NSP2 Competitive Application
A. Application Forms
Executed: SF-424, Application for Federal
Completed SF-424 Supplement, Survey on EO
Program Summary or Application Overview
Application ID # 716178674
South Carolina State Housing Finance
and Development Authority
300-C Outlet Point Blvd
Columbia, SC 29210
Nancy Fairley, Neighborhood Stabilization Program Director
Phone: (803) 896-9343
Fax: (803) 551-4883
NSP Contact Information: Application ID # 716178674
Nancy Fairley, Director - NSP/HOME
SC State Housing Finance & Development Authority
300-C Outlet Pointe Blvd.
Columbia, SC 29210
Phone: (803) 896-9343
Fax: (803) 551-4883
The South Carolina State Housing Finance and Development Authority (The Authority), in a
coordinated effort with local governments and nonprofits is requesting funds made available
through the Neighborhood Stabilization Program (NSP2) funds. South Carolina, with one of
the nation’s highest unemployment rates, has suffered from the economic downturn, with a
high percentage of foreclosures and vacant properties becoming a long term threat to many
The Authority conducted an analysis using quality data to identify the state’s greatest areas of
need. Five counties were identified: Charleston, Greenville, Richland, Horry, and Beaufort.
This NSP2 application supports the total request of NSP2 funds in the amount of
$29,413,802.40 for the State of South Carolina by providing clear and concise actions and
results to further the efforts of arresting the negative effects as well as create an economic
stimulus in terms of job creation, job retention, and additional investment/credit.
For more than forty years, the Authority has been developing and implementing strategies to
promote affordable housing in South Carolina that address both the urban centers and rural
areas of the state. In urban centers the Authority and its partners have worked separately and
collectively to preserve existing affordable housing through intervention and renewal as well as
creating new affordable housing for a growing population. Since its inception the Authority’s
mission has been to create quality affordable housing opportunities for the citizens of South
Carolina through developing mutually supportive relations that expand our ability to provide
affordable housing while enhancing the value of investments. The Authority actively seeks
new and innovative ideas to improve affordable housing opportunities, such as the Authority’s
flagship Mortgage Revenue Bond Program which has provided homeownership opportunities
to middle, moderate and low in person in the state for many years. In addition, the Authority
has accepted the responsibility to address the need for strategies to protect and preserve
middle to low income communities and neighborhoods that are affected by blight and
Weak real estate markets have a tremendously negative impact on low to moderate income
households. Homeownership is the primary means for our state’s citizens to build long term
wealth, but in weak housing markets sales prices are too often stagnant and in a state of
decline. Instead of building equity, too many households find themselves in an untenable
position. They cannot sell because prices are too low to allow a successful move, and they
cannot improve their homes because the costs can’t be recaptured. As this realization grew
the Authority needed to find ways to retain and grow this low to moderate middle income strata
of homeowners and taxpayers. We risk communities made up of only the very wealthy and the
very poor without sufficient taxes to deliver the services and maintain their infrastructure. This
perverse cycle can only be broken by re-establishing confidence in the neighborhoods and
strengthening the housing market.
With NSP1 dollars, The Authority along with many other housing providers in the state is
quickly stepping forward to address the hardest hit areas – those on the precipice of decline
that require modest investment to stem decline and build value. Improvements are underway
in the NSP1 neighborhoods. Although we have made strides in affecting the hardest hit areas
in the state we find that NSP2 funds are critical to making these neighborhoods whole. Our
ability to promote and retain the idea of the American Dream of homeownership allows us to
increase the tax revenue hardest hit in urban areas affected by foreclosures and property
vacancies. Based upon a detailed analysis of housing conditions and real estate market data,
a group of “participants” with proven capacity were selected for involvement in the NSP2
program. All of the selected participants were awarded NSP 1 funds and have established
programs and procedures in place which will expedite the investment of NSP 2 dollars into the
local economies of the targeted areas.
Targeted neighborhoods for NSP2 are areas where residents have suffered from education
issues, unemployment, lack of job creation, social issues, competition from more desirable
suburbs, sub-prime mortgages, predatory lending, a declining economy, and lack of credit.
Through the use of NSP2 dollars the Authority seeks the outcome of placing foreclosed and
abandoned properties in the hands of responsible owners who will maintain them in a
responsible manner. NSP1 recipients are experiencing rising competition in the markets from
investors looking to acquire these properties to hold until the market improves. These
investors are purchasing large amounts of foreclosed housing stock with little or no intent to
make the additional investment required to make needed property improvements. In light of the
current state of the neighborhoods being targeted these excessive speculative purchases will
only prolong the instability and decline of these areas. The influx of NSP2 dollars in
combination with the efforts of NSP1 efforts will have the direct result of decreasing the
number of foreclosed properties that will be purchased by these investors.
The Authority and its participants are not limiting their focus to just acquisition and
rehabilitation of foreclosed and abandoned units. The redevelopment of vacant and blighted
properties will also be a focus of NSP2. To increase the impact of NSP dollars, the
participants proposing redevelopment activities in the areas of greatest need have designed a
coordinated reinvestment strategy to revitalize and reconnect these areas back to the healthy
communities of which they were once a part. When the proposed redevelopment of the
identified properties in this application is completed, the positive impact of NSP dollars will be
The establishment of land banks is an additional component to the Authorities strategy to
make the strongest impact possible with NSP2 dollars. Vacant properties are a serious
detriment to urban areas but on the positive side they provide opportunities to facilitate urban
redevelopment. The success of land banking activities proposed will be a powerful tool for
community development in those areas. Land banking foreclosed properties will improve tax
revenues, expand affordable housing opportunities, remove public nuisances, lower crime and
promote economic development. The land banking activities proposed are in alignment with
existing development initiatives and programs underway in these areas. The ultimate goal for
land banking is to restore the properties back into productive use by providing affordable home
ownership and rental housing opportunities.
The final component to our strategy is the demolition of blighted structures in the identified
communities. The demolition of blighted derelict properties that are concentrated in these
areas will have an instant and profound impact on the cosmetic appearance of these
neighborhoods and produce an overall improvement in quality of life for the residents.
Removing these blighted units will be a catalyst to provide opportunities for redevelopment of
these properties and surrounding areas.
The combination of the efforts proposed in this application will result in increased property
values, reduced crime and vagrancy, increased tax revenue, increased home equity values,
increased availability of affordable housing units, decrease in the amount of substandard
housing units, and increased job opportunities for rehabilitation contractors and real estate
As shown in the Authority’s 2008 Investment Report (www.schousing.com) In 2008 the
Authority invested more than $394 million in affordable housing across the state resulting in
approximately $429 million in economic benefits and $202 million in new tax base. The
creation of additional housing gives South Carolina an advantage in attracting investment and
creating jobs. An adequate supply of stable neighborhoods with affordable housing
opportunities is essential for communities to maintain and improve infrastructure. In 2008 the
Authorities investments in affordable housing generated $18,350,103 in state tax revenues and
created a total of 10,410 desperately needed jobs. The generation of additional affordable
housing through the use of NSP 2 is a guaranteed stimulus for attracting additional
investments and economic opportunities to our state.
The application provides the framework for the six factors that demonstrate the need for
additional NSP funds. In factor one the Authority provides 26 census tracts that are hot spots
in the state with regard to foreclosures and vacancies. In addition, to identifying the specific
locations of greatest need the narrative addresses the current market conditions in the state as
well as a comparative analysis of the identified communities effected. Upon review, it cannot
be argued that the most contributing factor is this state’s high unemployment as we are
currently second in the nation. However, daunting this and many other contributing factors
may appear the Authority believes that the plan of attack for addressing these urgent needs
will be successful with NSP 2 units being readily absorbed based on the projected growth of
the states population, especially with a majority of the population growth having incomes at
120% of area median income.
Factor two confirms the Authority’s completion of more than 75 units, as well as demonstrating
the experience with all of the facets of the NSP program. The NSP2 participants include the
City of Greenville, Greenville County Redevelopment Authority, the City of Columbia, Richland
County Government, Community Assistance Providers, Lowcountry Housing Trust, Beaufort
Housing Authority, and Myrtle Beach Housing Authority, for which the Authority has provided
documentation that tells their stories with regard to many years of capacity and demonstrating
their skills with completing projects that include down payment/closing cost, acquisition,
rehabilitation, new construction, demolition and landbanking.
Within factor three is the outlay of the four types of activities that the Authority will participate in
to make the greatest impact in the targeted areas. These include: 1)Acquisition,
Redevelopment and Funding Mechanism; 2) Acquisition and Rehabilitation; 3) Demolition; 4)
Landbanking. The Authority and its participants have carefully provided the strategy to
complete these 228 affordable units to provide those well deserving the opportunity of
homeownership or rental housing.
In factors four through six the Authority addresses leveraging commitments that will be utilized
in addition to the NSP2 funds requested. We address the benefit of the removal of substantial
negative effects in the communities. Energy efficiency improvement and sustainable
development factors are provided in factor 5 along with transit accessibility, green building
standards and re-use of cleared sites. In factor 6 we have demonstrated how the activities
being proposed are consistent with and in alignment with the specific goals outlined in our
consolidated plan for housing and community development.
Experience and proven capacity has given the Authority a unique ability to judge and allocate
where NSP 2 investment is needed most severely in the State and where it will make the
greatest impact. As like other Housing Finance Agencies across the nation, we are partaking
in the unprecedented role of our nation’s economic recovery through investment in affordable
housing opportunities. The addition of the NSP 2 funds requested in this application will allow
the Authority to continue its ongoing efforts to improve the market conditions in the affected
Mapping for Neighborhood Stabilization Program
Beaufort County Charleston County
NSP 1 Target Area
NSP 2 Target Area
Where they Overlap
Horry County Richland County
B. Narrative Statements
Factor 1 – Need & Market Conditions
Factor 2 – Demonstrated Capacity
Factor 3 – Soundness of Approach
Factor 4 – Leveraging, integration, removal of
Factor 5 – Energy efficiency
Factor 6 – Neighborhood Transformation &
Factor 1: Target Geography/Market Conditions/Demand
Need – Extent of the Problem
The state of South Carolina ranks 12th in the nation for having the highest number of vacant
properties (policymap.com). Vacant units are defined by HUD as units with any single or
combination of foreclosure factors which have resulted in a 90 day vacancy of occupancy
(Table 1 2008 Data for Foreclosed and Vacant Properties). After analyzing both the highest
concentrations of foreclosures and vacancies in the state, and considering the current housing
market conditions/contributing factors, and accessing where the greatest impact and/or benefit
NSP2 funds will have, the Authority targeted the hardest hit geographical hot spots which
include 5 regions of the state located in Charleston, Beaufort, Horry, Richland and Greenville
counties. Within these regions, specific census tracts have been identified by the Authority in
Table 1 # of Foreclosed & Vacant Residential Properties in SC
Total 90 day Totals of
Estimated # vacant Foreclosed &
County Foreclosures residential Vacant
Beaufort County 1,178 10,044 11,222
Charleston County 3,175 6,430 9,605
Greenville County 3,529 6,881 10,410
Horry County 3,274 12,755 16,029
Richland County 4,616 6,321 10,937
coordination with invited NSP2 participants, which make up a highly skilled team of local
governments, nonprofits, and public housing agencies. In working with the participants the
Authority has created a plan and strategy to arrest and stabilize the targeted neighborhoods
hardest hit. Included in this application is Appendix 6, a listing of the designated census
tracts, HUD index scores, and the specific neighborhood and communities being targeted. In
the following section the Authority will demonstrate the need for NSP2 funds, along with how
the current market conditions relate to the contributing factors and our efforts to identify what
steps must be taken to arrest further decline, to reconnect neighborhoods and generate
economic opportunities for the state.
The Housing Market
South Carolina’s housing market continues its downward trend which is reflected in the
production sector (including construction and real estate/finance job sectors), the number of
home sales, and a general decline in property values. In the last 12 months, rental
construction activity, as measured by the number of units permitted, has continued to decline
by 34% from the record highs recorded in 2005. Although a decline in permitting exists, new
construction completion held constant creating soft markets and causing absorptions rates for
apartments to fall and vacancy rates to increase, with the highest vacancy rates in Charleston
(11.5%) , Columbia (13.5%), and Greenville (10.1%). In the home sales sector, sales of new
and existing homes weakened. Excessive inventories of both new and existing homes remain
on the market, enough to last an average of 11.5 months for new homes and 9.7 months for
existing homes at the current sales rates. During the peak housing market, from 2004 to 2007,
the real estate market witnessed dramatic increases in home values in a relatively short period
of time; sellers received 97% to 99% of the asking price. Since the end of 2007 however,
sellers have been forced to drop asking prices by nearly 5%. Although some areas have seen
a slight rebound in sales, the number of sales and home sale prices continue to fall throughout
the state. According to the National Association of Realtors the majority of increases in sales
occurred due to strong buyer activity of existing homes in lower price ranges, with median
prices at $135,000, a decrease of 9%, from the median price recorded during 2008 (South
Carolina Realtors Association). Taking into consideration inflation, increased unemployment,
and continued instability in the real estate market, South Carolina anticipates a significant
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increase in home foreclosures and a steady vacancy rate over the next twelve months as
compared to the previous three years. South Carolina realtors reported that 46,900 homes
were sold in the state in 2008, a decline of 14,850, or 24%, from the number sold in 2007.
The number of units sold was down in all reporting areas in the state, with the largest decline
at 31%. (HUD Office of Policy Development and Research: Regional Report 4th Qtr. 2008).
Although the markets are affected by a surplus of units with high vacancies, adjustments must
be made for the high demand that still exists for affordable housing units.
The biggest contributing factor to the increases in high vacancies in rental units,
foreclosures/vacancies in occupied units and excessive inventories of new/existing homes is
the state’s recent job losses and high unemployment. South Carolina’s unemployment rate as
of June 2009, was 12.1% the second highest in the nation. This number does not include the
chronically unemployed or those who have stopped seeking employment. Hundreds of
positions in government, particularly education, have been lost and the construction, service
and retail industries have been decimated. The good news is that as the economy rebounds
there is every reason to believe that these types of jobs will be created again and with the
present use of NSP1 funds and the potential of receiving NSP2 funds it increases our potential
to sustain jobs and create new ones. Traditionally, South Carolina was known as a textile
state, with a high number of manufacturing jobs which have been steadily on the decline, with
most job losses occurring in this sector. Projections from the Bureau of Labor Statistics
indicated that the construction industry represents the highest growth prior to the onset of
current conditions and that by 2012, education and health services will surpass manufacturing
in terms of the largest employment sector. The urban areas account for more than three
times the number of jobs than the rural areas of the state. Although a few jobs have been
gained since 2008, the current market has contributed great losses for the state continuing the
economies downward spiral.
The unemployment rates for the Charleston Metropolitan Area (Charleston County), Myrtle
Beach Metropolitan Area (Horry County), Columbia Metropolitan Area (Richland County),
Greenville Metropolitan Area (Greenville County), and Beaufort County are reflective of the
state’s overall unemployment conditions and ranking. These regions are experiencing the
highest unemployment rates in the state. The sharp increase in the unemployment rate has
directly triggered the onset of a new round of foreclosures that is not expected to crest until
sometime in 2010 for these areas. Table 2 below provides the regions current unemployment
statistics that are compiled by the US Department of Labor / Bureau of Labor Statistics /
Table 2 South Carolina Unemployment Statistics
Year Period labor force employment unemployment unemployment rate
South Carolina 2009 May 2,205,961 1,939,765 266,196 12.10%
Columbia Metro Area 2009 May 382,154 346,961 35,193 9.20%
Greenville Metro 2009 May 327,257 293,498 33,759 10.30%
Myrtle Beach Metro 2009 May 135,297 119,863 15,434 11.40%
Beaufort County 2009 May 63,377 57,990 5,387 8.5%
Source: United States Department of Labor/Bureau of Labor Statistics/www.bls.gov
The targeted census tracts for each area exhibit unique characteristics that contribute to the
foreclosure and abandonment problem we are working to address. The U.S. Census Bureau
indicates the predominant source of employment in the targeted census tracts for Richland
County is the services industry at 14.4% with retail coming in second at 11.1% and public
administration third, at 10.1%. In the metropolitan area covering Charleston, nearly 7,400 non-
farm payroll jobs have been lost since February 2008. While state officials and other interested
groups are developing initiatives to adopt the unemployment insurance reforms necessary to
qualify for federal incentive funding, “nothing has happened yet.” (Heather Boushey. Nayla
Kazzi. Center for American Progress Report: Increased Job Losses in Nearly Every State.
April 2009). In the Greenville region the rise of unemployment was first noted in the 2005
Greenville County Consolidated Plan described as “the result of extensive layoffs in the textile
industry”. Between January 2001 and April 2004, the nation lost 160,400 of 577,300 textile
jobs, and 46% of these job losses occurred in North and South Carolina. According to the
National Council of Textile Organizations, more than 3,900 workers in Greenville County were
impacted by mass layoffs or closures. The Greenville Metro area does not lag far behind the
state’s unemployment percentage which is viewed by county and city governments as the
greatest impact to the change in the economy. In fact, the number of foreclosures in
Greenville County has risen in proportion to the decline of textile and manufacturing jobs. The
primary industries in Horry and Beaufort counties are tourist related. The tourist industry
across South Carolina has become vulnerable demonstrating that the supply of service
accommodations is up 2.5% where demand for these services is down 4.5%. These areas
depend on both business and leisure travel. According to the National Business Travel
Association the downturn in business travel has been due in part to increased teleconferencing
by 75%. The downturn in leisure travel began in 2006-2007 with increased gas prices,
although now the downturn continues due to recent concerns about an unstable economy
especially as it relates to expenditure of disposable income (Travel Research Inc.). Beaufort’s
Accommodation and Food Services account for 18% of the employment followed by Retail
Trade at 16% and Health Care and Social Assistance at 12%. 23% of Horry Counties
employment is based on Accommodation and Food Services, followed by Retail Trade (with 18
percent), and Construction (with 9 percent). Horry faces bigger challenges than most areas
because work is still somewhat seasonal in this area and the largest losses in employment are
those that in the past decade have experienced greater increases in job creation. The largest
major industry sector for Charleston County is Health Care and Social Assistance making up
14% of the areas employment followed closely by Retail Trade and Accommodation and Food
Servicers at 13% and 12% respectively. In light of the continued decline of the current
economic conditions, these areas are expected to continue to lose jobs as the unemployment
rate is expected to rise through the first of 2010. This trend produces an increased demand for
affordable housing options for all ages and income segments.
Population and Households
South Carolina’s estimated population as of December 1, 2008 was 4.4 million. The state’s
population has increased since 2000 with an 11% increase well over the nation’s average by
almost a 4% gain (US Census Data 2000). 12% of those increases in population were based
on net migrations into the state over same period of time. Over the next 3 year period by 2012
it is estimated the population will increase by 4,579,100. Table 3 shows the state and targeted
areas population and components of population change in the Housing Market for the same
Table 3 Population and Projections
April 1, Percent Percent
July 1, Population July 1, July 1, July 1,
2000 Change in Change in
2008 Change 2010 2011 2012
Estimates Population Population
Estimate 2000-2008 Projection Projection Projection
Base 2000-2008 2010-2012
South Carolina 4,479,800 4,011,809 467,991 11.7 4,486,740 4,532,900 4,579,100 2.05
Beaufort County 150,415 120,948 29,467 24.4 152,020 154,850 157,700 3.7
Charleston County 348,046 309,974 38,072 12.3 339,140 340,900 342,650 1.03
Horry County 257,380 196,660 60,720 30.9 251,390 256,260 261,140 3.84
Richland County 364,001 320,779 43,222 13.5 354,380 357,220 360,050 1.59
Greenville County 438,119 379,612 58,507 15.4 431,630 436,470 441,310 2.24
When working with the estimated population for South Carolina it is important to consider all
growth potential for the state by measuring the wealth of personal income which is commonly
referred to as per capita income. As South
Carolina’s population has grown, so has its Table 4: South Carolina Department of Commerce
citizen’s wealth, seeing a steady increase. In Year Per Capatia
comparison with other states, however, South Income
Carolina still ranks 47th, well below the US Nation 2007 $38,611
nation’s per capita income of $38,611. The South Carolina 2007 $31,611
Authority has provided table 4, a listing of the Charleston 2007 $38,702
targeted areas income levels which in Beaufort 2007 $45,427
comparison are higher than that of the overall Greenville 2007 $35,076
states with the exception of Horry County. Richland 2007 $34,434
Income has a direct effect on housing and is a Horry 2007 $28,307
determining factor in whether or not a household is living at or below the poverty level.
Although poverty rates in South Carolina have been declining, we still continue to have 14.1%
percent of the population living below the poverty level as compared to the nation’s 12.4%.
At the center of our current economic storm is the tightening of credit in reaction to the
extremely lax credit underwriting guidelines that have been utilized in the past decade. Much
like other states and the national front, South Carolina’s credit market has stiffened. To a great
extent, changes in how credit is now handled is due to our recent history when homes were
financed through high risk mortgage programs like sub-prime loans, interest only loans, or
adjustable rate loans. These types of mortgages created unstable risk for many lenders which
in turn created many of the housing market conditions that currently exist. Many builders and
developers are unable to secure construction loans, which affects the ability to continue
revitalization in areas targeted by of local governments. This has been clearly evident within
the Authority’s Low Income Housing Tax Credits program (LIHTC), with developers being
unable to secure construction loans or syndication for projects. The resulting effect has been
layoffs, furloughs and Reduction- in-Workforce (RIF) seen in not only the banking industry,
professional real estate industry but in construction labor as well. With fewer funds going
toward goods and services, local businesses are struggling and are unable to obtain or support
new business loans causing more unemployment increases. With this local and state
economic downturn, all sectors—homeowners, renters, business owners, etc -- are
overextending their personal and business credit which in turn leads to lowered FICO scores
making all a poorer credit risk. This vicious cycle is anticipated to continue for at least the
next 12 to 24 months, as predicted by leading national financial advisors.
The decline in the market, employment conditions and limited or no availability of credit are key
contributing factors, and have had a profound impact on neighborhoods struggling to maintain
viability, making it even harder for housing providers working to support affordable housing.
Housing Market Trends
The forecasted increased demand for affordable housing over the next three years is derived
from population growth, the number of cost-overburdened households and the number of
foreclosed/ vacant housing units in these targeted areas. Over the next 3 years if these
targeted census tracts do not receive NSP2 funding for foreclosed and/or abandoned
properties, the decline of these targeted communities will continue and potentially accelerate.
The current economy and high unemployment rates have made it difficult for many families to
not only obtain affordable housing but to maintain the homes they currently own. This problem
is clearly evident in the targeted areas where the high level of foreclosures has led to
abandonment and derelict properties. A single foreclosed or abandoned property has a
significant impact on surrounding homes. Conservative estimates by the Center for
Responsible Lending report that homes in foreclosure have a detrimental impact on homes up
to 8/10ths of a mile away in the surrounding neighborhoods. Where foreclosures are clustered
in the same neighborhoods, census tracts, or even across a small community, these multiple
foreclosures can cause instability in the local real estate market. Clustered foreclosures tend
to cause home prices to fall and homes remain on the market for extended periods of time. As
seen in this example from one of our targeted counties: in Charleston approximately 35,000
homes are negatively impacted each year at an average loss in equity of $2,005 per home. In
Charleston alone, foreclosures have caused a loss in home equity and tax base of nearly $70
million each year for the past three years. Funds must be invested into these targeted census
tracts to preserve and stabilize these areas in order to attract households and businesses back
into these specific markets. If funding is not received, these targeted areas will experience
further abandonment, increased number of foreclosures, increased crime, and further
decreases in property values. All of these factors could lead to permanent deterioration to the
social, educational and psychological weakening of these communities.
Household Characteristics: Income, Cost-burdened
HUD defines middle an income household as persons receiving income at 120% of area
median income (AMI), also described by many as “work force.” Low and moderate income
households are defined as those households with incomes below 80% AMI and very low
income are those whose income are at or below 50% AMI. Many residents in the targeted
census tracts are underemployed in low-wage, low-skill jobs and are cost-burdened –
spending a large portion of their incomes on housing costs means that they must reduce
spending on other critical needs such as health care and food. This is particularly true for
elderly households, where nearly half of elderly renters and one-fourth of elderly homeowners
spent more than 30% of their income on housing costs. According to the USRDA Economic
Research service, South Carolina has the fifth highest “Food Insecurity” in South Carolina.
Food security is defined as households that had access, at all times, to enough food for an
active, healthy life for all household members. Decreased income results directly in
foreclosures and home vacancies
Table 5 contains data for each of the targeted regions from the National Low Income Housing
Coalition that shows how many hours a person must work per week (based on 52 weeks per
year) to pay for fair market rent for a two bedroom unit. This plainly demonstrates how persons
at 120% of AMI in these areas are cost over burdened.
Table 5 Rent and Income in County Areas
FMR Growth 2-BR Housing Area Median Minimum Minimum
Area 2-BR FMR 2000-2009 Wage Income Wage Wage
Richland $ 710.00 29.30% $ 13.65 $ 62,100.00 $ 6.55 83
Beaufort $ 883.00 32% $ 16.98 $ 65,900.00 $ 6.55 104
Greenville $ 656.00 25.70% $ 12.62 $ 57,200.00 $ 6.55 77
Charleston $ 787.00 36.40% $ 15.13 $ 60,300.00 $ 6.55 92
Horry $ 786.00 31.90% $ 15.12 $ 52,400.00 $ 6.55 92
As demonstrated with rents, the same can be seen in home purchases that further emphasis
the need for affordable housing. As in this example, 120% AMI for Charleston in 2009 is
$50,650 for a 1 person household. The median sales price in Charleston as of April 2009
according to Truila.com was $259,950. After investing a typical down payment of 10%
($25,995) the monthly mortgage payment for a 30 year fixed rate at 6% is $1,402, which
exceeds 30% of their household income by over $130. When the additional cost of taxes,
insurance and utilities are added the cost burden on the household is further increased. This
scenario is typical for all of the targeted census tracts. Both the fair market rents and sale
prices clearly exceed what is affordable for many middle, moderate and low income
In Richland County, 42% of households are considered to fall in the income of 80% AMI, of
which 64% of the county’s renters and 28.7% of homeowners are considered very low income.
Overall, homeowners comprise 32% and renters more than two-thirds (68%) of extremely low
income households in Richland County. The income characteristics of households in the
Richland County area depict housing cost burdens across all median income levels of 50%,
80% and 120%. More than one-third (36.2%) of County residents in rental units and one-fifth
(21.4%) of homeowners are cost-burdened – spending more than 30% of the area median
family income for housing costs. According to 2000 Census data, 8.6% of Richland County
households were living in substandard units. Criteria used to determine substandard conditions
consisted of the lack of complete plumbing and over-crowding but did not take into account
homes in poor condition that have plumbing. Based on US Census data over the past decade,
Richland County’s single-family housing has remained the primary source of housing for
Richland residents, accounting for 62% of housing units. Multi-family housing units make up
24.2% of housing units. Residential permit data from 2002 to 2006 reveals that single-family
construction has consistently outpaced permitting for multi-family units within the County,
accounting for more than three-fourths of new housing units from 2002 to 2005. Based on the
limited impact of multi-family housing, and given trends in recent years it is assumed that it will
continue to comprise a smaller, but substantial percentage of Richland’s overall housing stock.
Future demand for single-family development is likely to remain stable, suggesting 66.6% of
demand for new households will be focused on single-family detached housing. Despite
growth in Richland county, daunting barriers to economic success still exist for residents, such
as low educational attainment; low-wage, low-tech employment opportunities; limited
transportation; and lack of access to key support services. With 4.6% of Richland County’s
adult population (aged 25 and older) having less than a ninth grade education and more with
80% of the fastest growing jobs requiring post high school education and training. This trend
has contributed to the higher numbers in unemployment and subsequent higher foreclosures
In the Charleston area, a Housing Affordability Assessment in 2007 conducted by the
Charleston Metro Chamber of Commerce & Lowcountry Housing Trust Fund revealed that
over 77,000 existing households, or one-third of the population in the region, pay more than
they can afford for housing. The discrepancy between housing costs and wages causes many
households to pay 50% or more of their annual household income on monthly mortgage or rent
payments. Those affected by the lack of affordable housing include individuals, families, and
senior citizens. The financial burden that is placed on individuals and families to obtain
affordable housing has a direct impact on the rising foreclosure rates in the local community.
The current AMI for the Charleston region is $60,300 for a family of four. 120% AMI calculates
to $72,360; 80% AMI is $48,250; and 50% AMI for a family of four is $30,150. Based on the
rule of thumb that a household should not spend more than 30% of their income on housing, a
family of four living at 120% can afford to purchase a home at $210,000; a family living at 80%
AMI can afford $150,000; and a family living at 50% AMI can afford a home priced at $90,000.
It has only been recently that home prices have come down enough to meet median incomes,
currently the Charleston MSA median priced home is just over $185,000, yet Charleston is still
over $200,000 making it difficult for families to own or rent.
Greenville County’s median incomes for households range from a low of $23,000 to a high of
$30,000. Targeted census tracts contain total populations of 2,600 to 3,500 persons,
respectively. HUD median income information in 1999 for a household with four persons in
Greenville County was $45,200 and in 2009 was approximately $57,000. The majority of the
households in the targeted tracts of Greenville County exhibited incomes at or below 60-50%
of AMI. In 1999, HUD fair markets rents for a 3-bedroom unit in Greenville County was
$609.00 and in 2009 it was $867.00. The 2000 census reported gross rents of less than
$570.00 per month, almost 50% of the 2009 fair market rent for the county. Based on a
housing market report prepared by Market Analysis Professionals, LLC for the South Carolina
Housing Finance and Development Authority the construction sector has seen the most
economic decline since 2008. General income in the area is less than the surrounding areas
of Greenville County and therefore available credit is less for existing and future homeowners.
Our participants, The Redevelopment Authority and its partners will focus their efforts on the
development of affordable rental housing, primarily because of the lack of credit associated
with populations in this area, and due to the low appeal. The housing stock in these targeted
census tracts is characteristic of typical mill villages. Most homes are two bedroom bungalows
built in the 1930’s to 1950’s. Typical construction activity includes demolition and new
construction or extensive rehabilitation exceeding $35,000 per property to make housing units
energy efficient and meet current local County housing code requirements. The typical activity
in these neighborhoods will be acquisition of substandard foreclosed and abandoned property
for new construction. Housing units in better condition will be purchased-rehabilitated for
rental development, serving populations with incomes less than 80% of the median income.
In Horry County as of 2000, 73% of occupied units were owner-occupied, while the remaining
27% were rental. The homeownership rate in Horry County has increased by 4.5 percent from
1990 to 2000. Taking into account the robust construction trends and the decreasing vacancy
the trend indicates that the area’s housing market continues to absorb recently constructed
homes. It also suggests that more people are becoming permanent residents for reasons such
as retirement, climate, jobs, and comparative national affordability.
Table 6 2004 Beaufort County
In Beaufort County, “A Work Force Housing Zip Code 50% Median 80% Median 120% Median
Needs Assessment” was prepared by GVA
29906 7,820 3,784 3,966
Marquette Advisors for Beaufort County in 2004
29910 2,501 1,217 2,432
with projections through the year 2009. The
number of families in specific income ranges was determined by that study and is shown in
This assessment concluded that the most apparent immediate demand for housing in Beaufort
County is for rental units priced below $700 and homeownership units priced below $125,000.
The National Low Income Housing Coalition has determined that 42% of the renters in
Beaufort County are unable to afford rent based on the 2 bedroom fair market rent ($883.00)
established by HUD.
LHRC will target renters with incomes at 50 % or less of the area median income for two of the
houses selected and incomes of 51 - 120% of the area median income for the remaining four
houses. This mix will allow us to make an impact on the neighborhoods in the target area
which span a variety of house prices.
Before the housing market took its downturn, the entire state saw an increase in the
construction of new single family and multi-family units as mentioned. With the market now in
decline due to the critical factors of increased unemployment and lack of available credit to
purchase the saturation of the state’s current housing stock and the overbuilding of units is an
additional impediment to effective absorptions of existing stock and newly constructed housing
Richland County has experienced over-building in the northeast section of the county,
particularly in neighborhoods located in the targeted census tract 114.09. The building boom
has contributed to a high concentration of high cost loans, foreclosures and vacancies in that
tract. To make matters worse, there is an extreme surplus of homes on the market as
homeowners try to avoid foreclosure. Prices are being driven down below the mortgage value
and families have no way out. Unemployed and “under water” on their mortgage obligations,
homeowners are packing up and leaving. The surplus of homes currently on the market and
the additional amount of homeowners waiting to put homes on the market when conditions
improve makes the forecasted demand for newly constructed units bleak. The boom in
Richland has also led to the abandonment of units in the targeted neighborhoods located in
and around the City of Columbia in favor of the newer homes built in the outlying areas. Newly
constructed homes hold more appeal as compared to the older homes in need of repair
located in the areas suffering from the negative effects of vacant and abandoned properties.
The high number of vacant units has led to a significant increase in vandalism, theft and
vagrancy. As people move out, jobs move out with them and the employment opportunities
lost are difficult to replace as businesses then relocate or close.
Charleston County in the last decade has been one of the fastest growing housing markets in
the Southeast. A heavy influx of residents from northern states to a coastal state fueled with
unprecedented housing construction; older retirees, in particular, were the target market for
new housing priced beyond the means of the average working Charlestonian. Escalating land
and construction costs in these desirable coastal markets severely limited the housing options
available and affordable to working families. Particularly hard hit were members of the NSP
target market, households with incomes at or below 120% of the area median income. Since
1999, Charleston has witnessed an 18% increase in population. With the increase in potential
homebuyers relocating to the area, developers quickly developed new homes to meet the
housing demand. Between 2000 and 2006, 51,680 new residential building permits were
issued, with over 10,000 permits issued in 2005 alone. Over time, the housing market no
longer demanded this new construction and in certain municipalities, including Mt. Pleasant,
permit allocations were initiated. While initially praised as a means to control growth in an
over-populated, over-developed area, these permit allocation programs and building
moratoriums created a false perception of a housing shortage. This perceived shortage
further drove up home prices and increased speculative developments in neighboring
communities. In late 2007, when the local housing market began to decline, communities that
initiated permit allocations and moratoriums witnessed a more dramatic collapse than
communities where developments slowed naturally with the markets. Many economists have
indicated that these areas will experience a longer recovery time as compared to areas where
home values have dipped only slightly.
Horry County’s Building permit data also reflects a rapid development. The County issued
29,440 new units in the unincorporated areas between 2000 and 2005. That figure increases
to 33,381 when the incorporated areas are included. Yet, the slump in the housing market
within the year 2007, has led to a decrease in residential building permits in the County (37%
drop in building permits between 2006 and 2007). Single-family units in Horry tripled from
1,458 units in 2000 to 3,968 units in 2005, but have decreased significantly to 2,627 single-
family units in 2006 as a result of the overall decline in the housing market. Within those
numbers, the bulk of new construction was represented by the Carolina Forest development in
the Conway East census (601.02) division.
Demand and Absorption Rates
Based on the report conducted in 2003 the South Carolina Comprehensive Housing Needs
Assessment which projected a growing demand for affordable housing from 2000 to 2025 with
a 76.9% project increase for homeownership and rental properties increases at a slower rate
of .73% per year. The table below provides the forecasted numbers of demand for both rental
and homeownership for those persons at the middle, moderate and lower income levels.
Table 7 Housing Demand Forecast for South Carolina
Statistical Area 2000 2005 2010 2015 2020 2025
Charleston County 207,957 221,713 237,860 253,945 270,156 286,092
Richland 245,347 256,520 278,817 301,508 324,498 347,729
Greenville County 217,152 233,207 256,669 280,905 306,307 332,617
Horry County 81,800 95,378 113,396 132,393 152,576 173,658
Beaufort County 382,638 393,867 420,193 450,365 478,426 509,442
South Carolina 1,533,854 1,622,542 1,763,179 1,910,560 2,059,422 2,213,572
Despite current conditions in the housing market, the average days on the market for a typical
median priced market rate home in the targeted regions is 217 days or 7.2 months. However,
based on the numbers of interested buyers on waiting lists for affordable housing that are
being maintained by our NSP1 recipients this does not seem to be the case for affordable
housing units. The downturn in the economy in combination with lower interest rates has
produced an even greater demand for affordable homeownership units which in turn has
caused the absorption rate for affordable decent safe and sanitary homes to average around
4.5 months. In spite of anticipating faster absorption for affordable units, the Authority will
impose the same requirement on NSP2 participants which is in effect for NSP1 participants
requiring that all homeownership units that do not sell within 6 months of being placed on the
market, will automatically convert to rental properties.
Table 8 Absorption By Counties
Total # of
houses for sale Absorption
on market that Total 90 day Totals of Rate based
include those Estimated # vacant Foreclosed & on # day on Median
County foreclosed Foreclosures residential Vacant market Listing Price
Beaufort County 8,235.00 1,178 10,044 11,222 264 $309,900.00
Charleston County 9,487.00 3,175 6,430 9,605 245 $325,000.00
Greenville County 7,997.00 3,529 6,881 10,410 176 $153,182.00
Horry County 15,017.00 3,274 12,755 16,029 247 $179,900.00
Richland County 4,466.00 4,616 6,321 10,937 153 $149,999.00
SOURCE HUD.gov data resources
Within the targeted markets, the Authority reviewed all of the market studies performed by
Market Analysis Professionals, LLC in and around the targeted geographical areas. Based on
those studies in each area we anticipate that the absorption rate for affordable rental housing
will be 2.5 months after the completion of renovation/construction. As demonstrated in the
following example in Greenville County all of the market studies reviewed were consistent in
the targeted areas with regard to affordable housing. Based on 8 market studies prepared by
Market Analysis Professionals (MAP), LLC for the Authority (specifically reviewed for serving
person at 80% or below and targeted to 60-50% AMI) for the Greenville region, the market
penetration for renters declined between 1990 and 2000, consistent with rising home
purchases over this same period. However, due to the volatile market the study indicated it is
anticipated that renter penetration will increase by 2010. The demand for rental housing is
highest within in the city at 53%, followed by 44.9% within the Metropolitan Area.
The market studies also state that based on demand the average rental housing market
absorption rate was 20 units per month, for a period of 8 months. The reports also indicated
that absorption rates may be slowed due to lower appeal, bedroom size (generally 2
bedrooms) and less densely populated areas. It is clear that neighborhoods will continue to
suffer from foreclosure and/or abandoned units and will have a low appeal in market demand
that will make it more difficult to address the affected neighborhoods if NSP2 funds are not
awarded. More important is that the market studies demonstrate a strong demand for more
affordable housing reporting that affordable rental units in the targeted areas have a housing
occupancy rate of 99%. With the potential of the identified market of renters in the 50-60%
exceeding 300 households.
NSP2 will allow housing providers the opportunity to strengthen and stabilize the targeted
neighborhoods before further harm occurs in these neighborhoods and blight is created. The
absorption rate for existing single-family housing is slower because of the condition of the units
and the likelihood that the properties would be purchased for re-use in their present condition
is slim to none. The strategy proposed as discussed in Factor 3, to revitalize the targeted
areas for rental housing will increase the potential to market and rent units at a faster pace.
We anticipate that the absorption rate for affordable rental housing will be 2.5 months after the
completion of renovation/construction.
NSP2 activities most likely to stabilize targeted census tract
Primary focus to stabilize neighborhoods within the urban core will be through the eligible
activities of acquisition and rehabilitation of foreclosed and abandoned units, financing
mechanisms for the purchase of foreclosed homes, demolition, establishing land banks of
foreclosed properties and redevelopment of vacant previously developed sites located in the
census tracts provided in Appendix 6. 228 properties eligible for NSP assistance have been
identified within the targeted census tracts. In addition, to the NSP2 focus in these targeted
areas the local jurisdictions have begun to use code enforcement and condemnation to clean
many of these blighted derelict properties to spur economic and community growth back into
these neighborhoods after significant disinvestment of businesses with rapid job loss created a
flight from these urban cores. Households left in these areas are unable to move outward
toward new job centers were very low income households without the necessary resources to
bring back the neighborhood. NSP funding could truly ignite the elimination of blight in these
neighborhoods and spur additional economic investment across the area. NSP funds will be
critical to securing and saving affordable housing in these areas as investors look to gobble up
land and properties in a slow economy for long term high end housing in the future as the
urban areas become more desirable places to live.
Factor 2 Demonstrated Capacity
Past Experience of the Applicant
Since 1971, the South Carolina State Housing Finance and Development Authority (The
Authority) has been at work fulfilling our primary mission which is to create affordable housing
opportunities for the citizens of the state. As the state’s economy has fluctuated over our
history, The Authority has continued to answer the call to provide affordable housing
opportunities for hardworking South Carolinians. Our past as well as our current success in
addressing the housing needs of our State has been through the administration of the
following federal and state programs:
• Neighborhood Stabilization Program
• The HOME Investment Partnerships Program (HOME)
• HUD Section 8 Contract Administration Program
• HUD Section 8 Housing Choice Voucher Program
• Homeownership Voucher Program
• Mortgage Revenue Bond Program – Single Family Purchase
• SC State Housing Trust Fund Program (HTF)
• Additional Special Initiative Programs funded from general funds that
include the HAPP, CRRP, DDSN, DSS/Foster Care and the State
The Authority administers South Carolina’s Neighborhood Stabilization Program (NSP1)
allocation of over $44 million. The initial process for implementing NSP1 began in October
2008 when staff began the process of 1) researching the Community Development Block
Grant Program and 2) creating the 2008 Substantial Amended Action Plan for HUD’s
approval. Staff created a timeline by which to have the Action Plan completed, meet all
NSP/CDBG requirements including citizen participation; create a NSP website and define the
process for Request for Allocations (RFA).
The Authority made the NSP1 program a priority and formed a designated NSP1 Review
Team. Team members assisted in creating a RFA document, mobilizing office space,
budgeting, and identifying needs/hiring of staff which was completed in January 2008. Upon
receipt of over forty RFAs the review team began evaluations in early March 2009. Eighteen
(18) recipients in 20 counties along with their partners were selected based upon their ability to
identify the areas of greatest need and their demonstrated capacity to fulfill program
requirements. This group also includes the top 5 targeted counties in which we are seeking
funds for NSP2. The NSP1 recipients are creating affordable rental and homeownership
opportunities in all eligible activities areas: acquisition and rehabilitation or redevelopment for
rental and/or homeownership, demolition, land banking, and providing financing mechanisms.
With awardees notified the Authority moved into the implementation phase. Already, the
Authority has: 1) made reservations and finalized agreements with recipients; 2) developed a
NSP Program Management Manual, attachments and other documents for recipients to
support successful NSP programs; 3) conducted two NSP training events for our recipients
and their partners; and 4) implemented an environmental review process to ensure speedy
obligation and expenditure of funds and to deliver maximum impact. To date, over two-thirds
of the projects have received a “ready to receive funds” status with regard to environmental
clearance and acquisitions have begun and funds have been disbursed. The Authority
recognizes that providing housing opportunities is enhanced through appropriate
homeownership counseling. Through our Mortgage Servicing Department, counseling is
provided to clients prior to closing on a home and this expertise will be utilized in the
Neighborhood Stabilization Program.
In Fiscal Year (FY) 2008 alone, The Authority successfully produced and/or made available
through financing a total of 5,157 housing units, including 2,384 single family homes and 2,773
apartments. In 2008, The Authority invested more than $394 million in affordable housing
across the state resulting in approximately $429 million in economic benefits and $202 million
in new tax base. Our investments have also provided work for thousands of individuals either
directly or indirectly. In 2008, more than 10,410 jobs were sustained as a result of the
development or redevelopment of housing through the State Housing Authority.
The Authority administers the HOME program and has since its inception in 1992. This
includes responsibility for allocation of funds, overseeing implementation of projects and long-
term monitoring of compliance to program requirements. Each year the staff administers the
annual HOME application process. HOME applications are made available through
competition to qualified nonprofits, Community Housing Development Organizations (CHDOs);
Local Governments, Public Housing Authorities, and for-profit entities. Funding is awarded to
those entities that design and create the most viable, cost-effective affordable homeownership
or rental housing opportunities to eligible beneficiaries.
Many of the programs administered by the Authority and the general processes associated
with their continued success are also those processes necessary for the success of NSP. The
HOME program is the most similar in structure to the NSP program. Provided below are the
steps taken on an ongoing basis to accomplish the objectives of the HOME program.
General Task, Results, Skills and Resources for the HOME program:
Marketing and Planning: Staff begins the planning process for HOME in November at which
time the HOME Action Plan is prepared. A public hearing is coordinated with the Department
of Commerce which administers the Community Development Block Grant Program (CDBG).
Once completed the final Action Plan is provided to HUD for approval and a contract is
executed with the Authority.
HOME Application Workshop: Staff conducts a HOME application workshop in the spring.
