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Real Estate Agencies in Hattiesburg Mississippi

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									The Key to the HOME Program

Welcome to the HOME Investment Partnerships Program manual. This manual is your
key to unlocking the HOME Program and how it can benefit your community. The State
of Mississippi has developed a practical strategy for utilizing this program by providing
the detailed guidance and information you need to put the HOME Program to work for
you and your community.

What is the HOME Program?

The HOME Investment Partnerships Program is a federally funded, large-scale grant
program designed to strengthen partnerships between public and private agencies to
provide affordable housing within state and local communities. HOME funds can be
used by state and local governments that are designated as Participating Jurisdictions
(PJ). In Mississippi, the City of Jackson, the City of Hattiesburg, a Consortium that
includes Biloxi, Gulfport and Harrison County, and the State of Mississippi are
designated Participating Jurisdictions; therefore, most Mississippi communities must
access HOME funds through the State. Local communities can use HOME funds to
improve their housing situation in many different ways, including:

            Homeowner rehabilitation or reconstruction

            Assistance to homebuyers

The HOME Program was created to help your community by:

            Providing very-low and low-income persons with decent, safe, sanitary,
             and affordable housing,

            Allowing you to design and implement a game-plan for achieving decent,
             affordable housing within your community,

            Strengthening partnerships among government and private agencies in
             the production of decent, affordable housing for your community, and

            Making various forms of technical and financial assistance available to
             your community.




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What does the manual do?

The HOME Investment Partnerships Program manual was designed to help you apply
for a HOME project. The manual will provide guidance to everyone involved in
developing your application, and will help explain federal and state requirements. The
development of a HOME project is a continuous learning process. This manual will help
make that process for you as simple as possible. The manual will detail every step you
need to be aware of in the process of making a successful application, including:

            Receiving board approval to submit an application;

            Procuring of the organization responsible for a project application,

            Conducting Citizen Participation hearings,

            Completing the actual application included in the manual for your project,

            Rating of applications by the Mississippi Development Authority,

            Verification of applications receiving the highest ratings through site visits,
             and

            Awarding of HOME funds through a legal and binding contract between
             your community and the State of Mississippi.

Your primary responsibility is to enforce the regulations associated with the HOME
program and to make sure your project meets its own objective as well as the State's
general objectives. If you do receive funds but fail to meet your responsibilities, the
State may be forced to suspend, withhold, reduce, or withdraw the grant, or even
require repayment of funds.

The manual has been specifically organized and designed by the staff at the Mississippi
Development Authority to provide you with the information you need in order to take
advantage of the fantastic opportunities available in the HOME program. All of the
material in the manual is provided to accomplish one thing - to assist you in assisting
your community. Thumb through the manual; become familiar with it; read and absorb
it. The more you know about the HOME Program, the better it will work for you and
your community.




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          STATE OF MISSISSIPPI

HOME INVESTMENT PARTNERSHIPS PROGRAM


                    2008

        PROGRAM DESCRIPTION




         COMMUNITY SERVICES DIVISION
      MISSISSIPPI DEVELOPMENT AUTHORITY
                   P.O. Box 849
            Jackson, Mississippi 39205
             Telephone (601) 359-3179




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PROGRAM OVERVIEW
Under the HOME Investment Partnerships Program (HOME), the Department of
Housing and Urban Development (HUD) allocated funds by formula among eligible
state and local governments to strengthen public-private partnerships to provide more
affordable housing. Participating Jurisdictions may use HOME funds to carry out
housing strategies through homebuyer assistance, homeowner rehabilitation
/reconstruction, new construction/substantial rehabilitation of multi-family rental housing,
and tenant-based rental assistance. While the HOME program provides for a variety of
activities, the State in the 2008 program proposes, in addition to the Community
Housing Development Organization (CHDO) set-aside, the following activities and their
description:

     Homebuyer Assistance -- grants may be made to units of local government, and
     CHDOs to provide assistance to credit worthy families in purchasing a home by
     providing down payment assistance or buying down the mortgage to eliminate high
     monthly payments.

     Homeowner Rehabilitation/Reconstruction -- grants may be made to units of local
     government to assist homeowners in making repairs to their homes to correct
     defects in plumbing, roofing, heating, insulation or other renovations that will
     provide the family with a safe, sanitary and decent home.

OBJECTIVE
The HOME Investment Partnerships Program 24 CFR Part 92.1 (b) identifies the three
purposes of the HOME program:

     Expand the supply of decent, safe, sanitary, and affordable housing.

     Strengthen the abilities of states and units of general local government to design
     and implement strategies for achieving an adequate supply of affordable housing.

     Provide participating jurisdictions, on a coordinated basis, with the various forms of
     federal housing assistance.




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2008 HOME ALLOCATION
The 2008 HOME funds to be made available to the State of Mississippi will be published
in the Federal Register. The One-Year Action Plan is based on an estimated allocation
of $14,022,630.00.

HOME 2008 Estimated Allocation Categories

 PROGRAM CATEGORIES                                             ALLOCATION

 Homebuyer Assistance                                             $5,469,235

 Homeowner Rehabilitation                                         $5,000,000

 CHDO Set-Aside                                                   $2,103,395

 Disabled Housing Initiative                                       $750,000

 State Administration                                              $700,000

 TOTAL ALLOCATION                                                $14,022,630



 American Dream Down payment Initiative (ADDI)                     $170,978
NOTE: Pending appropriation by Congress

In the 2008 HOME Program, a Participating Jurisdiction may expend funds for its
HOME administrative and planning costs, including salaries of persons engaged in
administering and managing its HOME activities, in an amount of HOME funds that is
not more than ten percent of the estimated HOME basic formula allocation (or
$1,402,263). The State intends to reserve not more than $700,000 for State
Administration, and the remaining amount will be distributed among local recipients in
the Homebuyer Assistance, Homeowner Rehabilitation, and Disabled Housing Initiative.

The State must reserve at least 15 percent of its estimated HOME allocation or
$2,103,395 to be used by CHDOs. The HOME CHDO set-aside may be used for new
construction/substantial rehabilitation of rental units or homebuyer assisted housing.

The State reserves the right to transfer funds between program categories based on the
demand created by the applications; however, the 15 percent CHDO set-aside will not
be reduced.




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Match Requirements

Section 210 of the HCD Act of 1992 revised the matching requirements for Participating
Jurisdictions in the HOME Program. The State must require the following matching
contributions:

New Construction ....................................................................................................... 25%
Homeowner Rehabilitation ......................................................................................... 25%

However, the Secretary reduced the match liability by 50 percent for a jurisdiction that
met the criteria for fiscal distress and by 100 percent for severely fiscally distressed.
HUD published a list of local Participating Jurisdictions that met the criteria for a fiscally
distressed or severely fiscally distressed area. The State met the severely fiscally
distressed criteria for HUD’s FY 2008. The State will require a leverage contribution for
new construction CHDO only and homebuyer assistance regardless of the match
requirement established by HUD.




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Application Submission Dates

           PROGRAM CATEGORIES                           SUBMISSION DATES
 Homebuyer Assistance                              May 1, 2008
 Homeowner Rehabilitation                          May 1, 2008

 CHDOs                                             May 1, 2008

 Disabled Housing Initiative                       Non-Competitive

 American Dream Down payment Initiative            May 1, 2008

Other Deadlines


 Audits                                         April 1, 2008

 Closeouts                                      April 1, 2008

Distribution Process
HOME funds will be distributed in accordance with the State's Consolidated Plan. The
State intends to distribute HOME funds statewide to eligible local applicants using a
competitive process.

Eligible Applicants
All units of local government and CHDOs not designated by HUD as local participating
jurisdictions or Consortium are eligible to apply.

Any applicant with unresolved audit or monitoring findings or concerns will not
be considered for funding. Any application that has been prepared by an
application preparer who is involved in a pending debarment or suspension
proceeding before a state or federal agent shall not be reviewed until such time
as the debarment proceeding has been finally resolved.

The state has two Entitlement Cities---the City of Jackson, City of Hattiesburg and a
Consortium that includes Biloxi, Gulfport, and Harrison County---that are eligible for
HOME funds as Participating Jurisdictions. The remaining two CDBG Entitlement cities
(Pascagoula and Moss Point) are eligible under the state’s HOME Program and will
compete for HOME funds with all other applicants in the Homeowner
Rehabilitation/Reconstruction, New Construction/Substantial Rehabilitation, and
Homebuyer Assistance categories.



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POLICIES AND PROCEDURES
AFFIRMATIVE MARKETING PROCEDURES
The MDA and all local units of government and CHDOs that participate in or receive
HOME funds to assist five or more units must comply with 24 CFR Part 92 Subpart H
92.351. In order to comply, affirmative marketing procedures and requirements must be
adopted.

Each grant recipient shall display in public view, posters affirming Equal Housing
Opportunity as amended under the Fair Housing Amendments Act of 1988.

The State certifies that HOME program funds will be awarded in accordance with the
non-discrimination and equal opportunity requirements set forth in the program
regulations. The State will provide the recipients with all applicable non-discrimination
laws. Recipients will be provided with procedures outlining corrective action for non-
compliance. The State’s Minority Business Directory can be obtained by accessing the
website at www.mississippi.org.

The State will require grant recipients to establish appropriate procedures and
requirements to affirmatively market units in the HOME projects and to assess the
results of their efforts in accordance with the HOME program regulations. Procedures
and requirements must include the following:

      The methods for informing the public, owners, and potential tenants about the
       federal fair housing laws and the grant recipient's affirmative marketing policy.

