Individual Development Accounts Program by bdj33111

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									 Neighborhood Revitalization
            for
         Non-Profits




          NC Department of Commerce
        Division of Community Assistance
Mailing Address: 4313 Mail Service Center, Raleigh, NC 27699-4313
Street Address: 1307 Glenwood Avenue, Ste. 250, Raleigh, NC 27605


                     Phone: (919) 733-2850
                      Fax: (919) 733-5262
                    www.nccommerce.com\nsp
              Neighborhood Revitalization for Non-Profits Application

Table of Contents
 INTRODUCTION ................................................................................................................................. 3
 PROGRAM SUMMARY ...................................................................................................................... 3
 LETTERS OF INTENT .......................................................................................................................... 3
 MINIMUM AND MAXIMUM GRANT AMOUNTS ............................................................................. 3
 COSTS ASSOCIATED WITH PREPARING THE APPLICATION ............................................................ 3
 CITIZEN PARTICIPATION AND PUBLIC HEARING REQUIREMENT................................................... 3
 SELECTION PROCESS, PURPOSE, AND PARTNERSHIPS ................................................................... 4
 NON-PROFIT ELIGIBILITY REQUIREMENTS ...................................................................................... 4
 NSP APPLICATION INSTRUCTIONS ................................................................................................... 5
 BEFORE YOU START .......................................................................................................................... 5
 PROGRAM UPDATES ......................................................................................................................... 5
 APPLICATION WORKSHOP................................................................................................................ 5
 PROGRAM CONTACTS ...................................................................................................................... 5
 APPLICATION DEADLINE ................................................................................................................... 5
 NSP APPLICATION SUBMISSION CHECKLIST .................................................................................... 6
 REVIEW OF SELECTION CRITERIA ..................................................................................................... 7
 I. Neighborhood Revitalization Program Application Summary for Non-Profits ....................... 9
 II. PROJECT SUMMARY NARRATIVE .............................................................................................10
 III. IDENTIFICATION OF BENEFICIARIES ........................................................................................11
 OVERVIEW OF ELIGIBLE ACTIVITIES ...............................................................................................12
 o Purchase Discounts ....................................................................................................................12
 o Housing Counseling ....................................................................................................................12
 o Federal Housing Administration (FHA) Foreclosed Properties................................................12
 SELECTION OF ELIGIBLE ACTIVITIES ...............................................................................................13
 IV. IDENTIFICATION AND SEVERITY OF GREATEST NEED ...........................................................14
 V. STRATEGY TO ADDRESS GREATEST NEED ...............................................................................15
 VI. CAPACITY OF APPLICANT AND PROGRAM ADMINISTRATORS .............................................16
 Organizational Capacity Narrative.................................................................................................17
     IMPLEMENTATION .....................................................................................................................18
 VII. MITIGATION OF FRAUD, WASTE AND ABUSE PLAN ...............................................................19
 VIII. GREEN BUILDING .....................................................................................................................19
 IX. SOCIO-ECONOMIC FACTORS ....................................................................................................19
 X. PROJECT BUDGET .....................................................................................................................20
 XI. Activities Implementation Schedule .......................................................................................21
 ATTACHMENTS................................................................................................................................22
     A. Federal Certification
     B. Disclosure Report.
     C. State Certification
     D. Disclosure of Civil Rights Complaints/Lawsuits
     E. Certification Regarding Debarrment, Suspension, and Other Responsibility Matters
     F. Fraud, Waste, and Abuse Certification Form
     G. Certification of Review of Laws, Rules, Regulations, and NSP Guidelines



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        NSP Neighborhood Revitalization for Non-Profits Application

                                     INTRODUCTION

PROGRAM SUMMARY
While most of the general information is in the Neighborhood Stabilization Program (NSP) Guidelines,
this document provides information specifically for the Neighborhood Revitalization Program for Non-
Profits category. Eligible applicants for this category are housing non-profits, community development
corporations, public housing authorities, public housing finance agencies, councils of governments and
community development finance institutions. Selected sub-recipients must use at least 30% of funds to
assist households whose incomes do not exceed 50% of the applicable area median income. The
remaining 70% of grant funds can be used to assist households up to 120% of the applicable area
median income requirement.

 Sub-recipients must provide services in the 23 counties listed in the program guidelines. These counties
were identified by the number of foreclosure starts from January 2007 to June 2008, a needs score
analysis by the Local Initiative Support Corporation, and HUD’s risk scores. Once the applications are
received prior to 5:00 p.m. on February 3, 2009, the criteria used to identify the 23 counties will be
updated to use in the review of these applications. While this is a non-competitive process, the
selection criteria will assist the Division of Community Assistance (DCA) in selecting non-profits best able
to serve the areas with the highest needs and highest risk.

LETTERS OF INTENT
A number of non-profits and non-state agencies previously submitted Letters of Intent; however, this
was not a pre-requisite. Non-profits and non-state agencies that did not submit Letters of Intent may
also apply for NSP funds.

MINIMUM AND MAXIMUM GRANT AMOUNTS
Non-profits may request $2 million. Non-profits may also request an additional amount up to 5 percent
of the requested amount for administration costs. For example, a non-profit requesting $2 million for
program activities may ask up to $100,000 for administration. Each application must incorporate a
financial design for the affordability period that replicates the Home Investment Partnership Program
(HOME) model.

COSTS ASSOCIATED WITH PREPARING THE APPLICATION
Applicant may include a maximum of $10,000 in the planning line item of the budget to help defray the
cost of preparing the NSP application provided that procurement procedures consistent with 24 CFR
85.36 are followed and the application is funded by DCA.

CITIZEN PARTICIPATION AND PUBLIC HEARING REQUIREMENT
Applicants should also involve community residents and stakeholders in the application development
process and planning process to ensure community input into the project design. Applicants must
certify in the application that they are following a detailed citizen participation plan which encourages
citizen participation at all stages of the project, from initial design and application to implementation
and closeout. At least one public hearing to obtain citizens’ comments prior to application
submission. DCA will assume responsibility for this requirement and place additional guidance on the
website located at www.nccommerce.com\nsp.




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SELECTION PROCESS, PURPOSE, AND PARTNERSHIPS
The Division of Community Assistance (DCA) will provide NSP funds to Non-profits organizations to
promote neighborhood stabilization where foreclosure, subprime lending, and housing vacancies have
negatively affected the housing market. Our ultimate goal is to build a high-performing, inter-linked
network of community-based partnerships offering NSP funds to help sure up communities.

In the event that more organizations apply to participate in the program than will be able to be selected
as full participants, DCA suggests forming collaborative partnerships to successfully address as many
needs as possible. The most successful projects will establish partnerships with financial institutions,
community groups, and other agencies for funding and administration. Besides general administration
and management of the program, the following roles will need to be identified at the time of
application:
  1. Provider(s) of Housing Services
  2. Financial Institution/Account Holder/Potential Lender(s) and
  3. Partners for Marketing and Promotion of NSP Program.

DCA will only review NSP Applications physically received by us prior to 5:00 p.m. on February 2, 2009.
The selection criteria outlined in the program guidelines will be used. Only applications that meet the
threshold requirements will receive further review for final selection.

NON-PROFIT ELIGIBILITY REQUIREMENTS
In order to be considered for funding under the Neighborhood Revitalization Program for Non-profits,
each applicant must meet minimum eligibility requirements, which measure an applicant's capacity to
adequately administer a NSP program.

A non-profit must have already been designated a 501(c)(3) organization by the IRS for federal tax
purposes and have the characteristics of an eligible community based development organization (CBDO)
in order to participate in the NSP Program as a sub-recipient. An eligible organization must have the
following characteristics:
 Be a non-profit association or corporation organized under State or local law to engage in
     community development activities within an identified geographic area of operation including the
     jurisdiction of the recipient in addition to having the 501(c)(3).

