2.15 2.15
GRANTS\Grant—Accept ANvard and Sign HOME Grant Agreement—7-6-15
RESOLUTION AUTHORIZING TOWN SUPERVISOR TO SIGN GRANT
AGREEMENT BETWEEN TOWN OF QUEENSBURY AND NEW YORK
STATE HOUSING TRUST FUND CORPORATION, ESTABLISHING HOME
SPECIAL GRANT FUND AND SETTING APPROPRIATIONS AND
ESTIMATED REVENUES FOR GRANT AWARD
RESOLUTION NO.: ,2015
INTRODUCED BY:
WHO MOVED ITS ADOPTION
SECONDED BY:
WHEREAS, by Resolution No.: 163, 2014 the Queensbury Town Board authorized
submission of an application for HOME funds through the New York State Office of Community
Renewal(NYS OCR), and
WHEREAS, by Resolution 163, 2014 the Town Board also authorized an amount not to
exceed $ 75,000 to be set aside from the Town of Queensbury Revolving Loan Fund (RLF) Account
No: 019- 0000- 0201 for the purpose of a HOME match should 2013 HOME funds be awarded, and
WHEREAS, such Revolving Loan Fund was previously and duly established by Resolution
582,2004, and
WHEREAS, the grant application was submitted and the NYS OCR awarded a $300,000
grant to the Town of Queensbury, and
WHEREAS, the Town has received a proposed Grant Agreement from New York State
concerning the awarded grant funds and such Agreement is in form acceptable to Town Counsel, and
WHEREAS, the Town Board wishes to authorize the Town Supervisor to execute the Grant
Agreement, establish a HOME Special Grant Fund and set appropriations and estimated revenues for
the grant award, and
NOW, THEREFORE, BE IT
RESOLVED, that the Queensbury Town Board hereby approves of the Grant Agreement
between the Town of Queensbury and the New York State Housing Trust Fund Corporation,
represented by the New York State Office of Community Renewal and authorizes and directs the
Town Supervisor to sign the Grant Agreement in form substantially presented at this meeting, and
BE IT FURTHER,
RESOLVED, that the Town Board establishes HOME Grant Fund #017 and sets
appropriations and estimated revenues in the amount of $300,000 for the New York State HOME
Program Grant funds received by the Town through the New York State Office of Community
Renewal, such appropriations and estimated revenues to be recorded in accounts to be determined by
the Town Budget Officer, and
BE IT FURTHER,
RESOLVED, that the Town Board further authorizes and directs the Town Budget Officer to
amend the Town Budget, make any adjustments, budget amendments, transfers or prepare any
documentation necessary to establish such appropriations and estimated revenues and effectuate all
terms of this Resolution.
Duly adopted this 6h day of July, 2015, by the following vote:
AYES :
NOES :
ABSENT :
SHARS ID: 20133127
NEW YORK STATE HOME PROGRAM
STATE RECIPIENT AGREEMENT
AGREEMENT made effective as of this date , 2015 between the
Housing Trust Fund Corporation (the "Corporation"), a public benefit corporation created and
existing as a subsidiary of the New York State Housing Finance Agency pursuant to Section 45-a
of the New York Private Housing Finance Law, with an office at Hampton Plaza, 38-40 State
Street, Albany, New York 12207, and Town of Queensbury (the "State Recipient"), a unit of
general local government, having its principal place of business at 742 Bay Road, Queensbury
New York 12804.
WITNES SETH
WHEREAS, pursuant to Subtitle A of Title II of the Cranston-Gonzalez National Affordable
Housing Act as amended ("Federal Statute") and the regulations promulgated thereunder
("Federal Regulations") (collectively, the "Statutes"), the Corporation is authorized to enter into
contracts to provide grants and loans for programs which qualify under the Statutes as eligible
activities; and
WHEREAS, the State Recipient applied to the Corporation to administer a NYS HOME Local
Program(the"Program"), as described in the attached Exhibit A; and
WHEREAS, the Corporation has agreed to make an award in the maximum amount of Three
Hundred Thousand Dollars ($ 300,000.00) the "NYS HOME Local Program Funds"or "Home
Funds," in consideration of, among other things, the State Recipient undertaking to comply with
all of the terms and conditions of this Agreement and the Statutes, as well as the rules,
regulations, policies and procedures promulgated by the Corporation, as amended from time to
time; and
WHEREAS, the State Recipient agrees to comply with the requirements of the Corporation and
with the Corporation's NYS HOME Local Program Guidelines (as now in effect and as may be
amended from time to time) for the term of this Agreement;
NOW THEREFORE, the parties agree that the Program will be administered in accordance
with the following terms and conditions:
1. Contents of Agreement: The following documents are attached or incorporated by
reference into this Agreement as if fully set out herein: a) the State Recipient's approved
application and accompanying submissions, as modified by the terms of this Agreement or any
subsequent amendment approved by the Corporation; b) the Corporation's NYS HOME Local
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i r
Program Guidelines (as now in effect and as may be amended from time to time); c) Exhibit A,
"Program Summary and Description of Target Area;" d) Exhibit B, "Administrative Plan;" e)
Exhibit C, "Program Budget;" f) Exhibit D, "Program Schedule;" g) Exhibit E, "Administrative
Plan Amendments;" and h) Exhibit F, the Corporation's approved Note and Mortgage and
Restrictive Covenant templates which State Recipient shall use.
2. Use of HOME Funds: The State Recipient shall (a) administer the Program in
accordance with the Administrative Plan,this Agreement and all attachments and Exhibits hereto,
(b) complete the Program in accordance with the Program Schedule, which is the agreed to
production schedule and (c) adhere to the Program Budget, which includes the approved sources
and uses of HOME Funds, and the requirements and use of any matching funds. The State
Recipient shall provide additional funds if the cost of the Program exceeds the total Program
costs as set forth in the Program Budget.
3. Amount of HOME Funds: a) the amount of HOME Funds that the Corporation has
agreed to provide the State Recipient under this Agreement is expressly conditioned upon the
Corporation's receipt of HOME Funds from HUD pursuant to the Statutes, b) the HOME Funds
to be disbursed hereunder shall not exceed the amount first set forth in this Agreement, and any
additional funds required to complete the Project will be the sole responsibility of the State
Recipient and c) the amount of HOME Funds to be used is based upon the cost estimates
provided by the State Recipient in its application. The Corporation reserves the right to reduce
the amount of HOME Funds: (i) to conform to any revision to which the parties may agree with
respect to the State Recipient's application; or (ii) if the actual costs for the approved activities
are less than those budgeted for in the State Recipient's application.
4. Affordability: The State Recipient shall comply with the Period of Affordability
requirements as set forth in 24 CFR 92.252 or 92.254, Qualification as Affordable Rental
Housing or Qualification as Affordable Homeownership Housing, as applicable,,and shall require
that the HOME- assisted housing meet the affordability requirements based on the amount of
HOME Funds invested per unit with the exception that homeowner-occupied housing
rehabilitation programs have a 5 year period of affordability regardless of the amount invested. If
the HOME- assisted housing no longer meets the affordability requirements of this section, the
State Recipient must repay the HOME Funds to the Corporation. The State Recipient must
secure the investment of HOME Funds with either the Corporation's provided Note and
Mortgage (recapture of funds) or a Restrictive Covenant (resale restriction) as described at
Exhibit F. The choice of security instrument must be approved by the Corporation prior to the
start of the Program, be applied Program- wide and in compliance with the NYS HOME Local
Program Homebuyer Recapture/Resale Provisions dated July 21,2014..
5. Program Income and Recaptured Funds: If not provided elsewhere in this Agreement,
all Program income, proceeds, unexpended funds, recaptured funds or other assets, interest
income or other income deriving from funds provided pursuant to this Agreement received by the
State Recipient shall be returned to the Corporation. The State Recipient shall furnish financial
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records detailing all Program income and must remit Program income and/or recaptured funds to
the Corporation,within 30 days of receipt by the State Recipient.
6. Written Agreements: Before the State Recipient provides HOME Funds to for-profit
owners or developers, nonprofit owners or developers or sponsors, homeowners, homebuyers,
tenants (or landlords) receiving tenant-based rental assistance, or contractors, the State Recipient
must have a written agreement that meets the requirements of 24 CFR 92.504. The State
Recipient must comply with the requirements, as established by the Corporation for program
administration and delivery of services to include requirements for income determination,
underwriting, subsidy layering, rehabilitation standards, refinancing guidelines, homebuyer
program policies and affordability. Repayment of HOME Funds or recaptured HOME Funds
must be remitted to the Corporation to be reallocated according to the New York State HOME
Local Program Action Plan.
7. Uniform Administrative Requirements: The State Recipient shall comply with the
Uniform Administrative Requirements as set forth in 2 CFR Part 200 and the Uniform
Administrative Requirements, Cost Principals and Audit Requirements as described in 24CFR
Part 92.505, as applicable.
8. Other Federal Requirements: The State Recipient shall, during the term of this
Agreement, carry out each activity in compliance with all Federal laws, the Statutes and
regulations as applicable described in 24 CFR Part 92, subpart H except the provisions relating to
environmental review under §92.352 and the intergovernmental review process under §92.357.
The State Recipient is responsible to complete a programmatic Tier 1 environmental review (ER)
in conjunction with the New York State Homes and Community Renewal's Environmental
Analysis Unit (EAU). The State Recipient must approve and document that a Tier 2 site specific
environmental review has been done on each HOME- assisted unit prior to the start of
construction and/or housing rehabilitation.
9. Non Discrimination and Equal Access: The State Recipient shall comply with the
following, as applicable: a)Fair Housing and Equal Opportunity: Title VI of the Civil Rights
Act of 1964,Amended(42 U.S.C. 2000d et seq.), the Fair Housing Act(42 U.S.C. 3601-3620),
Equal Opportunity in Housing(Executive Order 11063, as amended by Executive Order 12259
and the Age Discrimination Act of 1975, as amended(42 U.S.C. 6101). b)Affirmative
Marketing and Minority Outreach: 24 CFR §92.351., which includes actions to provide
information and otherwise attract eligible persons in the program service area to the available
housing or assistance without regard to race, color, national origin, sex,religion, familial status
or disability. The State Recipient must identify those persons across the protected classes that are
expected to be"least likely to apply"and describe how they will inform potential participants
about fair housing and affirmative marketing policies. The State Recipient must also describe
specific procedures or activities that will be used to inform and solicit applications "who are not
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1 T
likely to apply" without special outreach and keep records that document the affirmative efforts
and how the State Recipient will assess the results of the affirmative actions and make corrective
actions, if necessary. If the program is targeted to a special need or population,the State
Recipient must describe how the program will be marketed across all protected classes within the
special need preference. If the program targets persons with disabilities,the State Recipient must
describe how the program will be marketed to all disabilities(however,advertisements can
identify the specific services available based on the targeted disability. c)Handicapped
Accessibility: Americans with Disabilities Act(42 U.S.C. 12131; 47 U.S.C. 155,201,218 and
225, the Fair Housing Act and accessibility requirements at 24 CFR part 8,which implements
Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794). Covered multifamily dwellings,
as defined at 24 CFR 100.205,must also meet the design and construction requirements at 24
CFR 100.205, which implement the Fair Housing Act(42 U.S.C.3601-19)
10. Employment and Contracting:The State Recipient shall comply with the following, as
applicable: a)Equal Opportunity: Equal Employment Opportunity, Executive Order 11246, as
amended,Section 3 of the Housing and Urban Development Act of 1968,Minority/Women's
Business Enterprise: Executive Orders 11625, 12432 and 12138, b)Labor Requirements: Davis
Bacon and Related Acts(40 USC 276 (A)-7), Contract Work Hours and Safety Standards Act, as
amended(40 USC 327-333), Copeland(AntiKickback)Act(40 USC 276c), Fair Labor
Standards Act of 1938, as amended(29 USC 201,et. Seq.),and c) Contracting and Procurement
Practices: Procurement Standards for units of general local government as set forth in 24 CFR
Part 200: Uniform Administrative Requirements,Cost Principals and Audit Requirements.
11. Conflict of Interest: No person(s)who exercise or who have exercised any functions or
responsibilities with respect to activities assisted with HOME Funds or who are in a position to
participate in decision making process or gain inside information with regard to HOME- assisted
activities may obtain a financial interest or financial benefit from a HOME assisted activity, or
have a financial interest in any contract, subcontract,or agreement with respect to the
HOME-assisted activity or the proceeds from such activity, either for themselves or those with
whom they have business or immediate family ties during their tenure or for one year thereafter.
Immediate family ties include(whether by blood,marriage,or adoption)the spouse,parent
(including a step-parent), child(including a stepchild),brother, sister(including a step brother or
step sister)grandparent, grandchild, and in-laws or a covered person. Further,no officer,
employee,agent,or consultant of a covered person may occupy a HOME- assisted affordable
housing unit in the Project. However,this provision does not apply to an employee or agent of a
rental developer who occupies a housing unit in a HOME-assisted project as a project manager
or maintenance worker.
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12. Debarred Contractors: Each contractor employed must be documented that he/she is
not on the Federal debarred, suspended or ineligible contractor list.
13. Project Requirements: The State Recipient shall comply with 24 CFR Part 92, Subpart
F as applicable by activity and as amended. For Rental projects,the State Recipient must detail
if units are fixed or floating, describe tenant selection and termination provisions, describe how
initial rents and utility allowances will be established and reviewed annually and all rental units
must be leased within 18 months of completion or the HOME Funds invested in those units must
be repaid. For homebuyer projects, the State Recipient must agree that all HOME-assisted units
must be sold within 9 months of construction completion or the unit must be converted into a
HOME- assisted rental unit or the funds invested in the unit must be repaid. The State Recipient
must comply with the Corporation's underwriting,predatory lending and refinancing policies, as
applicable.
14. Homebuyer Counseling: All homebuyers that receive HOME homebuyer assistance or
purchase a unit developed with HOME Funds must receive pre-purchase homeownership
counseling from a HUD Certified housing counseling agency. The prospective homebuyer must
receive a"Certificate of Completion"from the counseling agency stating they are"ready to
proceed"to purchase a home.
15. Fees: The State Recipient may not charge servicing,origination, or other fees for the
purpose of covering costs of administering the Program, except that the State Recipient may
charge nominal application fees (although these fees are not an eligible HOME cost)to project
owners to discourage frivolous applications. The amount of application fees must be appropriate
to the type of application and may not create an undue impediment to a low-income family's
participation in the program. The HUD Certified Counseling Agency may charge prospective
homebuyers a reasonable fee for housing counseling.
16. Construction Order of Priority: In determining the scope of work for housing
rehabilitation,the State Recipient must address, in order of priority: health and safety issues,
code violations and energy efficiency improvements.
17. Property Standards: The State Recipient shall meet the property standards of 24 CFR
Part 92.251, as applicable and as amended for HOME- assisted activities, to ensure that the
housing is decent, safe and sanitary and meets all applicable New York State and local building
and zoning codes upon completion. Documentation is required at completion evidencing that the
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unit is in compliance with New York State and/or local building and zoning codes and the
residence has been certified for occupancy. All housing rehabilitation performed under this
Agreement must be in compliance with the Corporation's Rehabilitation Standards for One-to
Four-Unit Structures. Housing inspections must be performed in compliance with 24 CFR Part
92, as applicable by activity and throughout the period of affordability.
18. Manufactured Housing: (mobile home replacement) must meet the Manufactured
Home Construction and Safety Standards at 24 CFR Part 3280 and must meet New York State
Code upon completion and be certified for occupancy. The new manufactured home must be
installed on a permanent foundation that meets the requirements for foundation systems as set
forth in 24 CFR 203.43f(c)(i). To benefit from the Program, all mobile homes must be replaced
with a new, HUD-certified, ENERGY STAR qualified manufactured homes. All ground leases
must be for a period at least equal to the applicable Period of Affordability described in Section 4
of this Agreement.
19. Lead Based Paint: The State Recipient shall comply with lead based paint requirements
at 24 CFR Part 35; however the Program no longer allows the "presumption" of lead based
paint and requires related testing and certification.
20. Maximum Property Value: The State Recipient shall comply with 24 CFR 92.254;
qualification as affordable housing and will use the HUD determined limits for newly
constructed and existing single family housing units. For housing rehabilitation, the State
Recipient will ensure that the value of the unit after rehabilitation or price at sale does not exceed
95% of the median purchase price for the service area as determined by the annually published
HUD limits.
21. Requests for Disbursement of Funds: The State Recipient shall not request
disbursement of funds under this Agreement until the funds are needed for payment of eligible
costs. Advances of funds are not permitted. Requests for disbursement of funds for owner
occupied housing rehabilitation will require submission of a certification, signed by a
construction professional and the homeowner stating that the work has been satisfactorily
completed. The amount of each request shall be limited to the amount needed to pay such costs
incurred. Payments of funds under this Agreement are also subject to the State Recipient's
compliance'with the requirements of HUD's Integrated Disbursement and Information System or
any other similar or successor system used by HUD and all further documentation which may be
demanded by the Corporation related to any request for funds. The Corporation will not disburse
funds if the State Recipient is in default of any of the provisions of this Agreement. The State
Recipient must commit all funds within 12 months of the start date of this Agreement and expend
all funds within 24 months of the start date of this Agreement.
22. Reversion of Assets: Upon expiration of this Agreement, the State Recipient shall
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transfer to the Corporation any HOME Funds on hand at the time of expiration and any accounts
receivable attributable to the use of HOME Funds. Any real property under the control of the
State Recipient that was acquired or improved in whole or in part with HOME Funds in excess of
$5,000 shall be used to meet the requirements described in Section 92.252 or 92.254 of 24 CFR
Part 92 or disposed of in a manner that results in the Corporation being reimbursed in the amount
of the current fair market value of the property less any portion of the value attributable to
expenditures of non-HOME Funds for acquisition of, or improvement to, the property. If the
Program is terminated prior to completion, the State Recipient shall repay all HOME Funds
provided pursuant to this Agreement to the Corporation, as applicable.