      The requirements and practices for owners to follow in complying with the grant
       recipient's affirmative marketing procedures and requirements.

      The special outreach procedures to be used by owners to inform and solicit
       applications from persons in the housing market area who would not otherwise
       apply. The owner may wish to use community organizations, places of worship,
       employment centers, fair housing counseling agencies, social service centers,
       and other resources for this outreach.

      The owner must maintain a listing of all tenants residing in each unit at the time of
       application submittal through the end of the compliance period.

      The owner must maintain a file containing all marketing efforts (i.e. copies of
       newspapers, calls, letters, etc.)

      Records must be kept on file describing efforts and results of grant recipients and
       owners in affirmatively marketing units.

      Owner advertisement of vacant units must contain the fair housing opportunity
       logo or statement.




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MINORITY/WOMEN BUSINESS OUTREACH PROGRAMS
The Mississippi Development Authority (MDA) encourages the promotion and
participation of Minority/Women Business Enterprises (MBE/WBE) in every aspect of
the HOME program. To assure total support from all citizens and grantees the following
requirements will be a part of each recipient's program goals:

         Public Law 95-507

         Executive Orders 11625 and 12432 (MBE)

         Executive Orders 12138 (WBE)

The current Minority Business Directory may be obtained by accessing the website at
www.mississippi.org. In keeping with HUD policy and that of MDA’s Community
Services Division, all grant recipients of HOME funds require the following actions:

        Contact at least two minority/women owned businesses by certified mail and
         allow them the opportunity to submit a proposal or bid to provide any service
         needed.

        Forward a copy of the Request for Proposal (RFP) or Invitation to Bid (IFB) to
         the Mississippi Procurement Technical Assistance Program in accordance with
         the Mississippi Code 31-7-13 for electronic dissemination to MBE/WBE through
         an automated Bid Management Program.

        Maintain records to document the extent of MBE/WBE contracting and
         subcontracting.

        Adopt a resolution establishing local goals for MBE/WBE participation. It is
         recommended that the local goals be no less than those of the Federal: five
         percent (5%) for MBE's and five percent (5%) for WBE'S.

        Submit a copy of the resolution to the MDA's Community Services Division.

        Incorporate the goal statement in all bid packets.

        Grantees will be awarded rating factor points in subsequent applications based
         on their efforts in meeting the State's MBE/WBE goals.




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FEDERAL REQUIREMENTS
All recipients will be required to comply with certain federal and state requirements. The
following briefly describes major requirements that may apply.

        The requirements of OMB Circular No. A-87, Cost Principles for State Local
         Governments, which addresses allowable costs, shall apply to State recipients or any
         governmental sub-recipient receiving HOME funds.

         …       24 CFR 85.36 (b)(2), Grantees and sub-grantees will maintain a contract
                 administration system which ensures that contractors perform in
                 accordance with the terms, conditions, and specifications of their contracts
                 or purchase orders

        Non-profit organizations and CHDOs must follow the requirements of:

           ...     OMB Circular No. A-1 22, Cost Principles for Non-Profit Organizations
           ...     24 CFR Part 84, Grants and Agreements with Institutions of
                   Higher Education, Hospital, and other Non-profit Organizations
           ...     24 CFR Part 84.21 (d), Bonding and Insurance
           ...     24 CFR Part 84.21 (e), Standards for Financial Management Systems
           ...     24 CFR Part 84.51, Monitoring and Reporting Program Performance,
                   paragraph 2
           ...     24 CFR 84.40-84.50, Procurement Standards
           ...     24 CFR 84.84, Conflict of Interest

          Recipients are responsible for audit costs.
           ... Audits must be conducted in accordance with
                24 CFR Part 44, Non-Federal Governmental Audit Requirements and
           ... OMB Circular A- 133, Audits of Institutions of Higher Education and other Non-
                Profit Institutions.

        Local units of government must follow the requirements for procurement of:
           ... 24 CFR Part A-85,
           ... State of Mississippi Procurement laws, or
                Mississippi Development Authority (CSD) Policy Statements- WHICHEVER IS
                MORE STRINGENT.

        All contracts for HOME funds are subject to audit in accordance with OMB Circular A-
         133.

         HOME funds from each federal fiscal year (i.e., the allocation and any reallocated funds
          from the particular federal fiscal year appropriated) will be closed out when all the
          requirements of 24 CFR Part 92.507, Closeouts, have been met.

        Each recipient must establish and maintain sufficient records to enable the
         State to determine whether the applicant has met the requirements of 24 CFR Part
         92.508, Recordkeeping.


                                                                                      Form HUD-2880 (3/99)
        Recipients must comply with the requirements of 24 CFR 92.356, Conflict of Interest.

        Recipients must comply with the requirements of 24 CFR Part 92.353, Displacement,
         Relocation and Acquisition when HOME funds are used to assist a project.

        Recipients must comply with the requirements of the Uniform Relocation Assistance and
         Real Property Acquisition Policies Act 1970 at 49 CFR Part 24, Subpart B.

        Upon sale of a housing unit prior to expiration of the affordability period, funds must be
         paid back to the local unit of government in accordance with 24 CFR Part 92.

FEDERAL LAWS THAT APPLY TO HOME
Cranston-Gonzalez National Affordable Housing Act of 1990 - This Act authorized the
HOME Program. All applicable provisions of the act shall be adhered to by recipients.

The Civil Rights Act - This Act provides that no person in the United States shall on the
grounds of race, color, or national origin, be excluded from participation, be denied the benefits
of, or otherwise be subjected to discrimination under any program or activity for which the
recipient receives federal financial assistance. The recipient shall also administer all programs
and activities relating to housing and community development in a manner to affirmatively
further fair housing.

Age Discrimination Act of 1975 - This Act states that no person on the basis of age shall be
subject to discrimination, excluded from participation in, or be denied the benefits of any
program or activity for which the recipient receives federal funds.

Section 504 of the Rehabilitation Act Of 1973 - This Act provides that no person shall, due to
a physical or mental handicap, be excluded from participation in, denied the benefits of, or be
subject to discrimination under any program or activity for which the recipient receives federal
funds.

Davis-Bacon Act - This Act requires that all laborers and mechanics employed by contractors
and subcontractors in the performance of construction work financed in whole or in part with
federal funds, shall be paid wages at rates not less than those prevailing on similar construction
in the locality as determined by the U.S. Secretary of Labor. This applies to any activity with
costs exceeding $2,000. Activities dealing with New Construction/Substantial Rehabilitation are
not required to comply with the Davis-Bacon unless the property is designed for the residential
use of twelve or more units.

National Environmental Policy Act and 24 CFR Part 58 - This Act provides for the
identification of environmental impacts of proposed projects utilizing federal funds. This
includes the preparation of environmental assessments and, where necessary, environmental
impact statements. All construction projects will require an environmental review.

Lead-Safe Housing Regulation - Under this Act, the construction or rehabilitation of residential
structures or non-dwelling facilities commonly used by children under seven (7) years of age
with federal assistance is subject to regulations contained in 24 CFR Part 35.

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Government-Wide Restriction on Lobbying - This Act ensures that no federal funds will be
paid for influencing or attempting to influence an officer or employee of any agency or Member
of Congress, in conjunction with awarding of any federal contracts, grants, loans, etc.

Section 3 of the Housing and Urban Development Act of 1968, (12 U.S.C. 1701u) Executive
Orders 11625, 12432, and 12138. Section 3 of the Housing and Urban Development Act of
1968, as amended (12 U.S.C. 1701u) requires that to the greatest extent feasible opportunities
for training and employment be given to lower-income residents of the project area and
contracts for work in connection with the project be awarded to eligible business concerns which
are located in, or owned in substantial part by, persons residing in the area of the project.

FEDERAL REQUIREMENTS FOR HOMEBUYER ASSISTANCE
Resale Provisions

All communities and/or developers investing HOME dollars in homeownership units under the
HOME Program will be required to adhere to the following resale guidelines as specified by 24
CFR 92.254:

     A.   The housing must remain affordable to low income homebuyers for the following
          minimum time period, depending upon the amount of HOME investment:

               Over $40,000                     15 years
               $15,000 to $40,000               10 years
               Under $15,000                     5 years

     B.   If the house does not continue to be the principal residence of the family for the
          duration of the period of affordability or if the house is sold prior to the end of the
          affordability period to a purchaser not meeting the requirement below, the subsidy
          attributable to the site is repayable upon sale to the extent that the proceeds from the
          sale allow and may be reduced pro-rata based on the time the borrower owned and
          occupied the residence. If the home is sold to a purchaser meeting the following
          requirement, the HOME subsidy may be assumed by the purchaser.

          Requirement: The home is offered at a price that provides the owner with a fair return
          on investment, including any improvements, but also remains within a price range
          which is affordable to a purchaser who is HOME eligible and who can also credit
          qualify for the appropriate first mortgage loan. This should be done in the form of a
          deed restriction. This recorded deed must be submitted to MDA.

          CHDO’S applying for homebuyer assistance must have site control
          to be eligible




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FEDERAL REQUIREMENT FOR CHDO NEW CONSTRUCTION
A.   Property Standards

     Multi-family dwellings covered by the “Fair Housing Act” must be designed and constructed
     to meet the accessibility standards of the Act. Certain of these dwellings, as well as certain
     public and common use areas of such dwellings, may also be covered by various other
     laws, such as section 504 of the Rehabilitation ACT of 1973 (29 U.S.C. 794); the
     Architectural Barriers Act of 1968 (42 U.S.C. 4151-4157); and the Americans with
     Disabilities Act of 1990 (42 U.S.C. 12101-12213).

