City of Charleston Funding Guide and Application for
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2022-2023 City of Charleston Funding Guide and Application for the HOME Investment Partnerships Program City of Charleston Department of Housing and Community Development 75 Calhoun Street, 3rd Floor, Suite 3200 Charleston, South Carolina 29401 (843) 724-3766 http://charleston-sc.gov/index.aspx?nid=233 1
City of Charleston Department of Housing and Community Development APPLICATION FOR HOME INVESTMENT PARTNERSHIPS PROGRAM FUNDS (Instructions for this application begin on page 10 of this document.) The following information constitutes a complete application. Applications missing required elements (as listed below) will not be considered for funding. Agency submitting application: ________________________________ By signing below, I certify that all of the items listed below are included in this application package or marked “not applicable” below: ______________________________________________ (Please print name) (Date) Required elements Location in this document 1 Application checklist p. 2 - 3 1 Section I – Agency Information p. 4 - 5 1 Section II – Project Information p. 6 – 7 1 Project Budget Summary p. 8 1 Grant Budget Summary p. 9 1 Section III – Project Narrative p. 10 1 Description of Proposed Activity 1 Program Evaluation Criteria 1 Organizational Capacity Budget Narrative For rental units: 1 HOME Rental Program Certifications and Requirements 1 HOME Program Rental Application See file “HOME Program Rental Application 2020.xls “ 1 HOME Program Rents See file “HOME Rents 2020.xls“ 2
1 Attachment A: Articles of Incorporation and/or by-laws 1 Attachment B: Non-profit 501(c)(3) letter of determination from the Internal Revenue Service 1 Attachment C: Current list of Board of Directors (names, addresses, officers) 1 Attachment D: Designation/approval from Board of Directors for submission of application for HOME funds (specify the project) 1 Attachment E: Financial statement and/or most recent audit 1 Attachment F: Agency’s current operating budget (sources and uses) 1 Attachment G: Annual Report (if available) 1 Attachment H: Resume of Program Administrator and Fiscal Officer 1 Attachment I: Statement that describes the agency's previous experience administering grant programs. 1 Attachment J: Letters showing pursuit of additional funding for project (commitment and/or denial letters) 1 Attachment K: Drawings, plans, specifications 1 Attachment L: Pro forma (including all funding sources and estimated project costs) 1 Attachment M: Project Location map 1 Attachment N: Appraisal(s) of land or property (if project involves the acquisition of land or property with the requested funds) 1 Attachment O: Names, addresses and qualifications of key project persons such as architect, developer, contractor, etc. 1 Attachment P: Project schedule 1 Attachment Q: Two written references detailing the organization’s programmatic and financial capacity; a reference should be provided from the organization’s CPA, bookkeeper, and/or an agency that has provided funding to your organization, etc. City of Charleston 3
Department of Housing and Community Development Application for HOME Funds Section I - Agency Information 1. Submitted by (person responsible for application): ______________________ Title: __________________________________________________________ 2. Agency name: __________________________________________________ 3. Address: _______________________________________________________ 4. Telephone number: ____________________ Fax Number: _____________ 5. Email address: _________________________________________________ 6. DUNS Number: _________________________________________________ 7. Tax identification number: _________________________________________ 8. Years in operation: _________________________ 9. Total number of full-time employees: ______ Part-time employees: ______ 10. Total amount of most current annual operating budget: $ _______________ (Please include a copy of the agency’s operating budget as Attachment F.) 11. Agency’s purpose/mission: _________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ 12. Describe services provided: _________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ 13. Is the agency currently receiving CDBG or HOME funds from the City of Charleston? __Yes __No If yes, identify amount and project/program $____________________________ Has the agency expended at least 60 percent of this funding? __Yes __No 14. Has the agency received HOME funds in the past? __Yes __No 4
If yes, what was the total amount? $_____________ Did you implement a successful activity or project? (Provide details)__________________________________________________________ ________________________________________________________________ ________________________________________________________________ 15. Is the agency receiving funding from the City of Charleston other than CDBG or HOME funds? ___ If yes, identify amount and project/program $____________________________ 16. Does your agency allocate costs across multiple grant programs? ___________ If yes, please describe the methodology used to allocate costs. _____________ ________________________________________________________________ 17. Please provide the number of clients/beneficiaries served by agency between June 1, 2020 and May 31, 2021: ___________ 18. Has the agency submitted quarterly and annual financial and programmatic reports to the City on time? _____Yes ______No If not, why? ______________________ 19. In the past year, has the agency expended $750,000 or more in federal grant funds? ____ 20. Does the agency have an audit conducted annually? __Yes __No 21. Has the agency had audit or monitoring findings in the past? __Yes __No If yes, what was the nature of the finding and was it resolved? _________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ 22. Does the agency have liability insurance? ___yes ____no Pay payroll taxes and worker's compensation? ___yes ____no Have fidelity bond coverage? ___yes ____no 23. What type of financial management system does your agency use? ___________ Applications are due on or before Thursday, January 13, 2022 by 4:00 p.m. 5