Hundreds of affordable housing advocates are contacted and encouraged to attend. At this
workshop, application requirements for both homeownership and rental activities are reviewed
step-by-step. The ultimate goal is to familiarize potential applicants with the applications,
requirements, and HOME regulations, as well as provide an opportunity for questions to be
asked and answered.
Application Process and Review: The HOME staff evaluates each application to determine
which projects will be recommended to receive HOME funds. The evaluation process includes
review of threshold items, and a point scoring criteria. Those rental applications that meet
threshold are passed on to our underwriting department and construction analyst to ensure all
projects awarded HOME funds are financially feasible and construction costs are reasonable.
In addition, staff begins the process of completing the environmental reviews, which are
handled by qualified environmental agencies that are contracted with the Authority.
Award Process: The award process begins when the Executive Director has approved the
recommended applications that meet all HOME requirements for funding. Letters of
Reservation are sent to awardees. Contracts/Agreements are constructed for each specific
awardee and project to ensure that specific regulations and requirements are met.
Implementation Process and Workshop: Staff conducts an implementation workshop for
awardees. The critical factor of the implementation is to cover the contract/agreements
thoroughly so that each recipient understands their obligations and program requirements.
The workshop covers a schedule that each HOME recipient will follow for the period of the
contract. The schedule is designed to ensure that all critical benchmarks are met. In addition
to the written agreement and schedule the following areas listed in Table 9 are included in the
Table 9 Implementation
Application Revisions Procurement Requirements MBE/WBE Annual Report
Marketing Activity Set-up Form Loan Matrix
Financial Management & Audits Fair Housing Requirements Deadline To Begin Construction
Construction Requirements Program Income Requirements Project Draw Process
Lead-based Paint Requirements Liability and Hazard Insurance Quarterly Reporting Requirements
Debarment Certification Davis-Bacon Requirements Project Completion Report(s)
W-9 Form Section 3 Requirements Recorded Restrictive Covenants
Progress, Completion, and Reporting: Each quarter Recipients are required to provide a
status of there overall progress to ensure they are following the timeline and meeting the
required percentage completed. In addition, it provides the HOME staff information with
regard to those that are experiencing difficulties and if any action needs to be taken. Project
Completion reports are due within 120 days of the final draw. The Authority also provides
reports to HUD that include an annual report providing the information on the awards,
disbursement of funds, match requirements and Section 3 and MBE/WBE reports.
Listed below in Table 10 and Table 11 are the HOME projects and Housing Trust Fund (HTF)
projects that have been completed within the last 24 months that are congruent with the NSP
uses, objectives and outcomes. The tasks, results, skills and resources to administer these
awards closely follow the NSP1 and HOME administration processes.
Table 10 Completed HOME Projects over 24 Month Period
Project Type or Name Activity Type $ Disbursed # of Units # of Persons Served Results
Rental Housing Acquisition/Rehabilitation $4,428,101 234 585 60/50% AMI
Homeownership Financing Mechanism $1,103,500 70 175 80% AMI
Rental Housing Acquisition/Redevelopment $9,382,927 443 1,007 60/50% AMI
Homeownership Acquisition/Redevelopment $585,000 39 97 80% AMI
TOTALS $15,499,528 786 1,864
In addition to the HOME program the Housing Trust Fund program has also been active since
1992. HTF is funded through a percentage of the State’s real estate transfer fees. Similar to
the HOME program in its processes, the funds are available through quarterly competitions to
eligible participants as listed above. HTF provides an array of complimentary programs that
encompass areas that the HOME program does not, which include the listed projects in Table
Table 11 Completed HTF Projects over 24 Month Period
Project Type Or Activity Type $ Disbursed # of Units # of Persons Results
Transitional Units Acquisition/Redevelopment $2,295,506 52 130 50% AMI
Group Homes Acquisition/Rehabilitation $3,405,214 48 120 50% AMI
Group Homes Acquisition/Redevelopment $525,000 7 17 50% AMI
Shelters Acquisition/Rehabilitation $345,699 8 20 50% AMI
TOTALS $6,571,419 115 286
Note: Rental, Transitional, Group Homes and Shelters have the potential to serve more persons based on turnover of units.
The Authority’s Management Structure
The Authority’s operations are overseen by a geographically diverse 9-member Board of
Commissioners appointed by the Governor. The Board of Directors hires the Agency’s
Executive Director, and the Executive Director hires all executive staff. The Agency’s state
statute defines its board composition, general powers, program authority, and financing
Direct management of the NSP program will be undertaken by the following key staff:
• Larry Arney, Deputy Director for Programs – Mr. Arney has over 20 years in affordable
housing experience as an architect, developer and administrator. He was formerly
Executive Director of Habitat for Humanity in Atlanta were he worked with CDBG and
HOPE. As Deputy Director for Programs Mr. Arney oversees all federal and state
programs administered by the Authority through the management and coordination of
• Nancy Fairley, Director of the NSP Program – Ms. Fairley has worked in affordable
housing for the past 15 years with the Authority. She currently coordinates and manages
both NSP1.and the HOME program to ensure that all federal and state requirements are
met by program participants. In addition, she manages the NSP/HOME staff with regard to
program administration, implementation, monitoring and keeps up to date on policy
• Jennifer Cogan, Program Manager of NSP—coordinates the development and
administration of NSP; creates reports and training materials; makes sure all policies and
procedures are in line with federal and state requirements; participates in the creation of
the program management manual, filing system, and website notices; provides technical
assistance to NSP partners on a daily basis; makes presentations at NSP technical
assistance workshops; underwrites rental projects for financial feasibility and programmatic
requirements; reviews documentation submitted by sub-recipients and tracks the ongoing
progress of NSP awarded projects; and inputs data into the DRGR systems and processes
• Kelli George, NSP Program Assistant
Assists the program director in planning, organizing, and processing reports; assists
program coordinators in their day-to-day activities; planning and meetings, workshops, and
conference calls; maintains the program’s contacts; prepares and mails correspondence to
participants; performs additional duties as assigned by supervisors.
• Jeanne Hammel, NSP Program Coordinator
Researches and responds to recipient’s daily calls using the NSP Manual or HUD website;
builds, maintains, and reviews each sub-recipient’s master program file and site control
information for activity files; reviews and responds to schedules submitted by partners;
coordinates environmental reviews with other staff; researches and conveys information to
recipients on sources of foreclosed properties like FNMA REO properties; reviews on an
ongoing basis new requirements, policies, and procedures of NSP.
• Reginald Mack, NSP Program Coordinator
Assists with clarification and implementation of procedures and requirements of NSP in
both written and verbal form; reviews the accuracy of documents received from NSP
recipients to ensure compliance; provides guidance and assistance to recipients through
telephone conversations, emails, on-site visits and group trainings; maintains designated
NSP recipients files, ensuring proper set up and availability; functions as the Environmental
Review Specialist guidance, ensuring environmental reviews are properly carried out.
The Authority’s Organizational Chart
Cynthia Dannels Larry Arney Debra Seymour Ed Knight Tracey Easton
Human Resources Deputy Director Finance Director Deputy Director General Counsel
Director Programs Admin
Richard Hutto Doug Perry Claude Spurlock
Contract Admin Controller Mortgage Purchasing
Dennis Cokley Lisa Rivers
Compliance/Monitoring Nancy Fairley Mortgage Servicing
Program Manager I
Nancy Fairley Kimberly Spires
HOME & NSP Investor Services
Matt Rivers Clayton Ingram
Housing Trust Fund Marketing & Comm
Laura Nicholson Program Coordinator II Mark Phipps
LIHTC Information Technology
Carl Bowen Reginald Mack Willie Franks
Housing Choice Vouch Program Coordinator I Procurement
Program Coordinator I
In addition to the NSP staff members, several departments within the agency area support
NSP staff including Information Technology, Human Resources, Legal, Finance, and
The Organizational Chart for the Authority and Participants
Beaufort Housing Lowcountry Housing City of Greenville: Greenville County Housing Authority of
Authority: Beaufort Trust: Greenville County Redevelopment Myrtle Beach: Horry
County (Targeted Charleston County (Targeted Census Authority: Greenville County (Targeted
Census Tracts (Targeted Census Tracts 009.00, County (Targeted Census Tracts
0002.00, 0005.00, Tracts 0037.00, 0013.01, 0021.05, Census Tracts 0021.5 0515.00, 0516.02,
0021.00, and 0040.00, 0026.09, and 0007.00) and 0021.6) 0602.01, and
0022.00) 0046.01, and 0009.00) 0602.02)
City of Columbia: Community Richland County
Richland County Assistance Provider: Community
(Targeted Census Richland County Development:
Tracts 0106.00, (Targeted Census Richland County
0013.00) Tracts 0002.00, (Targeted Census
0005.00, 0013.00, Tracts 0106.00,
0106.00, 0109.00, and 0101.01, 0103.03,
0114.09) 0109.00, 0114.09)
The Authority submits its budget through the S. C. Budget and Control Board and completes a
financial audit each year. The most recent audit completed is for fiscal year ending June 30,
2007. The audit was conducted by DeLoach & Williamson, L.L.P., Certified Public
Accountants. This audit resulted in an unqualified (clean) audit opinion with no material
weaknesses. The Agency’s bonds are rated AA by Standard and Poor’s and Aa2 by Moody’s.
In addition, the Authority is subject to a number of reviews and audits performed by external
parties (HUD, State, Bank Regulators etc.) to ensure regulatory/legal compliance. The
Authority has internal controls in place and a level of competency among its staff to carry out
the activities of the NSP2.
The State Housing Authority ensures that programs are properly monitored and technical
assistance is provided through our on-going Compliance Monitoring division which is covered
in Factor 3. Our Compliance Monitoring department is comprised of experienced construction
site inspectors as well as staff skilled in reviewing NSP recipient files for income qualifications,
rent requirements and unit maintenance throughout the required affordability period.
The Authority has provided below the description of the organizations that will be participating
in NSP2, including the primary contact person involved, with their roles and responsibilities.
1. Lowcountry Housing Trust: Charleston County
(Targeted Census Tracts 0037.00, 0040.00, 0026.09, 0046.01, and 0009.00)
The Lowcountry Housing Trust (LHT) is a certified CDFI established in 2004 with a mission to
provide financing and capital to assist non-profits, government entities and private developers
in developing and constructing a full spectrum of affordable housing, for the purpose of serving
low-income residents in its target market – the greater Charleston, South Carolina metropolitan
area. LHT’s board of directors consists of 20 members representing diverse backgrounds,
exceptional skills and a broad range of experience. The board, supplemented by advisory
members to board committees, is actively engaged in advancing the LHT mission and
supporting LHT operations. Tammie Hoy serves as Executive Director of LHT. Ms. Hoy is
responsible for management of NSP, including program implementation, financial
management, planning and reporting. For LHT, Ms. Hoy is responsible for development of
annual work plans and implementation of the strategic plan, overseeing all financing,
development service and community education programs, marketing LHT programs and
securing funding for operations and financing. Ms. Hoy has over 16 years experience within
the affordable housing industry and is a leading statewide advocate for affordable housing.
Michelle Mapp, the Program Director for LHT, is primarily responsible for delivering NSP
technical assistance to affordable housing developers and sponsors of applications for the
Homebuyer Assistance Program. Ms. Mapp will also be responsible for daily NSP2 program
fund management, compliance management and monitoring of the loan portfolio.
2. Housing Authority of Myrtle Beach: Horry County
(Targeted Census Tracts 0515.00, 0516.02, 0602.01, 0602.02))
Sharon Forrest, Executive Director, is responsible to the Board of Directors for the Housing
Authority of Myrtle Beach’s programs, including NSP2. The Assistant Director, Amy Bogan,
works closely with the NSP Administrator and with the contractors to assure all NSP
requirements are met. Judi Dozier is the NSP Administrator, and is in charge of the day to day
grant management. Theresa Ross, HUD Certified Housing Counselor, is responsible for
property research, homeownership applications and counseling. Carol McCall is in charge of
Supportive Services, which includes grant writing and providing support to the NSP
3. Richland County Community Development: Richland County
(Targeted Census Tracts 0106.00, 0101.01, 0103.03, 0109.00, 0114.09)
Director of Community Development Valeria Jackson has a combined 19 years of experience
with HOME and CDBG funds. She manages the Richland County Community Development
(RCCD) team which is charged with implementation of NSP2 activities. Amy Hook, NSP
Manager, handles the day to day management and oversight of NSP funds and activities. This
includes, but is not limited to: working with the subrecipients to create the best path forward;
management of the NSP budget and individual subrecipient budgets; reporting on DRGR; and
ensuring green building measures are utilized. All of the internal financial management and
accounting systems are managed by Marlene Park-Coto, the Grants Accountant. She serves
as the link between HUD and Richland County. She will be handling the internal financial
controls for NSP and coordinating with the Authority on draws from the DRGR system. Frank
Frierson is the Housing Program Manager. He oversees and manages the Homeowner Repair
Program, as well as the Emergency Repair Program. He is well versed in the use of HOME
and CDBG funds. Frank will be assisting in the Environmental Assessments of the properties
chosen for NSP.
4. Community Assistance Provider: Richland County
(Targeted Census Tracts 0002.00, 0005.00, 0013.00, 0106.00, 0109.00, 0114.09)
Community Assistance Provider, Inc., (CAP) is managed by a six-member Board of Directors.
CAP’s Board Chairman (Dee Rogers) is a past president of a CDC and is currently a Project
Manager with a large real estate development corporation. A senior commercial lender of a
regional bank (Helen Sons), a local business owner (Pamela Tidwell) and a non-profit Program
Manager (Rudolph Walker) also sit on our board. The remainder of our board consists of
persons who are low income or who are representatives of the low-income community. CAP’s
President/CEO (Veronica Rodriguez) is a twenty-five year banking veteran with extensive
background in real estate and finance. She holds a graduate degree in banking and is a NDC
certified Housing Finance Development professional. She will oversee all aspects of the NSP
Project with particular emphasis on fiscal management. Mrs. Rodriguez reports directly to the
Board of Directors. CAP’s Vice President of Housing Services (Jamie Devine) is a licensed
realtor and has over ten years of experience in property management. He and his team will be
responsible for the acquisition of properties, marketing, tenant screening, collections, tenant
re-certifications and compliance. CAP’s Rehabilitation Program Manager (Yvette Thomas) will
be responsible for the rehabilitation of all NSP properties. CAP has a very prolific rehab
program and has rehabbed over 100 houses per year since it’s inception in 2001. Ms. Thomas
is also responsible for ongoing property maintenance and landscaping. CAP’s in house
Bookkeeper (Charles Cummings) is a veteran Banker who was Chief Operations Officer for a
regional bank. He will be responsible for compliance with all NSP/CDBG accounting
guidelines and financial reporting.
5. City of Columbia: Richland County
(Targeted Census Tracts 0106.00, 0013.00)
Deborah Livingston is the Deputy Director of Community Development/Residential Housing &
Executive Director of Columbia Housing Development Corporation. She is responsible for
negotiating contracts, project design and providing oversight, management, and
implementation of the entire NSP2 development project. Michael Manis is the Executive
Director of Eau Claire Development Corporation. He is a developer, and is responsible for the
oversight and management of NSP2 projects in the Eau Claire Development Corporation’s
census tract. Adam Scott is the Contract Estimator/Construction Manager for the City of
Columbia. He is responsible for the bidding and procurement of contracts to develop the
properties, perform initial inspections prior to draws being made, drafting construction
specifications, and working with contractors and handling any questions or problems that may
arise. Susan Ryan is the Assistant Coordinator for the City of Columbia. She is responsible
for creating and maintaining record to track all NSP2 funds in the City of Columbia group. She
is also responsible for the requisition and tracking of construction draw requests, processing
and tracking invoices, management of program compliance, and maintaining NSP2 files.
Rachel M.Odom and Tracy Brown are both Loan Officers and Housing Counselors for the City
of Columbia. They are responsible for marketing the city loan program, working with potential
loan applicants in the fields of credit and homeownership counseling, and working to promote
homeownership. Gerry Lynn-Hall is responsible for assisting with NSP2 program compliance.
6. Greenville County Redevelopment Authority (GCRA): Greenville County
(Targeted Census Tracts 0021.05 and 0021.06)
GCRA is a public organization created by State legislation in 1973. For over 30 years, GCRA
has had an agreement with the County to manage its U.S. Department of Housing and Urban
Development entitlement programs such as the CDBG, HOME, Emergency Shelter Grant, and
NSP. GCRA has 12 Board members that are appointed by the Greenville County Council.
The Executive Director, Martin Livingston, will have overall responsibility for management and
coordination efforts of the NSP2 program. We will work with staff and the GCRA attorney to
identify and purchase eligible properties for development and land banking activities. Imma
Nwobodu, GCRA’s Program Manager, will be responsible for receiving, reviewing, and
processing payment invoices from development partners. Imma will be responsible for
managing payment processing, environmental assessments, and activities of the Property
Acquisition Coordinator. Rashida Jeffers, GCRA Community Development Planner, will be
responsible for environmental assessments associated with NSP2. Bill Kohout, GCRA’s
Operations Manager and Don Bailey, GCRA’s Associate Construction Specialist, will be
responsible for inspecting developments to determine that they meet GCRA’s energy star
requirements. Kelly Stevenson, GCRA’s Finance Supervisor and Jan Jordan, GCRA’s
Accounts Payable specialist will be responsible for processing payments for activities
associated with NSP2 funding. Jan Jordan will process all claims for payment involving
acquisition for land banking and payments for development. Rodney Taylor, GCRA’s Property
Acquisition Coordinator, will be responsible for inspecting properties, taking photographs for
the environmental file, preparing short work write-ups/assessments of needed repairs and
inspecting properties for completion according to NSP development agreements and budgets.
7. City of Greenville: Greenville County
(Targeted Census Tracts 009.00, 0013.01, 0021.05, 0007.00)
The Community Development (CD) Division will be responsible for the day-to-day
management of the NSP2 grant. The City has eight full-time professionals and one intern
devoted to the planning, implementation, and reporting for the CDBG, HOME, and NSP
programs. The City’s legal department will also be assisting in the implementation of the grant.
Ginny Stroud, Community Development Administrator, will oversee the administration of the
grant, work with partner agencies to ensure approval of projects through the City’s regulatory
review process, compliance with Master Plans and local, state and federal regulations. Tiffany
Foster, NSP2 Intern, will be responsible for ensuring all NSP2-sponsored activities adhere to
all local, state and federal requirements while working closely with all City and partner staff to
meet all time lines and goals. Joe Smith, CD Project Manager, will be dedicated to general
management of construction and rehabilitation activities of the NSP2 activities undertaken to
assist in site and utility plans, constructions and engineering protocol and ensure compliance
with local, state and federal regulations and codes including Davis-Bacon, Section 3,
Procurement, etc. Yvonne Simpson, Neighborhood Planner, will be responsible for
compliance with HUD regulations regarding property acquisition activities undertaken. Wayne
Leftwich, Community Planner, will be dedicated to site planning and environmental review
processing of NSP2 activities. David Gray, Financial Analyst/Grants Administrator, will be
responsible for developing the interagency agreements, proper financial and programmatic
reimbursement, drawdown and reporting processes. John Merritt, CD Housing Construction
Coordinator, will be responsible for assisting partner agencies prepare work write-ups (public
body estimates) for rehabilitation projects, and inspection and approval of partner development
agreements and assistance with property acquisition.
8. Beaufort Housing Authority: Beaufort County
(Targeted Census Tracts 0002.00, 0005.00, 0021.00, 0022.00)
Edward L. Boyd, Executive Director, supervises a staff of 18 and has responsibility for overall
operation of the agency and NSP2 including development, capital improvements, and
management. He also serves as Chief Financial Officer for the Authority. Angela Childers,
Operations Officer, is responsible for overseeing the day to day management of NSP2
properties to include ongoing maintenance of properties. Bertha Owens, Property Manager,
will serve as the property manager for the NSP2 units. She is responsible for the full range of
property management including lease-up, tenant relations, rent collections, lease enforcement,
income qualifying, etc.
The Authority has provided in table 12 a list of the completed projects that demonstrates the
capacity relevant to the participants involved that shows the types of activities and number of
units they have undertaken and completed within the past twenty four months.
Table 12 Completed Projects by the Participants
Project Type Or Name Activity Type Total # of # of Results
Development Units Persons
Affordable Housing Acquisition & Rehabilitation, Demolition,
$47,742,280 180 1,481 80% AMI
Finance Mechanism Redevelopment, Financing Mechanisms
Arthurtown Revitalization Acquisition/Redevelopment $1,100,000 11 27 50% AMI
Freetown Community Acquisition, Rehabilitation Demolition &
$855,892 9 22 50% AMI
Redevelopment Land Management-Banking
Brutontown Community Redevelopment, Demolition and Land $1,718,797 17 42 80% AMI
Acquisition, Rehabilitation, Housing
Counseling, Marketing & Management, $874,902 6 15 80% AMI
Funding Mechanisms, Marketing and
City Living Loan Program $25,737,241 229 572 150% AMI
Management, Housing Counseling
Viola Street Acquisition, Redevelopment, Demolition,
Neighborhood Housing Counseling, Funding $11,161,777 3 7
Revitalization Mechanisms, City & Regional Planning
Acquisition, Demolition, Land
City Land Bank $617,095 158 395
Mint Farm Homes
Acquisition/Redevelopment $727,890 6 18 50% AMI
Monticello III & Public Acquisition/Rehabilitation &
$8,513,500 74 160 60-50%
Housing homeownership Redevelopment
Totals $99,049,974 693 2739
Task, Results, Skills and Resources associated with the completed projects in table 12:
Low Country Housing Trust (LHT)/Affordable Housing Mechanism: Through 3 competitive
financing rounds, LHT has financed $1,904,820 for the acquisition, rehabilitation, and new
construction for 180 affordable rental and homeownership units. Projects funded consisted of
rental and homeownership; predevelopment loan for the acquisition, demolition, and
redevelopment of a blighted structure, bridge loan for the rehabilitation of owned single family
units, and homebuyer assistance through downpayment and closing costs. LHT has been
able to leverage more than $3 million in community development financing to enable $92
million in community impact while creating and/or preserving 576 affordable housing units.
LHT works in partnership with the cities of Charleston & North Charleston, Town of Mount
Pleasant, and Charleston County.
CAP/Arthurtown Revitalization Project: In partnership with Richland County’s Office of
Community Development, CAP has worked to revitalize Arthurtown. With $200,000 in HOME
funds, $30,000 in CDBG funds and the help of an investor, CAP was able to purchase land
and construct eight new brick and vinyl homes. Now sold to low and very low income
homeowners, these homes are improving the real estate values of the neighbors and
stabilizing a neighborhood where residents relish the improvements that have come about.
CAP has recently demolished a dilapidated structure in the neighborhood and is about to break
ground on a small apartment complex which will provide needed rental housing for seniors in
Greenville County Redevelopment Authority (GCRA) Freetown and Brutontown
Community: GCRA in partnership with the Freetown community has been improving this
neighborhood since 2000, and has developed and sold new constructed and rehabbed single
family units. GCRA was responsible for the entire development of affordable housing including
property acquisition, construction management, and homeownership counseling, and closing
the sale of the units. GCRA partnered with several nonprofits to provide down payment
assistance. In Burton Community GCRA has acquired over 130 single family and multi family
properties to implement an affordable housing development in the community. GRCA was
responsible for the acquisition of the property, demolition of substandard properties, land
management of over 130 properties, construction management functions, homeownership
counseling, and closing the sale of the units. The GCRA partnered with the NHC to provide
down payment assistance through the SC State HTF. During the last two years, GCRA has
developed and sold 17 single family units in the neighborhood. As a HUD designated
Neighborhood Revitalization Strategy area, the community has seen a reduction in crime, less
substandard houses, improved streets, and the stabilization of property values.
City of Columbia/City Living Loan Program: The long standing homeownership loan
program has provided second mortgages to individuals and families using CDBG and HOME
monies. This program has included the purchasing and rehabilitation of foreclosed properties
for sale. Credit counseling and homebuyer education is provided. During the period of 2007-
2009, the City of Columbia has financed loans to 110 households with income at or below the
80% AMI and 119 for households at the 81% to 150% of AMI. The City of Columbia partner
banks have financed $15,436,734 in first mortgages and the city has financed $10,269,374 to
second mortgages, affordable housing and rehabilitation.
City of Greenville/Viola Street Neighborhood Revitalization: The City of Greenville, in
partnership with the Randolph Group, the Greenville County Human Relations Commission,
Greenville Housing Futures, First Baptist Church Greenville, SCSHFDA and HUD, forged the
redevelopment of the Viola Street neighborhood beyond the community’s expectations. During
the 2007-2009 periods three units were completed and sold to first time homebuyers. The 15-
year revitalization of the Viola Neighborhood has positively impacted near-by neighborhoods
stimulating additional public and private investment. City Land Bank project by the City has
maintained a land bank for the past ten years to support the development of affordable
workforce housing. The City’s goal is to stimulate private investment from the development
community, and making those properties available to developers at a reduced or nominal cost.
Once the property is acquired, the City demolishes the dilapidated structure eliminating blight
in the neighborhood. Properties are maintained by the city until they are sold to the
developers. The City makes these properties available through a Request for Proposals (RFP)
process. Long term affordability is maintained through a development agreement and a 20-
year deferred forgivable mortgage.
Beaufort Housing Authority/Mint Farm Homes In coordination with it’s nonprofit
organization, Lowcountry Housing & Redevelopment Corporation Beaufort Housing Authority
through the utilization of SC Housing Trust Fund grants and a bank loan developed (6) single
family homes to rent to low income families. The project was completed in the fall of 2006, and
the homes are currently occupied by qualified families.
Myrtle Beach Housing Authority/Monticello III & Public Housing Homeownership: In the
above projects MBHA has worked with Rural Development, Douglas Company, SC State
Housing Finance and Development Authority, HUD, City of Myrtle Beach, Waccamaw COG,
Waccamaw Housing Inc. MBHA developed 112 multi-family rental units with the assistance of
rural development, Douglas Company, and Authority funds, HUD, City of Myrtle Beach,
Waccamaw COG and Waccamaw Housing Inc. The projects produced Rental and
Homeownership units through new construction and rehabilitation
1. Mr. Louis E. Bradley, Director
Community Planning and Development Division
U.S. Department of Housing and Urban Development (HUD)
Strom Thurmond Federal Building
1835 Assembly Street
Columbia, SC 29201-2480
Office Phone: (803) 765-5592
2. Ms. Bonnie Ammons, Director
Community Development Block Grant
South Carolina Department of Commerce
1201 Main Street, Suite 1600
Columbia, SC 29201-3200
Office Phone: (803) 734-1399
Factor 3 Soundness of Approach
The Authority will administer the NSP2 funding in a manner that will address the designated
areas of greatest need as provided in Appendix 6. NSP2 funds will be utilized and distributed
to participants for the following NSP eligible activities: Administration, Funding Mechanisms,
Rehabilitation, Table 13 Total # of
Acquisition Total NSP2 Costs NSP2 Units
/Redevelopment, TOTAL NSP2 Activity Cost $26,739,820.40 228
Demolition and Administrative Funds (10% of Total Award) $2,673,982.00
Landbanking. The Total NSP Request $29,413,802.40
distribution of NSP2 Acquisition/Rehabilitation Cost $14,492,273.80 108
Redevelopment Cost $10,839,043.60 52
funds will be
consistent with the Landbanking Cost
Demolition Cost $888,000.00 25
priorities identified *77
in the State’s Rental Units *126
Consolidated Plan Units to serve ≤50% AMI Cost $10,882,049 94
(2005-2010) in * This does not include the Landbanking units they have yet to be determined.
specific housing goals: 1) Enhance suitable living environments through new accessibility,
affordability and sustainability; 2) Create decent housing with new availability, and
sustainability; and 3) Provide economic opportunity through improved accessibility, affordability
The Authority is requesting a total of $29,413,802 (Table 13 provides all NSP Totals) in NSP2
funding for the state’s targeted geographical census tracts in the amount of $26,739,820 in
activity funds and allowable 10% administration in the amount of $2,673,982. Proposed
projects will provide housing units for low to moderate income persons as defined in the NSP
targeted areas at or below 120% of area median income. $10,882,049 million will provide
housing for households below 50% AMI which exceeds the 25% requirement, and
$15,857,771 million will provide housing for households below 120% AMI. The Authority and
its participants will focus its effort on the following activities to assist a total of 228 properties in
26 census tracts identified in 5 counties as the areas of greatest need per HUD’s Vacancy and
Foreclosure Index. The Authority estimates approximately $134,187 per unit in NSP2 funds
will be required for acquisition/rehabilitation and approximately $208,443 per unit for
acquisition/redevelopment. Through matching funds from the Authority and its partners an
additional $7,911,167 of investment will enable participants to acquire additional units and/or to
cover the cost of energy efficiency measures. Table 14 below summarizes the total request
Table 14 NSP REQUEST
NSP Acquisition Demolition Rehabilitation New Activity
Entity Cost Cost Cost Construction Delivery Cost
ACTIVITY 1 LHT $1,163,424 $120,000 $2,098,800 $507,334 $ 3,889,558
Redevelopme GCRA $129,395 $ 570,000 $139,878 $ 839,27
nt GCRA $475,000 $35,000 $2,153,632 $434,651 $3,098,283
CC donated $926,000 $185,200 $1,111,200
CC donated $1,561,976 $ 338,752 $1,900,729
CAP $784,225 $250,000 $257,000 $1,291,225
CAP $269,535 $125,000 $ 106,000 $ 500,535
RCG $1,566,000 $450,000 $ 504,000 $2,520,000
RCG $609,000 $175,000 $196,000 $980,000
LHT $1,323,930 $337,500 $249,215 $1,910,645
ACTIVITY 2 LHT $1,500,000 $100,000 $240,000 $1,840,000
MBHA $405,000 $75,000 $120,000 $600,000
MBHA $945,000 $175,000 $ 280,000 $1,400,000
BHA $ 215,600 $50,000 $66,400 $332,000
BHA $434,400 $100,000 $133,600 $668,000
GCRA $699,719 $ 350,000 $210,394 $1,260,113
CG $515,000 $ 225,000 $148,000 $888,000
GCRA $151,464 $100,000 $50,291 $301,755
GCRA $250,000 $250,000
ACTIVITY 4 CG $711,161 $48,000 $149,342 $908,503
CG; GCRA GCRA $250,000 $ 250,000
TOTALS $12,147,853 $453,000 $2,512,500 $7,310,408 $4,316,057 $26,739,820
To clearly demonstrate the Authority’s approach and the effects it will have on the targeted
census tracts, a detailed summary of each proposed activity includes the following:
1. Activity by area and targeted census tracts
2. Proposed numbers of units to be completed
3. Types of household served (i.e. 120%, 80%, or 50%)
4. Outcomes (homeownership or rental)
ACTIVITY 1: Acquisition, Redevelopment & Funding Mechanism
ACTIVITY TYPE: Acquisition, Redevelopment, and Funding mechanism (development subsidy
for downpayment) of foreclosed, abandoned, vacant and blighted properties to serve
households at or below 50%-120% of AMI.
ACTIVITY DESCRIPTION: The Authority intends to enter into agreements with Lowcountry
Housing Trust, Greenville County Redevelopment Authority, City of Greenville, and City of
Columbia to undertake the development of 32 rental projects and 20 homeownership projects.
• Greenville County Redevelopment Authority will redevelop properties to produce 24
rental units in the communities Sterling, Brandon, and Judson to serve those at or below
• Lowcountry Housing Trust will redevelop properties to produce 8 rental units in the
East Side Community to serve those at 120% AMI.
• City of Columbia will redevelop properties to produce 20 homeownership units in the
communities of Windemere Springs, Seminary Ridge, Booker Washington Heights,
Colonial Heights, Martin Luther King, Waverly, Belmont, Northwood Hills, Bethel Bishop,
Burton Heights. Of the 20 units 8 will serve those at or below 50%AMI and 12 will serve
those at or below 120% AMI. The vacant blighted properties have been donated for this
cause to address this fractured neighborhood. All potential homeowners will be
provided the required 8 hour minimum of HUD housing counseling. The city will be
providing the homeowners a development subsidy that will be left in at the completion of
the project as downpayment. This subsidy will not exceed $20,000 per homeowner.
ACTIVITY 2: Acquisition, Rehabilitation & Funding Mechanism
ACTIVITY TYPE: Acquisition, Rehabilitation, and Funding Mechanism (development subsidy
for downpayment) of foreclosed, abandoned, vacant and blighted properties to serve
households at or below 50%-120% of AMI.
ACTIVITY DESCRIPTION: The Authority intends to enter into agreements with Lowcountry
Housing Trust, Greenville County Redevelopment Authority, City of Greenville, Community
Assistance Providers, Richland County Government, Myrtle Beach Housing Authority, and
Beaufort Housing Authority to undertake the development of 71 rental projects and 37
• Lowcountry Housing Trust will acquire and rehabilitate 25 foreclosed and/or
abandoned units in the communities of West Ashley, Whipper Barony Dorchester
Terrace and Mount Pleasant to serve those at 50%-120% AMI. 15 of the units will
serve those at 50% or below for rental and 10 will serve those at or below 120% AMI.
• Greenville County Redevelopment Authority will acquire and rehabilitate 18
foreclosed/abandoned units in the communities of Sterling, Brandon, and Judson. 4
units will be for homeownership activities at 120% below and 14 for rental units at 50%
or below. In addition, to the rental units serving 50% AMI many of these units will serve
special needs groups to include the homeless, and mentally ill. These units will be
permanent housing to provide training for life skills to those served in order that they
can maintain residencies and not be found on the streets or placed back into
institutions. Serving these groups in the form of permanent rental housing is found to
be more cost effective than other methods of housing provided in the state such as
shelters’ and institutions. GCRA will provide potential beneficiaries will be provided
housing counseling certified HUD groups in the Greenville Area.
• City of Greenville will acquire and rehabilitate 9 foreclosed/abandoned units for the
communities of West Greenville and Southernside neighbors for homeownership to
serve those at or below 120% of AMI. This activity will be completed in conjunction with
other projects already underway in these neighborhoods.
• Community Assistance Providers will acquire and rehabilitate 15
foreclosed/abandoned units in the communities of the northeast, Waverly and north
Columbia for rental housing. 10 units will serve those at 120% of AMI and 5 at or below
50% of AMI. CAP utilizes a unique process when working with tenants. They target
tenants that in their targeted areas seeking the opportunity to begin the process of
becoming home owners. The work with only those that are truly determined to
transition towards the goal of home ownership. They will combine NSP2 investment in
these rental units with the ongoing efforts of their agencies mission for permanent
housing for both rental and homeownership opportunities.
• Richland County Government will acquire and rehabilitate 25 foreclosed/abandoned
units in the communities of Belmont, Northwood Hills, CABB Island, Burton, Standish,
Beth Bishop, Northeast-Blythewood and Irmo to provide homeownership and renal
• Myrtle Beach Housing Authority will provide 10 units in the communities of Socastee,
Forest Brook and Carolina Forest by acquiring and rehabilitating foreclosed/abandoned
units for homeownership. Three units will serve those at or below 50% of AMI and
seven will serve those at 120% of AMI.
• Beaufort Housing Authority will acquire and rehabilitate 6 foreclosed/abandoned units
in communities of Burton, Pinewood, Irongate, Shell Pointe, Buckwalter and Sawmill
Forest for rental housing. Two units will serve those at or below 50% AMI and six will
serve those at or below 120% of AMI.
ACTIVITY 3: Demolition
ACTIVITY TYPE: Demolition of a Blighted Structures will involve the removal of structures
that exhibits objectively determinable signs of deterioration sufficient to constitute a threat to
human health, safety, and public welfare (Authority NSP Definitions and Construction provided
under Appendix 7).
ACTIVITY DESCRIPTION: The Authority intends to enter into agreements with Greenville
County Redevelopment Authority (GCRA) in which they have identified eligible properties
that been determined to meet the definition of being blighted. The removal of these
deteriorating, dilapidated housing units from these neighborhoods will bring stability, a
reduction in crime and future revitalization opportunities to these areas that have long been
neglected. GCRA will be completing this for a minimum of 25 units in the communities of
Judson, Brandon, and Sterling. GCRA has partnered with the county code division to
demolish substandard properties in the NSP2 proposed strategy area. Since 2006 to present
GCRA in conjunction with the code division has demolished 61 substandard housing units, 14
in the proposed NSP2 funding area.
ACTIVITY 4: Landbanking
ACTIVITY TYPE: Landbanking, Maintenance and Demolition for Foreclosed properties
ACTIVITY DESCRIPTION: The Authority intends to enter into agreements with Greenville
County Redevelopment Authority (GCRA) and the City of Greenville in which they have
identified properties in the Sterling, Brandon, Judson, Nicholtown, Southernside, and W.
Greenville. Of which 43 units have been identified for this purpose. Some of the foreclosed
properties will require the removal of blighted deteriorating, dilapidated housing and will
provide both governmental agencies with properties that will be used for future housing
development for both rental and homeownership.
This pie chart gives a % breakout of the NSP2 Allocation Request:
All of the proposed activities are located near and around CDBG, HOME and NSP1 projects
that are currently underway and will become additional enhancement of comprehensive on-
going efforts in these neighborhoods located in the targeted census tracts. These NSP2 these
units will carry truly affordable purchase prices and affordable rents in an areas where incomes
are low and affordable housing costs remain out of reach for many residents.
The Authority and its NSP2 participants will ensure that properties are discounted at least 1%
from the current appraised value, as well as encourage them to negotiate the best sales prices
for purchase. Purchase limits established by the Authority in NSP1 will be used for NSP2
participants shown in Table 15. The Authority will ensure that interest rates and terms are
reasonable and appropriate for low-to-moderate income beneficiaries. Rental projects will
follow the defined affordable rents initially and through the term of assistance, as shown in
Appendix 7 – Continued Affordability. In keeping with the HOME recapture model participants
will be receiving deferred, forgivable loans for a term of 5 or 10 years depending upon the
amount of NSP funds provided on a per unit basis. NSP requirements and affordability
restrictions will be enforced through restrictive covenants and other legal mechanisms.
Table 15 Purchase Price Limits
Beaufort County $255,645
Charleston County $228,712
Greenville County $201,465
Horry County $195,795
Richland County $180,144
NSP assisted properties must be rehabilitated to meet the minimum HUD Section 8 Housing
Quality Standards (HQS). The amount of rehabilitation on acquired units will not exceed
$25,000 per unit, not including energy efficiency items (Construction Standards have been
provided in Appendix 7).
Project Completion Schedule
The Authority submitted the NSP2 application on July 13, 2009. The Authority anticipates
receiving an award on December 1, 2009, which is the date we have based our timeline for
obligation and expenditures found in Table 16.
Table 16 NSP2 Schedule
Application Submitted to HUD July 13, 2009
Notification From HUD of Award December 1, 2009
Environmental Review Process Underway December 1, 2009
Executed Agreements with Participants December 15, 2009
Authority Debriefing from HUD December 31, 2009
Environmental Review Process Completed March 30, 2010
Authority’s benchmark for obligation of NSP2 at 20% April 30, 2010
Authority’s benchmark for obligation of NSP2 at 60% June 30, 2010
100% Obligation of NSP2 September 30, 2010
Authority’s benchmark for obligation of NSP2 at 60% June 30, 2010
50% Complete and Expended December 1, 2011
100% Complete and Expended December 1, 2012
NSP2 Close Out December 1, 2012
The Authority will establish within each participant’s agreement a program schedule that will
provide specific dates documents, processes, or items must be completed. The Authority’s
NSP2 Participants will return a completed a Start-Up Package by December 29, 2009 this
includes a process of re-verification of projects, budgets and identified addresses. The
Authority will supply each participant a NSP Program Management Manual and conduct
ongoing technical assistance meetings for participants that will begin January 15, 2010. Within
the first month of NSP2 participants will establish the appropriate filing systems and accounting
systems/bank accounts for NSP2. By February 28, 2010, the 504 plan, re-verification of the
list of potential homebuyers and tenants, audit certification form, section 3 summary report
form, housing counseling plan, new construction requirements, and rehabilitation projects will
be submitted to the Authority for review and approval. Final financial commitments from other
funding sources should be submitted by March 30, 2010. It is anticipated that the 2009
developments receiving NSP2 funds will begin construction by April 30, 2010.
Income Targeting for 120% & 50% of AMI
The requirement to provide benefits to persons whose income does not exceed 120 percent of
area medium income, and the requirement that 25% of the grant must be used for the
purchase and redevelopment of abandoned or foreclosed upon homes or residential properties
that will be used to house individuals or families whose income does not exceed 50% of the
area medium income has been established through the initial commitment made by each
NSP2 participant. A range of documentation, to include “income verification” of beneficiaries
must be obtained by participants and must be readily available prior to closing for
homeownership or rental. On an on-going basis, each participant will be monitored to ensure
that the targeted income chosen by the participant is being served. The Authority will not allow
activities to be carried out that deviate from the initial agreement made between the Authority
To ensure continued affordability, NSP2 participants will be required to provide prior to closing
for homeownership or completion of rental units documentation demonstrating that
beneficiaries are eligible and all necessary documentation has been obtained. Additionally,
restrictive covenants will be executed and recorded on each property by the participant within
forty-five days of closing for homeownership or completion of rental units. These processes
will be monitored throughout the affordability period by the Authority NSP staff (See Appendix
7 for Continued Affordability).
Consultation, Outreach, Communications
The Authority’s partnership with NSP2 participants has proven to be an immediate and
effective means of meeting the outcome and objectives of NSP in the respective jurisdictions.
The participants, all of which are already advocates for the targeted areas, have established
relationships with interested parties and with those whom the activities in this proposal may
involve directly or indirectly. The Authority will ensure that all courses of action taken during
this process will not be without the proper authority to do so. The availability of housing for
ownership or rental will be publicized in newspapers of general circulation, minority media, and
by other suitable means. To reach people who cannot read, fact sheets will be distributed to
broadcasting media and also to personal contacts with members of the news media and
community service personnel. Additionally, other service providers will be contacted and
informed of eligibility factors and guidelines so they can make referrals. Interested parties will
be able to access our web-site which will make available information pertaining to program
design, opportunities and the necessary contact information for information that that fluctuates
and/or that varies based on targeted areas. To ensure complaints are responded to in a timely
manner, contact information will be provided on all outreach sources which will include our
non-discrimination policy. All complaints will be responded to within 15 days of the date the
complaint was made.
In accordance with the State’s Citizen Participation Plan, which can be found in the 2006-2010
South Carolina Consolidated Plan, the State provided opportunity for citizen input on the
Authority’s Intent to apply for NSP2 funds.
A draft of the NSP2 Intent was posted to the following agency websites:
1. South Carolina State Housing Finance and Development Authority website:
www.schousing.com and in the
2. South Carolina Department of Commerce website:
A copy of the public notice and summary has been provided as Appendix 5.
Performance and Monitoring
The Authority has provided a detailed process for oversight and monitoring as a part of the
NSP Program Management Manual. Monitoring will consist of NSP staff supervising activities
in progress as well as through out the long term affordability periods to ensure they are on-
course and on-schedule in meeting the objectives and performance targets. Additionally, it is
the primary tool used to ensure activities will be carried out in accordance with executed
documents, applicable regulations, and program requirements. Chapter 10 of the NSP
manual addresses the tools used to oversee and monitor recipient’s files, documentation, and
ongoing program obligations.
Oversight and monitoring is necessary even for the most effective and efficient recipient with
records of strong past performance. Problems can develop due to staff changes within an
organization or because of a simple oversight due to human error. There are many reasons
for monitoring. The Authority will rate and rank a recipients risk level based on the following
areas (the rating scale is still under construction):
1. Participant expresses and understands NSP regulations as well as other federal housing
0 understands 1 experiencing difficulties
2. Participant has been provided extensive training on forms and NSP manual and still provides
0 understands 1 experiencing difficulties
3. Participant will be evaluated on meeting the Program Schedule provided as a part of the written
agreement for those unable to meet timeframes in the first 6 months.
0 meets deadlines 1 experiencing difficulties
4. Performance reporting
0 meets deadlines 1 experiencing difficulties
The above rating process is a snapshot of the participant’s overall performance and will
measure the participant’s ability to properly operate within NSP2. The rating process also
provides the Authority with a system that can be applied consistently in evaluating all
participants’ success in meeting objectives. Additionally, it will assist the Authority in
identifying recipients that are at high risk and potentially may fall short of fulfilling stated goals
NSP Participants should expect an onsite review with their designated Authority
representative within the first few months of execution of grant agreement. These meetings
will serve the purpose to review progress, monitor files and provide technical assistance. In
addition, the Authority will rely on the monthly Performance Report and information required
for submission to monitor and ensure appropriate progress.