     All newly constructed projects funded with HOME funds must meet local codes
     and zoning ordinances. If no local codes exist, plans must comply with applicable codes of
     the standards of the Southern Building Code Congress International.

     The Model Energy Code published by the Council of American Building Officials relative to
     new construction shall be met.

     Residential living space must constitute at least 51% of the project space.

     Plans should be of good design that will enhance the quality of life for residents and should
     incorporate energy efficiency through materials, heating, ventilation and air conditioning
     (HVAC) systems, building design, and site orientation.

     Construction and site plans must be finalized and approved by the MDA, Community
     Services Division prior to the start of construction. Failure to obtain approval prior to start
     of construction may result in questionable cost. All newly constructed projects which
     involve more than four (4) units must include five percent (5%) or a minimum of one (1) unit
     which is handicapped accessible. Also, a total of two percent (2%) or a minimum of one
     (1) unit must be equipped to facilitate the visual and/or hearing impaired.

     Multi-family housing projects will not be funded or constructed with a density of greater
     than six housing units per acre. Grant recipients must provide documentation to assure
     meeting this requirement at the point of application and during the plan review process.

B.   Affordability and Income Targeting

     1.   Program Funds Rule

          Not less than ninety percent (90%) of the families initially occupying rental housing
          constructed with HOME funds must be families whose annual incomes do not exceed
          60% of the area median income. The balance of funds may be used to assist
          families, which have incomes not in excess of 80% of the median family income for
          the area.
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      2. Rent Controls

          HOME assisted rental units are subject to the following rent controls:

          High HOME Rents: 80% of HOME assisted rental units must have rents that are the
          lesser of:
          (a) The Section 8 Fair Market Rents (FMRS) or area-wide exception rents for
               existing housing minus tenant paid utilities, or

          (b)   Rents, which are 30% of adjusted income for households at 65% of median
                income minus tenant, paid utilities.

          Low HOME Rents: 20% of HOME assisted units must have rents which equal 30% of
          annual incomes for households at 50% of median income minus tenant paid utilities.

     Tenant eligibility must be determined by the owner at the time of occupancy and must be
     re-examined at least annually.

     Every HOME assisted rental unit is subject to rent controls to keep the property in
     compliance with HOME guidelines for a minimum of 20 years.

     The State will require repayment of grant funds from the grant recipient if the affordability
     requirements for the specified time period are not met.

C.   Investment of Funds

     The minimum of HOME investment funds to be used for new construction is an average of
     $1,000 per unit. HOME assisted projects that are terminated before completion, either
     voluntarily or otherwise, constitutes an ineligible activity. Activities that do not meet the
     minimum investment and do not lead to an accomplishment and/or beneficiaries will be the
     responsibility of the grant recipient.

     The maximum allowable amount of HOME funds is as follows:

          O-Bdrm.       1-Bdrm        2-Bdrm.        3-Bdrm.       4+ Bdrm.
          $49,590       $56,845       $69,124        $89,423       $98,160

D.   Tenant and Participant Protection

     The applicant must have provision to assure compliance with the Tenant and Participant
     Protection requirements as set forth in 24 CFR Part 92.253.

E.   Market Analysis

     A market analysis must be completed within the last 12 months of the application.




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FEDERAL REQUIREMENTS FOR HOMEOWNER REHABILITATION
A.   Ownership

     1. The property owners must be low income (below 80% median) and occupy
        the property as their principal residence.

     2. The appraised value of the property, after rehabilitation, must not exceed the
        FHA 203 (b) mortgage limits for single-family property. The Statewide 203 (b)
        maximum mortgage limit for a single-family property is $200,160 at project
        closeout.
     3. There must be no restrictions or encumbrances that would unduly restrict
        the good and marketable nature of the ownership interest.

     4. The eligible property types of any single-family property, occupied as a
        principal residence by the owner, are a one-to four-family property,
        condominium unit (one to four units), manufactured home, or cooperative unit.

B.   Investment of Funds

     The minimum of HOME investment funds to be used for homeowner rehabilitation is an
     average of $1,000 per unit. HOME assisted projects that are terminated before
     completion, either voluntarily or otherwise, constitutes an ineligible activity. Activities that
     do not meet the minimum investment and do not lead to an accomplishment and/or
     beneficiaries will be the responsibility of the grant recipient

     The maximum allowable amount of HOME funds is as follows:

          O-Bdrm.         1-Bdrm.        2-Bdrm.          3-Bdrm.        4+ Bdrm.
          $49,590         $56,845        $69,124          $89,423        $98,160

C. Eligible Uses of Funds

     HOME funds for homeowner rehabilitation activities may be used as interest-bearing loans,
     non-interest bearing loans, interest subsidies (that leverage other monies), deferred
     payment loans (due upon sale), or grants.

D.   Rehabilitation Standards

     MDA, through CSD Policy Statement 07-022, established residential construction
     standards for activities undertaken through funding from CSD. These standards are to be
     used in developing local policy and correcting substandard conditions in housing projects.

     All housing construction activities must comply with applicable local codes, local
     rehabilitation standards, local zoning ordinance, International Residential Code by the
     International Code Council (ICC), and the Model Energy Code, as published by the Council
     of American Building Officials.


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REQUIREMENTS
NEW OR NOTABLE ITEMS FOR 2008
   An applicant must have no unresolved audit or monitoring findings or unresolved issues by
    any state or federal agency as it pertains to any Community Services Division (CSD)
    administered program. The applicant’s required audit(s) and closeout packages must be
    received by the CSD at 501 North West Street on or before April 1, 2008. Waivers for
    closeouts or audits should be requested by the due date. Requests for audit waivers
    will be considered if accompanied by an acceptable statement from the auditor or
    Certified Public Accountant of the current status of the audit completion. The
    Division Director of CSD will be the only signature authority for waivers. Audits that
    are due to the State would be 2006 and prior.

   HOME applications will be due on May 1, 2008. Applications must be in the Community
    Services Division, 501 N. West Street, 5th Floor by 4:00 p.m. No applications will be
    accepted after 4:00 p.m. on May 1, 2008. MDA’s time clock on the 5 th Floor will be the clock
    used for meeting the application submission deadline.

   Home contracts will be sent out after the recommendation is made. Environmental
    clearance must be completed within four (4) months of the award date or the contract will be
    voided. No request for cash will be processed until the environmental clearance is granted
    (this includes application preparation). Waivers to the four (4) months rule may be granted
    on a case-by-case basis. The Division Director of CSD will be the only signature authority
    for waivers.

   For Homeowner Rehabilitation projects, proof of gross income verified within the past 60
    days must be submitted in the application. MDA will use Part 5 Definition to determine
    annual income. Part 5 Definition of annual income is the gross amount of income of all adult
    household members that is anticipated to be received during the coming 12-month period.
    MDA will require the homeowner to certify and provide proof of income for themselves and
    any and all income producing persons living in the home to include income wages, child
    support, SSI, AFDC, and any and all earned income. Income projected over the next 12
    months is used to determine income eligibility.

   The conducting of a site visit does not imply or denote that an applicant will be funded.

   During the review of the applications, the State reserves the right to adjust the amount of the
    request. This adjustment will be based on verification of cost, availability of other funds,
    outcome of the site visit, and the availability of HOME funds.

   HUD issued a waiver on January 4, 2007 for the 99-year lease requirement for individuals
    who own units on Sixteenth Section land.

   Tax assessments are required for properties that are rehabilitated/reconstructed.

   On each application, the local unit of government must put their fiscal year end date
    (month and day). This is a new section to the application.
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   As issued in CSD Instruction #07-022, MDA requires that all housing that is
    constructed or rehabilitated with HOME funds must meet all applicable local codes,
    rehabilitation standards, ordinances and zoning ordinances. In the absence of a local
    code for new construction or rehabilitation, HOME assisted new construction or
    rehabilitation must meet the International Residential Code by the International Code
    Council (ICC). Newly constructed housing must meet the current edition of the Model
    Energy Code published by the Council of American Building Officials.




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GENERAL REQUIREMENTS
   Recipients are required to carry out their projects in accordance with the regulations for the
    HOME Investment Partnerships Program, Final Rule, 24 CFR Part 92, as amended and with
    other applicable federal and state laws and provisions which can be found at the following
    internet address: www.hud.gov

   The HOME Investment Partnerships Program Description published January 2008, will
    govern the administration of the State’s program. The HOME Program Description,
    application package, and any subsequent changes, additions, clarifications, requirements,
    and assurances issued by the State or HUD relating to the HOME program shall govern the
    operation of the program. Should any questions of interpretation of any rule, requirement, or
    regulation arise, the State’s decision shall be final.

   An applicant must have no unresolved audit or monitoring findings, or unresolved issues by
    any state or federal agency as it pertains to any CSD administered program. The applicant's
    required audit(s) must be received by the Community Services Division at 501 North West
    Street on or before April 1, 2008. Waivers for closeouts or audits should be requested
    by the due date. Requests for audit waivers will be considered if accompanied by an
    acceptable statement from the auditor or a Certified Public Accountant of the current
    status of the audit completion. The Division Director of CSD will be the only signature
    authority for waivers. Audits that are due to the State would be 2006 and prior.

   In order to apply for 2008 HOME funds, an acceptable closeout package must be received
    by the Community Services Division at 501 North West Street on or before April 1, 2008.