City of Charleston Department of Housing and Community Development Application for HOME Funds Section II – Project Information 1. Project name: ____________________________________________________ 2. Brief description of the project: _______________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ 3. What staff or consultant will oversee the program/ development? ________________________________________________________________ ________________________________________________________________ 4. How does this project relate to the agency’s mission? _____________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ 5. Location of project: ________________________________________________ ________________________________________________________________ 6. Project location TMS Number(s): _____________________________________ 7. Has the Neighborhood Association/community where the project is located been notified of this project. If not, when do you plan to contact them about your project? ________________________________________________________ 8. Amount of HOME funds being requested (requests should not exceed $50,000): $ ________________ 9. How will the funds be utilized? _______________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ 10. Which one of the City’s Consolidated Plan strategies does the proposed project most closely address? Please see list in Exhibit A. ________________________________________________________________ 6
11. Indicate the appropriate numerical output for the project (listed with strategies found in Exhibit A): ____________________________________________ (Example: “10 housing units developed” if Strategy 1A.5 is specified above.) 12. Target population to be assisted by project/program (check all that apply): 1 Potential homebuyers 1 Homeless 1 Households at or below 80% AMI 1 Renters 1 Persons with disabilities 1 Households at or below 60% AMI 1 Current homeowners 1 Persons with HIV/AIDS 1 Households at or below 50% AMI 1 Other, please specify: _________________________ 13. Is all required funding in place for project implementation? Yes___ No___ 14. Can implementation begin within 60 days (Admin) or 90 days (Construction/Rehab) of contract execution? Yes____ No___ If not, why? _______________________________________ ________________________________________________________________ _______________________________________________________________ 12. Indicate which HOME-eligible category this project falls into: 1 Rehabilitation of rental units 1 Rehabilitation of homeowner-occupied units 1 New construction of rental units 1 New construction of homeownership units 1 Property acquisition for affordable rental or homeownership housing development 1 Direct subsidies to homebuyers 1 Tenant-based rental assistance (Note: The City of Charleston does not fund this activity) 1 CHDO operating expenses (only in conjunction with a qualified housing development) 1 Other, please specify from list on page 13: _________________ 7
City of Charleston Department of Housing and Community Development Proposed Budget for Program Year Beginning June 1, 2022 Project Budget Summary Name of project: ___________________________________________________ Agency: _________________________________________________________ Please note that the City of Charleston gives priority to proposals that leverage other sources of funding. Applicants must include copies of letters and/or applications evidencing other funds pursued to support the project as Attachment J. % of Total Commitment Status Funding Sources Amount Proposed Project (“awarded,” “applied Budget for,” etc.) City of Charleston HOME funds requested City of Charleston HOME funds previously awarded City of Charleston CDBG funds requested City of Charleston CDBG funds previously awarded State of SC HOME funds SC Housing Trust Fund SC Community Loan Fund SC Low-Income Housing Tax Credit equity Other federal funding Private funding In-kind donations Other 100% TOTAL 8
City of Charleston Department of Housing and Community Development Proposed Budget for Program Year Beginning June 1, 2022 Grant Budget Summary Name of project: ___________________________________________________ Agency: _________________________________________________________ HOME amount requested: $ ___________ Below, please indicate the proposed uses of the HOME funds requested (e.g., down-payment assistance, construction costs, staff salaries, etc.). In addition to the chart below provide a Budget Narrative (Section III, #4). The Budget Narrative should show a clear rationale and justification for the funding request. The narrative should support each of the proposed budget items against measurable units of services to be delivered in response to the statement of need. % of total grant Proposed use of funds HOME amount amount requested TOTAL 100% **NOTE: This is the last page of the application form. A complete application consists of the following: (1) Completed and signed checklist (pages 1-2); (2) Section I (pages 3-4); (3) Section II (pages 5-8); (4) Section III (project narratives described on the following page); (5) Rental unit requirements (if applicable – detailed on the checklist); and (6) Attachments detailed on the checklist. 9