Reviews to determine compliance with specific requirements such as the written agreement
will be conducted as necessary, with or without prior notice to the recipient. Comprehensive
performance reviews will be conducted after prior notice to the recipient. A recipient’s
performance will be comprehensively reviewed periodically, as prescribed by the Authority, to
determine if the recipient has committed and expended funds in accordance with the executed
grant agreement and has met the requirements of this part, particularly eligible activities,
income targeting, and affordability. In addition to oversight and monitoring the Authority is
addressing the critical importance of accountability and transparency as a priority with regard
to the use and expenditure of the NSP funds. The primary goals will be to ensure that
accountability and transparency of NSP funds are met as stated below:
• To ensure that recipients and uses of all funds are transparent to the public, and that the
public benefits of these funds are reported clearly, accurately, and in a timely manner;
• To ensure that NSP funds are used for authorized purposes and every step is taken to
prevent instances of fraud, waste, error, and abuse;
• To ensure that Projects funded avoid unnecessary delays and cost overruns; and,
• Recipients programs meet specific goals and targets, and contribute to improved
performance on broad economic indicators.
Upon the completion of NSP grant awards and the expenditure of all NSP funds in
conformance with program guidelines, the recipient enters the final phase known as grant
close-out. The close-out process actually encompasses a series of activities that together
verify that NSP funds have been properly spent and that the recipients complied with all
applicable rules and requirements in the implementation of its program. In addition, the
timeliness with which the recipient completes the close-out process, and the content of the
information presented during that process, is a factor in the evaluation of future applications for
Authority administered funds. Recipients will be expected to carry out the project as proposed.
The proposed activities should be completed and the proposed beneficiaries should be served
prior to project close-out.
Long-term monitoring ensures compliance with requirements related to rents, income of
tenants, affirmative marketing and fair housing, the condition of the property, and
resale/recapture provisions. This type of monitoring begins when NSP project funds have
been expended and the project is completed. It is relevant for rental, homebuyer and land
Preparation for a Monitoring Visit
Steps taken when preparing for a monitoring visit:
1. The Authority will notify the recipient in writing of the intent to conduct an on-site
monitoring. The letter will identify the person conducting the monitoring, the date and time,
as well as which grants will be monitored.
2. Authority staff will use the Monitoring Tool Checklist, a form provided in the NSP
Program Management Manual when conducting reviews.
3. The recipient must make sure that the files are complete, consistently organized and
insuring that the appropriate people in the recipient’s organization are available for the
4. The Authority will follow-up the monitoring visit with a letter outlining any findings, concerns,
corrective action and recommendations, as a result of the monitoring visit.
5. The recipient must respond to any findings and/or advisory concerns in the monitoring letter
within the time period indicated in the letter.
Factor 4 Leveraging of Funds
To further impact the targeting tracts, the Authority and it’s participants will provide leveraging
funds to work in conjunction with the $29,413,802 being requested. The Authority encouraged
a minimum match of 10-15% of the amounts budgeted for the proposed activities. Based on
availability of funds the Authority along with their participants are providing the following funds
in the amount of $7,911,167. Attached in Appendix 2 are the letters of commitment from the
following participants listed in Table 17.
Table 17 Match
Agency Providing Match Source of Leveraging Amount Letter
Greenville County Redevelopment CDBG/HOME; In-Kind Labor and
Authority Service for Demo
Non Federal County Fund
Richland County Government $500,000.00 Yes
Beaufort Housing Authority Agency Funds & County Funds $125,000.00 Yes
Value of Housing Counseling &
Myrtle Beach Housing Authority $3,490.00 Yes
Community Assistance Provider, Inc. Agency Funds $ 190,930.00 Yes
City of Columbia Cash Match from General Funds $507,492.00 Yes
Loan Capital Investments & In-
Lowcountry Housing Trust $5,350,000.00 Yes
City of Greenville CDBG/Bank Financing $466,255.00 Yes
The Authority will continue to encourage leveraging of additional funding sources and other
forms of investment throughout the process of funding for NSP1 and NSP2 in order to have the
greatest impact on the neighborhoods affected.
Removal of Substantial Negative Effects
All of the census tracts targeted in this proposal are suffering from the substantial negative
effects of the foreclosure crisis. In accordance to “The Impacts of Foreclosures on Families
and Communities” prepared by the Urban Institute (May 2009) foreclosures and vacant
properties impact neighborhoods and their surrounding communities in three ways. 1)
Declining property values, 2) Crime, social disorder, and population turnover, and 3) Local
government fiscal distress and deterioration of services. In certain situations where the
number of foreclosed and vacant units are few and not concentrated, only minimal steps are
needed to achieve stabilization. However, in areas such as the ones targeted in this proposal
with high concentrations and large numbers of foreclosed and vacant properties, strong
secondary effects over flow into nearby communities creating a domino effect of negative after
shocks. The negative impacts contaminating these areas are dramatic. It will take the
investment of NSP 2 in conjunction with leveraged funds to remove these negative effects and
effectively respond to the crisis at hand. The transformation of 228 NSP eligible properties into
affordable housing units will make a profound reduction in the removal of the negative effects
of the foreclosure crisis affecting the targeted census tracts.
Factor 5 Energy Efficiency
The results of utilizing Energy Efficiency specifications can be measured in overall savings
and improvements in lowering utility costs (savings on energy bill), improving comfort
(improves home performance), increasing project value (improves marketability), reduces air
pollution and improves the environment. The idea of using energy efficient products is a long
term investment as it will result in savings and increased financial stability.
The Authority in partnership with HUD will require NSP2 participants to use Energy Star
qualified products and practices when conducting rehabilitation and new construction activities
for NSP2 projects. New housing constructed with NSP funds must meet the standards of the
1992 Model Energy Code, or higher. In addition, all new construction must meet the following
Energy Efficiency practices. Energy efficiency practices will also be adopted for rehabilitation
projects where allowable in design.
Below are the following Energy Saving Designs each participant will be required to use when
conducting new construction and rehabilitation activities for NSP2 projects:
● Water Flow Saving Devices
● Ceiling Fans and Energy Star lighting controlled by a wall switch– Living Room & all
● Permeable Paving where appropriate
● Programmable Thermostats
● Hot Water Pipe Insulation
● Minimize Glass on East/West Exposure
● Window Overhangs
● Energy Star Appliances -- refrigerators, dishwashers, and hot water heaters
● Energy Star rated windows
● Energy Star rated HVAC systems (14 SEER or greater)
● Multifamily Rental--Energy Star lighting in all common area corridors, stairwells &
Sustainable design or “Green Building Design" is an opportunity to use our resources
efficiently while creating healthier buildings. It provides cost savings through improved human
health and productivity, lower cost building operations, and resource efficiency--and it moves
us closer to a sustainable future. Participants will also be required to utilize the following
Green Building Designs when conducting rehabilitation and new construction activities for
● Recycled Insulation ● Dimmable Lights (In Common Area)
● Recycled Sheet Rock ● Motion Sensor Light Switches
● Water Efficient Landscaping ● Recycled Material Carpet/Flooring
Additionally, Green Practice is another main focus for participants when conducting
rehabilitation and new construction activities for NSP2 projects. Essential to Green Practices
is providing homeowners or renters orientation to the advantage of green practices and a
”Green Maintenance Guide” that explains the intent, benefits, use and maintenance of green
building features, and encourages additional green activities such as recycling, gardening and
use of healthy cleaning materials.
Participants will be required to utilize the following practices when conducting rehabilitation and
new construction activities for NSP2 projects:
• Sustainable Landscaping • Local Source Materials.
• Energy Efficient Landscaping lighting?? • Green Label Certified Floor Covering
• Efficient Irrigation • Sealing Joints.
• Durable Materials • Termite-resistant Materials
• Resource Efficient Materials • Tub and shower Enclosures -- Moisture
• Heat Absorbing Materials Prevention
Although the majority of South Carolina is considered rural, the targeted census tracts are all
located in urban areas that provide public transit. They include portions of Charleston County,
Greenville County, Richland County, Beaufort County and Horry County.
The targeted census tracts for Charleston County area are located in or near the core of urban
activity to allow beneficiaries access to the bus lines, interstate highways, and major job
centers. All tracts are located within 10 minutes of a major amenity or job center. Sites
proposed in Greenville along the South West Corridor have access to Greenville Transit
Authority buses, also known as Greenlink. These areas are also located within ½ to ¾ mile of
major transit bus routes so buses are within walking distance. Bus routes run directly to the
central business district and the main Transit Authority. The targeted census tracts have
access to transportation, as well as medical facilities, shopping, parks, playgrounds, schools
and community centers. Construction is underway for a greenway that will link all
neighborhoods along the Swamp Rabbit Trail. Richland County’s targeted census tracts are
all located within access to the mass transit bus system as well as multiple community and
retail facilities. Targeted census tracts in Beaufort have limited transportation throughout the
county via the Lowcountry Regional Transit Authority; however they do offer an “on-demand”
service. Additionally these targeted census tracts are centrally located to shopping, schools
and government services. The targeted census tracts for Horry County include properties that
are located within close proximity to the “The Coast RTA” which is the public transportation
system for Horry and Georgetown counties, including the Myrtle Beach area.
Green Building Standards
All NSP2 participants will be encouraged to meet or exceed the Energy Star requirements.
Participants will be provided a copy of the HUD’s guidebook, Building ENERGY STAR New
Homes and Incorporating Energy Efficiency and Green Building Practices into HOME-Funded
Re-use of Clear Sites
This proposal does not include demolition as a stand alone activity. All sites upon which
demolition of blighted structures occurs will be redeveloped with affordable housing units.
NSP2 participants are encouraged to salvage and re-use materials during redevelopment
(demolition) activities, to seek methods of utilizing re-usable materials when possible, and to
communicate to contractors the importance of deconstruction practices as it pertains to
financial savings and environmental conditions. NSP2 participants and contractors are
encouraged to work with the Sustainability Institute (a non-profit organization commitment to
green building and energy efficiency) to learn about green building practices, to upgrade
homes to improve energy standards, and to further understand the cost savings and what
construction methods can easily improve energy standards.
Other Sustainable Development Practices
NSP2 participants are required to adhere to the aforementioned Energy Saving Designs,
Green Building Designs and Green Practices when conducting activities for NSP2 projects.
Factor 6 Neighborhood Transformation & Economic Opportunity
The Authority certifies that the proposed NSP2 activities are applicable to addressing the
states “priority needs” as identified in the State of South Carolina’s Consolidated Plan for
Housing & Community Development for Program Years 2006-2010. The State’s identified
“Priority Needs” and the activities proposed in this NSP2 application are consistent with one
another. As a result of citizen participation and interagency coordination, the three “Priority
Needs” have been identified in the State’s plan are as the following:
1. Affordable Housing – Priority need number one is to provide decent and affordable
housing to all persons. Homeownership is considered an American Dream and is vital to
strengthening communities. By providing down payment assistance, many are able to
become first time home owners. In addition, the need for rehabilitation and repair is
also a chief housing concern, especially as the housing stock ages. Repair and
rehabilitation present opportunities to create new affordable housing units through the
reuse of existing structures. This application is proposing the acquisition and
rehabilitation of 228 foreclosed and abandoned units to create affordable housing units
and up to $20,000 amount per unit of down payment assistance for home buyers.
2. Economic Development - Priority need number two is to encourage and create
economic opportunities through job creation and downtown revitalization. Job creation is
a concern, particularly with the high unemployment rate in SC. Downtown
redevelopment helps stabilize local economies, helps communities become more
vibrant and sustainable, and creates an environment for attracting and retaining local
businesses, residents and jobs. Stabilizing and revitalizing the targeted neighborhoods
of greatest need with NSP2 funds will attract businesses back into these areas which
will in turn create jobs.
3. Suitable Living Environment – Priority need number three is to support the
development of viable communities that provide a safe and suitable living environment.
It is important that all persons have a safe and suitable living environment. It is vital that
low and moderate income persons have clean drinking water, safe roads, elimination of
slums and blight in their neighborhoods and access to all of the basic requirements for
everyday living to ensure improved quality of life. The rehabilitation or elimination of
slums and blighting conditions is important in reducing and ultimately eliminating the
threat of dilapidated structures and unsafe conditions. The re-occupancy of the vacant
units and demolition of blighted structures in the targeted areas will make an instant
impact on the quality of life for the residents in those communities by reducing crime
and vagrancy, stabilizing property values and improving the overall living conditions for
the targeted areas.
Housing needs are a significant component in relation to community and economic
development needs. Without adequate and affordable housing, communities are not able to
meet resident’s needs nor are they able to attract jobs and industry to grow. Housing is an
important indicator in the health of a community and the quality of life. There is an
interdependence of housing and community and economic development, if one is poor or in
decline, sooner or later the other will follow.
Investments in a community in turn spur economic growth, which results in an increased
quality of life for its residents. The amount of resources available in today’s economy limit the
State’s ability to undertake all the strategies outlined in the plan. The addition of NSP2 funding
greatly increases the State’s ability to accomplish the desired goals provided in the
consolidated plan and will enable the Authority and its participants to produce measurable
outcomes. If funded, NSP2 dollars will add an additional 203 units immediately, with
approximately an additional 60-70 units from land banking over the next 10 years, of affordable
housing units for residents in the targeted areas, stabilize the neighborhoods located in the five
regions of greatest need, and create much needed job opportunities for residents.
The proposed NSP2 activities will have a dramatic impact on the effectiveness of the State’s
consolidated plan. Undertaking NSP2 activities will result in the absorption of a large amount
of housing stock and significantly impact the revitalization of major urban areas. For several
years local jurisdictions have begun to use code enforcement and condemnation to clean up
blighted, derelict properties. This activity is often a necessary first step to spur economic and
community growth back into these neighborhoods after significant disinvestment of businesses
with rapid job loss created a flight from these urban cores. NSP2 funding could truly ignite the
elimination of blight and vacancy in these neighborhoods and spur additional economic
investment across the areas. NSP2 funds could be key to securing and saving affordable
housing in these areas as investors look to purchase land and properties in this slow economy
for long term high end housing to be developed in the future as the urban areas become more
desirable places to live. The influx of NSP2 dollars will provide South Carolina with the
additional resources needed to meet the needs and accomplish the goals set forth the in the
consolidated plan. A copy of the consolidated plan can be accessed at the following web
SF-LLL, Disclosure of Lobbying Activities
Appendix 1 Code of Conduct
Appendix 2 Leveraging Documentation
Appendix 3 Executed Certifications
Appendix 4 Calculations of Removal of
Appendix 5 Summary of Citizens Comments
& URL Plan Posting
Appendix 6 Targeted Census Tracts
Appendix 7 Definitions and Construction
Appendix 1 Code of Conduct
South Carolina State Housing Finance and Development Authority
Code of Conduct
THE LANGUAGE USED IN THIS DOCUMENT DOES NOT CREATE AN EMPLOYMENT
CONTRACT BETWEEN THE EMPLOYEE AND THE AGENCY. THIS DOCUMENT DOES
NOT CREATE ANY CONTRACTUAL RIGHTS OR ENTITLEMENTS. THE AGENCY
RESERVES THE RIGHT TO REVISE THE CONTENT OF THIS DOCUMENT, IN WHOLE OR
IN PART. NO PROMISES OR ASSURANCES, WHETHER WRITTEN OR ORAL, WHICH
ARE CONTRARY TO OR INCONSISTENT WITH THE TERMS OF THIS PARAGRAPH
CREATE ANY CONTRACT OF EMPLOYMENT.
Ethics and Fraudulent Acts
Employees of the Authority are “public employees” and are therefore subject to the provisions
of the Ethics, Government Accountability and Reform Act of 1991 (including any amendments
to the “Ethics Act”), as well as any regulations, rulings or guidelines adopted or issued by the
State Ethics Commission. Employees’ attention is particularly called to the provisions of Article
7 of the Ethics Act, entitled “Rules of Conduct”. Employees should refrain from conduct that
gives the appearance of impropriety. If an employee is unsure whether or not to engage in any
particular conduct or whether entering a particular business relationship is incompatible with
his/her employment by the Authority, the employee should contact his/her supervisor for
guidance. Authority employees at all levels are committed to the highest standards of moral
and ethical behavior. Fraud and dishonest acts are serious, sensitive and damaging. They can
lead to financial loss, bad publicity and loss of public trust. Fraudulent activity and dishonest
acts are prohibited. Employees are required to report suspected incidences of fraud or
dishonest acts involving other employees, commissioners or others doing business with the
Authority to the appropriate Authority official as indicated in Section 10.06. Authority
employees who engage in or fail to report suspected fraudulent or dishonest acts may be
subject to disciplinary action, possible criminal charges and/or civil action.
• Accepting food, lodging, or anything else, whether or not it has any value, from any
person who is a lobbyist or lobbyist principal, as defined by the Ethics Act
• Soliciting or accepting money or anything else (whether or not it has any value) for the
discharge of official duties
• Using his/her position with the Authority for his/her own benefit or for that of any
member of his/her immediate family or any business with which he/she or an immediate
family member is associated. This is considered a conflict of interest. The State Ethics
Commission has advised in a number of rulings/opinions that acceptance of meals, and
similar items must be weighed on a case-by-case basis to determine if it was given in
order to influence the discharge of one’s official duties. The recipient, donor, the type
and amount involved, and whether there are matters pertaining to the donor before the
Authority should be considered before acceptance of anything of value. The State
Ethics Commission has also ruled that state employees are not prohibited from
attending functions sponsored by vendors or other businesses that are provided to all
participants while attending conferences. If in doubt about a particular instance consult
your supervisor, legal counsel or internal audit. If in doubt and you are unable to consult
with someone else, decline the meal, gift, etc. Employees of the Authority with other
business interests are prohibited from doing business with the Authority (either as a
participant in one of the Authority’s programs or as a supplier of goods and services)
without the prior approval of the Executive Director. Such approval shall be granted or
withheld at the discretion of the Executive Director, but in all instances shall be withheld
if the employee-related business seeks to do business with the area of the Authority
where the employee works. In the event the Executive Director gives approval, the
employee is prohibited from contacting anyone within the Authority on behalf of the
Employees who terminate employment with the Authority may be prohibited from doing
business with the Authority for a period of one year following termination. As prescribed in the
State Ethics Reform Act, a former employee or former Commissioner may not conduct
business with the Authority for a period of one year if such employment involves representing
the employer or business before the Authority in matters that he/she directly and substantially
participated during his/her service on the Board or employment with the Authority. The law
does not specifically define directly and substantially but several advisory opinions of the State
Ethics Commission have addressed this. Directly indicates that the person had primary
responsibility with decisions affecting the business or employer, not secondary responsibility.
Directly and substantially would include making decisions effecting the particular business or
employer and would not include making decisions that effect an entire program or group of
businesses or employers. The State Ethics Reform Act also prohibits a Commissioner or
employee who participates directly in procurement to resign and accept employment with a
person contracting with the Authority if the contract falls or would fall under the
Commissioner’s or employee’s responsibilities.
FRAUDULENT ACTIVITY DEFINITION
Fraudulent activity or dishonest acts are intentional or deliberate acts to deprive the Authority
or another party of something of value, or to gain an unfair benefit using deception, false
suggestions, suppression of the truth or other unfair means that are believed and relied upon.
Fraud and dishonest acts can be internal, undertaken by employees or commissioners, or
external, committed against the Authority by persons outside the Authority. The act or activity
is usually unethical, improper and/or illegal. Examples include but are not limited to the
• Theft of an asset including but not limited to money, property, and information
• Falsification or alteration of paper or electronic documents
• Intentional concealment of facts and/or misrepresentation of events or data
• Acceptance of bribes, kickbacks, rebates, or other items of material value as
established by the Ethics, Government Accountability, and Campaign Reform Act of
1991 (including any amendments to the “Ethics Act”), as well as any regulations, rulings
or guidelines adopted or issued by the State Ethics Commission.
• Submission of false claims for goods or services not received by the Authority
• Inappropriate destruction of paper or electronic documents
• Activities forbidden by State and Federal laws and regulations
• Conflicts of interest. A conflict of interest occurs when you put yourself in any situation
that is or appears not to be in the best interest of the Authority. A conflict of interest
would prevent one from performing their job duties objectively. Employees should
remove themselves from any decision-making, which affects their personal economic
Authority employees at all levels are to set the tone for the intolerance of fraudulent activities
and dishonest acts. This tone can be achieved by establishing the proper controls and by
complying with laws, rules, regulations, and policies. Managers and directors are responsible
for establishing and maintaining controls and procedures in their area of responsibility that will
provide for the protection and accountability of the resources entrusted to them. These
controls and policies should be established with an awareness of the risks and exposures to
which those resources are subject.
When employees have a reasonable basis for suspecting that fraudulent activities or dishonest
acts have occurred, they are responsible for reporting the incidents. Employees, acting in
good faith, who report suspected acts, are protected from retaliation from Federal and State
laws. However, any employee found to be making frivolous or unfounded claims under this
policy, will be subject to disciplinary action. Employees are not to proceed with investigations
or confront a suspect on their own. Any employee reporting a suspected incident of fraud
should not discuss the matter with anyone other than the person to whom the incident was
reported or those investigating the allegations. Information relative to investigations is
confidential and should be discussed only on a need to know basis. This is important in order
to protect those reporting the suspected incident and to prevent damaging the reputation of
those suspected that might be found innocent of wrongdoing.
• Internal Fraud and Dishonest Acts
Internal fraud and dishonest acts are those committed by employees of the Authority. All
cases of suspected internal fraud must be reported to the Internal Auditor. Suspected acts can
be reported in person or anonymously. However, when reporting suspected incidences
anonymously, sufficient details of the suspected wrongdoing must be provided to allow
investigation. Information provided must include the name of the person(s) suspected of
wrongdoing, date(s) of incident, description of incident and any other pertinent information. If
the suspicion is founded, the Internal Auditor will report the incident to the Executive Director
and/or the Board Finance and Audit Committee depending on the employee(s) suspected of
wrongdoing and the seriousness of the wrongdoing. For example, if the employee suspected
is other than the Executive Director, it will be reported to the Executive Director, if the
suspected employee were to be the Executive Director, it would be reported directly to the
Board Finance and Audit Committee.
• External Fraud and Dishonest Acts
External fraud and dishonest acts are those committed by parties external to the Authority.
The employee suspecting the fraud must report it to either their supervisor or their department
manager. The supervisor or department manager will report the incident to the Internal Auditor
along with their assessment of whether or not the matter should be investigated further. The
Internal Auditor and the department manager will together determine if further investigation is
The Internal Auditor has primary responsibility for investigation of suspected fraudulent activity
and dishonest acts. However, especially in instances of suspected external fraud, a team will
be established to review and/or investigate the allegations. The team will be established with
the advice and consent of the Executive Director and/or the Board Finance and Audit
Committee as deemed appropriate (based on magnitude and the person(s) suspected of
committing the fraud). The team members will be designated on a case-by-case basis. One or
more employees with a thorough understanding of the program or area involved will normally
be included on the team. However, when necessary, consultants specializing in a needed field
may be engaged. The team will consult with legal counsel in each instance and if necessary
outside counsel will be engaged. For suspected cases of internal fraud, the Director of Human
Resources will be a team member. All team members will be required to keep all information
confidential to the extent legally allowable. Once a team is established, a work plan for the
investigation will be established and roles and responsibilities will be defined. The Internal
Auditor will be responsible for maintaining a central file of all materials related to the
investigation. Team members are responsible for forwarding all related documents to the
Internal Auditor. The team will meet at least once a week during the preliminary phases of an
investigation. As the investigation progresses, meeting times will be adjusted accordingly. Not
only is the team to determine if fraud or a dishonest act occurred, they are to determine how it
occurred and what action can be taken to prevent a similar incident in the future. The Internal
Auditor has the authority to access, copy and examine any and all items on the premises of the
Authority, including data stored on any Authority computer or in Authority storage facilities
when it is within the scope of an investigation. This access may be without the prior consent or
knowledge of the individual who may have use of or custody of the items. If the suspected
fraud is believed to exceed $1,000, the Internal Auditor will periodically communicate with the
Board Finance and Audit Committee and/or the full Board of Commissioners, the status of the
investigation. At the conclusion of the investigation, the results will be communicated orally
and/or in writing depending on the circumstances. If the internal investigation substantiates
fraud or other criminal acts, the Internal Auditor and legal counsel will turn the investigation
over to the proper law enforcement agency. The team members will work with and cooperate
with law enforcement personnel in completing their investigation. The team will select one
team member to be the primary contact for the law enforcement personnel during their
investigation. This will usually be either primary contact for the law enforcement personnel
during their investigation. This will usually be either the Internal Auditor or legal counsel. The
results of the investigation will be reported in writing except in those instances where there is a
legitimate reason not to do so. Legal counsel and other appropriate parties will be consulted
before a written report is produces and/or released.
If an employee is found to have committed a fraudulent or dishonest act(s), disciplinary action
will be taken and criminal or civil action may also be taken. The disciplinary action taken can
be up to and including termination. The Internal Auditor does not have the authority to take
disciplinary action. Disciplinary action will be taken and administered by the appropriate
supervisory employee and the Director of Human Resources. The appropriate disciplinary
action and possible criminal or civil action will be determined after consultation with legal
counsel, the Executive Director and/or the Board of Commissioners as deemed appropriate. If
a third party is found to have committed fraudulent or dishonest acts involving the Authority,
action will be taken to terminate any current or future association with that party. Also, criminal
or civil action may be taken. The appropriate action will be determined in consultation with
legal counsel, the Executive Director and the Board of Commissioners. Criminal and/or civil
action may be taken against those that commit a fraud against the Authority. The decision to
take legal action must be authorized by the Board of Commissioners.
Use of Equipment, Supplies and State Records
Equipment, supplies, State records and similar resources belonging to the Authority are to be
used solely for conducting official business. Any employee who violates this policy will be
subject to disciplinary action.
It is the responsibility of all employees to ensure that all State and Authority property is not
abused, misused, or removed from the premises to which it has been assigned. All employees
will sign out for equipment and be responsible for the equipment as long as it is in their
possession. Employees will be required to sign the following statement; “I understand that I will
return the equipment in the same condition as I received it. I agree that I will reimburse the
Authority for any equipment that is lost or damaged while signed out to me.”
South Carolina State Housing Finance and Development Authority employees can be assured
that personnel records on each employee are maintained in compliance with legal and ethical
requirements for information access and control. Human Resources maintains an individual
personnel folder containing the employment application, notice of personnel actions, reports of
injury, attendance and leave records, evaluations and other related documents for each
employee. All personnel files are confidential. An employee’s personnel file shall be made
available for the employee’s review upon request. These records are property of the Authority
and are placed on file as a permanent record.
Subject to reasonable access by supervisory personnel, employees’ desks and files, including
computer files, may not be entered without the permission of the employee in question.
The verbal and/or telephonic communications of employees may not be recorded, intercepted,
or listened to without the knowledge and permission of the employee being recorded or
In accordance with the Federal Drug-Free Workplace Act of 1988, the Authority has
established this policy regarding the work-related effects of drug use and the unlawful
possession of controlled substances on the Authority’s premises.
Employees are expected and required to report to work on time and in appropriate mental and
physical condition for work. It is the intent and obligation of the Authority to provide a drug-free,
healthful, safe, and secure work environment. It is Authority policy that employees shall not be
involved in the unlawful manufacture, use, possession, sale, or transfer of drugs or narcotics in
any manner that may impair their ability to perform assigned duties or otherwise adversely
affect the image of the Authority. Any employee who is convicted of acquisition, possession, or
distribution of drugs or alcohol illegally will be disciplined appropriately. If there is a reasonable
suspicion that an employee is working under the influence of alcohol or drugs, the employee
may be asked to submit immediately to a drug test. A positive drug or alcohol test may result in
disciplinary action up to termination. However, if the employee enters and successfully
completes the Vocational Rehabilitation Job Retention Program, or an acceptable alternative,
no disciplinary action will occur as long as the employee performs assignments safely and
efficiently. Refusal to participate in an alcohol or drug test or to enter the Job Retention
Program or an acceptable alternative will result in immediate removal from the job site and
may result in termination. Sale or other transactions involving illegal drugs or alcohol on or off
the Authority premises is prohibited. Employees are required to notify the Agency in writing of
any criminal drug statute conviction for a violation occurring in the workplace no later than five
calendar days after such conviction. Failure by the employee to notify the Agency as stated
may result in disciplinary action up to termination.
The Authority acknowledges that alcoholism and drug addiction are treatable social illnesses.
Employees with such problems may voluntarily submit themselves for professional help
through the Job Retention Program of the Department of Vocational Rehabilitation or an
acceptable alternative for any alcohol or drug problem will not jeopardize an employee’s job.
However, participation in a treatment program will not relieve an employee of the responsibility
to perform assigned duties safely and efficiently. Employees must, as a condition of
employment, abide by the terms of the above policy and report any conviction under a criminal
drug statute for violations occurring on or off agency premises while conducting agency
business. A report of a condition must be made within five days after the conviction to the
Authority’s Human Resources Director. Criminal conviction means a finding of guilt, and
imposition of a sentence, a plea of no contest, or a plea of guilty. Non-work-related drug
convictions may result in disciplinary action, up to and including termination. Each case will be
reviewed and action will be taken for individual circumstances.
Sexual and/or Other Harassment
It is the policy of the Authority to provide for all its employees a work environment free from
harassment and intimidation. Each member of management is responsible for creating an
atmosphere free from harassment and all employees are responsible for respecting the rights
of co-workers. The Authority will take immediate and appropriate corrective action when it
learns of an employee engaging in unwelcome advances, requests for sexual favors, verbal or
physical conduct of an unacceptable nature, or any other conduct that might be construed as
racial, sexual, ethnic, religious, or any other type of harassment that has the effect of creating
an intimidating or hostile work environment. Any such behavior will be considered as
misconduct and will be subject to immediate review when reported, and appropriate
disciplinary action up to and including dismissal will be taken in accordance with the Authority’s
progressive discipline policy. All questions or complaints regarding sexual and/or other
harassment or improper advances should be brought to the attention of the Director of Human
An employee who feels that he/she has been a victim of sexual and/or other harassment must
take the following steps:
1. Report the incident to the immediate supervisor or, when appropriate, to the next
supervisor in the chain of command, or to the Director of Human Resources.
2. Do not discuss the complaint with anyone other than the person to whom the complaint
was reported or with those who are officially investigating the complaint.
The Authority will thoroughly and expeditiously investigate all harassment complaints in a
confidential manner. The Authority will make every attempt to questioning any witnesses and
the individual(s) accused of wrongdoing to afford them the opportunity to respond to the
allegations of the complaint. The investigating authority will collect, record, and safeguard all
information and/or evidence relative to the incident and report the finding to Human Resources
and the Executive Director for final disposition.
The Authority will take appropriate disciplinary action on a case-by-case basis based on the
facts. Disciplinary action, up to and including dismissal, will be taken in accordance with the
Authority’s progressive discipline policy. No reprisals or prejudicial actions will be taken against
any employee reporting a complaint. However, this provision is not intended to protect any
employee who knowingly makes false accusations or false statements during an official
The Authority has a zero tolerance policy regarding acts or threats of violence in the
workplace, which includes violence committed by or against the Authority employees or
members of the public (customers and visitors). Acts of violence in the workplace will be
investigated and violators will be dealt with accordingly, including dismissal from employment
and/or arrest and prosecution.
The Authority defines violence, threats and intimidation to include, but not limited to:
• Hitting or shoving an individual.
• Threatening to harm an individual or his/her family, friends, associates or property,
including physical and verbal threats or gestures reasonably perceived to be harmful to
another individual or to endanger the safety of an individual.
• Making harassing or threatening telephone calls, sending letters, or other forms of
written or electronic communications.
• Harassing surveillance (stalking), which is the willful, malicious and repeated following
of another person and/or making a threat with intent to place the other person in
reasonable fears of his/her safety.
• Making a suggestion or otherwise intimating an intent to injure persons or property.
• Unauthorized possession or inappropriate use of firearms, weapons, or any other
dangerous devices on any property that the Authority owns or leases.
• Acting in a manner that management deems inappropriate to the workplace.
• Telling offensive jokes or making comments regarding participation in violent events.
1. If the act constitutes a severe emergency, call 9-911immediately.
2. If the situation is potentially violent, representatives from the Legal Division, Human
Resources, and the immediate supervisor will convene to investigate and assess the
3. Any employee who experiences or witnesses such acts, conduct, behavior, or
communication must immediately contact his or her supervisor and the Director of
Human Resources. The employee may complete a Workplace Violence Incident Report
to be submitted to the employee’s immediate supervisor, Human Resources, or an
appropriate person upward in the supervisory chain.
4. Any supervisor who receives a complaint of violence, threats, or harassment, or
who has reason to suspect that these acts or behaviors are occurring, must
5. Upon being informed of an allegation of violence, threat, or harassment, the Director of
Human Resources or other designated officials will investigate the matter in as
confidential a manner as possible.
6. Upon the conclusion of the investigation, the agency will determine how to respond. The
reporting employee will be notified of the outcome of the investigation and the employee
will be advised of any corrective or preventative action taken.
Appropriate disciplinary action, up to and including dismissal and/or prosecution, will be taken
in instances of misconduct, as identified by the Authority. Employees who had knowledge of
violence, threats, or harassment but did not act consistent with this procedure will be subject to
appropriate disciplinary action. An employee will not be retaliated against by the Authority for
reporting incidents of violence, threats, or harassment.
This Nepotism Policy is adopted as a matter of sound management and to carry out the spirit
of the state ethics act which prohibits public employees from using their employment, directly
or indirectly, to obtain an economic benefit for a member of their immediate family as defined
in the Act. The following guidelines will be used to determine the application of this policy:
• Employees may not supervise or manage a family member.
• Family members may not work within the same department. For the purpose of this
policy, the term department refers to individual program areas which fall under the
supervision of a Deputy Director or a member of the Executive Staff.
• Family members of employees designated as Executive Staff and other positions that
may be designated by the Executive Director may not work at the agency.
• Employees may not participate in an action relating to the discipline of a family member.
DEFINITIONS For the purposes of this policy:
“Family Member” means an individual who is the spouse, parent, brother, sister, child, mother-
in-law, father-in-law, son-in-law, daughter-in-law, grandparent, grandchild, sibling-in-law,
grandparent in-law, step-child, step-grandchild, niece or nephew of the employee or a member
of the employee’s household or a member of the individual’s immediate family. For the
purposes of this policy, the agency recognizes common-law marriage and the relationships
that are created as a result.
“Immediate family” means:
(1) A child residing in the employee's household;
(2) A spouse of the employee;
(3) An individual claimed by the employee or the employee's spouse as a dependent for
income tax purposes. The Executive Director or their designee may determine the
application of this policy to family relationships not mentioned in this policy.
Employees are expected to disclose a relationship covered by this policy to their Department
Director and the Director of Human Resources whenever the relationship comes into
existence. Employees who marry will be allowed up to 90 days after marriage to transfer to a
position in another department within the agency (if available) or find employment outside of
the agency. After 90 days if the employee has not been selected for a position in another
department, one of the married employees must resign. If neither married employee resigns,
the Executive Director or their designee will terminate one of the employees at their discretion.
Supervisors are cautioned not to recommend the hiring of an individual that would result in the
violation of this policy.
While the agency cannot prohibit dating in the workplace, it is considered ill advised for
employees who work together to enter into a romantic relationship. The agency will take
measures to ensure no favoritism or abuse of privilege results from any romantic relationship
between employees. Such measures may include, but are not limited to, the relocation within
the agency of one or both employees. If a supervisor and subordinate enter into a romantic
relationship, the agency reserves the right to review all employment actions taken by the
supervisor with respect to the subordinate and if the agency determines that action was taken
because of the romantic relationship, the agency may rescind the action. The burden will rest
on the supervisor to demonstrate that the action was not related to the romantic relationship. If
favoritism or abuse of privileges does result from such a romantic relationship, the employees
may be disciplined in accordance with the agency’s Progressive Discipline policy up to and
THIS POLICY SHALL APPLY TO PERSONNEL ACTIONS OCCURRING ON AND AFTER
JUNE 11, 2007 AND SHALL NOT APPLY RETROACTIVELY.
Solicitation and Distribution
PURPOSE AND SCOPE
The purpose of this policy is to provide fair and equitable treatment to all private agencies,
vendors, companies, charitable organizations, representatives, employees and/or individuals
desiring to promote and solicit services, contributions, products, programs, or distribute
materials to SC State Housing Finance and Development Authority employees. In order to
maintain and promote efficient operations and protect staff from unwanted solicitations as well
as prevent interruptions in daily routines in the workplace, the agency has established rules
applicable to all employees which govern solicitation, the distribution of written and electronic
materials and entry into premises and work areas.
EXTERNAL VENDOR SOLICITATION
• No solicitation will be accepted on a walk-in basis.
• No vendor, individual, or representative shall be permitted to contact or meet with
employees during core work hours nor will they be allowed to distribute literature or any
materials during core work hours except with the written approval of the Human
Resources Director or their designee.
• A written proposal describing the services, products, or programs to be offered must be
presented to the Human Resources Director for approval to determine if they appear to
be beneficial to a significant number of employees. The agency will not assume any
responsibility as to the validity or reliability of the vendor’s services, products, or
programs. When a program is authorized for presentation to employees, the Director of
Human Resources will provide the representative with an official letter outlining the
parameters for the meeting and the distribution and position of literature.
• All printed materials to be distributed must be in compliance with Section 38-57-45 A &
B of the South Carolina Code of Laws.
• The awarding of door prizes and/or free gifts to employees if prohibited.
• The agency shall permit only those agencies, vendors, companies, representatives,
and/or individuals whose organizations are approved state vendors and/or are
authorized by the Comptroller General’s Office for payroll deduction to solicit
• The unauthorized solicitation of employees may result in the company or representative
being denied future access to employees as provided under this policy.
EMPLOYEE SOLICITATION For-profit Solicitation:
• The for-profit solicitation of commercial goods and the distribution of written promotional
materials and/or electronic communications via e-mail by employees on agency
property in working and non-working areas during working time is prohibited. Working
time is the time an employee is expected to be engaged in their official job duties.
• Promotional materials should not be distributed or displayed in any designated work
area or in the common break room.
• For-profit solicitation will be allowed for the purpose raising funds for employee reward
and recognition events with prior approval by the Executive Director.
• Employees may solicit co-workers only when representing not-for-profit organizations.
Employees are expressly prohibited from utilizing any type of coercive behavior or
methods to solicit donations or sales. This extends to face-to-face solicitation and
distribution, telephone calls or electronic communications via e-mail.
• The solicitation of one employee by another is not permitted during their scheduled work
hours and/or during the scheduled work hours of the employee(s) at whom such activity
• Materials should not be distributed or displayed in any designated work area. Agency
employees may place fundraising information in the common break room only.
Employees participating in solicitation activities in violation of this policy will be subject
to disciplinary action under the provisions of the agency’s Progressive Discipline policy.
NOT-FOR PROFIT AGENCY CAMPAIGNS
• The agency may allow for fund raising activities by charitable organizations which are
certified by the Secretary of State. Any fund raising activities must be approved by the
Executive Director or their designee and conducted under agency supervision.
Political Activities - The Hatch Act
The political activity of certain employees of the Authority is restricted by the provisions of Title
5, Chapter 15 of the U.S. Code (the “Hatch Act”). In order to be subject to Hatch Act
restrictions, an employee’s salary does not need to be paid from federal funds. If an employee
exercises a function in connection with federally financed activities, that employee is subject to
the provisions of the Hatch Act. All employees of the Authority who are engaged in any activity
connected with a program financed in whole or in part by federal funds are subject to
provisions of the Hatch Act.
1. Employees subject to the Hatch Act may not use their official authority or influence for the
purpose of interfering with or affecting the result of an election or a nomination for the
public office; directly or indirectly coerce, attempt to coerce, command or advise a State
officer or employee to pay, lend, or contribute anything of value to a party, committee,
organization, agency, or person for political purposes; or be a candidate for elective office
in a partisan election.
2. Employees subject to the Hatch Act may express their opinions on political subjects and
candidates; take an active part in political management and political campaigns, i.e., serve
at polls, volunteer work, circulate petitions, be a candidate in nonpartisan elections.
3. Federal definition of partisan political activity is an election and the preceding campaign
where candidates are nominated or elected as representing a party whose candidates
received votes for presidential elector in the last preceding election at which presidential
electors were selected; or a question which is specifically identified with a National or State
political party or (a political party of) a territory or possession of the United States.
Questions relating to constitutional amendments, referenda, approval of municipal
ordinances or others of a similar character are deemed nonpartisan.
With prior approval of the Executive Director, an employee of the Authority may offer as a
candidate in partisan election, if, but only if, his or her candidacy does not violate the Hatch
Act. All political activity undertaken by an employee of the Authority must take place during off-
duty hours. An employee may use annual leave in accordance with the Authority’s annual
In order to obtain approval from the Executive Director, an employee must obtain an advisory
opinion from the U.S. Merit System Protection Board that his/her candidacy is permitted under
the provisions of the Hatch Act. This required opinion is available by written request to:
U.S. Merit System Protection Board Office of Personnel Management Office of Special
Counsel 1120 Vermont Avenue, N.W. Washington, DC 20005.
Should an employee fail to obtain prior approval of the Executive Director prior to offering as a
candidate in a partisan election, the following disciplinary action will apply:
1. If it is determined that the employee is covered by the Hatch Act, his/her employment
will be terminated.
2. A written reprimand will be issued if it is determined the employee is not covered by the
Appendix 2 Leveraging Documentation
Appendix 3 Executed Certifications
Appendix 4 Calculations of Removal of
Calculations of Removal of Negative Effects
The Authority’s calculation is as follows:
Total Number of NSP2 Acquisition/Rehabilitation: 108
Total Number of NSP2 Demolition: +25
= 133 x 1.5 = 199.5 Value
Based on the Census Tract Data for SC from (HUD.User.gov) the number of census tracts that
qualified are provided in the table below = 2,693
Final Calculation: 199.5/2,693 = .076%
Tract Code County County name Census Tract Total 90 Day Vacant
45013000200 013 Beaufort County 000200 95
45013000500 013 Beaufort County 000500 287
45013002100 013 Beaufort County 002100 493
45013002200 013 Beaufort County 002200 319
45019002609 019 Charleston County 002609 0
45019003700 019 Charleston County 003700 172
45019004000 019 Charleston County 004000 115
45019004601 019 Charleston County 004601 0
45045000900 045 Greenville County 000900 122
45045001301 045 Greenville County 001301 123
45045002105 045 Greenville County 002105 246
45051051500 051 Horry County 051500 0
45051051602 051 Horry County 051602 2
45051060201 051 Horry County 060201 0
45051060202 051 Horry County 060202 0
45079000200 079 Richland County 000200 128
45079000300 079 Richland County 000300 137
45079000500 079 Richland County 000500 114
45079010101 079 Richland County 010101 0
45079010303 079 Richland County 010303 13
45079010600 079 Richland County 010600 327
45079011409 079 Richland County 011409 0
Appendix 5 Summary of Citizens
Comments & URL Plan Posting
2009 Neighborhood Stabilization Program (NSP2) Competitive Application
During the public comment period, which ran from June 17, 2009 to July 3, 2009, the Authority
accepted comments and questions regarding the NSP2 intent to apply for funding.
The Authority received requests for clarifications, comments and questions regarding the
NSP2 Public Comment Posting, which included the intent to apply, the specific targeted
census tracts and general amount of funds to be requested. Clarifications were provided and,
as appropriate, included in the final NSP2 Application.
Among the comments made were the following:
• The Authority received questions in regards to applying for NSP2 funding which did not
fall within the targeted census tracts.
Response provided: Authority staff directed parties interested in other locations of the
state to contact HUD regarding application submission.
• The Authority received a number of questions regarding the vacancy and foreclosure
Response provided: Authority staff explained how the index system worked with
regard to those census tracts that qualified by producing a score of 18 or better.
South Carolina Housing Finance and Development Authority
Copy for Public Notice Ad to be published Monday, June 17, 2009
Public Notice Regarding South Carolina State Housing Finance and Development
Authority’s Application Request for Neighborhood Stabilization Program 2 Funds.
Notice is hereby given that the State of South Carolina proposes to submit a application for
the Neighborhood Stabilization Program 2 (NSP2) under the American Recovery and
Reinvestment Act of 2009 to the US Department of Housing and Urban Development (HUD).
The Authority’s NSP2 application will meet HUD’s statutory requirements for South Carolina to
receive funding allocations from four HUD programs: 1) Community Development Block Grant
Program administered by the SC Department of Commerce, Grants Administration; 2) HOME
Investment Partnerships administered by the SC State Housing Finance and Development
Authority; 3) Emergency Shelter Grants administered by the Governor’s Office, Office of
Economic Opportunity; and 4) Housing Opportunities for Persons with AIDS administered by
the SC Department of Health and Environmental Control, STD/HIV Division.
The application proposed is to facilitate receipt of the NSP2 funds for the State to arrest the
affects of foreclosed homes.
