Legal Authorities

1
Legal Authorities

• Statutory
• Regulatory
• HUD Notices
• HUD Notice of Funding Availability
• HUD 202 / 811 Handbooks

2
Legal Issues (contd)

• Where to find all this information ?
• HUDCLIPS www.hud.gov
• click RESOURCES
• click HUD Handbooks, Forms, Publications
• click Access HUDCILPS
• United States Code http//www.law.cornell.edu/usc
  ode/

3
Legal Issues (contd)

• Who can be a sponsor of a 202 and 811 project ?
• 5 PRONG TEST

4
Legal issues (contd)

• 1)202 must have 501(c)(3) or 501(c)(4)
• 811 must be 501(c)(3)
• 2) No part of the net earnings of which inures
  to the benefit of any member, founder,
  contributor or individual
• 3) Must not be controlled by, or under the
  direction of, persons or firms seeking to derive
  profit or gain therefrom
• 4) Must have a governing board
• 5) approved by HUD as to administrative and
  financial responsibility

5
Legal Issues (contd)

• 202 Sponsor
• cannot be a public body or instrumentality of a
  public body
• can be a consumer cooperative

6
Legal Issues (contd)

• EXHIBIT 2 LEGAL STATUS
• (a)Articles of Incorporation, Constitution or
  other organizational documents
• (b) By-laws
• (c) IRS tax exemption

7
Legal Issues (contd)

• EXHIBIT 2 Legal Status
• Co-sponsors
• Begin and End dates
• IRS Tax Exemption Ruling

8
Legal Issues (contd)

• Exhibit 2 What is Legal Review looking for?
• Whether sponsor has the legal authority to
  sponsor the project, to assist the owner and to
  apply for the capital advance.
• Whether there are inconsistencies between
  sponsors legal documents and HUDs statutory,
  regulatory and NOFA requirements.

9
Legal Issues (contd)

• EXHIBIT 2 Legal Status
• There must be language in the legal documents
  stating no part of the sponsors net earnings
  inures to the benefit of any private party
• Nothing in the by-laws, sponsors organizational
  or legal documents can conflict with this
  requirement

10
Legal Issues (contd)

• EXHIBIT 2 Legal Status
• Self-dealing provisions in by-laws
  problematic
• No cure for self-dealing

11
Legal Issues (contd)

• Exhibit 4(d) Site Control
• There have been no changes to the site control
• requirements.
• 202 vs. 811
• 202 No site control results in rejection
• 811 No site control placed in Category B

12
Legal Issues (contd)

• Deed or long-term leasehold
• Contract of sale
• Option to purchase or for a long-term leasehold

13
Legal Issues (contd)

• Site covered by a HUD mortgage
• Sites acquired from a public body

14
FY2009 Section 202 Allocation Formula

• One-person Very Low-Income Renter Households with
  one person Very Low-Income Age 62 With Housing
  Conditions
•  
• Incomes at or below the 1 person Section 8 Income
  Limit (Very Low-Income Limit)
•  
•  

15
FY2009 Section 202 Allocation Formula (contd)

• With Housing Conditions
• - Living in a unit lacking plumbing
  
• or kitchen facilities
• - Overcrowded
• - Excess Rent Burden more than
• 30 of income for rent
• Data Source 2000 Census Special Tabulations of
  Households

16
FY2009 Section 202 Allocation Formula (contd)

• Each HUD Office jurisdiction is allocated funds
  for a metropolitan share and a non-metropolitan
  share.
• For FY09, each jurisdiction receives sufficient
  capital advance funds for a minimum of 20 units
  in the metro portion and 5 units in the non-metro
  portion.