City of Charleston Department of Housing and Community Development Application for HOME Funds Section III – Project Narrative Attach a brief narrative which addresses the following items: 1. Description of Proposed Activity – The narrative should include the following information in the order in which it is requested: (a) Statement of Need – Define the nature, extent and impact of the need that this proposal addresses. (b) Proposed Accomplishments – What will the project accomplish? Please describe clearly and concisely. Also describe the project’s overall goals and objectives. Explain how the proposed project assists in meeting one of the City’s Consolidated Plan goals (Please see list in Exhibit A.). (c) Location – Where will the project be located? Will the project be located in the Neighborhood Revitalization Strategy Area (NRSA). Have residents been informed of the project and offered their support? (d) Beneficiaries – Who are the beneficiaries of the project? Provide information on anticipated clients and how it will be documented that the clients are income-eligible. (Subrecipients must maintain records to document that the beneficiaries of the project meet eligibility guidelines.) (e) Project Schedule – When will the project begin? Provide a detailed time frame and work plan for the project. The schedule should include a list of tasks to be completed and anticipated dates of completion. Please note that any agency applying for funds must be able to begin expending funds within 60 days(Admin) or 90 days (Construction/Rehab)of contract execution or funding may be withdrawn. 2. Program Evaluation Criteria – Describe how desired outcomes will be measured. The program outcomes must address the specific impact on the need being addressed. The performance standards should measure the impact of the outcomes on the program’s stated goals. If funding is awarded, the recipient will be monitored and evaluated according to these criteria along with the New Subrecipient Monitoring Requirements; Uniform Guidance for Federal Awards (2 CFR 200) and related initiatives of the City of Charleston. 3. Organizational Capacity – Provide a detailed description of the agency including its mission, goals, and objectives. In addition, describe its capacity to implement the proposed project. Also, provide a description of previous experience in administering grant-funded projects/programs. Provide examples of projects/programs implemented under the City of Charleston’s programs as well as other programs. 10
4. Budget Narrative -- Per the Grant Budget Summary chart on page 8, provide a Budget Narrative that shows a clear rationale and justification for the funding request. The narrative should support each of the proposed budget items against measurable units of services to be delivered in response to the statement of need. 11
City of Charleston Department of Housing and Community Development APPLICATION FOR HOME INVESTMENT PARTNERSHIPS PROGRAM FUNDS Introduction The City of Charleston anticipates receiving approximately $545,666 in HOME Investment Partnerships Program funds from the U.S. Department of Housing and Urban Development (HUD) for the 2022-2023 program year. These funds will be used to support projects that accomplish the goals and objectives outlined in the City’s 2020-2025 Consolidated Plan. Applications are received once a year and must support the ongoing neighborhood revitalization efforts currently underway in the City of Charleston. Funding requests should not exceed $50,000.00. The City of Charleston will hold a Public Hearing scheduled, Monday, January 24, 2022 via an electronic meeting platform that will be confirmed later. The purpose of this public hearing is to allow applicants an opportunity to make a brief presentation to the Community Development Citizens’ Advisory Committee. Applicants are strongly encouraged to attend this meeting. This will be the only opportunity to present your proposal to the Community Development Citizens’ Advisory Committee. Please review the attached guidelines carefully before completing the application. For questions about the application package, its requirements, or the HOME program guidelines, please contact Matt Ojala at (843) 724-7351 or ojalam@charleston-sc.gov. Applications must be submitted on or before Thursday, January 13, 2022 at 4:00 p.m. Application Submission Guidelines 1. Use the application checklist (found on pages 1-2 of this document) as the cover page for the application. Please note that applications which do not contain all required elements – such as copies of applications for funding or commitment/denial letters from other funding sources – will not be considered for funding. All elements listed on the checklist should be present or marked “not applicable,” and the page should be signed by the person responsible for the application. 2. Submit an original application and one copy. 3. Do not put applications in binders or staples – use binder clips. 4. Be clear and concise – there is no need for lengthy text if the project is clearly defined and the question has been answered. 12