Public review and comment are encouraged during the 15-day comment period that begins
June 17, 2009 and will end July 3, 2009. A copy of what the Authority is proposing is available
for public review during normal business hours at the Department of Commerce and the South
Carolina State Housing Finance and Development Authority. In addition, the proposed
Amendment will be available on the Internet at: www.schousing.com and
For more information or to request a copy of the Amendment, please contact Nancy Fairley,
email firstname.lastname@example.org, or call (803) 896-9001/TTY (803) 896-8831. Written
comments regarding the Amendment may also be submitted to this address through July 3,
The State of South Carolina does not discriminate on the basis of age, race, color, religion,
sex, national origin, familial status or disability in the admission or access to, or treatment or
employment in, its federally assisted programs or activities.
Appendix 6 Targeted Census Tracts
Targeted Census Tracts
County Community(ies) Census Tract Vacancy Max
Windemere Springs, Seminary Ridge, Harlem
1 Richland Heights, Keenan Terrace, Hyatt Park, & 45079000200 20
Columbia College Neighborhood
Northwood Hills, Eau Clarie, Belmont, Prescott
2 Richland 45079010600 20
Manor, North 21 Terrace, and CABB Island
College Height, BW Heights, Colonial West,
3 Richland Latimer Maner, and Booker Washington 45079000500 20
Bethel Bishop-Chappelle, Burton, Golden
4 Richland Acres, Standish, College Place, and Harlem 45079010900 20
Summit, Elders Pond, Copperfield, Briarcliff
5 Richland 45079011409 20
Estates, Winchester, Northeast Area,
Martin Luther King, Lyon, Waverly, Gonzales
6 Richland 45079001300 20
7 Richland Irmo Area 45079010303 20
8 Richland Northeast Area 45079010101 20
9 Horry Socastee 45051051500 20
10 Horry Socastee 45051051602 20
11 Horry Forestbrook 45051060201 20
12 Horry Carolina Forest 45051060202 20
13 Greenville Sterling, Brandon, Judson 45045002106 20
14 Greenville Southernside, West Greenville 45045000700 20
15 Greenville Nicholtown 45045001301 20
16 Greenville Sterling 45045002105 20
17 Greenville Southernside 45045000900 20
18 Charleston East Side 45019000900 20
19 Charleston Whipper Barony 45019003700 20
20 Charleston West Ashley 45019002609 20
21 Charleston Mount Pleasant 45019004601 20
22 Charleston Dorchester Terrace 45019004000 20
23 Beaufort Shell Point Community 45013000500 20
24 Beaufort Burton, Pinewood, Irongate Subdivisions 45013000200 20
25 Beaufort Sawmill Forestt Subdivision 45013002200 20
26 Beaufort Buckwater Parkway Area Community 45013002100 20
Average Max Score 20
Census Tracts By Responsible Entitiy Activity
NSP2 Allocation Request
Responsible Entity for each Use # of NSP Activity Delivery Total
& Activity Activity Type Outcome Units Acquisition Cost Demolition Cost Rehabilitation Cost New Construction Cost Development Cost
Community Assistance Providers Targeted Census Tracts 0002.00, 0005.00,
0013.00, 0106.00, 0109.00, & 0114.09
Community Assistance Providers Acqu/Rehab 120% RT 10 $ 784,225.00 $ 250,000.00 $ 257,000.00 $ 1,291,225.00
Community Assistance Providers Acqu/Rehab 50% RT 5 $ 269,535.00 $ 125,000.00 $ 106,000.00 $ 500,535.00
Richland County Government 0106.00, 0101.01, 0103.03, 0109.00, & 0114.09
Richland County Government Acqu/Rehab 120% HO/RT 18 $ 1,566,000.00 $ 450,000.00 $ 504,000.00 $ 2,520,000.00
Richland County Government Acqu/Rehab 50% HO/RT 7 $ 609,000.00 $ 175,000.00 $ 196,000.00 $ 980,000.00
City of Columbia Targeted Census Tracts 0106.00 & 0013.00
City of Columbia Redevelopment 50% HO 8 donated $ 926,000.00 $ 185,200.00 $ 1,111,200.00
City of Columbia Redevelopment 120% HO 12 donated $ 1,561,976.80 $ 338,752.80 $ 1,900,729.60
Lowcountry Housing Trust, Inc. Targeted Census Tracts 0037.00, 0040.00,
0026.09, 0046.01, & 0009.00
Lowcountry Housing Trust, Inc. Acqu/Rehab 50% RT 15 $ 1,323,930.00 $ 337,500.00 $ 249,215.00 $ 1,910,645.00
Lowcountry Housing Trust, Inc. Acqu/Rehab 120% HO 10 $ 1,500,000.00 $ 100,000.00 $ 240,000.00 $ 1,840,000.00
Lowcountry Housing Trust, Inc. Acqu/Redevelop 120% RT 8 $ 1,163,424.00 $ 120,000.00 $ 2,098,800.00 $ 507,334.00 $ 3,889,558.00
Myrtle Beach Housing Authority Targeted Census Tracts 0515.00, 0516.02,
0602.01, & 0602.02
Myrtle Beach Housing Authority Acqu/Rehab 50% HO 3 $ 405,000.00 $ 75,000.00 $ 120,000.00 $ 600,000.00
Myrtle Beach Housing Authority Acqu/Rehab 120% HO 7 $ 945,000.00 $ 175,000.00 $ 280,000.00 $ 1,400,000.00
Beaufort Housing Authority Targeted Census Tracts 0002.00, 0005.00, 0021.00, &
Beaufort Housing Authority Acqu/Rehab 50% RT 2 $ 215,600.00 $ 50,000.00 $ 66,400.00 $ 332,000.00
Beaufort Housing Authority Acqu/Rehab 120% RT 4 $ 434,400.00 $ 100,000.00 $ 133,600.00 $ 668,000.00
Greenville County Redevelopment Authority Targeted Census Tracts 0021.05
Greenville County Redevelopment Landbanking 50% HO/RT $ 250,000.00
Authority $ 250,000.00
Greenville County Redevelopment Demolition $ 250,000.00
Authority 25 $ 250,000.00
Greenville County Redevelopment Acqu/Rehab 50% RT $ 210,394.00 $ 1,260,113.80
Authority 14 $ 699,719.80 $ 350,000.00
Greenville County Redevelopment Acqu/Rehab 120% RT $ 148,000.00 $ 888,000.00
Authority 9 $ 515,000.00 $ 225,000.00
Greenville County Redevelopment Acqu/Redevelop 50% RT $ 839,273.00
Authority 6 $ 129,395.00 $ 570,000.00 $ 139,878.00
City of Greenville Targeted Census Tracts 009.00, 0013.01, 0021.05, 0007.00
City of Greenville Acqu/Redevelop 50% RT 18 $ 475,000.00 $ 35,000.00 $ 2,153,632.00 $ 434,651.00 $ 3,098,283.00
City of Greenville Land Bank RT/HO 18 $ 711,161.00 $ 48,000.00 $ 149,342.00 $ 908,503.00
City of Greenville Acqu/Rehab 120% HO 4 $ 151,464.00 $ 100,000.00 $ 50,291.00 $ 301,755.00
TOTALS 228 $ 12,147,853.80 $ 453,000.00 $ 2,512,500.00 $ 7,310,408.80 $ 4,316,057.80 $ 26,739,820.40
Totals Per County Units Acquisition Rehab New Construction NSP Cost
Richland County 60 $ 3,228,760.00 $ 1,000,000.00 $ 2,487,976.80 $ 8,303,689.60
Greenville County 119 $ 2,931,739.80 $ 675,000.00 $ 2,723,632.00 $ 7,795,927.80
Charleston County 33 $ 3,987,354.00 $ 437,500.00 $ 2,098,800.00 $ 7,640,203.00
Beaufort County 6 $ 650,000.00 $ 150,000.00 $ - $ 1,000,000.00
Horry County 10 $ 1,350,000.00 $ 250,000.00 $ - $ 2,000,000.00
NSP2 Activities TOTAL NSP Cost $ 26,739,820.40 TOTAL NSP Units 228
Administrative Funds (10% of $ 2,673,982.00
Total Amount $ 29,413,802.40
$14,492,273.80 Units Acquisition/Rehabilitation Cost $ 14,492,273.80 Units 108
Redevelopment Cost $ 10,839,043.60 Units 52
$10,839,043.60 Units Landbanking Cost $ 1,158,503.00 Units 43
Landbanking Cost $1,158,503.00 Demolition Cost $ 250,000.00 Units 25
Homeownership Units 77
Demolition Cost $250,000.00 Units Rental Units 126
Units to serve ≤50% AMI Cost $ 10,882,049.80 Units 103
Appendix 7 Definitions & Construction
South Carolina State Housing Finance and Development Authority
NSP Definitions and Construction
Definitions/Program Requirements are provided as excerpts from the following chapters
with regard to eligible properties, continued affordability and construction:
(Taken From NSP Program Management Manual)
Chapter 2: Eligible Activities
The Neighborhood Stabilization Program (NSP) allows funds to support homeownership assistance,
rental, land banking, and public/commercial facilities by using one or a combination of the five (5)
eligible NSP activities. In addition, to improving these permanent residential structures, the
objectives of NSP are to serve beneficiaries whose income is at or below 120% of area median income
(LMMH). This chapter will explain and clarify the eligible activities and how this may affect what
Subrecipients (recipients) can do with different types of property. Also, provided are details for
allowable property types required to satisfy the requirement that 25% of the NSP funds are used to
house individuals or families whose incomes do not exceed 50% of area median income.
In general, recipients must limit their activities in any Eligible Use only to those property types
specifically cited. When combining uses (e.g. Acquisition and Rehabilitation under B with Financing
under A), the more restrictive classification applies. All definitions should be understood to apply
primarily to areas of greatest need or to constitute an improvement benefiting such areas
as part of the overall NSP program. In addition, all activities must meet the national objective of
benefiting low, moderate, or middle income persons; NSP recipients may not use slum and blight
removal or urgent needs as national objectives. All allowable NSP activities have been correlated
to eligible activities from the CDBG entitlement regulations (a chart correlating NSP citations and CDBG
citations has been provided at the end of this chapter).
Section 1 “Area of Greatest Need” Identified by the Recipient
NSP awarded recipients must be able to demonstrate that each activity is eligible under the Housing
and Economic Recovery Act §2301(c) (2) (HERA) to meet the (NSP) national objective. All recipients
have identified target areas that have been affected by the current housing market conditions. These
areas were determined by the following priority emphasis:
(A) with the greatest percentage of home foreclosures;
(B) with the highest percentage of homes financed by sub-prime mortgage related loan;
(C) Identified by the State or unit of general local government as likely to face a significant rise in
the rate of home foreclosures.
Section 2 Demonstrating Impact of NSP funds on the “Area of Greatest Need”
Each Recipient will demonstrate through the eligible activities and benefit to persons being served how
targeted “areas of greatest need,” will be impacted. To reach this goal the recipient will have to
accurately identify the property types that are eligible (i.e. foreclosed, abandoned etc.) and accurately
use the correct activities (acquisition, new construction, or rehabilitation etc.).
In meeting NSP goals each recipient must complete one or more of the following actions to stabilize
and affect those designated “areas of greatest need”:
1. Rental Housing
3. Land banking with a specific end use
4. Cleaning Up Blight
5. Public Facilities
Section 3 Correctly Identifying Properties
An initial step is to determine if the property falls within a category explicitly authorized in the NSP
statute and/or requirements. Generally, if a property type does not fall within a category explicitly
authorized, the property is considered ineligible. This section defines and clarifies property eligibility
requirements. Eligible properties types vary and are dependent upon the types of activity(s) being
undertaken. Each recipient will be responsible for completing the Property Determination Form,
provided as Attachment 2-1, to appropriately demonstrate for each type of identified property the
correct documentation to ensure compliance and proper record maintenance.
HUD interprets “homes” as any type of permanent residential dwelling unit, such as detached single
family structures, townhouses, condominium units, and multifamily rental apartments (covering the
entire property). In addition, to these properties types vacant land that is currently designated for
residential use, e.g. through zoning. However, “Vacant properties” includes both vacant land and
properties with vacant structures on the land. However, HUD understands redevelopment of these
vacant properties to imply that properties were once developed; therefore undeveloped or “greenfield”
sites may not be acquired for the redevelopment activity. Manufactured housing is ineligible under
the NSP program unless it is determined to be blighted and demolished.
The first identified eligible property for the NSP program is foreclosed property which is the main
property type that has been defined by HUD as meeting the following parameters: A property “has
been foreclosed upon” at the point that, under state or local law, the mortgage or tax foreclosure is
complete. HUD generally will not consider a foreclosure to be complete until after the title for the
property has been transferred from the former homeowner under some type of foreclosure
proceeding or transfer in lieu of foreclosure, in accordance with state or local law (short sells are
not considered eligible foreclosed properties under this definition). Each recipient in determining a
properties eligibility as foreclosed will provide documentation demonstrating that it was transferred
from the former homeowner under foreclosure proceedings. The following are considered to be
acceptable to document foreclosure status: (1.) Order of Sale, (2) Master’s Report, or (3.) Deed
(New Deed, Master’s Deed, Clerk of Court Deed, Master’s in equity Deed, or Special Referees
The second identified eligible property type is abandoned. When a recipient is dealing with an
abandoned property it must meet all three of the following parameters as defined by HUD:
1. A home is abandoned when mortgage or tax foreclosure proceedings have been initiated for
2. No mortgage or tax payments have been made by the property owner for at least 90 days;
3. AND the property has been vacant for at least 90 days.
The third identified eligible property type is blighted. Blighted structures are those properties
that exhibit objectively determinable signs of deterioration sufficient to constitute a threat to human
health, safety, and public welfare. The recipient will provide evidence that the structure is in fact
blighted and is in a substandard condition and a threat to public health and safety on the Property
Determination Form. In addition, to completing the Property Determination Form,
Recipients must provide documentation that the structure exhibits at least one or more major
structural or system deficiencies based on Section 8 HQS or a more stringent local code. Also, the
recipient will provide front and back photos of the property prior to demolishing and a building
inspection report or other evidence that describes the specific condition of slum or blight and how
the activity to be assisted with NSP funds will eliminate the blighted condition.
The last property type allowed by HUD for the NSP program is vacant properties. As discussed
earlier in this section vacant properties are residential or commercial that are unoccupied and not in
use (free from any activity). Only those vacant properties are eligible for redevelopment that was
once developed. Vacant properties that are simply undeveloped or “greenfield” sites are not
eligible NSP properties.
3.5 Purchasing Eligible Properties
In consideration of purchasing eligible properties recipients must ensure they have addressed all
the appropriate requirements related to the purchase of the property. In purchasing the property
the recipient must address and document the following:
1. In acquiring eligible NSP properties the recipient is required to determine the current market
appraised value and purchase the property from the seller at a fifteen percent (15%)
discount (Section 2301(d) (1) of HERA).
2. Follow the relocation requirements concerning “Notice to Seller.” (See guidance for
addressing relocation requirements in Chapter 7).
3. Complete an appraisal within ninety days of closing the property. (See guidance for
completing appraisals as provided in Chapter 7).
In addition to the 15% discount, recipients when purchasing single family properties can not
exceed the purchase price limits set by the Authority that are provided as Attachment 2-2,
Single Family Purchase Price Limits.
3.6 Construction Requirements of Eligible Properties
NSP assisted properties must be rehabilitated to meet the minimum HUD Section 8 Housing Quality
Standards (HQS) and meet federal, state, and local code requirements for new construction. For
the purposes of construction management, Recipients will follow the NSP construction requirements
located in Chapter 6 of this manual. Where local codes and standards apply, properties must
meet applicable codes/standards. All recipients are encouraged to use funds for improving energy
efficiency or construction, or providing renewable energy sources(s) whenever possible.
[Energy Efficiency Section is UNDER CONSTRUCTION]
In addition, properties will comply with the Community Development Block Grant (CDBG) Lead-
Based Paint requirements. The Lead Based Paint requirements/guidelines consist of written
notification via brochure notifying tenants and potential homebuyers of dangers of lead-based paint
poisoning. All beneficiaries must read and sign the documentation prior to occupying the property.
Refer to Chapter 9 of this manual, which provides guidance on compliance with Lead-Based Paint
Section 4 Eligible Activities
In conjunction with determining whether the property is eligible the recipient will determine if the
activity to be completed falls within a category explicitly authorized in the NSP statute and/or
requirements. The following section identifies and clarifies the allowable eligible uses for the NSP
program. In addition, a Quick Reference Guide has been provided at the end of Chapter (Table
4.1 Financing Mechanism (Section§2301(c)(3)(A)-HERA)
Financing mechanisms involve providing direct assistance to the homebuyer in the acquisition of a
foreclosed or abandoned residential property. These financing mechanisms can include the
following (but are not limited to):
1. Soft-second loans are deferred forgivable or repayable.
2. Loan loss reserves;
3. And shared-equity loans.
Recipients participating in the Financing mechanism are required to follow all the affordability
requirements as provided in Chapter 3. In addition, these loans will be secured with mortgages
and restrictive covenants that clearly identify for the homebuyer the following:
• the timeframe of affordability;
• what happens in the event the homeowner sales the unit prior to the completion of
affordability (in which all or a portion of the NSP funds will be recaptured and considered
• The property will be maintained by the household as their principal residency.
4.2 Purchase and Rehabilitation (Section §2301(c)(3)(B)-HERA)
Recipients that are participating in the activity of purchase and rehabilitation must decide prior to
these transactions the use with respect to selling for the purpose of homeownership or for these
properties to serve as rentals. NSP program allows recipients to purchase and rehabilitate
residential homes and properties that have been abandoned or foreclosed upon, in order to sell,
rent, or redevelop such homes and properties. In addition, if the recipient chooses to purchase and
rehabilitate for the purpose of homeownership then they can combine this activity with the
financing mechanism activity. However, in choosing homeownership as an end use the
recipient must be aware that within six months (6) months of completion of the
rehabilitation the unit must be sold to an eligible homebuyer or the unit will
automatically revert to the rental use for the entire period of affordability.
4.3 Land Banks (Section §2301(c) (3) (C)-HERA)
NSP recipients are given the option when purchasing foreclosed residential homes or blighted
properties that due to current market conditions cannot be sold or rented to establish land banks
for future developments.
Land banks must be established as governmental or nongovernmental nonprofit entities, at least in
part, to assemble, temporarily manage, and dispose of properties for the purpose of stabilizing
neighborhoods. Land banks will operate in a specific, defined geographic area.
Recipients may not hold a property in this established land bank for more than ten years without
obligating the property for a specific, eligible redevelopment in accordance with NSP requirements.
As such, the Recipient must determine the actual services or benefit from the land banks activity.
Holding the property alone is not sufficient to demonstrate that the recipient has stabilized the
targeted/defined geographic neighborhood.
HUD has established that in pursuing the land bank activity NSP funds may only be used for
acquisition and the ongoing maintenance of the property. NSP funds may not be used at a later
date for redevelopment of these properties.
4.4 Demolition Section (Section §2301(c) (3) (D)-HERA)
NSP recipients may participate in the demolition of blighted structures (residential or commercial) in
those targeted areas effected by foreclosure that impacts the area by decreasing the potential for
additional slum and blight due to those existing foreclosed units. A structure is blighted when it
exhibits objectively determinable signs of deterioration sufficient to constitute a threat to human
health, safety, and public welfare. Recipients must understand that the national objectives related
to prevention and elimination of slums and blight as addressed in CDBG is not applicable to NSP-
assisted activities. Recipients must document clearly that the blight affecting the defined
geographical “areas of greatest need,” is an effort to stabilize the foreclosed neighborhood by
elimination of blight. The, Property Determination Form, provided as Attachment 2-1, is to
be completed for determining blight. This activity does not involve the purchase of the property.
4.5 Redevelopment(Section §2301(c) (3) (E)-HERA)
Redevelopment of demolished or vacant properties will only be used for the purpose of new
construction. It is expected that once properties are acquired and improved under this eligible
activity, Recipients must proceed expeditiously to construction. HUD allows recipients to address a
broad range of property types that can be redeveloped. Properties to be redeveloped are not
limited to homes and/or residential properties. HUD will permit recipients to acquire and redevelop
ANY property type. This includes commercial or industrial property in addition to all types of
residential property. HUD does however limit the use of NSP funds used for new construction to
produce only residential units or public facilities. It is only eligible to redevelop a property for a
commercial use if the construction is funded by another funding source. In addition, properties
acquired under Redevelopment need not be abandoned or foreclosed upon but must be vacant.
“Vacant properties” includes both vacant land and properties with vacant structures on the land.
However, HUD understands redevelopment to imply that properties were once developed; therefore
undeveloped or “greenfield” sites may not be acquired under this activity as sited above in section
3.4 vacant properties.
4.6 Activity Set-Up Form
As discussed earlier in Chapter 1, Section 6, recipients provided to the Authority a start up package
that provided the units that were initially identified. It is understandable that as the program
progresses that some of the selected properties may change and new qualified properties will
replace them. These new units as identified by the recipient will have to meet all NSP
requirements and in addition, recipients will have to complete the Attachment 2-3 Activity Set-
Up Form. The Activity Set-Up Form is to be completed for units that in all likelihood will be
moving forward as NSP-assisted units. The form is to be submitted as site control is obtained on
properties so that the information needed specific the particular address can be provided to input
into the DRGR system. In most cases this form will submitted on an ongoing basis throughout the
obligation period as you obtain site control on the NSP properties funded under each activity.
Section 5 Sale of Homes
Recipients that are providing the end use to benefit potential homebuyers must follow the appropriate
requirements when disposing of the property to those individuals who qualify. At the time of closing
the home must be completed with the appropriate certificates of occupancy and receive a final
approval of inspection from the NSP staff.
Homes must be sold to an individual as a primary residence, and such sales shall be in an amount
equal to or less than the cost to acquire and redevelop or rehabilitate the property up to a decent,
safe, and habitable condition. (Sales and closing costs are eligible NSP redevelopment or rehabilitation
costs.) The maximum sales price for a property is determined by aggregating all costs of
acquisition, rehabilitation, and redevelopment (including related activity delivery costs, which generally
may include, among other items, costs related to the sale of the property).
Section 6 Applicable NSP Regulations
The proper classification of each assisted activity by one of these categories of eligibility is important
because the Federal regulations place very different requirements on the various eligibility categories.
As outlined by the HERA the chart below outlines the activities that are NSP eligible and the
corresponding CDBG regulations. The chart, however, does not define for recipients certain key
terminology that aid in identifying eligible properties in accordance with the requirements of the NSP.
Table 2.1 recapitulates the “NSP Eligible Uses” in section 4 of this chapter and provides relevant
definitions and additional guidance which describes the property type(s) in section 3 in this chapter
that are eligible for NSP activities.
Cross Linked NSP Regulations
Type of NSP Eligible Uses Corresponding CDBG Regulations
Homeownership (A) Establish financing mechanisms for • As part of an activity delivery cost
and Rental purchase and redevelopment of for an eligible activity as defined in 24
foreclosed upon homes and residential CFR 570.206.
properties, including such mechanisms • Also, the eligible activities listed
as soft-seconds, loan loss reserves, and below to the extent financing
shared-equity loans for low- and mechanisms are used to carry them
moderate-income homebuyers. out.
Homeownership (B) Purchase and rehabilitate homes • 24 CFR 570.201
and Rental and residential properties that have (a) Acquisition
been abandoned or foreclosed upon, in (b) Disposition,
order to sell, rent, or redevelop such (i) Relocation, and
homes and properties. (n) Direct homeownership assistance
(as modified below);
• 24 CFR 570.202 eligible
rehabilitation and preservation
activities for homes and other
residential properties (HUD notes that
rehabilitation may include counseling
for those seeking to take part in the
Homeownership (C) Establish land banks for homes that 24 CFR 570.201(a) Acquisitions and
and Rental have been foreclosed upon. (b) Disposition.
Green Space (D) Demolish blighted structures • 24 CFR 570.201(d) Clearance for
blighted structures only.
Homeownership (E) Redevelop demolished or vacant • 24 CFR 570.201(a) Acquisition,
and Rental and properties (b) Disposition(c) Public facilities and
public facilities improvements,
(e) Public services for housing
counseling, but only to the extent that
counseling beneficiaries are limited to
prospective purchasers or tenants
of the redeveloped properties,
(i) Relocation, and
(n) Direct homeownership assistance
(as modified below).
• 204 Community based development
Chapter 3: Affordability Requirements
NSP regulations require that residential NSP-assisted units that are sold, rented or redeveloped remain
affordable to individuals and families during the affordability period. NSP-assisted units funded must
be occupied by households or individuals that have annual incomes that do not exceed 120% of area
median income. NSP-assisted units designated for the 25% set asides requirement must be occupied
by households or individuals that have annual incomes that do not exceed 50% of area median
income. NSP-assisted units must meet the affordability requirements for the entire length of the
affordability period. The length of the period of affordability is dependent upon the amount of NSP
funds expended on the unit.
Section 1 Income and Rent Limits
NSP income and rent limits are updated and provided by the Authority based on HUD’s annual updates
(typically early April). Limits are listed by county and household size and are effective for a specified
period of time. NSP rent limits may increase and decrease over time, however owners of NSP-assisted
rental projects are not required to reduce rents below the NSP rent limit established at the time of
project commitment in the grant agreement which establishes what is called a “floor rent”. NSP
income and rent limits can be accessed at the Authority’s website at the following web address:
Section 2 Affordability Period
To meet the affordability requirements for rental and homeownership housing, the unit must be
occupied by an eligible beneficiary throughout the entire length of the affordability period. The length
of the affordability period is dependent upon the amount of NSP dollars invested in each unit.
NSP Assistance Per Unit Period of Affordability Terms
Investment ≤ $150,000 5 years 20% Forgiven each year
Investment ≥ $150,001 10 years 10% Forgiven each year
The affordability period for homeownership units is activated on the date the homebuyer’s closing
occurs. The affordability period for rental projects is determined by the completion of the project and
secured by the execution of the restrictive covenants by the owner at project completion. Restrictive
Covenants will be executed and recorded on the property by the recipient within forty-five days of
closing for homeownership or completion rental units.
If NSP funds are used to assist a property that was previously assisted with HOME funds, but on which
the affordability restrictions were terminated through foreclosure or transfer in lieu of foreclosure
pursuant to 24 CFR part 92, the Recipient must revive the HOME affordability restrictions for the
greater of the remaining period of HOME affordability or the continuing affordability requirements of
NSP. NSP Recipients are required to enforce the affordability requirements throughout the entire
period of affordability. Repayment of NSP funds is required if the housing does not meet the
affordability requirements for the required time period.
Section 3 Calculating Annual Income
NSP housing will qualify as affordable only if:
Units are occupied by households at or below 120% of AMI.
Units are occupied by households at or below 50% of AMI to meet the 25% set aside
3.1 Guide NSP Recipients Will Use:
NSP Recipients are responsible for determining an individual or household’s income eligibility by
calculating their annual household income using the Part 5 Definition as defined in 24 CFR Part 5.
Recipients are required to the information and forms provided in the “Technical Guide for
Determining Income and Allowances for the HOME Program” to make correct income
calculations. Copies of the guide can be accessed on the following web addresses:
The Authority web-site at http://www.schousing.com/index.asp?n=47&p=5&s=47
HUD’s website at http://www.hud.gov/offices/cpd/affordablehousing/library/modelguides/1780.pdf
3.2 Third Party Source Documentation:
Income must be verified using third party source documentation. Eligibility determinations are
based on the anticipated income for the upcoming year, not based on the earnings of prior years.
Recipients are responsible for retaining the income documentation for all beneficiaries provided NSP
assistance on file and available for review upon request. When making income determinations for
potential beneficiaries’, recipients must complete Attachment 3-1, Calculating Annual Income
Form, to document the determination of eligibility.
Note: The “Technical Guide for Determining Income and Allowance for the HOME
Program” provides information on all three allowable methods for calculating
annual income. NSP recipients are required to use the Part 5 method ONLY.
3.3 Timing of Income Certifications:
In cases when a homebuyer is entering into a contract to purchase housing that is to be
constructed, their annual household income must be certified and documented before the contract
is signed. When purchasing existing housing, the income must be certified and documented before
the closing occurs.
For households residing in NSP-assisted rental units, household income must be certified and
documented before executing the lease agreement and reexamined annually. Income certifications
are valid for six (6) months.
3.4 Housing Counseling Requirements:
NSP regulations require that all NSP-assisted homebuyers complete a minimum of eight (8) hours
of homebuyer counseling from a HUD-approved agency before obtaining a mortgage loan.
Homebuyers must obtain mortgage loans from lenders who agree to comply with the bank
regulators’ guidance for non-traditional mortgages.
Section 4 Occupancy Requirements
4.1 Homeownership Housing:
NSP Recipients must use the recapture provision to secure the NSP subsidy for the length of the
affordability period for each assisted homebuyer. NSP Recipients are required to use the
appropriate documents to secure the property and address affordability conditions, these NSP
Documents (Homeownership and Rental) are provided by the Authority as Attachments 3-
2a and 3-2b. The recapture provisions included in these documents ensures that all or a portion
of the NSP funds provided to the homebuyers are recaptured if the housing does not continue to be
the principal residence of the household for the duration of the affordability period.
Each year that the homebuyer occupies the NSP-assisted unit as their principal residence, a portion
of the subsidy provided for the property is forgiven. A beneficiary who sells the property during the
period of affordability may sell the home to any willing buyer at any price. Once the funds are
repaid according to the repayment formula (this formula is based on the prorated amount over the
life of the affordability i.e. if the recipient provided $20,000 for 5yrs and the unit was sold in the 2nd
year you would expect repayment of this prorated amount that did not meet the affordability
period.), the home is no longer subject to any restrictions. A restrictive covenant as well as loan
documents must be recorded on the property to ensure NSP requirements are met.
Homebuyer’s Rights: Recipients are responsible for providing potential homebuyer’s all information
regarding the recapture provision and any other applicable Federal and State laws pertaining to the
homebuyer’s rights in writing, and up front. It does not suffice to just have these issues
incorporated into loan documents or deed restrictions. These issues must be discussed and
understood by the potential homebuyer. Examples of these documents would consist of
information of the recipient’s program requirements, some form of application, letter of eligibility or
4.2 Rental Housing:
NSP Recipients are required to remain in compliance with the rent and occupancy requirements
throughout the entire length of the affordability period. The Recipient and/or owner will agree
that should the rent and occupancy requirements not be met, corrective actions will be enforced
and the Recipient/Owner will be suspended from participating in the other Authority programs until
such time that the project is in compliance and may be required to repay funds. Rent and
occupancy requirements will be enforced by a recorded restrictive covenant running with the
property. Covenants may be suspended upon transfer by foreclosure or deed in-lieu of foreclosure
to be determined at the sole discretion of the Authority.
Recipients are responsible for maintaining records documenting compliance with the rent and
occupancy requirements that will be maintained in the file set up known as a individual tenant case
file. Record retention beyond the required period of affordability is a minimum of five years.
Tenant leases must be on file, specifying a term of at least one year, unless by mutual consent, the
owner and tenant agree to a lesser term. Leases may not contain any of the prohibited lease terms
referenced Section 5 of this chapter. An owner may not terminate the tenancy or refuse to renew
the lease of a tenant except for serious or repeated violation of applicable Federal, State or local
law; for completion of the tenancy period for transitional housing; or for other good cause.
The owner must verify tenant eligibility at move-in and at least annually thereafter. Tenants must
certify to their anticipated income, family size, and composition. Third party income verifications or
other forms of documentation must be obtained by the owner and kept on file for review.
A family whose income increases above the NSP income eligibility guidelines should pay not less
than 30 percent of their adjusted monthly income or market rent. Once the unit becomes vacant it
must be marketed to income eligible tenants. The owner must keep all units in compliance with
HUD Uniform Physical Condition Standards (at the following web site
:http//www.hud.gov/offices/reac/library/lib_phyi.cfm#HANDBOOKs) and other pertinent building
codes to assure the units are decent, safe and sanitary at all times. Families receiving rental
assistance must not be refused tenancy in any NSP- assisted units.
For projects constructed before January 1, 1978 the owner must assure that all tenants receive a
copy of the lead-based paint pamphlet, “Protect your Family from Lead in Your HOME”,
provided as Attachment 9-1. In addition, recipients must ensure the execution of Attachment
9-X Receipt of Protect Your Family From Lead in Your Home Form which documents the
beneficiaries’ acknowledgement of the Lead Based Paint information provided in Attachment 9-1
and must be completed annually for rental housing tenant.
The owner must adhere to Equal Opportunity, Affirmative Marketing, and Fair Housing practices in
all marketing efforts and maintain a file that verifies all marketing efforts. Owners must solicit
applications for vacant units from persons in the housing market least likely to apply without special
outreach efforts. The Equal Housing Opportunity logo or statement must be used in all advertising
of vacant units. All these issue must be addressed in the recipients/owners Rental Management
Plan which describes the owners due diligence in adhering the above mentioned practices.
4.3 Additional Rent Limitations:
Every NSP unit is subject to rent limits. The maximum rents are referred to as “NSP Rents”.
1. Annually, the Authority will provide the updated established maximum monthly rent limits. The
maximum NSP rent amounts are the maximum amounts allowed prior to deducting
the amount of tenant paid utilities.
2. Tenants must be given 30 days written notice before increases are implemented. Any increases
are also subject to other provisions of the lease agreements.
3. NSP rent limits may decrease, however, rents do not have to decrease below the NSP rent limits
in effect at the time of project commitment (these are called floor rents) which are provided in
the grant agreement.
4. The Authority may permit adjustments to the rent structure if the financial feasibility of the
project is threatened. In these cases the owner is required to submit in writing the request for
review of feasibility.
1. Rent limitation. The Authority will provide the maximum NSP rent limits each year called the
NSP rents that provide for the 120% and 50% rent limits. These rent limits are recalculated on
an annual basis by HUD and provided to the Authority. Regardless of changes in fair market
rents and in median income over time, the NSP rents for a project are not required to be lower
than the NSP rent limits for the project in effect at the time of project commitment (floor rents).
2. Initial rent schedule and utility allowances. Recipients will establish and maintain maximum
monthly allowances for utilities and services (excluding telephone), which will be reviewed and
updated annually by the Recipient. The owners must update the utility allowance annually for
the rental projects and document the source of allowance or method used to derive the
allowance and it’s consistently across all units.
3. Nondiscrimination against rental assistance subsidy holders. The owner cannot refuse to lease
NSP-assisted units to a certificate or voucher holder under 24 CFR part 982— Section 8 Tenant-
Based Assistance: Unified Rule for Tenant-Based Assistance under the Section 8 Rental
Certificate Program and the Section 8 Rental Voucher Program or to the holder of a comparable
document evidencing participation in a HOME tenant-based rental assistance program because
of the status of the prospective tenant as a holder of such certificate, voucher, or comparable
HOME tenant-based assistance document.
4. Each Recipient’s rent limitations, restrictions and income targeting requirements will be
described in the recorded restrictive covenant documents that will be provided by the Authority
to be used by the recipient at project completion.
5. Any increase in rents for NSP-assisted units is subject to the provisions of outstanding leases,
and in any event, the owner must provide tenants of those units not less than 30 days prior
written notice before implementing any increase in rents.
6. Changes in fair market rents and in median income over time should be sufficient to maintain
the financial viability of a project within the NSP rent limits.
7. The income of each tenant must be determined initially prior to execution of the lease
agreement and each year during the period of affordability the project owner must re-examine
each tenant’s annual income in accordance with the Part 5 definition of calculating annual
8. Project- Based Units: In NSP units that receive Federal or State project-based rental subsidy
and the very low-income family pays as a contribution toward rent not more than 30 percent of
the family’s adjusted income, then the maximum rent (i.e., tenant contribution plus project
based rental subsidy) is the rent allowable under the Federal or State project based rental
4.4 Over-Income tenants:
NSP-assisted units will continue to qualify as affordable housing despite temporary noncompliance
caused by increases in the incomes of existing tenants if actions satisfactory to the Authority are
being taken to ensure that all vacancies are filled until the noncompliance is corrected. Tenants
who no longer qualify as low-income families must pay as rent the lesser of the amount payable by
the tenant under State or local law or 30 percent of the family’s adjusted income.
Section 5 Tenant Protections
Unless by mutual agreement between the tenant and the owner, all lease agreements must be for a
period of not less than one year. A copy of the lease agreement that will be used must be submitted to
the Authority for approval. (Copies of lease agreements are requested in the Start-Up Package). It is
the Recipients responsibility to notify the Authority for approval of any changes or revisions that are
made to previously approved lease agreements.
5.1 Prohibited Lease Terms:
Lease agreements for NSP-assisted units may not contain any of the following provisions:
1. Agreement to be sued. Agreement by the tenant to be sued, to admit guilt, or to a
judgment in favor of the owner in a lawsuit brought in connection with the lease;
2. Treatment of property. Agreement by the tenant that the owner may take, hold, or sell
personal property of household members without notice to the tenant and a court decision
on the rights of the parties. This prohibition, however, does not apply to an agreement by
the tenant concerning disposition of personal property remaining in the housing unit after
the tenant has moved out of the unit. The owner may dispose of this personal property in
accordance with State law;
3. Excusing owner from responsibility. Agreement by the tenant not to hold the owner or
the owner’s agents legally responsible for any action or failure to act, whether intentional or
4. Waiver of notice. Agreement of the tenant that the owner may institute a lawsuit without
notice to the tenant;
5. Waiver of legal proceedings. Agreement by the tenant that the owner may evict the
tenant or household members without instituting a civil court proceeding in which the
tenant has the opportunity to present a defense, or before a court decision on the rights of
6. Waiver of a jury trial. Agreement by the tenant to waive any right to a trial by jury;
7. Waiver of right to appeal court decision. Agreement by the tenant to waive the tenant’s
right to appeal, or to otherwise challenge in court, a court decision in connection with the
8. Tenant chargeable with cost of legal actions regardless of outcome. Agreement by
the tenant to pay attorney’s fees or other legal costs even if the tenant wins in a court
proceeding by the owner against the tenant. The tenant, however, may be obligated to pay
costs if the tenant loses.
9. Termination of tenancy. An owner may not terminate the tenancy or refuse to renew the
lease of a tenant of rental housing assisted with HOME funds except for serious or repeated
violation of the terms and conditions of the lease; for violation of applicable Federal, State,
or local law; for completion of the tenancy period for transitional housing; or for other good
cause. To terminate or refuse to renew tenancy, the owner must serve written notice upon
the tenant specifying the grounds for the action at least 30 days before the termination of
5.2 Tenant Selection Process:
Owners of rental housing assisted with NSP funds must adopt written tenant selection policies and
criteria. As part of the NSP Start-Up Package, written tenant selection procedures were submitted
for approval. Those selection procedures should be followed consistently throughout the
Compliant tenant selection procedures include the following criteria:
1. Are consistent with the purpose of providing housing for low and moderate-income families;
2. Are reasonably related to program eligibility and the applicants’ ability to perform the
obligations of the lease;
3. Provide for the selection of tenants from a written waiting list in the chronological order of
their application, insofar as is practicable; and
4. Give prompt written notification to any rejected applicant of the grounds for any rejection.
Section 6 Reporting and Record Keeping Requirements
Recipients must maintain documentation of the eligibility of all homebuyers and tenants residing in
each unit at the time of purchase, initial rent-up and through the end of the compliance period.
Recipients will be required to submit the Project Completion Report, provided as Attachment 3-3,
which provides information specific to the property/activity and to the beneficiary(s) occupying the NSP
unit. In addition, owners of NSP-assisted rental properties will be responsible for submitting the
Annual Occupancy Report, provided as Attachment 3-4, to the Authority each year for the
duration of the affordability period.
Recipients are responsible for correctly calculating and documenting the annual income of each
beneficiary assisted with NSP funds. Files for each assisted household or individual will be maintained
for a period of 5 years from the expiration of the affordability period. Beneficiary files documenting
annual income should contain the following documents:
Individual Housing Case Files: Homeownership
• A completed copy a Calculating Annual Income Form, provided as Attachment 3-1
• 3rd party source documentation dated no later than 6 months from the date of income certification
that verifies all applicable types of income and assets.
• Certification of completion of a HUD-approved 8 hour Housing Counseling Class
• Recorded Copies of NSP documents that ensure affordability requirements are met to include Loans
and or Restrictive Covenants
• Recorded copies of the documents for the first mortgage and the conditions and terms
• Copy of HUD-1 Settlement Statement
• Individual Housing Case Files: Rental
• A completed copy a Calculating Annual Income Form, provided as Attachment 3-1
• 3rd party source documentation dated no later than 6 months from the date of income certification
that verifies all applicable types of income and assets
• Copy of the lease application
• Copy of the lease agreement(s)
• Copy of Annual Income Recertification
• Copy of Property Standard Inspections Report for unit occupied
Chapter 6: Construction Management
Construction management under NSP requires certain procedures to be followed in order to comply
fully with applicable federal and state requirements. This chapter describes the policies and procedures
that must be followed during the construction management process such as procurement, contracting
and labor standards.
These provisions shall be known as the Neighborhood Stabilization Program (NSP) Construction
Purpose & Scope
The South Carolina State Housing and Finance Development Authority (Authority) has provided this
manual for the purposes of establishing the minimum construction standards that will be used when
the Authority disburses NSP funds. In addition, this provision will apply when NSP funds are used in
part or whole for any construction, alteration, repair and or equipment installation in or on any dwelling
unit which uses funds directly or indirectly received from the Authority
1. A permit shall be obtained before construction, alterations or repairs begin to the dwelling units.
2. For work valued at $5,000 or less, contractor must be REGISTERED and INSURED.
3. For work valued at $5,000 and up, contractor must be LICENSED and INSURED.
Registered/Specialty contractors can perform work in excess of $5,000 (within their specialties)
if a $5,000 bond is secured and registered with the Department of Labor, Licensing and
All construction, alternations or repairs requiring a building permit shall be inspected by the inspection
department having jurisdiction thereof. A Certificate of Occupancy is required for final power.
It shall be the duty of every person who shall contract for repairs or construction of a dwelling unit or
installation of a service system to comply with the Authority’s, state and local regulations concerning
licensing and insurance. It shall further be the contractor’s responsibility to conform to these
Violation and Penalties
Any person, firm, corporation or administrator who shall violate a provision of these standards may
cause the recipient to be administered a finding which could result in disallowed cost.
Section 1 Submission Requirements for Construction Projects
Recipients that will be using NSP funds for redevelopment (new construction) are required to submit
the following items to the Authority for review and approval.
Development Costs Spreadsheet (submitted as part of the Start-Up Package)
Final Building Plans and Specifications
Cost Reasonableness Determination Form, Attachment 6-1
Development Plans that include the front, rear and side elevations of the buildings.
Site Plans that show how the project is to be built that indicates the placement of buildings,
parking areas, sidewalks, planned landscaping, amenities, easements, trash dumpsters, buffers,
etc. on the site.
General Site Information:
1. Documentation that site was once developed
2. Labeled photographs of the front and back of the site.
3. Directions to the site from the Authority
Recipients with rehabilitation projects must submit the following items to the Authority for review and
Development Costs Spreadsheet (submitted as part of the Start-Up Package)
Work Write-Ups -- Cost Reasonableness Determination Form, Attachment 6-1
Recipients with Demolition Only projects should submit to the Authority for review and approval a cost
estimate that itemizes costs (demolition, dumpster, debris removal).
[Energy Efficiency Section is UNDER CONSTRUCTION]
Section 2 Acceptable Affordable Housing Standards (single family construction)
ACCEPTABLE AFFORDABLE HOUSING STANDARDS (Single Family Construction):
Standards for Single Family Housing Construction include the following:
Stove Garbage Disposal Dishwasher Ceiling Fans
Standard tubs Carpet and vinyl Vinyl Siding
NSP funds used for landscaping costs can not exceed $1,000.
Any items not included or contained in this listing must be approved by the Authority prior to the
execution of an agreement with the potential homebuyer. Failure to do so will result in disallowed
Section 3 Procurement
Recipients involved in procurement and contracting for services related to NSP funded activities need to
ensure that all applicable Federal requirements are followed throughout the process. Local jurisdictions
often have their own procurement and contracting requirements; however, the use of Federal funding
requires compliance with Federal regulations at a minimum. This section describes the policies and
procedures that must be followed when entering into contractual agreements with other entities when
NSP funds are being used. Such entities may include subrecipients, other governmental agencies,
professional services firms, construction contractors, providers of goods and services, and others. The
primary purpose of the procurement procedures is to assure free and open competition is achieved.