23. Records and Reports: The State Recipient shall retain all applicable administrative and
project records to include underwriting guidelines and evaluation, property description and
location, copies of written agreements, records regarding project requirements, subsidy layering
analysis, maximum subsidy determination, compliance with property standards and on-going
inspections, information about contractors and vendors to include verification of non-debarment,
verification of qualifications and experience, invoices and payment records, related
correspondence, audits, indirect cost analysis, operating budgets and a schedule for completion.
The State Recipient will maintain records of the use of funds pursuant to this Agreement submit
reports and cooperate with audits and inspections. The State Recipient shall submit performance
reports, in such format and at such times as the Corporation or HUD may prescribe and shall
provide to the Corporation any document, report or information that the Corporation deems
necessary. The State Recipient shall retain all applicable administrative and project records and
documentation pertinent to other Federal requirements, as specified in 24 CFR 92.508, for a
period of five (5) years after the termination of all activities and throughout the Period of
Affordability(POA). Representatives of the Corporation, HUD or their designees may examine
any records or information pursuant to this Agreement. The "Catalogue of Federal Domestic
Assistance Number"for the Program is 14.239.
24. Insurance: During the Term, the State Recipient shall take all adequate measures to
safeguard against the risk of liability for injuries or death of employees of the State Recipient,
contractors and subcontractors, and of any other persons. The State Recipient shall provide the
Corporation with a certificate for comprehensive general liability coverage in a minimum amount
of one million dollars naming the Corporation and the State of New York as additional insured's,
and fidelity bond/crime coverage in an amount not less than the largest anticipated disbursement
request for Program funds naming the Corporation and State of New York as loss payee, together
with certificates for automobile insurance (if applicable), fire insurance, workers' compensation
and disability benefits. Disbursements requested in excess of the fidelity bond/crime coverage
will be reduced to the maximum amount of the fidelity bond/crime coverage in effect. The
Corporation also reserves the right to further reduce such disbursement or to refuse payment of a
disbursement if it is determined that previous disbursements have not yet been distributed to
contractors or vendors, and such current disbursement will cause the fidelity bond/crime
coverage to be exceeded. All certificates shall be with a New York State licensed carrier of
insurance rated `A' or higher. Within two (2) business days of having received any notice of
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non-renewal, cancellation, termination, or rescindment for any type of insurance required herein,
the State Recipient shall provide the Corporation with a copy of such notice, either by facsimile
or email (in pdf format) to the signatory hereof, together with an explanation of any efforts taken
to reinstate such coverage. The State Recipient may not cancel, terminate or fail to renew any
insurance policy required herein, unless and until the State Recipient has received the
Corporation's written consent thereto.
25. Construction and Onsite inspections: For all housing rehabilitation and new
construction activities: at project completion and prior to completing the activity in IDIS, the
State Recipient shall perform an on-site inspection,by a construction professional,to ensure that
all contracted work has been completed and that the project complies with the property standards
at 24 CFR 92.251,the Corporation's Housing Rehabilitation Standards and New York State
and/or local building and zoning codes and is certified for occupancy. This on-site final
inspection report must be submitted to the Corporation at project construction completion.
26. Monitoring: The State Recipient,in coordination with the Corporation, shall monitor
and inspect the project in compliance with the Program's Monitoring Policy and shall assemble
and maintain the files to ensure records of compliance. The State Recipient will conduct the
monitoring activities of the individual projects it administers per the policy and agrees to supply
the Corporation with all monitoring documentation as requested. Units assisted must be
inspected to determine compliance with property standards. Tenant-based rental-assisted units
must meet the requirements of 24 CFR 92.209 and be initially inspected and re-inspected
annually. HOME- assisted rental units must meet the requirements of 24 CFR 92.504 and be
inspected at least once every three years during the Period of Affordability. HOME- assisted
homebuyer and homeowner-occupied housing rehabilitation units shall be annually verified to
meet principal residency requirements.
27. De-obligation: The State Recipient must comply with the terms of this Agreement or
risk de-obligation of funds. The Corporation reserves the right to de-obligate committed HOME
Funds for non-compliance with the terms of this Agreement. De-obligated funds will be
reallocated according to the NYS HOME Local Program Action Plan.
28. Program Close-Out Procedures_ The State Recipient shall comply with HOME project
close out procedures and verify the grant is 100% complete with all required project completion
reports and single audits submitted. The State Recipient must have been monitored with all
monitoring findings resolved. The Corporation will issue a close out letter to the State Recipient
detailing that the project is complete and then the Corporation will close out the contract and
de-obligate any remaining funds.
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•
29. Certification Regarding Lobbying: The State Recipient certifies that it will not, and to
the best of its knowledge has not, used federally- appropriated funds to pay any person or
organization for influencing or attempting to influence an officer or employee of any Federal
agency, a member of Congress, officer or employees of Congress, or an employee of a member
of Congress in connection with obtaining any Federal contract, grant or any other award. The
State Recipient further agrees that it shall disclose any lobbying with non-Federal funds that
takes place in connection with obtaining any Federal award.
30. Indemnification: To the fullest extent permitted by law, the State Recipient shall
defend, indemnify and hold harmless the State of New York, the Corporation and its agents and
employees from and against claims, damages, losses and expenses, including, but not limited to
attorneys' fees, arising out of or resulting from performance of this Agreement or the work to be
performed pursuant hereto, provided that such claim, damage, loss or expense is attributable to
bodily injury, sickness, disease or death, or to injury to or destruction of tangible property (other
than the work itself) including loss of use resulting therefrom, but only to the extent caused in
whole or in part by negligent or willful acts or omissions of the State Recipient, a contractor or
subcontractor or anyone directly or indirectly employed by them or anyone for whose acts they
may be liable, regardless of whether or not such claim, damage, loss or expense is caused in part
by a party indemnified hereunder.
31. Notice of Investigation or Default: (1) The State Recipient certifies to the best of its
knowledge, for the period beginning ten years prior to the date of this Agreement, the State
Recipient has not: (a) been the subject of any governmental agency's investigation or audit; (b)
defaulted under any mortgage, deed of trust, security agreement, loan agreement or credit
instrument executed in connection with any governmental agency's project; (c) breached any
agreement, credit agreement, lease or other instrument executed in connection with any
governmental agency's project; (d) been suspended, debarred or otherwise restricted by any
governmental agency from doing business with such agency; (e) been convicted of, or been the
subject of a complaint or indictment charging a felony; or (f) defaulted on an obligation covered
by a surety or performance bond or been the subject of a claim under an employee fidelity bond.
(2) The State Recipient shall notify the Corporation within five days after obtaining knowledge
of: (a) the commencement of any investigation or audit of its activities by any governmental
agency; (b) the alleged default by the State Recipient under any mortgage, deed of trust, security
agreement, loan agreement or credit instrument, whether executed in connection with the project
or otherwise; or(c) any alleged breach by the State Recipient of any agreement, credit agreement,
lease or other instrument executed in connection with any project. The State Recipient shall
insure that, in the event of any alleged default under any of such instruments, the mortgagee,
secured party,lender or lessor, as the case may be, shall simultaneously send to the Corporation a
copy of any notice of such alleged default sent to the State Recipient, and shall give the
Corporation a reasonable opportunity to cure such alleged default; if such mortgagee, secured
party, lender or lessor fails to send such simultaneous notice, then the State Recipient itself shall
immediately upon receipt send such notice to the Corporation. For the purposes of this
paragraph, the term "State Recipient" shall include all officers, board and council members,
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32.Default/Termination: (a) The following shall constitute an event of default hereunder:
(i) if the State Recipient fails, in the opinion of the Corporation, to comply with or perform any
of the provisions, conditions or covenants contained in this Agreement, the Statutes, or the rules,
regulations, policies and procedures of the Corporation; (ii) if at any time any representation or
warranty made by the State Recipient herein shall be incorrect or materially misleading; (iii) if a
lien for the performan ce of work or the furnishing or labor or materials is filed against the
Program or any improvement financed thereunder and remains unsatisfied, undischarged or
unbonded at the time of an y Request for Disbursement or for a period of twenty (20) days after
the date of filing of such lien; or (iv) if the State Recipient shall fail to comply with any of the
terms of any mort gage, deed of trust, security agreement, loan agreement, credit agreement or
other instrument executed in favor of any other party, whether or not shown in the Program
Budget (b) Upon the occurrence of an event of default, the Corporation may direct the State
Recipient to cure or remedy the default to the satisfaction of the Corporation within thirty (30)
days from the giving of the notice of default. In addition the Corporation shall have the right to
pursue any remedies available to it at law or in equity for any breach of this Agreement, including
the right to terminate this Agreement, the right to injunctive relief, the right to enforce the
provisions of this Agreement, the right to recover unspent HOME Funds or HOME Funds
expended or used in an unauthorized manner or for any unauthorized purpose an d the right to
recover damages suffered by the Corporation as a result of any breach of this Agreement by the
State Recipient. In accordance with 24 CFR §85.43, suspension or termination may occur if the
State Recipient materially fails to comply with any term of this Agreement, and this Agreement
may be terminated for convenience in accordance with 24 CFR §85.44. (c)The Corporation shall
have the right, but not the obligation, upon the happening of any event of default, in addition to
any other rights or remedies available to it,to operate and administer the Program an d perform or
cause.the performance of any and all work and labor necessary or desirable to protect the
Program; provided, however, that the foregoing shall not be deemed to impose on the
Corporation the obligation to prosecute to completion any action taken pursuant hereto and the
Corporation shall have no liability to the State Recipient arising out of the failure to complete
any work commenced pursuant to this subsection. All sums expended by the Corporation for
such purposes shall be deemed to have been provided to the State Recipient. For this purpose,
the State Recipient hereby constitutes and appoints the Corporation its true and lawful
attorney-in-fact with full power of substitution to complete the Program or make repairs in the
name of the State Recipient, and hereby empowers said attorney-in-fact as follows: to use any
funds which may remain undisbursed for the purpose of completing the Program substantially in
the manner called for by this Agreement; to employ or continue to employ such general
contractor, subcontractors, material suppliers, laborers, agents, architects and inspectors as shall
be required or may be reasonably desirable for said purposes; to pay, settle or compromise all
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existing bills and claims which are or may be liens against the Program, any improvement
financed thereunder, or against the State Recipient, or may be necessary or desirable for the
completion of any work or the clearance of title including the discharge of mortgages or release
of restrictive covenants; to procure such insurance as may in its judgment be desirable; to execute
all applications and certificates in the name of the State Recipient which may be required by any
contract or subcontract; and to do any and every act with respect to work on the Program which
the State Recipient may do in its own behalf. It is understood and agreed that this power of
attorney shall be deemed to be a power coupled with a secured interest which cannot be revoked.
Said attorney-in-fact shall also have power to prosecute and defend all actions or proceedings in
connection with work performed on the Program and to take such action and require such
performance as is deemed necessary. The State Recipient hereby conditionally assigns and
quitclaims to the Corporation all sums disbursed or to be disbursed hereunder and all retained
sums subject to the condition that said sums, if any, be used for work performed on the Program
and payment of related expenses as set forth herein; (d) For the purposes of subparagraph (c)
above, and in connection with(i) any and all contracts and subcontracts for the provision of labor
and the furnishing of materials, fixtures and articles in connection with the rehabilitation,
construction or conversion of any premises under the Program which are now in existence or
which may exist at any time or times in the future, together with any extensions or renewals
thereof(collectively the "Contracts"), and (ii) all licenses, approvals, authorizations, consents,
certificates and permits in connection with the rehabilitation, construction or conversion and
operation of the Program which are now in existence or which may exist at any time or times in
the future, together with any extensions or renewals thereof (collectively, the "Licenses"), the
State Recipient hereby assigns the Contracts and Licenses to the Corporation, provided,however,
the State Recipient shall enjoy and perform all of its rights and obligations under the Contracts
and Licenses until the happening of an event of default. (e) In the event of termination of this
Agreement for an event of default, the Corporation shall have liens on all of the real and personal
property, fixtures, furnishings, equipment, facilities and other property of the State Recipient and
any affiliates of the State Recipient to the extent of any HOME Funds provided pursuant to this
Agreement. The State Recipient hereby constitutes the Corporation as its attorney-in-fact,
coupled with a secured interest, for the purpose of executing and filing all documents and
performing all acts necessary to insure that such liens are perfected and effective. (f) The
Corporation shall have the right to withhold funds or to direct HUD to withhold funds regardless
of the existence of a breach of this Agreement or notice thereof to the State Recipient if, in the
judgment of the Corporation, it is in the best interest of the Corporation to do so.
33. Enforcement of the Agreement: In accordance with 24 CFR 85.43, suspension or
termination may occur if the State Recipient materially fails to comply with any term of this
Agreement. The Corporation may declare t this Agreement to be terminated for convenience in
Page 11 of 13
accordance with 24 CFR 85.44.
34. Duration of the Agreement: The term of this Agreement(the "Term") shall commence
on this date and shall expire two years from the date of execution as listed above, or upon
satisfaction of all indebtedness required to be repaid, whichever occurs later, but in any event
shall not expire prior to the end of the period of affordability specified in 24 CFR §92.252 or 24
CFR §92.254, if applicable, and not before the State Recipient relinquishes control over any
HOME Funds provided pursuant to this Agreement.
35. Assignment: The State Recipient shall not assign any right granted nor delegate any
obligation imposed herein without the prior written consent of the Corporation and any purported
assignment or delegation without the Corporation's prior written consent shall be void. The State
Recipient shall not transfer the controlling interest of the State Recipient or chan ge any general
partner or the controlling interest of any general partner of the State Recipient without the prior
approval of the Corporation. For the purpose of this section, a transfer of more than ten (10%)
percent ownership interest or a transfer of stock in the State Recipient, in whole or in part, by a
party holding ten(10%)percent or more of the stock of the State Recipient, or a transfer by more
than one stockholder of the State Recipient of ten(10%)percent or more of the stock of the State
Recipient, or any other similarly significant change in the ownership of such stock or in the
relative distribution thereof, or with respect to the parties in control of the State Recipient,
whether by increased capitalization, merger with another corporation, issuance of new or
additional stock or by any other methods, shall be deemed a transfer of ownership with respect to
this Agreement.
36. Non-liability: Nothing in this Agreement or otherwise shall impose any liability or
duty whatsoever on the Corporation or New York State Homes and Community Renewal or any
divisions or subsidiaries thereof, including but not limited to any liability for taxes, wages,
compensation, benefits, commissions, unemployment insurance, workers' compensation,
disability benefits, social security or other employee benefits for any person or entity. It is further
expressly understood that the Corporation makes no warranties, guarantees or other
representations of any kind with respect to: (a) any plans, drawings, specifications, financial
schedules, or other documents, materials or information accepted by the Corporation or
transferred, assigned, provided or otherwise made available to the State Recipient or any persons
in connection with the Program, (b) the feasibility of the Program, whether or not the financial
commitments as specified in the Program Budget are provided, or (c) any contractors, suppliers
or consultants accepted by the Corporation. The State Recipient and others, if they make use of
or rely on such documents, materials, information or approvals, will do so on their own
responsibility and at their own risk.
37. Modification: This Agreement may not be amended, modified or rescinded unless
such amendment,modification or rescission is in writing, and signed by the Corporation._
38. No Waiver. No waiver of any term, provision or condition of this Agreement by the
Page 12 of 13
Corporation shall be effective unless the waiver is in writing, signed by the Corporation and
delivered to the State Recipient. No waiver by the Corporation of any term, provision, or
condition or of any failure by the State Recipient to perform any of the terms, provisions, or
conditions of this Agreement shall be construed to be a waiver by the Corporation of any other or
subsequent breach of any term, provision, or condition or failure to perform any of such terms,
provisions, or conditions.
39. Miscellaneous: (a) All notices or other communications with respect to the subject
matter of this Agreement shall be in writing and shall be deemed to have been given when
personally delivered or sent by certified mail, return receipt requested, to the parties at the
addresses first set out herein or at such other address of which party to receive such notice shall
have notified the party giving such notice in writing, except that notice of such change of address
shall be deemed to have been given when it is received. (b) No action shall lie or be maintained
against the State of New York or the Corporation upon any claim based upon or arising out of
this Agreement or the work performed hereunder or anything done in connection herewith unless
such action shall be commenced within six (6) months after the termination of this Agreement or
one year from the accrual of the cause of action, whichever is earlier. (c) If any provision of this
Agreement or the application thereof to any person or circumstances shall to any extent be
invalid or unenforceable, the remainder of this Agreement, or the application thereof to persons
or circumstances other than those as to which it is invalid or unenforceable, shall not be affected
thereby, and each provision shall be valid and enforceable to the fullest extent permitted by law.
(d) Any action to be taken or consents to be given by the Corporation hereunder may be taken or
given by a representative or agent designated by the Corporation for such purpose. All consents
and approvals to be given by the Corporation hereunder must be in writing. (e) The captions and
headings of the various sections herein are for convenience only and shall not be deemed to
define, limit or construe the contents of such sections.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year set
forth above.
Housing Trust Fund Corporation
By:
Name: Christian M. Leo
Title: Vice President
Town of Queensbury
By:
Name: John Stough
Title: Supervisor
Page 13 of 13
Program Detail
PI Exhibit A
Summary and Description of Target
The Town of Queensbury proposed to use$300,000 in HOME LPA funds to provide
home improvements to 12 lower income eligible, single family owner occupied
properties.The Town has committed$75,000 in local funds to assist in housing
rehabilitation efforts. Households with incomes less than 50%of median are targeted.
