community within which housing to be assisted with HOME funds is to be located, as required by 24 CFR Section 92.2, an applicant, or its parent, shall have provided a housing-related service to the community for at least one year prior to application for certification. A housing-related service is one which has provided a benefit to a tenant or homeowner in the community. Solely engaging in predevelopment activities for a housing project shall not satisfy the demonstration required by this subsection.
(f) A nonprofit corporation created, formed, or under the control of another State-certified CHDO and that proposes to serve the same community as the existing CHDO shall not be eligible to apply for CHDO certification. In addition, a non-CHDO, non-profit parent organization may not have more than one subsidiary or affiliate that is certified as a CHDO by the State;
(g) When submitting an Application in response to the Department's NOFA process, a CHDO shall submit a self certification confirming that the organization continues to maintain compliance with all the State requirements for CHDO certification. The Department may require documentation to verify certification compliance.
(h) A CHDO certification shall remain in effect not more than three years from the date of the letter of certification issued by the Department provided that the CHDO continues to meet all requirements.
(i) The Department shall monitor all CHDOs throughout the term of the certification to ensure continued compliance as a CHDO. If the Department determines that an organization no longer complies with the requirements of this Section, the Department may declare the organization to be ineligible to apply for State HOME funds, and the Department may revoke the organization's CHDO certification.
(j) A CHDO that serves a county in which there is no other CHDO, and that does not apply for State HOME funds during any six consecutive years of certification, shall be deemed ineligible for certification for three years from the end of the sixth year of certification. Any other CHDO that does not apply for State HOME funds during a three-year certification period shall be deemed ineligible for certification for three years from the end of the three-year certification period, unless that CHDO has developed, owned or sponsored housing within the past three years.
(k) In order to be considered for certification or recertification prior to the NOFA deadline, a CHDO applicant shall submit its CHDO application no later than 60 days prior to the NOFA application deadline.
Note: Authority cited: Sections 50406 and 50896.3(b), Health and Safety Code. Reference: 24 CFR Sections 92.201(b)(3)(i), 92.300(b) and 92.504(a); and Sections 50896, 50896.1 and 50896.3, Health and Safety Code.
s 8205. Use of Funds.
(a) Eligible activities for use of HOME funds shall be one or more of the following:
(1) first-time homebuyer programs, as defined in Section 8201;
(2) owner-occupied rehabilitation programs, as defined in Section 8201;
(3) rental rehabilitation and/or acquisition programs, as defined in Section 8201;
(4) tenant-based rental assistance programs, as defined in Section 8201;
(5) rental new construction projects, as defined in Section 8201;
(6) rental rehabilitation and/or acquisition projects, as defined in Section 8201;
(7) first-time homebuyer projects, as defined in Section 8201.
(b) HOME funds shall only be used to pay for eligible costs as described in 24 CFR Sections 92.206 through 92.209.
(1) All HOME assistance shall be in the form of loans, except for funds used for the activities listed in subsection (2).
(A) Loans financed from the CHDO set-aside pursuant 24 CFR Section 92.300(a)(1) shall comply with the financing provisions as required for the following activities:
(i) for land acquisition for first-time homebuyer projects shall bear zero interest.
(ii) Loans to first-time homebuyers shall bear a simple interest rate of 3 percent per annum, computed from the date the Deed of Trust is recorded on the property. Interest and payments shall be deferred for the term of the loan. Commencing on the 11th anniversary of the recordation date, an amount equal to 10 percent of the accrued interest shall be forgiven each year, so that on the 20th anniversary of the recordation date, all interest will have been forgiven if the borrower is in compliance with the requirements stated in the Department's loan documents.
(iii) Loans to rental projects shall bear a simple interest rate of 3 percent, except for projects receiving tax credits, for which the interest rate may be either 3 percent or the long-term applicable federal rate, as defined in 26 USC Section 1274(d), and as published in the monthly revenue ruling letter published by the Internal Revenue Service. Interest shall be paid pursuant to Section 8314;
(B) Loans financed from CHDO proceeds pursuant to Section 8206.1(c) shall comply with the following financing provisions as required for the following activities:
(i) Loans assisting first-time homebuyers and homeowners whose homes are being rehabilitated shall bear simple interest rates ranging from 0 to 3 percent per annum, and interest and payments shall be deferred for the term of the loan. The CHDO may forgive some or all of the accrued interest.
(ii) Loans made by CHDOs for rental projects shall bear a simple interest rate of 3 percent, except for projects receiving tax credits, for which the interest rate may be either 3 percent or the long-term applicable federal rate, as defined in 26 USC Section 1274(d), and as published in the monthly revenue ruling letter published by the Internal Revenue Service. If a layering analysis supports a deferred loan, the State Recipient is exempt from Section 8314.
(C) Loans made by State Recipients shall comply with the financing provisions as required for the following activities:
(i) Loans assisting first-time homebuyers and homeowners whose homes are being rehabilitated shall bear simple interest rates ranging from 0 to 3 percent per annum, and interest and payments shall be deferred for the term of the loan. The State Recipient may forgive some or all of the accrued interest.