5. Applications may be mailed or hand-delivered to: Geona Shaw Johnson, Director City of Charleston Department of Housing and Community Development 75 Calhoun Street Suite 3200 Charleston, South Carolina 29403 Applications must be received in the Department of Housing and Community Development on or before Thursday, January 13, 2022 at 4:00pm. – postmarks will not be considered. NO EXCEPTIONS ARE ALLOWED. 6. Include the name and phone number of the person best suited to answer questions about the application should City staff require additional information or clarification. The HOME Program The HOME Program is authorized by Title II of the Cranston-Gonzalez National Affordable Housing Act of 1990, as amended. (Program regulations can be found at 24 CFR Part 92.) The program is funded by the U.S. Department of Housing and Urban Development (HUD) and administered by the City of Charleston Department of Housing and Community Development. HOME Program funds can be used for a range of housing activities, including building, buying, or rehabilitating affordable rental or ownership housing. Fifteen (15%) percent of each jurisdiction’s HOME allocation is set-aside for qualified, non-profit community housing development organizations (CHDOs). Local governments are given the authority to determine local needs, objectives, and goals consistent with the objectives of the program. HUD published a Final Rule in the Federal Register on July 24, 2013 to amend the HOME Investment Partnerships (HOME) Program regulations. These amendments to the HOME regulations represent the most significant changes to the HOME Program in 17 years. Additional guidance is provided at; https://www.hudexchange.info/programs/home/home-final-rule/ HOME Program Requirements 1. Any organization applying for funds for construction work of 12 or more HOME- assisted units must agree to comply with the federal Davis-Bacon labor standards provisions and requirements. 2. Any applicants awarded HOME funds must provide worker's compensation insurance for employees and comply with bonding and insurance requirements of OMB Circular A-110. (OMB Circulars can be found at; https://www.whitehouse.gov/wp-content/uploads/2017/11/Circular-110.pdf 3. Applicants awarded funds must comply with the following Civil Rights laws and regulations: Title I of the Civil Rights Act of 1964, as amended 13
Title VII of the Civil Rights Act of 1968, as amended Section 109 of Title I of the Housing and Community Development Act of 1974, as amended Section 504 of the Rehabilitation Act of 1973 Americans with Disabilities Act of 1990 Age Discrimination Act of 1975 Executive Order 11063 Executive Order 11246, as amended Executive Order 11375 Executive Order 12086 4. Applicants awarded funds must agree to carry out an affirmative action program in keeping with the principles of Executive Order 11246. The organization shall further agree to use its best efforts to afford minority- and women-owned business enterprises the maximum practicable opportunity to participate in the performance of the project awarded HOME funds. In addition, the organization shall comply with the provisions of Section 3 which requires that, to the greatest extent feasible, opportunities for training and employment be given to lower- income residents and that contracts for work will be awarded to business concerns owned by persons residing in the project’s area. 5. The organization must agree to abide by the provisions of 24 CFR 570.611 with respect to conflicts of interest and covenants. The organization must presently have no financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any manner or degree with the performance of services required. The organization must further agree that no person having a financial interest shall be employed or retained by the organization. 6. The organization must ensure that all subcontracts let in the performance of the project funded with HOME shall be awarded on a fair and open competitive basis. 7. Applicants awarded funds must agree to comply with the Uniform Relocation Act. This act relates to the acquisition and disposition of all real property utilizing grant funds and to the displacement of persons, businesses, non-profit organizations, and farms occurring as a result of any acquisition of real property using grant funds. 8. Applicants pursuing HOME funds must comply with the environmental conditions and requirements of the HOME program. Please note that once an application has been submitted for funding, no further choice-limiting actions should occur. Choice-limiting actions are defined by HUD as property acquisition, demolition, movement, rehabilitation, conversion, repair or construction prior to the environmental clearance. In accordance with 24 CFR Part 58, recipients, owners, developers, sponsors or any third-party partners cannot undertake any physical actions on a site, commit, expend, or enter into any legally binding agreements that constitute choice-limiting actions for any HUD or non-HUD funds before the environmental review process has been 14