   Have as its primary purpose the improvement of the physical, economic or social environment of its
    geographic area with particular attention to the needs of persons of low and moderate income.

   Maintain at least 51% of its governing body’s membership for low and moderate-income residents
    of its geographic area of operation or representatives of low and moderate-income organizations
    located in its geographic area of operation.

   Require members of its governing body to be nominated and approved by the general membership
    of the organization, or by its permanent governing body.

   Also note that a Community Housing Development Organization (CHDO); an entity organized under
    the Small Business Investment Act (non-profit only); and a Small Business Administration approved
    Section 501 State Development Company or Section 502 Local Development Company or Section
    503 Company (all non-profit only) will also qualify as a CBDO.

   Non-profit must have been in existence for at least 5 years and have a reliable income stream that
    provides sufficient operational funds.




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                                   NSP APPLICATION INSTRUCTIONS

BEFORE YOU START
Read all NSP-related documents. As part of the application submission requirements, applicants must
certify that they have read all the documents below. Each of the documents is critical to understanding
the Neighborhood Stabilization Program (NSP), completing the application correctly, and implementing
the NSP efficiently and effectively in the 48 months DCA has to obligate and expend program funds.
Sign the form to certify you have read each document. Include the signed form in TAB A.
     Title III of the Housing Economic Recovery Act of 2008 (HERA)
     Neighborhood Stabilization Program Notice; Federal Register Notice of Allocations, Application
         Procedures, Regulatory Waivers Granted to and Alternative Requirements for Redevelopment of
         Abandoned and Foreclosed Homes Grantees Under the Housing and Economic Recovery Act,
         2008 Vol. 73, No. 194 10-6-2008
     4 NCAC 19L
     Subchapter 03M-Uniform Administration of State Grants (Non-profits Only)
     Uniform Relocation Act

PROGRAM UPDATES
Keep abreast of program changes. The U.S. Department of Housing and Urban Development
(HUD) is continually providing guidance on this fast-paced program. More important, HUD is
not likely to approve the State’s Action Plan until mid-February 2009. As a result, DCA may
need to adjust and modify the program design and/or submission requirements. All updates
will appear on the N. C. Department of Commerce’s website at www.nccommerce.com\nsp .

APPLICATION WORKSHOP
Attend the workshop. An application workshop will be conducted in Raleigh, NC by DCA in mid January
2009. The date, time, and location will be announced at www.nccommerce.com\nsp. Applicants are
strongly encouraged to attend to stay abreast of the most recent program changes.

PROGRAM CONTACTS
Stay in contact with DCA for help with any question or issues that arise before the application is due.
The NSP program contacts are available by phone at (919) 733-2850 or by fax at (919) 733-5262 as
follows:

Purpose                                             Contact
Policy and General Information                      Robert Reives and Vickie L. Miller
Rehabilitation Information                          Jim Liles
Environmental and Compliance Information            Brande Roberts

APPLICATION DEADLINE
Submit application on time. Applications that are submitted in person or by overnight delivery must
physically be received by DCA prior to 5:00 p.m. on February 3, 2009.

If using the U.S. Postal Service, mail to:         If using overnight or in-person delivery, deliver to:
Ms. Gloria Nance-Sims, Director                    Division of Community Assistance
Division of Community Assistance                   Methodist Building
4313 Mail Service Center                           1307 Glenwood Avenue, Suite 250
Raleigh, NC 27699-4313                             Raleigh, NC 27605


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                     NSP APPLICATION SUBMISSION CHECKLIST
The best method for submitting the NSP application is to use a three-ring binder, index it with, and then
fill it with the items listed below under each tab. All applications are expected to be typed. In some
instances applicants must complete a DCA form. In other instances, the responses are in free-form and
the applicant is to produce typed responses not to exceed the limits noted in the question. Two
complete copies that have original signatures of the chief elected official are required.

TAB A COMPLETED APPLICATION FORMS AND NARRATIVES
        Submission Certification Form Signed by Chief Elected Official or Chief Officer

TAB B IDENTIFICATION OF AND SEVERITY OF GREATEST NEED DOCUMENTATION
         Map of Target Area(s)
         Photographs
         Supporting Documentation to Support Data
         Map(s) of Sub-Prime Loan Areas (Present and Near Future)
         Inventory List of Foreclosed Properties or Explanation if not Available

TAB C TREATMENT OF NEED DOCUMENTATION
         List of Potential Homeowners or Market Study to Support the Activity
         List of Potential Properties or Market Analysis
         Copy of an Agreement/Memorandum of Understanding with Lender

TAB D CAPACITY OF APPLICANT AND PROGRAM ADMINISTRATORS
         Copy of an Agreement/Memorandum of Understanding with Partners
            Copy of the IRS 501(c)(3) designation of your organization as a non-profit
            Copy of organization’s articles of incorporation
            Copy of organization’s charter or by-laws
            Most recent three years’ audited financial statements (e.g., balance sheet, income
            statement, statement of cash flows, etc.)

TAB E MITIGATION OF FRAUD, WASTE, AND ABUSE
          Signed Fraud, Waste, and Abuse Certification




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                      REVIEW OF SELECTION CRITERIA
In addition to the items listed on the Application Submission Checklist, applicants are encouraged to
review proposals to ensure the following components are included.

1) Threshold Requirements
        Completeness
        Signed by the Executive Director with a resolution giving board approval
        Applicant eligible to receive NSP funds
        Activities are eligible
        Request at least $2 million
        Beneficiaries at or below 120 percent of area median income (AMI) with at least 30
          percent of funds targeting beneficiaries at or below 50 percent (AMI)
        Applicant has received or partnered in a previous CDBG project

2) Organizational Capacity
        Partnerships are well developed
        Staffing and budget are adequate
        NSP complements the organization’s mission
        Documented success and proven track record in homeownership assistance
        Project management strategy is developed and relies on existing expertise
        Housing Services component is satisfactory
        Innovative and unique features

3) Goals and Objectives
        Thorough and inclusive planning process involving community members
        Commitment to project completion within the prescribed DCA timeframe
        Comprehensive in services and support
        Community impact is demonstrated and tangible

4) Project Feasibility/Readiness
        Demonstrated need and market (customer base)
        If Using Other funds, Readiness of Sources
        Comprehensive implementation plan
        Relationship with a financial institution to provide responsible loan products

Applications will be evaluated on a 100-point system using the following criteria:

Severity of Need (50 Points): The State will give priority to those proposals that can
demonstrate a strong connection to neighborhood stabilization activities. The State will draw a
distinction in awarding priority points to give greater points to those applicants that can
connect their NSP-funded activities to housing foreclosure, subprime and abandonment
problems emblematic of the housing crisis.




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Treatment of Need (20 Points): The State will give priority to those proposals that can
demonstrate a strong connection between the need as identified and to the proposed activities
needed to stabilize neighborhoods.

Capacity of Applicant and Program Administrators (20 Points): As listed above the State will
give priority to eligible applicants that exhibit strong capacity to administer NSP in the following
ways:
   o Knowledge, implementation, and compliance of activities funded through the CDBG
      Program. DCA will also assess any significant monitoring findings or program weaknesses
      that are not addressed, as well as performance on State or other contract closeout
      requirements.
   o Experience administering and delivering the specific activities for which the NSP funds
      would be used. If significant administrative responsibilities will be assigned to another
      entity through a subcontract, the experience of that entity will be considered as well.

Mitigation of Fraud, Waste and Abuse of NSP Funds (5 Points): NSP funds have been
identified as high risk by the U.S. Office of Inspector General. Priority will be given to proposals
that identify strategies, policies and practices that substantially minimize the possibility of
misuse of NSP funds.