Two lower income neighborhoods in the Town, West Glens Falls, and South
Queensbury,have been identified as the target areas for assistance. DHCR rehabilitation
standards will be followed.
Name of Local Program: Town of Queensbury Housing Program
County/Municipality to be served by this Program: Warren/Queensbury(Town)
Total number of units to be assisted with HOME funds: 12
Income Target Group Units
Public Assistance<=30%of Median Income 3
31%through 40%of Median Income 3
41%through 50%of Median Income 6
51%through 60%of Median Income 0
61%through 70%of Median Income 0
71%through 80%of Median Income 0
Income Target Groups
List of Target Populations and No.of Units:
Person with Physical Disabilities and who are Frail Elderly—6
No. Target Population—6
Exhibit B
Administrative Plan
Attachment 1 —Administrative Plan
(Next Page)
Town of Queensbury - LPA HOME 2013 Program
ADMINISTRATIVE PLAN
Single-family Owner-occupied Housing Rehabilitation Program
PROGRAM DESIGN
1. What program activities will be undertaken?
The Town of Queensbury proposes to utilize $300,000 in HOME funds to be matched
with $75,000 in local funds to rehabilitate a minimum of twelve(12) single-family owner-
occupied housing properties.
2. identify the maximum subsidy amount for each program participant.
The Program is designed to allow up to $25,000 per unit for owner-occupied properties
for moderate rehabilitation construction costs of existing housing units.
Costs for testing, such as, lead, asbestos, radon, etc., as well as any associated
engineering fees and inspection fees are additional "soft costs." The lead rules in 24
CFR Part 35 are considered in the per unit cost calculations, which determines the level
of rehabilitation assistance as per Subpart J of the rules.
The maximum amount of HOME funds that may be used to cover each property is
projected to not exceed $30,000 per unit.
The proposed budget(see Exhibit 5) is based on experience with prior rehabilitation
program costs. However, these costs are rising due to utilization of energy saving and
green building products, in addition to increased hazardous materials(lead, radon,
asbestos) coordination and regulation.
In no case will funds exceed $40,000 per unit, as identified in the Unified Funding 2013
RFP materials.
3. Provide detail for experience of staff assigned to program administration.
Since 2001, the Town has successfully administered close to$2.5 million in various
housing rehabilitation programs, including 2004 and 2007 HOME programs. The Town
has the experience and capacity to implement another HOME grant in a timely fashion.
The proposed program will be administered by the Town of Queensbury Community
Development Office with the assistance of the Town's consultant.
The Town of Queensbury will retain overall responsibility for the Housing Rehabilitation
Program and authority over the actions of individual employees and consultants who
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Town of Queensbury - LPA HOME 2013 Program
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may be involved in program activities. The following summarizes the roles and
responsibilities of all involved parties with the program.
The Senior Planner will have overall responsibility for administration of the Town's
Housing Rehabilitation Program. This responsibility includes direction of the consultant.
The Senior Planner is also responsible for coordination between the Town and NYS
Homes and Community Renewal, preparation and approval of reports, and compliance
with reporting requirements. Mr. Baker has worked for the Town for ten years. He is also
the Town's Fair Housing Officer.
All financial assistance for rehabilitation improvements must be approved by the Town
Board before any work can start on individual projects. The Town's Accounting Office
has a four(4) person staff with extensive experience dealing with community
development accounts and other financial matters related to State and Federal
programs. The Fiscal Management section of this application outlines in detail the
process.
The local Community Development ty p nt consultant, Shelter Planning & Development, Inc.,
has worked with the Town's Community Development Office over the past 14 years to
undertake Housing Rehabilitation Program activities, including preparation of the Town's
Affordable Housing Strategy. The consultant is also responsible for providing a qualified
Rehabilitation Coordinator.
4. Identify the types of assistance you will provide(loans, grants, deferred
loans, etc.).
The form of HOME assistance will be a 100% grant in the form of a deferred loan with
forgiveness clause.
The purpose of the grant assistance provided by this program is to improve the housing
conditions of lower income persons. To achieve this goal, the property owner must
agree to continue to live in the property for a period of five (5) years.
In all cases, these restrictions shall be contained in a lien agreement in the form of a
Note & Mortgage as provided by New York State Homes & Community Renewal for the
HOME Program. This agreement is recorded in the County Clerk's office.
If the property owner abides by occupancy restrictions for the five(5)year period, the
rehabilitation grant, i.e. deferred loan", need not be paid back. The deferred loan
forgiveness is based on a 20% per year declining balance method.
As per the State standard Note& Mortgage Agreement, if the property owner abides by
these restrictions for the five(5) year period, the lien is forgiven, and the rehabilitation
grants funds need not be paid back to the State.
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The Town has committed $75,000 in local funds to match HOME funds for projects.
These local funds are intended to provide direct loans to program participants. The
loans will be structured as loans at 0% with a term of 5 years. Elderly homeowners and
homeowners with incomes below 50% of median can opt to not make monthly
payments but have the loan be deferred with repayment in a lump sum upon death of
the owner or sale of the property. (It is anticipated that the majority of property owners
participating in this program will utilize this due on sale or death provision).
5. Describe the program service area including geographic location and
boundaries.
The property to be assisted must be located in the Town of Queensbury, within one of
two Census tracts in the Town, which have been identified as the areas with the lowest
income households. These areas include a small portion of Census Tract 706 Block
Group 2, generally known as South Queensbury and all of Census Tract 708, generally
known as West Glens Falls. See the attached map for exact locations and boundaries.
6. Indicate whether the program will have a specific focus(historic preservation,
energy conservation, etc.)
Historic Preservation
The Town will coordinate its rehabilitation efforts with SHPO. All of the properties
proposed for rehabilitation will be referred to SHPO for review and comment. SHPO
requirements are incorporated into specifications for rehabilitation.
Energy Conservation
Since 2008 the Town has had an Energy Use Reduction Plan that was developed for
the Town's various housing rehabilitation programs. The protocol will be followed to
assure homeowners long-term energy savings and a healthy living environment, as well
as minimizing impacts on the environment.
Design Modifications for Special Needs
Reasonable accessibility modifications will be made to accommodate persons with
physical disabilities. The program anticipates that design modifications for persons with
disabilities will be incorporated into individual bid specifications where necessary.
Modifications anticipated include handicapped ramps, handicapped accessible
bathrooms, etc.
Environmental Health and Safety
The proposed program will focus on the elimination of health and safety problems and
hazardous materials. Items such as septic system failures, electrical systems with
melting outlets, lead-based paint, asbestos and other concerns will receive priority
attention.
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7. Will the program assist mixed-use buildings?
Only residential buildings are eligible for assistance. Mixed-use buildings (that is,
buildings containing a mix of residential and non-residential uses)will not be addressed
in this program. Owner-occupied, income eligible, single-family residential property
owners will be permitted to participate.
ELIGIBILITY
1. identify the maximum income level, as a percentage of area median income, for
program participants.
Maximum Income Levels
To be initially eligible for rehabilitation grant assistance, the applicant must be an
individual or household, who owns and occupies a single-family residential building as
their principal residence, and have an annual income which does not exceed 80% of the
median for the area as defined by HUD. It is the goal of this program to rehabilitate
properties owned by persons with incomes less than 50% of the median area income.
Priority will be given to households with the lowest incomes (below 30% of median).
Income Targeting
The Town has proposed to target assistance to the following income groups:
INCOME GROUP HOUSEHOLDS TARGETED
Below 30% of median 3
31-40% of median 3
41-50% of median 6
51-60% of median 0
61-70% of median 0
71-80% of median 0
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2. Identify any special needs populations to be assisted by the program.
The Town has established a strong network with other organizations and agencies
through its housing rehabilitation efforts over the past fourteen years. In particular, the
Town has worked with the Warren-Washington-Albany ARC (WWAARC), the Warren-
Hamilton Community Action Agency(WHCAA), and the Warren County Office for the
Aging (OFA)to assist mutual, income eligible clients, with housing rehabilitation,
accessibility, and energy improvement needs. Subsequently, the Town will continue to
work with these agencies to assist frail elderly and households with disabled persons.
The Town has targeted assistance to frail elderly and proposes to assist at least four(4)
of these households. Typical needs anticipated are bathroom modifications such as the
addition of grab bars in showers.
The Town will also work with the Warren-Washington-Albany ARC (WWAARC)to assist
two (2) households with disabled persons, who will also require accessibility
modifications in addition to correcting deficiencies through the HOME program.
The Warren-Washington-Albany ARC (WWAARC) has implemented ACCESS to HOME
funds over the past several years, and the Town of Queensbury supported their efforts.
3. Describe any other eligibility requirements or preferences, if any.
For a property to be initially eligible for rehabilitation grant assistance, it must meet all of
the following requirements:
Ownership and Verification
The applicant for grant assistance must be the owner-occupant of a single-family
property. The program consultant must verify that the applicant(s) are the legal owners
of the property to be improved before a grant award can be made.
For the purpose of this program, the deed to the property as recorded in the Warren
County Clerk's office showing that the applicant is the owner of the property is generally
acceptable as proof of ownership. Land contracts are not acceptable forms of
ownership.
Income Verification
The annual income of the applicant(s)must be verified to determine eligibility under the
income guidelines. It is the goal of this program to rehabilitate properties owned by
persons with incomes less than 50% of the median area income. Persons who exceed
the Town program criteria for income eligibility(i.e. 50% area median income), yet fall
below the HOME Program area median income, will be placed on a wait list.
Income verification will be determined by the program consultant.
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Town of Queensbury - LPA HOME 2013 Program
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Property Insurance
All properties to be assisted through this program must have evidence of a current
homeowner's insurance policy that covers fire, property damage and liability.
Property Taxes
All applicable property taxes must be either paid to date, or with the approval of the
taxation authority, a payment plan must be in place and the applicant must show that
regular payments are being made to cover back taxes owed on the property.
Mortgage
If the property owner has a mortgage, verification of current payments past 6 months is
required to assure that the homeowner is residing in an affordable residence.
Priorities
The Town will first select applicants who are on the wait list are have been certified as
eligible based on the following priority system:
✓ Occupied structures whose conditions represent immediate health and safety
problems, including code violations and hazardous materials;
✓ Units that are occupied by income eligible persons that are frail elderly or
persons who are physically disabled;
✓ Units occupied by very low income households (below 30% of median); and
then
✓ All other eligible households below 50% of median.
SUPPORTIVE SERVICES
1. If a special needs population is to be served, describe how you will identify
households and how you will provide services?
The Town has targeted assistance to four(4) units occupied by frail elderly, and two(2)
units to persons who are physically disabled. To achieve its goals the Town will give
priority to applicants requesting assistance that have units occupied by frail elderly or
persons who are physically disabled. The Town will work with the Warren-Washington-
Albany ARC(WWA ARC), a not-for-profit agency that serves the needs of persons who
are disabled. The Town will also work with the Warren County Office for the Aging
(WCOFA). The Town will coordinate with these agencies to insure that these targeted
households will have available to them the necessary support services to insure that
persons in these households can continue to live independently.
The Program has developed a MOU with the Warren County Office for the Aging, a local
service agency that provides supportive services to the elderly. The MOU will allow the
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Town of Queensbury - LPA HOME 2013 Program.
ADMINISTRATIVE PLAN
Warren County Office for the Aging the appropriate method to make referrals to the
Program. Warren County Office for the Aging will also accept referrals from the Town
when households are identified that may benefit from supportive services. The MOU
also states that supportive services will be provided/continued for the special needs
household involved in the Town's program.
The Program will also target persons who are disabled. The Program has a MOU with
Warren-Washington-Albany ARC (WWAARC), a local not-for-profit. The MOU will allow
the ARC to make referrals to the Town. The WWAARC will also accept referrals from
the Town when the Town identifies targeted households in need of supportive services.
The MOU also states that supportive services will be provided/continued for the special
needs household involved in the Town's program.
The WWAARC received 2011 ACCESS to HOME funding and the Town has already
worked extensively with the WWAARC to implement the existing MOU between the
Town and WWAARC. As a result, the Town has also established extensive connections
with various in-home service providers who work with the disabled population.
1. Describe pm-award and post-award counseling that will be provided to
program participants, if any.
Pre-award Counseling
Pre-award counseling consists of a face-to-face meeting at the applicant's kitchen table,
preferably with all members of the household present, to outline the program
requirements and to discuss any concerns or questions the applicant may have. The
Rehabilitation Coordinator brings the Program Manual and Implementation Forms to
show the applicant and explains why each is necessary to the Program's function.
The applicant is provided a copy of lead hazard notification pamphlets and explanation
of steps that can be taken to keep the home lead-safe. Educational material (provided
by Cornell Cooperative Extension) regarding asbestos, carbon monoxide, insect control,
mold and radon is also provided. The homeowner is also advised that if work needs to
be done that requires the removal of certain hazardous materials or conditions,
additional testing and rehabilitation measures will be taken.
Questions are asked about energy costs and copies of utility bills are provided to the
Rehabilitation Coordinator. There is a discussion on how the energy and corresponding
water conservation measures expected to be taken will decrease utility bills. The
Rehabilitation Coordinator goes one step further to show how cost savings can go
towards future maintenance of the property. Homeowners are advised to place at least
$25 per month into a savings account for continuing maintenance of the property after
rehabilitation is accomplished. To help them achieve this goal, property owners are
made aware of Cornell Cooperative Extension workshops, such as "Making Ends Meet"
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Town of Queensbury - LPA HOME 2013 Program
ADMINISTRATIVE PLAN
and the NY State Saves Program "Build Wealth Not Debt" and their various residential
energy savings programs.
At this time the Rehabilitation Coordinator performs a thorough walk-through of the
property, inside and outside, with the homeowner. Digital photos are taken to document
the existing conditions. The homeowner points out any problems of which they are
aware.
The Town has put together a one-page form that serves as a guide to cover all Program
parameters. Homeowners sign the form, What to Expect and What Not to Expect
from the Town of Queensbury Home Improvement Program, indicating that they
have met with staff and understand the role of the Program, the homeowners, and the
contractors who will be performing the rehabilitation activities.
We believe that this up-front practice sets the Town of Queensbury HOME Program
apart from its counterparts.
Post-award Counseling
Post assistance, property owners will be provided with copies of the signed grant
agreement, lien agreement, and all contracts and warranties. Homeowners will also be
given a brochure describing What Happens After Home Improvements Are
Completed? The brochure explains what to do if there are housing problems that may
arise once rehabilitation is completed.
2. Describe any written and educational materials that will be provided to clients
prior to receiving assistance and upon completion.
All property owners will be provided with lead-based paint advisory EPA-HUD-US
Consumer Product Safety Commission pamphlets Protect Your Family From Lead in
Your Home and Renovate Right, a copy of the Lead-based Paint Risk Assessment and
a copy of the Lead-based Paint Clearance Report. Any testing results will be given to the
homeowner along with the accompanying explanation of what the results mean. Should
work be required that involves asbestos or other hazardous materials, a survey will be
performed and all results provided, including any clearance reports as necessary.
Informational materials pertaining to energy conservation and green materials will be
provided to the homeowner.
Educational materials are provided in the Pre-award Counseling and Post-award
Counseling sessions (see above).
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Town of Queensbury - LPA HOME 2013 Program
ADMINISTRATIVE PLAN
PROPERTY STANDARDS
1. Specify compliance with state rehabilitation standards.
The Rehabilitation Coordinator must first make a determination that the properties ear-
marked for assistance do not meet DHCR standards and that these properties can be
brought into compliance with the standards described herein with the funds requested.
The property must be considered substandard before rehabilitation and be brought up to
a minimum standard after rehabilitation. Standards to be satisfied in determining the
rehabilitation activities to be undertaken include the New York State Housing Trust
Fund Corporation Rehabilitation Standards for One- to Four-Unit Structures(June
2006); the HUD Lead-Based Paint Hazard Regulations; and other rehabilitation
improvements that are deemed appropriate to reduce energy consumption or to resolve
incipient problems as long as consistency with the required local, State and Federal
regulations is maintained. Handicapped access standards will be met where applicable.
Long-term health, safety and energy conservation problems related to each structure are
to be addressed.
All rehabilitation costs identified to raise the property to the rehabilitation standards
outlined are eligible.
2. Describe methods to be used to assess energy conservation needs.
Since 2008 the Town has had an Energy Use Reduction Plan that was developed for
use in the Town's various housing rehabilitation programs. The protocol will be followed
to assure homeowners long-term energy savings and a healthy living environment, as
well as minimizing impacts on the environment.
The Rehabilitation Coordinator for the Town of Queensbury Housing Rehabilitation
Program first asks all HOME Program applicants whether or not they have received
assistance through the Weatherization, HEAP and/or EMPOWER Programs.
If the applicant has received or is expected to receive Weatherization Program
assistance, then the Warren-Hamilton Counties Community Action Agency
(WHCAA) provides a copy of the Building/Work Order Summary to the Town.
If the applicant has not had weatherization assistance, then they are requested to
complete the WHCAA package, including the EMPOWER application, and submit it to
the WHCAA.
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Town of Queensbury - LPA HOME 2013 Program
ADMINISTRATIVE PLAN
Energy audits are to be completed following the Targeted Investment Protocol System
(TIPS), or an equivalent system. This audit is in a format approved by the US
Department of Energy for use in low-income residential programs. Reports based on
energy audits performed shall outline the most cost effective energy conservation
measures, i.e. a savings-to-investment ratio of 1.0 or greater.
It is expected that HOME funds will be used to pay for energy audits.
