Docstoc

Tomball Texas Real Estate

Document Sample
Tomball Texas Real Estate Powered By Docstoc
					     Harris County
Community and Economic
Development Department

Community Housing Development Organization
            (CHDO) Workshop
              March 15, 2006
              Agenda

   Overview of HCCEDD
   CHDO Overview
   CHDO Assistance
   Recordkeeping & Monitoring
   Questions & Wrap-up
      Resources Available
     HUD Entitlement Funds, PY2006
Harris County will receive $15,004,622 for PY 2006.


                                    CDBG
                                 $10,985,813
                                     73%



      HOME/ADDI
      $3,552,226
         24%         ESG
                   $466,583
                      3%
Service Area
                Service Area
Unincorporated Harris County and its 15 cooperative cities.

          Bellaire           Seabrook
          Deer Park          Shoreacres
          Galena Park        South Houston
          Humble             Tomball
          Jacinto City       Waller
          Katy               Webster
          LaPorte            West University Place
          Morgan’s Point

   Houston, Baytown and Pasadena receive their own
  community development funds and are not included
          in the Harris County service area.
How it Works
     Provides long term goals to improve
     quality of life for low-income people



     Competitive process through which
     CDBG, ESG and HOME funds are
     allocated

     Annual update to the Consolidated Plan
     allocating funds for the program year



     Implementation and Monitoring


      Describes progress made towards
      goals set forth in the
      Consolidated Plan
        The Consolidated Plan
 Five-year plan that addresses:
      Housing;
      Social services;
      Infrastructure; and
      Community revitalization needs.
 Specifies types of projects to be
  funded
 Application for federal funds under
  HUD’s formula grant programs:
      CDBG;
      HOME / ADDI; and
      ESG.
 Basis for assessing performance
 The Consolidated Plan aids decision
makers in creating strategies to address
             the following:
  Employment and employability;
  Affordable housing;
  Adequate streets;
  Water, sewage and drainage systems;
  Quality education and Workforce Development;
  Parks and green space;
  Community facilities;
  Quality health care;
  Crime awareness and public safety; and
  Safe, peaceful and productive neighborhoods for low-
   and moderate-income communities.
       Request for Proposals (RFP)

 Solicitation and acceptance of proposals
 According to federal and state
  procurement laws and standards
 Applicants must:
    Be a non-profit organization or
     governmental agency or entity;
    Expend funds within a 12-month
     period;
    Have sufficient working capital;

    Meet one Consolidated Plan
     Objective;
    Meet one National Objective;

    Benefit eligible residents in CEDD’s
     HUD Service Area.
 Used to address objectives identified in
  Harris County’s Consolidated Plan
         Annual Action Plan (AAP)


   Detailed description of the
    allocations of Harris County
    HUD entitlement dollars
    (CDBG, HOME, and ESG).

   Discusses how resources
    generated by tax dollars will
    be utilized for the upcoming
    program year.
    Agencies Receive Allocations

 Contracts
          are developed
 between Harris County
 and agencies.

 Fundsare dispersed on a
 reimbursement basis.

 Grants
       Management staff
 monitors all projects.
Consolidated Annual Performance &
   Evaluation Report (CAPER)

  Describes   progress.

  Reviews and reports
  county’s use of
  Entitlement funds.

  Benchmark  for projects
  to be funded.

  Allows
        for self-
  assessment.
CHDO Overview
       What is a CHDO?

A Community Housing Development
  Organization (CHDO) is a private
nonprofit, community-based service
 organization that has obtained or
   intends to obtain staff with the
   capacity to develop affordable
housing for the community it serves.
        CHDO Set-Aside

 15% of the HOME allocation must
be distributed to housing owned,
developed, or sponsored by CHDOs.
(PY06 CHDO Allocation = $522,746)

  Jurisdictions have 24 months to
reserve funds for CHDOs.
    CHDO Qualifying Criteria

CHDOs must meet requirements
pertaining to their:

 Legal Status
 Organizational structure

 Capacity and experience
          CHDO Qualifying Criteria
                Legal Status
To be eligible, organizations must:
   Be organized under state and local law;

   Have their purpose as providing decent
    and affordable housing to low/mod
    income persons;
   Provide no individual benefit;

   Have a clearly defined service area;
    and
   Have an IRS non-profit status. (501(c)3
   or 501(c)4
           CHDO Qualifying Criteria
       Organizational Structure

