NSP Entitlement Technical Assistance Session

1
NSP Entitlement Technical Assistance Session

• June 17, 2009

2
Introductions

• Stacie Willis, Programs Manager
• 815-5346
• Jeremy Zeller, Project Manager NSP
• 815-5214
• Robin Slawson, Project Manager CDBG
• 815-5341

3
Introductions, Continued

• Gary Wesselhoft, Project Manager - CDBG
• 815-5336
• Alicia Hibbets, Project Manager CDBG
• 815-5349
• Hugh Doherty, Project Manager CDBG
• 815-5360

4
Neighborhood Stabilization Program

• Environmental Review and Request for Release of
  Funds

5
Environmental ReviewRequirement No. 403

• Hint If you want to successfully participate in
  the NSP program, then
• Compliance with Environmental Review Requirements
  is the key to success!

6
Why Environmental Review?

• Protect health and safety, avoid or mitigate
  impacts that may harm our clients
• Avoid or mitigate any harm to the surrounding
  environment
• Avoid litigation that could stop project on
  environmental grounds
• Avoid monitoring findings and/or loss of HUD
  financial assistance to your project

7
Statutory Regulatory Structure

• Environmental Review REQUIRED by Federal Law
  Regulation under the National Environmental
  Policy Act of 1969 (NEPA) and NEPA related laws
• NEPA-Related Laws and Authorities
• HUD Regulations- 24 CFR Part 58

8
What is NEPA?

• Requires that environmental impacts be given
  appropriate consideration in decision-making
• Ensures that environmental information is
  available to public BEFORE decisions are made and
  BEFORE actions are taken
• Requires a specific step by step process that it
  involves working with many different state and/or
  federal agencies
• Helps public officials make decisions with an
  understanding of environmental consequences

9
NEPA-Related Laws/Authorities

• National Historic Preservation Act (1966)
• Floodplain Management Wetlands Protection
  Executive Orders (1977)
• Coastal Zone Management Act (1972)
• Safe Drinking Water Act (1974)
• Endangered Species Act (1973)
• Wild Scenic Rivers Act (1968)

10
NEPA-Related Laws/Authorities continued

• Clean Air Act (1970)
• Farmland Protection Policy Act (1981)
• HUD Environmental Criteria Standards (1984)
• Environmental Justice Executive Order (E.O.)
  (1994)
• Noise Control Act (1972)

11
UGLG Role

• The HCDA (Section 104(g)(1)) allows the unit of
  local government to perform NEPA responsibilities
• Regulation titled Environmental Review
  Procedures for Entities Assuming HUD
  Environmental Responsibilities

12
Certifying Officer

• As part of NSP grant agreement, Chief Elected
  Official of jurisdiction assumes responsibility
  for environmental review and must sign
  RROF/Certification and findings
• Accepts the jurisdiction of the Federal Courts
  for the responsible entity in environmental
  matters

13
Choice Limiting Actions!

• Choice limiting actions will reduce or eliminate
  your opportunity to choose alternatives
• Examples
• Acquisition
• Demolition
• Construction
• Rehabilitation
• Leasing
• Site Improvements

14
Importance of Early Start

• Begin environmental review process as soon as
  possible
• Amount of time required to complete review can
  range from 1 to 120 days

15
Other Requirements

• Requirement No. 401 Program Management
• Removing Contract Conditions
• Request for Authority to Use Grant Funds (1.1
  401-A)
• Environmental Review (Requirement No. 403)
• Leverage Commitment (1.1 401-B)
• Liability Insurance Bonding
• Anti-displacement Plan (1.2 1.3)
• Other Special Conditions included in contract

16
Steps in the Environmental Review Process

• Step 1 Designate Environmental Review Officer
  (ERO)
• Step 2 Create Environmental Review Record
• (24 CFR Part 58)
• Step 3 Develop Project Description
• Step 4 Determine Level of Review Required
• (24 CFR Part 58)
• Step 5 Follow Procedures for Applicable Review
  Level

17
Levels of Review

• 24 CFR 58.34(a) Exempt
• 24 CFR 58.35(b) Categorical exclusions NOT
  subject to laws and authorities at 58.5
• 24 CFR 58.35(a) Categorical exclusions SUBJECT to
  laws and authorities at 58.5
• 24 CFR 58.36 Environmental Assessment
• 24 CFR 58.37 Environmental Impact Statement

18
IMPORTANT TIPS!

• Change of scope in project might change review
  required
• DONT SPEND A DIME until your ER is complete
  and you have received Release of Funds from ODOC
• Even .01 of NSP funds requires the ENTIRE
  project to follow ER requirements
• When in doubt contact your NSP staff!