3. Describe measures to promote energy conservation and incorporate measures
into the work scope.
The Town will coordinate its HOME rehabilitation activities to the extent possible with the
WHCAA, which administers the Weatherization Program in Warren County. Energy
audits will be conducted by the local weatherization assistance program or by a building
analyst certified by the Building Performance Institute (BPI).
Activities which can be undertaken with Weatherization Program funds will be identified.
To the extent that Weatherization Program funds are available, they will be used instead
of HOME funds. If such funds are not available, the weatherization activities identified in
the energy audit will be incorporated to the extent possible with the HOME financed
rehabilitation activities.
Weatherization Program activities and HOME Program rehabilitation specifications are
coordinated to the degree possible. The Town's program consultant will be responsible
for coordinating the work of the Weatherization Program with the activities of the private
contractors. The final scope of work developed by the Town of Queensbury Housing
Rehabilitation Program incorporates measures identified in the comprehensive energy
audit. The work performed through the Town's Housing Rehabilitation Program is
subject to inspection by the Town's Building & Codes officials, thereby assuring quality
control.
In recognition of the continuing coordination of efforts between the Town of
Queensbury and the WHCAA, the WHCAA will work with the Town and commit
weatherization funds to the degree possible to the proposed 2013 HOME Program.
4. Describe any additional health and safety measures to be incorporated into the
program.
The proposed program will focus on the elimination of health and safety problems and
hazardous materials. Items such as septic system failures, electrical systems with
melting outlets, lead-based paint, asbestos and other concerns will receive priority
attention.
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Town of Queensbury - LPA HOME 2013 Program
ADMINISTRATIVE PLAN
The Rehabilitation Coordinator will continue to work closely with the Town's Building &
Codes office. The Town's Director of Buildings and Codes will review all specifications
for codes compliance. When major problems and code violations are found during the
initial rehabilitation inspection, the Buildings and Codes office will be called to perform a
site visit with the Rehabilitation Officer to determine possible ways to address the
problem(s). Building and Codes personnel will be invited to pre-construction meetings to
assure understanding of codes issues. Building permits are required from all contractors
and building and codes inspectors are called throughout the work performed. Final
payments to contractors will not be made until a Certificate of Occupancy is obtained
from the Town, which also includes the electrical inspection from a certified New York
State electrical inspector.
Safety and health violations for eligible applicants are to be addressed as the first priority
of the Program. These situations take precedence, with the understanding that the
HOME Program is not an emergency program.
PROGRAM OUTREACH/MARKETING
1. Describe the outreach and promotion activities that have been used or are
planned to market the program including compliance with all State and Federal
requirements for equal opportunity, fair housing, age discrimination, and equal
employment opportunity.
Recipients for assistance will continue to be solicited according to the following
procedures:
✓ Media releases for publication and public service announcements will be
furnished;
✓ A block ad will be published in the official Town newspaper;
✓ Public notices will be posted throughout the Town offices, especially at
Buildings& Codes, Clerk/Treasurer and Assessment offices;
✓ A brochure describing the program and informing property owners as to how
and when to apply for assistance will be strategically placed in the Town
offices;
✓ An invitation for property owners to make application to utilize project funds will
be posted on the Town's website;
✓ A request for updated income information will be mailed to all of the income
eligible property owners with applications on file and on the Town's wait list;
✓ Agencies working with special needs populations targeted will be contacted to
make referrals; and
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✓ Agencies who have worked with the Town's prior housing rehabilitation
programs (i.e. WHCAA, Washington County Office for the Aging, WWARC)will
be notified and asked for referrals.
Applicants on file will have first priority subject to the Town's special needs populations
and income targeting goals.
Compliance with State and Federal Requirements
Promotional material will prominently display the Equal Opportunity and Fair Housing
logos. Outreach will be in compliance with State and Federal requirements concerning
equal opportunity and fair housing, including provisions regarding age discrimination and
equal employment opportunity, pursuant to 24 CFR 92.350 and described more fully in
24 CFR 5.105(a). This information is also referenced in the Town's Fair Housing media
materials.
The Town will administer the program in accordance with all State and Federal
requirements concerning fair housing, including provisions regarding age discrimination
and equal employment opportunity pursuant to 24 CFR 92.350 and 24 CFR 5.105(a):
ELIGIBILITY REVIEW AND SELECTION PROCESS
1. Describe procedures for intake and review of applications including the
certification process to ensure compliance with income targeting and eligibility
requirements.
The Town shall prepare or cause to have prepared, and maintain a file which documents
the intake, review, targeting, income eligibility and certification process. The Town will
use the 24 CFR Part 5 income definition to determine income eligibility.
Prior to the expenditure of any HOME funds, the Town shall determine that all properties
comply with all requirements of the Administrative Plan and with the eligibility
requirements of 24 CFR 92.205.
Application Intake and Review
Pre-Application
The pre-application is a one-page form intended to assess the degree of problems in the
home and the status of the applicant regarding general income, the number of persons
living in the household, whether there are any special needs, and utility costs.
The questionnaire is a preliminary tool to determine the possibility of eligibility for
participation in the Program. If the applicant appears to not be eligible, a letter is sent
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explaining the reasons with an opportunity to provide proof if the pre-application
information submitted was inaccurate.
If it appears based on the pre-application form that the household may be eligible for
participation in the Program, the interested party is invited to complete a full application.
Application
The full application asks the same questions as the pre-application, however, the
applicant is also requested to submit proof of the following items:
✓ Household members are US Citizens or resident aliens;
✓ Property ownership;
✓ Property tax payments;
✓ Income for each member of the household;
✓ Current mortgage status; and
✓ Additional information to substantiate the income, ownership and special
needs status of the applicant, such as pay stubs and bank statements.
Consistent with the emphasis on energy reduction, use of green materials, and
environmental health and safety, the applicant will also be requested to answer
questions regarding utility costs and any special concerns or problems they may be
experiencing that could be addressed by the Town's housing program.
Certification Process - Income Eligibility and Income Targeting
The Town must verify the projected annual income of the occupant of the property to be
assisted. For the purposes of this program, gross income includes all sources of income
as per 24 CFR Part 5. In order to determine initial eligibility under the income
guidelines, incomes will not exceed the income standard applicable in accordance with
HOME income regulations. Owners must have incomes that do not exceed 80% of area
median income. The goal of the Program design outlined in this application is to address
households with 50% or less of median family income for Warren County. This process
will be used to determine assistance based on income targeting in addition to special
needs population and housing condition.
Verification of income can be done with various documents including tax returns, pay
stubs, copies of paychecks, Social Security statements, etc. Wherever possible, third
party verification (employers, agencies providing assistance, court ordered support
payments, etc.)will be utilized. Applicant bank records(for all accounts, such as savings
and checking)are also screened for any irregularities with income information provided
in the application for assistance.
In calculating income, the Town will follow the definition of income used in the Section 8
Program as modified for use with the HOME Program. Income determination and
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projections will be based on the Technical Guide for Determining Income for the HOME
Program (January 2005).
Verifications of income will be accomplished by the Town's program consultant, Shelter
Planning & Development, Inc..
The final determination of the eligibility for assistance and the amount of assistance shall
be made only after completion of the work write-up, and cost estimates.
2. Describe any client questionnaires and/or informational materials that will be
provided to applicants.
Along with the materials described above, the Town of Queensbury will develop a
brochure specific to this 2013 HOME Program. This has been standard procedure with
the Town for all prior HOME Programs implemented in addition to any other housing
programs and/or funds that the Town has utilized.
The brochures typically include information pertaining to:
✓ Identification of the agency awarding funds
✓ Total amount of funding awarded
✓ Contact information for Town staff and the program consultant
✓ Purpose of the program
✓ Location and income eligibility requirements
✓ Other eligibility requirements(insurance, taxes, ownership, mortgage status)
✓ Types of eligible improvements
✓ Program priorities
✓ Contractor qualifications
✓ Fair Housing, Equal Opportunity, Equal Employment, and M/WBE references
The pre-application form described above includes questions pertaining to household
needs and income levels. It serves as an initial screening process to determine
priorities, and whether or not a full application should be requested from the interested
parties. If the income levels shown are higher than HOME eligibility allows, a letter is
sent to homeowner noting the determination, with the opportunity to review the
household's income status for accuracy.
3. Describe the procedure for selecting applicants who will receive assistance.
A wait list of applicants is on file and is continuously updated to include new applicants in
addition to those already on the list. The wait list includes fields that address all program
eligibility requirements noted earlier in addition to household population characteristics.
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The Eligibility Section of this application also outlines selection procedures, property
location, special needs, and immediate safety and/or health issues.
Those households that have been assisted in the past are duly noted. It is the policy of
the Town to provide home improvement funds on a one-time only basis. Applications
are also screened for any possible conflict of interest,which applicants must ascertain
through a signed affidavit.
4. Provide details pertaining to the existing wait list to include the number of
households and the date the list was established, and the most recent update.
The Town has on file a firmly established list of 46 full, completed applications for
rehabilitation assistance from income eligible homeowners. Many of the homes have
already had preliminary inspections and home owners have verified eligibility for
assistance. This list was developed from a current wait list of 98 pre-applications. The
current wait list was firmly established May, 2014.
Therefore, the program has ready participants so that the program could begin
immediately upon income re-verifications.
PROPERTY ELIGIBILITY DETERMINATIONS
1. Describe the types of properties that will be eligible for assistance.
The program is limited to owner-occupied single-family properties located within one of
two Census tracts in the Town of Queensbury which have been identified as the areas
with the lowest income households. These areas include a small portion of Census Tract
706, the area generally known as South Queensbury and all of Census Tract 708,
generally known as West Glens Falls. (Please refer to the attached maps.)
The program is limited to single family, owner-occupied properties within the described
areas.
Properties ear-marked for assistance currently do not meet the DHCR standards and it
must first be determined that these properties can be brought into compliance with the
standards described herein within the maximum grant limit. This program is intended for
moderate rehabilitation needs only.
2. Indicate whether households residing in mobile homes will be assisted.
The Town of Queensbury Housing Rehabilitation Program is intended to address single-
family, owner-occupied dwellings only. Mobile homes will not be considered eligible for
purposes of this Program. .
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3. Describe the method to be used to ensure that the units assisted do not, after
rehabilitation, exceed 95% of the median purchase price for the area as set
forth in 24 CFR 92.254(b).
The after-rehabilitation value of any property assisted as part of a home repair project
will not exceed 95% of the median purchase price for single family housing as
determined by HUD.
The Town will use equalized assessment data for this determination. The Town has just
completed a town-wide reappraisal process (May 2014)to reflect accurately 100%
property market values in order to more equitably establish tax assessments. The
amount of assistance to be provided will result in housing after rehabilitation that does
not have a value greater than 95% of the median purchase price for the Glens Falls, NY
MSA, as listed in the HOME homeownership value limits for the appropriate Fiscal Year.
4. Indicate how you will verify proof of ownership before committing to the
assisted unit.
The Rehabilitation Coordinator must verify that the applicant(s) are the legal owners of
the property to be improved before a grant award can be made. A copy of the deed to
the property is generally acceptable as proof of ownership.
For the purpose of this program, the deed to the property as recorded in the County
Clerk's office showing that the applicant is the owner of the property is generally
acceptable as proof of ownership. It is the obligation of the property owner to provide
evidence of title. However, it is the responsibility of the Town to determine that the
documents submitted constitute a legally binding title. Land contracts are not acceptable
forms of ownership.
5. Describe the process for coordinating initial inspections with lead hazard risk
assessments and energy audits.
Lead hazard risk assessments and energy audits are conducted for all housing units and
households determined to be qualified for the housing rehabilitation program. The Town
will undertake a Request for Proposal (RFP) process to retain the services of a
consultant or consultants to provide inspections, lead risk assessments, and energy
audits.
Lead hazard risk assessments and energy audits are requested after initial inspections
and a draft work write-up has been prepared so that these organizations may have a
summary of work anticipated upon which to base their subsequent inspections and
testing.
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The Rehabilitation Coordinator will be responsible to assure incorporation of findings and
methods to meet compliance in the scope of work for each project.
CCT OF INTEREST
1
CONFLICT
. Describe procedures to be used to prevent conflicts of interest.
The Town will follow the provisions of 24 CFR 92.356, 24 CFR 85.36 and 24 CFR 84.42
in administering all HUD funds.
Shelter Planning and Development, Inc. has been retained by the Town pursuant to 24
CFR 85.36 and is covered by the provisions of this section.
To insure that the conflict of interest provisions are met, the Town will do the following:
All program participants(applicants, contractors, consultants)who may obtain a
financial interest or benefit from program activities will be required to disclose or
certify as follows:
a) Disclose that they are, or certify that they are not an official, officer,
employee, agent or consultant to the Town.
b) Disclose that they are, or certify that they are not an immediate family
member of any such official, officer, employee, agent or consultant to the
Town.
c) Disclose that they have, or certify that they do not have business ties to
any official, officer, employee, agent or consultant to the Town.
For each program participant, the Town will determine if the provisions of 92.356(b)
(conflicts prohibited)applies.
This means the Town will determine if any"persons covered" by 92.356(c) are persons
who meet the following standard:
Persons who exercise or have exercised any functions or responsibilities
with respect to activities assisted with HOME funds or who are in a position
to participate in a decision-making process or gain inside information with
regard to these activities, may obtain a financial interest or benefit from a
HOME-assisted activity, or have an interest in any contract, subcontract or
agreement with respect thereto, or the proceeds thereunder, either for
themselves or those with whom they have family or business ties, during
their tenure or for one year thereafter.
•
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Exceptions to the Conflict of Interest Provisions
In situations in which the Town believes an exception to the conflict of interest
requirements should be granted the Town will undertake the following:
a) Publicly disclose the conflict of interest in the official Town newspaper;
b) Prepare a written request to the NYS HTFC for an exception which
discloses the nature of the conflict, provides assurance that there was a
public disclosure of the conflict, and a description of how the public
disclosure was made and
c) Provide an opinion of the Town Attorney that the interest for which the
exception is sought would not violate Federal, State or local laws.
Threshold Requirements for Exceptions
The Town will consider a request for an exception if it believes the exception will serve to
further the purposes of the HOME Program and the effective and efficient administration
of the Town's Program.
Factors That Will Be Considered in Requesting Exception
1. Whether the exception would provide a significant cost benefit or an
essential degree of expertise to the program or project which would
otherwise not be available;
2. Whether the person affected is a member of a group or class of low-
income persons intended to be the beneficiaries of the assisted
activity, and the exception will permit such person to receive generally
the same interests or benefits as are being made available or •
provided to the group or class;
3. Whether the affected person has withdrawn from his or her functions
or responsibilities, or the decision-making process with respect to the
specific assisted activity in question;
4. Whether the interest or benefit was present before the affected person
was in a position with the Town;
5. Whether undue hardship will result either to the participating
jurisdiction or the person affected when weighed against the public
interest served by avoiding the prohibited conflict; and
6. Any other relevant considerations.
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ACTIVITY SPECIFIC QUESTIONS - OWNER OCCUPIED
REHABILITATION
1. What is the maximum amount of rehabilitation funds that will be spent on a
project/unit?
The Program is designed to allow up to $25,000 per unit for owner-occupied properties
for moderate rehabilitation construction costs of existing housing units.
Costs for testing, such as asbestos, lead, radon, etc., as well as any associated
engineering fees and inspection fees are additional "soft costs." The lead rules in 24
CFR Part 35 are considered in the per unit cost calculations, which determines the level
of rehabilitation assistance as per Subpart J of the rules.
The maximum amount of HOME funds that may be used to cover the entire project is
projected to not exceed $30,000 per unit, and will likely average closer to$25,000 per
unit for all costs.
The proposed budget(see Exhibit 5) is based on costs experienced with prior
rehabilitation program costs. However, these costs are rising due to costs associated
with utilization of energy saving and green building products, in addition to increased
hazardous materials(lead, radon, asbestos)coordination and regulation.
In no case will funds exceed $40,000 per unit, as identified in the Unified Funding 2013
RFP materials.
2. Identify the types of units to be assisted.
The Program is limited to owner-occupied single-family properties located within one of
two Census tracts in the Town of Queensbury which have been identified as the areas
with the lowest income households. These areas include a small portion of Census Tract
706, the area generally known as South Queensbury and all of Census Tract 708,
generally known as West Glens Falls. (Please refer to the attached maps.)
The Town of Queensbury Housing Rehabilitation Program is intended to address single-
family, owner-occupied dwellings only. Mobile homes and rental units will not be
considered eligible for purposes of this Program.
3. Is there an affordability period? If so, how long?
The affordability period is five(5)years, as explained in PROGRAM DESIGN.
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4. How will the funds be secured during the affordability period?
See item #4 in PROGRAM DESIGN.
5. Describe your method for selecting applicants.
The Town will first select applicants who are on the wait list and have been certified as
eligible based on the following priority system:
✓ Occupied structures whose conditions represent immediate health and safety
problems;
✓ Units that are occupied by income eligible persons that are frail elderly or
persons who are physically disabled;
✓ Units occupied by very low income households (below 30% of median);
✓ All other eligible households below 50% of median.
The Town has already made a preliminary determination that the properties ear-marked
for assistance do not meet the DHCR standards and that these properties can be
brought into compliance with the standards described herein within the funds requested.
The proposed program will focus on the elimination of health and safety problems and
hazardous materials. In particular, there are septic system failures, electrical systems
with melting outlets, lead-based paint, asbestos and other concerns that will receive
priority attention.
6. Do you have an existing wait list?
The Town currently has on file a sufficient number of eligible applicants to utilize all the
funding requested, as explained in items#3 and #4 in ELIGIBILITY REVIEW AND
SELECTION PROCESS.