   A Public Hearing must be conducted seven (7) days prior to submission of the application.
    Copies of the public hearing notice, proof of publication of notice, roster and minutes of the
    meeting must be submitted as part of the application. The minutes must bear the signature
    of the applicant's Chief Executive Officer. The applicant must publish a notice of the public
    hearing not less than fourteen (14) nor more than twenty (20) days prior to the date of the
    hearing in the non-legal section of a local newspaper of general circulation. Citizen
    Participation requirements must be conducted in accordance with states’ Citizen
    Participation Plan.

   During the review of the applications and the on-site visit, the State shall verify information
    for accuracy and determine feasibility and readiness of the project. This review may result in
    disqualification of an application or adjustment of request for funding.

   Projects must be financially feasible, including but not limited to administrative capacity,
    impact of design in relationship to the identified need, and level of firm documented
    commitment from other financial sources. If an application numerically rates successfully but
    is not deemed to be financially feasible upon analytical review by MDA, the application will
    not be considered for funding.

   During the review of the applications, the State reserves the right to adjust the amount of the
    request. This adjustment will be based on verification of cost, availability of other funds, and
    the availability of HOME funds.

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   The State reserves the right to either increase or decrease the points awarded in any rating
    factor based on information gained during a site visit. The conducting of a site visit does not
    imply or denote that an applicant will be funded.

   Should two or more applications in the same category receive the same total number of
    points in the rating process; a tie breaker as indicated in the selection process will be used to
    determine the final award.

   Exceptions to minimum and maximum grant amounts may be allowed by the State
    depending on circumstances and benefits to the local unit of government and the State of
    Mississippi.

   Municipalities submitting an application for HOME funds to construct units outside the city
    limits must enter into an Inter-Local Agreement with the County. A copy of the Inter-Local
    Agreement must be included with the application.

   Any application that has been prepared by an application preparer who is involved in a
    pending suspension or debarment proceeding, or otherwise deemed ineligible shall not be
    reviewed until such time as the suspension or debarment proceeding or otherwise deemed
    ineligible has been finally resolved. Additionally, no person who is involved in a debarment
    proceeding shall be allowed to administer a CDBG, ESG, or HOME project until such time as
    the suspension or debarment proceeding or finding is resolved.

   If it is found during the review and rating process that the State has made a procedural error
    (such as mathematical) which, if corrected, would result in an increase of points that would
    have made funding possible, the State will give that applicant priority in the next years
    allocation. If funds are returned to the State, the applicant will be given priority
    consideration.

   If an applicant fails to meet any of the requirements of the HOME program on the basis of a
    minor technical error (without intent to circumvent the program guidelines) the State reserves
    the right to provide reasonable remedy to correct such an error.

   MDA will use Part 5 Definition to determine annual income. Part 5 Definition of annual
    income is the gross amount of income of all adult household members that is anticipated to
    be received during the coming 12-month period. MDA will require the homeowner to certify
    and provide proof of income for themselves and any and all income producing persons living
    in the home to include income wages, child support, SSI, AFDC, and any and all earned
    income. Income projected over the next 12 months is used to determine income eligibility.

   MDA will issue contracts prior to environmental clearance. All funded projects are required
    to complete environmental requirements as a special condition within four months or the
    project will be deobligated. If environmental requirements are not completed, any
    expenditures become the responsibility of the grant recipient and will be repaid using non-
    HOME program funds. Waivers to the four (4) months rile may be granted on a case-by-
    case basis. The Division Director of CSD will be the only signature authority for waivers.

   During monitoring, if it is found that activities carried out are not the same activities as
    described in the application, the project may be terminated or a unit(s) will be disqualified
    and funds expended on that project repaid to the State using non-federal funds.
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                                                                                                  2008
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   Any program income generated from loans must be expended toward the project prior to
    drawing down grant funds. Program income or anticipated program income must be
    reported to CSD, and if applicable a copy of the Note and Deed of Trust as recorded, must
    be submitted to the Mississippi Development Authority, Community Services Division, Post
    Office Box 849, Jackson, MS 39205. Upon the approval of CSD, the recipient may retain
    any program income derived from the use of HOME funds. All Program Income, if any, shall
    be used to defray the expenses incurred in the implementation of this contract, before
    requesting disbursement of additional HOME funds.

   The State may recapture funds previously awarded to the HOME recipient for reasons such
    as failure to satisfy timeliness of the implementation of the project, failure to comply with
    contractual conditions, or failure to complete closeout. Recaptured or de-obligated funds
    may be used to supplement State administration, fund existing projects that may require
    additional funds, or to fund other HOME eligible activities.

   In order for the applicant to receive points in the MBE/WBE category on a previously funded
    HOME project, the firm/company must be certified with MDA’s Minority Small Business
    Development Division.

   All plans and specifications must be submitted to CSD prior to the start of construction.
    Once CSD has received all of the required documentation, a “Notice to Proceed” will be
    issued. This documentation gives the contractor the approval to begin construction. Any
    construction that begins prior to receiving this Notice will be ineligible for HOME funds.

   If HOME funds are used to assist in the development of a project and the project includes
    acquisition activities, then the Uniform Real Property Acquisition Policies Act applies. This
    means that even if a property is bought/sold prior to the application, the determination of fair
    market value must be determined and documented.

   To qualify as a property owner, a family or individual must have fee simple title to the
    property; maintain a 99-year leasehold interest in the property; have ownership in a
    cooperative; or have land sales contract one year prior to the State application due date.
    The U.S. Department of Housing and Urban Development (HUD) issued a waiver on
    January 4, 2007 for the 99-year lease requirement for individuals who own units on Sixteenth
    Section land. The U.S. Department of Housing and Urban Development does not
    accept life estates as ownership.

   The State must have written assurance from the homeowners that they will not lease/rent for
    as long as they own the home.

   In the homeowner rehabilitation category, property must have been owned by the
    homeowner for at least 12 months prior to submission of the application on May 1, 2008.

   Applications which require the local unit of government or CHDO to pass thru the HOME
    funds to a developer must contain documentation of a repayment plan evidencing a firm
    commitment from the developer to repay the grant funds to the recipient.

   Newly constructed houses must be complete and functional at time of closing.

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   As issued in CSD Instruction #07-022, MDA requires that all housing that is
    constructed or rehabilitated with HOME funds must meet all applicable local codes,
    rehabilitation standards, ordinances and zoning ordinances. In the absence of a local
    code for new construction or rehabilitation, HOME assisted new construction or
    rehabilitation must meet the International Residential Code by the International Code
    Council (ICC). Newly constructed housing must meet the current edition of the Model
    Energy Code published by the Council of American Building Officials.




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HOMEBUYER ASSISTANCE
The State will accept applications for Homebuyer Assistance from local units of government and
CHDOs (from the CHDO set-aside) using a competitive process to distribute HOME funds
statewide. The State has designed specific selection criteria that will be used to objectively rate
the applications. The State will rate all homebuyer assistance applications and assign points to
each rating criterion based on the data provided in the application and consistent with the needs
identified in the Consolidated Plan. Funding decisions will be based on the scores attained.
Applications will be accepted for down payment assistance on newly constructed homes or
acquisition of existing single-family units.

CHDOs submitting an application for Homebuyer Assistance in the CHDO set-aside will use the
same criteria and will use the Homebuyer Assistance application. The CHDO must have site
control to be eligible for this activity.

AVAILABLE FUNDS/GRANT SIZE
Funds are available in the Homebuyer Assistance category in an estimated amount of
$5,469,235. This allocation is contingent upon the availability of funds to the State of
Mississippi from the U. S. Department of Housing and Urban Development. The maximum and
minimum grant sizes for Homebuyer Assistance are $500,000 and $250,000, respectively.

SUBMISSION DATE

Applications will be due on May 1, 2008. Applications must be in the Community Services
Division (CSD), 501 N. West Street, 5th Floor, by 4:00 p.m. No applications will be accepted
after 4:00 p.m. on May 1, 2008. MDA’s time clock on the 5th Floor will be the clock used for
meeting the application submission deadline.

THRESHOLD REQUIREMENTS
An applicant applying for HOME Homebuyer Assistance funds must have either never been
funded or have all funds drawn down on HOME-funded grants and have submitted an
acceptable closeout package on or before April 1, 2008. An applicant must have no unresolved
audit or monitoring findings, or unresolved investigations by any state or federal agency or
otherwise be deemed ineligible as it pertains to any CDBG, HOME or ESG grant. The
applicant's required audit(s) must be received by the Community Services Division at 501 North
West Street on or before April 1, 2008. The absence of an audit constitutes an audit finding,
unless CSD receives an acceptable statement from the preparer of the current status of audit
completion by the April 1, 2008 deadline. Applications that are not consistent with the State's
Consolidated Plan will not be considered for funding. An applicant must comply with the Citizen
Participation Requirements and submit documentation in the application, which indicates a
Public Hearing, was held at least seven (7) days prior to the submission of an application. The
Notice for the Public Hearing was published at least fourteen (14) and no more than twenty (20)
days before the Hearing was held. In order to be considered for funding, applications must
receive a minimum of eighty-five (85) points. If a project does not propose to use the down
payment assistance to construct new single family units, the application must contain
documentation of existing affordable housing, i.e., option on the number of houses proposed to


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                                                                                                 2008
                                                                                                  -22-
purchase, multi-listing service information, local real estate agency has sold a certain number of
units documenting the turnover rate (through sales contract). The State will not review or rate a
project that is determined to be infeasible. The State reserves the right to make this
determination.

Homebuyer Assistance General Requirements

   HOME funds used for Homebuyer Assistance must be used for down payment assistance or
    mortgage buy-down to an income eligible applicant.