Green Building (1 Point): DCA will give priority to proposals that utilize Green Building
components and techniques. The highest priority will be given to those proposals that assure
construction activities will meet a national standard for Green Building, such as Leadership in
Energy and Environmental Design (LEED) or National Association of Home Builders (NAHB)
Green Building Program. Proposals that demonstrate use of energy-efficient design and
materials will also be given priority.

Socio-Economic Factors (4 Points): DCA will give priority to proposals that identify other
factors that impact neighborhood stabilization such as unemployment rates, and crime rates.




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         I. Neighborhood Revitalization Program Application Summary for Non-
                                        Profits
1. Applicant’s name                                                                        2. Date
   a. Mailing Address
   b. City and Zip Code                                                                    _______ Original,
   c. County                                                                               dated:
   d. Contact Person
   e. Telephone Number                                                                     _______Amendment,
   f. Fax Number                                                                           dated:
   g. e-mail address
3. Preparer’s Name                                                                         c. Telephone Number
   a. Firm’s Name
   b. Mailing Address
   c. City and Zip Code                                                                    f. Fax Number
   d. e-mail address
4. Program          5. Project                       6. Project Name                       7. NSP Funds
   Category            Number                                                                 Requested

        N                 1                                                                $

Administration
 (Max. 5% of Request)
                                                                                           $
                                                                                 Total     $
10. Certification by the Executive Director
   (a) I certify that to the best of my knowledge and belief:
            (1) Data in this application is true and correct,
            (2) Opportunities have been provided for citizen participation and access to
                 information concerning the proposed activities,
             (3) This document has been duly authorized by the governing body of the
                  applicant and the applicant will comply with the attached certifications and state
                  standards if the assistance is approved.
   (b) I acknowledge that, if funded, this application is part of the Grant Agreement.
   (c) Typed Name of Executive
      Director                 
   (d) Typed Title
                               
   (e) Signature
                               
   (f) Typed Date
                               
For DCA Use Only Date Received:                                                   Application Number:




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II. PROJECT SUMMARY NARRATIVE
Describe your project in the space below and no more than one additional page. The description
should be presented in a clear, concise manner. State the project goal and objectives; identify the
area(s) of greatest needs, treatment strategy, and overview of project team experience.




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   III. IDENTIFICATION OF BENEFICIARIES
   Selected sub-recipients must use at least 30% of funds to assist households whose incomes do not
   exceed 50% of the applicable area median income. The remaining 70% of grant funds can be used
   to assist households up to 120% of the applicable area median income requirement.

   A. 50 Percent of AMI Plan
      a. What percentage of the units and/or jobs made available will serve households at or below
         50% of the area median income?

       b. Describe how you will meet the program requirement that at least 25% of funds must be
          used to purchase and redevelop abandoned or foreclosed upon homes or residential
          properties for housing individuals and families whose incomes do not exceed 50% of area
          median income.

   B. 120 Percent of AMI Plan
      a. What percentage of the units and/or jobs made available will serve households that do not
         exceed 120 percent of AMI?

       b. Describe how you will meet the program requirement that at least 25% of funds must be
          used to purchase and redevelop abandoned or foreclosed upon homes or residential
          properties for housing individuals and families whose incomes do not exceed 50% of area
          median income.

       c. Link to Target Area: What is the current composition of the target area? How will the
          proposed income targeting impact the target area? Address potential gentrification,
          displacement issues.


                              Benefit Levels of Target Population

The national objective for the Neighborhood Stabilization Program (NSP) is benefit to low-
moderate- and middle-income (LMMI) individuals and families.
Indicate below the estimated number of houses and/or residential properties expected to serve the
income levels listed below:
< 30%                  _____
< 50%                  _____
< 80%                  _____
< 120%                 _____




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OVERVIEW OF ELIGIBLE ACTIVITIES
The State will make NSP funds available for the following statutorily eligible activities. NSP funds are
eligible to:

       Establish financing mechanisms for purchase and redevelopment of foreclosed upon homes
        and residential properties, including such mechanisms as soft-seconds, loan loss reserves, and
        shared-equity loans for low- and moderate-income homebuyers;

       Purchase and rehabilitate homes and residential properties that have been abandoned or
        foreclosed upon, in order to sell, rent, or redevelop such homes and properties;
        o Purchase Discounts are required for NSP. Each foreclosed-upon home or residential
            property shall be purchased at a discount of at least 15 percent from the current market-
            appraised value of the home or property.

        o   Housing Counseling is required by a HUD approved housing counseling agency for all
            purchasers of acquired or rehabilitated homes. A minimum of eight hours of counseling is
            required for each potential homebuyer of NSP properties. Program funds can be used for
            this activity. Housing counseling includes meeting with each participant so that the
            participant most fully understands the rights and responsibilities of homeownership and to
            help ensure that the home being purchased meets affordability principles. Additionally,
            sessions must include, but are not limited to, the home buying process, understanding
            interest rates and mortgages, insurance, taxes, and basic home maintenance.

        o   Federal Housing Administration (FHA) Foreclosed Properties are eligible for NSP acquisition
            and redevelopment. HUD and DCA encourage applicants to include FHA properties because
            the characteristics are compatible with the NSP eligible uses, areas of greatest needs, and
            income eligibility requirements.

       Demolish blighted structures in areas targeted for stabilization. Any demolished structure
        must be replaced by a residential or mixed-use structure that either provides housing and/or
        jobs for LMMI individuals or households;

       Redevelop demolished or vacant properties. This may result in the construction of mixed-use
        development and/or the creation of jobs. Of the jobs created through NSP, at least 70% must
        be for LMMI persons. A plan for the reuse of land must be submitted and approved by DCA; and

       Establish land banks for homes that have been foreclosed upon. Prior review with DCA is
        required for this activity.




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SELECTION OF ELIGIBLE ACTIVITIES
Place a check in the box for all planned activities for this grant proposal.

    Financing Mechanisms of Foreclosed Homes (Range of Interest Rates)
           Loan Guarantee
           Soft Second
           Interest Write Down
           Down-Payment Assistance (maximum of ___ Percent)
       If the activity provides financing, state the range of interest rates (if any).

   Acquisition, Rehabilitation, and Resale of Foreclosed Homes (Homeownership/Housing
   Counseling Required)
      If the activity includes acquisition of real property, what is the discount required for
      acquisition of foreclosed upon properties?

   Acquisition, Demolition, New Construction and Resale (Homeownership/Housing
   Counseling Required)
      If the activity includes acquisition of real property, what is the discount required for
      acquisition of foreclosed upon properties?

    Acquisition and Clearance

    Acquisition and Clearance for a Public Facility

    Demolition of Blighted Properties
         Plan for Reuse of Land

    Redevelopment Including New Construction of Vacant or Demolished Properties (Housing
   Counseling Required if Properties Are Sold for Homeownership)

   Acquisition and Demolition for Land Banks (NOTE: This activity requires prior
   discussion with and approval by DCA.)

    Infrastructure




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IV. IDENTIFICATION AND SEVERITY OF GREATEST NEED

  This section is designed for the applicant to identify the area(s) and severity of the greatest need.
  The applicant must demonstrate a strong connection to the neighborhood stabilization activities.
  Priority will be given to applicants that connect the identified NSP-funded activities to housing
  foreclosure, subprime and abandonment problems emblematic of the housing crisis.
  A. Area(s) of Greatest Need
      In the space below, list the areas of greatest need by zip code and/or census tract that are to be
      served using the requested NSP funds. Clearly identify the boundaries of the service area(s).
      Also, of the areas identified, note the area with the highest need.