17
FY2009 Section 202Evidence of Need

• Sponsors evidence of need should include
• Estimate of demand
• Market conditions in existing supply (Public
  Housing, RHS, LIHTC, Sec. 8, 202)
• Assisted housing under construction

18
FY2009 Section 202Evidence of Possible Lack of
Demand

• Projected long-term decline in age-cohorts for
  target population
• Slow absorption in newer units
• Persistently high vacancies
• Widespread use of age-waivers
• Evidence of new projects filling at the expense
  of existing ones

19
FY2009 Section 202EMAD Points Awarded for Market
Need

• Only projects in market areas with sufficient
  demand will be rated
• Projects will receive 10, 5, or 0 points based
  upon the unmet need and unmet needs ratio
  project units as a percent of the unmet need

20
FY2009 Section 202EMAD Points Awarded for Market
Need

• Unmet need is the number of one-person renters
  age 75 with very-low incomes and with housing
  conditions, minus any rental assistance provided
  since 2000
• If the unmet need is positive, rating based on
  unmet needs ratio
• 15 percent or less 10 points
• Greater than 15 percent 5 points
• If the unmet need is 0 or negative 0 points

21
FY2009 Section 811

• EMAD will not conduct market reviews of Section
  811 applications and will not assign rating
  points
• EMAD will provide assistance to the field Housing
  staff in cases where there is a concern about
  market conditions

22
FY2009 Section 202

• Special Tabulations of Households for 1990 and
  2000
•  
• http//www.huduser.org/datasets/ spectabs.html

23
Questions?

• Please contact your local field economist with
  any questions regarding the data, metropolitan
  definitions, or evidence of need.

24
OverviewFair Housing/Civil Rights Matters

• Civil Rights Threshold Review
• Rating Factor 1.b.(1)
• Rating Factor 1.b.(2)
• Rating Factor 3.c. Section 811
• 3.b. Section 202
• Rating Factor
• 3.l.(1) and (2) Section 811
• 3.k.(1) and (2) Section 202

25
Overview (contd)

• Rating Factor 2.b.
• Rating Factors
• 3.g. Section 811
• 3.i. Section 202

26
Civil Rights Threshold Review

• Section III.C.2.c. of the General Section of the
  NOFA

27
Rating Factor 1.b.(1)

• Scope, extent, and quality of your experience in
  providing housing or related services to minority
  persons or minority families
• Worth a maximum of five (5) points

28
Significant Previous Experience

• The percentage of minorities being provided
  housing or services in the applicants current
  projects are equal to or greater than the
  percentage of minorities in the housing market
  area where the housing or services are provided

29
Rating Factor 1.b.(2)

• The scope, extent, and quality of relationships
  overtime with minority communities
• Worth a maximum of two points

30
Rating Factor 3.c.811 3.b. 202

• The suitability of the site in providing greater
  housing choice to minorities and persons with
  disabilities and affirmatively furthering fair
  housing
• Worth a maximum of 8 points for Section 811
• 9 points for Section 202
• 24 CFR 891.125(b) and (c)

31
How to meet Rating Factor 3.c.

• For non-minority neighborhood
• For minority neighborhood

32
Rating Factor 3.l.(1) and (2) for Section 811
3.k.(1) and (2) for Section 202

• The number of jobs created
• The type and amount of contracts generated
• How Section 3 residents and businesses will be
  targeted for these opportunities

33
Rating Factor 2.b

• Connection between the project and the
  communitys planning document that analyzes fair
  housing issues

34
Rating Factors 3.g. Section 8113.i. Section
202

• The inclusion of the target population in the
  development and implementation of the project

35
Contact Information

• Gwendolyn.V.Jackson_at_HUD.gov
• [phone]

36
SITE SELECTION AND THE ENVIRONMENTAL REVIEW
PROCESS
37
General

• Timing of environmental review
• 811s with site control 202s at application
  processing stage
• 811s approved as Category B or changed site for
  approved grant prior to issuance of FIRM
• Same environmental requirements as at time of
  SuperNOFA

38
General (contd)

• 202/811 Sponsors and HUD are partners
• And HUD wants Sponsors to
• Find a site with no concerns/easily resolvable
  concerns, especially
• Toxic Hazards
• Historic Preservation
• Floodplain or Wetland