In all cases, procurement shall be performed when costs exceed $100,000. Even when not required,
the Authority strongly encourages and recommends that all NSP recipients use procurement
procedures to promote open competition and keep costs down. If the NSP recipient is the owner, and
wishes to act as the general contractor, the recipient must gain Authority approval and then complete
the Identity of Interest Certification Form, provided as Attachment 6-2. Recipients with an
Identity of Interest relationship must still adhere to all applicable procurement requirements when
awarding subcontracts. All recipients must have an Authority approved procurement policy they will
follow prior to NSP awards being made. Procurement policies or bid selection procedures must comply
with the regulations of Section 3, MBE/WBE outreach requirements, and federal labor standards when
All procurement transactions shall be conducted in a manner to provide, to the maximum extent
practical, open and free competition. The recipient shall be alert to organizational conflicts of interest
(see section 5) as well as noncompetitive practices (listed below) among contractors that may restrict
or eliminate competition or otherwise restrain trade. Solicitations shall clearly set forth all requirements
that the bidder shall fulfill in order for the bid to be evaluated by the recipient. Contracts shall be
made only with responsible contractors who possess the potential ability to perform successfully under
the terms and conditions of the proposed procurement. Consideration shall be given to such matters
as contractor integrity, record of past performance, financial and technical resources or accessibility to
other necessary resources.
Examples of what is considered to be restrictive of competition include, but are not limited to:
• Placing unreasonable requirements on firms in order for them to qualify to do business.
• Non-competitive practices between firms.
• Organizational conflicts of interest.
• Unnecessary experience and bonding requirements.
A minimum of three bids is preferred. The bids shall be from general contractors who are licensed in
the State of South Carolina. All bids shall be submitted with line item costs. The acceptable bid shall
be no more than 10% higher or lower than the cost reasonable analysis or the public body estimate.
Any exception to the above items shall be approved in writing by the Authority.
Procurement records and files for purchases shall include the following at a minimum: (a) basis for
contractor selection, (b) justification for lack of competition when competitive bids are not obtained,
and (c) basis for award cost or price. It is recommended that open competition through the use of two
or more bidders be used. Procurement records should be retained for a minimum of 5 years after
3.1 Written Procurement and Selection Procedures
All NSP recipients must abide by written procurement and selection procedures that are equivalent
or essentially comparable to those required by the Common Rule. All procurements funded with
NSP monies must ensure maximum open and free competition and ensure that supplies, services
and construction are obtained efficiently and economically. All procurement procedures must reflect
applicable State Laws and meet standards outlined in this chapter.
3.2 Best Practices when Procuring
All NSP Recipients must follow the procedures listed below when procuring goods and services:
• Incorporate a clear and accurate description of the technical requirements for the material,
product, or service to be procured. This description must not, in the case of competitive
procurements, contain features that unduly restrict competition. The description may include a
statement of the qualitative nature of the material, product or service to be procured, and when
necessary, set forth minimum essential characteristics and standards to which it must conform
to be satisfactory. Detailed product specifications should be avoided if at all possible.
• Clearly set forth all requirements which offers must fulfill and all other factors to be used in
evaluating bids or proposals.
• Awards shall be made only to responsive and responsible contractors who possess the ability or
have access to resources to perform successfully under the terms and conditions of a proposed
procurement. Consideration must be given to such matters as contractor integrity, compliance
with public policy, record of past performance, and financial and technical resources.
• Proposed procurement actions must be reviewed by the Recipient to avoid purchasing
unnecessary or duplicative items.
• The cost plus a percentage of cost method of contracting shall not be used.
• Contracts with other public agencies will only allow actual costs to be paid. No profit is
allowable when contracting with other public agencies.
• Recipients must maintain sufficient records to other public agencies, detailing the significant
history of the procurement.
These records must include, but are not necessarily limited to:
Information pertinent to the rationale for the method of procurement,
Selection of contract type,
Contractor selection or rejection, and
The basis for the cost or price.
• Recipients must maintain a contract administration system that ensures contractors perform in
accordance with the terms, conditions and specifications of their contract.
3.3 Procurement Methods
1st Procurement Method: Sealed Bids (formal Advertising)
The sealed bid method is required for procuring construction contracts and or for goods costing
more than $100,000. In this process, bids are publicly solicited and a firm fixed-price contract is
awarded to the responsible bidder whose bid, conforming to all the material terms and conditions
of the invitation for bids, is the lowest in price.
In order for sealed bidding to be feasible, the following conditions should be present:
1. A complete, adequate, and realistic specification or purchase description is available;
2. Two or more responsible bidders are willing and able to compete effectively for the
3. The procurement lends itself to a firm-fixed-price contract and the selection of the
successful bidder can be made principally on the basis of price.
If sealed bids are used, the following requirements apply:
1. Publication Period: The invitation for bids will be publicly advertised and bids shall be
solicited from an adequate number of known suppliers, providing them sufficient time prior
to the date set for opening the bids;
2. Federal Funding Advertised: The advertisement should indicate that the project is being
funded with NSP funds and that federal requirements will apply to the contracts.
3. Clear Definition: The invitation of bids, which will include any specifications and pertinent
attachments, shall define the items or services in order for the bidder to properly respond;
4. Itemized Costs: Bids must show the quantity and cost of each line item. Lump sum bids
and/or bid items that are not specifically identified or are generally grouped as
miscellaneous or contingency are not allowed.
5. Public Opening: All bids will be publicly opened at the time and place prescribed in the
invitation for bids;
6. Selection and Contracting: A firm fixed-price contract award will be made in writing to the
lowest responsive and responsible bidder; and
7. Rejection of all Bids: Any or all bids may be rejected if there is a sound documented
Negotiations after Unsuccessful Competitive Sealed Bidding: The following guidelines have
been provide for negotiated within a sealed bid competition.
1. Bids Over Construction Budget by Ten Percent or Less: When bids received
pursuant to an invitation for bids and the low bid exceeds available funds and it is
determined in writing from the procuring agency that time or other circumstances will
not permit the delay required to re-solicit competitive sealed bids, a contract may be
negotiated with the lowest responsive and responsible bidder, provided that the lowest
base bid does not exceed available funds by an amount greater than five percent of the
construction budget established for that portion of work. The procuring agency may
change the scope of the work (with prior approval from the Authority) to reduce the cost
to be within the established construction budget.
2. Bids Over Construction Budget by more than Ten Percent: When bids received
pursuant to an invitation for bids and the low bid exceeds available funds by more than
five percent of the construction budget and it is determined in writing from the
procuring agency that time or other circumstances will not permit the delay required to
re-solicit competitive sealed bids, a contract may be negotiated provided that:
a. Each responsible bidder who submitted a bid under the original solicitation is notified
of the determination and is given reasonable opportunity to negotiate.
b. The negotiated price is lower than the lowest rejected bid by any responsible and
responsive bidder under the original solicitation.
c. The negotiated price is the lowest negotiated price offered by any reasonable and
d. If the scope of services originally addressed has been significantly changed, prior
Authority approval is required and a project amendment may be necessary.
2nd Procurement Method: Competitive Sealed Proposals (RFPs/RFQs)
Competitive sealed proposals are used in two instances: (1) the acquisition of any engineering or
architecture services or (2) the purchase of other professional services where the total cost will
exceed $100,000. Under this procurement method, the recipient must publish a written request for
submissions and then review these submissions based on established selection criteria. This
method of procurement differs from the small purchases method in that the solicitation must be
published and cannot be restricted to a smaller or limited number of bidders
Under this approach, there are two possible methods of soliciting proposals. A request for
proposals asks that offerers submit both qualifications and cost information. A request for
qualifications only asks for information on the offerer’s expertise/ experience and not on cost.
When acquiring any service that is not architecture or engineering, the full RFP process must be
used. For example, if a recipient were to hire a for-profit NSP contract administrator and that
contract exceeded $100,000, an RFP would be required.
When acquiring architectural or engineering services, either a RFP or a RFQ may be used. The
Authority recommends the use of an RFP process when feasible or practical, since it provides the
recipient additional information. Note that if an architectural or an engineering firm is being hired to
provide a non architectural/engineering service that service must be procured using either the small
purchases process or a RFP. For example, some engineering firms also provide construction and
grants management services. In that situation, a RFQ cannot be used and either the small
purchases (if it is less than $100,000) or a RFP must be used.
Request for Proposals (RFP): When a RFP process is required, the recipient must develop a
written document outlining the scope of the services and the selection criteria. The scope must be
sufficiently detailed so that potential bidders are able to develop effective pricing proposals and
submit appropriate qualifications. The RFP process is as follows:
An advertisement is published and proposals are solicited. The RFP must include a summary of
the scope of work and the type and relative weights of the evaluative criteria. The RFP should
also include a request for technical and cost information (except for architectural). Cost
information should be provided as a fixed price, depending upon the recipient’s project.
RFPs should be published at least fifteen days before the proposals are due.
Evaluative criteria may include, but not be limited to: qualifications, education, previous projects
completed, location of firm relative to the project, experience with CDBG, HOME or other similar
programs, and/or experience with the existing locality’s system. If the scope of work allows
room for differing types of approaches, the recipient may wish to award points for the most
appropriate or effective approach. For example, if hiring an architect to design a new
community center, the recipient may award points for the most creative or energy efficient
In addition, cost shall be one of the selection factors for an RFP (except for architectural). The
recipient may determine how many points will be awarded for the cost factor.
A qualified review committee rates and ranks the proposals using the published selection
criteria. The recipient must document this review and the selection process. The review
committee must consist of an uneven number of members, to avoid ties in the ranking process,
and should include a minimum of three people. This committee is required to evaluate
proposals based on the exact criteria and weights published in the bid solicitation and
information to bidders.
For architectural services, negotiations are entered into with the top ranked firm to determine
price since it was not an initial factor of consideration in the proposal.
The recipient awards the contract to the bidder that scores highest in its assessment of how the
proposal met the selection criteria. Under this procurement method, this contract need not be
awarded to the lowest bidder so long as the final price is reasonable and the selection is made
following the stated criteria. For some recipients, cost is used as the “tie breaker” between
equally qualified firms.
Request for Qualifications (RFQ): The RFQ process may only be used in two instances: (1) for
complicated architectural or engineering services or (2) when the RFQ is used to narrow a pool of
potential bidders and a formal RFP will follow. In any other competitive proposal instance, the RFP
must be used. The RFQ process does not request cost information at the time of solicitation.
However, recipients must still ensure that all services are cost reasonable.
The process for undertaking an RFQ is as follows:
The RFQ is publicly advertised and qualifications are solicited.
RFQs should be published at least fifteen days before the qualifications are due.
The solicitation must include the criteria and weights to be used in reviewing qualifications.
Qualifications should be listed in order of importance and may include, but are not limited to:
resume, previous projects completed, specific personnel to work on the project, and/or specific
expertise of the firm in general. As noted above, cost is not a factor in the qualification process.
The qualifications are reviewed by a qualified committee and ranked. The review committee
must consist of an uneven number, to avoid ties in the ranking process, and should include a
minimum of three people. This committee is required to evaluate qualifications based on the
criteria and weights published in the solicitation.
The procuring agency may either begin to negotiate with the highest ranked firm, or proposals
are solicited from the highest rated firms that submitted qualifications and are ranked.
Negotiations are then initiated with the top ranked firm.
When Competitive Sealed Proposals (RFPs/RFQs) are used, the following requirements apply:
a) Publication Period: Proposals must be solicited from two or more qualified sources and
an advertisement must be published. RFPs/RFQs should be published at least fifteen days
before they are due.
b) Clear Definition: The RFP/RFQ must identify the general scope of work and all
significant factors of evaluation, including price where appropriate, and their relative
c) Technical Evaluation: Recipients have a method for conducting technical evaluations of
the proposals received and for selecting awardees;
d) Awards: Awards will be made to the responsible firm whose proposal is most
advantageous to the program, with price and other factors considered; and
3rd Procurement Method: Small Purchase Procedures
The small purchase procedures method allows Recipients to acquire goods and services totaling no
more than $100,000, without publishing a formal request for proposals or invitation for bids. This
method of procurement is typically used to purchase commodities such as equipment or other
materials. In the highly unlikely event that a recipient is purchasing materials that will exceed
$100,000 they must use the sealed competitive bid process.
The small purchases method can also be used to acquire eligible types of services, such as
professional consulting, environmental review, or planning. This method cannot be used if the
services contract will exceed $100,000 in value. If the services contract will exceed $100,000, the
recipient must issue an RFP under the competitive proposals approach. Note that engineering
and architectural services cannot be procured using the small purchase method and
must always be acquired using the competitive proposal approach. The small purchase
procedure also cannot be used to acquire construction contractors. These acquisitions
must occur under the competitive sealed bid.
Under the small purchases method, recipients send a written request for quotes to potential
vendors with a detailed description of the goods or services needed. In return, they receive
competitive written quotations from an adequate number of qualified sources. Since this process
does not require a public advertisement, written quotes must be received in response to written
solicitations from a minimum of three qualified sources. Each quote must include pricing
information that allows the recipient to compare costs across bidders and ensure cost
reasonableness. Documentation of the quotes shall be attached to the purchase requisition and
maintained in the recipient’s files. The award shall be made to the lowest responsive and
4th Procurement Method: Noncompetitive Proposals
Procurement by noncompetitive proposals is procurement through solicitations of a proposal from
only one source, or after solicitation of a number of sources, competition is determined inadequate.
Procurement by noncompetitive proposals may be used only when the award of a contract is
infeasible under small purchase procedures, sealed bids or competitive proposals and one of the
following circumstances applies:
a) The item is available only from a single source;
b) The public exigency or emergency for the requirement will not permit a delay resulting from
c) The Authority authorizes noncompetitive proposals; or
d) After solicitation of a number of sources, competition is determined inadequate.
3.4 Procurement for Construction Services
Below the Authority has provided the steps for creating a complete bid package for those entities
seeking construction services. In preparing bid packages and to ensure that the NSP requirements
are being met recipients should follow the steps provided on the next page:
Preparing a Bid Package For Construction Services
Step 1: What should be included:
An architect or engineer will typically prepare the technical bid specifications for new construction and recipients will typically
prepare the necessary work write-up for rehabilitation. The information concerning both of these types of activities should
provide a complete and accurate description of the work to be completed, specifications for materials, products, and services
to be provided or performed. In addition, recipients must ensure that the bid package included required federal and state
provisions and clauses, such as compliance with minimum standards for accessibility by the physically handicapped (504).
Bid and contract documents should include but are not limited to the following:
• Technical specifications.
• Local, State and Federal requirements for:
Equal opportunity requirements including Section 3 Clause
Labor standards requirements (if applicable).
General contract terms and conditions such as termination clauses, access to and retention of records, etc. (Section
7 in this Chapter contains the required federal terms and conditions).
Timeframe for contract completion.
• General industry conditions.
• Itemized cost and pricing information by line item such as those listed below:
All bids for any project shall include costs of permits, licenses and fees applicable to work. All bids for material
and/or equipment shall include all transportation and freight cost to the job.
If required for fabrication, installation or if required by General contractor, all subcontractors and suppliers will be
required to furnish shop drawings, certificates, tests and/or samples for approval.
Debris/Trash: Each bidder performing work on any project will be required to remove completely form the job site
his own construction debris, trash, etc. and to leave his work in a neat and workmanlike manner.
• Method of payment and amount of contract.
• Advertisement for Bid.
• Include a request that all bidders return bids even if they are not going to bid. Have them mark the bid "No Bid." A "No
Bid" is considered a bid.
Step 2: Reviewing the Bid Package prior to soliciting bids:
Prior to bidding the project, recipients should review the bid documents to ensure that the scope of work is consistent with
the approved NSP proposal.
Step 3: What to use when Soliciting Bids:
Construction bids must be publicly solicited using sealed bids.
Step 4: Handling Corrections to Bid Package:
If any amendments are made to the bid documents they must be sent to all bidders who were sent or who obtained bid
documents. A log should be maintained of all bidders who were sent or obtained bid documents. All bids received during the
bidding period should be logged with the name, address and time of receipt.
Step 5: Confirm Davis-Bacon Wage Decision
Wage decision must be confirmed no later than ten days prior to bid opening.
Step 6: Conduct a public bid opening
All bids should be read aloud during this meeting and minutes kept.
Step 7: Review Bids
Determine if they are legally and technically responsive.
Check with the State’s Licensing Board for General Contractors to verify contractor’s business license number and
type, and the types of work the contractor is permitted to bid on or perform.
Evaluate the contractor’s capacity
If only one bid is received, either re-bid the contract or contact the Authority to determine if the provisions for non-
competitive procurement apply.
Prepare and mail a notice of intent to award to the selected bidder
Section 4 Small and Minority Business Involvement
When procuring goods and services the Authority encourages recipients to support the involvement of
small, minority and female-owned business firms in NSP projects. HUD has placed requirements with
regard to the NSP program to ensure the following minimum affirmative steps are taken to afford
MBE/WBE owned businesses every opportunity to participate in NSP generated contracts.
• Placing minorities and women on solicitation lists;
• Assuring that MBE and WBE firms are solicited when ever they are potential sources;
• Dividing the total requirements, when economically feasible, into smaller tasks or quantities to
permit maximum participation by small and minority business enterprises, and women business
• Where the requirement permits, establishing delivery schedules that encourage participation by
small and minority business enterprises, and women business enterprises;
• Using the services and assistance of the Small Business Administration and the Minority
Business Development Agency of the Department of Commerce; and
• Requiring the prime contractor, if subcontractors are to be let, to take all the same affirmative
steps listed here.
The South Carolina Minority Business Directory is a valuable resource in attracting services from
Minority owned businesses located in South Carolina. A link to download the directory can be found on
the Authority’s web site or can be accessed directly at
If a contractor can not demonstrate an ability to meet federal requirements such as, Section 3,
MBE/WBE, and minority outreach requirements, it should not be selected to perform work in
connection with any NSP funded projects. It is important to effectively communicate up front all
applicable NSP requirements related to HUD generated economic opportunities by clearly stating what
is required in all contract solicitations:
NSP Recipients are required to submit annually the MBE/WBE Annual Report, provided as
Section 5 Conflict of Interest
Recipients must maintain in their procurement and selection procedures a written code of conduct to
govern the performance of its officers, employees or agents in contracting with and expending NSP
funds. Procurement and Selection Procedures should contain the following regarding conflicts of
1. Applicability: In the procurement of property and services by the recipient the provisions
of this section apply.
2. Conflicts prohibited: No persons described in this section who exercise or have exercised
any functions or responsibilities with respect to activities assisted with NSP funds or who are
in a position to participate in a decision-making process or gain inside information with
regard to these activities, may obtain a financial interest or benefit from a NSP-assisted
activity, or have an interest in any contract, subcontract or agreement with respect thereto,
or the proceeds there under, either for themselves or those with whom they have family or
business ties, during their tenure or for one year thereafter.
3. Persons covered: The conflict of interest provisions apply to any person who is an
employee, agent, consultant, officer, or elected official or appointed official, owner,
developer or sponsor of a project assisted with NSP funds (or officer, employee, agent or
consultant of the owner, developer or sponsor) whether private, for-profit or non-profit,
may not occupy a NSP-assisted affordable housing unit in a project of the participating
jurisdiction, which are receiving NSP funds.
4. Exceptions: Upon the written request of the Authority, an exception may be granted with
regard to the provisions of this section on a case-by-case basis when it determines that the
exception will serve to further the purposes of the NSP Program and the effective and
efficient administration of the Authority’s program or project. An exception may be
considered only after the Recipient has provided the following:
a) A disclosure of the nature of the conflict, accompanied by an assurance that there has
been public disclosure of the conflict and a description of how the public disclosure was
b) An opinion of the Recipient’s attorney that the interest for which the exception is sought
would not violate State or local law.
5. Factors to be considered for exceptions; In determining whether to grant a requested
exception after the Recipient has satisfactorily met the requirements the Authority will
consider the following:
a) Whether the exception would provide a significant cost benefit or an essential degree of
expertise to the program or project which would otherwise not be available;
b) Whether the person affected is a member of a group or class of low-income persons
intended to be the beneficiaries of the assisted activity, and the exception will permit
such person to receive generally the same interests or benefits as are being made
available or provided to the group or class;
c) Whether the affected person has withdrawn from his or her functions or responsibilities,
or the decision-making process with respect to the specific assisted activity in question;
d) Whether the interest or benefit was present before the affected person was in a position
as described in number (3) of this Section;
e) Whether undue hardship will result either to the Recipient or the person affected when
weighed against the public interest served by avoiding the prohibited conflict; and
f) Any other relevant considerations.
The Recipient will notify the Authority when a conflict of interest arises and if the Recipient
chooses to request an exception to the conflict the Recipient will follow the process described in
Section 6 Requirements for Section 3
NSP Recipients must make all bidders and contractors aware of the Section 3 requirements and
take appropriate steps to promote and encourage the hiring of Section 3 Residents and Business
Concerns. A Section 3 Information Sheet, provided as Attachment 6-4, should be included in
Section 3 regulations apply to the following NSP- assisted projects:
• Projects assisted with HUD funds for construction and rehabilitation activities in excess of
• Contracts and subcontracts exceeding $100,000 that were awarded in connection with
projects assisted with HUD funds for construction and rehabilitation activities in excess of
If a new construction or rehabilitation project is assisted with any HUD program funds in excess of
$200,000 but no single contractor or subcontractor is awarded more than $100,0000 in association
with the project then only the organization that directly received the NSP assistance is subject to
comply with the Section 3 Regulations concerning training, employment and contracting activities.
If there are contracts and subcontracts awarded in conjunction with the Section 3 applicable
project, then Section 3 regulations apply to the organization that directly received the NSP funds
and all the contracts and subcontracts for work awarded in connection with the NSP project that
are in excess of $100,000. These include all contracts and subcontracts awarded in excess of
$100,000, even those not funded with NSP funds and those that are for non-construction related
The purpose of Section 3 of the Housing and Urban Development Act of 1968 (24 CFR Part 135), as
amended is to ensure that “the employment and other economic opportunities generated by
Federal financial assistance for housing and community development programs shall, to the
greatest extent feasible, be directed toward low and very low income persons, particularly those
who are recipients of government assistance for housing.” To the greatest extent feasible, NSP
Recipients and their contractors and subcontractors must provide opportunities for job training,
employment, contracting and subcontracting to Section 3 residents and businesses.
Training and Employment Goals
NSP recipients and contractors that are required to be in compliance with Section 3 regulations
must demonstrate preferences for providing training and employment opportunities to low-income
persons to the greatest extent feasible. Priority consideration for hiring qualified low-income
persons should be demonstrated as follows:
1. Low-income persons residing in the service area or neighborhood in which the project is
2. Participants in HUD Youthbuild programs
3. If the project is assisted with McKinney Act funds, homeless persons in the area of the project.
4. Other Section 3 residents.
Section 3 hiring goals apply to new hires only. Payroll records should be retained to document an
organizations determination of new hires. Employment goals apply to both construction and non-
Efforts must also be directed toward the use of Section 3 businesses to the greatest extent feasible.
Section 3 business priorities should be demonstrated in the following preference order:
1. Section 3 businesses that operate in the project area.
2. Entities that carry out HUD Youthbuild programs.
3. Other Section 3 business concerns.
Businesses must be able to demonstrate that they have the capability to perform within the terms
and conditions of applicable contracts and persons hired should be qualified to perform the work
Numerical goals for meeting the greatest extent feasible
• For training and employment opportunities resulting from Section 3 covered housing assistance,
a commitment to employ 10% of the aggregate number of new hires each year over the
duration of the Section 3 project.
• For training and employment opportunities resulting from Section 3 covered community
development assistance, a commitment to employ 30% of the aggregate number of new hires
for a one year period.
• For contracts awarded in connection with Section 3 covered projects, a commitment to award at
least 10% of the total dollar amount of contracts for building trades work and at least 30% of
the total dollar amount of all other Section 3 covered contracts.
• At least 3% of the total dollar amount of all other Section 3 covered contracts, meaning
contracts for any other work other than building trade work such as landscaping, architectural,
environmental or legal services.
A Section 3 business is:
• 51% or more owned by a Section 3 resident(s)
• Employs Section 3 residents for at least 30% of its full-time, permanent staff; or employees that
were Section 3 residents within three years of the date of first employment with the business
• A business that can provide evidence of a commitment to subcontract to Section 3 business
concerns, 25% or more of the dollar amount of the awarded contracts.
A Section 3 Resident is a:
• Public housing resident or;
• Persons who live in the area where the HUD-assisted project is located and who have a
household income that falls below HUD’s income limits. A low income resident has an annual
income that falls below 80% of the area median income limit for the county the NSP funds are
expended in. A very low income resident has an annual income that falls below 50% of the
area median income limit for the county the NSP funds are expended in.
Other Section Residents means low income and very low income residents of the metropolitan
area or non-metropolitan county who do not reside in the project area.
New hires means full-time employees, for permanent, temporary, or seasonal employment
HUD Youthbuild Program means programs that receive assistance under subtitle D of Title IV of
the National Affordable Housing Act which provide disadvantaged youth with opportunities for
employment, education, leadership development, and training in the construction or rehabilitation
of housing for homeless individuals and members of low and very low income families. Information
about local Youthbuild programs can be located by conducting a zip code search at:
6.3 Recordkeeping Requirements
NSP Recipients with projects that are subject to Section 3 requirements must have employment and
procurement policies that are in compliance with Section 3 regulations and include the Section 3
clause (provided below) in all covered contracts and subcontracts. Recipients are also required to
keep on file documentation supporting their best efforts and success at hiring Section 3 residents.
NSP recipients are responsible for submitting a Section 3 Summary Report, provided as
Attachment 6-5, and Contract & Subcontract Activity Form, Attachment 6-6, must be
submitted to the Authority at project completion. At a minimum, Recipients with projects that are
subject to Section 3 requirements must maintain and have available the following records:
• Documentation of the good faith efforts made to make low-income persons aware of the
employment positions, and to encourage and facilitate their application.
• The number and dollar value of all contracts awarded to businesses and, in particular, Section 3
businesses during the fiscal year.
• A description of the best efforts made to award contracts and subcontracts to Section 3
• The mechanisms by which they ensured that contractors and subcontractors complied with the
Section 3 preferences for training, employment, and contract awarding.
• The Section 3 Clause included in all covered contracts and subcontracts.
• Written employment and procurement policies that are in compliance with Section 3
6.4 Required Section 3 Clause
In accordance with 24 CFR Part 135.38 all Section 3 covered contracts shall include the following
clause (referred to as the Section 3 clause) provided on the next page:
Section 3 Clause
A. The work to be performed under this contract is subject to the requirements of section 3 of the
Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 170lu (section3). The
purpose of section 3 is to ensure that employment and other economic opportunities generated
by HUD assistance or HUD-assisted projects covered by section 3, shall, to the greatest extent
feasible, be directed to low- and very low- income persons, particularly persons who are
recipients of HUD assistance for housing.
B. The parties to this contract agree to comply with HUD’s regulations in 24 CFR Part 135, which
implement section 3. As evidenced by their execution of this contract, the parties to this
contract certify that they are under no contractual or other impediment that would prevent
them from complying with the part 135 regulations.
C. The contractor agrees to send to each labor organization or representative of workers with
which the contractor has a collective bargaining agreement or other understanding, if any, a
notice advising the labor organization or workers’ representative of the contractor’s
commitments under this section 3 clause, and will post copies of the notice in conspicuous
places at the work site where both employees and applicants for training and employment
positions can see the notice. The notice shall describe the section 3 preference, shall set forth
minimum number and job titles subject to hire, availability of
D. Apprenticeship and training positions, the qualifications for each; and the name and location of
the person(s) taking applications for each of the positions; and the anticipated date the work
E. The contractor agrees to include this section 3 clause in every subcontract subject to
compliance with regulations in 24 CFR Part 135, and agrees to take appropriate action, as
provided in an applicable provision of the subcontract or in this section 3 clause , upon a finding
that the subcontractor is in violation of the regulations in 24 CFR Part 135. The contractor will
not subcontract with any subcontractor where the contractor has notice or knowledge that the
subcontractor has been found in violation of the regulations in 24 CFR Part 135.
F. The contractor will certify that any vacant employment positions, including training positions,
that are filled (1) after the contractor is selected but before the contract is executed, and (2)
with persons other than those to whom the regulations of 24 CFR Part 135 require employment
opportunities to be directed, were not filled to circumvent the contractor’s obligations under 24
CFR Part 135.
G. Noncompliance with HUD’s regulations in 24 CFR Part 135 may result in sanctions, termination
of this contract for default, and debarment or suspension from future HUD assisted contracts.
H. With respect to work performed in connection with section 3 covered Indian housing assistance,
section 7(b) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450e)
also applies to the work to be performed under this contract. Section 7(b) requires to the
greatest extent feasible (i) preference and opportunities for training and employment shall be
given to Indians, and (ii) preference in the award of contracts and subcontracts shall be given
to Indian organizations and Indian-owned Economic Enterprises. Parties to this contract that
are subject to the provisions of section 3 and section 7(b) agree to comply with section 3 to the
maximum extent feasible, but not in derogation of compliance with section 7(b).
Note* Refer to 24 CFR Part 135 for all the requirements related to Section 3.
Section 7 Contract Requirements
All contracts are required to contain federal and state clauses pertaining to equal opportunity, labor
standards, and general terms and conditions. The Authority has provided a standard set of these
provisions for use in professional services or construction contracts. NSP Recipients must execute
contracts that should at a minimum include the following :
7.1 General Conditions
1. Scope of Services: The Owner employs the Contractor to make renovation improvements as
specified in the work write-up or plan and specifications upon premises known as
_____________________. The Contractor shall perform all of the services and furnish all the
material and equipment necessary to construct and/or make the improvements set forth in the
Designs/Plans and Specifications, which are attached and made a part by this reference.
2. Indemnification: Contractor agrees to indemnify, defend and hold the Owner harmless from
any and all claims, liabilities, obligations, governmental penalties, fines and causes of action of
whatsoever nature, including injury to or death of any person or damage to or destruction of
any property, or court costs or attorney's fees resulting from any and all negligent acts or
omissions of Contractor or any Subcontractor to this Agreement or any of their respective
Directors, Officers, Partners, Principals, Employees or Agents. Neither this Agreement nor any
Subcontract will create any contractual relationship between any Subcontractor and Engineer,
nor any liability of Engineer to any Subcontractor.
3. Time for Completion: The Contractor will begin work when this contract has been signed and a
written Notice To Proceed has be executed. The Contractor will then commence work within
five (5) days (this is determined by the recipient) after issuance of the Notice to Proceed. The
Contractor shall satisfactorily complete all work under this contract within ____ days after the
issuance of the Notice to Proceed by the Owner. If the work is not completed by the specified
date and the contractor has not requested in writing and received in writing a contract
extension, the Owner shall have the option to hire another Contractor to complete the work.
4. Insurance: The Contractor shall furnish evidence of comprehensive public liability insurance
coverage protecting the Owner for not less that $100,000 per person/$1,000,000 per accident
and property damage insurance coverage for not less than $100,000 for any one accident
arising from work performed by the Contractor, any of his subcontractors, or any direct or
indirect employee of either of them. Contractor shall also provide automobile liability in the
amount of $100,000 per occurrence
5. Evidence of insurance or other coverage required by local laws governing Workmen's
Compensation will also be proved by the Contractor.
6. Payment and Performance Bond: The development of units exceeding $100,000 must be
bonded if funds are used during the construction phase.
7. Assignment of Contract: The Contractor shall not assign the Contract without written consent
of the Owner.
8. Permits, Fees, Engineering Studies and Registered Surveys: The contractor shall obtain and
pay for all necessary permits, inspection charges (not conducted by the Owner) and licenses for
the authorization and execution of the work and labor performed. The Owner shall furnish all
engineering studies as required and specified.
9. Compliance with Code: The Contractor shall perform all work under the Contract in
conformance with applicable codes, ordinances, regulations and requirements per Federal, State
and local regulations.
10. Cooperation: The Owner shall cooperate with the Contractor to provide access to the dwelling
units for the performance of the work.
11. Occupancy of Premises: Unless otherwise stated, it shall be assumed that the premises will be
unoccupied during the course of the renovation.
12. Inspection: The Contractor shall permit authorized persons access to the unit to inspect and
examine the work during all working hours. These persons include agents of the U.S.
Government, its designee, and the Owner or his designees. If any work is covered up without
approval or consent of the Owner, it must, if required, be exposed for inspection at the
Contractor's expense. All defects caused by the Contractor, or his subcontractors, shall be
corrected at the Contractor's expense.
13. Guarantee: The Contractor shall guarantee the work performed and materials and equipment
for a period of one year from the date of final acceptance of all work required by the contract
documents. Further, the Contractor shall furnish the Owner with all manufacturers and
suppliers written guarantees and warranties covering materials and equipment furnished under
the requirements of the contract documents. All defects appearing within the one-year period,
which are the fault of the Contractor or are the result of defective material, shall be corrected at
14. Default: In case of default by the Contractor, the Owner may procure articles or services from
other sources and hold the Contractor responsible for any excess cost incurred.
15. Notice: Notices to the Contractor shall be considered delivered for the purpose of the contract,
if mailed by regular mail or hand delivered to the Contractor at the address that was given on
16. Changes: It is agreed that there shall be no changes to the contract and the work covered
unless, for essential work which causes a change in cost and/or performance time, a mutually-
agreed-to change has been put in writing and signed by the Owner and Contractor and with the
concurrence of the Authority.
17. Time for Performance: The Contractor shall, within five (5) days after issuance of the Notice To
Proceed, begin performance. Work to be performed by the Contractor shall be completed
within the period of time stated in the Contract. However the Contractor, on written notification
to and approval of the Owner, will be excused from delay charges and a performance time
extension granted if, at any time in the progress of the work, delays are caused by:
a. Any act or neglect of the Owner
b. Changes ordered in the work
e. Fire (if not caused by the Contractor)
f. Delay in transportation
g. Unavoidable casualties
h. Or any other causes beyond the Contractor's control.
i. Liquidated damages can be added in the contract as long as the daily charges can be justified.
23. Disputes: The Owner shall, within a reasonable time, make decisions on all claims of the
Contractor submitted to the Owner in writing. In the event of a dispute that cannot be resolved
between the Owner and the Contractor, the dispute shall be presented to an independent
arbitrator. The decision of the independent arbitrator shall be final.
24. Workmanship: The work provided by the Contractor shall be executed pursuant to the plans,
specifications, and/or work write-ups or other contract documents in a sound, workman-like,
and substantial manner. Materials used in the construction, rehabilitation, renovating,
remodeling, and improving shall be new, unless otherwise expressly set forth in the
25. Supervision: The Contractor shall provide a competent supervisor who is capable of
understanding the plans and specifications. All supervisors shall have successfully completed
the Worker Protection and Safety course. The Contractor shall keep a complete set of approved
plans and specifications on the job site.
26. Termination: This contract may be terminated if:
a. At any time the Contractor fails to furnish materials or execute work in accordance with
the provisions of the contact documents, fails to proceed with or complete the work
within the time limit specified in the contract documents or otherwise violates any
provision of the Agreement, the Owner shall have the right to terminate the Agreement
upon ten (10) days written notice to the Contractor. In this event, the Owner will
proceed to have the work completed and apply the cost to any money due under the
Contract. The Contractor shall be responsible for any damages or added cost resulting
by reason of this default.
b. At any time the Owner fails to cooperate with the Contractor by denying access to the property,
refusing to furnish necessary services, or otherwise prohibiting completion of work as specified in
the Agreement, the Owner shall have ten (10) days from notice to cure such deficiencies. Notice to
Owner shall contain the reason for the Contractor's intention to terminate. Unless the deficiency
ceases or a satisfactory arrangement has been made for its correction, the Contractor shall have
the right to terminate the Agreement at the end of the ten (10) day notice period. After
termination, the Contractor will be reimbursed for services rendered to the termination date upon
submission to the Owner of detailed supporting documentation. The Contractor will not be entitled
to profit or other compensation on services not performed.
27. Payments: The amount of ten (10) percent will be retained until the Contractor submits a
request for final payment. Final payment for this Contract shall be made only after final
inspection, final clearance, acceptance of all work specified and the Contractor furnishing the
Owner satisfactory releases of liens or claims against the property by his subcontractors,
laborers, and material suppliers. The amount of ten (10) percent of the final payment may be
retained in escrow for a period of up to thirty (30) days to cover contract compliance or until
completion of all work.
28. Non-Collusive Affidavit: Each person submitting a bid for any portion of the work contemplated
by the bidding documents shall execute an affidavit in the form provided by the Owner to the
effect that he has not colluded with any other person, form or corporation in regard to any bid
submitted. Such affidavit shall be attached to the bid.
30. Limitations of Indemnification: In any and all claims against the Owner or any of its agents or
employees by any employee of the Contractor, anyone directly or indirectly employed by it or
anyone for whose acts it may be liable, the indemnification obligation under Paragraph Two (2)
of these General Conditions shall not be limited in any way by any limitation on the amount or
type of damages, compensation, or benefits payable by or for the Contractor under Workman's
Compensation, Disability Benefit or other Employee Benefits Acts.
31. Captions: The Captions in these General Conditions are for the purposes of convenience only
and form no part of the General Conditions. In no event shall they be deemed to limit or
modify the text of the General Conditions.
32. Severability: The invalidity or unenforceability of any portion(s) or provisions(s) of this
agreement shall in no way affect the validity or enforceability of any other portions(s) or
provision(s) thereof. Any invalid or unenforceable provision(s) shall be severed from the
Agreement and the balance of the Agreement shall be construed and enforced as if the
Agreement did not contain the particular portion(s) or provision(s) held to be invalid and/or
7.2 NSP Contract Provisions
1. Limitation of Liability: The contractor will not assert in any legal action by claim or defense, or
take the position in any administrative or legal procedures that he is an agent or employee of the
owner. This provision is not applicable to contracts for administration services where the contractor
is a Council of Government or a Regional Planning Agency.
2. Ownership: Ownership of all real or personal property, acquired in whole or in part with NSP
funds for use on this project, shall be vested in the Subrecipient. When the Subrecipient
determines that the property is no longer required for the purposes of this project, the Subrecipient
must notify the Authority and obtain approval for disposition of the property in accordance with
3. Agreement/Contract: If any provision in this agreement/contract shall be held to be invalid or
unenforceable, the remaining portions shall remain in effect. In the event such invalid or
unenforceable provision is considered an essential element of this agreement/contract, the parties
shall promptly negotiate a replacement provision, which addresses the intent of such provision.
The failure of either party to insist upon strict performance of any terms, conditions and covenants
herein set forth shall not be deemed a waiver of any rights or remedies that such party may have
and shall not be deemed a waiver of any subsequent breach or default in the terms, conditions and
covenants herein contained.
4. Federal, State and local laws, ordinances and codes are subject to change from time to time
as they are promulgated. The contractor shall be notified in writing of any such changes when they
occur and they shall be incorporated in writing to this contract/agreement upon concurrence by
both parties unless such changes are considered to have an essential impact upon the intent of this
agreement/contract and then they shall be incorporated upon notification to the contractor.
5. Termination for Convenience: This agreement may be terminated for convenience in
accordance with 24 CFR, 85.44.
6. Amendments: Any changes to this contract affecting the scope of work of the project must be
approved, in writing, by the Owner and Contractor and shall be incorporated in writing to this
contract. Any cost amendments of the original contract price must have written approval by
Authority prior to execution.
7. Copyright: Except as otherwise provided in the terms and conditions of this contract, the
contractor paid through this contract is free to copyright any books, publications or other
copyrightable materials developed in the course of and under this contract. However, the federal
awarding agency and state funding agency (SFA) reserve a royalty-free, non-exclusive and
irrevocable license to reproduce, publish or otherwise use and to authorize others to use, for
federal government and SFA purposes:
(a) the copyright in any work developed under this contract; and
(b) any rights of copyright to which a subcontractor purchases ownership with grant
The Federal Government's rights and the SFA’s rights identified above must be conveyed to the
publisher and the language of the publisher’s release form must insure the preservation of these
8. Terms and Conditions: The State reserves the right to add or delete terms and conditions of this
contract as may be required by revisions and additions to changes in the requirements, regulations,
and laws governing the Community Development Block Grant Program.
9. Reporting Requirements: The Contractor agrees to complete and submit all reports, in such
form and according to such schedule, as may be required by the State.
10. Sanctions: If the Contractor fails or refuses to comply with the provisions set forth herein, the
State or Owner may take any or all of the following sanctions: cancel, terminate or suspend in
whole or in any part the contract, or refrain from extending any further funds to the Contractor
until such time as the contractor is in full compliance.
11. Applicable Law: In addition to the applicable Federal Laws and Regulations, this contract is also
made under and shall be construed in accordance with the laws of the State of South Carolina. By
execution of this contract, the contractor agrees to submit to the jurisdiction of the State of South
Carolina for all matters arising or to arise hereunder, including but not limited to performance of
said contract and payment of all licenses and taxes of whatever kind or nature applicable hereto.
12. Compliance with Air and Water Acts: Applicable to construction contracts and related
subcontracts exceeding $100,000: This contract is subject to the requirements of the Clean Air Act,
as amended, 42 USC 1857 et seq., the Federal Water Pollution Control Act (Clean Water Act), as
amended, 33 USC 1251 et seq., and the regulations of the Environmental Protection Agency with
respect to 40 CFR Part 15, as amended from time to time.
(1) A stipulation by the contractor or subcontractor that any facility to be utilized in the
performance of any nonexempt contract or subcontract is not listed on the List of Violating
Facilities, issued by the Environmental Protection Agency (EPA) pursuant to 40 CFR 15.20.
(2) Agreement by the Contractor to comply with all the requirements of section 114 of the Clean
Air Act, as amended (42 USC 1857c-8-0 and section 308 of the Federal Water Pollution Control
Act, as amended (33 USC 1318) relating to inspection, monitoring, entry, reports and
information, as well as all other requirements specified in said section 114 and 308, and all
regulations and guidelines issued thereunder.
(3) A stipulation that as a condition of award of contract prompt notice will be given of any
notification received from the Director, Office of Federal Activities, EPA, indicating that a
facility utilized or to be utilized for the contract under consideration is to be listed on the EPA
list of Violating Facilities.
(4) Agreement by the Contractor that he will include or cause to be included the criteria and
requirements in paragraph (1) through (4) of this agreement, in every nonexempt subcontract
and requiring that the contractor will take such action as the State may direct as a means of
enforcing such provisions.
In no event shall any amount of assistance provided under this agreement be utilized with respect
to a facility which has given rise to a conviction under section 113(c)(1) of the Clean Air Act or
Section 309(c) of the Federal Water Pollution Control Act.
13. Maintenance of Records: Records for non-expendable property purchased totally or partially
with Federal funds must be retained for five years after final close-out. All other pertinent contract
records including financial records, supporting documents and statistical records shall be retained
for a minimum of five years after the final close-out report. However, if any litigation, claim, or
audit is started before the expiration of the five year period, then records must be retained for five
years after the litigation, claim or audit is resolved.
14. Subcontracting with Small and Minority Firms, Women’s Business Enterprise and Labor
Surplus Areas: It is national policy to award a fair share of contracts to small and minority and
women’s owned businesses. Accordingly, affirmative steps must be taken to assure that small,
minority and women owned businesses are utilized when possible as sources of supplies,
equipment, construction and services. Affirmative steps shall include the following:
(1) Including qualified small and minority businesses on solicitation lists;
(2) Assuring that small, minority and women owned businesses are solicited whenever they are
(3) Whenever economically feasible, dividing total requirements into smaller tasks or quantities so
as to permit maximum small, minority and women owned businesses' participation;
(4) Where the requirement permits, establishing delivery schedules which will encourage
participation by small and minority businesses; and
(5) Using the services and assistance of the Small Business Administration, the Governor’s Office
of Small and Minority Business Assistance, the Department of Commerce and the Community
Services Administration as required.
15. Confidential Information: Any reports, information, data, etc., given to, prepared by, or
assembled by the Contractor under this contract, which the Agency requests to be kept
confidential, shall not be made available to any individual or organization by the Contractor without
prior written approval of the Agency.
16. Access to Records: Records with respect to all matters covered by this contract shall be made
available for audit and inspection by the agency, the grantor or their representatives.
17. Prime Contractor Responsibilities: The Contractor is required to assume sole responsibility for
the complete effort and enforcement of laws and regulations under this contract. The owner will
consider the Contractor to be the sole point of contact with regard to contractual matters.
18. Subcontracting: If any part of the work covered by this contract is to be subcontracted, the
Contractor shall identify the subcontracting organization and the contractual arrangements made
therewith to the owner. All subcontracts must be approved by the owner to insure they are not
debarred or suspended by the Federal or State Governments and to insure the owner understands
19. Legal Services: No attorney-at-law shall be engaged through the used of any funds provided
under this contract in suits against the State, Local Public Body or any political subdivision.