19
ER Attachments pg. 403-10

• 3.1 Sample Request for Agency Comment Letter
• 3.2 ER Cross-Reference Checklist
• 3.3 Fish Wildlife Blanket Clearance
• 3.4 Corps of Engineers Information Sheet
• 3.5 OK Scenic Rivers Blanket Clearance
• 3.6 List of Tribal Governments
• 3.7 Statutory Checklist for Categorical
  Excluded projects, Compliance Instructions
• 3.8 Environmental Assessment Checklist
  Instructions
• 3.9 E.O. 11988 Eight Step Decision Making
  Process,
• Flood Plain, Flood Insurance
• 3.10 Noise Abatement and Control Checklist

20
ER Attachments pg. 403-10 cont.

• 3.11 Certification of Exemption
• 3.12 Cert. of Categorical Exclusion (not subject
  to 58.5)
• 3.13 Cert. of Categorical Exclusion (subject to
  58.5)
• 3.14 Notice of Intent to Request Release of
  Funds
• 3.15 Environmental Certification Form
• 3.16 Finding of No Significant Impact
• 3.17 Combine Notice to Public of FONSI NOI to
  RROF
• 3.18 Distribution List
• 3.19 Cert. of Continued Environmental Compliance
• 3.20 Notice regarding runway clearzones,
  clearzones, accident potential zones

21
Neighborhood Stabilization Program

• Acquisition and Relocation

22
Acquisition and Relocation Overview

• Whenever Federal funds, such as NSP, are used in
  a project involving the acquisition
  rehabilitation or demolition of real property, a
  Federal law known as the Uniform Relocation
  Assistance and Real Property Acquisition Policies
  Act (URA) may apply

23
The Purchase Discount

• Requirements for each foreclosed-upon home or
  residential property shall now be purchased at a
  discount of at least 1 percent from the current
  market-appraised value of the home or property.
• The 15 aggregate discount requirement has been
  eliminated.

24
Appraisals

• Must have appraisal for each individual property
  being acquired. Can have one appraiser perform
  appraisal on multiple properties, but must
  indentify a value for each property. No median
  value.
• Appraisals need to be consistent with the Uniform
  Standards of Professional Appraisal Practice
  (USPAP). Published by The Appraisal Foundation.
  Must have these 5 following requirements

25
Appraisal Requirements

• Adequate description of the physical
  characteristics of the property being appraised
  including items identified as personal property,
  a statement of the known and observed
  encumbrances (a claim against property.
  Mortgages), title information, location, zoning,
  present use, an analysis of highest and best use,
  and at least a 5 year sales history of the
  property.

26
Appraisal Requirements

• All relevant and reliable approaches to value
  consistent with established Federal and
  federally-assisted program appraisal practices.
  If the appraiser uses more than one approach,
  there shall be an analysis and reconciliation of
  approaches to value used that is sufficient to
  support the appraisers opinion of value.

27
Appraisal Requirements

• A description of comparable sales, including a
  description of all relevant physical, legal, and
  economic factors such as parties to the
  transaction, source and method of financing, and
  verification by a party involved in the
  transaction.

28
Appraisal Requirements

• A statement of the value of the real property to
  be acquired and, for a partial acquisition, a
  statement of the value of the damages and
  benefits, if any, to the remaining real property,
  where appropriate.

29
Appraisal Requirements

• The effective date of valuation, date of
  appraisal, signature, and certification of the
  appraiser.
• If the Agency uses a contract (fee) appraiser to
  perform the appraisal, such appraiser shall be
  state licensed or certified in accordance with
  title XI of the Financial Institutions Reform,
  Recovery, and Enforcement Act of 1989 (FIRREA)

30
Acquisition Submissions

• When submitting information regarding the
  property acquiring to ODOC, must submit the
  entire appraisal, review appraisal (if
  appropriate) and any other documentation for the
  current market appraised value.