39
General (contd)

• HUD wants Sponsors to provide certain information
  to HUD
• Phase I ESA
• Comprehensive Asbestos building survey when
  pre-1978 structures (other than just 1-4 units
  technical correction for 811)
• Historic Preservation
• Other information as requested

40
General (contd)

• HUD appraiser will perform environmental review
  based on
• Sponsor provided information
• Research
• Legwork

41
Curable Deficiencies

• Phase I ESA
• Comprehensive Asbestos Bldg Survey or no- pre
  1978 Structure, or only 1-4 units on site
  Statement
• Historic Preservation
• Letter to SHPO
• SHPO response or statement of no SHPO response

42
Hazard Identification and Remediation

• Phase I Environmental Site Assessment (ESA) Must
  use ASTM 1527-05, as amended
• Required on all 202 projects and Section 811
  projects with site control

43
(No Transcript)
44
Hazard Identification Remediation (contd)

• Phase I ESA (contd)
• Timing
• Prepared within 1-year of application due date
  (NEW)
• 202 - After 11.13.08
• 811 - After 11.16.08

45
Phase I ESA Timing (contd).

• And also, if prepared more than 180 days from
  application due dates must be updated per ASTM
• ASTM E 1527-05, Section 4.6
• 202 - If older than 5.17.09
• 811 - If older than 5.20.09

46
Hazard Identification Remediation (contd)

• Phase I ESA (contd)
• Report format/Table of Contents per Appendix X4
  of 1527-05
• Findings, Opinions, Conclusions (NEW)
• ASTM E 1527-05 Sections 12.5, 12.6, 12.8,
  respectively

47
Hazard Identification Remediation (contd)

• Phase I ESA (contd)
• Technical Reject
• If use earlier version of 1527
• Failure to use Appendix X4
• Failure to use Sections 12.5, 12.6, 12.8
• Older than 1-year
• If update required by 180 day exceedance Not
  updated, or not updated correctly

48
Hazard Identification Remediation (contd)

• If Phase I indicates possible presence of
  contamination and/or hazards, i.e. RECs
• Phase II required if Sponsor opts to continue
  with site
• Phase II must indicate total extent of hazards
• Must be received by 12.14.9 and 12.16.9 for 202
  and 811, respectively

49
Hazard Identification Remediation (contd)

• If Phase II indicates hazards, the following must
  be received by HUD by 12.14.9 and 12.16.9 for 202
  and 811, respectively
• Contract for Remediation, and
• Remediation Plan approved by local/State/Federal
  govt
• Remediation at Sponsors expense
• After remediation, must be clean to non-site
  specific standards no capping, monitoring
  wells, etc.

50
Hazard Identification Remediation (contd)

• Groundwater exception to clean site
• All contamination in Groundwater at least 25 feet
  below surface
• No groundwater use in area or active water supply
  wells on site
• Remediation able to be completed prior to Initial
  Closing
• All passive and active remediation completed
• Monitoring wells closed out

51
Comprehensive Building Asbestos Survey

• Not required if sponsor statement that no
  Pre-1978 structures or only 1-4 units residential
  on site
• Must be a thorough inspection throughout
  structures
• Asbestos screen not acceptable
• Friable or affected by rehabilitation/demolition
  abate
• Other asbestos OM plan
• Abatement allowable cost to limit of Capital
  Advance

52
Choosing an Environmentally Safe Site

• Accessed through WEB page of 202/811 SuperNOFA
• Discusses Phase I ESAs, especially for 202/811
  programs
• Special discussions on
• Toxic hazardous substances
• USTs
• Asbestos
• LBP

53
(No Transcript)
54
Choosing an Environmentally Safe
SiteSupplemental Guidance

• Accessed through WEB page of 202/811 SuperNOFA
• Discusses manmade hazards as well as items that
  HUD may look at during environmental review

55
Choosing an Environmentally Safe
SiteSupplemental Guidance (contd)

• Natural Resources
• Manmade Hazards

56
HUD Form 4128

• Used to record environmental review
• HUD appraiser performs site visit and records
  results on the Sample Field Notes Checklist