  B. Data to Support Identified Area(s) of Greatest Need
     In the space below, include a listing of the data sources that you used to determine your
     greatest need. Present data by Zip Code/Census Tract/Appropriate level.
     In TAB B, include supporting documentation and a map that identifies the area(s).

  C. Areas with Sub-prime Loans
     Identify the areas where the sub-prime loans and the areas that are potentially at risk for
     additional foreclosures in the near future. Include a listing of the data sources to support your
     position. Include any maps or supporting data in TAB B.

  D. Areas with Foreclosures
     Identify the location of the majority of the foreclosed properties in your area(s). Include a copy
     of the inventory list of these properties in TAB B.

  E.   Target Area of Greatest Need Information

       Discuss how the proposed NSP project is connected to neighborhood stabilization activities and
       how the NSP-funded activities directly address housing foreclosures, subprime and
       abandonment problems in your jurisdiction. Include the following information:
         Areas of highest need and zip code of the neighborhoods.
         Income levels of the neighborhoods with the highest needs:
            a. 50% or less,
            b. 51% to 80%, or
            c. 81% to 120% of AMI
         Briefly give overall description of the neighborhood and identify any causes of
            destabilization other than those caused by the current housing crisis.
         Indicate if your community development department/section is already working to
            improve housing in this neighborhood or neighborhoods and why it is appropriate for NSP
            funding.
         Identify any developers or non-profits working in this same area.




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V. STRATEGY TO ADDRESS GREATEST NEED
In this section, the State will review the treatment of need. Priority will be given to proposals that make
a strong connection between the need as identified in Section III and to the propose activities needed to
stabilize the neighborhoods. Place all supporting documentation for this section in TAB C.

    A. Describe each NSP-funded activity that will address the housing needs in the neighborhood(s)
       identified under IV and the treatment for each. Be sure to identify the project objectives,
       desired outcomes, and the major cost elements that NSP grant funds will finance.
    B. Who are the beneficiaries of the program? How will assisting these beneficiaries will benefit the
       community as a whole?
    C. What did citizens who attended the first public hearing about the project and what feedback did
       you receive about the project from them?
    D. How does the project fit into a comprehensive neighborhood stabilization strategy that builds
       on existing assets and initiatives in the community?
    E. Describe how you will keep the neighborhood/community stabilized after the NSP project has
       completed. Be sure to explain your prevention strategy with pre-foreclosed properties using
       non-NSP funds.
    F. In TAB C, attach a list of potential homeowners
    G. In TAB C, attach a list of potential properties. Explain how the properties relate to the housing
       crisis.
    H. Will the units proposed for treatment be vacant? If not, describe your process and procedures
       to address relocation in the prescribe grant period time. Please keep in mind that all funds must
       be obligated and expended in the 18 month time period after DCA and HUD signs its Grant
       Agreement.
    I. In TAB C, attach a copy of an agreement with your Lender.




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VI. CAPACITY OF APPLICANT AND PROGRAM ADMINISTRATORS

                                    Summary of Non-Profit Information

Type of Non-Profit
Number of Years in Operation
Number of Full-Time Employees
Number of Staff HUD Certified
Housing Counselors

Chairman of Board of Directors
Address

                    Phone Number
                    e-mail address

Executive/Administrative Director
(unless contact person)
Address

                    Phone Number
                    e-mail address

Please attach the information requested below in TAB D following the application forms.

1.   Staff and Board of Directors
      List board members and their occupations.
      List board officers and any related experience to the NSP project activities.
      Note any board or staff member with CDBG and HOME experience.
      How are the board members chosen?
      How many persons are full voting members of the governing body?
      How many full voting members of the governing body are residents of the service area?
        How many full voting members of the governing body are low and moderate-income
        residents?
      How many full voting members of the governing body are representatives of low and
        moderate-income organizations?
      How many full voting members of the governing body are appointed by, or consist of elected or
        other officials or employees of the local government(s) within the organization’s geographic
        area of operation?
      List names and titles of key staff members and titles. (Attach resumes or bios under TAB D.)

2. Other Projects
    List summary of past and current projects over $1million dollars. Include information on the
      funding source(s) for each project. Provide anticipated completion dates for current projects.
    List summary of CDBG and HOME projects of any grant size.
    List summary of other planned projects (not NSP project) scheduled to be undertaken and give
      anticipated start dates.

3.   N. C. Legal Aid Services
     Explain how you are working with N.C. Legal Aid Services.
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4. Organizational Information (Limit each to no more than 2 pages.)
    Describe the organization’s mission.
    Describe the organization’s services.
    Describe the organization’s service area.
    Explain how you work with other service agencies in the community.

5. Attachments to Non-Profit Narratives (Place under TAB D.)
    Attach a copy of the IRS 501(c)(3) designation of your organization as a non-profit
    Attach the organizations articles of incorporation.
    Attach the organization’s charter or by-laws.
    Attach the organization’s most recent 3 Years of audited financial statements.

Organizational Capacity Narrative
1. Sponsoring Organization and Partners

The success of this program depends on securing the active participation of local development
organizations committed to affordable homeownership and the NSP concept, knowledgeable about
their community, with a demonstrated track record of effective program design and implementation.
Moreover, while the sponsoring organization may assume directly the responsibilities for the "program"
aspects of NSP, including outreach to participants, counseling, training, monitoring and enforcement,
any and all of these functions might be entrusted to other organizations. Therefore, a concise
description of your organization and partners is necessary.

Please describe your organization and your commitment to undertaking a NSP program. Also, please
describe other organizations that will be working with you to conduct the program and their
commitment. Please attach any letters of commitment, written agreements, protocols or memoranda
of understanding between the partners. In describing your organization and partners, please address
the following:
     What roles and responsibilities your organization will undertake as lead entity, and the roles and
         responsibilities of your partner organizations (if any). Be specific regarding the areas of
         outreach, economic literacy training, housing and credit counseling, monitoring of accounts, and
         post-purchase assistance.
     Your organization’s area(s) of expertise (especially homeownership and/or other Rehabilitation
         programs), significant accomplishments, and capacity to take on an NSP program.
     Your partners’ area(s) of expertise and their success in these areas.
     How does an NSP program complement your organizations other programs? How will it be
         integrated with other programs offered in your community?
     Who will manage program? What is their experience in doing this type of work? Have they
         agreed to manage the activities for this program?

2. Planning Process

Please describe the planning process you undertook in designing your NSP program. In describing the
planning process, applicants should address at least the following issues:
     Who organized the planning process?
     What has been the procedure for involving other partners (if any)?
     What kind of needs assessment has been conducted (provide pertinent data)?
     How much interest has been generated in an NSP program among the constituency through the
        planning process?
     What other specific measurable outcomes do/did you plan on achieving through the planning
        process?
                                                                                                Page | 17
IMPLEMENTATION
1. Target Groups

The NSP program is designed to provide emergency assistance to state and local governments to acquire
and redevelop foreclosed properties that might otherwise become sources of abandonment and blight
within their communities.

Please describe the customer base you foresee for your NSP program, and be sure to address the
following:
      The number of customers your program will serve.
      The characteristics of these customers. Profile a small cross-section of people typical of your
        customers for this program. Why will these people want to participate in this program?
      Your existing relationship with these customers.
      Any unique implications you think this choice of customer has for the design and
        implementation of your NSP program.
      How customers will be selected.

2. Marketing, Outreach and Communications

Please describe your marketing strategy to your customers and other stakeholders. Include answers to
the following questions:
     How do you plan to reach targeted participants/customers and select them for the program?
     What other plans have you made for outreach and communications surrounding the NSP
         program, including that to internal staff, potential partners, press and other stakeholders?
     What obstacles must be overcome and how will your marketing efforts assist in overcoming
         them?
     How will you address the needs of those who are willing to participate in the NSP program but,
         for whatever reason (credit, lack of sufficient income, etc.), are unable to purchase a home
         within the time?