completed and the City has received a Release of Funds from HUD, if required. Any violation of this provision will result in the automatic denial of this funding request (or de-obligation of the CDBG/HOME funds, if already awarded). 9. The organization must also agree to comply with the lead-based paint provisions of the HOME program in the construction or rehabilitation of any residential structures. 10. Agencies awarded HOME funds must comply with the accounting standards of OMB Circular A-110 and agree to adhere to the accounting principles and procedures required, utilize adequate internal controls, and maintain necessary documentation. The organization must further agree to administer its program in accordance with OMB Circular A-122 relating to cost principles for all costs incurred, whether direct or indirect. (OMB Circulars can be found at; https://www.hud.gov/sites/documents/DOC_12492.PDF 11. Eligible Activities: The HOME regulations specify which activities are eligible and ineligible for HOME funding. Eligible activities include the following: (a) Rehabilitation of rental homes (b) Rehabilitation of homeowner-occupied homes (c) New construction of rental apartments (d) New construction of ownership homes (e) Property acquisition for affordable rental or homeownership housing development (f) Site improvements (is undertaken in conjunction with rehabilitation, new construction, or property acquisition) (g) On-site infrastructure (is undertaken in conjunction with rehabilitation, new construction, or property acquisition) (h) New, off-site utility connections (is undertaken in conjunction with rehabilitation, new construction, or property acquisition) (i) Demolition (is undertaken in conjunction with rehabilitation, new construction, or property acquisition) (j) Direct subsidies to homebuyers (k) Tenant-based rental assistance (l) Energy-related repairs or improvements (m) Improvements necessary for persons with disabilities (n) Abatement of lead-based paint hazards 15
(o) CHDO operating expenses (p) Relocation costs pursuant to the Uniform Relocation Act and the Barney Frank Amendments (q) Acquisition of vacant land (r) Conversion of an existing structure from another use to affordable housing (s) To purchase and/or rehabilitate a manufactured house, or purchase the land upon which a manufactured home is located. 12. Ineligible Activities: The following activities are ineligible and cannot be funded by the HOME program: (a) Emergency repairs to properties that are not up to standards (b) Assistance to public housing (c) Source of match for other federal programs (except McKinney Act funds) (d) Project-based rental assistance (e) Assistance to projects that received HOME funding more than one year ago (f) Assistance to ownership housing that have previously been assisted with HOME funds Additional resources can be accessed at: http://www.archives.gov/federal_register/executive_orders/executive_orders.html 13. HOME-funded agencies must certify that no federal funds have been paid or will be paid, by or on behalf of any person, for influencing or attempting to influence an officer or employee of any agency, member of Congress, an officer or employee of Congress, or an employee of a member of Congress in connection with the awarding of any federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal grant, contract, loan, or cooperative agreement. This provision also applies to any subcontracts that the awarded organization may enter into. HOME-funded agencies must certify that no conflict of interest exists in the procurement of supplies, equipment, construction, and services; the acquisition of and disposition of real property and the provision of assistance by the recipient to individuals, businesses, and other private entities under eligible activities which authorize such assistance, i.e., rehabilitation, preservation, and improvement of private properties or facilities, grants, loans, and other assistance to businesses, individuals, and other private entities. 16
Additional Considerations 1. Applications will be considered based on the project's contribution to the accomplishment of the goals of the Consolidated Plan. The Consolidated Plan goals and objectives are detailed in Exhibit A of this document. 2. Any agency applying for funds must be able to begin expending funds within 60 days (Admin) or 90 days (Construction/Rehab) of contract execution. 3. Any agency previously awarded HOME funds must have expended at least 60 percent of those funds at the time of submission of this application. 4. Preference will be given to applications that demonstrate the ability to impact the Community Development Target Area. 5. Applicants must demonstrate that they have attempted to obtain funds from other sources. Evidence of this should be included as part of the project narrative and submitted with the application. Letters of approval and denial should be included in the application package (Attachment J). 6. Applicants must report all other sources of funds being used for the proposed project, the amount of funds, and how the funds will be used. 7. Applications which include requests to utilize HOME CHDO operating funds for administrative costs must demonstrate that funds are absolutely necessary to continue operations, that other funds have been solicited, and clearly show how the funds will be used in the operating budget. Salaries and fringe benefits must also be included. Applicants must also include a plan to reduce dependency on the City of Charleston for administrative expenses after a maximum of three (3) years. 8. A separate application must be completed and submitted for each project/program. 9. Applicants’ offices may be located outside of the City of Charleston; however, the proposed project must serve the City of Charleston’s targeted neighborhoods. Evaluation Criteria The Community Development Citizens’ Advisory Committee is a group of committed volunteers who work with City staff to review proposals and make funding recommendations to City Council. The City of Charleston has developed an objective set of criteria to be used in making funding recommendations. The following information will be used by Housing and Community Development staff to review and rank proposals received 17