57
HUD Form 4128 (contd)

• HUD may request additional environmental
  information with type of information found on
  4128 and Sample Field Notes Checklist
• WEB address listed in the SuperNOFA as
  http//www.hud.gov/utilities/intercept.cfm?/office
  s/cpd/energyenviron/environment/compliance/forms/4
  128.pdf

58
test

• Test

59
test

• Test
• Test
• test
• Test
• test

60
test

61
HUD Form 4128, contd.

• HUD appraiser completes during Technical
  processing
• If cannot be completed during technical
  processing due to complexity
• 202 Rejected and not rated/ranked
• 811 Placed in Category B for selection purposes

62
HUD Form 4128 Conclusions

• Acceptable as submitted
• Acceptable with conditions safeguards placed on
  approval documents
• Not acceptable, then
• 202 Projects rejected and not rated/ranked
• 811 Placed in Category B for selection purposes

63
Biological Assessment Requirement

• A biological assessment (BA) will be required for
  all Western Washington sites
• Without one, HUD staff will not be able to
  schedule a consultation with the USMF and USFW
• If one is not submitted with the application or
  soon thereafter, there will not be enough time to
  complete the 4128 process

64
Historic Preservation

• SHPO
• Letter to SHPO/THPO (on tribal land)
• Response
• If no response
• Sponsor statement indicating that it attempted,
  but SHPO/THPO did not respond

65
Historic Preservation (contd)

• Sample letter to SHPO/THPO
• Accessed through HUD WEB page of 202/811
  SuperNOFA
• Developed by HUD HPO
• Includes all information necessary for SHPO/ THPO
  to provide comment
• Allows for dual response to sponsor HUD
• Some Field Offices might have other sample letters

66
Historic Preservation (contd)

• If no or incomplete response HUD will then
  initiate process

67
Historic Preservation (contd)

• NRHP or no NRHP properties (National Register of
  Historic Places)
• If NRHP - Effect or No Effect
• If Effect Not Adverse or Adverse
• If Adverse MOA (Memorandum of Agreement) to
• mitigate adverse effects or Failure to Agree
• process
• Can be a long process

68
Historic Preservation (contd)

• If not sufficient time to complete all above
  steps of historic preservation process during
  technical processing
• 202 Reject
• 811 Placed in Category B for selection purposes

69
Historic Preservation (contd)

• If HUD possesses knowledge that a site might
  have Religious or Cultural Significance to Indian
  tribe or Native Hawaiian Organization HUD will
  request their comments

70
HUD Historic Preservation Archeological Policy

• HUD rarely requires even if requested by SHPO
• HUD HP fact sheet 6 REVISED
• http//www.hud.gov/offices/cpd/environment/review/
  hpfactsheet06.pdf
• Proposed or adjacent site already determined
  eligible/listed
• Preliminary site work (e.g. previous surveys or
  predictive models) has established eligibility

71
Floodplains and Wetlands

• HUD cannot approve sites in FEMA 100-year
  floodplain in non-participating or suspended
  jurisdictions

72
Floodplains and Wetlands (contd)

• Sponsors should try to select sites out of
• 100-year floodplain
• 500-year floodplain for critical actions
  special care i.e..., not independent living
  projects
• Wetlands

73
Floodplains and Wetlands (contd)

• HUD Processing at application stage
• if known practicable alternatives
• 202 Reject
• 811- Placed in Category B for selection purposes
• if not sure that practicable alternatives must
  complete first 6 steps of 8-step process

74
Floodplains and Wetlands (contd)

• If not sufficient time to complete first six
  steps during technical processing
• 202 Reject
• 811 Placed in Category B for selection purposes

75
Floodplains and Wetlands (contd)

• For new construction projects deemed acceptable
• based on no practicable alternatives, condition
  on
• approval documents
• CLOMA/CLOMR prior to firm
• FLOMA/FLOMR prior to final closing
• Flood insurance during construction