Orientation, Economic Literacy, Training, Counseling, and Evaluation
Additionally, since one of the focuses of this NSP program is on homeownership, with participants
expected to be first-time homebuyers, thorough counseling on preparing to purchase a home,
negotiating the purchase process and becoming an actual homeowner is critical.

Describe the training, counseling and technical assistance program for the participants in your NSP
program. Include descriptions of both content and process.
    How will you introduce/orient participants to the NSP program?
    Who will deliver the training (include the name of the institution/organization/agency and the
       name and experience of the person who will be teaching the curriculum)? How frequently will
       training occur? Where will the training take place? Have written materials been developed for
       use? (If there are written materials, please submit a copy with your application.)
    How will you monitor to ensure that participants receive the full counseling/ training program?
    How will you ensure or assess that participants have fully grasped the content of your
       training/counseling program?

   In addition, your NSP program will be required to provide credit and housing counseling to all
   participants. Please provide the names of the organizations and personnel that will provide this
   counseling, along with certification documentation and letters of commitment.

                                                                                              Page | 18
VII. MITIGATION OF FRAUD, WASTE AND ABUSE PLAN

The risk for fraud, waste and abuse of NSP funds is considered by the federal government to be
much higher than the risk generally associated with the CDBG Program. Priority will be given
to proposals that identify strategies, policies and practices that substantially minimize the
possibility of misuse of NSP funds.

Identify strategies, policies and practices that substantially minimize the possibility of misuse of NSP
funds. Do additional measures need to be taken? If so, describe these. Have they been implemented
or put in place? Sign the Fraud, Waste, and Abuse Certification and include in TAB E.

VIII. GREEN BUILDING
Describe strategy to incorporate green building into the NSP activities proposed for the project.

IX. SOCIO-ECONOMIC FACTORS
Priority will be given to proposals that identify socio-economic and other factors that impact
neighborhood stabilization such as unemployment rates, de-concentration of low-wealth families, and
crime rates.
There may have been social and economic factors in your jurisdiction that may have had an impact on
the destabilization of neighborhoods. Supply the following information:
   1. Unemployment rate for 2007 and 2008.

   2. The effect of the housing crisis and job loss on the local crime rate, if any. If so, in what way?

   3. Impact of business and Industry
           a. List of businesses/industries closing in 2007 and 2008 and number of jobs lost for
              each.
           b. List of businesses/industries laying off workers in 2007 and 2008 and number of
              jobs lost for each.
           c. List of businesses/industries filing for bankruptcies in 2007 and 2008 and include
              any layoffs if business/industries not listed above and give number of jobs lost for
              each.




                                                                                                    Page | 19
                   X. PROJECT BUDGET                                               Name of Applicant:

                   Neighborhood Stabilization Program
1.              2. 1. NSP Grant Amount                                                       $
                   2. Other Funds
                   3 Total Project Resources                                                 $
     4. Activity                                        5. NSP   NSP Service   8. Other      9. Total Project
                                                        Costs    Delivery      costs         Cost
                                                                 Cost
a. a. Establishment of Finance Mechanism for
   purchase and redevelopment
   b. Construction, Rehabilitation and preservation
      activities
      (1) Construction or rehabilitation of
          commercial & industrial buildings
      (2) Rehabilitation of privately owned
       dwellings
       (3) Construction of Single Family Dwellings
          (4) Construction of Multi-Family Dwellings
          (5) Public Infrastructure
     c. Purchase and rehabilitate homes and
        residential properties
        (1) Purchase Discounts
          (2) Housing Counseling
     d. Demolish blighted structures
     e. Redevelop demolished or vacant properties
     f. Establish lank banks
     g. Removal of architectural barriers
     h. Other activities
     i.
     j.   SUBTOTAL
     k.   Planning
     l.   Administration
     m. Total




                                                                                              Page | 20
XI. Activities Implementation Schedule                             Name of Applicant:




Month 1 begins as of the date of DCA Director’s signature on the Grant Agreement and
Funding Approval.

List activities to be implemented and put an “X” in the columns for the beginning and ending
months and connect with a straight line. Activities should correspond to those on the
Budget.

            Activities       1   2   3    4   5   6    7   8   9   10   11   12   13   14   15
1. Grant Agreement/
         Funding Approval
2. Environmental Review

3. Clearing conditions

4.

5.

6.

7.

8. Closeout of Grant




                                                                                        Page | 21
ATTACHMENTS




              Page | 22
                   A. Federal Requirements for Local Governments

                                             A. Certifications

The applicant hereby assures and certifies that:

    a. It will comply with all applicable federal and state laws, regulations, rules and Executive Orders.

    b. It possesses legal authority to apply for Neighborhood Stabilization Program (NSP) funds, and to
       execute the proposed program in accordance with applicable HUD regulations and other
       program requirements.

    c. Its governing body has duly adopted or passed as an official act a resolution, motion or similar
       action authorizing the filing of the application, including all understandings and assurances
       contained therein, and directing and authorizing the identified as the official representative of
       the applicant to act in connection with the application and to provide such additional
       information as may be required.

    d. It is following a detailed, written citizen participation plan which will provide opportunities for
       citizen participation, hearings, and access to information with respect to its Neighborhood
       Stabilization Program that satisfies the requirements of Sections 24 CFR 91.105 or 91.115, as
       modified by NSP requirements.

    e. Its chief elected official or other officer of the applicant if assistance is approved by Commerce:

         1) Consents to assume the status of the “responsible Federal Official” as that term is used in
            Section 102 of the National Environmental Policy Act (NEPA), Section 104(f) of Title 1 of the
            Housing and Community Development Act of 1974, as amended, and other provisions of
            Federal law, as specified in 24 CFR 58.5 which further the purposes of NEPA.

         2) Is authorized and consents on behalf of the applicant and himself to accept the jurisdiction
            of the Federal courts for the purpose of enforcement of his responsibilities as such an
            official.

         3) Consents to review and comment on all Environmental Impact Statements prepared for
            Federal projects which may have an impact on the applicant’s/recipient’s Neighborhood
            Stabilization Program.

         4) Consents to perform all coordination functions required under 24 CFR Part 58 and 40 CFR
            Parts 1500-1508.

    f.   It will affirmatively further fair housing, which means that it will conduct an analysis to identify
         impediments to fair housing choice within the jurisdiction, take appropriate actions to overcome
         the effects of any impediments identified through that analysis, and maintain records reflecting
         the analysis and actions in this regard.


    g. It will conduct and administer NSP funds in conformity with Title VI of the Civil Rights Act of
       1964 42 U.S.C. 2000d), the Fair Housing Act (42 U.S.C. 3601-3619), and implementing
       regulations.
                                                                                                    Page | 23
h. It will establish safeguards to prohibit employees from using positions for a purpose that is or
   gives the appearance of being motivated by a desire for private gain for themselves or others,
   particularly those with whom they have family, business, or other ties.

i.   It will comply with the acquisition and relocation requirements of the Uniform Relocation
     Assistance and Real Property Acquisition Policies Act of 1970, as amended (42 U.S.C. 4601), and
     implementing regulations at 49 CFR part 24, except as those provisions are modified by the
     Notice for the NSP program published by HUD.