7. Identify any specific focus for rehabilitation. Will you assist buildings with code
violations or prioritize those of special needs recipients?
See item #6 in PROGRAM DESIGN and item #4 in PROPERTY STANDARDS.
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CONTRACT AND CONSTRUCTION MANAGEMENT
1. Describe the contract and payment process that will be followed to provide
HOME funds to participants.
Contract Between the Town and Homeowners
The Town contracts directly with the homeowner in the form of a Grant Agreement. The
Grant Agreement covers all HOME Program and any co-funding requirements and
includes a recommendation by the Program Consultant that specifies the amount of
funds needed for rehabilitation activities. The recommended funding amount is based on
the qualified low bid. The Program Consultant uses all Program set-up information to
establish the applicable rehabilitation costs for each lien/mortgage agreement that
pertains to the HOME program.
Contract Between the Homeowner and the Contractor
All construction contracts are directly between the homeowner and the contractor. The
program utilizes a standard contract form, which has been developed by the Town to
ensure compliance with State and Federal regulations and to provide adequate
safeguards to protect the homeowner, Town, Consultant/Rehabilitation Coordinator, the
involved funding agency, and the contractor.
The contract provides for mediation in the event of disputes between owner and
contractor and names the Rehabilitation Coordinator as the mediator.
Contractor Payment Process
Contractors can ask for up to two progress payments and a final payment. Upon
submission of the invoice to the Rehabilitation Coordinator work items are compared to
the bid specifications in the contract. An inspection of work performed is made by the
homeowner with the Rehabilitation Coordinator. The homeowner and the Rehabilitation
Coordinator sign and date the invoice indicating that the work has been performed and is
acceptable. The Rehabilitation Coordinator requests a release for funds and
disbursement request for 90% of the amount invoiced. See item #4 in this section below
for disbursement details and also item #2 under FISCAL MANAGEMENT.
2. Describe the M/WBE utilization plan that will be adopted, including policies and
procedures.
The Town will undertake the following activities to affirmatively seek MBENVBE
participation in all contracts.
The Town has in place M/WBE files containing lists of M/WBE firms,which is periodically
updated. The list is culled from the New York Empire State Development website, which
professes to have one of the largest minority business databases in the nation.
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The Town, in establishing a list of contractors qualified to participate in housing
rehabilitation contracts, will actively solicit participation from MBE/WBE's. To accomplish
this the Town will:
✓ Obtain the list of State-certified MBE/WBE's and mail contractor application
forms to all MBE/WBE's within a 50 mile radius of the Town;
✓ Contact neighboring communities to attempt to identify potential MBE/WBE's;
and
✓ Attempt to identify MBE/WBE's from other local sources such as Chambers of
Commerce, Business Directories, etc..
Contracts between the homeowner and construction company note the reference to
solicit M/WBE material suppliers and sub-contractors.
Any solicitation for goods and services required by the Town in conjunction with the
HOME program will also contain M/WBE references.
3. Describe steps to be taken to conduct outreach, provide employment, or
otherwise comply with Section 3.
Pursuant to Section 3 of the Housing and Community Development Act of 1968 (12 USC
17010)the Town will require, in conjunction with planning and carrying out any project
assisted, that to the greatest extent feasible opportunities for training and employment be
given to very low and low income residents of the Town and/or Warren County,
especially those living in HUD-assisted housing.
The Town shall require that all contracts entered into to implement this program will include
language specifically requiring contractors to affirmatively implement Section 3 provisions.
Section 3 compliance is met by including Section 3 language into all contracts between the
homeowner and contractor. Contractors agree to include Section 3 information in all
subcontracts, and are encouraged to hire locally based, and very low or low income labor
especially those living in HUD assisted housing. When contractors are hired by the
homeowner, a meeting is held with the Rehabilitation Coordinator who reviews all contract
requirements and explains the purpose of this regulation.
The Town anticipates soliciting companies to obtain "soft services" such as lead risk
assessments, and energy audits. Any solicitation for goods and services required by the
Town in conjunction with the HOME program will contain language pertaining to Section 3
requirements.
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4. Describe how HOME funds will be disbursed to owners and/or contractors.
Payments to contractors will only be made after large portions of the work have been
satisfactorily completed. An inspection of the completed items will be conducted and an
inspection report prepared and reviewed with the homeowner and contractor. If the
homeowner accepts the work that has been finished, a payment authorization form is
submitted to the Town's Senior Planner with a copy to the Accounting Office.
The Town will make partial payments for work completed. However, the payment will
be for only eighty percent(90%)of the value of the work completed. The Town will retain
ten percent(10%) until the project is satisfactorily completed.
In cases where local or other funds are required to contribute to project costs, these funds
will be used for pro gress payments before any grant funds are disbursed.
Before the final payment is issued, a final inspection must be done and the contractor must
sign a Release of Liens and Warranty form and provide the homeowner copies of all
equipment manuals and manufacturer's warranties. The homeowner must concur in writing
that all work is complete and acceptable.
In addition, evidence of all environmental clearances, such as for lead, must be obtained,
and evidence of any Town Certificate of Compliance required must be in place, before
payment is made.
WORK SCOPE DEVELOPMENT AND BIDDING
1. Describe procedures that will be followed for initial and subsequent rehabilitation
inspections. Also describe coordination of initial inspections with lead hazard
assessments and energy audits.
An inspection report that identifies all deficiencies, which require remedy in order to meet
the rehabilitation standards contained in this Administrative Plan will be performed after
an energy audit, lead-based paint risk assessment and any other testing required has been
performed. In some instances, specialized engineering and/or architectural surveys and
plans may be needed. The HOME inspection will also identify the need for carbon
monoxide detectors as well as general health and safety issues already incorporated in the
inspection process.
Lead hazard risk assessments and energy audits are requested after initial inspections and
a draft work write-up has been prepared so that these organizations may have a summary
of work anticipated upon which to base their subsequent inspections and testing. The
Rehabilitation Coordinator will be responsible to assure incorporation of findings and
methods to meet compliance in the scope of work for each project.
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Progress and final inspections are performed after completion of work products identified in
the contract between the homeowner and contractor. Before the final payment is issued, a
final inspection must be done and the contractor must sign a Release of Liens and
Warranty form and provide the homeowner copies of all equipment manuals and
manufacturer's warranties. The homeowner must concur in writing that all work is complete
and acceptable.
In addition, evidence of all environmental clearances, such as for lead, must be obtained,
and evidence of any Town Certificate of Compliance required must be in place, before
payment is made.
Coordinating Lead Hazard Risk Assessments
A lead hazard risk assessment is performed by a firm qualified to perform this work. An
RFP will be developed to hire the qualified firm for the Program period. After testing for
lead-based paint hazards, a report is provided to the Town along with the lab test results.
A copy of the report is provided to the homeowner, and necessary work to address the
hazards is incorporated into the specifications drafted by the Rehabilitation Coordinator.
An analysis of the costs to address the lead-based paint items following 24 CFR Part 35 is
made to determine the specific requirements to be followed.
Energy Audits and Coordination with Weatherization
The Town will coordinate its HOME rehabilitation activities to the extent possible with the
WHCAA, which administers the Weatherization Program in Warren County. Energy audits
will be conducted by the local weatherization assistance program or by a building analyst
certified by the Building Performance Institute (BPI).
Activities which can be undertaken with Weatherization Program funds will be identified.
To the extent that Weatherization Program funds are available, they will be used instead of
HOME funds. If such funds are not available, the weatherization activities identified in the
energy audit will be incorporated to the extent possible with the HOME financed
rehabilitation activities.
Weatherization Program activities and HOME Program rehabilitation specifications are
coordinated to the degree possible. The Town's program consultant will be responsible for
coordinating the work of the Weatherization Program with the activities of the private
contractors. The final scope of work developed by the Town of Queensbury Housing
Rehabilitation Program incorporates measures identified in the comprehensive energy
audit. The work performed through the Town's Housing Rehabilitation Program is subject
to inspection by the Town's Building & Codes officials, thereby assuring quality control.
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2. Describe each of the following procedures:
Independent Work Write-ups and Cost Estimates
After all of the initial inspections described above have been completed, the Rehabilitation
Coordinator will undertake the work write-up and cost estimate which is in sufficient detail
to be used as the basis for obtaining fixed price bids for the rehabilitation of the property.
The consultant will prepare a detailed work write-up of the needed improvements, including
a written description of each work item accompanied by specific materials, equipment,
construction techniques, quantities, dimensions and other necessary details. The write-up
will have a sufficient detail to allow contractors to submit competitive bids. The write-up will
incorporate all findings from SHPO; the energy audit; lead risk assessment; weatherization
activities proposed, underway or completed; energy reduction and conservation measures,;
green building materials and practices; code violations; and any other environmental health
and safety issues identified.
A cost estimate of the improvements based on the write-up will be prepared. The Town
has tracked all actual housing costs by project from previous programs and therefore has
an accurate and current data base by trade that is used to determine costs.
Reviewing Plans and Specifications
The write-up is reviewed with the homeowner and any questions are answered and
corrections or changes necessary are made before the specifications are sent out for
further review by the Town Building and Codes Department. The Director of the Town's
Building and Codes office will review the write-up to insure that all repairs meet applicable
codes, and that the need for any building permits and codes inspections, including
electrical inspections, has been noted.
Soliciting and Reviewing Bids
Upon acceptance of the work specifications by the homeowner and with any necessary
changes made, a bids package will be distributed to contractors who are qualified for the
program. M/WBE contractors will be encouraged to submit bids, as long as they have been
determined qualified to participate. The bid package is prepared by the consultant on
behalf of, and with the concurrence of the homeowner.
The following list itemizes the components to be used for the solicitation and review of bids:
✓ Review work write-up, plans and specifications with the property owner,
prepare bid documents and solicit a minimum of three(3) bids from a list of
qualified contractors established by the Town;
✓ Bids will be solicited from all qualified contractors. Bid solicitation will specify
that all bids must be complete(cover all items)and returned to the Town
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Clerk in a sealed envelope at a specified date and time. Bids will be opened
in a public place with more than one staff person present;
✓ After Town review of bid documents, copies are submitted to the
Rehabilitation Coordinator; and
✓ Bid returns are compared to original cost estimates, to determine that the cost
estimates are consistent with the specifications so that formal approval of
funding assistance, preparation of construction contracts and authorization
from the homeowner is obtained so the contractor may proceed.
Conducting Financial Feasibility Determinations
The Rehabilitation Coordinator reviews the bids by trade item in addition to the total bid
cost and compares these costs with original estimates to determine financial feasibility of
the project.
3. Describe procedures to be used in selecting contractors, including insurance
requirements.
Contractor Selection
The Town will establish a list of qualified contractors and all qualified contractors will be
permitted to bid. All contractors performing work must be approved by the Town based on
comparable work, contract experience, credit checks, review of the State and Federal
debarment lists, and references. Contractors wishing to participate in the program must
first fill out a Qualifications Statement with the Town's Community Development Office and
provide proof of sufficient liability and builder's risk insurance and worker's compensation
and disability insurance as required by New York State law.
Projects involving disturbance of lead paint, or involving asbestos removal or disturbance
can only be undertaken by an appropriately certified contractor.
Homeowners select contractors to bid on projects. The Town will maintain a list of
contractors who have demonstrated their capacity to undertake the work, have provided
evidence of insurance and are certified to undertake work following lead-based paint safe
work practices as per HUD rules. Homeowners can choose their own contractor to bid, but
the contractor must demonstrate that he meets all of the requirements listed above.
Homeowners sign a form that identifies the contractors selected for bids. Homeowner
signatures are also obtained to assure that the homeowner will agree to have the
contractor with the lowest responsible bid perform the work.
Upon verification of the low bid, the consultant prepares a formal Grant Agreement and
Recommendation for review by the Rehabilitation Coordinator and approval by the Town.
The Agreement specifies the amount of assistance to be awarded and all program
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requirements that must be met during the work period and for the appropriate recapture
term.
A construction contract between the homeowner and the selected contractor is also
prepared and a pre-construction conference is then held with the homeowner,
Rehabilitation Coordinator, appropriate Town staff, and the contractor to review the formal
contract provisions and answer any questions about specific work items, scheduling and
other issues.
Contractor Insurance Requirements,
Contractors are required to carry complete worker's compensation for all employees and
subcontractors. Contractors are required to carry comprehensive public liability insurance
coverage of not less than $1,000,000 bodily injury and $1,000,000 property damage with
complete operation coverage.
CONSTRUCTION MANAGEMENT
1. Describe the procedures for construction management, quality control and
frequency of on-site monitoring.
Construction Management
The Rehabilitation Coordinator shall have responsibility for undertaking the following
activities:
✓ Pre-construction Meeting: This meeting takes place at the time contracts are
signed to review all contract requirements and the specifications. A Notice to
Proceed is issued once all documents have been signed and requirements
(such as receipt of insurance and lead hazard certifications) has been
verified;
✓ Site Inspections: Inspect work in progress and recommend proper payments
to contractor(s);
✓ Progress Payments: Authorize, along with the homeowner, progress
payments(to be made by the municipality)equaling 90% of work completed
with 10% retained for final payment;
✓ Change Orders: Authorize change orders where it can be determined that
there are unforeseen circumstances, which would result in the rehabilitation of
the property not being brought up to the rehabilitation standards established
for the program;
✓ Final Inspections: Along with the homeowner, inspect completed work and
approve final payment;
✓ Clearances and Certificates of Occupancies: All additional inspections and
clearances must be received before final payment can be made. The Town
27
Town of Queensbury - LPA HOME 2013 Program
ADMINISTRATIVE PLAN
requires all housing rehabilitation projects to obtain a permit from the
Buildings & Codes office;
✓ Payments: All payments are approved by the Town. The homeowner and
the Rehabilitation Coordinator must sign the invoice to indicate all work
invoiced was completed and satisfactory before checks are authorized; and
✓ Release of Liens and Work Warranties: These forms must be signed by the
contractors, and copies of all warranties are required for final payment.
Quality Control
Quality control is assured in several ways:
✓ Packaging, labels and materials are inspected and also for Energy Star
ratings;
✓ Homeowners sign the inspection forms, which signifies that the contractor has
explained proper use and maintenance of the rehabilitation work;
✓ Contractors must provide a one-year warranty on all materials and
workmanship;
✓ Unannounced inspection visits take place periodically;
✓ Building permits are necessary and consequently, building inspectors also
check work for code requirements; and
✓ A municipal Certificate of Occupancy (CO) is required upon job completion.
Electrical inspections and stickers are required to obtain a CO; and
✓ When all work is completed, the property must comply with DHCR standards,
HUD Lead-based Paint Hazards Regulations, and any other applicable State
or Federal requirements.
On-site Monitoring
During the actual rehabilitation work, the Rehabilitation Coordinator inspects the project,
identifies any problems and answers questions which may have arisen from the contractor
or homeowner. These inspections are documented in the project file to maintain a written
record of the construction progress. This is an important part of the process to ensure that
the work meets the program specifications and that the homeowner is satisfied with the
contractor within the context of the work specified.
Inspections take place in several different formats: 1) as a result of submission of an
invoice for a partial payment or final payment from the contractor; 2) unannounced visits to
the site to check on the progress made by the contractor, and 3) upon a particular concern
within the realm of the work specifications noted by the homeowner and/or contractor.
28
Town of Queensbury - LPA HOME 2013 Program
ADMINISTRATIVE PLAN
2. Describe procedure for disbursement and retainage of construction funds,
change order approvals, punch list development, completion certification,
obtaining warranties, and issuing lien releases.
Disbursement and Retainage of Construction Funds
The fund amount required for rehabilitation construction as per the contract between the
property owner and the contractor is also noted in the Grant Agreement between the Town
and the homeowner. Contractors may request up to two progress payments, and a final
payment. The contractor prepares an invoice, which is submitted to the Rehabilitation
Coordinator.
Upon inspection of work performed and approvals by the Rehabilitation Coordinator and
the homeowner, a HOME disbursement request form is completed. The disbursement
request is for 90% of the invoice request,with 10% retained for final inspections and
subsequent final payment. The homeowner and the Rehabilitation Coordinator must sign
the invoice to indicate all work invoiced was completed and satisfactory before
disbursement requests to the State are made. When funds are received by the Town, the
Town's accounting office prepares a check. Town Board approval is required before
checks can be distributed.
Change Order Approvals
Change orders are strongly discouraged and the Rehabilitation Coordinator will closely
monitor the repair work to ensure that the original work write-up is followed. Change orders
may be considered for problems that are discovered during the course of the work and the
change is necessary to complete the activities that were included in the approved
specifications for the project. In the event of a change order, the Rehabilitation Coordinator
will inspect the property and prepare a report specifying the work required and additional
costs proposed by the contractor. Approved change orders will be funded in the same
manner as the original work items with respect to the amount of additional grant financing,
within the limits of the funding that will be used for this program.
Punch List Development
The bid specifications are used as the basis for the punch list by the Rehabilitation
Coordinator. Contractors do not get payment until contract items specified are completed
and/or corrected.
Releasing Retainage,
The 10% retainage is released upon receipt of all final inspections, signatures, lien releases
and warranties, lead clearance, and any other required approvals.
Proiect Completion Certification
Final payment will not be made until project completion. The contractor makes a written
request for final payment on a form proscribed by the Town. Upon receipt of the Final
29
Town of Queensbury - LPA HOME 2013 Program
ADMINISTRATIVE PLAN
Payment Request, and accompanying final invoice, the Rehabilitation Coordinator inspects
the property to determine completeness and obtains the homeowners written concurrence
that work has been completed in a satisfactory manner.
When all work is completed, the property must comply with all DHCR standards; and the.