31
Acquisitions in NSP

• You can use NSP for down payment assistance and
  closing costs (Eligible Use A) for families
  purchasing the property.
• Eligible costs incurred through failed
  acquisitions (appraisals, title search) are still
  eligible for NSP funds.
• 1 for 1 replacement is not required for NSP
• Cannot do non-voluntary acquisitions

32
Relocations for NSP

• Lawful occupants displaced for an NSP acquisition
  will be eligible for relocation assistance and
  payments.
• Person who is evicted for cause is NOT eligible
  for relocation assistance.
• Maximum time for temporary relocation is 12
  months.
• www.HUD.gov/relocation

33
Neighborhood Stabilization Program

• Federal Labor Standards
• Davis Bacon

34
NOTICE

• This guidance concerns NSP I (Housing and
  Economic Recovery Act of 2008).  For Davis-Bacon
  purposes, NSP I is treated in the same fashion as
  CDBG.  The labor standards clause is found at
  Section 110 of the Housing and Community
  Development Act of 1974.  Under this clause,
  Davis-Bacon requirements apply to the
  rehabilitation of residential property only if
  the property contains not less than 8 units.  In
  relation to this clause, HUD has defined property
  as one or more buildings on an undivided lot or
  on contiguous lots or parcels, which are
  commonly-owned and operated as one rental,
  cooperative or condominium project.
• It is critical to note that the threshold
  applies to the number of units in the property,
  not the number of units in a building, not the
  number of units in a contract, and, in the case
  of an existing multifamily property, not the
  number of units that will undergo rehab in the
  property.
• Provided by
• Tamara Greiner
• Contractor Industrial Relations Specialist
• U.S. Dept. of HUD
• 301 NW 6th St., Suite 200
• Oklahoma City, OK  73102
• Phone [phone]   Fax [phone]
• tamara.t.greiner_at_hud.gov 

35
Why are Labor Standards Crucial

• Standards guarantee fair wages and compensation
  for workers
• Helps provide a level playing field for bidders
• Local grantee must ensure and document compliance
• Transgressions endanger future funding
• Required by NSP program and other federal laws

36
Todays Labor Standards Topics

• Federal Labor Standards 101
• UGLG Responsibilities
• Wage Determinations Classification Issues
• Certified Payroll Requirements

• Compliance Principles
• Contractor Responsibilities
• When Things Go Awry.
• Other Sources of Information

37
Key Federal Statutes

• Davis-Bacon Act
• Contract Work Hours and Safety Standards Act
• Copeland Act

38
Davis-Bacon Act (40 U.S.C. 276a.-5)

• Enacted 1931, amended 1935 1964
• HCDA requires construction contracts over 2,000
  or residential properties with 8 or more housing
  units comply with Davis-Bacon Act
• Act is site-based
• Includes alteration, repair, painting decorating

39
Davis-Bacon Act

• Construction work financed
• Soft costs do not trigger DB
• Property ? building Applies to Total of units
  in property
• Volunteers are exempt (more later)
• Force account workers are exempt

40
Use of Volunteers

• Volunteers may work without pay on a construction
  project to which Davis-Bacon and Related Acts
  apply. An individual may not however, be paid
  for some work and volunteer for other work. It
  is permissible to cover reasonable costs of
  volunteers such as travel or other incidental
  benefits .

41
Contract Work Hours and Safety Standards Act
(CWHSSA) (40 U.S.C. 327-333)

• Enacted 1962
• Payment for all contract work exceeding 40 hours
  per week at 1½ times regular rate of pay
• Applies to contracts exceeding 100,000
• Liquidated damages for violations (10 per/day,
  per/violation)

42
Copeland Act

• Enacted in 1934 (40 U.S.C. 276c)
• Prohibits kickbacks
• Requires contractors to submit certified payrolls
  with a signed statement of compliance each week
• Regulates deductions from wages
• FICA, federal state taxes
• Bona fide prepayment of wages
• Court ordered payments, fringe benefit plans, etc

43
Davis - BaconFactors of Applicability

• All laborers and mechanics employed by
  contractors or subcontractors
• Requires payment of at least prevailing wages
• Requires weekly payment of wages
• Usually applied through Related Acts

44
Davis-Bacon Regulations

• The Department of Labor (DOL) has published rules
  and instructions concerning Davis-Bacon and other
  labor laws in the Code of Federal Regulations
  (CFR). They can be found in Title 29 CFR Parts
  1, 3, 5, 6 and 7