for funding. A summary of this information will be made available to the Community Development Citizens’ Advisory Committee members as they review proposals and make funding recommendations. Additionally, the Advisory Committee also depends heavily on the monitoring reports prepared annually by Housing and Community Development staff for organizations previously awarded funding. The factors considered are: 1. Proposed project addresses a critical need in the community according to the 2020-2025 Consolidated Plan; 2. Proposed project is clearly described, achievable, and ready to be implemented with funding in place; 3. Proposed project has measurable and realistic goals and objectives; 4. Applicant has the capacity and a proven track record in completing neighborhood revitalization projects; 5. Proposed project leverages requested funds with volunteers, cash contributions, and other in-kind documented contributions. Sponsoring agency must be able to show evidence of committed funds. Agency must also demonstrate that it has applied for funding for the proposed project from other sources. Applications will also be reviewed for completeness, eligibility, and positive previous experience in administering City grant funding. Funding recommendations will be based on the committee’s scoring results utilizing the following criteria and scoring: CRITERIA MAXIMUM POINTS Organizational Experience 20 Organizational Capacity 20 Statement of Need 10 Project Description 10 Goals 10 Leverage, In-Kind and other Financial contributions 15 Budget 10 Budget Narrative 5 TOTAL POINTS 100 18
APPLICATION FOR HOME PROGRAM FUNDS SCHEDULE * October 12, 2021 Availability of funding advertised. *January 13, 2022 4:00 p.m. deadline for submitting applications to the City of Charleston Dept. of Housing and Community Development. Late applications will not be considered for funding. **January 24, 2022 4:30 p.m. Public Hearing: Applicants will present proposals to the Community Development Citizens Advisory Committee. *March 31, 2022 Notification of funding awards to applicants **September 15, 2022 Sub-Grantee workshop. Attendance is mandatory to receive funds. *All dates are subject to change. ** MANDATORY ATTENDANCE 19
The City of Charleston Department of Housing and Community Development Income Limits FY 2021 City of Chas. Beazer Extremely Very low Low Median family Homeownership Homes low income income Income income Initiative income [Daniel limit Island] 30% 50% 60% 65% 80% 100% 120% 150% Workforce Housing HOUSEHOLD SIZE 1 $17,300 $28,750 $34,500 $37,375 $46,000 $57,500 $69,000 $86,250 2 $19,750 $32,850 $39,420 $42,705 $52,600 $65,700 $78,840 $98,550 3 $22,200 $36,950 $44,340 $48,035 $59,150 $73,900 $88,680 $110,850 4 $24,650 $41,050 $49,260 $53,365 $65,700 $82,100 $98,520 $123,150 5 $26,650 $44,350 $53,220 $57,655 $71,000 $88,700 $106,440 $133,050 6 $28,600 $47,650 $57,180 $61,945 $76,250 $95,300 $114,360 $142,950 7 $30,600 $50,950 $61,140 $66,235 $81,500 $101,900 $122,280 $152,850 8 $32,550 $54,200 $65,040 $70,460 $86,750 $108,400 $130,080 $162,600 To establish consistent income limits, the City of Charleston is using the HOME Program's published limits for the 30, 50, 60, and 80 percent limits. The 65, 120 and 150 percent limits are calculated using the 100% area median income adjusted for family size. Effective June 1, 2021 1
HOME RENTAL PROGRAM CERTIFICATIONS AND REQUIREMENTS Annual Verification and Re-certification of Tenant Income I/We understand that it is the borrower’s responsibility to annually verify the incomes of the occupants of each “HOME-assisted” unit and to also certify in writing that the “HOME-assisted” units’ tenants’ incomes are in compliance with the HUD regulations. The verified initial incomes of tenants must not exceed sixty percent (60%) of the area median income (please see attached income limits chart). In the event that a tenant’s income increases and exceeds eighty percent (80%) of the area median income, the tenant will be allowed to remain in the unit provided the “over-income tenant” pays no less than thirty percent (30%) of their adjusted monthly income for rent and utilities. Additionally, the first subsequent “HOME-assisted” unit which becomes vacant must be leased to another eligible tenant at a low or high HOME rent (whichever is appropriate) to replace the over-income unit. _________ Initials Annual Rent Reviews I/We understand that I/we will be required to annually re-examine rents charged to the “HOME-assisted” units to ensure that the rents charged do not exceed the maximum HUD rent control limits. I/We also understand that HUD may change the rents at any time, and HUD may also adjust the rents up or down on an annual basis. The adjusted rent limits will be made available by the City. ________ Initials Lease Prohibitions I/We certify that we have received a copy of the prohibited lease provisions and agree not to include any of the prohibited lease provisions in the lease agreement with tenants occupying the “HOME-assisted” units. _______ Initials 2