20. Political Activity: None of the funds, materials, property or services provided directly or indirectly
under this contract shall be used for any partisan political activity, or to further the election or
defeat of any candidate for public office or otherwise in violation of the provisions of the “Hatch”
21. Reporting of Fraudulent Activity: If at any time during the term of this contract anyone has
reason to believe by whatever means that, under this or any other program administered by the
Authority a subrecipient or other third parties of funds has improperly or fraudulently applied for or
received benefits, monies or services pursuant to this or any other contract, such information shall
be reported to the appropriate authorities.
22. Age Discrimination: In accordance with 45 CFR, parts 90 and 91, the Contractor agrees there
shall be no bias or age discrimination as to benefits and participation under this contract.
23. Section 109 of the Housing and Community Development Act of 1974: No person in the
United States shall on the grounds of race, color, national origin or sex be excluded from
participation in, be denied the benefits of, or be subjected to discrimination under any program or
activity funded in whole or in part with funds made available under this title.
24. Section 3, Compliance and Provision of Training, Employment and Business
Opportunities: The work to be performed under this contract is subject to the requirements of
Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 USC 1701u. The
purpose of Section 3 is to ensure that employment and other economic opportunities generated by
HUD assistance or HUD-assisted projects covered by Section 3 shall, to the greatest extent feasible
be directed to low and very low-income persons, particularly persons who are recipients of HUD
assistance for housing.
The parties to this said contract agree to comply with HUD's regulations in 24 CFR Part 135, which
implement Section 3. As evidenced by their execution of this contract, the parties to this contract
certify that they are under no contractual or other impediment that would prevent them from
complying with the Part 135 regulations.
The contractor agrees to send to each labor organization or representative of workers with which
the contractor has a collective bargaining agreement or other understanding, if any, a notice
advising the labor organization or workers' representative of the contractor's commitments under
this Section 3 clause and will post copies of the notice in conspicuous places at the work site where
both employees and applicants for training and employment positions can see the notice. The
notice shall describe the Section 3 preference, shall set forth minimum number and job titles
subject to hire, availability of apprenticeship and training positions, the qualifications for each; and
the name and location of the person(s) taking applications for each of the positions; and the
anticipated date the work shall begin.
The contractor agrees to include this Section 3 clause in every subcontract subject to compliance
with regulations in 24 CFR Part 135, and agrees to take appropriate action, as provided in an
applicable provision of the subcontract or in this Section 3 clause, upon a finding that the
subcontractor is in violation of the regulations in 24 CFR Part 135. The contractor will not
subcontract with any subcontractor where the contractor has notice or knowledge that the
subcontractor has been found in violation of the regulations in 24 CFR Part 135.
The contractor will certify that any vacant employment positions including training positions, that
are filled (1) after the contractor is selected but before the contract is executed, and (2) with
persons other than those to whom the regulations of 24 CFR Part 135 require employment
opportunities to be directed, were not filled to circumvent the contractor's obligations under 24 CFR
The contractor agrees to submit such reports as required to document compliance with Part 135.
Noncompliance with the regulations in 24 CFR Part 135 may result in sanctions, termination of this
contract for default, and debarment or suspension from future HUD assisted contracts.
25. Section 504 of the Rehabilitation Act of 1973, as amended: The Contractor agrees that no
otherwise qualified individual with disabilities shall, solely by reason of his disability, be denied the
benefits, or be subjected to discrimination including discrimination in employment, any program or
activity that receives the benefits from the federal financial assistance.
26. Lead-Based Paint: The construction or rehabilitation of residential structures with assistance
provided under this Agreement is subject to the HUD Lead-Based Paint regulations, 24 CFR Part 35.
Any grants or loans made by the Grantee for the rehabilitation of residential structures with
assistance provided under this Agreement shall be made subject to the provisions for the
elimination of lead-base paint hazards under subpart B of said regulations, and the Grantee shall be
responsible for the inspections and certifications required under section 35.14(f) thereof.
27. Debarment Certification: The contractor must comply with Federal Debarment and Suspension
regulations prior to entering into a financial agreement for any transaction as outlined below.
(a) Any procurement contract for goods and services, regardless of type, expected to equal or
exceed the Federal procurement small purchase threshold (which is $25,000 and is cumulative
amount from all federal funding sources).
(b) Any procurement contract for goods and services, regardless of amount, under which the
Contractor will have a critical influence on or substantive control over the transaction.
28. Equal Employment Opportunity: In carrying out the program, the Contractor shall not
discriminate against any employee or applicant for employment because of race, color, religion,
sex, or national origin. The Contractor must take affirmative action to insure that applicants for
employment are employed, and that employees are treated during employment, without regard to
their race, color, religion, sex, or national origin. Such action shall include, but not be limited to,
the following: employment, upgrading, demotion, or transfer; recruitment or recruitment
advertising; layoff or termination; rates of pay or other forms of compensation; and selection for
training, including apprenticeship. The Contractor shall post in conspicuous places, available to
employees and applicants for employment, notices to be provided by the Government setting forth
the provisions of this non-discrimination clause. The Contractor shall state that all qualified
applicants will receive consideration for employment without regard to race, color, religion, sex, or
national origin. The Contractor shall incorporate the foregoing requirements of this paragraph in all
of its subcontracts for project or program.
The Contractor will, in all solicitations or advertisements for employees by or on behalf of the
Contractor, state that all qualified applicants will receive consideration for employment without
regard to race, color, religion, sex, or national origin.
The Contractor will send to each labor union or representative of workers with which he has a
collective bargaining agreement or other contract or understanding, a notice to be provided by the
State advising the said labor union or workers' representatives of the contractor's commitment
under this Section and shall post copies of the notice in conspicuous places available to employees
and applicants for employment.
The Contractor will comply with all provisions of Executive Order 11246 of September 24, 1965,
and of the rules, regulations, and relevant orders of the State.
The Contractor will furnish all information and reports required by Executive Order 11246 of
September 24, 1965, and by the rules, regulations, and orders of the State, or pursuant thereto,
and will permit access to his books, records, and accounts by HUD and the State for purposes of
investigation to ascertain compliance with such rules, regulations, and orders.
In the event of the Contractor's noncompliance with the non-discrimination clauses of this contract
or with any of such rules, regulations, or orders, this contract may be canceled, terminated or
suspended in whole or in part and the Contractor may be declared ineligible for further Government
contracts or federally assisted construction contract procedures authorized in Executive Order
11246 of September 24, 1965, or by rules, regulations, or order of the State, or as otherwise
provided by law.
The Contractor will include the portion of the sentence immediately preceding paragraph (1) and
the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless
exempted by rules, regulations, or orders of the State issued pursuant to section 204 of Executive
Order 11246 of September 25, 1965, so that such provisions will be binding upon each
subcontractor or vendor. The contractor will take such action with respect to any subcontract or
purchase order as the State may direct as a means of enforcing such provisions, including sanctions
for noncompliance: Provided, however, that in the event a contractor becomes involved in, or is
threatened with, litigation with a subcontractor or vendor as a result of such direction by the State
the contractor may request the State to enter into such litigation to protect the interest of the
The Contractor further agrees that it will be bound by the above equal opportunity clause with
respect to its own employment practices when it participates in federally assisted construction
work: Provided, that if the Grantee so participating is a local government, the above equal
opportunity clause is not applicable to any agency, instrumentality or subdivision of such
government which does not participate in work on or under the contract.
29. Federal Labor Standards Provisions: U.S. Department of Housing and Urban Development,
Office of Labor Relations form HUD-4010 (07/2003) ref. Handbook 1344.1 (Applicable to
construction contracts in excess of $2,000 or residential rehabilitation contracts
involving more than eight units. These regulations must be complied with or sanctions
will be instituted.)
The Project or Program to which the construction work covered by this contract pertains is being
assisted by the United States of America and the following Federal Labor Standards Provisions are
included in this Contract pursuant to the provisions applicable to such Federal assistance.
A. 1. (i) Minimum Wages. All laborers and mechanics employed or working upon the site of
the work will be paid unconditionally and not less often once a week, and without subsequent
deduction or rebate on any account (except such payroll deductions as are permitted by regulations
issued by the Secretary of Labor under the Copeland Act (29 CFR Part 3), the full amount of wages
and bona fide fringe benefits (or cash equivalents thereof) due at time of payment computed at
rates not less than those contained in the wage determination of the Secretary of Labor which is
attached thereto and made a part thereof, regardless of any contractual relationship which may be
alleged to exist between the contractor and such laborers and mechanics. Contributions made or
costs reasonably anticipated for bona fide fringe benefits under Section l(b)(2) of the Davis-Bacon
Act on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics,
subject to the provisions of 29 CFR 5.5 (a)(1)(iv); also, regular contributions made or costs
incurred for more than a weekly period (but not less often than quarterly) under plans, funds, or
programs, which cover the particular weekly period, are deemed to be constructively made or
incurred during such weekly period.
Such laborers and mechanics shall be paid the appropriate wage rate and fringe benefits on the
wage determination for the classification of work actually performed, without regard to skill, except
as provided in 29 CFR 5.5(a)(4). Laborers or mechanics performing work in more than one
classification may be compensated at the rate specified for each classification of the time actually
work therein: Provided, That the employer’s payroll records accurately set forth the time spent in
each classification in which work is performed. The wage determination (including any additional
classification an wage rates conformed under 29 CFR 5.5(a)(1)(ii) and the Davis-Bacon poster (WH-
1321) shall be posted at all times by the contractor and its subcontractors at the site of the work in
a prominent and accessible, place where it can be easily seen by the workers.
(ii) (a) Any class of laborers or mechanics which is not listed in the wage determination and which
is to be employed under the contract shall be classified in conformance with the wage
determination. HUD shall approve an additional classification and wage rate and fringe benefits
therefore only when the following criteria have been met:
(1) The work to be performed by the classification requested is not performed by a classification in
the wage determination; and
(2) The classification is utilized in the area by the construction industry; and
(3) The proposed wage rate, including any bona fide fringe benefits, bears a reasonable
relationship to the wage rates contained in the wage determination.
(b) If the contractor and the laborers and mechanics to be employed I the classification (if
known), or their representatives, and HUD or its designee agree on the classification and wage rate
(including the amount designated for fringe benefits where appropriate), a report of the action
taken shall be sent by HUD or its designee to the Administrator of the Wage and Hour Division,
Employment Standards Administration, U.S. Department of Labor, Washington, D.C. 20210. The
Administrator, or an authorized representative, will approve, modify, or disapprove every additional
classification action within 30 days of receipt and so advise HUD or its designee within the 30-day
period that additional time is necessary. (Approved by the Office of Management and Budget
under OMB Control Number 1215-0140.)
(c) In the event the contractor, the laborers or mechanics to be employed in the classification or
their representatives, and HUD or its designee do not agree on the proposed classification and
wage rate (including the amount designated for fringe benefits, where appropriate), HUD or its
designee shall refer the questions, including the views of all interested parties and the
recommendation of HUD or its designee, to the Administrator for determination. The
Administrator, or an authorized representative, will issue a determination within 30 days of receipt
and so advise HUD or its designee or will notify HUD or its designee within the 30-day period that
additional time is necessary. (Approved by the Office of Management and Budget under OMB
Control Number 1214-0140.)
(d) The wage rate (including fringe benefits where appropriate) determined pursuant to
subparagraphs (1)(ii)(b) or (c) of this paragraph, shall be paid to all workers performing work in
the classification under this contract form the first day on which work is performed in the
(iii) Whenever the minimum wage rate prescribed in the contract for a class of laborers or
mechanics includes a fringe benefit which is not expressed as an hourly rate, the contractor shall
either pay the benefit as stated in the wage determination or shall pay another bona fide fringe
benefit or an hourly cash equivalent thereof.
(iv) If the contractor does not make payments to a trustee or other third person, the contractor
may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably
anticipated in providing bona fide fringe benefits under a plan or program, Provided, That the
Secretary of Labor has found, upon the written request of the contractor, that the applicable
standards of the Davis-Bacon Act have been met. The Secretary of Labor may require the
Contractor to set aside in a separate account assets for the meeting of obligations under the plan
or program. (Approved by the Office of Management and Budget under OMB Control Number
2. Withholding. HUD or its designee shall upon its own action or upon written request of an
authorized representative of the Department of Labor withhold or cause to be withheld from the
contractor under this contract or any other Federal contract with the same prime contractor, or any
other Federal-assisted contract subject to Davis-Bacon prevailing wage requirements, which is held
by the same prime contractor so much of the accrued payments or advances as may be considered
necessary to pay laborers and mechanics, including apprentices, trainees and helpers, employed by
the contractor or any subcontractor the full amount of wages required by the contract. In the event
of failure to pay any laborer or mechanic, including any apprentice trainee or helper, employed or
working on the site of the work, all or part of the wages required by the contract, HUD or its
designee may, after written notice to the contractor, sponsor, applicant, or owner, take such action
as may be necessary to cause the suspension or any further payment, advance, or guarantee of
funds until such violations have ceased. HUD or its designee may, after written notice to the
contractor, disburse such amounts withheld for an on account of the contractor or subcontractor to
the respective employees to whom they are due. The Comptroller General shall make such
disbursements in the case of direct Davis-Bacon Act contracts.
3. (i) Payrolls and basic records. Payrolls and basic records relating thereto shall be maintained
by the contractor during the course of the work preserved for a period of three years thereafter for
all laborers and mechanics working at the site of the work. Such records shall contain the name,
address, and social security number of each such worker, his or her correct classification, hourly
rates of wages paid (including rates of contributions or costs anticipated for bona fide fringe
benefits or cash equivalents thereof of the types described in Section l(b)(2)(B) of the Davis-Bacon
Act), daily and weekly number of hours worked, deductions make and actual wages paid.
Whenever the Secretary of Labor has found under 29 CFR 5.5 (a)(1)(iv) that the wages of any
laborer or mechanic include the amount of any costs reasonably anticipated in providing benefits
under a plan or program described in Section l(b)(2)(B) of the Davis-Bacon Act, the contractor shall
maintain records which show that the commitment of provide such benefits is enforceable, that the
plan or program is financially responsible, and that the plan or program has been communicated in
writing to the laborers or mechanics affected, and records which show the costs anticipated or the
actual cost incurred in providing such benefits. Contractors employing apprentices and trainee
programs, the registration of the apprentices and trainees, and the ratios and wage rates
prescribed in the applicable programs. (Approved by the Office of Management and Budget under
OMB Control Numbers 1215-0140 and 1215-0017.)
(ii) (a) the contractor shall submit weekly for each week in which any contract work is performed
a copy of all payrolls to HUD or its designee if the agency is a party to the contract, but if the
agency is not such a party, the contractor will submit the payrolls to the applicant sponsor, or
owner, as the case may be, for transmission to HUD or its designee. The payrolls submitted shall
set our accurately and completely all of the information required to be maintained under 29 CFR
5.5(a)(3)(i). This information may be submitted in any form desired. Optional Form WH-347 is
available for this purpose and may be purchased from the Superintendent of Documents (Federal
Stock Number 029-005-00014-1), U.S. Government Printing Office, Washington, DC 20402. The
prime contractor is responsible for the submission of copies of payrolls by all subcontractors.
(Approved by the Office of Management and Budget Under OMB Control Number 1215-0129.)
(b) Each payroll submitted shall be accompanied by a “Statement of Compliance,” signed by the
contractor or subcontractor or his or her agent who pays for supervises the payment of the persons
employed under the contract and shall certify the following:
(1) That the payroll for the payroll period contains the information required to be maintained under
29 CFR 5.5 (a)(3)(i) and that such information is correct and complete’
(2) The each laborer or mechanic (including each helper, apprentice, and trainee) employed on the
contract during the payroll period has been paid the full weekly wages earned, without rebate,
either directly or indirectly, and that no deductions have been made either directly or indirectly
from the full wages earned, other than permissible deductions as set forth in 29 CFR Part 3;
(3) That each laborer or mechanic has bee paid not less than the applicable wage rates and fringe
benefits or cash equivalents for the classification of work performed, as specified in the applicable
wage determination incorporated into the contract.
(c) The weekly submission of a properly executed certification set forth on the reverse side of
Optional Form WH-347 shall satisfy the requirement for submission of the “Statement of
Compliance” required by subparagraph A.3.(ii)(b).
(d) The falsification of any of the above certifications may subject the contractor or subcontractor
to civil or criminal prosecution under Section 1001 of Title 18 and Section 231 of Title 31 of the
United States Code.
(iii) The contractor or subcontractor shall make the records required under subparagraph A.3.(i)
available for inspection, copying, or transcription by authorized representatives of HUD or its
designee or the Department of Labor, and shall permit such representatives to interview employees
during working hours on the job. If the contractor or subcontractor fails to submit the required
records or to make then available, HUD or its designee may, after written notice to the contractor,
sponsor, applicant or owner, take such action as may be necessary to cause the suspension of any
further payment, advance, or guarantee of funds. Furthermore, failure to submit the required
records upon request or to make such records available may be grounds for debarment action
pursuant to 29 CFR 5.12.
4. Apprentices and Trainees.
(i) Apprentices. Apprentices will be permitted to work at less than the predetermined rate for the
work they perform when they are employed pursuant to and individually registered in a bona fide
apprenticeship program registered with the U.S. Department of Labor, Employment Training
Administration, Office of Apprenticeship Training, Employer and Training Services, or with a State
Apprenticeship Agency recognized by the Office, or if a person is employed in his first 90 days of
probationary employment as an apprentice in such an apprenticeship program, who is not
individually registered in the program, but who has been certified by the Office of Apprenticeship
Training, Employer and Labor Services or a State Apprenticeship Agency (where appropriate) to be
eligible for probationary employment as an apprentice. The allowable ratio of apprentices to
journeymen in any craft classification shall not be greater than the ratio permitted to the contractor
as to his entire work force under the registered program. Any worker listed on a payroll at an
apprentice wage rate, who is not registered or otherwise employed as state above, shall be paid
not less than the applicable wage rate on the wage determination for the classification of work
actually performed. In addition, any apprentice performing work on the job site in excess of the
ration permitted under the registered program shall be paid not less than the applicable wage rate
on the wage determination for the work actually performed. Where a contractor is performing
construction on a project in a locality other than that in which its program is registered, the ratios
and wage rates (expressed in percentages of the journeyman’s hourly rate) specified in the
contractor’s or subcontractor’s registered program shall be observed. Every apprentice must be
paid at not less than the rate specified in the registered program for the apprentice’s level of
progress, expressed as a percentage of the journeymen hourly rate specified in the applicable wage
determination. Apprentices shall be paid fringe benefits in accordance with the provisions of the
apprenticeship program. If the apprenticeship program does not specify fringe benefits,
apprentices must be paid the full amount of fringe benefits listed on the wage determination for the
applicable classification. If the Administrator determines that a different practice prevails for the
applicable apprentice classification, fringes shall be paid in accordance with that determination. In
the event the Office of Apprenticeship Training, Employer and Labor Services, or a State
Apprenticeship Agency recognized by the Office, withdraws approval of an apprenticeship program,
the contractor will no longer be permitted to utilize apprentices at less than the applicable
predetermined rate for the work performed until an acceptable program is approved
(ii) Trainees. Except as provided in 29 CFR 5.16, trainees will not be permitted to work at less
than the predetermined rate for work performed unless they are employed pursuant to and
individually registered in a program which has received prior approval, evidenced by formal
certification by the U.S. Department of Labor, Employment and Training Administration. The ratio
of trainees to journeymen on the job site shall not be greater than permitted under the plan
approved by the Employment and Training Administration. Every Trainee must be paid at not less
than the rate specified in the approved program for the trainee’s level of progress, expressed as a
percentage of the journeyman hourly rate specified in the applicable wage determination. Trainees
shall be paid fringe benefits in accordance with the provisions of the trainee program. If the
trainee program does not mention fringe benefits, trainees shall be paid the full amount of fringe
benefits listed on the wage determination unless the Administrator of the Wage and Hour Division
determines that there is an apprenticeship program associated with the corresponding journeyman
wage rate on the wage determination which provides for less than full fringe benefits for
apprentices. Any employee listed on the payroll at a trainee rate, that is not registered and
participating in a training plan approved by the Employment and Training Administration shall be
paid not less than the applicable wage rate on the wage determination for the work actually
performed. In addition, any trainee performing work on the job site in excess of the ratio permitted
under the registered program shall be paid not less than the applicable wage rate on the wage
determination for the work actually performed. In the event the Employment and Training
Administration withdraws approval of a training program, the contractor will no longer be permitted
to utilize trainees at less than the applicable predetermined rate for the work performed until an
acceptable program is approved.
(iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen
under 29 CFR Part 5 shall be in conformity with the equal employment opportunity requirements of
Executive Order 11246, as amended and 29 CFR Part 30.
5. Compliance with Copeland Act requirements. The contractor shall comply with the
requirements of 29 CFR Part 3 which are incorporated by reference in this contract.
6. Subcontracts. The contractor or subcontractor will insert in any subcontracts the clauses
contained in subparagraphs 1 through 11 of this paragraph A and such other clauses as HUD or its
designee may by appropriate instructions require, and a copy of the applicable prevailing wage
decision, and also a clause requiring the subcontractors to include these clauses in any lower tier
subcontracts. The prime contractor shall be responsible for the compliance by any subcontractor or
lower tier subcontractor with all the contract clauses in this paragraph.
7. Contract termination; debarment. A breach of the contract clauses in 29 CFR 5.5 may be
grounds for termination of the contract and for debarment as a contractor and a subcontractor as
provided in 29 CFR 5.12.
8. Compliance with Davis-Bacon and Related Act Requirements. All rulings and
interpretations of the Davis-Bacon and Related Acts contained in 29 CFR Parts 1, 3, and 5 are
herein incorporated by reference in this contract.
9. Disputes concerning labor standards. Disputes arising out of the labor standards provisions
of this contract shall not be subject to the general disputes clause of this contract. Such disputes
shall be resolved in accordance with the procedures of the Department of Labor set forth in 29 CFR
Parts 5, 6, and 7. Disputes within the meaning of this clause include disputes between the
contractor (or any if its subcontractors) and HUD or its designee, the U.S. Department of Labor, or
the employees or their representatives.
10. (i) Certification of Eligibility. By entering into this contract the contractor certifies that
neither it (nor he or she) nor any person or firm who has an interest in the contractor’s firm is a
person or firm ineligible to be awarded Government contracts by virtue of Section 3(a) of the Davis-
Bacon Act or 29 CFR 5.12(a)(1) or to be awarded HUD contracts or participate in HUD programs
pursuant to 24 CFR Part 24.
(ii) No part of this contract shall be subcontracted to any person or firm ineligible for award of a
government contract by virtue of Section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1) or to be
awarded HUD contracts or participate in HUD programs pursuant to 24 CFR Part 24.
(iii) The penalty for making false statements is prescribed in the U.S. Criminal Code, 18 U.S.C.
1001. Additionally, U.S. Criminal Code, Section 1 01 0, Title 18, U.S.C., “Federal Housing
Administration transactions”, provided in part: “Whoever, for the purpose of . . . influencing in any
way the action of such Administration….. makes, utters or publishes any statement knowing the
same to be false….. shall be fined not more than $5,000 or imprisoned not more than two years, or
11. Complaints, Proceedings, or Testimony by Employees. No laborer or mechanic to whom
the wage, salary, or other labor standards provisions of this Contract are applicable shall be
discharged or in any other manner discriminated against by the Contractor or any subcontractor
because such employee has filed any complaint or instituted or caused to be instituted any
proceeding or has testified or is about to testify in any proceeding under or relating to the labor
standards applicable under this Contract to his employer.
B. Contract Work Hours and Safety Standards Act. The provisions of this paragraph B are
applicable only where the amount of the prime contract exceeds $100,000. As used in this
paragraph, the terms “laborers” and “mechanics” include watchmen and guards.
(1) Overtime Requirements. No Contractor or subcontractor contracting for any part of the
contract work which may require or involve the employment of laborers or mechanics shall require
or permit any laborer or mechanic in any workweek in which he or she is employed on such work to
work in excess of 40 hours in such workweek unless such laborer or mechanic receives
compensation at a rate not less than one and one-half times the basic rate of pay for all hours
worked in excess of 40 hours in such workweek.
(2) Violation; liability for unpaid wages; liquidated damages. In the event of any violation
of the clause set forth in subparagraph (1) of this paragraph, the contractor and any subcontractor
responsible therefore shall be liable for the unpaid wages. In addition, such contractor and
subcontractor shall be liable to the United States in the case of work done under contract for the
District of Columbia or a territory, to such District or to such territory), for liquidated damages.
Such liquidated damages shall be computed with respect to each individual laborer or mechanic,
including watchmen and guards, employed in violations of the clause set forth in subparagraph (1)
of this paragraph, in the sum of $10 for each calendar day on which such individual was required or
permitted to work in excess of the standard workweek of 40 hours without payment of the
overtime wages required by the clause set forth in sub paragraph (1) of this paragraph.
(3) Withholding for unpaid wages and liquidated damages. HUD or its designee shall upon
its own action or upon written request of an authorized representative of the Department of Labor
withhold or cause to be withheld, from any moneys payable on account of work performed by the
contractor or subcontractor under any such contract, or any other Federal contract with the same
prime contract, or any other Federally-assisted contract subject to the Contract Work Hours and
Safety Standards Act which is held by the same prime contractor such sums as may be determined
to be necessary to satisfy any liabilities of such contractor or subcontractor for unpaid wages and
liquidated damages as provided in the clause set forth in subparagraph (2)of this paragraph.
(4) Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses set
forth in subparagraph (1) through (4) of this paragraph and also a clause requiring the
subcontractors to include these clauses in any lower tier subcontracts. The prime Contractor or
lower tier subcontractor with the clauses set forth in subparagraphs (1) through (4) of this
C. Health and Safety. The provisions of this paragraph C are applicable only where the amount
of the prime contract exceeds $100,000.
(1) No laborer or mechanic shall be required to work in surroundings or under working conditions
which are unsanitary, hazardous, or dangerous to this health and safety as determined under
construction safety and health standards promulgated by the Secretary of Labor by regulation.
(2) The Contractor shall comply with all regulations issued by the Secretary of Labor pursuant to
Title 29 Part 1926 and failure to comply may result in imposition of sanctions pursuant to the
Contract Work Hours and Safety Standards Act, 40 USC 3701 et. seq.
(3) The Contractor shall include the provisions of this paragraph in every subcontract so that such
provisions will be binding on each subcontractor. The Contractor shall take such action with
respect to any subcontract as the Secretary of Housing and Urban Development or the Secretary of
Labor shall direct as a means of enforcing such provisions.
30. South Carolina Illegal Immigration Reform Act: The Grantee is required to comply with the
South Carolina Illegal Immigration Reform Act (signed June 4, 2008) requiring verification of lawful
presence in the United States of any alien eighteen years of age or older who has applied for state
or local public benefits, as defined in 8 U.S.C. Section 1621, or for federal public benefits, as
defined in U.S.C. Section 1611.
31. Conflicts of Interest and Ethical Standards, South Carolina Consolidated Procurement
(a) Official Position Not To Be Used For Financial Gain SECTION 2: Section 8-13-410 of
the 1976 Code is amended to read:
(1) "No public official or public employee shall use his official position or office to obtain
financial gain for himself.
(2) No public official or public employee shall participate directly or indirectly in procurement
when he has knowledge or notice that:
(a) he or any business with which he is associated has financial interest pertaining to
(b) any other person, business, or organization with whom he or a member of his
household is negotiating or has an arrangement concerning prospective
employment is involved in the procurement.
(3) Where a public official or public employee or any member of his household holds a
financial interest in a blind trust, he shall not be deemed to have a conflict of interest
with regard to matters pertaining to that financial interest, provided that disclosure of
the existence of the blind trust has been made to the appropriate supervisory office."
(b) Breach of Ethical Standards SECTION 3: Section 8-13-420 of the 1976 Code is amended
by adding the following paragraph at the end:
"It shall be a breach of ethical standards for any payment, gratuity, or offer of employment to
be made by or on behalf of a subcontractor under a contract to the prime contractor or higher
tier subcontractor or any person associated therewith, as an inducement for the award of a
subcontract or order. The prohibition against gratuities and kickbacks prescribed in this
paragraph shall be conspicuously set forth in every contract and solicitation thereof."
(c) Breach Of Ethical Standards, Administrative Remedies SECTION 4: The 1976 Code is
amended by adding:
(1) Except as may be permitted by regulations of the State Ethics Commission, it shall be a
breach of ethical standards for any public employee or public official who is participating
directly in the procurement process to resign and accept employment with any person
contracting with the governmental body with whom the public employee or public official
(2) No person shall use a former public employee or public official knowingly to act as
principal or as an agent for anyone other than the State or other governmental entity
with whom he is associated in connection with any judicial or other proceeding,
application, request for ruling, or other determination, contract, claim or charge or
controversy in which the public employee or public official participated personally and
substantially through decision, approval, disapproval, recommendation, rendering of
advice, investigation, or otherwise while such a public employee or public official where
the State or other governmental entity is a party or has a direct and substantial interest.
(3) It shall be a breach of ethical standards for a business, in which a public employee or
public official has a financial interest, knowingly to act as a principal or as an agent for
anyone other than the state or other governmental entity with which he is associated in
connection with any contract, claim or controversy, or any judicial proceeding in which
the public employee or public official either participates personally and substantially
through decision, approval, disapproval, recommendation, the rendering of advice,
investigation, or otherwise, or which is the subject of the official's or employee's official
responsibility, where the state or governmental entity is a party or has a direct and
(1) The provisions of this section and Sections 8-13-530 shall be in addition to all other civil and
administrative remedies against public employees or public officials which are provided by law.
(2) In addition to existing remedies for breach of the ethical standards of this chapter or
regulations promulgated hereunder, the State Ethics Commission may impose an oral or
written warning or reprimand.
(3) The value of anything received by a public employee or public official in breach of ethical
standards of this chapter or regulations promulgated hereunder shall be recoverable by
the State or other governmental entity in an action by the Attorney General against
anyone benefiting from such violations.
(4) Before a public employee's employment or a public official's association with the State or
governmental entity is terminated for a violation of the provisions of this chapter, notice
and an opportunity for a hearing shall be provided to the public official or public
(1) The provisions of this Section and Sections 8-13-510 and 8-13-530 shall be in addition to
all other civil and administrative remedies against nonpublic employees or officials which
are provided by law.
(2) In addition to existing remedies for breach of the ethical standards of this chapter or
regulations promulgated hereunder, the State Ethics Commission may impose against a
nonpublic employee or official any one o more of the following:
(a) written warnings or reprimands;
(b) debarment or suspension from being a contractor or subcontractor under public
contracts. Actions under this section may be appealed to the appropriate administrative
review panel, as authorized under section 11-35-4410, within ten days of the actual
notice of debarment or suspension to the affected party.
(3) The value of anything transferred in breach of the ethical standards of this chapter or
regulations promulgated hereunder by a nonpublic employee or official shall be
recoverable by the State or other governmental entity involved in any action by the
Attorney General against anyone benefiting from such violations.
(1) "The value of anything transferred or received in breach of the ethical standards of this
chapter or regulations promulgated hereunder by a public employee, public official, or
nonpublic employee or official may be recovered from the public employee, public
official, or nonpublic employee or official.
(2) Upon showing that a subcontractor in connection with the award of a subcontract or a
higher tier subcontractor in connection with the award of a subcontract or order
thereunder, it shall be conclusively presumed that the amount thereof was included in
the price of the subcontract or order and ultimately borne by the State or governmental
entity and shall be recoverable hereunder from the subcontractor making such
kickbacks. Recovery from one offending party shall not preclude recovery from other
Should any Subrecipient, contractor, subcontractor, employee or official know or perceive any breach
of ethical standards or conflict of interest under this or any other Authority grant, they shall
immediately notify in writing the South Carolina State Housing and Development Authority, NSP
Program, 301-C Outlet Pointe Blvd., Columbia, South Carolina, 29210. If the Authority finds any
circumstances that may give rise to a breach of ethical standards or conflict of interest, under any
grant, they shall notify the participating Subrecipient and the State Ethics Commission as appropriate.
The Authority may undertake any administrative remedies it deems appropriate, where there is a
breach of ethical standards or conflict of interest under the regulations governing the NSP program and
Section 8 Change Orders
Change orders should be kept to an absolute minimum and are for unforeseen problems or issues that
arise during construction. Change orders should not generally be done at the time of contract award,
unless all bidders have been given the opportunity to submit the same cost changes. Change orders
also will not be used to correct bidding computation errors.
Any change orders should be agreed upon and signed by the owner and contractor and submitted to
the Authority for review and approval. Change orders should be evaluated for cost via a cost estimate
to determine if the change order will result in increases that exceed the grant/loan amount prior to
approval. A sample copy of the Change Order Request Form is provided as Attachment 6-7.
Section 9 Bonding and Insurance
Contracts Less than $100,000: For contracts less than $100,000 NSP Recipients are required to
follow local procedures relating to bonding and insurance. Recipients should consult their engineers to
protect their interests.
Construction Contracts Over $100,000: For construction contracts over $100,000 the minimum
bonding and insurance requirements are as follows:
• A bid guarantee from each bidder equal to 5% of the bid price. The bid guarantee shall consist
of a bid bond, certified check, or other negotiable instrument accompanying the bid.
• A payment and performance bond from contractors for 100% of the contract shall be executed
in connection with each contract.
• NSP Recipients need to require adequate liability insurance from contractors.
• Direct Pay Irrevocable Letters or Credit – Acceptable LOC must be payable directly to the SC
State Housing Finance & Development Authority in the amount equal to the NSP award amount
to ensure payment in full for all completed work in place. All LOC will be reviewed to limit the
Section 10 Davis-Bacon Act Requirements
The Davis-Bacon Act (40 USC, Chapter 3, Section 276a-276a-5; and 29 CFR Parts 1, 3, 5, 6 and
7) is triggered when construction work over $2,000 is financed in whole or in part with NSP funds.
It requires that workers receive no less than the prevailing wages being paid for similar work in the
same area. Davis-Bacon does not apply to residential structures containing less than eight (8) units
or force account labor (construction carried out by employees of the recipient). The Authority
should be contacted if there is any situation where the applicability of Davis-Bacon is in question.
Typically, single-family homeowner properties are excluded under this exemption. However,
property is not limited to a specific building. Property is defined as one or more buildings on an
undivided lot or on contiguous lots or parcels, which are commonly-owned and operated as one
rental, cooperative or condominium project. Examples of 8+unit properties include:
5 townhouses side-by-side which consist of 2 units each.
3 apartment buildings each consisting of 5 units and located on one tract of land.
8 single-family (not homeowner) houses located on contiguous lots.
Davis-Bacon regulations require contractors to pay prevailing wages to all laborers and mechanics
employed in the development and allows for the withholding of funds to ensure compliance.
(Revision) Prevailing wages are determined by the Department of Labor. Wage determinations are
listed by construction type and county. They can be found online at
www.access.gpo.gov/davisbacon/ or www.wdol.gov. Wage decisions are “locked in” when the
contract is executed and no future modifications are applicable to the contract or project. While
construction is underway, NSP recipients that must comply with the Davis Bacon Act must submit
weekly payroll information to the Authority, conduct on-site employee interviews, and have
contracts and procurement policies that are in compliance with Federal Labor Standards. Once
Davis-Bacon is triggered, the requirements are applicable to the construction of the entire project,
including portions of the project that are not assisted with NSP funds. NSP prohibits breaking a
single project into multiple contracts for the purpose of avoiding Davis-Bacon.
On-site interviews with laborers and mechanics must be periodically conducted by the NSP
recipient’s appointed Labor Standards Officer. The purpose for the interviews is to compare the
worker’s views on the hours worked, type of work performed and wages received against the
information submitted in the certified payroll documents.
The Davis-Bacon Act does not apply to an individual who:
1. Performs a service or services for which the individual has volunteered, and thus receives no
2. Receives payment for expenses, reasonable benefits, or a nominal fee to perform services for
which the individual has volunteered, and such persons are not otherwise employed at any time
in the construction work.
3. Participates in a sweat equity program which permits members of an eligible family to provide
labor in exchange for acquisition of property for homeownership or to provide labor in lieu of, or
as a supplement to, rent payments.
4. Apprentices enrolled in bona fide apprenticeship programs approved and registered with the
Department of Labor or a DOL recognized State Apprenticeship Council.
10.3 Recipients Responsibilities
All NSP recipients that are required to comply with the Davis-Bacon Act regulations, at a minimum
are responsible for the following:
• Designating a Labor Standards Officer, who is a member of your organization that will be
responsible for ensuring compliance with Davis-Bacon and other applicable labor standards
requirements. See Designated Labor Standards Officer, which is provided as Attachment
• Ensuring that all bid documents, contracts and subcontracts for Davis-Bacon covered work
contain the Federal Labor Standards Provisions and the current Davis-Bacon Wage
1. Federal Labor Standards Clauses obligate the contractor to comply with Davis-Bacon
wage and reporting requirements and provide remedies for sanctions should violations
occur. The Federal Labor Standards are available online at
2. The Davis-Bacon Wage Decision is a listing of various construction work job
classifications and the minimum wage rates that must be paid based on county and
project type. See the Sample Wage Decision provided as Attachment 6-9.
• The Labor Standards Officer must make certain that the contractor fully understands their
responsibilities for Davis-Bacon compliance and provide training if necessary. A copy Making
Davis-Bacon Work (A Contractor’s Guide) has been provided as Attachment 6-10. A
copy of this guide must be provided to all applicable contractors and subcontractors working on
the project. Additional copies can be downloaded at www.hud.gov/offices/olr. Documentation
must be provided that each applicable contractor and subcontractor has received the guide and
understands their responsibilities regarding compliance with the Davis-Bacon regulations. This
documentation, called Receipt of Making Davis Bacon Work, is provided as Attachment
• Conduct on-site inspections including employee interviews with laborers and mechanics
employed on the construction project and to ensure that the applicable Wage Decision and
Department of Labor’s Notice to Employees Poster, provided as Attachment 6-12 are
posted on the job site. Record of Employee Interview Forms in English and Spanish have
also been provided in this Chapter as Attachments 6-13 and 6-14.
• Review certified payrolls reports and related documentation and submit to the Authority on a
weekly basis. See Attachment 6-15 Davis-Bacon Contractor Payroll Checklist provided
in this Chapter.
• Maintain full documentation of Federal Labor Standards administration and enforcement
activities for a minimum of 3 years.
• Inform the Authority immediately of any violations or potential violations for investigation.
10.4 Recordkeeping Requirements
A Davis-Bacon Recipient Checklist is provided as Attachment 6-16 as part of this manual.
For each construction contract and subcontract that is subject to the Davis-Bacon Act, the NSP
award recipient is required to maintain a file with the following documentation:
1. Copy of the Wage Rate
2. Procurement Documents containing the Labor Standards Provisions
3. Contracts containing the Labor Standards Provisions and Wage Decisions
4. Payrolls with evidence of their review
5. Employee Interviews
6. Evidence of any violations and the steps take to resolve them
Section 11 Copeland Anti-Kickback Act Requirements
The Copeland "Anti-Kickback" Act requires that payment to employees must be made at least once a
week without subsequent deductions or rebate on any account except "permissible" payroll deductions.
The recipient must obtain payrolls and a Statement of Compliance from contractors and subcontractors
weekly. The recipient must check these payrolls for accuracy. Each employer and the recipient must
maintain the basic records supporting the payrolls for five years after completion of the work.
Section 12 Contract Work Hours and Safety Standards Act
The Contract Work Hours and Safety Standards Act requires that laborers and mechanics shall not work
in excess of forty hours in any work week on the covered project unless they receive overtime
compensation at a rate not less than one and one-half times the basic rate of pay for those overtime
hours plus any fringe benefits.
Safety Standards and Accident Prevention provisions require contractors to:
• Comply with the safety standards provisions of applicable laws, building and construction codes,
the "Manual of Accident Prevention in Construction" published by the Associated General
Contractors of America, the requirements of the Occupational Safety and Health Act of 1970,
and the requirements of Title 29, Section 1518.
• Exercise every precaution at all times for the prevention of accidents and the protection of
persons (including employees) and property.
• Maintain at the construction office or other well known place on the job site, all articles
necessary for giving first aid to the injured, and make standing arrangements for the immediate
removal to a hospital or to a doctor's care those persons (including employees), who may be
injured on the job site. In no case shall employees be permitted to work at a job site before the
employer has made a standing arrangement for removal of injured persons to a hospital or
Contractors in violation of the Contract Work Hours and Safety Standards Act are also liable to the
United States for liquidated damages, computed at $10.00 per day for each employee who worked
overtime and was not paid overtime wages. Funds may be withheld from contractors and
subcontractors to satisfy unpaid wages and liquidated damages. Contractors and subcontractors must
be advised in writing that, if they are aggrieved by the withholding of a sum of liquidated damages,
they have the right to appeal within fifty days.
Section 13 Fair Labor Standards Act
The Fair Labor Standards Act (FLSA) contains Federal minimum wage rates and overtime (O/T)
requirements. These requirements generally apply to any labor performed and may be pre-empted by
other Federal standards such as the Davis Bacon and Related Act prevailing wage requirements and
Contract Work Hours and Safety Standards Act O/T provisions. Only the DOL has the authority to
administer and enforce FLSA. HUD will refer to the DOL any possible FLSA violations that are found on
Section 14 Handicapped Accessibility
NSP projects are required to be in compliance with the following three (3) regulations regarding
accessibility of federally assisted buildings, facilities and programs.
Section 504: NSP multi-family housing must meet the accessibility requirements of Section 504 of
the Rehabilitation Act of 1973. The Act prohibits discrimination against persons with disabilities in
the operation of programs receiving Federal financial assistance. HUD regulations implementing
Section 504 contain accessibility requirements for new construction and rehabilitation of housing as
well as requirements for ensuring that the programs themselves are operated in a manner that is
accessible to and usable by persons with disabilities. As a part of meeting the accessibility
requirements, recipients must have an architect or engineer execute and complete Attachment 6-25
Architect/Engineer Certification. This certification addresses that all building specifications meet
the minimum standards for making Buildings and Facilities Accessible to and usable by the disabled.
New Construction projects with five (5) or more units must have a minimum of five percent (5%) of
the units accessible to individuals with mobility impairments and an additional two percent (2%) of the
units accessible to individuals with sensory impairments.
Rehabilitation projects with fifteen (15) or more units and rehabilitation costs that will be seventy-
five percent (75%) or more of the replacement costs of the completed facility must have a minimum of
five percent (5%) of the units accessible to individuals with mobility impairments and an additional two
percent (2%) of the units accessible to individuals with sensory impairments.
Americans with Disabilities Act (ADA): The ADA requires that all facilities designed or
constructed after January 26, 1993 must be accessible and usable by disabled persons. The ADA also
requires the removal of structural architectural and communication barriers in existing facilities.
Removal must be readily achievable, easily accomplished and able to be carried out without much
difficulty or expense.
Fair Housing: Multi-family dwelling units must comply with the Fair Housing Act construction and
design requirements as required by 24 CFR 100.205. Please refer to CABO/ANSI Section A117.1
for compliance requirements.
Section 15 Energy Star
The Authority in partnership with HUD encourages the use of Energy Star qualified products and
practices when conducting rehabilitation and new construction activities for NSP projects. New housing
constructed with NSP funds must meet the standards of the 1992 Model Energy Code, or higher.
Energy Star specifications go beyond the required HUD standards and result in lowering utility costs,
improving comfort, increasing project value, reducing air pollution and improving the environment.
The use of Energy Star products and practices is encouraged, but is not required. Weatherization
expenses are eligible NSP costs only if the property meets minimum property standards upon
completion. Additional information about Energy Star standards, products and procurement resources
can be found online at the Energy Star homepage at http://www.energystar.gov/
Section 16 Debarment
NSP funded projects may not employ any contractors or subcontractors that have been debarred or
suspended from participating in federally funded programs. A listing of debarred contractors can be
found on the Excluded Parties Listing System’s (EPLS) web-site at www.epls.arnet.gov/index. A
Debarment Certification Form is provided as Attachment 6-17. All contractors and subcontractors
awarded contracts in excess of $100,000 must submit the Debarment Certification Form certifying
that they are not included on the Excluded Parties Listing System and are eligible to participate in
federally assisted projects.
Section 17 Authority Requirements
Building requirements that will apply to both rehabilitation and/or new construction and
must be completed in NSP units:
A. All exterior doors must have peepholes and single key deadbolt locks. (both rehabilitation and new
B. Both single and multi-family units must have smoke detectors inside each bedroom and in each
hallway. All detectors must be interconnected so that the activation of one will activate all others.
The detectors must be hardwired with a battery backup in the event of a power failure to the
residence. (both rehabilitation and new construction)
C. All change orders must be approved by the Authority prior to beginning work. (both rehabilitation
and new construction)
D. All work performed shall be finished and complete. All material shall be new and of standard or
better grade. (both rehabilitation and new construction)
E. Under rehabilitation, ALL major system deficiencies shall be corrected before any general property
improvement work is done.