(ii) Loans made by State Recipients for rental projects shall bear simple interest rates of 3 percent, except for projects receiving tax credits, for which the interest rate may be either 3 percent or the long-term applicable federal rate, as defined in 26 USC Section 1274(d), and as published in the monthly revenue ruling letter published by the Internal Revenue Service. If a layering analysis supports a deferred loan, the State Recipient is exempt from Section 8314.
(2) Funds used for the following shall be provided in the form of a grant:
(A) funds used for tenant based rental assistance, as described in 24 CFR Section 92.209,
(B) relocation payments,
(C) funds necessary to provide the difference between work that is customarily performed and the minimally-required work necessary, using the least cost alternative, to comply with federal lead-based paint regulations in HOME-funded rehabilitation of owner-occupied housing or acquisition of housing for first-time homebuyers, and
(D) funds used for administrative costs eligible pursuant to 24 CFR Sections 92.206(d)(6), 92.206(f)(2), 92.207 and 92.208.
(3) HOME funds may be used to pay the actual costs of administering a local program as described in 24 CFR Section 92.207. The amount of HOME funds used by a State Recipient or CHDO for administrative expenses shall be limited to the amount specified in the NOFA issued by the Department pursuant to Section 8210.
(4) Costs must be necessary and must be consistent with the lowest reasonable cost taking into consideration a project's scope and area.
(5) If a State Recipient or a CHDO has received a grant for administrative costs described in 24 CFR Section 92.206(d)(6) or 92.206(f)(2), the State Recipient or CHDO shall not charge, nor shall it permit its employees or contractors to charge, any fees, or otherwise seek reimbursement for those costs.
(6) In the event that a project is not completed, or a project completion report is not submitted to the Department for the project, a State Recipient shall repay funds granted for relocation payments, lead-based paint work, and administrative costs pursuant to 24 CFR Sections 92.206(d)(6) and 92.206(f)(2), and a CHDO shall repay funds granted for relocation payments and lead-based paint work.
(c) A CHDO may request that up to ten percent of the CHDO's project-specific funds be made available for loans pursuant to 24 CFR Section 92.301.
(d) Pursuant to 24 CFR Section 92.208, up to five percent of the total amount of funds made available by HUD to the Department for any funding cycle may be used to pay for the operating expenses of CHDOs with which the Department has entered into standard agreements.
(e) HOME funds shall not be used to pay for prohibited activities or costs described in 24 CFR Section 92.214.
Note: Authority cited: Sections 50406 and 50896.3(b), Health and Safety Code. Reference: 24 CFR Sections 92.206, 92.301, 92.353 and 92.355; 42 USC 12742; 24 CFR part 39; and 24 CFR part 40; and Sections 50896 and 50896.1, Health and Safety Code.
s 8206. Matching Contributions.
(a) Except as noted in subsections (a)(1), (a)(2), and (a)(4) below, State Recipients and CHDOs shall contribute matching funds as required in subsection (b).
(1) If the matching contribution requirements of 24 CFR Section 92.218 are waived or modified by Congress or are modified by HUD pursuant to 24 CFR Section 92.222, the Department shall waive or modify the matching contribution requirements of subsection (b) for funds affected by the federal action.
(2) If the Department identifies other eligible sources of match that can be used to meet part or all of the matching contribution requirements of 24 CFR Section 92.218, the Department shall modify the matching contribution requirements of subsection (b) to the extent possible for funds affected.
(3) Modified matching contribution requirements for each funding cycle as provided for in subsections (a)(1) and (a)(2) shall be provided in the NOFA issued by the Department pursuant to Section 8210 unless such matching requirements are waived or modified by HUD after issuance of a NOFA. In that case, the Department shall notify State Recipients and CHDOs of the modification of matching contribution requirements through written notice.
(4) HOME funds used for administrative and planning costs pursuant to 24 CFR Section 92.207 and CHDO operating expenses pursuant to 24 CFR Section 92.208 shall not be required to be matched.
(b) State Recipients and CHDOs shall provide matching contributions as required by 24 CFR Sections 92.218, 92.219, 92.220, and 92.221.
(c) Documentation that the matching contribution requirements have been met shall be subject to verification by the Department.
(d) If matching contributions are provided in the form of affordable housing that is not HOME-assisted pursuant to 24 CFR Section 92.219(b), the State Recipient or CHDO shall establish a procedure to monitor these projects and ensure continued compliance with the requirements contained in 24 CFR Section 92.219(b).
(e) Contributions which shall not be considered as HOME matching contributions are those described in 24 CFR Section 92.220(b).
Note: Authority cited: Sections 50406 and 50896.3(b), Health and Safety Code. Reference: 24 CFR Sections 92.218, 92.219, 92.220, 92.221, 92.222, 92.252 and 92.254; and Sections 50896 and 50896.1, Health and Safety Code.
s 8206.1. Repayment of HOME Funds, Program Income, Proceeds from the Investment of HOME Funds, and Recaptured Funds.
(a) Repayment of HOME funds and matching contributions, program income, proceeds from the investment of HOME funds, and recaptured funds are subject to the requirements of 24 CFR Sections 92,252, 92.254, 92.300 and 92.503 and this Section. HOME funds invested in housing that is not completed or rental housing that does not comply with the affordability requirements for the required period shall be repaid to the Department. (continued)