45
Responsibilities of UGLG (Title 29 CFR Part 5)

• Designate a Labor Standards Compliance Officer
• Request a Wage Decision
• Put Wage Decision and Labor Standards clauses
  (Form 4010) in contract bid documents
• Check contractor eligibility (http//epls.arnet.go
  v/)
• Conduct a pre-construction conference (optional)

46
Responsibilities of UGLG (Title 29 CFR Part 5)

• Review weekly payrolls and compliance statements
• Conduct employee interviews
• See that underpaid workers receive restitution
• Maintain contract management system and
  compliance files

47
Davis-Bacon Wage Determinations

• Must be included in bid documents and contract
• Established by geographic area
• May be modified periodically
• Published for four types of construction
• www.wdol.gov

48
Davis-Bacon Wage Determinations Types of
Construction

• Building - sheltered enclosures that house
  persons, machinery, equipment, etc. Also
  apartment buildings over 4 stories
• Residential - single family houses, townhouses,
  and apartment buildings up to four stories
• Highway - roads, highways, sidewalks, parking
  areas, and other paving work not incidental to
  other construction
• Heavy - projects that cant be classified as
  Building, Residential or Highway

49
Davis-Bacon Wage Determinations Lock-In Rules

• Competitive bidding
• Modifications published less than 10 days before
  bid opening are not applicable if there is not
  sufficient time to notify bidders
• Lock-in at bid opening provided contract is
  awarded within 90 days
• Must update wage determination if contract award
  is more than 90 days
• UGLG must verify that wage rates are current

50
Employer Requirements

• Classification
• Pay
• Overtime
• Posters

51
Employer Requirements

• All laborers and mechanics must
• Be classified in accordance with the Wage
  Decision
• Be paid at rates ? those on Wage Decision

52
Employer Requirements Additional Classifications

• Employer submits request in writing
• UGLG must follow up (contact ODOC)
• DOL has 3 criteria for approval
• Work is not already on the WD
• Proposed classification is used by the industry
  in the project area
• Proposed wage rate fringe benefits bear a
  reasonable relationship to rates on the WD

53
Employer Requirements Dual Classification

• When an employee performs tasks under two or more
  distinct classifications, the employee must be
  paid the prevailing wage rate for each
  classification
• Must be listed separately on the payroll

54
Employer Requirements

• All laborers and mechanics must
• Be paid not less often than once a week
• Receive at least 1½ times regular rate of pay for
  all hours worked over 40 per week
• Each employer must
• Submit weekly certified payrolls reflecting all
  hours worked

55
Employer Requirements

• Two Posters
• Wage Determination
• DOL Notice to Employees
• http//www.dol.gov/esa/regs/compliance/posters/pd
  f/fedprojc.pdf
• Posted in a conspicuous place, protected from the
  elements

56
UGLG Compliance/Monitoring

• On-site employee interviews should be used as a
  proactive enforcement tool
• Grantees are encouraged to focus interviews to
  projects or groups of workers where violations
  are suspected or alleged
• Each employer must
• Maintain full documentation, including payrolls
  and related records, for at least 3 years
  following completion

57
UGLG Compliance/Monitoring

• Interviews can be used to support a specific
  on-going investigation
• Fewer on-site interviews may be conducted
  randomly but HUD considers focusing a far more
  effective means of utilizing on-site interview
  resources

58
Davis-Bacon Compliance

• Wage Classifications and Pay
• Site of the Work
• Truck Drivers
• Apprentices and Trainees
• Helpers
• Fringe Benefits

59
Davis Bacon ComplianceLaborers and Mechanics

• Laborer / Mechanic anyone performing
  construction work on the project
• Supervisors are covered if they spend ? 20 their
  time performing manual work
• Project Superintendents if they do work in listed
  trades, they must be paid the appropriate wage
  listed on the Wage Determination

60
Davis Bacon ComplianceSite of Work

• 29 CFR 5.2(l)(1)
• the physical place where the building or work
  called for in the contract will remain

61
Davis Bacon ComplianceApprentices and Trainees

• Only apprentices trainees registered in an
  approved program may be paid less than the
  applicable wage rate
• Approved program means a program registered
  with the DOL or a DOL- recognized State
  Apprenticeship Agency

62
Davis Bacon ComplianceHelpers

• Helpers are only allowed when
• Duties are distinct from all others
• Use of helpers is established in the area
• Helper not in informal training program

63
Davis BaconFringe Benefits

• Allowed
• Employer contributions to Third Party plans
• Health / life / disability / dental insurance
  plans
• Retirement plans
• Costs of apprenticeship