HUD Lead-based Paint Hazards Regulations. In addition, properties must comply with and
other codes or regulations where applicable. A CO from the Town's Building & Codes
Office may also required, depending on the permit required.
Warranties
Contractors must provide a minimum one-year warranty on workmanship and materials. All
warranty and maintenance information, in addition to other educational materials, must be
provided to the homeowner at work completion before final payment is issued.
Issuing Lien Releases
Prior to final payment on any construction contract, the Contractor will be required to submit
a Release of Liens to the Rehabilitation Coordinator in a form proscribed by the Town. This
form must be witnessed.
LEAD-BASED PAINT
1. Describe the applicant's procedures for notification, assessment, interim control
and clearance testing.
The Town will comply with all lead-based paint regulations as per 24 CFR Part 35. The
Town has assumed that the lead-based paint regulations will apply to all homes inspected
and for rehabilitation that is undertaken as part of the proposed program. Although property
constructed after 1978 is exempt from the Federal Rule, the program typically works with
properties constructed well before that time period.
All proposed rehabilitation activities covered by 24 CFR Part 35 must be undertaken by
contractors and employees who have completed an EPA-sponsored training program.
Notification
All property owners will be provided with lead-based paint advisory EPA-HUD-US
Consumer Product Safety Commission pamphlets Protect Your Family From Lead in
Your Home and Renovate Right(or the most recent notification pamphlets available from
HUD and EPA)as part of the pre-award counseling process. Homeowners are asked to
acknowledge that the pamphlets have been received and that they have been advised of
the need for a lead hazard risk assessment. The homeowner must agree to have the
testing performed, or they will not be allowed to participate in the Town's rehabilitation
program. The homeowner is made aware of the named contractor designated to perform
30
Town of Queensbury - LPA HOME 2013 Program
•
ADMINISTRATIVE PLAN
the assessment.The Rehabilitation Coordinator arranges for the testing to be performed by
the lead-based paint risk assessor.
Lead Hazard Risk Assessments
Paint testing will be conducted to determine the presence of lead-based paint, along with a
risk assessment to determine the existence, nature and severity of lead-based paint
hazards in the home. Deteriorated paint that is chipping, peeling, flaking, cracking,
chalking, including surfaces that are otherwise deteriorated, are always tested for lead-
based paint.
Paint testing is the process of determining, by a certified lead paint inspector or
risk assessor, the presence or absence of lead-based paint on deteriorated paint
surfaces or paint surfaces to be disturbed or replaced.
For all properties to receive rehabilitation assistance under this program, a lead hazard risk
assessment will be made by a certified risk assessor qualified contractor obtained by the
Town through an RFP process. The risk assessment will therefore be undertaken by a
consultant qualified to make the assessment.
Risk assessment means an on-site investigation to determine the existence, nature,
severity and location of lead-based paint hazards; and the provision of a report by the
individual or firm conducting the risk assessment explaining the results of the investigation
and options for reducing lead-based paint hazards.
A copy of the report and testing results is provided to the homeowner upon completion.
The homeowner signs a form acknowledges the date and receipt of the report and testing
results. Therefore, the requirement for full disclosure of the lead-based paint evaluation is
met.
Risk assessments are part of the property inspection process. Risk assessments that
identify lead- based paint hazards will be incorporated into the final rehabilitation work
write-up and specifications.
Interim Controls
The actions by the Town to comply with the regulations vary with the extent of
rehabilitation assistance per unit. It is expected that all units to be rehabilitated will have
been constructed before 1978 and involve assistance using Federal funds for rehabilitation
construction of$5,000 to$25,000 per housing unit hard costs for rehabilitation, less the
cost of lead hazard reduction activities.
Interim controls are a set of measures designed to reduce temporary human
exposure or likely exposure to lead-based paint hazards. Interim controls include,
but are not limited to repairs, painting, temporary containment, specialized cleaning,
31
Town of Queensbury - LPA HOME 2013 Program
ADMINISTRATIVE PLAN
ongoing lead-based paint maintenance activities, and the establishment and
operation of management and resident education activities.
Interim controls involve specialized lead-safe work practices by the construction
contractors. Contractors are required to have a Lead-based Paint Clearance Inspection
and Report at the end of all work. A copy of this inspection and report is provided to the
homeowner, who again signs a receipt. A copy of the clearance report and the receipt is
placed in the homeowner's file for future reference.
Abatement
Properties are not expected to require more than $25,000 in HOME funds per unit in
rehabilitation assistance as defined in 24 CFR Part 35. Calculation of rehabilitation
costs/assistance noted here is used solely to determine whether the requirements to
address lead based paint hazards apply, and the level of treatment if applicable.
Abatement procedures are therefore not expected to apply or be required. Should
circumstances require abatement, a certified abatement contractor will be hired to perform
such work.
Abatement is defined as any set of measures designed to permanently eliminate
lead-based paint or lead-based paint hazards. Abatement includes:
- The removal of lead-based paint and dust-lead hazards, the permanent
enclosure or encapsulation of lead-based paint, the replacement of
components or fixtures painted with lead-based paint, and the removal or
permanent covering of soil-lead hazards; and
- All preparation, cleanup, disposal and post abatement testing associated with
such measures.
Clearance Examination
The contractor is required to provide the owner/and the Town with evidence that a Lead
Hazard Clearance Examination was done after completion of the rehabilitation work.
This Clearance Examination must be done by an individual or firm licensed or certified to
conduct such an examination and must certify that the hazard reduction activities are
complete and that no soil lead hazards or settled dust lead hazards exist in the dwelling
unit or work site. The cost of such Clearance Examination is to be included as part of the
contract total bid price for the rehabilitation work. It is the contractor's responsibility to
obtain such clearance. Final payment for completed work will be withheld until such
clearance is provided.
All projects therefore will be treated as follows:
32
Town of Queensbury - LPA HOME 2013 Program
ADMINISTRATIVE PLAN
✓ Provide a lead-based paint notification pamphlet informing the property owner
of the hazards of lead-based paint;
✓ Undertake paint testing of surfaces to be disturbed or presumed to be lead-
based paint;
✓ Conduct a lead-risk assessment;
✓ Undertake interim controls(lead-safe work practices)for all rehabilitation work
(or abatement if necessary); and
✓ Provide a clearance notice to occupants.
2. Describe efforts to ensure that there is adequate contractor capacity to provide .
interim controls or abatement services.
The Town has on an established list of qualified contractors who have successfully
performed work under previous housing rehabilitation awards. The Rehabilitation
Coordinator will maintain a list of contractors eligible to participate in the program. Each
contractor must provide evidence that all employees are certified to undertake rehabilitation
following safe work practices. As of April 22, 2010 contractors must also meet EPA
regulations and have applicable Renovation, Repair and Painting training and subsequent
certification.
To ensure that there is always an adequate number of qualified contractors to undertake
interim controls following safe practices, the Rehabilitation Coordinator will periodically:
✓ Solicit contractor participation through advertisements in local media and/or
notices posted at the Town offices(Buildings &Codes, Town Clerk/Treasurer,
public waiting areas, etc.);
✓ Establish a procedure for sharing contractor lists with other housing
rehabilitation programs in the area;
✓ Obtain the approved lead certified contractors from the EPA website; and
✓ Notify local contractors of DHCR and other agency or organizations that offer
lead safe work practices certification programs.
The Town anticipates that it will contact and work with adjacent communities in the region
that are carrying out similar programs involving varying degrees of housing rehabilitation.
Contractor's that undertake improvement activities that require lead safe work practices
must be trained and certified in accordance with regulations issued by HUD and the US
Environmental Protection Agency(EPA). The contractor must provide the Town or its
representatives with evidence of such certification prior to execution of the contract for
improvements.
FISCAL MANAGEMENT
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Town of Queensbury - LPA HOME 2013 Program
ADMINISTRATIVE PLAN
1. Describe process to be used for maintaining records that adequately identify the
sources and uses of HOME Program funds, leveraged funds, Program income and
repayments of invested HOME Program funds.
Records Maintenance Processes
All program funds are controlled by the Town's Accounting Office, which has formal
financial management and financial record keeping responsibility. The Town utilizes a
financial management system, which provides a separation of functions that ensures sound
financial management of the process. The Town has successfully administered HUD
programs including grant programs such as Community Development Block Grant funds
and HOME funds.
As a municipality, the Town is required to develop, and has in place, a written procedure to
manage assets, in compliance with state regulations.
The Town Accounting Office maintains a separate subsidiary account for each Program
applicant, identified by an assigned vendor number, to track all financial transactions.
HOME Program Income/Repayments
HOME program income/HOME program repayments, if any, will be returned to the State as
governed by the terms of the grant agreement between the Town and the State of New
York.
2. Describe how HOME funds will be disbursed to owners and/or contractors.
Payment procedures have extensive checks and balances.
Payments to contractors requires that the property owner and the Rehabilitation
Coordinator authorize the payment request. All payments are to be processed through the
Town's Accounting Office.
The Town disburses HOME funds to the contractor as work progresses, subject to a 10%
retainage. The homeowner and the Rehabilitation Coordinator must sign the invoice to
indicate all work invoiced was completed and satisfactory before disbursement requests to
the State are made. When funds are received by the Town, the Town's accounting office
prepares a check. Town Board approval is required before checks can be distributed.
3. If funds will be provided by owners and other sources, describe the timing of pay-
ins and coordination with payment of HOME Program funds.
The Town has committed $75,000 in local funds to match HOME funds for projects.
These local funds are intended to provide direct loans to program participants. The
loans will be structured as loans at 0% with a term of 5 years. Elderly homeowners and
34
Town of Queensbury - LPA HOME 2013 Program
ADMINISTRATIVE PLAN
homeowners with incomes below 50% of median can opt to not make monthly
payments but have the loan be deferred with repayment in a lump sum upon death of
the owner or sale of the property. (It is anticipated that the majority of property owners
participating in this program will utilize this due on sale or death provision). The local fund
match details are outlined in the Grant Agreement between the Town and the homeowner.
A promissory note and lien agreement, as well as a repayment schedule, is also prepared
for local funds.
In cases where local or other funds are required to contribute to project costs, these funds
will be used for progress payments before any grant funds are disbursed.
Coordination is initially established within the Grant Agreement for each approved
applicant. All program costs are allocated by funding source. A spreadsheet has been
developed by the Consultant that tracks fund disbursements by program. The Town also
tracks this information.
4. Explain how you will ensure that assets are adequately safeguarded and used
solely for authorized purposes, including fidelity bond coverage.
As a municipality, the Town is required to develop, and has in place, a written procedure to
manage assets, in compliance with State regulations. The Town has a Universal Insurance
policy that bonds all employees.
5. Describe the written procedures used for determining reasonableness,
allocation, and allowability of costs.
The Town of Queensbury has established a policy of developing a separate written manual
for grant funded programs, which includes a methodology to determine reasonableness
and allowability of costs and to allocate costs over each program.
The Town has a record of prior housing rehabilitation costs. In addition, the Rehabilitation
Coordinator outlines cost estimates for each project based on review of costs charged by
local building suppliers.
Prepared resolutions are presented to the Town Board for approval before funds are
committed for each project.
35
Town of Queensbury - LPA HOME 2013 Program
ADMINISTRATIVE PLAN
6. Demonstrate that all of the applicant's accounting records are supported by
source documents, and that the applicant is able to prepare all required financial
reports for this award.
Accounting Records
In conformance with Cash Management Information System requirements, all project set-
up activities will be the responsibility of the Town and all financial transactions will be
undertaken and recorded by the Town's Accounting Office.
All program funds are controlled by the Budget Officer, the Town Board and the Town's
Accounting office. These entities have formal financial management and financial record
keeping responsibility.
Invoices for all payment requests as approved by the Rehabilitation Coordinator and
homeowners are required as supporting documents.
Capacity to Prepare Required Financial Reports
The Town's financial management system utilizes the Accounting Office for annual
reporting and data collection and accounting for program implementation and
administration purposes. The Town's Budget Officer, Town Board and Accounting Office
is responsible for formal accounting of program funds.
The Town's Consultant has utilized a program tracking system that is compared with
Town's Accounting Office to prepare reports. Any discrepancies are immediately
investigated and corrections made.
The Town's Budget Officer and Accounting Office, will have overview responsibility for
administration of the program. Employees within these offices have extensive experience
with HUD, CDBG, HOME and AHC funds for the Town. Separate project financial
information is also maintained by the Town as part of a system of checks and balances.
7. Was the recipient required to submit an OMB A-133 audit during the most recent
fiscal year?
The Town of Queensbury sometimes expends sufficient federal funds to be required to
submit a Single Audit as required by OMB A-133. An annual audit of all Town funds and
programs is always conducted by an independent Certified Public Accounting firm. The
Town was not required to submit an OMB A-133 audit during the most recent fiscal year.
36
Town of Queensbury - LPA HOME 2013 Program
ADMINISTRATIVE PLAN
COMPLIANCE MONITORING
1. Discuss how you will ensure that assisted housing continues to qualify as
affordable through the period of affordability.
The program assists owner occupied single-family properties. Rental properties or units
are not eligible for participation in the program. As noted earlier, there is a five year
affordability provision in each lien agreement that is filed in the Warren County land
records.
The after-rehabilitation value of any property assisted as part of a home repair project will
not exceed 95% of the median purchase price for single family housing as determined by
HUD.
WARRANTIES
1. Specify warranties to be provided on materials installed and labor provided.
Include details on the warranty period, documents to be provided to owners, and
warranty coverage.
As a condition of final payment, the program will require contractors to provide a full
warranty for all labor and materials for one year following completion of rehabilitation. In
addition, the'contractor will provide copies of all manufacturers'warranties to the
homeowner. Items such as heating systems, hot water heaters, windows, roofing
materials, flooring materials and more have manufacturer warranties that must be given to
the homeowner.
37
Town of Queensbury
Housing Rehabilitation
Target Areas
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•
Exhibit C
Program Budget
A. Program Costs
Cost Description HOME Funds Other Funds Total Cost Cost/Unit
1.Acquisition $0 $0
2.Professional Fees-Specify 520.000 $20,000 $1.667
3.Financing Fees $0 SO
4.Permits/Legal Fees $0 $0
5.Fair Housing/Affirmative Marketing $0 $0
6.Relocation-Specify $0 $0
7.Staff Costs-Specify $35,400 $35,400 . $2,950
8.Lead Hazard Testing $7,200 $7,200 $600
9.Construction/Repair Labor Costs $111,200 $37,500 $148.700 $12,392
10.Construction/Repair Materials Costs $111,200 $37,500 $148,700 $12,392
11. Other-Specify $0 $0
12. Rental Assistance $0 $0
13.Total Program Costs(Lines 1 -12) $285,000 $75,000 $360,000 $30,000
14.Salaries/Fringe $0 $0
15.OTPS $15,000 $15,000 $1,250
16.Total Admin Costs(Lines 14&15) $15,000 $15,000 $1,250
17.Total All Costs(Lines 13&16) $300,000 $75,000 $375,000 $31,250
B. HOME Program Costs Per Unit
1. Total Number of HOME Units: 12
2. HOME Non-Administrative Cost Per Unit: $23,750.00
3. HOMETotal Cost Per Unit: $25,000.00
4. Regulatory Term: 5 Years
C. Sources of Funds
Source Name Amount Financing Type Assistance Financing Term Status
Local funds 75,000 Permanent Loan 5 Years -05105!2014
Town Board
NYS HOME Program 300,000 Permanent Grant 5 Years Pending Approval
Total Construction Financing $0
Total Permanent Financing $375.000
Total Other Financing $0
D. Administrative and Operating Expenses
Cost Description HOME Funds
1.Staff Salaries
2.Fringe Benefits
3.Total Personal Services Expenses(Line 1 &2)
4.Other Than Personal Services $15,000
3.Total OTPS Expenses(Line 4) $15,000
6.Total Administrative Expenses(Lines 3&5) $15,000
•
Exhibit D
Program Schedule
SHARS ID: (insert number):
Recipients of HOME Local Program funds are expected to adhere to the contract term of 2 years. Failure to
meet the specific milestones listed below may result in termination of your project and de-obligation of grant
funds. Time extensions to complete projects will be limited. Please fill in the dates requested regarding ERR
and ATUGF. Please sign at bottom and return with your signed contract.
Contract Implementation -Schedule for Completion
MILESTONE PROJECTED DATE
Return of complete contract package with 2 hard copies signed by Within 15 days of
the Authorized Signatory of the LPA. receipt of contract
(DO NOT DATE THE CONTRACT ON THE FIRST PAGE,THE OCR PRESIDENT WILL package sent to LPA by
DATE THE CONTRACT UPON SIGNING THE AGREEMENT) OCR
Contract Term: Start Date/Execution
Contract term is 2 years. No HOME LPA funds to be expended prior Date of the Contract is
to approval date of the Programmatic ERR and has received HUD the date signed by Vice
Authority to Use Grant Funds. President, Office of
Community Renewal
Date Programmatic Environmental Review(Tier 1 ERR)was
approved
Date HUD approved the Authority to use Grant Funds (ATUGF)
Initiation of Marketing and Outreach, Eligibility Determinations Immediate
50%of Funds Committed Within 6 months of
execution Date
100%of Funds Committed Within 12 months of
execution date
50%of Funds Expended Within 18 months of
execution date
100%of Funds Expended Within 24 months of
execution date
Submittal of Final Unit Disbursement Request 60 days prior to end of
contract date
Submittal of Final Completion Reports and Project Closeout Within 30 days after
Documents Final Disbursement
Program Completion Date 2 years from date signed
by Vice President, Office
of Community Renewal
1
Exhibit D
Program Schedule
B. Program Production Schedule
Year 1 Year 2: Year 3
Month HOME$ # Units HOME$ # Units HOME $ # Units
January
February
March
April
May
June
July
August
September
October
November
December
2
Exhibit E
Administrative Plan Amendments
Town of Queensbury 20133127
NYS HOME Local Program - Approved Activity:
Owner Occupied Rehabilitation
Administrative Plan Amendments:
• Procurement for services such as (but not limited to) energy audits or fiscal
audits can be hired for a maximum of the 2 year term of the contract. If
procurement for these services was done prior to the execution of this
contract, a new procurement must be performed.