   For the Homebuyer Assistance Program, participation by a lender must be included in the
    application.

   Newly constructed houses must be complete and functional at time of closing.

   Applicants that provide an agreement with a certified HUD trainer/counselor or an affiliate to
    provide Homeownership Training/Counseling will receive 10 points.

   In the Homebuyer Assistance category, applicants are required to make sure the period of
    affordability is maintained and that the resale provisions are enforced.

   CHDO’s applying for homebuyer assistance must have site control to be eligible for this
    activity.

STANDARDS
Any housing unit for which HOME funds are used for down payment assistance for newly
constructed or existing single family units to be acquired must meet local codes, zoning
ordinances and the standards set forth in the Section 8 Housing Quality Standards (HQS) and
the International Residential Code by the International Code Council (ICC). Newly constructed
housing must meet the current Model Energy Code published by the Council of American
Building Officials.

SELECTION PROCESS
The State has designed specific selection criteria that will be used to objectively rate the
applications. Each applicant will be rated against each other with the ones receiving the highest
points being funded. The State may contact applicants for clarification of the information
presented in the application, but no applicant may submit additional information after May 1,
2008, that may affect the rating of the project. Funding decisions will be based on the scores
attained, applicants with the highest scores being funded until funds are exhausted. In the
event there is a tie, the State will use the highest percentage of substandard housing units in the
applicants’ locale. If a second tie breaker is needed, the per capita income for the applicant’s
locale will be considered. If an additional tie breaker is needed, the highest unemployment rate
for the month prior to the application due date will be considered.




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APPLICATION RATING FACTORS
Homebuyer Assistance

The rating factors and maximum points for the 2008 Homebuyer Assistance Category are:

                                                                                       Points

      1.   Determination of Need                               Derived from census data
      2.   Leveraging of Other Funds                                                 30
      3.   MBE/WBE                                                                   50
      4.   Homeownership Training/Counseling                                         10
      5.   Timely Completion                                                         50




Explanation of Rating Factors

1.   Determination of Need

     The State will review each applicant's determination of need based on the total percentage
     received for families below poverty, per capita income, age of household units, units
     lacking complete plumbing facilities, and units with 1.01 or more persons per room. The
     State will review each applicant's source documentation to verify the information submitted.
     Points received will be averaged to determine the points awarded under Determination of
     Need. Applicants must submit 1) a printed copy of the information obtained from the
     website which must include the website address 2) a census tract map to identify location
     of project. Applications that do not include legible source documentation will not be
     considered.

                                                                              Points

     Percentage of persons below poverty level                               _____
     $15,853  applicant’s per capita income x 100                           _____
     Percentage of units lacking complete plumbing facilities                _____
     Percentage of units with 1.01 or more persons per room                  _____
                                                                       Total _____

     Total points _____ / 4 = _____ (points received in this rating factor)

     Example:

     Percentage of persons below poverty level                                 19.50
     Percentage of per capita income that falls below $15,853                  95.80
     Percentage of units lacking complete plumbing facilities                   1.50
     Percentage of units with 1.01 or more persons per room                     5.10
                                                                              121.90

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                                                                                                  2008
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                               121.9 / 4 = 30.48

     (NOTE: The number of points received in the rating factor would be 30.48)

2.   Leveraging of Other Funds

     Applicants will be awarded points based on the ratio of all other funds committed to the
     project to total project cost and will receive points as follows:

                                                                                   Points
          50% and above                                                                30
          45% - 49%                                                                    25
          40% - 44%                                                                    20
          35% - 39%                                                                    15
          30% - 34%                                                                    10
          25% - 29%                                                                     5
          Below 25%                                                                     0


3.   MBE/WBE

     Applicants will receive points as certified by MDA’s Minority Business Division for minority
     business participation on the last closed out HOME project funded since 2003.

                                                                                   Points

          Applicants 20% or more                                                        50
          Applicants 10% to 19.9%                                                       30
          Applicants 1% to 9.9%                                                         10

4.   Homeownership Training/Counseling                                              Points

          Homeownership Training/Counseling agreement with a
          Training/counseling provider affiliated/certified by HUD                      10

          Detailed Plan for Homeownership Training/Counseling and
          how it will be carried out for the benefit of the Homeowner                     5

          Poor/No Plan                                                                    0

5.   Timely Completion

     Applicants will receive points based on timely completion of previous HOME funded
     projects. Applicants funded prior to 2003 and first time applicants will receive maximum
     points. The number of points received will be determined by the duration of time of
     the contract transmittal letter to the date an acceptable closeout package was
     received by CSD. Points will be awarded on the following basis:




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                                                                                                 -25-
                               Points

12 months – 15 months               50
16 months – 18 months               40
19 months – 20 months               34
21 months – 23 months               28
24 months – 26 months               22
27 months – 29 months               16
30 months – 32 months               10
33 months – 35 months                4
36 months and beyond                 2




                        HOME APPLICATION MANUAL
                                            2008
                                             -26-
HOMEOWNER REHABILITATION
The State of Mississippi will take applications for Homeowner Rehabilitation for the
rehabilitation/reconstruction of single family owner-occupied housing. HOME funds will be
distributed statewide to eligible local units of government using a competitive process.
Applications will be rated and points will be assigned to each rating criterion based on data
provided in the application and consistent with the needs identified in the Consolidated Plan.

AVAILABLE FUNDS/GRANT SIZE
Funds are available in the Homeowner Rehabilitation category in the amount of $5,000,000. All
allocations are contingent upon the availability of funds to the State of Mississippi from the U.S.
Department of Housing and Urban Development (HUD). The maximum grant size for
homeowner rehabilitation is the amount to rehabilitate up to five (5) homes according to HUD’s
maximum allowable amount per home plus administrative costs. The grant amount for
administrative purposes is $28,000 or 8% of the grant amount whichever is less.

SUBMISSION DATE

Applications will be due on May 1, 2008. Applications must be in the Community Services
Division (CSD), 501 N. West Street, 5th Floor, by 4:00 p.m. No applications will be accepted
after 4:00 p.m. on May 1, 2008. MDA’s time clock on the 5 th Floor will be the clock used for
meeting the application submission deadline.

THRESHOLD REQUIREMENTS
An applicant applying for HOME Homeowner Rehabilitation/Reconstruction projects must have
either never been funded or have all funds drawn down on HOME-funded grants and have
submitted an acceptable closeout package by April 1, 2008. An applicant must have no
unresolved audit or monitoring findings, or unresolved investigations by any state or federal
agency as it pertains to any CDBG, HOME or ESG grant. The applicant's required audit(s) must
be received by the Community Services Division at 501 North West Street on or before April 1,
2008. The absence of an audit constitutes an audit finding, unless CSD receives an acceptable
statement from the preparer of the current status of audit completion prior to the April 1, 2008
deadline. Applications that are not consistent with the State's Consolidated Plan will not be
considered for funding. An applicant must comply with the Citizen Participation Requirements
and submit documentation in the application, which indicates a Public Hearing, was held at least
seven (7) days prior to the submission of an application. The Notice for the Public Hearing was
published at least fourteen (14) and no more than twenty (20) days before the Hearing was held.
In order to be considered for funding, applications must receive a minimum of ninety-five (95)
points. The State will not review or rate a project that is determined to be infeasible. The State
reserves the right to make this determination.




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Homeowner Rehabilitation

      For Homeowner Rehabilitation projects, the local unit of government must submit in the
       application proof that the property owner has a fee simple title or a ninety-nine year
       leasehold interest to the property to be rehabilitated/reconstructed. HUD issued a waiver
       on January 4, 2007 for the 99-year lease requirement for individuals who own units on
       Sixteenth Section land.

      Homeowner Rehabilitation applications must include a current color photograph of each
       house including the front and back of each unit and the health and safety hazards with
       street address and name noted on each photograph. If street numbers are not available,
       a narrative location must be provided with the photographs. Upon completion of
       rehabilitation/reconstruction, a new photograph and the tax assessment value must be
       submitted to CSD.

      Grant recipients must include with their Homeowner rehabilitation/reconstruction
       applications, a detailed cost estimate on each house to be rehabilitated/reconstructed,
       listing the items to be addressed.

      In order for a unit to qualify for rehabilitation, at least 3 of the health and safety hazards
       must be addressed and units must be post 1978 housing. If a unit addresses all 5 of the
       health and safety hazards, reconstruction must occur.

      The applicant must address energy efficiency features in rehabilitation of the unit. The
       application must contain the items that will be addressed.

      In the Site Concentration rating factor for Homeowner Rehabilitation, towns and cities with
        a population of 3500 or less will receive maximum points, as well as counties.

      For Homeowner rehabilitation/reconstruction projects, proof of gross income verified within
        the past 60 days must be submitted in the application. Income projected over the next 12
        months is used to determine income eligibility.

   For Homeowner rehabilitation/reconstruction projects, the property submitted in the
   application must be the principal residence of the homeowner. Proof that the property owner
   has a fee simple title or a ninety-nine year leasehold interest to the property and proof of 12
   consecutive month’s occupancy (i.e. electric bill) must be submitted in the
   application. Failure to submit this information constitutes an incomplete application.

STANDARDS
Any housing unit for which HOME funds are used must meet, at a minimum, Section 8 Housing
Quality Standards, International Residential Code by the International Code Council (ICC), and
the current edition of the Model Energy Code published by the Council of American Building
Officials.