64
Davis BaconFringe Benefits

• Excludes payments required by law
• FICA
• Workers Compensation
• Unemployment
• Certified payrolls must reference how FBs are paid

65
Prime Contractor

• Responsible for all employers on project
• Subcontractors communicate through prime
• Ensures labor provisions in all subcontracts

66
Prime Contractor

• Submits certified payrolls for own employees
• Provides subs with forms and guidance
• Ensures access to employees on site
• Responsible for restitution to underpaid
  employees
• Posters

67
Subcontractor

• Submits certified payrolls each week
• Instructs lower-tier subs of responsibilities
• Reviews Wage Decisions, requests additional
  classifications
• Ensures access to employees on-site

68
Certified Payroll Requirements(Title 29 CFR Part
3)

• Optional Form WH-347
• Compliance statement w/ original signature of
  corporate official, or letter of delegation
• Payrolls are due weekly
• Identify first and final payroll

69
Certified Payroll Basics

• No Work payrolls optional but all weeks must
  be accounted for in records
• Payrolls must be complete legible
• Prime contractor reviews payrolls and submits to
  UGLG
• Payroll record retention three years

70
Certified Payroll Basics Employee Information

• Employee name, address, SSN
• Employee work classification
• Rate of pay
• Straight / OT hours worked per day, per week on
  this project

71
Certified Payroll Basics Wages and Deductions

• Gross wages earned
• Deductions from wages
• Net pay
• Statement of compliance
• one for each weekly payroll
• signed by corporate official (or designee)

72
Correcting Violations

• Labor Standards Officer notifies company and/or
  prime contractor of violations
• Wage restitution must be documented
• Submit corrected certified payroll

73
Correcting Violations

• Funds may be withheld by UGLG if violations are
  not corrected promptly
• Deposit of funds in Escrow if matter is under
  appeal, or workers cannot be found
• Administrative sanctions
• Limited Denial of Participation
• Debarment

74
Recordkeeping Requirements

• Copies of Wage Decisions
• Modifications
• Preconstruction Minutes if applicable
• Bid Documents and Copy of Contract
• Notification of Contract Award
• Documentation of all enforcement actions

75
Recordkeeping Requirements (continued)

• Weekly payrolls with statement of compliance
• Employee interviews
• Contractor clearance
• Securing confidentiality of records

76
Reporting

• Violations of underpayment must be reported to
  DOL if gt1,000 or willful.
• Semi-annual report of contracts awarded

77
HUD Labor Relations References

• Making Davis Bacon Work (HUD Publication)
• A Practical Guide for States, Indian Tribes and
  Local Agencies
• http//www.hud.gov/offices/adm/hudclips/forms/file
  s/4813-LR.pdf
• Making Davis Bacon Work
• A Contractors Guide to Davis-Bacon
• http//www.hudclips.org/sub_nonhud/cgi/pdfforms/48
  12-LR.pdf

78
HUD Labor Relations References

• Labor Relations Forms
• www.hud.gov/offices/olr/olrform.cfm
• HUD Office of Labor Relations
  www.hud.gov/offices/olr
• HUD Regulations
• www.access.gpo.gov/nara/cfr/cfr-table-search.html

79
Other Sources

• Davis-Bacon Wage Determinations
  http//www.wdol.gov
• GSAs On-Line Debarment List
• http//epls.arnet.gov

80
Other Sources

• DOL DBRA Homepage www.dol.gov/esa/programs/dbra/i
  ndex.htm
• DOL Regulations
• www.dol.gov/esa/regs/cfr/whdcfr.htm
• DOL Forms
• www.dol.gov/libraryforms/

81
Neighborhood Stabilization Program

• Financial Management

82
Certificate of Authorized Signers

• What is it?
• Certificate lists all individuals authorized to
  sign contracts and fiscal records on behalf of
  contractor
• CIT will compare names against reports and
  requests submitted

83
Certificate of Authorized Signers, Continued

• Things to remember
• Most important signature is Mayors
• Must have name of town/city in addition to any
  municipal authorities listed
• Include titles of signers
• Certificate must be notarized

84
Electronic Funds Transfer Authorization

• Form must be completed to allow electronic
  transfer of funds requested (See page 404-12)
• All payments will be made by electronic funds
  transfer

85
Request for Payment of Contract Funds

• See form on page 404-17
• Funds may be requested in advance
• Must request based on activity codes
• Breakdown draw between 25 LMMH portion and
  non-25 portion