• To determine Post-Rehabilitation Value of the home, one of the following will
be supplied: an assessment of value from the local assessor that specifically
includes the rehabilitation performed; estimate of value, performed by a
staffperson experienced in home valuations, with comparables; Paid
appraisal. All of the methods must specifically incorporate the rehab work
performed.
• At least 2 months of source documentation will be acquired to verify income.
estimated for the next 12 months. Income qualifications will be re-done if 6
months or more have elapsed between the first income qualification and the
signature of the contract. Income determination to be calculated by the
requirements of Part 5 definition.
• Proof of recent 6 months of on-time payments of mortgage is required as part
of the Eligibility Review. Homeowners must also be current on Property and
School taxes, as well as clear of any municipal debt (water, sewer, etc.).
• Every disbursement request for contractor payment requires sign-off by the
homeowner regardless of completion percentage.
• Lead Based Paint— No assumption effective March 1, 2015. The whole
property must be tested (not just the area where work will be done) on any
property built before 1978. All project activities in excess of$25,000 in
Federal funds (ex. HOME and CDBG) must include the LBP calculation
worksheet for project Set Up. (24 CFR Part 35 A, B,J,K,M and R).
• The whole house must comply with local or NYS building code (NOT HQS)
requirements at completion and Certificate of Occupancy is required.
Exhibit E—Town of Queensbury 20133127
Page 1 of 2
• Period of Affordability is mandatory and will be for 5 years.
• The use of the note and mortgage provided by NYS Housing Trust Fund
which identifies NYS Housing Trust Fund as the mortgagee is required.
• All funds recaptured or Program Income earned will be returned to NYSHCR
within 30 days of receipt by the Sub-recipient. Funds recaptured from
previous grants will not be used on this contract.
• Completion Reports must be submitted immediately following the receipt of
the final disbursement.
Exhibit E—Town of Queensbury 20133127
Page 2 of 2
Exhibit F
HTFC Note & Mortgage and Restrictive Covenant Template
'insert owner's name (capitalized)[
and
HOUSING TRUST FUND CORPORATION ("HTFC")
NEW YORK STATE HOME LOCAL PROGRAM
GRANT ENFORCEMENT
NOTE AND MORTGAGE
DATED AS OF [insert dated
This instrument affects real and personal property situated in the State of New York,
County of[insert name of county[, [insert name of city/town/villagel, [insert section, block
and lot# for HOME assisted units [Section ,Block , Lot 1 and
commonly known as [insert property address[.
[insert SHARS ID #J
RECORD AND RETURN TO:
HOUSING TRUST FUND CORPORATION
C/O NYS HOME Local Program
38-40 State Street,Albany,NY 12207
1
THIS NOTE AND MORTGAGE made as of the [insert day] day of[insert
month], in the year[insert year],between [insert Owner's name(capitalized)] ("Owner"), [an]
individual(s)residing at [insert Owner's address], and the HOUSING TRUST FUND
CORPORATION("HTFC"),having its principal place of business at 38-40 State Street,Albany,
NY 12207.
Owner hereby acknowledges that the HTFC has provided funds("Grant Funds")in the
amount of the Recapture Obligation(as defined in Paragraph 1 of this Note and Mortgage)
pursuant to Subtitle A of Title II of the Cranston Gonzalez National Affordable Housing Act
("HOME Investment Partnerships Program"),to be held in trust and to be used solely in
connection with the acquisition or improvement of the Property(as defined in Paragraph 2 of this
Note and Mortgage), and that this Note and Mortgage shall be subject to the trust fund provisions
of section 13 of the New York State Lien Law. Owner understands that the amount of the
Recapture Obligation represents a portion of the cost of the improvements or the purchase price
of the Property and agrees to HTFC's recapture of such amount as required herein.
1. For value received,Owner promises to pay to HTFC the sum of[insert amount of
loan spelled out(capitalized)] Dollars($[insert amount of loan in numerals])("Recapture
Obligation"), payable according to and in the manner provided in this Note and Mortgage.
2. Owner hereby mortgages to HTFC all right,title and interest of Owner in and to
the Property located in the [insert name of city/town/village ot], County of[insert name of
county], State of New York,more particularly described in Schedule A annexed hereto
("Property"); together with:
(a) the buildings and improvements on the Property;
(b) all of Owner's right,title and interest in and to any land lying in the bed of
the streets in front of and adjoining the Property to the center lines of such streets;
(c) all fixtures which now are or which later may be attached to or used or
useful in connection with the Property(but not including household furniture);
(d) all condemnation awards for any taking by a government or agency of the
whole or part of the Property or any easement(s)or right of way(s) in connection
with the Property(including awards for changes of grades of streets);
(e) all right,title and interest but not obligation,of Owner in and to all leases
and other agreements affecting the use or occupancy of the Property or any
common area appurtenant thereto; and
(f) any right,title and interest of Owner in and to any common areas
appurtenant thereto.
3. Owner and HTFC hereby acknowledge that the Property is subject to the lien of a
first loan made by [insert name, address of primary mortgage lender] ("Lender") [Note: if there is
2
a second lender/lien adjust the following paragraph to reflect I or 2 lenders] and a second loan
made by[insert second lender/lien] (the financing institution(s)which made the first and second
loans are collectively defined as the "Lender(s)"). The parties hereto agree that all terms and
provisions of this Note and Mortgage will be subject and subordinate to the lien(s)of the [choose
as appropriate Lender or Lender(s)] and any payments or expenses already made or incurred or
which may hereafter be made or incurred,pursuant to the terms of such loan(s)or incidental
thereto, or to protect the security thereof,to the full extent thereof. If any action or proceeding of
foreclosure is instituted by the [choose as appropriate Lender or Lender(s)], Owner will
immediately, upon service thereof,deliver to HTFC a true copy of each notice, petition,
summons or papers, served in such action or proceeding or in any such action or proceeding.
4. Owner shall fulfill the Recapture Obligation at the time and in the manner
provided in this Note and Mortgage. If Owner fails to make any payment required pursuant to
this Note and Mortgage, the lien created by this Note and Mortgage shall remain a lien on the
Property to secure payment of any unpaid portion of the Recapture Obligation.
5. The Recapture Obligation secured hereby will not require the payment of
installments from Owner to HTFC and shall be a standing obligation which will not accrue
interest. The Recapture Obligation cannot be pre-paid in whole or in part at any time unless
expressly agreed to in writing by HTFC.
6. The Recapture Obligation secured by this Note and Mortgage shall become
immediately due and payable if any one or more of the following events of default occurs:
a) if Owner fails to make any payment on [choose as appropriate Lender's
or Lender(s)'] loan(s)within 60 days of the date that any payment on such
loan(s)was due;
b) if the Owner sells,rents(except with regard to the rental of any accessory
apartment(s)on the Property), conveys any interest in or otherwise fails to
occupy the Property as his/her principal place of residence;
c) if Owner shall make an assignment for the benefit of creditors, or shall
institute any proceeding seeking relief on its behalf as debtor, or is
adjudicated bankrupt or insolvent;
d) if default shall be made in the payment of any tax,insurance premium or
other obligation required to be paid;
e) if any other default exists under this Note and Mortgage,any rider thereto,
or the [choose as appropriate Lender's or Lender(s)'1 loan(s).
7. The amount to be recaptured under this Note and Mortgage shall be the Recapture
Obligation,except that such amount will be reduced as described herein. Commencing one year
from the date of this Note and Mortgage("Anniversary Date"),provided that Owner has
continuously occupied the Property as his/her principal residence and is not in default hereunder,
3
the Recapture Obligation will be reduced by 1/ [insert number of years of period of
aftordability]. The start date of the period of affordability is the date the unit was closed out in
HUD's International Information and Disbursement System(IDIS). On each Anniversary Date
thereafter that Owner has continuously occupied the Property as his/her principal residence and
is not in default hereunder,the Recapture Obligation will be further reduced by 1/ [insert number
of years of affordability period].
8. This Note and Mortgage may be assumed with its original terms and conditions
by a HOME-eligible buyer during the Period of Affordability. An approved Local Program
Administrator("LPA")must assist the Owner to qualify the new HOME-eligible buyer. The
HTFC must approve the new buyer as HOME-eligible and approve the sale of the Property.
9. Subordination of this Note and Mortgage must be approved by the HTFC in
writing and be in compliance with NYS HOME Local Program Subordination policy.
10. If the Recapture Obligation becomes due and payable as a result of Owner's
transfer,whether voluntary or involuntary,of the Property,the sale proceeds,which shall include
cash and all other items of value received from the buyer and all mortgages or other
encumbrances assumed by the buyer or to which the Property may be subject in the hands of the
buyer, shall be distributed in the following order:
a) Owner shall first be reimbursed:
i) his/her down payment made at the time of the initial purchase of the
Property, if any;
ii) his/her verified cost of capital improvements to the Property,if any;
iii) his/her resale expenses which will include only the following items to the
extent actually incurred: broker's commission,reasonable attorney's fees,
and any transfer tax or recording fee payable by the seller pursuant to state
statute or local ordinance in connection with the conveyance; and
iv) the principal amortized on superior debt during the affordability period, if
any.
b) HTFC shall then be repaid the Recapture Obligation to the extent there are
sufficient sale proceeds remaining.
c) the remainder,if any, shall be retained by Owner.
11. If the HTFC incurs any costs in collecting the Recapture Obligation secured by
this Note and Mortgage, including but not limited to reasonable attorney's fees, such costs will be
added to the Recapture Obligation and shall also be secured by this Note and Mortgage.
4
12. This Note and Mortgage shall be deemed of no further force and effect upon the
[insert number of years of period of affordability] Anniversary Date hereof, and neither party to
this Note and Mortgage will have any further rights or obligations under this Note and Mortgage
against each other, except that, if Owner has failed to fulfill the Recapture Obligation due or
otherwise defaulted under the terms of this Note and Mortgage,then the security interest created
by this Note and Mortgage(in other words,the lien on the Property)will continue until the
amount of the Recapture Obligation plus all costs of collection payable under the terms of this
Note and Mortgage have been paid in full by Owner. HTFC will,on or after such Anniversary
Date,if Owner has complied with all of the requirements of this Note and Mortgage and upon
written request by Owner, execute a satisfaction or discharge of this Note and Mortgage or
HTFC may designate or authorize, in writing, an LPA to execute such satisfaction or discharge
on behalf of HTFC. Owner shall bear all costs to record or file said satisfaction or discharge
with the proper County Clerk or City Register.
13. Owner will keep the improvements on the Property insured against loss by fire
and other risks as required by [choose as appropriate Lender or Lender(s)] and as required by
HTFC.
14. Owner shall keep the Property in reasonably good repair, and shall pay, when due,
all taxes, assessments,water rates and sewer rents, as well as all other public charges imposed
against the Property. Owner shall,upon the request of HTFC, deliver to HTFC receipts
evidencing such payments.
15. Owner represents and warrants that Owner lawfully owns the Property and that
Owner has the right to mortgage the Property to HTFC. In addition, Owner gives HTFC a
general warranty of title. Owner further represents and warrants that the Property will be
(purchase)or currently is (improvement) Owner's principal place of residence.
16. Owner shall, within ten(10)days after request by HTFC and at Owner's expense,
furnish HTFC with a statement, duly acknowledged and certified, setting forth the amount of the
Recapture Obligation and whether any offsets or defenses exist against the Recapture Obligation.
17. All notices, demands certifications, requests, communications or the like
("Notices") required or permitted to be given under this Note and Mortgage, unless otherwise
specifically provided in this Note and Mortgage, shall be in writing and shall be deemed
delivered when mailed by certified or registered mail,correct postage prepaid and return receipt
requested, to the addresses set forth below, or to such other addresses as a party may from time
to time designate in writing.
If to HTFC:
Housing Trust Fund Corporation
38-40 State Street, Hampton Plaza
Albany, N.Y. 12207
Attn: Director,NYS HOME Local Program
•
5
If to Owner:
[Same as Property or mailing address]
With a copy to: •
[Name, address of LPA]
Or to such other address or person as shall be designated from time to time by notice.
18. The terms,covenants and conditions of this Note and Mortgage shall in all
respects be governed, construed, applied and enforced in accordance with the laws of the State of
New York.
19. This Note and Mortgage may only be modified, amended,changed,discharged or
terminated by an agreement in writing, in a form suitable for recording, signed by the party
against whom the enforcement of the modification, amendment, change,discharge or termination
is sought.
20. Owner warrants and represents that Owner(and the undersigned representatives
of Owner,if any)has full power, authority and legal right to execute and deliver this Note and
Mortgage and to mortgage all right,title and interest of Owner in and to the Property pursuant to
the terms hereof and to keep and observe all of the terms, covenants and conditions of this Note
and Mortgage on Owner's part to be performed.
21. If there is more than one Owner each will be separately liable. The words
"Owner" and "HTFC" will include their heirs,executors, administrators, successors and
permitted assigns. If there is more than one Owner,the word "Owner"used in this Note and
Mortgage will be read as if written in the plural. Words in the masculine or feminine gender
appearing herein will be deemed to refer to either or both male or female persons, as the sense of
the sentence requires.
22. This Note and Mortgage may be executed in one or more duplicate originals
bearing the same date.
[Remainder of this page intentionally left blank]
6
Owner states that Owner has read this Note and Mortgage,received a completely filled-
in copy of it and has duly signed this Note and Mortgage as of the date at the top of the first
page.
Owner:
[insert Owner's name]
[insert second Owner's name, if applicable]
ACKNOWLEDGEMENT
STATE OF NEW YORK)
) ss.:
COUNTY OF [insert Name of County where signed])
On the [insert Date] day of[insert Month] in the year[insert Year] before me, the undersigned,
personally appeared [insert Owner's name] personally known to me or proved to me on the basis
of satisfactory evidence to be the individual(s)whose names(s) is(are) subscribed to the within
instrument and acknowledged to me that he/she/they executed the same in his/her/their
capacity(ies), and that by his/her/their signature(s)on the instrument, the individual(s), or the
person on behalf of which the individual(s) acted, executed the instrument.
Notary Public
Commission Expires:
STATE OF NEW YORK)
) ss.:
COUNTY OF [insert Name of County where signed] )
On the [insert Date] day of[insert Month] in the year[insert Year],before me, the undersigned,
personally appeared[insert additional Owner's name, if applicable] personally known to me or
proved to me on the basis of satisfactory evidence to be the individual(s)whose names(s) is(are)
subscribed to the within instrument and acknowledged to me that he/she/they executed the same
in his/her/their capacity(ies), and that by his/her/their signature(s)on the instrument, the
individual(s), or the person on behalf of which the individual(s)acted, executed the instrument.
Notary Public
Commission Expires:
7
SCHEDULE A
LEGAL DESCRIPTION
jinsert legal description of the property from the deedl
If the description contained in this Schedule does not describe the same property as previously
described in this Mortgage,then this Mortgage shall be read so as to place a lien upon the
property described above and all properties described in this Mortgage. The Owner(s)agree(s)
that all descriptions used herein have been supplied by the Owner(s)and he/she/they expressly
consent to the provisions of this paragraph.
[insert owner's name (capitalized)]
and
HOUSING TRUST FUND CORPORATION ("HTFC")
NEW YORK STATE HOME LOCAL PROGRAM
GRANT ENFORCEMENT
DECLARATION OF LAND USE RESTRICTIVE COVENANTS
AND RESALE RESTRICTION
DATED AS OF [insert date
This instrument affects real and personal property situated in the State of New York,
County of[insert name of county[, [insert name of city/town/villagel, [insert section, block
and lot# for HOME assisted unit) [Section , Block ,Lot ) and
commonly known as [insert property address[.
[insert SHARS ID #]
RECORD AND RETURN TO:
HOUSING TRUST FUND CORPORATION
C/O NYS HOME Local Program
38-40 State Street,Albany,NY 12207
DECLARATION OF LAND USE RESTRICTIVE COVENANTS
AND RESALE RESTRICTION,
(Housing Trust Fund Corporation)
THIS DECLARATION OF LAND USE RESTRICTIVE COVENANTS AND RESALE
RESTRICTION, ("Declaration")is made as of[insert date of funding or transfer of title]
, 20_by[insert name(s) of homeowner/buyer(s)];residing at [insert
address of HOME-assisted unit] NY, [insert zip code], (the"Eligible Owner"),
AND IS GIVEN as a condition in favor of the award of certain HOME Local Program Funds as
administered by the HOUSING TRUST FUND CORPORATION ("HTFC"); a public benefit
corporation created and existing as a subsidiary of the New York State Housing Finance Agency
pursuant to Section 45-a of the of the Private Housing Finance Law having its principal place of
business at 38-40 State Street,Albany,NY 12207,pursuant to Title 21 Part 92 Subtitle A of Title
II of the Cranston-Gonzalez National Affordable Housing Act, as amended,42 U.S.C. 12701 et
seq., has set aside funds pursuant to Title I of the Housing and Community Development Act of
1974, as amended and 24 Code of Federal Regulations("CFR") Part 570, as the same may be
amended from time to time; and under a HOME Local Program Grant Agreement(designated by
SHARS ID# [insert SHARS ID#]),("Grant Agreement")dated as of[insert execution date of
Grant Agreement] by and between the HTFC and[insert name of Local
Program Administrator], ("LPA"),having its principal place of business at[insert address of
Local program Administrator].