Annual Housing Quality Standards Inspections I/We understand that the City will be required to make annual inspections to ensure that the “HOME-assisted” units are being properly maintained and meet, at minimum, the City’s Housing Quality Standards (HQS). If it is determined by the City that the units do not meet the City’s HQS, I/we will immediately upon notification make the necessary repairs in order to be in compliance with the City’s HQS _______ Initials Affirmative Marketing Policy I/We hereby verify that I/we have received, read, and understand the City of Charleston’s Affirmative Marketing Policy, and we further agree to abide by the requirements as set forth in the policy. _______ Initials Layering and Future Federal Subsidy Waiver I/We acknowledge that the City is required to ensure that excessive federal funds have not been awarded to the project. As a result, the City has the right to, at any time before or after the loan closing, review the funding sources and uses to ensure that layering is not in effect. I/we understand that by accepting the HOME Program subsidy, I/we are waiving the right to apply for future federal assistance for the rehabilitation of the property during the term of the HOME Rental Program loan. _______ Initials Agreement I/We agree to all the before-mentioned certifications and requirements and understand that these requirements will remain in effect the full term of the loan as indicated on the note and mortgage. I/We further agree to adhere to any subsequent policies and or regulations as established by the City or HUD in order to remain in compliance with the rules and regulations which govern the HOME Rental Program. ____________________________ ______________ BORROWER DATE ____________________________ ______________ CO-BORROWER DATE 3
HOME Rental Program Affirmative Marketing Policy Statement of Policy In accordance with the regulations outlined in the HOME Program’s Affirmative Marketing (92.351) and Equal Opportunity and Fair Housing (92.350) sections of the HUD Federal Register, and in furtherance of the City of Charleston’s commitment to non-discrimination and equal opportunity in housing, the City of Charleston establishes procedures to affirmatively market units constructed or rehabilitated under the HOME Program. These procedures are intended to further the objectives of Title V111 of the Civil Rights Act of 1968, Executive Order 11063 and the City of Charleston’s local Fair Housing Ordinance. The City will also ensure that no person shall on the grounds of race, color, national origin, religion, sex, age, or handicap be excluded from participation in, denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with HOME funds. It is the affirmative marketing goal of the City of Charleston to assure that individuals who normally might not apply to purchase newly constructed or rent vacant rehabilitated units because of their race or ethnicity: - know about vacancies, - feel welcome to apply, and/or - have the opportunity to purchase or rent the units. The City of Charleston is committed to the goals of affirmative marketing which will be implemented in the HOME Program through a specific set of steps that the City and program participants will follow. These goals will be reached through the following procedures: 1. Information. All brochures and other printed materials produced by or for the City in order to publicize the HOME Program shall contain information on the applicability of federal Fair Housing laws and of this policy on all HOME projects. All public announcements will mention the applicability of fair housing standards to the program. Groups with a known or anticipated interest in fair housing or the HOME program will be provided with information copies of all printed materials and releases. 2. Requirements. Property owners and their managing agents, if applicable, who apply for funds under the HOME Program through the City will be required to adhere to the information standards of the preceding paragraph as they apply to the marketing program or tenant-seeking efforts of the owner or manager of the rental project in question. The City will arrange with the Housing Authority of the City of Charleston to offer appropriate assistance to affected owners and 4