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                                                                                                    -28-
SELECTION PROCESS
The State has designed specific selection criteria that will be used to objectively rate the
applications. Each applicant will be rated against each other within each category with the ones
receiving the highest points being funded. The State may contact applicants for clarification of
the information presented in the application, but no applicant may submit additional information
after May 1, 2008, that may affect the rating of the project. Funding decisions will be based on
the scores attained, with the applicants with the highest scores being funded until funds are
exhausted. In the event there is a tie, the State will use the highest percentage of substandard
housing units in the applicant’s locale. If a second tie-breaker is needed, the per capita income
for the applicant’s locale will be considered. If an additional tie-breaker is needed, the highest
unemployment rate for the month prior to the application due date will be considered.

APPLICATION RATING FACTORS
Homeowner Rehabilitation

The rating factors and maximum points for the 2008 Homeowner Rehabilitation Category are as
follows:

                                                                                      Points
        1.   Determination of Need                              Derived from census data
        2.   Health and Safety Hazards                                                35
        3.   MBE/WBE                                                                  50
        4.   Site Concentration                                                       15
        5.   Timely Completion                                                        50

Explanation of Rating Factors

1.   Determination of Need

     The State will review each applicant's determination of need based on rankings for
     percentage of families below poverty, per capita income, units lacking complete plumbing
     facilities, and units with 1.01 or more persons per room. The State will review each
     applicant's source documentation to verify the information submitted. Points received will
     be averaged to determine the points awarded under Determination of Need. Applicants
     must submit 1) a printed copy of the information obtained from the website which must
     include the website address 2) a census tract map to identify location of project.
     Applications that do not include legible source documentation will not be considered.

                                                                             Points
     Percentage of persons below poverty level                               _____
     $15,853  applicant’s per capita income x 100                           _____
     Percentage of units lacking complete plumbing facilities                _____
     Percentage of units with 1.01 or more persons per room                  _____
                                                                       Total _____

     Total points _____ / 4 = _____ (points received in this rating factor)


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                                                                                                  2008
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     Example:

     Percentage of persons below poverty level                               19.5
     Percentage of per capita income that falls below $15,853                95.8
     Percentage of units lacking complete plumbing facilities                 1.5
     Percentage of units with 1.01 or more persons per room                   5.1

                                                               121.9 / 4 = 30.48

     (NOTE: The number of points received in the rating factor would be 30.48)

2.   Health and Safety Hazards

     Applications that address items in a unit which pose a threat to the recipient and structural
     integrity of the unit (i.e. electrical wiring system, plumbing, heating equipment, foundation,
     and roof) will be awarded points on the following basis:

                                                                                    Points
             100% of units meet five deficiencies                                       35
             80%-99% of units meet five deficiencies                                    30
             60%-79% of units meet five deficiencies                                    25
             40%-59% of units meet five deficiencies                                    15
             20%-39% of units meet five deficiencies                                    10
             Below 20% of units meet five deficiencies                                   5

     In order for a unit to qualify for rehabilitation, at least 3 of the health and safety hazards
     must be addressed and units must be post 1978. If a unit addresses all 5 of the health and
     safety hazards, reconstruction must occur.

     Photographs must be labeled with the name of the beneficiary and the address of the
     property. Photographs of the front and back of each unit along with photographs of each
     deficiency addressed must be submitted with the application.

     When monitored if items stated in the application have not been addressed, the application
     will be re-rated on actual accomplishments.

3.   MBE/WBE

     Applicants will receive points as certified by MDA’s Minority & Small Business
     Development Division for minority business participation on the last closed out HOME
     project funded since 2003.
                                                                                  Points

          Applicants 20% or more                                                         50
          Applicants 10% to 19.9%                                                        30
          Applicants 1% to 9.9%                                                          10




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4.   Site Concentration

     An applicant that proposes to address substandard units within close proximity will receive
     points for a concentrated housing approach. Municipalities with population of 3500 or less
     and counties will receive maximum points. All other applicants will receive the following:

                                                                                  Points

          Five or more houses in a concentrated area                                   15
          Four houses in a concentrated area                                           10
          Three houses or less in a concentrated area                                   5

5.   Timely Completion

     Applicants will receive points based on timely completion of previous HOME funded
     projects. The number of points received will be determined by the duration of time
     from the date of the contract transmittal letter to the date an acceptable closeout
     package was received by CSD. Points will be awarded on the following basis:

                                                                                  Points

          12 months – 15 months                                                        50
          16 months – 18 months                                                        40
          18 months – 20 months                                                        34
          21 months – 23 months                                                        28
          24 months – 26 months                                                        22
          27 months – 29 months                                                        16
          30 months – 32 months                                                        10
          33 months – 35 months                                                         4
          36 months and beyond                                                          2

     Any applicant with unresolved audit or monitoring findings or concerns will not be
     considered.




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COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO)
The State will use a competitive process to distribute HOME funds statewide to eligible CHDOs.
The State will rate all applications and assign points to each rating criterion based on the data
provided in the application and consistent with the Consolidated Plan.

HOME CHDO funds must be invested in housing that is owned, developed or sponsored by a
CHDO to include New Construction multi-family rental units or homebuyer assistance. CHDOs
submitting a homebuyer assistance application in the CHDO set-aside, that application will be
rated using the Homebuyer Assistance rating factors (see Homebuyer Assistance Section). All
Homebuyer Assistance requirements i.e., selection criteria, threshold, maximum and minimum
grant sizes, will apply to CHDOs. CHDOs submit the Homebuyer Assistance application that is
used by local units of government. CHDOs will be rated against other CHDOs applying for
Homebuyer Assistance funds.

CHDO’s must have site control to be eligible for the homebuyer assistance category.

The State will have written agreements with CHDOs in accordance with 24 CFR 92.504(c),
obligating them to meet all HOME requirements and detailing their use of funds, activities,
policies for establishing management control of projects, and other provisions required for
written agreements in the HOME regulations.

CHDO new construction projects must have a local market survey prepared within the last 12
months (all HOME funded projects through 2007 must be taken into consideration),
substantiating a need for the specified number of units shown in the application, plus 50%.

AVAILABLE FUNDS/GRANT SIZE
The State of Mississippi will reserve 15% of the total estimated HOME allocation or $2,103,395
for CHDOs as defined at 24 CFR 92.2. This allocation is contingent upon the availability of
funds to the State of Mississippi from the U. S. Department of Housing and Urban Development.
Priority will be given to CHDO projects serving the Hurricane Katrina affected counties of
Hancock, Harrison (except those located in the Consortium), Jackson, Pearl River, Stone and
George. Priority will also be given to CHDO projects in the Mississippi Delta.

The maximum and minimum grant sizes for CHDO projects are $750,000 and $250,000,
respectively for New Construction.

The maximum and minimum grant sizes for CHDO projects are $250,000 and $100,000,
respectively for Homebuyer Assistance.

SUBMISSION DATE

Applications will be due on May 1, 2008. Applications must be in the Community Services
Division (CSD), 501 N. West Street, 5th Floor, by 4:00 p.m. No applications will be accepted
after 4:00 p.m. on May 1, 2008. MDA’s time clock on the 5 th Floor will be the clock used for
meeting the application submission deadline.


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THRESHOLD REQUIREMENTS
An applicant applying for CHDO New Construction multi-family rental units projects must have
either never been funded or have all funds drawn down on HOME-funded grants and have
submitted an acceptable closeout package on or before
April 1, 2008. An applicant must have no unresolved audit or monitoring findings, or unresolved
investigations by any state or federal agency as it pertains to any CDBG, HOME or ESG grant.
The applicant's required audit(s) must be received by the Community Services Division at 501
North West Street on or before April 1, 2008. The absence of an audit constitutes an audit
finding, unless CSD receives an acceptable statement from the preparer of the current status of
audit completion prior to the April 1, 2008 deadline. Applications that are not consistent with
the State's Consolidated Plan will not be considered for funding. An applicant must comply with
the Citizen Participation Requirements and submit documentation in the application that
indicates a Public Hearing was held at least seven (7) days prior to the submission of an
application. The Notice for the Public Hearing was published at least fourteen (14) and no more
than twenty (20) days before the Hearing was held. In order to be considered for funding,
applications must receive a minimum of 100 points. Applications from CHDOs must include a
letter from the Mississippi Development Authority re-certifying the organization as a CHDO. The
State will not review or rate a project that is determined to be infeasible. The State reserves the
right to make this determination.

Community Housing Development Organizations (CHDOs)

      A non-profit organization, designated as a CHDO, is not considered an eligible CHDO
       unless the organization has completed the annual re-certification by CSD. The State will
       certify non-profit organizations as CHDO’s on an as needed basis. A non-profit
       organization seeking certification as a CHDO must demonstrate to the State one year of
       housing related experience. The State reserves the right to determine if the housing
       experience is adequate for certification.

      MDA can require a CHDO to hire an administrator to carry out HOME activities 1) if the
       CHDO has never been funded; or 2) if MDA determines that the CHDO does not have
       adequate capacity or experience to administer the HOME project.

      The President and Treasurer of the Board of Directors of CHDOs must have a surety
       bonding minimum of $75,000. If funded, the CHDO is required to increase the surety
       bond to $150,000 for each principal.

      In order for an application submitted by a CHDO to be considered for the 15% set-aside,
        the CHDO must have an active role in the project as developer, owner, or sponsor. An
        application that does not clearly set forth the CHDOs role as owner, sponsor, or
        developer will not be considered for funding.