F. Payments are disbursed for work in place. Payments can not be requested for stored materials.
G. Screens are required for all windows.
H. All rental units shall be furnished with blinds.
Section 18 Building Requirements (new construction and rehabilitation)
18.1 Building Codes
All work must be in compliance with the International Code Series. Electrical codes must comply
with the current NED or the version accepted by the locality in which the work is being performed.
18.2 Work Write-Ups and Cost Estimates
An initial inspection of the property should be conducted to determine the cost and type of work
necessary to bring the property into compliance with the established property rehabilitation
standard. This is termed a work write-up and cost estimate. The work write-up should be
designed so that it can form the basis for bid specifications.
The work write-up should specify all the work that must be done to bring the building into
compliance with health and safety standards and other applicable codes. The technical
specification used in the NSP Program should be included, or incorporated by reference in the work
Work write-ups are usually done on a room-by-room basis and are sufficiently detailed as to
quantity and quality of the work to be performed. The recipient should certify, by signature to the
work write-up, that the specified repairs are adequate to bring the unit up to health and safety and
other applicable codes.
This chapter should be used by recipients to ensure consistency in the quality of work and
materials.. This chapter, accompanied by the work write-up and outlines in more detail the full
scope of the work, the quality and type of materials required and the manner in which work is to be
performed. All contractors in the program should receive a copy of this chapter for reference.
Once the work write-up has been prepared, the cost of the work has to be estimated. The cost
estimate should be professionally derived and based on the scope of the work and the technical
specifications contained in the work write-up. The cost estimate is necessary to determine that the
work can be done within the grant limits.
Cost estimates must be figured on a line item basis. "Lump sum" estimates are prohibited as they
are not very accurate and may lead to cost overruns and a great deal of confusion. In addition, the
bid accepted by the recipient should not exceed the cost estimate by more than ten (10%) percent.
If the low bid is more than ten (10%) percent below the cost estimate, the contractor shall have
the option to withdraw the bid or to accept a contract for the amount of his bid.
18.3 Characteristics of Accurate and Effective Work Write-Up and Specifications
Use formats appropriate to the audience!
Trade by trade - this is most helpful to general contractors and their subcontractors who need to
have a sense of the total amount of work they are bidding on; code inspectors prefer this method
Room by Room - this format is easy to prepare and easiest for the property owner to understand
but does not provide information in a format most accessible to contractors; easy for HQS and
rehab inspectors to use when inspecting for payments.
AVOID: etc., standard size, approximately, as necessary, all missing or damaged and/or any.
EXAMPLES of HOW TO in creating a work write up so that it is clear to all is provided on
the following pages.
Always include quantity measures (sq. ft., numbers, etc.) as opposed to phrases such as "as
Incorrect: Install new bath tiles as needed.
Correct: Install 25 sq. ft. of 2 inch x 2-inch new bath tiles.
If the new wall to wall carpet is supposed to be first quality, acrylic pile carpet of 15 denier or coarser,
and not wool or lesser density, say so.
Specification of size is essential; if the doors are to be 7-6 by 3-6 feet say so.
Incorrect: Re-plaster walls in living room as needed.
Correct: Re-plaster 3 feet x 5 feet section in center of north wall of living room as
indicated on sketch.
Incorrect: Scrape and repaint porch (which one - front or back, all of it or just some of it?)
Correct: Scrape and repaint floor and columns of front porch.
There are usually many ways to fix something and how it is done makes a difference in cost,
time, and aesthetics.
Incorrect: Repair damaged plaster in rear bedroom.
Correct: Re-plaster 1 x 1 floor damaged plaster on northeast corner of rear bedroom.
Use "repair" or "replace", but not together!
1. There are major differences in cost, quality and expectations.
2. When using repair, couple with the construction method.
Incorrect: Repair or replace tub.
Correct: Repair tub in front bath by (method).....
Correct: Replace tub in front bath with .....
Use "and" or "or" but never together!
Incorrect: Repair and/or replace defective windows.
Correct: Repair sashes on two north windows of front bedroom and replace two east
18.4 House Diagram
18.5 Sample Work Write-Up (single family rehabilitation)
NOTE: The word “Code” in this example refers to the parts of a residence as
outlined on the previous page.
NOTE: “Unit Prices” in this example may not be the same for your area. Each user
should conduct a unit price analysis for its area.
1. Install 8 x 8 x 16 concrete blocks, piers and underpin where necessary.
2. Install foundation vents - shutter type.
Unit Price Material Labor UE/EL Total PBE
28 150 1.50 225.00 166.20 391.20
4 6.00 24.00 12.00 36.00
Tax 12.45 12.45
Total 261.45 178.20 439.65
1. Install 2 x 6 rafters and ceiling joists.
2. Remove tin strip where necessary and install OSB board.
3. Install 15lb. felt.
4. Install 235 shingles 3-tab type.
5. Install 1 x 6 fascia board.
6. Remove flue below finish floor and repair holes.
7. Install two (2) turbine roof vents.
Quantity Material Labor UE/EL Total PBE
Code Unit Price
10 55 5.10 280.50 74.50 355.00
18 67 5.33 357.11 202.89 560.00
64 6 9.00 54.00 0 54.00
19 13 25.50 331.50 303.00 634.50
7 165 .53 87.45 64.55 152.00
63 0 0 0 50.00 50.00
57 2 35.00 70.00 30.00 100.00
Tax 59.03 59.03
Total 1,239.59 1,964.53
1. Install 2 x 8 floor joist and sills-kitchen area
2. Install OSB board sub-flooring-kitchen area
3. Install 5/8" underlayment plywood-kitchen area
4. Install 2 x 4 studs, plates, etc.-kitchen
5. Install 2 x 6 ceiling joist
6. Install siding to match present siding as near as possible
7. Install railing on front porch and down steps using treated lumber
8. Enclose door on back of dwelling
9. Install concrete block steps to side door
10. Treat house for termites
11. Paint exterior
Quantity Material Labor UE/E Total PBE
Code Unit Price L
33 39 4.87 189.93 75.00 264.93
sq. 42 6 5.33 31.98 32.02 64.00
65 6 9.75 58.50 29.50 88.00
22 52 4.25 221.00 95.00 316.00
16 55 5.10 280.50 74.50 355.00
3 428 sf/thou 975.00 438.98 290.70 729.68
66 20 5.50 110.00 60.00 170.00
67 25.00 30.00 55.00
68 50 1.50 75.00 50.00 125.00
69 Subcontract 400.00 400.00
62 11 23.00 253.00 542.00 795.00
Tax 84.20 84.20
Total 1,768.09 3,446.81
DOORS AND WINDOWS
1. Remove front door, jamb, etc., and open area and install 3-0 x 6-8 steel clad door on front
2. Remove window on side of swelling and install 2-8 x 6-8 steel clad door
3. Install storm window
Quantity Material Labor UE/EL Total PBE
Code Unit Price
70 1 165.00 165.000 153.00 318.00
70 1 155.00 155.00 175.00 330.00
71 5 30.00 150.00 50.00 200.00
Tax 23.50 23.50
Total 493.50 378.00 871.50
SMOKE DETECTOR AND INSULATION
1. Install 6" insulation in attic
2. Install smoke detector (hard wire with battery back up) -- one (1)
Quantity Material Labor UE/EL Total PBE
Code Unit Price
46 16 rolls 16.20 259.20 85.00 344.2
61 1 24.50 24.50 10.00 34.50
Tax 14.19 14.19
Total 297.89 392.8
APPLIANCES (HOT WATER HEATER INCLUDED)
1. Relocate hot water heater
2. Rough in for washer and dryer
Quantity Material Labor UE/ Total PBE
Code Unit Price EL
52 1 40.00 40.00 100.00 140.00
60 78.00 78.00 100.00 178.00
Tax 5.90 5.90
Total 123.90 200.00 323.9
HEATING AND A/C AND METER BOX
1. Install 200 AMP circuit breaker box
2. Install electrical as per sketch (new cut in 220 lines, receptacles, switches, etc.)
3. Light fixture allowance lt. bulbs included $45.00
4. Install wall furnace
Quantity Material Labor UE/ Total PBE
Code Unit Price EL
55 225.00 200.00 425.00
58 20 24.75 495.00 155.00 650.00
58 7 6.42 44.94 44.94
34 1 553.31 553.31 159.00 712.31
Tax 68.66 68.66
Total 1,386.91 514.00 1,900.9
BEDROOMS (2), LIVING ROOM AND HALL
1. Repair walls, ceilings paint trim and ceilings
2. Install closet: (3)
A. 2 x 4
B. Rod and shelves
C. Install sheetrock, finish and paint
D. Repair window stop where necessary
E. Repair window casing where necessary
F. Install and repair baseboard where necessary
G. Paint walls in living room
H. Install pre-finished paneling in bedrooms and hall $12.00 per sheet allowance per 4' x 8' sheet
(paint living room)
Quantity Material Labor UE/ Total PBE
Code Unit Price EL
62 560.00 400.00 960.00
49 3 45.00 135.00 135.00 270.00
72 3 11.50 34.50 24.00 58.50
72 3 20.00 60.00 75.00 135.00
72 121.00 121.00 81.00 202.00
72 48' .31 14.88 21.00 35.88
72 122' .75 91.50 72.00 163.50
62 2 18.00 36.00 100.00 136.00
73 41 12.00 492.00 162.00 654.00
Tax 77.25 77.25
Total 1,622.13 1,070.00 2,692.13
1. Install sheetrock in ceiling, tape and spackle
2. Install pre-finished paneling $12.00 allowance per 4 x 8 sheet
3. Install 3¼ baseboard
4. Install 3-0 x 3-2 window over kitchen sink with screen
5. Install window casing
6. Install window stool
7. Install window stop with lock
8. Install stainless steel sink
9. Install birch cabinets as per sketch (with pine shelves)
10. Install formica on top of base cabinets
11. Paint trim and stain cabinets
12. Install shoe mould
13. Install vinyl $7.00 per sq. yd.
Quantit Material Labor UE/EL Total PBE
Code y Unit Price
45 4 14.00 56.00 110.00 166.00
73 10 12.00 120.00 130.00 250.00
72 40 .63 25.20 7.76 32.96
51 10 .68 6.80 15.00 21.80
72 20' .75 15.00 9.00 24.00
72 4' .85 3.40 1.00 4.40
72 11 .29 3.19 1.00 4.19
60 1 112.00 112.00 125.00 237.00
59 250.00 320.00 570.00
59 45.00 81.00 126.00
62 2 20.00 40.00 162.00 202.00
72 40 .29 11.60 9.00 20.60
43 20 7.00 140.00 100.00 240.00
Tax 41.40 41.40
Total 869.59 1,070.76 1,940.35
1. Install soap dish, toilet paper holder and tooth brush holder
2. Install 1/4" lauan plywood over present floor
3. Install vinyl $7.00 per sq. yard
4. Install sheetrock on wall, tape, sand and paint semi-gloss
5. Install fiberglass tub with p.v.c. surround
6. Install commode
7. Install 2' vanity with lavatory
8. Install fan/heat combination
9. Install medicine cabinet with light over top portion of cabinet
10. Install 3¼ baseboards
11. Install shower rod
12. Install shoe mould
Quantity Material Labor UE/E Total PBE
Code Unit Price L
60 1 25.00 25.00 10.00 35.00
65 2 9.00 18.00 18.00 36.00
43 7 yards 7.00 49.00 56.00 105.00
50 130.00 120.00 250.00
60 1 320.00 320.00 125.00 445.00
60 1 95.00 95.00 125.00 220.00
60 1 250.00 250.00 125.00 375.00
58 1 85.00 85.00 25.00 110.00
72 24" .63 15.12 10.00 25.12
74 1 8.00 8.00 3.00 11.00
72 24 .29 6.96 5.00 11.96
Tax 52.86 52.86
Total 1,054.94 622.00 1,676.94
18.6 Sample Work Write-Up (multi-family rehabilitation)
Description of Repairs Quantity Unit Price Material Labor TOTAL
1. HVAC 18 1,865.55 33,579.90
2. Electrical 18 1,117.50 20,115.00
Bath Fans 18 40.00 720.00
Attic Light 18 25.00 450.00
Range Hood 18 75.00 900.00 2,250.00
Reseal Commodes 18 52.00 36.00 900.00 1,872.00
Disconnect Washers 18 50.00 900.00 1,800.00
Kitchen Sink and Faucet 18 394.00 7,092.00
30 Gallon Water Heater 18 337.55 6,075.90
Shingles 210 SQ 65.00 13,650.00
Flashing & Ridge Vent
5. Sheet Rock 996.88 1,744.00 900.00 3,640.88
Interior - 2 Coats & Ceiling 18 850.00 15,300.00
Kitchen 18 825.00 10,350.00 4,500.00 29,700.00
8. Insulation 6" Blown
9. Storm Doors 36 116.00 4,176.00
10. Wrap New 12" Overhang
Wrap Existing Rake
11. Wrap Existing Louvers
Wrap Windows and Doors
Siding at Front Entrance
Siding At Gables
35 63.00 2,205.00
12 Vinyl Shutters
13. Replacement Windows 114 258.40 29,457.60
Kitchen 8x9 18 165.00 2,970.00 5,940.00
Bath 5x6 18 85.00 1,530.00 3,060.00
Refrigerators 600.00 600.00
Range 24" Electric 500.00 9,000.00 250.00 9,750.00
TOTAL 8,480.88 26,530.00 7,450.00 191,434.28
Sample Work Write-Up Continued (multi-family rehabilitation)
Description of Repairs Quantity Unit Price Material Labor TOTAL
1. Roof Extension 10’
Duplex 4 Required 1,760.00 1,760.00
2. Roof Extension
Window and Porch
5 Plex 4 Required 1,920.00 1,920.00
Window Twin 3/0 x 5/2-4
Jamb 120 x 4 480.00 480.00
Window 8 225.00 1,800.00 3,600.00
Louvers 350.00 350.00
3. Extension Eve Overhang
2 Front Stoops 2,200.00 2,200.00
4. Remove and Re-hang
5. Rear Stoop (4 x 4)
Description of Repairs Quantity Unit Price Material Labor TOTAL
5. Rear Stoop (4 x 4)
Awning Type 18 230.00 4,140.00 8,820.00
6. Close in Bath Windows
Vinyl 18 75.00 270.00 630.00 2,250.00
7. Front and Rear Steps
Front 12 650.00 7,800.00 15,600.00
Rear 18 650.00 11,700.00 23,400.00
Total 1,830.00 32,420.00 630.00 60,380.00
Description of Repairs Quantity Unit Price Material Labor TOTAL
1. Fire Wall At Attic
Framing 12 340.00 1,080.00 3,000.00 8,160.00
2. Attic Access 18 65.00 270.00 900.00 12,870.00
3. New Exterior Doors
Front 18 165.00 2,970.00 1,350.00 7,290.00
Back 18 165.00 2,970.00 1,350.00 7,290.00
4. Trim At Windows 5 Plex 120.00 300.00 420.00
5. Threshold and Weather-strip 1,260.00 1,260.00 2,520.00
6. Bath Wall Board 18 75.00 900.00 450.00 2,700.00
7. Bath ACC Kit 18 75.00 900.00 450.00 2,700.00
8. Medicine Cabinet 18 61.00 648.00 450.00 2,196.00
Description of Repairs Quantity Unit Price Material Labor TOTAL
General Clean-Up 3,000.00 3,000.00
Total General Maintenance 0.00 0.00 3,000.00 3,000.00
Total Cost Of All Repairs 11,256.88 70,068.00 20,590.00 300,920.28
18.7 Performance and Material Specifications
Performance & Material Specifications Disclaimer: The performance and material specifications
found in this manual are not all inclusive. The owner is responsible for ensuring that all federal, state,
and local requirements are met.
The Contractor shall fill any areas that collect water and divert water away from
building. All fill dirt shall be covered with a 2" minimum of topsoil and raked smooth.
B. Foundation Vents:
Where they are lower than the finish grade, the contractor shall erect a waterproof vent
well at least 4" deeper and 4" wider than the vent opening and shall be at least 8" from
the foundation wall. It shall extend at least 4" above the finish grade. All
measurements shall be I.D. of the well.
Any improper grading or paving adjacent to the building shall be corrected to assure
surface drainage away from foundation walls.
A. Site Work:
Remove all garbage, litter, junk, waste, debris, dead trees, plants and vegetation, etc.
from site and deposit at legal dump areas. Fill all existing open wells, shafts, etc. with
approved material. All liquid residues in the septic tank and distribution box shall be
removed and disposed of by the contractor according to the applicable laws and
regulations. The septic tank shall be filled with sand screenings, gravel, dust, river
sand, or asphalt screenings within 6" of the grade. The remaining 6" shall be filled with
topsoil. The contractor shall assure that all sewer or drainage lines are disconnected
from the tank before the tank is filled. No materials to be removed shall be buried on
premises. Perimeter grade at building line shall divert water away from building.
B. Protection From Rodents, Termites or Other Infestation:
Each building and all exterior appurtenances on the site shall be effectively protected
against rodents, termites or other vermin infestation. Treatment for termites shall be
conducted by state licensed and bonded Pest Control Operators only.
C. Inspection for Decay and Deterioration:
An inspection shall be made of both interior and exterior construction for evidence of
rot, rust, termite damage or decay or other hazards. Where structural damage to such
materials is found to exist, repair/replacement, shall be performed.
1. Concrete shall be regular weight and work shall conform to requirements of ACI
Standard 318. Mixture shall be proportioned and mixed to develop a minimum
of 3000 psi after 28 days. The maximum allowable slump shall be 5 inches.
Concrete where exposed, other than slabs, shall be finished to smooth, even
texture. All concrete shall be reinforced to conform to requirements of Concrete
Reinforcing Steel Institute. Aggregate shall be size 3/4" and down.
2. Ready mixed concrete shall conform to ASTM C 94.
3. Reinforcing Steel Bars shall comply with ASTM Specifications A615 and be grade
4. Interior Floor Slabs on grade shall be reinforced with one layer of 10 GA. W1.4 x
W1.4 welded wire mesh. Concrete shall be placed over 6 mil poly vapor barrier.
Crushed stone shall be placed under slabs. Trowel finish interior slabs. Seal
slabs where exposed and/or as indicated.
5. Exterior Slabs shall be 4" minimum thickness. Broom finish drives and walks.
Finish grade to 1" below slab finish.
6. Provide Openings in forms to accommodate work of other trades. Accurately
place and securely support items built into forms.
7. Provide construction, isolation and control joints as required. Exposed slabs shall
have central joints maximum 10'-0" o.c.
8. Perimeter Expansions Material shall be one-half inch performed, asphalt
fiberboard conforming to ASTM D1751. Use at perimeter of all slabs adjoining
or abutting other materials other than soil.
A. Masonry standards shall comply with recommendations of National Concrete
1. Block exposed to soil shall be grade N-1 and conform to ASTM C90. Joints shall be
2. Mortar and materials shall conform to ASTM C 270. Mortar in contact with earth
shall be type M. Mortar for exterior exposed walls and bearing partitions shall be
type S. Interior, type N.
3. Wall Joint Reinforcing shall be at all walls and maximum 16" o.c. vertically. Width 1-
1/2" to 2" less than wall thickness.
4. Lay masonry units in a running bond pattern.
5. Cut exposed masonry units, where necessary, with a power saw. Avoid the use of
less than half-size units, by proper layout.
6. Bond intersecting walls and new existing walls with anchors spaced 16" o.c.
7. Hold uniform Joint Sizes at 3/8".
8. Cut joints flush and tool slightly concave, unless otherwise indicated.
B. Masonry: General Requirements
1. Mortar shall consist of a mixture manufactured especially for the use and
combined with proper proportions of sand and water as per manufacturer's
2. No masonry work shall be done when the temperature of the surrounding air is
below forty (40) degrees Fahrenheit and falling.
3. All joints shall be completely filled with mortar.
4. All brick, stone, or block used shall match adjacent work and the owner or his
agents shall approve samples before starting the work, unless the work is to be
painted or covered.
5. Soft type brick shall not be allowed.
6. Tuck pointing shall be done only after the joints have been raked out to a
minimum depth of 1/2" and wetted.
7. All damaged, loose, or soft brick in area to be rebuilt must be removed until
sound brick is encountered.
8. New brick patches shall be toothed into and matched in size joints and bond to
the existing work.
9. Face brickwork shall be tied to the back-up work with headers let into existing
back-up wall as required.
10. Mortar shall be made to match existing color as closely as possible after it is
Chimney Construction - General Requirements
1. A chimney shall not carry any load other than its own dead weight.
2. Chimney footings shall be a minimum of twelve (12) inches past brickwork with a
minimum depth of twelve (12) inches below finished grade on hard clay. Footing
is to be a minimum of 12" in thickness. Hearth is to be supported from ground
by block or solid masonry.
3. Chimneys shall extend at least three (3) feet above the highest point where they
pass through the roof of the building and at least two (2) feet higher than any
ridge within ten (10) feet of such chimney.
4. Chimney crickets of metal or other roofing materials shall be installed on solid
roof decking consistent with the construction of the roof. There shall be a 2"
minimum clearance between brickwork and wood framing. Install metal flashing
around chimney where roof meets chimney. Rake out the mortar joint to a
depth of 2". Install 1" wide lead plugs 8" apart, to secure flashing and bend
down flashing below the base flashing on the chimney front as one continuous
piece. On the sides and rear, the sections of flashing are cut to conform to the
locations of brick joints and pitch of the roof. Lap flashing 3" minimum, lap in
direction of water flow down roof. (See detailed plans). Chimneys are to be fire
stopped at the floor and ceiling with fireproof material.
D. Masonry Flue:
1. Provide a masonry flue 16" x 16" with 8" x 8" flue lining and thimble to receive
furnace flue pipe. Footing is to be 8" concrete, 12" minimum below finish grade
and to extend 6" past brick or block work. Concrete flue brick or brick may be
2. Flue to be enclosed with 2 x 4 framing and finished with 1/2" sheetrock around
outside. Flue is to be flashed and counter flashed with metal where flue
penetrates through roof assembly. Fire stops are to be installed at the floor and
3. All existing metal flues suspended from ceiling are to be removed. All brick,
mortar, and metal flue hangers or plates are to be removed. Ceiling joists,
rafters ceiling and roof sheathing are to be patched to match existing.
4. Chimney Repairs: All chimneys to be repaired must be torn down to solid mortar
and brickwork. No deteriorated mortar or brick will be permitted. All unsafe or
dangerous chimneys shall be made safe or taken down completely.
E. Factory-Built Chimneys:
Factory built chimneys shall be UL listed and shall be installed in accordance with the
conditions of the listings and the manufacturer's instructions.
1. Nothing contained in these specifications shall be construed as prohibiting the use
of insulated suspended factory-build chimneys provided such assemblies have
been tested and approved by a recognized laboratory for the use intended and
are installed in accordance with their approval.
2. Factory-build chimneys may be installed with zero clearance on wood structural
members, such as framing, roof rafters, floor and ceiling joist and other
component structural members, when it has been determined by test reports of
recognized and approved testing laboratories that the unit does not transmit heat
to the supporting combustible members of more than ninety (90) degrees F.
above roof temperature.
3. Supports for such chimneys attached to ceiling or floor joists shall be permitted
providing the joists are of adequate size to support additional loads.
4. All chimney installations shall conform to the height requirements of the building
5. Flue Pipe: No flues shall be exposed on inside of house or outside except those
approved by U.L. Those encased shall be framed with 1/2" sheetrock.
F. Chimney Plastering:
When the Work Write-up calls for plastering a chimney, the following shall apply:
1. All loose and cracked mortar shall be removed.
2. All holes and voids shall be filled.
3. A plaster coat of Sure Wall a minimum of 1/8" thick shall be applied.
4. If the chimney has deteriorated, apply a coat of plastic roof cement to the
5. Contractor shall be responsible to keep the roof clean and spotless.
Miscellaneous Steel shall conform to ASTM A36 and AISC's "Specification for the Design,
Fabrication, and Erection of Structural Steel for Buildings". Shop prime with Tnemec's
Red Metal Primer in accordance with manufacturer's recommendations.
1. Wrought Iron Hand Railing - When work write up calls for wrought iron railing, it
shall have a 1-7/8" top railing, 1/2" x 1 x 1/2" x1/8" thick channel bottom rail,
1/2" x 1/2" solid balusters securely welded to top and bottom railing. Balusters
spacing and span to be treated the same as for wood railings. All railing shall
have 1 coat of rustoleum primer and 1 coat of good quality enamel. Railing shall
be securely welded to all corners and flats.
2. Single Wrought Iron Step Railing - Shall consist of a Dixie Cap top railing with a
1' x 1" newel post. Newel post to be anchored in concrete a minimum of 12" in
ground. Top railing shall be welded to newel post and wrought iron corner post
or wrought iron flat. Railing shall have 1 coat of rustoleum primer and 1 coat of
good quality exterior enamel.
3. Wrought Iron Columns - When work write-up calls for wrought iron corners, they
shall be a minimum of 9" each side and made of a 1" x 1" material and cross
braces at the top and bottom. The design shall be the "S" scrolls unless other
specified. All corners and flats shall have 1 coat of rustoleum primer and 1 coat
of good quality exterior enamel.
a. Lumber Standard American Softwood Lumber Standard PS 20 (U.S. Dept.
Comm.), S4S, 19% moisture at time of dressing, except as otherwise indicated.
b. Plywood Standard: Softwood plywood - Construction and Industrial PS 1 (U.S.
Dept. Comm.), type and grade as indicated.
c. Interior Woodwork: Architectural Woodwork Institute.
d. Carpentry Installations: Except as otherwise indicated, comply with "Manual of
Home Framing" by National Forest Products Association, including nailing, fire
stopping, anchorage, framing and bracing.
e. Nailing/Fastening: shall be in strict accordance with Western Wood Products
Association and Southern Forest Products Association's recommendations.
f. Hardware: Such as nails, spikes, lag screws, bolts, washers, steel plates and
straps and other carpenters irons for erection of carpentry in place shall be of
suitable types and sizes to draw members into place and hold same rigidly.
g. Roof Sheathing: Plywood, APA, 4' x 8' x 1/2" CDX or waferboard.
h. Wall Sheathing: Sheathing to be plywood, APA, 4' x 8' x 1/2" or waferboard and
to be used as firm base for wood trim as required.
i. Wood Treatment: Preservation pressure-treated wood, AWPI LB-2, pressure
treated with water borne preservatives. Treat to a minimum net retention of 40
pounds per cubic foot of Wolman CCA wood preservative chemicals. Kiln-dry to
15% moisture content after treatment. Treat sills, sleepers, blocking, furring,
and stripping and similar items in direct contact with masonry, stonework and
concrete. And, treat all other materials noted.
j. Finish Carpentry: Interior Trim and Finish Lumber: Paint finish, unless otherwise
noted, "D" grade SYP Poplar, Fir or #2 Spruce. Painted material may be finger-
k. Door Jambs: SYP, "D" grade, painted.
l. Casings and Moldings: "D" grade, SYP Poplar, Fir or #2 Spruce, C or better,
m. Shelving (painted): Concealed shelving (behind doors 3/4" x shelf width, #2
Spruce or Ponderosa pine plywood with hardwood edge or Novoply with
n. Miscellaneous Hardware: Closet rods, supports and adjustable shelf standard
shall be standard builder’s grade.
Framing Lumber shall be air or kiln dried, No. 2 dimension, Douglas Fir construction
grade, or Southern Yellow Pine No. 2 or construction grade Spruce (stud grade for all
a. Floor Joist - Maximum spans for floor joists shall be in accordance with the
Standard Building Code.
b. Notches on the ends of joists shall not exceed one-fourth (1/4) in depth. Holes
bored for pipes or cables shall not be within two (2) inches of the top or bottom
of the joist, and the diameter or any such hole shall not exceed one-third (1/3)
of the depth of the joist. Notches for pipes in the top or bottom of joist shall not
exceed one-sixth (1/6) the depth and shall not be located in the middle one-third
(1/3) of the span.
c. Bearing partition stud walls shall not be constructed of materials less than 2" x 4"
studs. The long dimension of the studs should be perpendicular to the walls, 16"
d. On new construction, framing material in direct contact with slab or masonry or
within 8" of the soil or otherwise subject to moisture shall be pressure treated
with preservative for condition used and shall be grade stamped as such.
e. On new construction, girders within 12" of the soil and joists within 18" of the
soil shall be pressure treated timber. (If these members are to be replaced
during rehabilitation of the structure, apply regulation.)
f. Leveling of floors, as specified in the work write-up, shall be accomplished to the
extent feasible and practicable. The contractor shall repair all damage to the
structure that may occur as a result of leveling.
C. Sub-flooring - May be plywood or common boards No. 2:
a. All floor joists shall be covered with sub-flooring as follows: Twenty-four inches
(24") O.C. with 3/4" sub-floor and sixteen inches (16") O.C. with 5/8" sub-floor.
Sub-flooring may be omitted when joist spacing does not exceed sixteen (16")
O.C. and nominal one-inch (1") tongue and grooved wood flooring is applied
perpendicular to the joists.
b. When resilient flooring is applied directly to plywood sub-floor, it shall be applied
in accordance with the Standard Building Code.
c. Nail plywood sub-floor to joists at each bearing with 8 D common or 6 D
threaded nails spaced 6" O.C. along intermediate members.
d. Install plywood with outer plies at right angles to the joists and staggered so that
the end joints in adjacent panels bear on different joists.
e. Common boards used on sub-flooring shall not be over 6" wide or less than 3/4"
thick when laid on joists spaced 16" O.C.
f. Fifteen pound (15#) felt shall be installed between the sub-floor and
underlayment or finish flooring. Use 8 CC common nails.
D. Exterior Wall Framing:
a. Stud size and spacing - Studs shall be standard 2” x 4” lumber with the wide face
perpendicular to wall. All studs shall be spaced not more than sixteen inches
b. Bracing of exterior stud walls - Not less than three (3) studs with blocking for
drywall shall be installed at every corner of exterior wall.
Stud walls shall be braced by one of the following methods:
(1). Nominal one inch (1") by four inches (4") continuous diagonal wood
strips or metal "T" brace set into the face of the studs and top and
bottom plates at each corner of building covering a minimum of 3 studs.
(2). Wood boards of five-eight (5/8") (net) minimum thickness should be
(3). Plywood or waferboard sheathing panels not less than forty-eight inches
(48") wide and ninety-six inches (96") long applied either vertically or
horizontally, and fastened with 6 D common nails, annular or spiral
thread, 6" O.C. edges and 10" O.C. intermediate.
(4). Sheathing, where required for exterior walls, shall be applied solidly over
the wall surface and shall be composed of one or more of the following
(5). Wood boards and sheathing panel’s five-eights inch (5/8") minimum
(6). Plywood not less than half inch (1/2") thick for sixteen inches (16") or not
less than five-eighties inch (5/8") for twenty-four inch (24") stud spacing.
Plywood of exterior type shall be used, laid horizontally and off set with
previous course. Exterior stucco finish, brick veneer, and exterior wall
coverings which permit passage of water shall have 15# asphalt building
felt or Tyvex building wrap.
(7). Fiberboard sheathing shall not be less than seven-sixteenths inches
(8). Studs shall be capped with double top plates installed to provide
overlapping at corners and at intersections with bearing partitions. End
joints in double top plates shall be offset at least twenty-four inches
E. Openings in Exterior Walls and Interior Walls:
1. Double studs shall be provided on each side of openings exceeding three feet
(3') in width, and triple studs shall be provided on each side of openings
exceeding six feet (6').
2. Headers shall be provided over each opening in exterior and interior walls.
Headers shall be a minimum of two 2" x 6" set on edge when span does not
exceed three (3) feet, two 2" x 6" set on edge when span does not exceed three
(3) feet, two (2) 2" x 10" set on edge when span does not exceed six (6) feet.
Each end of header shall be supported on a stud or framing anchor.
1. Underlayment shall be 3/8 inch structural grade interior plywood or 1/4 inch
Weyerhaeuser "Structure Wood" underlayment or equal. One quarter (1/4) inch
plywood may be used when applying over old floor or tile for leveling and for
smooth surface. Exterior rated underlayment grade T&S plywood shall be used
in kitchens, baths, and laundry areas.
2. Nail underlayment with cement coated, resin coated, or ring grooved nails placed
on 4" center on all edges and over the face of each piece.
3. All joints shall be staggered with respect to panel joints in sub floor. Provide
approximately 1/32" spacing at joints where panels butt. Nail with 3 CC common
shank nails 6" o.c. at all edges and 8" o.c. over bearings. All floor joints (sub
floor and underlayment) shall meet and be secured over joists.
G. Finish Floors: - Finish flooring may be wood, or resilient material as called for in the
a. Strip-wood flooring:
Material Minimum Thickness Maximum Width
Hardwood Sub floor - 5/16" 2-1/4"
Direct to joist 2-1/4"
25/32" or 3/4
Softwood 25/32" or 3/4" 3-1/4"
Note: These dimensions only apply when entire floor is being replaced with
1. Nailing - Nails shall be as recommended by flooring manufacturer. Blind nail
tongue and grooved flooring, driving nail at an approximate angle of 50 degrees.
Space nails every 10" to 12" on center. Face nails 4/16 square edge flooring two
nails ever 8", countersinking nail and filling nail holes.
2. When specified in work write-up, all broken, damaged or deteriorated flooring
shall be replaced with lumber that matches as closely as possible the species,
size and color of the adjacent flooring. The joints shall be staggered. Floors
shall be sanded to a smooth surface, with the grain, and filled with filler
recommended by the manufacturer.
H. Refinishing Hardwood Floors:
a. Remove all shoe mold, to be reinstalled when job is complete.
b. Reset all protruding nails. Nail down loose boards.
c. Fill all gouges and wide cracks to match flooring.
d. Sand to remove old varnish and stain. Apply one coat sanding sealer and two
coats satin polyurethane floor varnish, sanding between coats.
I. Resilient Flooring:
1. See Work Write-up for the type, color, and pattern of resilient flooring. Resilient
flooring shall be laid in exact accordance with the recommendation of the
manufacturers. Color or colors to suit owner. Sheet vinyl flooring shall not be
less than 1/16" thick and shall be stabilized with an integral backing. When
applicable use 12' goods to prevent seams.
2. Caulk along edges of flooring in bath with bathtub caulk. In all other rooms,
install shoe mold and paint with two coats semi-gloss enamel to match existing
J. Exterior T/G Porch Flooring:
When installing porch floor that is to be painted, paint all edges with porch enamel
K. Cabinet Work:
Cabinet work shall be Custom grade constructed in accordance with details and
procedures set forth under AWI 400 or as minimum construction and performance
standards for kitchen and vanity cabinets for manufactured, factory finished bath and
kitchen cabinets shall be ANSI A 161.1 and/or NKCA. This work includes kitchen
cabinets and associated shelving.
The minimum construction and performance standards for shop made kitchen or bath
cabinets shall be as follows:
1. Front frames shall be 3/4" finish grade plywood. Ribs, and stiles shall be glued
and fastened. The ends shall be 3/4" hardwood plywood. Doors are to be finish
grade plywood 3/4" to 7/8" thick. Backs shall be 1/8" hardboard or 1/4"
plywood, drawer bottoms 1/4" thick, solid wood, C or better finish grade plywood
(1/2" thick) shall be used for drawer or tray sides, backs and trim pieces.
2. All units, except sink, oven, refrigerator, and drawer cabinets shall be enclosed
with side, backs and bottoms. The counter top must provide enclosure for the
top on base cabinets, but wall cabinets shall be provided with an individual top, if
installed below finished ceiling.
3. Swinging doors shall have a catch or other device to hold doors closed. Where
installed, adjacent cabinets and doors shall be in proper alignment with each
other. Doors are to be of balanced construction, operate freely, and be warp-
4. Miscellaneous hardware such as drawer slides, shelf standards must support the
design loads and operation functions.
5. All base cabinets and wall cabinets shall have shelves of 3/4" shelving board. (#2
Spruce or Ponderosa Pine).
6. All cabinets shall be installed level, plumb, and true. Base and wall cabinets shall
be attached with screws (not nails) to studs or other framing members. To
assure a plumb, level and true alignment, installation, high spots shall be
removed behind cabinets to assure flush fit.
7. Cabinets Finish - All the cabinet surfaces, inside and outside, shall be smooth and
free of defects. The exterior of all cabinets, including the inside of the doors and
the underside of top cabinets shall be stained, sealed, and varnished to a smooth
finish, free of holidays and spots, or painted with a minimum one coat of oil base
enamel undercoated and one coat of semi-gloss enamel paint. The owner shall
have the choice between stain and varnish finish and painting. The color shall
be of the owner’s choice.
8. The interior of all cabinets shall have as a minimum of two coats of sealer,
sanded between coats.
9. Plastic Laminate: Plastic laminate shall be .042" thick. Edge laminate shall be
applied prior to top laminate. Color and finish shall be selected by Owner.
10. Finish: Paint finishes as directed.
L. Wood Railings:
1. Wood Hand Railing - When work write-up calls for wood railing, it shall have 2" x
4" top railing, 2" x 4" bottom rail, 2" x 2" wood pickets or lattice as specified in
work write-up. Picket spacing not to exceed 0'-6" o.c. Railing not to exceed a
span of more than 8' -0" without support in securely anchored to floor. No railing
shall span a distance of more than 10' -0" without a 4" x 4" column. All railing,
unless work-write-up specifies treated lumber, shall have 2 coats of solid color oil
stain. Railing shall be securely anchored to all corners and flats.
2. Wood Step Railing - When work write-up calls for installation of single step
railing, it shall comply with "A" above. The newel post shall be 4" x 4" .6 lbs/cu.
ft. treated, anchored in concrete a minimum of 12" in the ground in front of the
3. Wood Columns - When work write-up calls for wood columns, they shall be
minimum 4" x 4" each side. They shall be supported at base by metal bases. All
columns, if not specified as treated, shall have 1 coat of wood primer and 1 coat
of good quality exterior enamel.
Thermal and Moisture Protection:
A. Crawl Space: Moisture Control (When in Work Write-up)
1. Place an approved vapor barrier, 8" lap, 6 mil, over the entire ground
surface of the crawl space. Leave 8" breather space around perimeter.
2. If physically not possible in certain areas, place a 1/2" thick layer of dry
concrete mix over the ground surface and then lightly spray sufficient
water to start chemical action.
B. Building Insulation:
a. Use all means necessary to protect the material of this Section before,
during and after installation and to protect the work of all other trades.
b. Deliver materials to the job site, and store in a safe, dry place with all
labels intact and legible at time of installation.
c. Install insulation baffles at eaves, compressing insulation to permit one
inch of air ventilation between insulation and roof sheathing.
a. Fiberglass "friction batt" insulation shall be of the thickness and R-value
indicated on the work write-up. Acceptable manufactures shall be:
Owens Corning Fiberglass Corporation, Johns Manville, or GAF.
b. Vapor barrier shall be 4 mil. polyethylene.
c. Fiberglass batt-type insulation with Kraft Paper vapor barrier shall be of
the thickness and R-value indicated on the work write up. Acceptable
manufacturers shall be Owens Corning Fiberglass Corporation, Johns
Mannville, or GAF.
d. All other materials such as fasteners and retainers not specifically
described but required for a complete and proper installation of the work
of this Section shall be as selected by the Contractor for the particular
installation according to the specifications of the insulation manufacturer.
a. The insulation system for exterior walls may be either the fiberglass
friction batt type with a polyethylene vapor barrier applied to the interior
face of the studs or fiberglass batts with an attached vapor barrier.
Either type shall be installed in accordance with the latest edition of the
insulation manufacturer's specifications.
b. The insulation in floors and ceilings shall be fiberglass batts with attached
vapor barrier and installed in accordance with the latest edition of the
insulation manufacturer's specifications.
c. Insulation shall not be installed until the building has been made
substantially watertight. Insulation shall fill all voids to the thickness
specified with a tight fit or mechanically fastened.
d. Remove from job site all wet or damaged insulation.
e. When work orders indicate, insulate as follows between studs of exterior
walls, and between ceiling joists and trusses to insure insulation of all
heated spaces. Specs are based on Owens/Corning Fiberglass. Install in
accordance with manufacturer's recommendations.
Ext. Walls - R-13 Kraft-faced batts for 3-1/2" stud walls
Ceilings - R-30 Kraft-faced batts or blown insulation
Floors - R-19
The Contractor shall certify to the owner as to the R rating of
each installation as stated above.
f. The contractor shall plug or securely cover all openings made for the
insertion of insulation in the walls, ceilings, or other portions of the
building or shall securely cover all holes with duct tape, or equal, prior to
the application the finish covering to the surface.
g. All ductwork in unheated places shall be taped at all joints with duct tape.
All supply and return ducts shall be insulated for the full length of all
exposed ducts, plenum, etc.
h. All hot water pipes shall be insulated for their full exposed length to a
rating of R-2.
i. Hot water heaters located in unheated areas shall be insulated with a
jacket to an R-5 rating.
C. Sealants and Caulking:
a. Throughout the work, caulk and seal all joints as required to provide a
positive barrier against passage of air and passage of moisture.
b. Proper caulking and proper installation of sealants require that installers
be thoroughly trained and experienced in the necessary skills and
thoroughly familiar with the specified requirements.
c. For caulking and installation of sealants throughout the work, use only
personnel who have been specifically trained in such procedures and who
are completely familiar with the joint detailsand conditions and the
installation requirements called for in this Section.
d. Deliver all materials of this Section to the job site in the original
unopened containers with all labels intact and legible at time of use.
Store only under conditions recommended by the manufacturers. Do not
retain on the job site any material which has exceeded the shelf life
recommended by its manufacturer.
e. Use all means necessary to protect the materials of the Section before,
during and after installation.
a. Caulking materials, shall be a single or double component, primer-less,
non-sagging type in neutral color or other color coordination where
exposed to view, and shall be one of the following or an equal approved
1. Acrylic Sealant: All acrylic sealant shall be a one-part Acrylic
Polymeric Resin based compound with a minimum 90% solids content
conforming to the requirements of ASTM. The color shall be
appropriate to the installation.
2. Elastomeric/Butyl Caulking Compound: All compound used for all
interior caulking shall be a one-part, nonoxidizing, non-migrating,
100% synthetic butyl rubber base compound conforming to ASTM.
The color shall be appropriate to the installation.
3. Silicone Sealant: All silicone sealants shall be one part such as
General Electric's Silicone Sealant 1300 in., or Dow Corning 700
b. Primer, when required, shall be as recommended by the sealant
c. Store all materials and equipment under conditions recommended by the
a. Examine the areas and conditions under which work of this Section will
be applied. Correct conditions detrimental to the timely and proper
completion of the work. Do not proceed until unsatisfactory conditions
have been corrected.
b. Surfaces shall be clean, dry and sound and above 32 degrees F. When
required, apply two coats of primer to extremely porous surfaces. Apply
paint to caulking only. Apply no paint to sealants.
c. Prior to start of installation in each joint, verify the joint type according to
the details and manufacturer's recommendations, and verify that the
required proportion of width of joint to depth of joint has been secured.
d. Apply sealant under pressure with hand or power-actuated gun or other
appropriate means. Guns shall have nozzle of size and shall provide
sufficient pressure to completely fill joints as designed.
e. Thoroughly and completely mask all joints where the appearance of
sealant on adjacent surfaces would be objectionable.
f. Install the sealant in strict accordance with the manufacturer's
recommendations pertaining to adjoining materials to be sealed or
caulked, joint depth required, and tooling required, thoroughly filling all
joints to the recommended depth.
g. Whether written in work write up or not, the Contractor shall seal with
sealant the following places on the exterior of the building, removing
failed, dry materials, or improperly installed material first.
a. Around all windows,
b. Around all door frames,
c. Joints in any panel material,
d. Joints where masonry butts other materials.
h. Cleaning surfaces of materials adjacent to caulked or sealed joints shall
be cleaned free of smears of compound or other spoiling due to caking or
sealing operations as work progresses. On non-porous surfaces, excess
uncured sealant shall be removed with a solvent moistened cloth
immediately On porous surfaces, excess sealant shall be allowed to cure
overnight, then removed by lightly wire brushing or sanding. All adjacent
surfaces shall be cleaned and free from stains. Use solvent or cleaning
agent as recommended by the sealant manufacturer.
Division VIII- Exterior Finishes
A. Vinyl Siding:
1. Horizontal and vertical vinyl siding shall be solid vinyl siding by Alcan, or
approved equal. All vinyl siding installation as a minimum shall conform to the
Standard Building Code 1706.8(m) and 1700.3(K). PS-55.
2. All installations shall be installed as a minimum to Certain-Teed Publication No.
20-50-40A or an approved equal installation instruction document.
3. All horizontal vinyl siding shall be 4 or 5 ended siding unless stated otherwise in
the work write-up. All siding as a minimum shall be .044" + .004" thick.