j.   It will not attempt to recover any capital costs of public improvements assisted with NSP funds
     by assessing any amount against properties owned and occupied by persons of low- and
     moderate-and middle-income, including any fee charged or assessment made as a condition of
     obtaining access to such public improvements. However, if NSP funds are used to pay the
     proportion of a fee or assessment attributable to the capital costs of public improvements
     (assisted in part with NSP funds) financed from other revenue sources, an assessment or charge
     may be made against the property with respect to the public improvements financed by a
     source other than NSP or CDBG funds. In addition, with respect to properties owned and
     occupied by moderate-income (but not low-income) families, an assessment or charge may be
     made against the property with respect to the public improvements financed by a source other
     than NSP or CDBG funds if the jurisdiction certifies that it lacks NSP or CDBG funds to cover the
     assessment.

k. Its notification, inspection, testing and abatement procedures concerning lead-based paint will
   comply with 24 CFR Part 35, subparts A, B, J, K, and R of this title.

l.   When issuing statements, press releases, request for proposals, bid solicitation and other
     documents describing the above-mentioned program such as the environmental review, public
     hearings, fair housing notices, etc., it shall clearly state the:
     1) percentage of the total cost of the project which will be finance with NSP money, and
     2) dollar amount of NSP funds for the project.

m. It will comply with the following anti-lobbying provisions per 24 CFR Part 87:

     1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the
        undersigned, to any person for influencing or attempting to influence an officer or employee
        of any agency, a 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 contract, grant, loan, or cooperative agreement.

     2) If any funds other than Federal appropriated funds have been paid or will be paid to any
        person for influencing or attempting to influence an officer or employee of Congress, or an
        employee of a Member of Congress in connection with this Federal contract, grant, loan, or
        cooperative agreement, the undersigned shall complete and submit Standard Form-LLL,
        Disclosure Form to Report Lobbying,” in accordance with its instructions.

     3) The undersigned shall require that the language of this certification be included in the
        award documents for all sub-awards at all tiers (including subcontracts, sub-grants, and


                                                                                              Page | 24
            contracts under grant, loans, and cooperative agreements) and that all sub-recipients shall
            certify and disclose accordingly.

   n. It has adopted and is enforcing: (1) a policy prohibiting the use of excessive force by law
      enforcement agencies within its jurisdiction against any individuals engaged in nonviolent civil
      rights demonstrations; and (2) a policy of enforcing applicable state and local laws against
      physically barring entrance to or exit from a facility or location which is the subject of such
      nonviolent civil rights demonstration within its jurisdiction in accordance with Section 519 of
      Public Law 101-144, (the 1990 HUD Appropriations Act).

   o. It will determine whether all foreclosed or abandoned houses are either not in a floodplain, or if
      any such houses are in the floodplain, that it participates in the flood insurance program. All
      properties assisted in the project will be covered for flood insurance prior to beginning
      rehabilitation or beginning construction, and all public facilities will be rehabilitated or
      constructed to comply with applicable floodplain regulations.

   p. It will ensure that all housing activities to be undertaken with NSP funds are consistent with the
      State of North Carolina’s consolidated plan, which means that NSP funds will be used to meet
      the congressionally identified needs of abandoned and foreclosed homes in the targeted area
      set forth in the State of North Carolina’s substantial amendment.

   q. It will comply with Section 3 of the Housing and Urban Development Act of 1998 (12 U.S.C.
      1701u) and implementing regulations at 24 CFR part 135.

   r.   It will comply with the requirement that all of the NSP funds awarded under Title III of Division B
        of the Housing and Economic Recovery Act (HERA) of 2008 will be used, as defined in the NSP
        Notice, within the 18 months of the State of North Carolina’s receipt of the NSP grant. See State
        Certification.

   s. It will comply with the requirement that all of the NSP funds awarded will be used with respect
      to individuals and families whose incomes do not exceed 120 percent of area median income.

   t.   It will give Commerce, HUD and the Comptroller General through any authorized representative
        access to and the right to examine all records, books, papers or documents related to the grant.

CERTIFICATION OF ABILITY

The County/City of ____________________ hereby certifies its ability to meet Federal Performance and
Procurement Requirements with Certification as further expanded in the preceding attachments.



SIGNATURE OF CEO



TITLE



DATE


                                                                                                   Page | 25
                                      B. Disclosure Report

                                            INSTRUCTIONS

Who Should Complete the Report?

        All applicants who expect to receive an aggregate amount of covered federal assistance for a
project or activity that exceeds $200,000 are required to make certain disclosures. State CDBG and NSP
funds are covered by the requirement, as are most other programs where funds are administered by or
passed through the U.S. Department of Housing and Urban Development. Therefore, all applicants for
more than $200,000 in N.C. NSP funds, including anticipated program income, should complete the
report. In addition, any applicants to a State grantee for a sub-grant should complete the report if more
than $200,000 in covered assistance is or can reasonably be anticipated. The requirement addresses the
aggregate amount of assistance. Therefore, if the applicant anticipates less than $200,000 in NSP
assistance, but intends to combine the funds with enough other covered assistance (such as Section 8
project-based Housing Assistance Payments) to exceed $200,000 in total assistance, the applicant must
make the disclosures. Any applicant/recipient who is required to complete a disclosure report for
another agency in conjunction with a project assisted with State NSP funds may submit a copy of that
disclosure report to the Department of Commerce rather than completing a separate report.

         Recipients who have previously filed disclosure reports must file update reports if the
information in the original report changes either because of later developments subject to disclosure, or
because of changes in the amount of government assistance, the sources of funds, or the uses of funds
equal to the lower of $250,000 or 10 percent of the applicable base (usually total project costs), or
because of an increase in the financial interest of a person equal to the lower of $50,000 or 10 percent
of such interest.

Detailed Instructions:

1. Enter the name, address, and telephone number, including area code, of the applicant or recipient.

2. Indicate whether the report is an initial report or an update report.

3. Enter the Social Security Number or the Employer Identification Number of the applicant or
   recipient.

4. Enter the project name and indicate the location as specifically as possible. In the case of update
   reports, give the NSP grant number.

5. Enter the total amount of assistance being requested as stated in the application, including
   anticipated program income. In the case of update reports, enter the total amount of assistance
   provided according to the funding approval and anticipated program income.

6. Indicate whether other government assistance is being provided, or can reasonably be expected to
   be provided, for the project. Other government assistance includes any loan, grant, guarantee,
   insurance payment, rebate, subsidy, credit, tax benefit, or any other form of direct or indirect
   assistance from the Federal government, a State, or a unit of general local government, or any
   agency or instrumentality thereof, that is, or is expected to be made, available with respect to the
   project or activities for which the assistance is being sought.

                                                                                                 Page | 26
    If other government assistance is provided, or expected to be provided for the project, all such
    assistance must be disclosed on attachments incorporated into the report. The disclosures should
    list the granting agency, the program and type of assistance (e.g., grant, loan, guarantee), and the
    amount expected to be made available. Disclosures need only be made once, so that if this
    information is given in the Sources and Uses attachments, this may be indicated by checking the
    appropriate blank under “6. Other Government Assistance” on the Attachments page of the report.

7. Indicate whether there are persons with a reportable financial interest in the project. “Person”
   means an individual, corporation or business, unit of general local government or other
   governmental entity or agency or any other organization or group of people. A reportable financial
   interest is any financial involvement in the project including equity interest, shares in any profit on
   resale or distribution of cash or other assets, or receipt of compensation for goods or services
   provided in connection with the project or activities, which can be expected to exceed the lower of
   $50,000 or 10 percent of the assistance sought. Compensation for performance of a contract
   procured under Federal procurement regulations is not, by itself, a covered financial interest.
   Residency of an individual in housing for which assistance is being sought is not, by itself, considered
   a covered financial interest.