    1/3 of the board members must be
    residents of the low-income community
   No more than 1/3 of the board members
    can be from the public sector
   Balance is unrestricted except when
    sponsored/organized by a for-profit
        CHDO Qualifying Criteria
    Organizational Structure
Low-Income Representation

To meet the 1/3 minimum requirement:
 Residents of low-income neighborhoods
  in the community
 Residents of the community that are

  qualified as low income
 Elected representatives of low-income

  neighborhood organizations
            CHDO Qualifying Criteria
        Organizational Structure
Low-Income Input
 Low-income  beneficiaries provide input to
 CHDOs through an established formal
 process that is:
     Described in writing; and
     Stated in by-laws or resolution.
 Ways    to achieve this:
     Special committees or neighborhood
      advisory councils; and
     Open town meetings
           CHDO Qualifying Criteria
        Organizational Structure

   Public sector representatives include:
     Elected Officials;

     Appointed officials;

     Public employees; and

     Persons appointed by a public official.

    Low-income public officials count against
    the 1/3 public sector maximum.
          CHDO Qualifying Criteria
       Organizational Structure
CHDO Spin-Offs
For-profit entities can sponsor a CHDO:
   CHDO cannot be controlled by the for-profit;

   Primary purpose of for-profit cannot be
    housing ownership/management;
   For-profit representatives cannot be more
    than 1/3 of the board; and
   CHDO must be free to contract for
    goods/services from any vendor.
          CHDO Qualifying Criteria
     Capacity and Experience
 Organization must:
   Have at least ONE YEAR of experience
    serving the community;
   Demonstrate staff capacity to carry out
    planned activities; and
   Have financial accountability standards.

 Capacity must be relevant to type of CHDO
 activity to be undertaken.
              CHDO Qualifying Criteria
      Capacity and Experience
CHDO Certification*
 Don’t make these mistakes:
   No geographic boundaries to service
    area;
   Not received IRS tax exempt status letter;
   Not recertified each year;
   No organizational and financial
    capacity.
  *CHDO certifications from neighboring jurisdictions are
    ineligible for Harris County CHDO Set-Aside Funds.
         CHDO Qualifying Criteria
     Capacity and Experience

Eligible uses of CHDO set-aside funds
    Acquisition and/or rehab of rental or
     homebuyer housing
    New Construction (rental or
     homebuyer)
    Direct financial assistance
      Buyers of HOME-assisted units
      Sponsored/developed by CHDO
         CHDO Qualifying Criteria
      Capacity and Experience

Ineligible uses of CHDO set-aside
funds:
   Tenant-based rental assistance
   (TBRA)
   Homeowner rehab
   “Brokering” or other real estate
   transaction
       CHDO Roles

To count toward CHDO set-
aside funds, the CHDO must
act as:
 Owner;
 Developer; or
 Sponsor.
            CHDO as Owner

   As owner, CHDO:
     Holds valid legal title; OR
     Has long-term leasehold investment.

   CHDO may be an owner in
    Partnerships:
     Must have effective control.

   CHDO may be both owner and
    developer of its own project.
          CHDO as Developer
   CHDO owns a property OR has contractual
    obligation to the property owner to:
     Obtain financing; AND

     Rehabilitate or construct property.

   If a rental project, the CHDO may also
    manage project.
   If a homeownership project, CHDO
    transfers property to homebuyer.
         CHDO as Sponsor
Of rental housing, the CHDO:
   Develops a project that is solely or
     partially owned;
   Conveys ownership to a second non-
     profit.
Of homebuyer project, the CHDO:
   Owns property and shifts responsibility
    to second non-profit;
   Second non-profit transfers title and
    obligations to homebuyers.
CHDO Assistance
        CHDO vs. Subrecipients

  CHDOs may take on the role of
  subrecipient
    Not       a CHDO set-aside activity
    May    not receive HOME funds for a
       project through the subrecipient
       activity

Please note: CHDO may not receive set-aside and general HOME funds for
             same project.
       Special Assistance

Jurisdictions may provide special
forms of assistance to CHDOs:

 Projectpre-development loans;
 Operating assistance;

 Use of HOME project proceeds;

 Capacity-building assistance.
      Pre-Development Funds

   Costs must be:
     Related to a specific project;

     For HOME eligible activities.