      When submitting an application, CHDOs are not allowed to include another CHDO as the
       Developer, Owner, Sponsor or Manager of the proposed project

      CHDOs and non-profit organizations seeking or certification or recertification must
       demonstrate to the State its capacity to carry out HOME assisted housing activities.
       Evidence of capacity includes an established CHDO or non-profit organization and
       should include evidence of a permanent place of conducting business. The State

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      reserves the right to determine if the CHDO or non-profit organization has the capacity to
      carry out HOME assisted housing activities.

     A local unit of government or a CHDO (15% set-aside) may submit only one application
      for the 2008 funding round.

     CHDO applications that require leveraging must submit a letter of support and availability
      of funding from local, private, or public source(s). Documentation of leveraging funds
      must be submitted prior to release of grant funds.

     In the event the original owner of a New Construction/Substantial Rehabilitation project
      sells the property, all original requirements must be transferred to the new owner and
      documentation must be submitted to CSD for approval based on deed restriction.
      Failure to submit the required information to CSD may result in the repayment of
      grant funds by the grant recipient.

CHDO New Construction of Multi-Family Rental Units

     New Construction applications must include a 20-year proforma showing how the project
      will operate and a schedule of income and operating expenses. MDA does not require
      applicants to use set percentages on vacancy rate increases, projected rental and other
      related income increases, and operating expense growth rates. However, the applicant
      is required to use the percentages set forth in accordance with the source(s) from which
      other funds committed to the project will be obtained (e.g.; Low Income Housing Tax
      Credits, Affordable Housing Program, etc.)

     In cases where an applicant has received other governmental assistance prior to
      applying to the HOME program, the HOME funds will be considered as gap financing for
      the project. In that instance, a subsidy layering review will be performed by MDA to
      determine the amount of HOME funds needed to insure that no more subsidy is invested
      than is necessary.

     If at any time there are changes from the financial commitment proposed in the
      application, the grant recipient is required to submit a revised proforma disclosing any
      changes to the original debt service projections. If the revisions render the project
      infeasible, MDA will terminate the grant commitment.

     New Construction applications must include evidence of site control extending seven
      months beyond the application deadline and proper zoning.

     New Construction applications must include a management agreement from a qualified
      managing agent extending at least three years after project completion or have the
      capacity to manage the units themselves provided they own the units.

     New Construction applications must include evidence of compliance with the Home
      program affordability requirements. Each project shall have a "Land Use Restriction
      Document" recorded in the Chancery Clerk’s office of the county in which the project is
      located. The "Document" shall be recorded immediately after the Deed to the land is
      recorded and prior to any mortgages. This document must be submitted to CSD. All
      affordability requirements must be passed to the owner of the project.


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      In the event the original owner of the project sells the property all original requirements
       must be transferred to the new owner and documentation must be submitted to CSD for
       approval based on deed restriction. Failure to submit the required information to CSD
       may result in the repayment of grant funds by the grant recipient.

STANDARDS
Any housing unit for which HOME funds are used for newly constructed projects must meet
local codes, rehabilitation standards, zoning ordinances, and the standards set forth in the
Section 8 Housing Quality Standards (HQS). Newly constructed housing must meet the current
Model Energy Code published by the Council of American Building Officials and the
International Residential Code by the International Code Council (ICC).

SUBMISSION DATE
Applications will be due on May 1, 2008. Applications must be in the Community Services
Division (CSD), 501 N. West Street, 5th Floor, by 4:00 p.m. No applications will be accepted
after 4:00 p.m. on May 1, 2008. MDA’s time clock on the 5 th Floor will be the clock used for
meeting the application submission deadline.

SELECTION PROCESS
The State has designed specific selection criteria that will be used to objectively rate the
applications. Each applicant will be rated against each other with the ones receiving the highest
points being funded. The State may contact applicants for clarification of the information
presented in the application, but no applicant may submit additional information after May 1,
2008, that may affect the rating of the project. Funding decisions will be based on the scores
attained, with the applicants with the highest scores being funded until funds are exhausted. In
the event there is a tie, the State will use the highest percentage of substandard housing units in
the applicants’ locale. If a second tie breaker is needed, the per capita income for the
applicants’ locale will be considered. If an additional tie breaker is needed, the lowest
unemployment rate for the month prior to the application due date will be considered.




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APPLICATION RATING FACTORS
CHDO New Construction of Multi-Family Rental Units

The rating factors and maximum points for the 2008 New Construction/Substantial
Rehabilitation Category are as follows:
                                                                               Points

     1.   Determination of Need                                 Derived from census data
     2.   Site Plan Design                                                            30
     3.   Leveraging of Other Funds                                                   30
     4.   MBE/WBE                                                                     50
     5.   Timely Completion                                                           50
     6.   Counseling Program                                                          10
     7.   Site Selection                                                               0

EXPLANATION OF RATING FACTORS

1.   Determination of Need

     The State will review each applicant's determination of need based on Rankings for
     percentage of families below poverty, per capita income, units lacking complete plumbing
     facilities, and units with 1.01 or more persons per room. The State will review each
     applicant's source documentation to verify the information submitted. Points received will
     be averaged to determine the points awarded under Determination of Need. Applicants
     must submit 1) a printed copy of the information obtained from the website which must
     include the website address 2) a census tract map to identify location of project.
     Applications that do not include legible source documentation will not be considered.

                                                                              Points
     Percentage of persons below poverty level
     $15,853  applicant’s per capita income x 100
     Percentage of units lacking complete plumbing facilities
     Percentage of units with 1.01 or more persons per room
                                                                      Total

     Total points       /4=         (points received in this rating factor)
     Example:
     Percentage of persons below poverty level                                19.5
     Percentage of per capita income that falls below $15,853                 95.8
     Percentage of units lacking complete plumbing facilities                  1.5
     Percentage of units with 1.01 or more persons per room                    5.1
                                                                 121.9 / 4 = 30.48

     (NOTE: The number of points received in the rating factor would be 30.48)




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2.   Site Plan Design

     To receive the following points the application must include a legible site plan design for
     one story dwellings drawn to the specific location which indicates the items listed below:

                                                                                     Points

          Washer/dryer connections in living area side-by-side                              5
          Brick veneer/vinyl fascia/maintenance free                                        5
          Yard space readily accessible to each unit                                        4
          Minimum of two parking spaces per unit                                            4
          Sidewalks                                                                         4
          Adequate play area (example - tot lot, basketball courts)                         3
          Storage area for each unit under roof                                             3
          Landscaping                                                                       2

     Note:   The project developer must certify that the stated activities will be completed.
             During monitoring if it is found that activities carried out are not the same activities
             as described in the application, that project may be terminated or a unit(s) may be
             disqualified and funds expended on that project repaid to the State.

3.   Leveraging of Other Funds

     Applicants will be awarded points based on the ratio of all other funds committed to the
     project to total project costs and will receive points as follows:

                                                                                     Points

          50% and above                                                                   30
          45% - 49%                                                                       25
          40% - 44%                                                                       20
          35% - 39%                                                                       15
          25% - 29%                                                                        5
          Below 25%                                                                        0

4.   MBE/WBE

     Applicants will receive points as certified by MDA’s Minority & Small Business
     Development Division for minority business participation on the last closed out HOME
     project funded since 2003.
                                                                                  Points

          Applicants 20% or more                                                          30
          Applicants 10% to 19.9%                                                         10
          Applicants 1% to 9.9%                                                            0




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5.   Timely Completion

     Applicants will receive points based on timely completion of previous HOME funded
     projects. Applicants funded prior to 2003 and first time applicants will receive maximum
     points. The number of points received will be determined by the duration of time
     from the date of the contract transmittal letter to the date on acceptable closeout
     package was received by CSD. Points will be awarded on the following basis:

                                                                                       Points

          12 months – 15 months                                                             50
          16 months – 18 months                                                             40
          19 months – 20 months                                                             34
          21 months – 23 months                                                             28
          24 months – 26 months                                                             22
          27 months – 29 months                                                             16
          30 months – 32 months                                                             10
          33 months – 35 months                                                              4
          36 months and beyond                                                               2

6.   Counseling Program                                                                 Points

     The application must include a well-written tenant counseling program.
     NOTE: In order to receive points, documentation from local officials and               10
     unit managers of their willingness to carry out this plan must be submitted.

7.   Site Selection (Possible Point Reduction)                                          Points

     A maximum of ten (10) points will be deducted from the applicant's score
     if the site visit reveals any detrimental characteristics on, or adjacent to,
     the site. These include but are not limited to, utility substations, landfills,
     railroad tracks, major highways, industrial plants, topography inconsistent
     with proposed use, etc.                                                           minus 10

 8. Thirty points will be added to the applicant’s score if the project targets
    residents of affected counties of Hancock, Harrison (except those
    included in the Consortium), Jackson, Pearl River, Stone, and George.
    The same thirty points will be added to the applicant’s score if the
    Project targets residents of the Mississippi Delta.                         add 30




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DISABLED HOUSING INITIATIVE
The Mississippi Development Authority, Community Services Division (CSD) will provide
$750,000 of HOME funds through the Mississippi Home Corporation to provide funding for the
Institute for Disability Studies - Mississippi Home of Your Own Alliance program (HOYO).

The purpose of the Disabled Housing Initiative is to assist disabled persons into
homeownership. The CSD is partnering in this initiative with Lending Institutions, Mississippi
Home Corporation, University of Southern Mississippi, Office of Vocational Rehabilitation, the
Developmental Disabilities Council, Real Estate Partners, and several nonprofit groups working
with disabled individuals. For additional information, you may contact Ms. Cassie Hicks at (601)
266-5163 or 1-888-671-0051.