76
CPDs Role in 202/811 Application Reviews

• Three areas of review
• 1) Acquisition and Relocation
• 2) Certification of Consistency
• with the Consolidated Plan
• 3) RC/EZ/EC-II Bonus Points

77
Acquisition and Relocation

• Applicants must comply with the Uniform
  Relocation Assistance and Real Property
  Acquisition Policies Act of 1970 (URA or Uniform
  Act)

78
The Uniform Act Covers

• The acquisition of real property
• (with or without existing structures)
• The permanent and involuntary displacement, or
  temporary relocation, of both residential and
  non-residential persons

79
Acquisition Exception

• Sponsors are exempt from complying with Subpart
  B (sections 24.102-24.108) of the Uniform Act
  only if an identified site can be acquired
  voluntarily in accordance with Sec. 24.101 of
  Subpart B
• A failure to comply with 24.101 can trigger the
  requirements of Subpart B (sections
  24.102-24.108)

80
The Voluntary Process49 CFR 24.101

• The buyer is required to inform the Seller, prior
  to executing an agreement to purchase,
• That it does not have the power of eminent domain
  and, it will not be able to buy the property if
  negotiations fail to result in an amicable
  agreement
• Of the Sponsors estimate of fair market value of
  the property to be acquired

81
Estimating Fair Market Value (FMV)

• An appraisal is not required by the URA to
  establish the FMV of a property, but the
  acquiring agencys acquisition file must include
  an explanation, with reasonable evidence, of the
  basis for the estimate
• If the negotiated price is above the estimate of
  FMV, its best that the above-value difference be
  paid with non-federal funds

82
Application Instructions Acquisition (Exhibit 4)

• Applications must include evidence of compliance
  with the voluntary acquisition requirements of
  the URA, i.e., the Seller was advised
• That the Sponsor does not have the power of
  eminent domain and that it will not be able to
  buy the property if negotiations fail to result
  in an amicable agreement
• Of the Sponsors estimate of fair market value of
  the property to be acquired

83
Exhibit 4 Instructions (contd)

• HUD requires that the Seller must be offered the
  right to withdraw from any written purchase
  agreement if, before that agreement was executed,
  the Seller was not advised that the acquisition
  is voluntary in nature, and informed of the
  Sponsors estimate of FMV of the property to be
  acquired.

84
Exhibit 4 Instructions (contd)

• If it was necessary that the Sponsor offer the
  Seller an opportunity to withdraw (in accordance
  with HUDs corrective action instructions), the
  Sponsor is encouraged to include such document(s)
• Inclusion of such documents can help affirm to
  HUD that the Sponsors firm commitment is valid
  in respect to the voluntary acquisition
  requirements found at 49 CFR 24.101

85
Projects Involving Relocation

• Owner Occupants Owner occupants who sell their
  property voluntarily are not entitled to
  displacement assistance
• Residential and Non-residential Tenants All
  displaced tenants are entitled to displacement
  assistance, as required by the URA

86
Relocation Planning

• Nonresidential Planning
• Personal interview required 24.205(c)(2)(i)
• Site requirements
• Outside specialists
• Personalty/realty issues
• Time required to vacate
• Site availability
• Advance payment needs

87
Relocation Planning

• Residential Tenant Planning
• Residential Tenant Survey
• Determine Household Income
• Estimate Monthly Housing Cost
• Average Monthly Utilities
• Monthly Lease or Rent Amount
• Identify Special Needs
• Determine Replacement Housing Needs
• Estimate Cost of Replacement Housing

88
Relocation Planning

• Prepare Relocation Budget Estimate
• Non-residential move/reestablishment cost
  (personal interview)
• Residential move cost (FHWAs Fixed Move
  Schedule)
• Residential housing cost increase for 42-month
  period
• Compare Lesser of households ability to pay
  (if low income) vs. monthly housing cost paid at
  displacement unit
• With Estimated monthly housing cost of a
  comparable unit that is in decent, safe, and
  sanitary condition