managers in their marketingprograms, as well as offer its own assistance. This will be done in order to inform and solicit rental applications from perspective tenants in the housing market area who are not likely to apply for the housing without special outreach efforts. The City of Charleston will require that the property owners selected for participation in the program comply with affirmative marketing requirements by means of an agreement which will be applicable for the life of the subsidy. Failure to carry out the agreement could make an owner ineligible to participate in the program with future projects as well as cause the HOME Subsidy Note to become immediately due and payable. Owners or rental properties newly constructed or rehabilitated under this program shall be responsible for renting assisted units without regard to race, color, religion, sex, national origin, age, or handicap of the tenant. Additionally, property owners shall agree to carry out an affirmative marketing program to attract tenants of all groups. Such a program shall typically involve publicizing to minority persons the availability of housing opportunities through the type of media customarily utilized and by using the “Equal Housing Opportunity” logo. 3. Records. Chronological records by project will be kept by the City regarding efforts by the owners, managers, Housing Authority, and the City to market vacant units according to affirmative marketing standards. The owner, or manager as applicable, will be required to keep records of the following tenant characteristics of households filling vacant units subject to this marketing system. 1.) Name the tenant 2.) Annual income of tenant 3.) Race and ethnicity of tenant 4.) Household family size 5.) Rent charged 6.) Elderly, blind or handicap 7.) Gender of head of household Such records will also include: - Copies of advertisements placed in the local newspapers. - Owner’s involvement with the local public housing authority. 4. Assessment of Effort. The advertising and marketing programs owners and managers of affected dwelling units will be monitored to ensure: 1) compliance with the information standard, 2) cooperation with the Housing Authority in outreach programs, and 3) accuracy of record-keeping regarding new occupancies of vacant units. In situations where the owners or managers fail to keep a reasonable standard of compliance with the system, those responsible will be informed of the deficiencies and offered the opportunity to correct problems. City staff will discuss way to improve owners’ efforts prior to taking corrective actions. If owners continue to fail to meet the affirmative marketing requirements, the City of Charleston, after fair warning and an opportunity to correct identified 5
deficiencies, may disqualify an owner from further participation in future HOME programs administered by the City. 6
Prohibited Provisions in Tenant Leases The lease between the owner and tenant in a HOME-assisted property cannot contain any of the following provisions: Agreement to be sued. Agreement by the tenant to be sued, admit guilt, or consent to a judgment in favor of the owner in a lawsuit brought in connection with the lease. Agreement regarding treatment of property. Agreement by the tenant that the owner may take, hold, or sell personal property of household members without notice to tenant and a court decision on the rights of the parties. This prohibition does not apply to an agreement by the tenant concerning disposition of personal property remaining in the unit after the tenant has moved out. The owner may dispose of personal property in accordance with state law. Agreement excusing the owner from responsibility. Agreement by the tenant not to hold the owner or the owner’s agents legally responsible for actions or failure to act, whether intentional or negligent. Waiver of notice. Agreement by the tenant that the owner may institute a lawsuit without notice to the tenant. Waiver of legal proceedings. Agreement by the tenant that the owner may evict the tenant or household members without instituting a civil court proceeding in which the tenant has the opportunity to present a defense or before a court decision on the rights of the parties. Waiver of a jury trial. Agreement by the tenant to waive any right to a jury trial. Waiver of right to appeal a court decision. Agreement by the tenant to waive the tenant’s right to appeal or otherwise challenge in court a decision in connection with the lease. Agreement to pay legal costs, regardless of outcome. Agreement by the tenant to pay attorney fees or other legal costs even if the tenant wins the court proceeding by the owner against the tenant. The tenant, however, may be obligated to pay costs if the tenant loses. 7
City of Charleston Tenant Information Form Owner’s name: _______________________________ Owner’s address _____________________________ ______________________________ ______________________________ Project name: _______________________________ Project address: ______________________________ ______________________________ # HOME/CDBG-assisted units: ______________________ ______________________________ CERTICATION Signature of owner or property manager: I/We understand that it is the borrower’s responsibility to annually verify the incomes of the occupants of each “HOME-assisted” unit and to certify that the “HOME-assisted” units’ _______________________________________________ tenants’ incomes are in compliance with HUD regulations. I/We certify that I/we have Date: 8
Source of rental Amount of assistance Tenant- Monthly Is head of Name of # bdrms Is Total Monthly rental (for example, paid family household Race of # of Single- Female- Elderly head of in unit monthly utilities assistance Section 8 net rent income Hispanic/ head of people in parent headed head of Unit # household unit occupied? rent ($) ($) ($) or none) ($) ($) Latino? household household household? household? household? verified the incomes of all tenants occupying HOME/CDBG-assisted units and certify that their incomes do not exceed sixty percent (60%) of the area median income. _______________________________________________ 9
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