The program is subject to the HOME Homebuyers Assistance guidelines and procedures.

AVAILABLE FUNDS
Funds are available in the Disabled Housing Initiative category in the amount of $750,000.




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AMERICAN DREAM DOWNPAYMENT INITIATIVE (ADDI)
The State will accept applications for the American Dream Down payment Initiative (ADDI) from
local units of government and CHDOs using a competitive process to distribute ADDI funds
statewide. The State has designed specific selection criteria that will be used to objectively rate
the applications. The State will rate all applications and assign points to each rating criterion
based on the data provided in the application and consistent with the needs identified in the
Consolidated Plan. Funding decisions will be based on the scores attained. Applications will be
accepted for down payment assistance in the purchase of single-family units for first-time
homebuyers. HUD allows rehabilitation of housing acquired with ADDI assistance; however, the
State has chosen not to allow this as an eligible activity.

CHDOs submitting an application will use this criterion and will use the American Dream Down
payment Initiative (ADDI) application.

OBJECTIVE
The State of Mississippi’s Five Year Consolidated Plan (2005-2009) establishes an objective to
support homeownership opportunities to low and very low-income persons. The funds made
available through the ADDI program will allow the State to support this objective.

DISTRIBUTION PROCESS
The HOME funds will be distributed in accordance with the State's Consolidated Plan. The
State intends to distribute HOME funds statewide to eligible local applicants using a competitive
process.

AVAILABLE FUNDS
If ADDI funds are appropriated by Congress, the amount available in the FY 2008 American
Dream Down payment Initiative (ADDI) category will be $170,978. The State will accept
competitive applications for the distribution of these funds.

GRANT SIZE
The maximum and minimum grant sizes for ADDI are $50,000 and $25,000, respectively for
eligible applicants. The maximum amount of ADDI funds available to individual beneficiaries for
down payment assistance is $5,000. These funds may be used in conjunction with HOME
funds.

ADMINISTRATIVE FUNDS
There will be no administrative funds available for the ADDI program.




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THRESHOLD REQUIREMENTS
An applicant applying for ADDI funds must have either no ongoing HOME grant or have an on-
going HOME Homebuyer Assistance grant with 50% of HOME funds expended within eighteen
(18) months of the HOME project contract effective date. An applicant must have no unresolved
audit or monitoring findings on previously funded projects, or unresolved investigations by any
state or federal agency pertaining to any CDBG, HOME or ESG grant. The applicant's required
audit(s) must have been received by the Community Services Division at 501 North West Street
on or before April 1, 2008. The absence of an audit constitutes an audit finding, unless CSD
receives an acceptable statement from the preparer of the current status of audit completion
prior to the April 1,, 2008 deadline. Applications that are not consistent with the State's
Consolidated Plan will not be considered for funding. An applicant must comply with the Citizen
Participation Requirements, which indicate a Public Hearing must be held at least seven (7)
days prior to the submission of an application. The Notice for the Public Hearing must be
published at least fourteen (14) days and no more than twenty (20) days before the Hearing is to
be held. If a project does not propose to use the down payment assistance to purchase new
single family units, the application must contain documentation of existing affordable housing,
i.e., option on the number of houses proposed to purchase, multi-listing service information,
local real estate agency has sold a certain number of units documenting the turnover rate
(through sales contract). The State will not review or rate a project that is determined to be
infeasible. The State reserves the right to make this determination.

ELIGIBLE APPLICANTS
All units of local government and CHDOs not designated by HUD as local participating
jurisdictions are eligible to apply. The City of Jackson, an Entitlement City, and a Consortium
that includes Biloxi, Gulfport and Harrison County are receiving ADDI funding directly from HUD
and will not be eligible under the State ADDI Program. No local government or CHDO may
apply for ADDI funding while having an ongoing ADDI project.

ELIGIBLE ACTIVITIES
ADDI funds may be used for down payment assistance towards the purchase of single family
housing by low-income families who are first-time homebuyers.

INELIGIBLE ACTIVITIES
The State will not allow the carrying out of rehabilitation activities with ADDI funds.

FIRST-TIME HOMEBUYER
A first-time homebuyer means an individual and his or her spouse who have not owned a home
during the three-year period prior to purchase of a home with ADDI assistance.

STANDARDS
Any housing unit for which HOME funds are used for down payment assistance for newly
constructed or existing single family units to be acquired must meet local codes, zoning
ordinances and the standards set forth in the Section 8 Housing Quality Standards (HQS) and

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the International Residential Code by the International Code Council (ICC) and the current
Model Energy Code published by the Council of American Building Officials.

SUBMISSION DATE
Applications will be due on May 1, 2008. Applications must be in the Community Services
Division (CSD), 501 N. West Street, 5th Floor, by 4:00 p.m. No applications will be accepted
after 4:00 p.m. on May 1, 2008. MDA’s time clock on the 5 th Floor will be the clock used for
meeting the application submission deadline.

SELECTION PROCESS
The State has designed specific selection criteria that will be used to objectively rate ADDI
applications. Each applicant meeting threshold requirements will be rated. Funding decisions
will be based on the scores attained with applicants receiving the highest scores being funded
until funds are exhausted. In the event there is a tie, the highest percentage of substandard
housing units in the applicants’ locale will serve as the first tiebreaker. If a second tiebreaker is
needed, the per capita income for the applicant’s locale will be considered. If a third tiebreaker
is needed, the highest unemployment rate for the month before the application due date will be
considered. The State may contact applicants for clarification of the information presented in
the application, but no applicant may submit additional information after May 1, 2008, that may
affect the rating of the project.

APPLICATION RATING FACTORS
American Dream Down payment Initiative (ADDI)

The rating factors and maximum points for the American Dream Down payment Initiative (ADDI)
Category are:
                                                                            Points

      1.   Determination of Need                                Derived from census data
      2.   Leveraging of Other Funds                                                 30
      3.   MBE/WBE                                                                   30
      4.   Pre-Counseling for Homeownership                                          50
      5.   Post-Counseling for Homeownership                                          50
      6.   Timely Completion                                                         70


EXPLANATION OF RATING FACTORS

1.   Determination of Need

      The State will assign points in this category based on the percentage of renter occupied
      housing units as compared to the total number of housing units in a jurisdiction, according
      to the 2000 Census. Local jurisdiction will be awarded a point score equal to their
      percentage of renter occupied housing units. CHDOs will receive points based on either
      the smallest jurisdiction in which a project development occurs (as in the location of a
      subdivision’s development) or an average of all county percentages within their certified
      service area, when purchases may be throughout their designated service area.

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         Percentages will be utilized as the actual points awarded. See examples below:
Raymond, Mississippi
Highlights from the Census 2000 Demographic Profiles:
General Characteristics - show more >>          Number      Percent      U.S.
 Total housing units                                498       100.0    100.0%
     Occupied housing units                         469        94.2    91.0%
     Owner-occupied housing units                   273        58.2    66.2%
     Renter-occupied housing units                  196        41.8    33.8%
     Vacant housing units                            29          5.8    9.0%




CHDO, Mississippi (with service area of Hinds, Madison, and Rankin Counties)
General Characteristics - show more >>          Number      Percent      U.S.
     Hinds County - Renter-occupied
                                                 32,899        36.1      33.8
     housing units
     Rankin County - Renter-occupied
                                                  9,618        22.9      33.8
     housing units
     Madison County - Renter-occupied
                                                  7,931        29.1      33.8
     housing units
                       Total Percentage                        88.1
                       Average (Divided
                       total percentage by
                                                              29.37
                       the number of
                                                          rounded to
                       Counties to
                                                                29.4
                       determine and round
                       to the tenth)


2.     Leveraging of Other Funds

        Applicants will be awarded points based on the ratio of all other funds committed to the
        project to total project cost and will receive points as follows:




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                                                                                Points
          50% and above                                                             30
          45% - 49%                                                                 25
          40% - 44%                                                                 20
          35% - 39%                                                                 15
          30% - 34%                                                                 10
          25% - 29%                                                                  5
          Below 25%                                                                  0


3.   MBE/WBE

     Applicants will receive points as certified by MDA’s Minority & Small Business
     Development Division for minority business participation on the last closed out HOME
     project funded since 2003.
                                                                                  Points

          Applicants with 20% or more MBE/WBE Participation                         50
          Applicants 10% to 19.9%                                                   30
          Applicants 1% to 9.9%                                                     10
          Less than 1%                                                               0

4.   Pre-Counseling for Homeownership                                           Points

     Detailed Plan & Agreement with a training/counseling provider                 50
     affiliated/certified by HUD

     Detailed Plan for Homeownership Training/Counseling and                       25
     how it will be carried out for the benefit of the Homeowner

     No Plan                                                                         0


5.   Post-Counseling for Homeownership                                           Points

     Plan and Agreement with a training/counseling provider affiliated
     /certified by HUD                                                             50

     Detailed Plan for Post Homeownership Training/Counseling and
     how it will be carried out for the benefit of the Homeowner                   25

     No Plan                                                                         0




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6.   Timely Completion

     Applicants will receive points based on timely completion of previous HOME funded
     projects. Applicants funded prior to 2003 and first time applicants will receive maximum
     points. The number of points received will be determined by the duration of time
     from the date of the contract transmittal letter to the date on acceptable closeout
     package was received by CSD. Points will be awarded on the following basis:

                                                                                 Points

          Within 18 months                                                           70
          19 months – 24 months                                                      50
          25 months – 36 months                                                      10
          More than 36 months                                                         0




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