89
Required Relocation Notices

• Issue General Information Notices (GIN)
• Each GIN must include advisory services such as
  that outlined in HUDs brochure Relocation
  Assistance to Tenants Displaced From Their Homes
• All GINs should be issued at the date the
  application is submitted
• A receipt is required to document delivery of a
  GIN

90
Relocation Guidance

• Relocation can be both
• Costly
• Complex
• Sponsors may wish to call HUDs Office of CPD for
  relocation guidance before entering into a
  purchase agreement
• URA guidance for HUDs programs can also be found
  at www.hud.gov/relocation

91
Application Instructions Relocation (Exhibit 7)

• If applicable, indicate that no relocation will
  occur and why (e.g., property is vacant land, or
  property was unoccupied and no persons were made
  to move for the project).

92
Exhibit 7 Instructions (contd)

• Identifies all persons (families) individuals,
  businesses, and non-profit organizations) by
  race/minority group, and status as owners or
  tenants occupying the property on the date of
  submission of the application for a capital
  advance.

93
Exhibit 7 Instructions (contd)

• Indicates the estimated cost of relocation
  payments and other services and the basis for the
  estimate

94
Exhibit 7 Instructions (contd)

• Indicates the source of funds to be used to pay
  relocation costs. (You must provide evidence of
  firm commitment if relocation costs will be
  funded from sources other than 202/811 capital
  advance.)

95
Exhibit 7 Instructions (contd)

• Identifies the staff or organization that will
  carry out the relocation activities
• Identifies all persons who were made to move from
  the site within the past 12 months and explain
  reason for such moves

96
Exhibit 7 Instructions (contd)

• Indicates that all persons occupying the site
  have been issued the appropriate General
  Information Notice and advisory services
  information, receipt required, either at the time
  the option to acquire the property is executed,
  or at the time the application is submitted.

97
Exhibit 7 Instructions (contd)

• NOTE When evaluating applications, HUD will
  consider the total cost of proposals (i.e., cost
  of site acquisition, relocation, construction and
  other project costs).

98
Achieving Results andProgram Evaluation

• Certification of Consistency With The
• Consolidated Plan
• Exhibit 8 (e)
• RC/EZ/ECII Strategic Plan 2 Bonus Points
• Exhibit 8 (h)

99
Exhibit 8(e) Form HUD2991

• Form HUD2991 is a required form
• The Certification of Consistency with the
  Consolidated Plan must be completed and
  submitted with your application, in order to
  comply with the submission instructions
• This Exhibit requires the name, title, and
  signature of the authorized certifying official

100
Exhibit 8(e) Form HUD2991

• Who is the certifying official?
• The certifying official of the jurisdiction is
  the person authorized to sign on behalf of the
  entitlement grantee

101
Exhibit 8(e) Form HUD2991

• The local HUD Office of Community Planning and
  Development (CPD) can provide a list of names and
  phone numbers of the contact persons for the
  respective Entitlement grantee
• Sponsors should contact the local State office
  responsible for HUD program grants and compliance
  to determine who to contact for those areas not
  located in Entitlement communities (i.e., rural
  areas)

102
2 Bonus Points for Projects Located in a
RC/EZ/ECII

• 2 bonus points are
• available for projects
• that are located in a
• RC/EZ/ECII
• Form HUD2990
• (Exhibit 8(h)) must
• be submitted to earn
• these bonus points

103
Exhibit 8 (h) Form HUD2990

• Form HUD-2990 is NOT a required form
• Only Sponsors who have projects located within a
  RC/EZ/ECII area should complete and submit this
  form
• Only if the form is properly completed and
  submitted can the 2 bonus points be earned

104
Exhibit 8 (h) Form HUD2990

• For projects in a RC/EZ/ECII, this form will
• Certify that the proposed activities are
  consistent with the strategic plan of a federally
  designated RC/EZ/ECII
• Certify that the proposed activities will be
  located within the RC/EZ/ECII