    If there are parties with a reportable financial interest, the name and pecuniary interest of the
    parties must be disclosed in referenced attachments. If the party is an entity such as a unit of
    government or a corporation, the disclosure must include an identification of each officer, director,
    and/or principal stockholder. The pecuniary interest disclosure must include the type of
    participation (such as owner, contractor, and investor) and the amount of the financial interest
    expressed both as a dollar amount and as a percentage of the amount of assistance involved.

8. Reference the statement or statements attached to the report showing the sources and uses of the
   funds available for, or expected to be available for, the project. Disclosure must be made of the
   gross amount of funds from all sources, including governmental and non-governmental sources of
   funds and private capital resulting from tax benefits. For most projects, the financial forms in the
   appropriate guidelines will be adequate to document sources and uses. Please note, however, that
   if the “Other Government Assistance” disclosure section references the Sources and Uses
   Disclosures, then these Disclosures must identify the program and type of assistance.




                                                                                                   Page | 27
                                         Disclosure Report


1.      Applicant/Recipient Name,                         2.      Check one: ____ Initial Report
        Address, and Phone:                                                  ____ Update Report

                                                          3.      Social Security Number or
                                                                  Employer ID Number:
                                                                  _____________________
4.      Project Name and Location:




5.      Total Amount requested/received
        (including anticipated program income): $_________________

6.      Other government assistance. Check one:

        _____ No other government assistance is, or is expected to be, provided for this
                     project;

        _____ All other government assistance provided for this project is listed on the
                      attached page(s).

7.      Interested Parties. Check one:

        _____ No parties have a reportable financial interest in this project. Interested
                      parties include developers, contractors, consultants, individuals, entities
                      including units of government with a financial interest greater than
              $50,000 or 10 percent of the assistance (whichever is lower; being a party
              to a contract procured under Federal procurement regulations at 24 CFR
              Part 85 does not, by itself, constitute a reportable financial interest).

        _____ All parties with a reportable financial interest are listed on the attached
              page(s).

8.       All expected sources of funds available or expected to be available for the project or    activity
and all reportable uses of funds are included in the application for funds and on the      following
form(s) :

        _____ NSP PROJECT BUDGET

        _____ Other attachment(s). Describe: _____________________




                                                                                                    Page | 28
                                             Disclosure Report

                                                Attachments


     6. Other Government Assistance (Attachment)
        (Note: Disclosures must be complete and accurate, but need to be made
        only once for this report. If assistance is reported in the Sources and Uses
        disclosure section, then it need not also be reported here. If there is
        assistance reportable here, but reported only in the Sources and Uses
        disclosure, check here:

                         _____             Assistance is disclosed in Sources and Uses
                                           Attachments



                                           Program and                          Amount
Agency Name and Address                    Type of Assistance              Requested/Received




7.       Interested Parties (attachment)


Name and Address                           Type of Participation           Interest ($ and %)




                                                                                                Page | 29
              C. Regulations for Grantees of the State of N.C.
1.   Citizen Participation
     If funded, grantee local governments will have documentation on file of compliance with citizen
     participation requirements in the application process that satisfies the requirements of Sections
     24 CFR 91.105 or 91.115; (b): publisher’s affidavits of notices for and minutes signed by the
     town or county clerk of one required public hearing.

2.   Administration of Project
     If funded, grantee will meet minimal levels of supervision in implementing the project as
     follows:
     a. Administrators of the project will give at least quarterly written status reports to the elected
          board.
     b. Grantees of NSP funds will provide monthly reports on program progress to DCA.
     c. At least two persons from the local government or other entity will review invoices and
          requests for payment.
     d. The local government manager or other entity administrator reviews and signs off on all
          project reports; monitors the use and expenditure of funds to ensure project proceeds in a
          timely manner to comply with NSP requirements.
     e. All project files will be maintained at the local government offices and made available to
          citizens during regular business hours.
     f. All project files will be maintained at the non-profit’s office.
     g. Attendance at all mandatory meetings as required by DCA.

3.   Recordkeeping Requirements
     Grantee shall maintain records pursuant 24 CFR 570.490.

4.   Audits/Financial/Compliance
     a. NSP grantees expending $25,000 or more in a fiscal year are required to have funds audited
         for the NSP program. NSP funds can be used to pay for the NSP portion of the audit
         provided the grantee has expended $500,000 or more in the fiscal year in total federal
         awards (NSP and other federal funds). If the grantee has expended less than $500,000 in
         total federal awards, the grantee will have to use local funds to pay for the NSP portion of
         the audit.
     b. Follow all applicable general accounting principles as outlined in State and Federal
         regulations.
     c. Ensure all proper measures are taken to eliminate potential fraud, waste and
          abuse of funds.
     d. Have a system in place to track all program income generated as a result of NSP funds.
     e. Select and implement a method of requesting funds (advance payments or reimbursement).

5.   Housing (When using NSP funds for housing activities.)
      If funded, grantee will adhere to the following:
     a. Clear titles to houses prior to rehabilitation undertaken with NSP funds.
     b. Establish a re-inspection program for rehabilitated houses for five (5) years following close-
           out of the NSP grant for owner occupied units and for the length of the rent controls and
           recapture provisions for owner occupied rental units as specified in the rehabilitation
           financial design.
     c. At a minimum, follow North Carolina Division of Community Assistance Housing
           Rehabilitation Standards at 04NCAC 19L.1009.
                                                                                                Page | 30
d. Work with the local health department to comply with federal and state lead-based paint
    requirements.
e. Ensure rehabilitation design will address lead-based paint hazards including:
        1). Documenting units constructed prior to 1978;
        2). Documenting units with children age six and under;
        3). Documenting units with any children identified as having elevated
              blood levels;
        4). Using LBP certified inspectors and/or trained or certified contractors;
        5). Protecting occupants and workers; and
        6). Proper handling and disposal of toxic waste.
f. Inspect houses being rehabilitated in accordance with North Carolina Division of
   Community Assistance Housing Rehabilitation Standards and Volume VII-Residential of the
   North Carolina State Building Code. Local governments and other entities may also use
   adopted higher standards for rehabilitation.
g. If undertaking acquisition and clearance of dwellings, comply with state notification,
    certification, and disposal requirements for asbestos.
h. If undertaking relocation, budget adequate funds based on the costs of housing in the area.
i. If abandoning septic tanks, budget adequate funds to cover related costs in accordance with
    local health department regulations.
j. No charge to low and moderate-income beneficiaries for tap fees or
   assessments for water or sewer improvements.
k. Follow NSP requirements when purchasing residential properties. In addition to NSP
   requirements follow procurement requirements at 24 CFR 85 to select appraisers.
l. Conduct home inspections of all properties to be purchased with NSP funds prior to
   acquisition.




____________                   _________________________________
Date                           Signature of Authorized Official

                               _________________________________
                               Title




                                                                                       Page | 31
          D. Disclosure of Civil Rights Complaints/Lawsuits

      Local Government Applicants

The City/County of _________________________ hereby assures and certifies that there are no
open, unresolved or pending Civil Rights Lawsuits against the (City/County) government
applying for Neighborhood Stabilization funds.


      Other Eligible Entity Applicants

The ____________________________ (entity name) hereby assures and certifies that there are
no open, unresolved or pending Civil Rights Lawsuits against the (entity) applying for
Neighborhood Stabilization funds.



___________________________                             ________________________
Signature of CEO                                        Signature of Other Entity’s
                                                        Authorized Representative

___________________________                             ________________________
Title                                                   Title


_________________                                       __________________
Date                                                    Date




                                                                                      Page | 32
        E. CERTIFICATIONS REGARDING DEBARMENT, SUSPENSION AND OTHER
        RESPONSIBILITY MATTERS
        Applicants should refer to the regulations cited below. Applicants should also review the instructions for
        certification included in the regulations before completing this form, signature on this form provides for
        compliance with certification requirements implementing Federal Executive Order 12549 and guidance
        issued in the Federal Register, Volume 70, No. 168, pages 51863 through 51880 for “Government wide
        Debarment and Suspension (Non-procurement).” The certification shall be treated as a material
        representation of fact upon which reliance will be placed when the Department of Commerce determines
        to award the covered transaction, grant or cooperative agreement.