86
Request for Payment of Contract Funds, Continued

• Must expend program income prior to requesting
  funds from ODOC
• If you reported program income earned in the
  previous month, report expenditure of program
  income at bottom of draw request
• Request must be signed by fiscal signatory listed
  on Certificate of Authorized Signers

87
Monthly Expenditure Report

• Must expend funds within 15 days of receipt
• Expenditures are reported on the Monthly
  Expenditure Report (See page 404-20 404-21)
• Reports are due by the 10th of the month
  following receipt of funds

88
Monthly Expenditure Report, Continued

• Page 1
• Current Expense
• Expenditures to Date
• Budget
• Remaining Balance

89
Monthly Expenditure Report, Continued

• Page 2
• Same as page 1, but broken into 25 and non-25
  portions
• Can also use formulas to link totals from page 2
  to page 1
• Report program income earned and expended to date
  at bottom, breaking down between 25 LMMH portion
  and non-25 LMMH portion on page 2

90
Audit Requirements

• Subject to A-133 Single Audit Act requirements
• All contractors are required to submit an annual
  audit to ODOC detailing expenditures of NSP funds
• Audits are submitted to Wendi Whittier (815-5304)

91
Project and Budget Modifications

• Project and budget modifications must be approved
  by ODOC
• Submit a request for a change of scope by letter
• ODOC will request additional information, if
  necessary
• Budget modifications can be requested using the
  Budget Modification Request Form (See page
  401-21)

92
Beneficiary Eligibility

• Sample form on page 401-22
• If you have a form that you are currently using
  under your regular CDBG/HOME programs, you may
  continue to use that form

93
Reporting

• Quarterly Report (See page 409-9)
• Must be submitted to ODOC at the end of each
  quarter (March, June, September, December)
• Report number of properties, housing units, and
  low, mod, middle income households, and funds
  spent for each activity code
• List addresses being reported each period with
  activity code and whether the property is
  foreclosed, abandoned, or vacant

94
Reporting, Continued

• Include a narrative to describe progress
• Funds will be withheld for late reports

95
Neighborhood Stabilization Program

Non-Discrimination and Fair Housing Requirements
96
Oveview Requirement No. 408

• State and Local Governments receiving NSP funds
  must take measures to
• Ensure non-discriminatory treatment and equal
  access
• Affirmatively further fair housing
• Provide economic opportunities to low-income
  residents (Section 3)

97
Overview - continued

• Requirements apply to
• Housing
• Benefits/opportunities created by NSP
• Employment
• Business opportunities, such as contracting

98
Applicable Laws and Regulations

• Several Federal laws protect individuals from
  discrimination and apply to NSP funded
  activities. These include
• Section 109 of the Housing and Community
  Development Act of 1974-prohibits discrimination
  on the basis of race, color, national origin, sex
  or religion in any NSP-funded program or activity
  (24 CFR 570.495(b)).

99
Applicable Laws--continued

• Title VIII of the Civil Rights Act of 1968
• - (FairHousing Act) prohibits discrimination in
  housing-related transactions on the above basis
  as well as familial status and handicap
  (disability).
• Title VI of the Civil Rights Act
• - No exclusion from participation in federally
  funded programs or activities based on race,
  color, or national origin

100
Applicable Laws - continued

• Section 104(b)(2) of the Housing and Community
  Development Act of 1974 requires that each
  grantee certify that the grant will be
  administered in conformance with the Fair Housing
  Act and that the grantee will affirmatively
  further fair housing (AFFH).

101
Applicable Laws - continued

• Section 504 of the Rehabilitation Act of 1973
  prohibits discrimination based on disability in
  any program or activity receiving federal
  financial assistance.
• Architectural Barriers Act of 1968 requires
  that buildings constructed or assisted with
  federal funds be accessible to and usable by
  handicapped persons.

102
Applicable Laws - continued

• Section 3 of the Housing and Urban Development
  Act of 1968 requires that employment and other
  economic opportunities arising in connection with
  housing rehab, construction or other public
  construction projects shall be given to low- and
  very low-income persons, to greatest extent
  feasible (24 CFR Part 135 and 24 CFR 570.487).

103
Affirmatively Furthering Fair Housing (AFFH)

• States and Local Governments receiving NSP funds
  must certify that they will affirmatively further
  fair housing (24 CFR 570.487 and 24 CFR Part
  91.325 (a)(1)).