   Uses and costs must be customary
    and reasonable.
   Up to 10% of set-aside.
   Not limited to 10% of a project.
    Types of Pre-Development Loans

   Technical assistance and site control
    loans
      Used to establish preliminary
       feasibility prior to site control
      Do not require environmental
       clearance
   Seed money loans
      Cover pre-construction costs

      Must have site control
    CHDO Operating Assistance

   Up to 5% of HOME allocation may be
    used for CHDO operating assistance
   Eligible uses:
     Organizational support;

     Housing education;

     Administrative expenses; and

     Operating expenses.
Limitations on Operating Assistance

   Assistance may NOT exceed:
       $50,000 each fiscal year; OR
       50% of CHDOs total annual operating
        expenses for that year.
             WHICHEVER IS GREATER!
   Admin funds to CHDOs acting as
    subrecipients do NOT count towards cap.
           Project Proceeds

   Jurisdictions may allow CHDO to retain
    some or all proceeds.
   Proceeds might be:
     Proceeds from permanent financing;
     Interest on HOME loans.

   Proceeds are NOT considered program
    income.
        Use of Project Proceeds
   Use of proceeds must be for:
      HOME-eligible activities; OR
      Other low-income housing
       activities.
   Written agreement with CHDO must
    include:
       Whether CHDO will retain any
        proceeds; and
       The specific use of proceeds.
  Capacity-Building Assistance

HOME funds can be used for CHDO
capacity building:
  Up to 20% of CHDO set-aside
  Total cannot exceed $150,000
  Use for intermediary organizations,
   training and TA or operating
   expenses
            Selecting CHDOs

   Identify potential organizations
   Determine eligibility and basic capacity
     Use the CHDO checklist

   Assess additional needed capacity
     Organizational issues

     Experience

     Financial management
Record Keeping and
    Monitoring
Recordkeeping & Monitoring

Overview
  General recordkeeping
   requirements
  Access to records

  Retention of records

  Monitoring

  Reporting requirements
General Recordkeeping Requirements

Records should be:
   Accurate, complete, orderly; and

   Maintained in order to:

      Document all CHDO funded activities;
       and
      Demonstrate compliance with all
       applicable program and other
       requirements.*
 * According to U.S. Department of Housing and Urban Development Department (HUD) 24 CFR Part 570 and Part 570.208.
General Recordkeeping Requirements



Establish and maintain

     Administrative records
     Financial Records, and
     Project/case files.
         Access to Records
Records are used to create audits, examinations,
excerpts and transcripts. The following have
access to records of CHDO funded organizations:

   CEDD representatives;
   HUD representatives;

   Comptroller General’s Office of the United

    States;
   Other authorized governmental agencies;

   Citizens (24 CFR 570.508).
              Retention of Records

   Retain records for periods of time after
    annual project activities have been
    completed.

   Retain records for five years from the date of
    submission of the CAPER in which activity is
    reported for the last time.

    For all organizations (per 24 CFR 570.502(b)(3), 24 CFR 85.42, and OMB Circular
     A-110, Attachment C)
                Monitoring
The primary mission of monitoring is to
ensure that organizations are:
    In compliance with all regulations
     governing their administrative, financial,
     and programmatic operations; and
    Achieving their performance objectives
     within the schedule and budget, as
     outlined in the Agreement.
               Monitoring
Five steps in a monitoring visit
   Notification letter
   Entrance conference
   Documentation, data acquisition and
    analysis
   Exit conference
   Monitoring letter
           Reporting Requirements

     Reporting requirements are specified
      by the Grantee (CEDD) in the
      Subrecipient Agreement.*

     Programmatic and Reimbursement
      Request Reports are due monthly.
     Quarterly and Annual reports may also
      apply.
    *24 CFR 570.503(b)(2).
Free Legal Advice to CHDOs

       Christina E. Trejo
        Staff Attorney
         Texas C-Bar
    712 Main St., Ste. 2700
    Houston, Texas 77002
  Ph: (713) 228-0735 ext. 153
      Fax: (512) 447-3940
Questions
  And
Answers
       Questions?
          Contact:

      Lori Wilson-Reynolds
        Program Analyst
    (713) 578-2000, ext. 2108
lori_wilson-reynolds@hctx.net

   Or visit our website at:
    www.cedd.hctx.net

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:10
posted:11/13/2010
language:English
pages:53
Description: Tomball Texas Real Estate document sample