        1.         DEBARMENT, SUSPENSION AND OTHER RESPONSIBILITY MATTERS
               As required by Executive Order 12549, Debarment and Suspension, for prospective participants in
               primary covered transactions:
             (1) The prospective primary participant certifies to the best of its knowledge and belief, that it and its
                 principals:
                   (a) Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily
                       excluded from covered transactions by a Federal department or agency;
                   (b) Have not within a three-year period preceding this proposal been convicted of or had a civil judgment
                       rendered against them for commission of fraud or a criminal offense in connection with obtaining,
                       attempting to obtain, or performing a public (Federal, State or local) transaction or contract under a
                       public transaction; violation of Federal or State antitrust statutes or commission of embezzlement,
                       theft, forgery, bribery, falsification or destruction or records, making false statements, or receiving
                       stolen property:
                   (c) Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity
                       (Federal, State or local) with commission of any of the offenses enumerated in paragraph (1)(b) of
                       this certification; and
                   (d) Have not within a three-year period preceding this application/proposal had one or more public
                       transactions (Federal, State, or local) terminated for cause or default.
             (2) Where the prospective primary participant is unable to certify to any of the statements in this certification,
                 such prospective participant shall attach an explanation to this proposal.

As the duly authorized representative of the applicant, I hereby certify that the applicant will comply with the above
applicable certification(s).

NAME OF APPLICANT/GRANTEE                                         GRANT NUMBER AND PROJECT NAME


PRINTED NAME AND TITLE OF AUTHORIZIED REPRESENTATIVE


SIGNATURE                                                         DATE




                                                                                                               Page | 33
Instructions for Certifications Regarding Debarment, Suspension and Other
Responsibility Matters

   1. By signing and submitting this form, the prospective participant is providing the certification set
      out on the Certification Regarding Debarment, Suspension and Other Responsibility Matters” in
      accordance with these instructions.

   2. Consequences of False Certification - The certification is a material representation of fact upon
      which reliance was placed when this transaction was entered into. If it is later determined that the
      prospective participant knowingly rendered an erroneous certification, in addition to other
      remedies available to the Federal Government, the department or agency with which this
      transaction originated may pursue available remedies, including suspension and/or debarment.

   3. Errors in Certifying. - The prospective participant shall provide immediate written notice to the
      person to which this proposal is submitted if, at any time, the prospective participant learns that
      its certification was erroneous when submitted or has become erroneous by reason of changed
      circumstances.

   4. Definitions and Further Guidance - The terms “covered transaction,” “debarred,” “suspended,”
      “ineligible,” ”lower tier covered transaction,” “participant,” “person,” “primary covered
      transaction,” ”principal,” “proposal,” and “voluntarily excluded,” as used in this clause have the
      meanings set out in the Definitions and Coverage section of rules implementing Executive Order
      12549. You may contact the person to which this proposal is submitted for assistance in
      obtaining a copy of those regulations or you may refer to the Federal Register, Vol. 70, No. 168,
      pages 51863 –51880.

   5. Certification Extends to Subcontractors - The prospective participant agrees by submitting this
      form that, should the proposed covered transaction be entered into, it shall not knowingly enter
      into any lower tier covered transaction with a person who is debarred, suspended, declared
      ineligible, or voluntarily excluded from participation in this covered transaction, unless
      authorized by the department or agency with which this transaction originated.

   6. Certification Included in Subcontracts - The prospective participant further agrees by submitting
      this form that it will include this clause titled “Certification Regarding Debarment, Suspension,
      Ineligibility and Voluntary Exclusion-Lower Tier Covered Transaction,” without modification in
      all lower tier covered transactions and in all solicitations for lower tier covered transactions.

   7. Reliance on Certification - A participant in a covered transaction may rely upon a certification of
      a prospective participant in a lower tier covered transaction that is not debarred, suspended,
      ineligible, or voluntarily excluded from the covered transition, unless it knows that the
      certification is erroneous. A participant may decide the method and frequency by which it
      determines the eligibility of its principals. Each participant may, but is not required to, check the
      Non-procurement List.

   8. New System of Records Not Required - Nothing contained in the foregoing should be construed
      to require establishment of a system of records in order to render in good faith the certification
      required by this clause. The knowledge and information of a participant is not required to exceed
      that which is normally possessed by a prudent person in the ordinary course of business dealings.

   9. Consequences for Use of Ineligible Sub-grantees - Except for transactions authorized under
      paragraph 5 of these instructions, if a participant in a covered transaction knowingly enters into a
      lower tier covered transaction with a person who is suspended, debarred, ineligible, or voluntarily
      excluded from participation in this transaction, in addition to other remedies available to the
      Federal Government, the department or agency with which this transaction originated may pursue
      available remedies including suspension and/or debarment.
      F. Fraud, Waste, Abuse and Misrepresentation Certifications


Fraud, Waste and Abuse of NSP Funds by Grantees of the State and/or their
Representatives

The US Office of Inspector General has identified NSP funds as high risk. To prevent this
risk, grantees shall take whatever steps necessary to ensure that procedures currently in
use are sufficient or will be strengthened to enable early detection of any illegal activities.
Detection of such illegal activities shall be reported immediately to the Division of
Community Assistance (DCA). The State of North Carolina and/or the Federal government
will pursue remedies available to them including criminal prosecution.

Misrepresentation (intentional or otherwise) by Grantees of the State and/or Their
Representatives

The applicant and/or grantee shall report any default that results in a lien and/or judgment
against it. It shall also certify that the information being provided in the application or
during implementation of the award is correct. The grantee understands that any
determination that is found to be intentional or otherwise will result in disqualification of
the application and/or the rescission of an award at any point after violations have been
disclosed and reviewed by the Division of Community Assistance and determined to be in
violation from the award to closeout.


As the duly authorized representative of the applicant and/or grantee, I hereby certify
that the applicant/grantee will comply with the above certification(s).

________________________________________
Signature of CEO (Chief Elected Official) or
Signature of Other Entity Authorized Representative

________________________________________
Title

________________________________________
Date




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    G. Certification of Review of Laws, Rules, Regulations, NSP Guidelines

This Certification Form is required with all NSP applications submitted to the Division of
Community Assistance (DCA) requesting funds under the Neighborhood Stabilization Program.
This form must be signed by the chief elected official of the local government or the
chairperson of the agency.

The applicant certifies by this form and NSP application, to the best of their knowledge and
belief, that all information and material included in the submission package are accurate and
complete. It further acknowledges that all guidelines, pertinent application, and all applicable
Federal, State, and local laws, rules and regulations have been reviewed. This includes, but is
not limited to, the following:

      NSP Application and Guidelines,
      Housing and Economic Recovery Act
      Federal Register Notice
      4 NCAC 19L
      Subchapter 03 M- Uniform Administration of State Grants
      Uniform Relocation Act (49 CFR 24)
      Citizens Participation Plan (24 CFR 91.105)
      Local Government Requirement (24 CFR 570.486)
      North Carolina General Statutes 14-2-34
      Conflict of Interest (24 CFR 489(g) and (h))


As the duly authorized representative of the applicant, I hereby certify and agree to comply
with all requirements as stated in this document.

________________________________________
Signature of CEO (Chief Elected Official) or
Signature of Other Entity Authorized Representative
________________________________________
Title
________________________________________
Date




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