105
Exhibit 8 (h) Form HUD2990

• This form requires the name, title, and signature
  of the authorized certifying official
• Who is the certifying official?
• The official authorized to certify that the
  project is in compliance with the RC/EZ/ECII
  strategic plan, is located in an RC/EZ/ECII, and
  serves the residents located in the RC/EZ/ECII
  area

106
Exhibit 8 (h) Form HUD2990

• Sponsors who wish to determine if their site is
  located within an RC/EZ/ECII area, or who need
  to determine who the contact person is for a
  specific RC/EZ/ECII, may go online to HUDs
  Address Locator at www.hud.gov/crlocator

107
Exhibit 8 (h) Form HUD2990

• From this web site, a sponsor can link to the
  two following web sites to obtain general
  information on RC/EZ/ECII programs
• Renewal Communities and Urban EZ/ECs administered
  by the U.S. Dept. of Housing and Urban
  Development www.hud.gov/cr
• Rural EZ/ECIIs administered by the U.S. Dept. of
  Agriculture www.ezec.gov

108
Exhibit 8 (h) Form HUD2990

• While this online tool can help verify if a
  particular location is eligible for the tax
  incentives offered in RC/EZ/ECII areas, it
  should be noted that this web site lists both the
  current and past designations in the designation
  history

109
Questions Regarding the URA

• Acquisition and Relocation Guidance
• Contact the local HUD Office of Community
  Planning and Development, or a Regional
  Relocation Specialist (RRS)
• To find the RRS for your area,
• visit HUDs web site at
• www.hud.gov/relocation

110
Questions on RC/EZ/ECII Designations

• Information on HUDs RC/EZs
• Contact the local HUD
• Office of Community
• Planning and
• Development

111
Common Mistakes

• Failure to read the General Section and the
  Program NOFA THOROUGHLY
• Failure to obtain a DUNS No. Register early
• If HUD waiver given to submit paper application
  submitting less than original 4 copies

112
Common Mistakes (contd)

• Submitting an application without having the
  appropriate IRS tax exemption because the IRS is
  still processing your request
• Submitting an application with no organizational
  experience (eg., newly formed and no experienced
  Co-Sponsor)

113
Common Mistakes (contd)

• Failure to submit the electronic application in
  accordance with the requirements detailed in the
  General Section
• Failure to submit all of the required exhibits

114
Common Mistakes (contd)

• Failure to properly label faxed and/or scanned
  exhibits
• Not using the compatible version of Adobe Reader
• Not allowing for sufficient time to
  electronically submit your application

115
Common Mistakes (contd)

• You have outstanding delinquent Federal debt with
  no approved workout plan for repayment prior to
  deadline
• Failure to submit your appl. to State Point of
  Contact (SPOC), if required, by deadline date

116
Common Mistakes (contd)

• Failure to meet application deadline
• Failure to submit a Phase I (no substitutions)
  completed within last 12 months for 202s and 811s
  with site control
• Your application will be rejected if a 202 or
  downgraded to site identified if an 811

117
Common Mistakes (contd)

• For previous fund reservations that went to
  initial closing after 24, 36 or 48 months
• Reasons were not provided for delay
• No indication as to whether amendment was needed

118
Common Mistakes (contd)

• For 202, failure to have site control or
  submitting control of a poor site
• For 202s and 811s with site control, the site
  control failed to meet minimum requirements
  (e.g., no reverters, etc., option must extend
  beyond 6 months from application deadline and be
  renewable)

119
Common Mistakes (contd)

• For 202, proposing to develop a licensed assisted
  living facility
• Proposing independent living units with shared
  bathrooms and kitchens each must have a
  separate bathroom and kitchen

120
Common Mistakes (contd)

• Proposing a 202 scattered site project with less
  than 5 units per site
• Site not properly zoned and no indication of
  likelihood that zoning will be changed

121
Common Mistakes (contd)

• For an 811 proposing a group home exceeding 6
  residents
• Requesting more units than allocated to the
  applicable HUD Office
• (For 202, this applies to metro and non-metro
  categories separately)

122
Questions?