104
Affirmatively Furthering Fair Housing - continued

• State government responsibilities
• identifying impediments to fair housing choice
• conducting fair housing planning
• taking actions to overcome the identified
  impediments
• maintaining records
• assuring that local governments comply with
  certifications.

105
Affirmatively Furthering Fair Housing - continued

• Local government responsibilities
• Develop proposed action to AFFH for ODOC review
  and approval
• Develop complaint procedure
• Develop method for documenting efforts to promote
  and monitor activities
• Other requirements may be imposed by ODOC

106
Section 504

• Section 504 of the Rehabilitation Act of 1973
  prohibits discrimination in Federally assisted
  programs on the basis of disability.
• Includes standards for new construction,
  substantial rehabilitation
• Requires adaptations needed so that a qualified
  person with a disability may fully participate in
  a program, take advantage of a service, perform a
  job, or be able to use and enjoy a dwelling -
  including common areas
• Applies to the recipient and any sub-recipient
• Additional guidance at 24CFR Part 8 and 9 and HUD
  Notices CPD-05-09 and CPD-05-10.

107
Section 3 24 CFR 570.487 and 24 CFR Part 135

• Requires that to greatest extent possible
• Training, employment and other economic
  opportunities arising in connection with
  NSP-funded housing or other public construction
  projects must be provided to low- and very
  low-income persons residing in the
  program/project service area.
• Contracts be awarded to business concerns that
  are located in or owned by persons residing in
  program/project service area and that will employ
  low-and very low-income persons who reside in the
  service area.

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Section 3 - continued

• Applies to
• Housing Rehabilitation
• Lead Hazard Abatement
• Housing Construction
• Other Public Construction Projects
• 200,000/100,000 thresholds

109
Section 3 - continued

• Requirements
• Notify Section 3 residents of employment and
  training opportunities
• Notify contractors of Section 3 requirements
• Facilitate employment/training opportunities for
  Section 3 residents

110
Section 3 - continued

• Who is a Section 3 Resident?
• A resident of a public housing or a L/M income
  person residing in the area in which HUD assisted
  project is located

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Section 3 - continued

• What is a Section 3 Business Concern?
• owned by Section 3 resident(s)
• employs a substantial number of Section 3
  residents (30 of permanent FTE position) or
• subcontracts with business concerns owned by or
  employing Section 3 residents (at least 25 of
  dollar award of all subcontracts)

112
Section 3 - Reporting

• States are responsible for reporting to HUD
  annually on all contract and subcontract
  activities in period for contracts over 100,000.
• Local governments must provide required
  information.

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Neighborhood Stabilization Program

Monitoring
114
Monitoring Priorities

• Multi-jurisdictional, i.e., involving more than
  one unit of local government
• High Risk Level

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High Risk

• Lack of recent history in administering a NSP
  project
• Evidence of numerous accounting or financial
  tracking errors on current or previous projects
• A record of serious findings or sanctions in
  previous monitoring reviews.
• High staff turnover of administrative staff

• Delays in submitting required reports
• Prior violations of cash-on-hand or release of
  funds requirements
• Failure to attend and participate in
  implementation workshops
• Excessive tardiness in responding to prior
  monitoring findings.

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Monitoring Accomplished in Two Ways

• On-Site Monitoring
• Desk Monitoring

117
On-Site Monitoring

• Formal Process
• Exit Interview
• Formal Monitoring Letter
• Findings Remedy
• Grantee Corrective Action

118
Desk Monitoring

• Priority
• Cost Efficient
• Helps Commerce Stay in Touch

119
What is Monitored

• Financial System
• Procurement Processes
• Subcontractor Bidding Process
• Davis Bacon Wage Regs.
• Reporting

• Contracts
• Interlocal Agreements
• Bonding and Insurance
• EEO
• Environmental Review
• Citizen Participation
• Acquisition/Disposition

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BEST PRACTICE

• Successful Grantees keep a monitoring file.
  Frequently, Grant records are kept in a variety
  of locations. A grant file will keep a copy of
  required documents in one place so you are always
  ready for a monitoring review.

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• NOTE
• The monitoring list is not inclusive

122
Close-outs

• Requirement 410
• Final Expenditure Report must agree to last
  Monthly Expenditure Report submitted
• Must include Board/Council minutes accepting
  completed project