WITNESSETH:
WHEREAS, pursuant to the terms of the Grant Agreement, the HTFC has awarded a
grant to the LPA, a portion of which are to be used for eligible use type: [insert type of HOME
eligible activity];and
WHEREAS, such HOME LPA Funds in the amount of$ [insert amount
of per unit assistance to eligible owner] ("HOME LPA Funds") shall be used for appropriate
eligible use duly allocable to certain property, fixtures, and improvements located on the
premises located at [insert property address and Section. Block and Lot number], Section_,
Block_, Lot # , (the "Property"), as such Property is more fully described in Schedule A
attached hereto; and
WHEREAS, the Eligible Owner has purchased or rehabilitated the Property and the
improvements located on such Property, situated in the County of[insert County where property
is located], at [insert property address, city. zip code], ("Assisted Unit"), and in connection with
such purchase or rehabilitation, the Eligible Owner has executed an Assistance Agreement with
the LPA ("Assistance Agreement") and received the benefit of the HOME LPA Funds for the
purpose(s) of the acquisition, rehabilitation, new construction (or a combination thereof) of the
Assisted Unit within the [insert name of project/program of LPA] (and as such,the Assisted Unit
is therefore subsidized by HTFC),and
2
WHEREAS, the Eligible Owner recognizes and agrees that the HOME LPA Funds must
be used in accordance with the provisions of the Assistance Agreement and Grant Agreements,
respectively, and that the LPA and HTFC are responsible for monitoring the proper uses of such
funds; and
WHEREAS, the Eligible Owner has represented to the LPA that the Eligible Owner is
qualified to receive such affordable housing assistance benefits under the terms of the Assistance
and Grant Agreements, respectively, and that the use restrictions applicable to the Property under
such agreements shall be maintained by the Eligible Owner with respect to the Assisted Unit for
at least the period of time set forth herein, knowing and understanding that HTFC is relying on
such representations in providing said benefits to Eligible Owner; and
WHEREAS, as a condition precedent to the awarding of HOME LPA Funds that the
Eligible Owner execute, deliver and record this Declaration on the official land records of the
County/City Register in which the Assisted Unit is located in order to create certain covenants
running with the land for the purpose of enforcing the requirements of Subpart F of 24 CFR Part
92, as amended, and the Use Restrictions found in Section 4 of this Declaration, by regulating
and restricting the use,occupancy, and transfer of the Assisted Unit, as set forth herein; and
WHEREAS, the regulatory and restrictive covenants set forth herein governing the use,
occupancy, operation and transfer of the Assisted Unit shall be and are covenants running with
the land for a term, which, except as otherwise is expressly provided in Section 5 of this
Declaration, shall terminate [insert number of years of period of affordability] years after the
date of this Declaration, and are binding upon all subsequent owners of the Assisted Unit for
such term, and are not merely personal covenants of the Eligible Owner; and
WHEREAS, HTFC, as a condition of its extension of financial assistance to the LPA
requires that the Eligible Owner shall, by entrance into the terms, conditions and covenants set
forth below, consent thereby to be regulated and restricted by HTFC as provided herein and by
any applicable statutes and rules, regulations, policies and procedures of the US Department of
Housing and Urban Development(HUD) and the HTFC; and
WHEREAS, the Assisted Unit is subject to the lien of a first mortgage loan made by
[insert name, address of primary/first mortgage lender] and the respective successors and assigns
thereof and this Declaration will be subject and subordinate to the mortgage securing the
Lender's interests in the Assisted Unit and any payments or expenses already made or incurred
or which may hereafter be made or incurred, pursuant to the terms of such Mortgage or
incidental thereto, or to protect the security thereof,to the full extent thereof and during the
Period of Affordability, any proposed sale, assignment, lease, encumbrance, transfer,or
mortgage shall be subject to the terms and rights of the respective Lender as enumerated in the
mortgage of such Lender. The affordability restrictions imposed by this agreement will
terminate upon occurrence of any of the following termination events by the first mortgage
lender: foreclosure,transfer in lieu of foreclosure or assignment of an FHA- insured mortgage to
HUD.
3
NOW THEREFORE, in consideration of the provision of the HOME LPA Funds, the
Eligible Owner agrees as follows:
Section 1 -Definitions
All the words and phrases used in this Declaration shall have the same meaning as when
used in 24 CFR Part 92, other applicable HUD regulations as same may be amended from time
to time, the Assistance Agreement and the Grant Agreement, unless the context requires
otherwise.
Section 2—Recording, Filing,Covenants Run With the Land
(a) Upon execution of this Declaration by the Eligible Owner, the LPA shall cause
this Declaration and all amendments hereto to be filed on the land records of the County/City
Register in which the Assisted Unit is located, and shall pay all charges incurred in connection
therewith. Upon recording, the LPA shall immediately transmit to the offices of HTFC a receipt
of the same and shall cause the recorded Declaration to be returned by the County/City Register
to the principal place of business of HTFC as stated on page two (2)of this Agreement.
(b) The Eligible Owner intends, declares, and covenants, on behalf of the Eligible
Owner and all future owners of the Assisted Unit during the term of this Declaration, that this
Declaration and the covenants and restrictions set forth in this Declaration regulating and
restricting the use, occupancy and transfer of the Assisted Unit: (1) shall be and are covenants
running with the land, encumbering the Assisted Unit for the term of this Declaration, binding
upon the Eligible Owner's successors in title and all subsequent owners of the Assisted Unit; and
(2) are not merely personal covenants of the Eligible Owner; and (3) shall bind the Eligible
Owner (and the benefits shall inure to HTFC, as its respective interest may appear) and the
Eligible Owner's heirs, successors and assigns during the term of this Declaration.
(c) The Eligible Owner hereby agrees that any and all requirements of the laws of the
State of New York to be satisfied in order for the provisions of this Declaration to constitute
deed restrictions and covenants running with the land are deemed satisfied in full, and that any
requirements or privileges of estate are intended to be satisfied, or in the alternate, that an
equitable servitude has been created to insure that these restrictions run with the Property and the
Assisted Unit.
(d) For the term of this Declaration, each and every contract,deed or other instrument
hereafter executed conveying the Assisted Unit, shall expressly provide that such conveyance is
subject to this Declaration; provided, however, the covenants contained herein shall survive and
be effective regardless of whether such contract, deed, or other instrument hereafter executed,
conveying the Assisted Unit,provides that such conveyance is subject to this Declaration.
(e) The Eligible Owner covenants to obtain the consent of any prior recorded lien
holder on the Assisted Unit to this Declaration and shall furnish a copy of such consent to HTFC.
Such consent(s)shall be furnished to the HTFC on or before the date of this Declaration.
4
(t) The affordability restrictions may terminate upon occurrence of any of the
following termination events: foreclosure, transfer in lieu of foreclosure or assignment of an
FHA- insured mortgage to HUD. The HTFC may use, in its sole discretion, purchase options,
rights of first refusal or other preemptive rights to purchase the housing before foreclosure sale to
preserve affordability. The affordability restrictions shall be revived according to the original
terms if, during the original affordability period, the owner of record before the termination
event,obtains an ownership interest in the housing.
Section 3 - Representations, Covenants and Warranties of the Eligible Owner
The Eligible Owner hereby represents, covenants, and warrants as follows:
(a) The Eligible Owner has the full legal right, power and authority to execute and
deliver this Declaration and that all Eligible Owners are executing this Declaration.
(b) The execution and performance of this Declaration by the Eligible Owner (1) will
not violate or, as applicable,has not violated any provision of law, rule or regulation or any order
of any court or other agency or governmental body; (2) will not violate or, as applicable, has not
violated any provision of any indenture, agreement, mortgage, mortgage note or the instrument
to which the Eligible Owner is a party or by which the Eligible Owner or the Assisted Unit is
bound; and (3) will not result in the creation or imposition of any prohibited encumbrance of any
nature.
(c) The Eligible Owner shall, at the time of execution and delivery of this Declaration
have good and marketable title to the Assisted Unit free and clear of any lien or encumbrance
except for encumbrances created pursuant to the purchase of the Assisted Unit and this
Declaration.
(d) The Assisted Unit constitutes or will constitute an Assisted Unit as defined by the
applicable HUD, NYS HOME LPA Funds regulations, and qualifies or will qualify as an HTFC
subsidized Assisted Unit under the Assistance and Grant Agreements.
(e) The Eligible Owner has not and will not execute any other declaration with
provisions contrary to, or in opposition to, the provisions hereof, and that in any event, the
requirements of this Declaration are paramount and controlling as to the rights and obligations
herein set forth and supersede any other requirements in conflict herewith.
(f) As of the date of this Declaration, the Assisted Unit meets the HOME LPA Funds
affordability requirements set forth in Section 4 below.
Section 4—Occupancy and Use Restriction.
The Eligible Owner represents, warrants, covenants and agrees that throughout the term of this
Declaration and in order to satisfy the requirements of HTFC and 24 CFR Part 92, as amended,
the Assisted Unit shall constitute a unit of affordable housing and shall meet the following
requirements:
5
(a) Homeowner Residency Requirements: the Eligible Owner shall continuously
occupy the Assisted Unit as his/her/their principal place of residence, commencing upon the date
the unit was closed out in HUD's International Information and Disbursement System ("IDIS")
for a period of [enter number of years of period of affordability] years.("Period of
Affordability") and the Eligible Owner shall not be permitted to sell, assign, lease, encumber,
mortgage (including any refinancing of existing debt) or otherwise dispose or transfer the
Assisted Unit during the Period of Affordability without the prior written consent of the LPA and
HTFC.
(b) The ownership of the property must be either in fee simple title or a ninety-nine
(99) year leasehold interest, or such other form of title or interest in the Assisted Unit as the
HTFC may approve and agree to in writing.
(c) In the event of a sale to an eligible buyer during the Period of Affordability, the
Eligible Owner agrees to submit all documentation required by the LPA or HTFC to assist the
LPA or HTFC to qualify the new buyer as eligible for assistance. During the Period of
Affordability, the LPA shall assist the Eligible Owner in qualifying a new buyer to meet HOME
LPA Program income and home purchase eligibility requirements. Any approved subsequent
buyer of the Assisted Unit during the Period of Affordability will be bound by the terms of this
Declaration and may be required to execute an amended Declaration which shall reduce the
Period of Affordability by the duration that the Eligible Owner continuously occupied the
Assisted Unit.
(d) The future resale of the Assisted Unit must provide the Eligible Owner a fair
return on investment as defined in the NYS HOME Local Program Recapture 24 CFR Part
92.254 to include the Eligible Owner's investment and any documented capital improvement in
the Assisted Unit.
(e) Income Limits: At the time of purchase of the Assisted Unit,the Eligible Owner's
gross income cannot exceed eighty percent (80%) of the area median income as determined by
HUD.
Section 5-Term of Declaration
(a) This Declaration, and the term of restricted use specified herein applies to the
Assisted Unit. The start date of the Period of Affordability is the date the unit was closed out in
HUD's International Information and Disbursement System (IDIS).and the Eligible Owner shall
comply with the restrictive covenants herein not later than the first day on which the Assisted
Unit is first occupied. This Declaration shall terminate on [enter end date of
Declaration] , 20
(b) Pursuant to 24 CFR,Part 92.254, as amended,this Declaration and the term of the
Period of Affordability shall remain in effect for not less than[enter number of years of period of
affordability] years without regard to the term of any mortgage or other underlying security and
without regard to any transfer of ownership.
6
•
Section 6- Enforcement of Restrictions
(a) The Eligible Owner shall submit any other information, documents,or
certifications requested by the LPA or HTFC, that are deemed reasonably necessary to
substantiate the Eligible Owner's continuing compliance with the provisions of the restrictions
specified in this Declaration.
(b) The Eligible Owner hereby agrees that the representations and covenants set forth
herein may be relied upon by the LPA, HTFC and all persons interested in compliance under the
Assistance and Grant Agreements,24 CFR Part 92 and all other applicable HUD regulations.
(c) The Eligible Owner covenants that he/she/they will not knowingly take or permit
any action that would result in a violation of the requirements of the Assistance and Grant
Agreements, 24 CFR Part 92, HUD, or any other applicable regulations referenced in this
Declaration. Moreover, the Eligible Owner covenants to take any lawful action (including
amendment of this Declaration as may be necessary, in the opinion of HTFC) to comply fully
with all applicable rules, rulings, policies, procedures, regulations or other official statements
promulgated or proposed and published by HUD from time to time pertaining to the Eligible
Owner's obligations under 24 CFR Part 92.
(d) The Eligible Owner acknowledges that the primary purpose for requiring
compliance by the Eligible Owner with the restrictions provided in this Declaration is to assure
compliance of the Assisted Unit and the Eligible Owner with the Assistance and Grant
Agreements, 24 CFR Part 92, and other applicable regulations, and by reason thereof, in
consideration of HOME LPA Funds provided by HTFC to the LPA, hereby agrees and consents
that HTFC, the LPA or each of them, shall be entitled, for any breach of the provisions hereon,
and in addition to all other remedies provided by law or in equity, to enforce specific
performance by the Eligible Owner of his/her/their obligations under this Declaration in a court
of competent jurisdiction. The Eligible Owner hereby further specifically acknowledges that the
beneficiaries of the Eligible Owner's obligations hereunder cannot be adequately compensated by
monetary damages in the event of any default hereunder.
(e) The Eligible Owner agrees to take any and all actions reasonably required by
HTFC to substantiate the Eligible Owner's compliance with the occupancy restrictions of 24
CFR Part 92, HUD, the Assistance Agreement and Grant Agreements, as now constituted or
subsequently amended.
(f) This Declaration shall be deemed a contract enforceable by HTFC, the LPA, or
their respective designee. In the event the Eligible Owner fails to satisfy the requirements of this
Declaration and legal costs are incurred by the LPA or HTFC, such legal costs, including
attorney fees and court costs (including costs of appeal), are the responsibility of, and may be
recovered from, the Eligible Owner.
7
Section 7—Record Keeping
During the term of this Declaration, including the Period of Affordability, the LPA shall
provide HTFC with reports, records and accounts in such form, content and frequency as
required or requested by HTFC.
Section 8- Miscellaneous
(a) Severability. The invalidity of any clause, part, or provision of this Declaration
shall not affect the validity of the remaining portions thereof.
(b) Notices. All notices to be given pursuant to this Declaration shall be in writing
and shall be deemed given when mailed by certified or registered mail, return receipt requested,
to the parties hereto at the addresses set forth below, or to such other place as a party may from
time to time designate in writing. The LPA,HTFC and the Eligible Owner,may,by notice given
hereunder, designate any further or different addresses to which subsequent notices, certificates
or other communications shall be sent.
If to HTFC: Housing Trust Fund Corporation
38-40 State Street
Albany,NY 12207
Attn: Director, HOME Local Program- HTFC
If to Eligible Owner: [insert name&address of homeowner/buyer(s)]
[should be same as Property]
With a copy to: [insert name& address of LPA]
Or to such other address or person as shall be designated from time to time by notice.
(c) Amendment. The Eligible Owner agrees to take all actions necessary to effect
amendment of this Declaration as may be necessary to comply with the Assistance Agreement,
Grant Agreements,24 CFR Part 92, HUD, and any and all applicable rules,regulations, policies,
procedures, rulings, or other official statements pertaining to the Assisted Unit. HTFC, together
with the Eligible Owner, may execute and record any amendment or modification to this
Declaration and such amendment or modification shall be binding on third-parties granted rights
under this Declaration.
(d) Governing Law. This Declaration shall be governed by the laws of the State of
New York and,where applicable,the laws of the United States of America.
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IN WITNESS WHEREOF,the Eligible Owner(s) hereto has/have executed this Declaration the
day and year first written above.
ELIGIBLE OWNER:
Eligible Owner(s)
Print Eligible Owner Name(s)
[LPA NAME]
By:
Title: Executive Director[insert title]
Print Executive Director Name
STATE OF NEW YORK )
COUNTY OF ) ss.:
On the [insert day] day of [insert month] in the year [insert year]
20_, before me, the undersigned, personally appeared [insert name of homeowner/buyer(s)]
personally known to me or proved to me on the basis of satisfactory evidence to be the
individual(s) whose name(s) (is) (are) subscribed to the within instrument and acknowledged to
me that he/she/they executed the same in his/her/their capacity(ies), and that by his/her/their
signature(s) on the instrument, the individual(s), or the person on behalf of which the
individual(s) acted,executed the instrument.
Notary Public
My Commission Expires:
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STATE OF NEW YORK )
COUNTY OF ) ss.:
On the [insert day] day of [insert month] in the year [insert year]
20 , before me, the undersigned, personally appeared [insert name of LPA Executive
Directoi/Officer], personally known to me or proved to me on the basis of satisfactory evidence
to be the individual whose name (is) subscribed to the within instrument and acknowledged to
me that he/she executed the same in his/her capacity, and that by his/her signature on the
instrument, the individual, or the person on behalf of which the individual acted, executed the
instrument.
Notary Public
My Commission Expires:
[Remainder of this page left intentionally blank]
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SCHEDULE A
Legal Description of the Property
[insert legal property description from deed]
If the description contained in this Schedule does not describe the same property as previously
described in this Declaration, then this Declaration shall be read so as to place a lien upon the
Property described above and all properties described in this Declaration. The Eligible Owner(s)
agree(s) that all descriptions used herein have been supplied by the Eligible Owner(s) and
he/she/they expressly consent to the provisions in this paragraph.
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