4. All vinyl siding shall be installed with a starter strip at the base; undersill trim
under windows, door, and soffits that are not to be covered. The contractor
shall be responsible for furring low places on the exterior wall so as to have a
uniform surface to apply siding. No cardboard shall be used for this purpose. All
windows and doors not having a drip cap shall have a vinyl drip cap installed.
5. When soffits and porch ceilings and like items are covered with vinyl it shall be
run the short distance. When a soffit turns a corner an H dividing bar shall be
used and set on a 45 degree angle. Where the window sill protrudes beyond the
vertical facing with the permission of the owner, the sill may be cut even with
the facing. Soffit vinyl shall be perforated.
6. A "J" channel is required at the end of the vinyl siding of all off sets, including
porches, steps, etc. All panels are to lap in the same direction.
7. Any exception to these specifications or material used as equal shall be waived
by the inspector in writing prior to any installation and documented in the file.
B. Pre-finished Aluminum:
When the work write-up calls for covering window and door casing with pre-finished
aluminum the following specifications shall apply in all cases:
1. Pre-finished aluminum shall be a minimum of .019 gauge and all aluminum shall
be nailed with aluminum or stainless-steel nails.
2 The window sill shall be covered first with the metal extending through the
window to the stool. The sill shall be completely covered including the outer end
and the sill covering shall fold up a minimum of 1/2" on the vertical casing. The
vertical casing shall be covered after the sill. All the exposed portion of the
casing shall be covered. The vertical casing covering shall extend a minimum of
1/2" over the top header casing. Where storm windows are installed or to be
installed the blind stop shall be covered on the outside.
3. When the work write-up calls for pre-finished aluminum to be installed on the
cornice of the house the following specification shall apply: Fascia aluminum
shall be a minimum of .019 gauge pre-finished aluminum. All joints and corners
shall be lapped a minimum of 1" and properly caulked. All fascia's shall be
smooth and free of wrinkles.
4. The instruction herein concerning vinyl soffits shall apply to aluminum soffits.
When the work write-up calls for pre-finished aluminum on all the cornice of the
house it shall be understood that porches and exposed porch header sill shall be
1. Mortar for all applications shall consist of one part of Portland Cement to not less
than 3 nor more than 5 parts of damp loose aggregate by volume. Hydrate lime
may be used but shall not exceed 10% by weight nor more than 25% by volume
of the cement used.
2. The temperature of the surrounding air shall not be less than 40 degrees F.
during application and for at least 48 hours thereafter.
3. Surfaces to be stuccoed shall be covered with 3.4 per sq. yard metal latch lapped
at end and sides a minimum of 1" and nailed 6" O.C. vertically and 16" O.C.
horizontally, except on masonry walls. Wood surfaces are to be covered with 15
lb. felt prior to application of the metal lath.
4. Apply in 2 or 3 coats; the final coat shall not be applied sooner than 7 days after
the preceding coats. Before applying the final coat, the surface shall be
dampened evenly to obtain uniform suction.
• Apply 2 coats on masonry to a minimum thickness 7/8". Thoroughly wet
masonry walls before applications of stucco.
• Apply 3 coats over wood surfaces to a minimum thickness of 7/8".
D. Pre-cut Panel Siding:
1. 4x8 panels of plywood are to be 5/8" thick. Hardboard is to be 7/16".
2. Panels must overlap the foundation 2". Allow 3/16" expansion gap where panels
meet soffits, rake boards, door and window casings.
3. Seal all edges with caulking. Fasten panels with galvanized nails long enough to
go at least 1" into the studs.
4. Where one panel joins above another, install "Z" flashing or double bend strips of
aluminum flashing, upper leg 3", middle to coordinate thickness of panel, lower
leg 1 1/2". Extend lower edge over bottom panel, and upper edge under top
panel, lap flashing 1 1/2" and caulk.
5. Install corner boards at all outside corners; install caulking in a continuous bead.
6. All inside corners are to have cove moldings fastened at both edges with
galvanized siding nails.
7. Install 1x4 frieze board at top edge of siding where it meets soffit. Bevel joints
where boards meet.
E. Exterior Wood Siding Repair:
Repair all cracked, decayed or deteriorated siding. Material shall be of a species suitable
for its intended use, kiln dried, free from tool marks and other objectionable defects and
shall match existing siding as closely as possible butt joints and adjacent runs shall be
staggered. New work shall be primed upon installation.
F. Storm Windows:
When work write-up calls for storm windows, they shall be double track with full or half
screens. Storm windows 54" high or larger shall have a center tee rail across the frame.
G. Wood Screen Doors:
When wood screen doors are specified, they shall be made of standard stock dimensions
material with aluminum wire, hardware cloth, or aluminum grills. They shall be installed
with new hinges, door pull, and spring.
H. Storm Doors:
1. Storm doors shall be complete with frame, latch, and safety check. Door shall be
equipped with safety glass or Plexiglas and under no condition shall be installed
with regular glass.
2. Storm doors shall be natural aluminum craft #226, or approved equal; 1-1/4"
thick 2-1/2" stiles with a pneumatic closer and storm door bolt latch. The quality
of odd-sized doors shall be approved by the Rehabilitation Specialist in writing if
not specified in the work write-up.
I. Doors: - When required by the Work Write-up shall be:
1. Exterior Doors - All exterior doors shall be a minimum of 1-3/4" solid core wood
or metal with 18 gauge cold rolled face sheets.
2. Interior Doors - All interior doors shall be a minimum of 1-3/8" in thickness
unless otherwise specified.
3. All doors to be of stock sizes and designed unless Work Write-up calls for them
to match existing doors or openings as nearly as possible.
4. All exterior door units - Exterior door units to include door, jambs, headers, trim
two (2) sides, sills (if needed), metal threshold, stops, hinges, and entrance lock.
Completely weather-stripped with spring type, aluminum and vinyl or foam
5. Interior Door Units - Interior door units to include jambs, headers, trim two (2)
sides of door, hinges and lock set as per Work Write-up.
6. Any required repairs to the adjoining surfaces which are necessary for the proper
installation of door units shall be the responsibility of the contractor.
J. Windows, Doors and Trim:
1. All old paint shall be removed from the glass panes in all windows and doors
prior to painting. All loose putty shall be removed and all missing putty shall be
replaced. All new paint shall be removed from all glass flush with the edge of
the putty, ribs, or sashes.
2. All exterior and interior doors shall have their edges, tops, and bottoms treated
in the same manner as the face of the door. The front edge of all doors shall be
painted matching the side of the door in the direction of its swing. The rear
edge of the door shall be painted matching the side of the door in the opposite
side of the swing. The outside surface of all exterior doors shall be treated as
3. Sand the surface, removing all paint or surface defects. Apply one coat of
enamel under-coating. Apply two coats of enamel exterior paint.
4. The edge of all casings, interior and exterior, and all other trim shall be painted
matching the face of the trim.
5. All new trim shall have the nails set and puttied, and cracks in joints shall be
6. All stickers on glass shall be removed to include all traces of adhesive.
7. All new items such as windows, etc., installed in areas not requiring painting
shall have all their exposed surfaces primed and painted matching paint in those
K. Vinyl Replacement Windows:
Wall thickness .080
Depth 4" overall 3-1/4" to blindstop
Multi-chambered contoured stepframe design
Tongue and groove design on Double-Hung for tighter fit
Wall thickness .75
Mechanically fastened with stainless steel screws
Handle and interlock are part of sash extrusion
Concealed spiral balance system
Co-extruded dual durometer glazing system
Specially designed water drainage system
Aluminum reinforced at interlock, meeting rail, and bottom lift rail
All sash rails reinforced on widths exceeding 46"
3. GLAZING: Double strength glass standard 5/8" overall glass thickness.
4. WEATHER-STRIPPING: Wool pile fin and rubber (EDPM) weather-stripping to
virtually eliminate air infiltration.
5. SECURITY LATCHES: Double latches standard heavy duty type on all windows.
6. SCREENS: Half screen standard aluminum extrusions with integrated lift rail U
Channel design for positive tracking, overlapping front legs on header and seal
for firm seal
Division IX - Interior Finishes
a. Provide all gypsum drywall and accessories, complete, in place as specified
herein, and needed for a complete and proper installation. Work shall be done in
accordance with the standards set forth in U.S. Gypsum Drywall Instruction
Handbook. Furnish material and installation for a complete job.
b. Use adequate numbers of skilled workmen who are thoroughly trained and
experienced in the necessary crafts and who are completely familiar with the
specified requirements and the methods needed for proper performance of the
work of this Section.
c. The manufacturer's recommended installation procedures, will become the basis
for inspecting and accepting or rejecting actual installation procedures used on
d. Use all means necessary to protect materials of this Section before, during and
after installation and to protect installed work and materials of all other trades.
e. In the event of damage, immediately make all repairs and replacements
necessary at no additional cost to the Owner.
f. Deliver all materials to the job site in their original unopened containers with all
labels intact and legible at time of use. Store in strict accordance with the
a. All gypsum wallboard shall be the product of one manufacture, 1/2" thickness
and with tapered edges for finished surfaces and butt edges for concealed
surfaces. Supply wallboard in such lengths as will result in a minimum of joints.
b. Regular or moisture resistant wallboard shall be installed as indicated on the
work write up. All moisture resistant board is to be used in bathrooms.
c. Metal trim accessories shall include corner beads and casing beads
recommended by the manufacturer as being compatible with the gypsum panel
system used. Supply beads for gypsum wallboard in place, shall be self-tapping
drywall screws of size compatible for wood stud installation
d. Jointing system shall include reinforcing tape and compound designed as a
system to be used together and shall be only as recommended by the
manufacturer of the gypsum wallboard used. Jointing compound may be used
for finishing if so recommended by the manufacturer.
e. All other materials, not specifically described but required for a complete and
operable installation, shall be new, first quality of their respective kinds.
a. Prior to installation of the work of this Section, carefully inspect the installed
work of all other trades and verify that all such work is complete to the point
where this installation may properly commence. Verify that Gypsum drywall may
be installed in strict accordance with all pertinent codes and regulations and the
b. Install the gypsum drywall and metal trim in strict accordance with the
manufacturer's recommended method of installation, in areas indicated on the
c. Install the gypsum wallboard with the separate boards in moderate contact but
not forced into place. At internal and external corners, conceal the cut edges of
the board by the overlapping covered edges of the abutting boards. Stagger the
boards so that corners of any four boards will not meet at a common point
except in vertical corners. Install all panels plumb, level, and with all joints on
d. Install the gypsum wallboard to ceilings with the long dimension of the wallboard
at right angles to the supporting members, except that wallboard may be
installed with the long dimension parallel to supporting members that are spaced
16 in. on center when attachment members are provided at end joints.
e. Install the gypsum wallboard to studs at right angles to the furring or framing
members. Make end joints, where required, over furring or framing members.
f. Nail or screw spacing shall be 12 in. centers at ceilings and 16 in. centers at
walls, except where framing members are spaced 24 in. apart where spacing
shall be 12 in. on centers. Nailing should proceed from central portion of the
wallboard towards the ends and the screws or nails shall be driven with the
heads slightly below the surface of the gypsum wallboard, in a dimple formed by
the crowned face of the tool striking the last blow.
g. Install all corner beads and casing beads fitting neatly and secured with same
fasteners approximately 6 in. on center, driving through the wallboard into the
framing or furring members.
h. In areas where joint treatment and finishing compound will be performed,
maintain a temperature of not less than 55 degrees F. for 24 hours prior to
commencing treatment, for the entire period of treatment, and until joints and
finishing compounds have dried.
i. Apply embedding compound to gypsum wallboard joints and fastener heads in
thin uniform layer. Spread the compound not less than 3 in. wide at joints,
center the reinforcing tape in the joint, and embed the tape in the compound.
j. Apply finishing compound after embedding compound is thoroughly dry and has
been completely sanded. Apply the compound to all joints and fasteners heads.
Feather the finishing compound to not less than 12 in. wide. When thoroughly
dry, sandpaper to obtain uniformly smooth surfaces, taking all necessary care to
not scoff the paper surfaces of the wallboard.
k. Internal corners are to be treated the same as specified for joints, except that
the reinforcing tape shall be folded lengthwise through the middle and fitted
neatly into the corners.
l. External corners and conditions with casing beads are to be treated the same as
specified for joints, except feathering of joint compound is to be out to 8 in. on
each side of the corners.
m. Do not allow the accumulation of scraps and debris arising from the work of this
section, but maintain the premises in a neat and orderly condition at all times; in
the event of spilling or splashing compound onto other surfaces, immediately
remove the spilled or splashed material and all tract of the residue.
B. Enameled Hardboard:
1. Pre-finished, enameled hardboard shall have a minimum thickness of 1/4".
2. Provide with edge and joint moldings expended from aluminum alloy. Plastic
trim may be used with prior approval of the inspector.
C. Interior Wall Paneling:
Interior wall paneling shall be plywood backed, a minimum thickness of 5/32" or 1/4"
and all interior or exterior corners shall have a molding installed matching the paneling
in color and design. Any exception to these standards shall be set forth in the work
write-up or received in writing by the contractor from the inspector. Chip board,
aspenite, etc. is not acceptable paneling.
D. Suspended Ceiling:
The quality, design, fabrication, and erection of metal suspension systems for acoustical
tile and lay-in panel ceiling in building or structures shall conform to good engineering
practice, the provisions of this section, and other applicable requirements of these
1. Suspension System: (Exposed metal grid supporting ceiling panels)
a. Metal grid shall be aluminum or bonderized - galvanized steel, with baked
white enamel on exposed fascia. Arrangement to accommodate ceiling
b. Provide hanger wires of not less than No. 12 ga. galvanized steel wire spaced
so that suspension system, including wall mould and with ceiling panels in
place, shall be level to within 1/8" in any 12 feet length.
2. Ceiling Panels:
Acoustical Panels: Non-combustible, felted mineral wood panels 5/8" thick, 23-
3/4" x 23-3/4" for nominal 2'0" x 2'0" exposed grid system.
a. Gypsum Plaster Materials - shall be standard commercial brands.
b. Mix - Mix and application of Gypsum Plasters shall be in accordance with ASA
No. 1 - A42.1, American Standards Specifications for Gypsum plastering.
c. Application - Apply plaster in 3 coats or in 2 coats double-up work -minimum
d. Gypsum lath - shall be used as a base for Portland Cement Plaster.
a. Nail with 12 or 13 gauge lathing nails having approximate 3/8" heads with
nails spaced not more than 4" on center with a min. of 4 nails in each lath.
Use 6 nails for 24" wide lath. Length of nail shall be that which will provide
at least 1" penetration in horizontal supports and 3/4" penetration into
b. Gypsum lath - shall be applied with long dimension across supports and with
end joints staggered.
c. Wood lath - existing wood lath shall be securely nailed and wetted down
prior to applying plaster.
d. Metal lath - shall be applied according to manufacturer's directions whether
used for patching or new work.
When the work write-up calls for repairing cracks in plaster, walls or ceilings the
following procedure shall be followed:
Remove all loose and scaly plaster from the surface. Fill the cracks with
sheetrock mud or spackling paste. Sand smoothly and apply strips of pre-plaster
fiberglass mesh over the cracks and allow to dry. Apply appropriate coats of
sheetrock mud over the mesh and sand smoothly to receive paint.
F. Resilient Flooring:
1. General: Work consists of furnishing all labor, materials, tools and equipment to
install all resilient flooring in an approved manner as indicated on the drawings
and specified herein.
2. Samples: Start no work until samples of all materials have approved.
3. Materials: Deliver materials to job in original, unopened containers with brand
name marked thereon. Handle and store materials in accordance with the
1. Tile shall be first quality, 1/8" thick, 12" x 12" vinyl composition tile. Tile shall be
uniform in thickness and accurately cut with square edges.
2. Adhesive: Adhesive shall be of type specified by the manufacturer for both the
material and the type of area to be covered.
3. Wax: High grade water emulsion wax approved by the tile manufacturer.
4. Cleaner: A neutral cleaning material recommended by the tile manufacturer.
5. Installation: Start no work until that of other trades, including painting, has been
substantially completed. Installation shall be in accordance with manufacturer's
6. Cleaning and Waxing: Clean with neutral cleaner, rinse, dry and apply one coat
of wax. Flooring shall be protected with building paper. Immediately prior to
final inspection and not less than 48 hours after first waxing, dry damp mop
floors and apply another coat of wax, all in accordance with recommendations of
the manufacturer. Buff with power machine.
a. The Contractor shall be responsible for the delivery of carpet and the safe
transport thereof throughout the building, as well as the installation thereof
without damage to the Owner's property. Carpet materials and installation shall
conform to HUD/FHA Standards for carpet and carpet installation.
b. Prior to installation, carpet and related material storage shall be the responsibility
of the contractor. If necessary, a designated installation time during the day
and/or week shall be coordinated between the Contractor and Owner. The
contractor will use the following guidelines:
1. Materials - All carpet shall be of first quality, free of visual blemishes and
physical defects, uniform in color and pile height and consistent
throughout with the specifications. Only current running line stock
patterns in construction and color will be accepted. No special weight
variations will be allowed. Should a mill discontinue an item which has
been contracted, a substitute, equal or better then, may be used upon
approval from owner. The installer must furnish samples including all the
colors of the brand that is awarded, upon request to the Owner.
2. Preparation of Floors - The contractor shall assure that the floors to
receive carpet are in satisfactory condition. All lumps should be removed
and ridges and faults filled level with acceptable type filler complying with
the manufacturer's instructions. All unusual conformities in the floor are
to be reviewed with the specialist. The contractor shall vacuum the floor
immediately prior to carpet installation, and remove all substances which
would interfere with the installation or be harmful to the work. The
contractor shall accept all responsibility for unacceptable work due to
improper floor conditions.
C. Installation of Carpet:
1. Carpet shall be laid securely in place by using the tackless method (using
Roberts Smoothedge Carpet Gripper or equal and Roberts Seam Adhesive
#41-4015 or equal). The methods must comply with the manufacturer's
instructions and recommendations Actual measurements shall be the
responsibility of the Contractor.
2. Carpet must be installed on a sequential roll basis and vendor will be
responsible for providing and acceptable level of side by side color
matching. This level of acceptability will be determined by the Housing
Services. Large open area installations shall be of the same
manufactured lot or as agreed upon between the purchaser and the
supplier to color match throughout.
D. Seams: - Carpet shall be laid out and seamed in the longest length practical to
eliminate as many seams as possible. Seams at doorways shall be parallel to the
center directly under the door(s). All seams shall be made in accordance with
the manufacturer's recommendations. The number of pieces of carpet shall be
held to the minimum number necessary, utilizing the widest material available
from the manufacturer. All carpet shall be installed with the matching patterns
at the seams.
When requested, the contractor shall submit to the agency or owner a seam
diagram showing the actual location of all seams as they will be.
installation. The direction of carpet shall also be indicated. Installation will not
begin until the request diagram is approved.
E. Jute-Back Carpet: - When required in the work write-up, jute-back carpet shall
be stretched with a power stretcher. It shall be installed with tack strips around
the base. They shall be installed in all openings and doorways carpet grip metal
at the edge. The seams shall be joined with heat melt tape. The minimum pad
shall be 3/8" thick.
F. Cushion Attached Carpet: - All cushion attached carpet shall be installed by the
direct glue-down method. The carpet shall be glued directly to the floor with a
good quality of synthetic glue. All seams shall be fused with carpet seam
adhesive to prevent raveling. All glued-down carpet shall be rolled with a
minimum 80# roller to remove wrinkles. There shall be installed at all doors and
openings gripless threshold metal carpet strips of a good quality.
1. Protection of Property: - All walls, furniture, and doors shall be protected
from damage at all time. The contractor shall be responsible for all door
swings - that the door does not drag the carpet. Any damage to walls,
baseboards, doors, shall be repaired at no additional cost to the owner.
2. Completion: - All waste, excess materials of new carpet, tools, etc. shall be
removed from the area. The carpet shall be vacuumed after the installation.
Furnish all labor, materials, equipment, and supplies required to complete all painting
a. Work included: Paint and finish all interior and exterior exposed surfaces
requiring paint, staining, and varnishing as designated in the work write up.
b. Work not included: Non-ferrous metal surfaces of anodized aluminum,
stainless steel, chromium plate, copper bronze, and similar finished materials
will not require painting. Do not paint any moving parts of operating units,
mechanical or electrical parts such as valve operators, linkages, sensing
devices, and motor shafts, door hardware, weather stripping, unless
c. Qualifications of Painters:
1. Provide at least one person who shall be present at all times during
execution of the work of this section, who shall be thoroughly familiar
with the specified materials and methods needed for their execution, and
who shall direct all work performed under this section.
2. In acceptance or rejection of the work of this section, will make no
allowance for lack of skill on the part of workmen.
d. Products used in the work of this section shall be produced by manufacturers
regularly engaged in manufacture of similar items and with a history of
successful production acceptable to the Owner.
e. Provide finish coats which are compatible with the prime coats used.
f. Deliver all materials to the job site in original, new, and unopened containers
with all labels intact and legible at time of use.
g. Proper storage shall be provided to prevent damage to, and deterioration of
paint materials. Use all means necessary to protect the materials of this
section before, during and after installation and to protect the work and
materials of all other trades.
h. Storage spaces shall be kept neat and clean, and all soiled rags, waste and
trash must be removed from the building every night and every precaution
taken to avoid the danger of fire.
i. In the event of damage, immediately make all repairs replacements
necessary at no additional cost to the Owner.
j. Surface temperatures: Do not apply solvent-thinned paints when the
temperature of surfaces to be painted and the surrounding air temperatures
are below 45 degrees F., unless otherwise permitted by the manufacturer's
k. Weather conditions: Do not apply paint in snow, rain, fog, or mist, or when
relative humidity exceeds 85%, or to damp or wet surfaces; unless otherwise
permitted by the manufacturer's printed instructions.
Paint Materials shall be delivered in unbroken original packages or containers and shall
bear brand and mfg. name. Materials shall not be thinned or changed in any other than
as recommended by mfg.
a. Provide paints of durable and washable quality. Colors to be as selected by the
owner. Paint to be custom tinted by paint supplier.
b. Undercoats and thinners: Provide undercoat paint produced by the same
manufacturer as the finish coat. Use only the thinners recommended by the
paint manufacturer, and use only to recommended limits. Insofar as practicable,
use undercoat, finish coat, and thinner material as parts of a unified system of
c. Painting Schedule: Painting under this section is referred to by types of
installation. Paint required is defined below. See Lead Base Paint Abatement
1. Alkyd Base Enamel - On interior and exterior metal surfaces use:
First coat: Zinc Chromate Primer
Second coat: Alkyd Base Velvet Enamel
2. Alkyd Base Enamel - On interior wood surfaces use:
First coat: Enamel Undercoater
Second coat: Alkyd Base Velvet Enamel
3. Alkyd Base Enamel - when scheduled: On gypsum drywall surfaces use:
4. Acrylic Latex - On interior metal surfaces use:
First coat: Zinc Chromate Primer
Second coat: Acrylic Latex
5. Acrylic Latex - On interior wood surfaces use:
First coat: Wall Primer Undercoat
6. Acrylic Latex - On concrete masonry units use:
First coat: Masonry Block Filler
Second coat: Acrylic Latex
7. Acrylic Latex - On gypsum drywall surfaces use:
First coat: Wall Primer Undercoat
Second coat: Acrylic Latex
8. Natural Finish - On interior wood surfaces use:
First coat: Polyurethane Satin Finish
Second coat: Polyurethane Satin Finish
9. Natural Finish - On exterior wood surfaces use:
First coat: Cabots Bleaching Oil
Second coat: Cabots Bleaching Oil
10. Varnished finish on natural wood finish shall be as follows:
One wash coat (sanding sealer thinned equal parts of thinner).
One coat of stain as desired.
Two coats of satin varnish.
D. 1. All other materials, not specifically described but required for a complete
and proper installation of the work of this section, shall be new, first
quality of their respective kinds.
2. Application of each type of paint or other finish shall be in strict
accordance with mfg. directions. Generally paint may be field applied by
either brush, roller of spray method.
3. Surface Preparation. All surfaces shall be smooth, dry and thoroughly
cleaned before paint is applied. Coat all knots and pitch places in wood
surfaces with shellac, Kilz or equal before first coat of paint is applied.
Fill all holes, cracks splits and imperfections in wood surfaces before first
coat of paint is applied.
a. Inspection: Prior to installation of the work of this section, carefully inspect the
installed work of all other trades and verify that all such work is complete to the
point where this installation may properly commence. Verify that painting may
be completed in strict accordance with the original design, pertinent codes and
regulations, and the manufacturer's recommendations.
b. Surface preparation: Prior to all surface preparation and painting operations,
completely mask, and remove, or otherwise adequately protect all hardware,
accessories, machined surfaces, plates, lighting fixtures, and similar items not
scheduled to receive paint that are in contact with surfaces to be painted.
1. Remove from surfaces all dust, dirt, grease or other foreign particles
which would affect either satisfactory execution or permanency of work.
2. Schedule the cleaning and painting so that dust and other contaminants
from the cleaning process will not fall onto wet newly painted surfaces.
3. Wood surfaces: Clean until they are free from dirt, oil, and all other
foreign substance. Smooth all finished wood surfaces exposed to view,
using proper sandpaper of varying degrees of coarseness and sandpaper
to produce smooth and unmarred wood surfaces.
4. Metal surfaces: Thoroughly clean all surfaces until they are free from
dirt, oil and grease. Verify with the manufacturer of metal and paint to
be used, if pretreatment coating is required.
5. Wood surfaces to be painted shall be cleaned by best means possible to
remove loose and flaky paint and rough spots.
Uneven surfaces shall be sanded smooth, all chipped paint or surface
defects removed prior to painting. Use "Kilz" coating on oil stained
6. Plaster or wallboard surfaces to be painted or papered shall be sound,
smooth, and free from holes, cracks, or irregularities. All old wallpaper
shall be entirely removed unless otherwise specifically noted in the work
c. Grilles, registers, electrical panel covers and generally all items of ferrous metals
will be painted same color as walls or ceiling adjacent thereof.
d. Application and workmanship: All paint and/or varnish and/or stain shall be
applied in strict accordance with the specifications of the paint manufacturer for
the particular type of paint specified. Commencement of work signifies
acceptance of all underlying surfaces. Any surfaces, which the painting
Subcontractor questions as being unsuitable to receive finished coatings, should
be brought to the attention of the inspector. Stir all materials before application
to produce a mixture of uniform density, and as required during the application
of materials. Apply in an even film with surfaces free of runs, drips, ridges,
waves, laps, brush marks, and variations in color. Paint and varnish shall be
applied carefully with good, clean brushes, except that areas made inaccessible
to brushing by ducts and other equipment may be sprayed, and except spraying
will be permitted for other than the first coat of paint on any surface. Spray
equipment shall be airless type. The work shall be so conducted as to avoid
contamination on other surfaces and public and private property in the area.
Any damage thereto shall be made good by the Contractor at his expense.
Sufficient time shall be allowed between coats to permit drying, and each coat
shall be in proper condition to receive the next coat. Each coat shall be
sufficiently heavy to cover completely the preceding coat or surface; there shall
be an easily perceptible difference in shades of successive coats of paint.
e. Finished work shall be uniform of approved color, smooth and free from runs,
sags, defective brushing, and rolling. Make edges of paint adjoining other
materials or colors sharp and clean.
f. Paint application shall be per work write-up and shall be minimum of one coat on
old work and two coats on new work to all surfaces and visible edges. All paint
applications shall be in exact accordance with the manufacturer's directions.
g. No paint shall be applied until all nail holes have been puttied.
h. Paint shall provide full coverage and hiding.
i. Paint the center meeting rail on double hung windows when either interior or
exterior painting is called for.
j. All cracks, seams, joints and holes shall be caulked, puttied, or filled before
applying final coat of paint.
k. All exterior caulking shall be butyl, or equal.
l. All precautions noted in the manufacturer’s literature shall be taken.
m. Reinstallation of removed items: Following completion of painting in each space,
promptly reinstall all items removed for painting, using only workmen skilled in
the particular trade.
n. The finish coat in kitchens and bathrooms shall provide a durable and washable
surface and shall be a semi-gloss finish.
o. Sealed finish on natural wood finish shall be two coats of penetrating wood seal.
a. During progress of the work, do not allow the accumulation of empty containers
or other excess items except in areas specifically set aside for that purpose.
b. In the event of accidental spilling, immediately remove all spilled material and
the waste or other equipment used to clean up the spill, and wash the surfaces
to their original undamaged condition, all at no additional cost to the Owner.
c. Upon completion of this portion of the work, visually inspect all surfaces and
remove all paint and traces of paint from surfaces not scheduled to be painted.
The General Conditions to the work write up and the Performance and Material
Specifications shall form a part of the specifications for this work insofar as they apply to
All heating equipment shall have an 80% minimum AFUE rating and shall be GAMA
1. The scope of work to be provided under these specifications includes the
furnishing, delivering, unloading, handling, erection, adjusting, and testing of all
materials, equipment and apparatus which are required for the completion and
correct operation in all respects of the heating system as indicated on the work
2. The Contractor shall be responsible for coordination with all disciplines at the job
site to insure proper installation of the system with no interference and with
proper clearance. The progress of the work shall conform with and not delay the
work of other trades. The entire installation shall be completed as soon as the
condition of the building will permit.
3. All equipment shall be installed in strict accordance with manufacturer's
recommendations and instructions, unless noted otherwise. These instructions
shall be considered as a part of these specifications.
4. Full opportunity shall be given to the SC State Housing Finance and Development
Authority Inspector or Local Building Inspector to make any inspections as
desired, of all phases of construction and equipment. Any work which is being
improperly installed, may be stopped as specified in the General Conditions.
5. All mechanical equipment and materials delivered and accepted for subject job
shall become the responsibility of the contractor. He shall be liable in the event
of theft, loss, destruction, etc. All materials shall be properly protected from
weather, moisture, or damage in any way.
6. Pipe and duct routing shall conform as close as possible to locations as indicated
on the contract drawings. Exceptions may be variations due to specifications.
Additional offsets, fittings, to meet field conditions shall be furnished and
installed as necessary.
7. All furnaces and heaters of any type and kind shall be equipped with a positive
cut off at the source of fuel and near the controls of the equipment. All oil-fired
heating equipment shall be provided with an in-line fuel filter hear the
connection to the tank.
8. All heating appurtenances of the oil or gas-fired type shall be connected to an
approved flue through U.L. approved pipe or a minimum 26 gauge galvanized
steel pipe. Systems to have electric igniter.
9. All under the floor furnaces shall be located where the highest or adequate
clearance is available and mounted on solid masonry piers laid up with mortar,
leveled, plumb, and in true alignment with the building. The warm air shall be
piped to the exterior walls with adequate ducts and baseboard registers.
10. The register boots shall be nailed to the floor. The cold air return ducts shall be
standard gauge and sized to meet the demands of heat supply to keep the room
at 68 degrees F, three feet (3') from the floor in the coldest weather. All supply
and return systems shall be securely fastened in place with sheet metal screws
and all joints shall be taped with heat duct tape recommended by the
11. All heating systems, burners, and air-conditioning systems shall be of the high
efficiency design and shall be carefully sized to be no greater than 15%
oversized for critical design heating or cooling except to satisfy the
manufacturer's next closest normal size.
12. When the work write up does not call for insulation, the contractor shall be
responsible for insulating all supply and return duct systems in unheated areas.
13. All bidders shall visit the job site and familiarize themselves with existing job
conditions, no extra cost will be allowed because of additional work necessitated
or changes in plans required by job conditions, unless same is brought to the
attention of the Owner/Inspector prior to receipt of bids.
14. All materials and equipment shall be new and shall conform to the grade, quality
and standards specified.
B. Acceptance and Completion of Job:
1. Upon completion of the job, the contractor shall furnish to the owner one
complete set of all equipment instructions, including: guarantees, operation,
maintenance, and installation data.
2. All equipment and materials shall be thoroughly cleaned and spot painted as
The heating contractor shall guarantee his installation for one (1) full year from final
acceptance by the owner. This guarantee shall include all materials and labor as
required to correct any deficiencies or maintain any equipment. The cost of said
guarantee shall be a part of the original contract bid and shall not bear any expense to
Owner. Any adjustments or corrections made within the year of guarantee shall be
equal to the quality of materials and workmanship originally called for and shall be
subject to inspection and acceptance by the Owner. Sub-contractor shall provide a
written inspection report on the existing system for code compliance and adequacy of
All work shall be installed in accordance with the Standard Mechanical Code, Standard
Gas Code, and other applicable local codes.
The Contractor shall obtain and pay for all permits required, give all legal notices, and
pay all fees for utility connections, inspection or otherwise required for the work.
F. Cutting and Patching:
The Mechanical Contractor shall do all necessary cutting of walls, floors, partitions, roof,
etc., to properly install his work. The repair of all damage caused by cutting shall be
done by the General Contractor. Care shall be exercised in cutting to avoid unnecessary
damage where openings are required.
Any exposed metal installed by this contractor which is not insulated, galvanized or
previously painted shall be properly prepared and cleaned and given a zinc rich prime
coat and a final coat of black protective enamel.
Condensate Drains: Condensate lines shall be schedule 40 PVC pipe with solvent weld
joints, minimum 1" diameter.
I. Gas Piping:
1. Natural gas pipe shall be schedule 40 black steel pipe with threaded and screwed
joints and wrought fittings. Pipe shall be suspended with clevis type adjustable
hangers and threaded rods.
2. All gas pipes shall be installed and tested in accordance with the Standard Gas
Code, latest edition.
1. Sheet Metal Ductwork (round duct, exhaust duct and return air risers): All metal
ductwork shall be galvanized sheet metal of sizes as indicated on the drawings.
Fabricate and install all duct in accordance with "SMACNA Standards for Low
Pressure Ductwork: (unless noted otherwise), including type joints, gauge
thickness, hanger supports and spacing, etc.
2. If fiberglass ductwork: All rectangular supply and return shall be constructed
from rigid fiberglass ductboard #475 RFK. Duct shall be constructed and
installed per latest edition of SMACNA Fibrous Glass Duct Construction
Standards. Note: All joints shall be stapled and finished with two (2) coats of
Epolux Cad-A-Seal #725 mastic with an intermediate layer of 3" wide glass fabric
mesh (Owens-Corning, Fiberglass Type II Tape).
3. Branch ductwork may be flexi duct sized as required.
4. All branch duct connections to a trunk duct shall be made with prefabricated
5. All elbows (supply, return, exhaust and outside air) shall be constructed with
either radius turns or double thickness turning vanes.
6. Exposed Pipes and Ducts:
Exposed pipes or ducts within the house shall be framed and covered with
material matching existing surface. When closets and such locations are utilized
for cold air returns and like uses, they shall be located as near to the end of the
closet and as flat against the wall, as possible, and shall be encased in materials
matching the surrounding surfaces.
7. Furnace in Attic: When a furnace is located in an attic space, the cold air return
shall be piped close to the floor on an interior wall near the center of the house.
K. Insulation of Ductwork:
All round supply, return, and outdoor air duct shall be insulated with 2" thick 3/4 PCF
flexible duct wrap with vinyl or foil Kraft facing. Seal all joints with staples and 2" wide
pressure sensitive tape. Gas Fired Furnace
L. Air Diffusers and Grilles:
Grilles and registers shall have baked on off-white enamel finish.
Furnace: A wall mounted thermostat shall have fan "on-auto" and heat-off switches. In
the heating mode the furnace shall cycle the furnace burner as required to maintain
setpoint. A fan switch sensing bonnet temperature shall cycle the blower. A high limit
switch shall close the gas valve on a high temperature sensing.
N. Gas Furnace shall be AGA rated for natural or propane gas and with vent safety switch,
standing pilot, fan limit switch, cooling relay, control transformer and multi-speed direct
drive blower motor. Furnish filter rack and throwaway filter. Furnace shall be vented
with an AGA & UL listed type "B" gas vent complete with roof flashing, storm-collar, and
roof cap unless the unit is an exterior gas pack system.
1. General Provisions:
The General Conditions to the work write up and Performance and Material
Specifications shall form a part of the specifications for this work insofar as they apply to
these Plumbing Specifications.
a. The scope of work to be provided under these specifications includes the
furnishing, delivering, unloading, handling, erection, adjusting, and testing of all
materials equipment and apparatus which are required for the completion and
correct operation in all respects of the plumbing system.
b. The Contractor shall be responsible for coordination with all disciplines at the job
site to insure proper installation of the system with no interference and with
proper clearance. The progress of the work shall conform with and not delay the
work of other trades. The entire installation shall be completed as soon as the
condition of the building will permit.
c. All equipment shall be installed in strict accordance with manufacturer's
recommendations and instructions unless noted otherwise. These instructions
shall be considered as a part of these specifications.
d. Any work, which is being improperly installed, may be stopped.
e. All mechanical equipment and materials delivered and accepted for subject job,
shall become the responsibility of the contractor. He shall be liable in the event
of theft, loss, destruction, etc. All materials shall be properly protected from
weather, moisture, or damage in any way.
2. Substitute Equipment:
All materials and equipment shall be new and shall conform to the grade, quality, and
standards of those specified.
3. Acceptances and Completion:
a. Upon completion of the job, the contractor shall furnish to the owner one
complete set of all equipment instructions, including: guarantees, operation,
maintenance and installation data.
b. The job shall not be considered complete until all systems have been shown.
c. All equipment and material shall be thoroughly cleaned and spot painted as
The contractor shall guarantee his installation for one full year from date of final
acceptance by the owner. This guarantee shall include all materials and labor as
required to correct any deficiencies or maintain any equipment. The cost of said
guarantee shall be a part of original contract bid and shall not bear any extra expense to
Owner. Any adjustments or corrections made within the year of guarantee shall be
equal to the quality of materials and workmanship originally called for and shall be
subject to inspection and acceptance by the owner. Sub-contractor shall provide a
written inspection report on the existing system for code compliance and adequacy of
a. The entire sanitary, drainage and water systems shall be tested by the contractor
in the presence of and to the satisfaction of the local Plumbing Inspector.
b. Contractor shall make all necessary preliminary tests to be sure that the piping
systems are tight. No work shall be covered until approved by the local
1. Drainage and Vent System - The drainage and vent system shall be
tested to a 10' head of water above the top fixture of a fixture group.
The water shall be kept in the system, or in the portion under test, for at
least 15 minutes before the inspection starts; the system shall be tight at
2. Water Supply System - All water piping shall be tested to 150 lbs.
hydrostatic test before they are covered, and shall remain absolutely tight
for a period of at least two (2) hours. Do not pressure tests any portion
of the existing system with the new system.
The entire Plumbing System shall be installed in accordance with the standards
prescribed by the Southern Standard Plumbing Code. The Contractor shall comply with
all requirements of the SC. Department of Health and Environmental Control.
7. Cutting and Patching:
The Contractor shall do all necessary cutting of walls, floors, partitions, roof, etc., to
properly install his work. Care should be exercised in cutting to avoid unnecessary
damage. The patching of cuts shall be down by other divisions of these specifications.
8. Concealed Pipe:
In general, all piping in floors, ceilings, and walls of finished spaces shall be run
concealed. Cooperate with other trades in layout of chases and concealment of piping.
Chases will be provided as the building progresses. This Contractor shall designate
required chases, and failure to designate chases shall require this Contractor to cut
same at his own expense.
9. Underground Pipe:
Underground pipe shall be at depth to avoid action of freezing and frost, and not less
than 24" deep. Pipe under floors shall not undermine footings.
10. Sewer and Water Separation:
Sewer and water separation on outside water and sewer piping shall conform to the
Standard Plumbing Code.
11. Excavation and Backfilling:
a. Contractor shall do all excavation of trenches required for the work specified
herein and after the work is in place shall backfill, with clay or sand first and
black earth on top. Thoroughly tamp all earth.
b. All surplus earth shall be removed by contractor from building and disposed of on
site as directed by Owner. Provide necessary shoring for protection of trenches.
B. Drain and Vent Piping:
All sanitary drains and vents shall be ABS or PVC minimum. Schedule 40, plastic DWV
piping and fittings. Pipe shall conform to ASTM D 2661-77-A, D-2665, or D-1785,
Standards and shall bear NSF seal of approval. Solvent cement shall conform to ASTM
Standards D 2235-76A.
C. Water Piping:
1. All water piping below grade or under the concrete floor slab shall be type "L"
hard copper tubing with wrought sweat fittings. At the contractor's option,
underground piping, 3/4" or smaller, may be type "L" soft copper, with all bends
formed with a bending tool, no crimps.
2. Fittings and tubing shall conform to ASTM B 88-72. All solder shall be lead free.
D. Pipe Joints:
1. Copper Pipe: Shall be cut true and square. Shall be reamed inside and ends
shall be polished outside with emery cloth where it enters fittings. All fittings
shall be polished inside with emery cloth and soldered with a falux as
recommended by the solder manufacturer.
2. Plastic Pipe: Shall be assembled with solvent joints in accordance with ASTM D-
2321, latest revision.
E. Roof Openings and Flashings:
Flashings for plumbing vent stacks through the roof shall be made up from 2 1/2
lb. sheet lead, extending 8" away from outside of pipe and up to top of stack,
with not less than 1" turned down into top of stack. Vent stacks shall extend 8"
F. Pipe Sleeves & Plates:
1. Water piping passing through walls, ceilings, floors, in or under concrete slabs,
beams, or any portion of the building structure, shall be free to expand and
contract and shall not be embedded in plaster, concrete or masonry. Such
piping shall be provided with steel sleeves or thimbles when passing through
concrete or masonry walls, ceilings floors or beams and such sleeves or thimbles
shall be at least three-eights (3/8) inch larger than the outside diameter of the
pipe plus the insulation. Annular spaces between sleeves and pipes in the floor
slab shall be filled or caulked with a non-hardening mastic.
2. Where exposed pipes pass through floors, walls or ceilings of rooms and spaces,
unless otherwise specified, they are to be fitted with stamped steel, nickel-plated
wall and ceiling plates with set screw to hold them in position on pipe.
G. Hangers and Supports:
1. All piping, whether exposed or concealed, shall be substantially supported and
made secure. Refer to Code for hanger intervals.
2. Piping underground shall be installed on firm footing and be well supported as
not to sag from settling of earth backfill.
H. Gas Fired Hot Water Heaters:
1. Furnish and install a AGA listed natural or propane gas fired hot water heater.
Heaters shall be constructed for 150 psi working pressure and tank so labeled.
Each heater shall be completed with tank, insulation, white enamel steel jacket,
magnesium valve. Heater shall have an automatic high limit energy shut-off
devise. Heaters shall have 3-year warranty and shall meet ASHRAE 90-75
efficiency requirements. All water heaters shall have a minimum first hour rating
2. Prohibited Locations - No gas or oil fired water heater shall be located in a
bedroom, bathroom, clothes closet, under any stairway, or in a confined space
with access only to the above locations.
I. Plumbing Fixtures:
1. All fixtures shall be standard builder’s quality properly handled, carefully
uncrated, erected and set in place. On completion, all fixtures shall be properly
cleaned and adjusted and left in readiness for use. The Contractor shall assume
all responsibility for the proper protection of all fixtures to insure that same shall
be in good condition for acceptance.
2. Exposed metal parts of all fittings, unless otherwise noted, shall be polished
chromium finish on nickel plated brass. All cast iron enameled fixtures shall be in
ACID RESISTING enamel.
3. All fixtures shall have individual cut-off stops on cold and hot water lines where
same are not specified as part of the fixture, they shall be installed in supply
lines as close to fixture as possible.
4. Install chrome plated brass nipples on all exposed supply pipes through wall to
fixture supplies and flush valves.
5. All sink and lavatory P-traps shall be minimum PVC where concealed and 17 gal.
chrome plated brass where exposed.
6. Supply stops shall have screw or sweat connections and be all brass and chrome
plated. Connect to roughing with chrome nipples or supply stop with extension
7. Connections of fixtures to piping shall be complete and substantial, using proper
bolts, anchors, screws, etc.; for supporting of all fixtures to avoid strain on
connections. Determine the exact finished floor and wall surface before installing
8. Complete connections for all fixtures, traps, wastes, vents, hot and cold water,
etc., shall be provided.
9. All fixtures shall have the joint between the fixture and the mounting surface
caulked with silicone caulk/sealant.
A. Electrical Work
1. General Provisions:
The general conditions to the work write up and Performance and Material Specifications
shall form a part of the specifications for this work insofar as they apply to these
a. All materials and equipment shall be new and shall conform to the applicable
standards of the following authorities:
Underwriters' Laboratories, Incorporated
National Electric Manufacturers Association
American Institute of Electrical Engineers
Insulated Power Cable Engineers Association
American National Standards Institute
b. The Contractor shall:
1. Acquaint him with all conditions which may affect the work. Submission of a bid
by the Contractor shall acknowledge on his part that all such conditions are fully
known to him.
2 Install all work to conform to latest recommendations of the National Electrical
Code, the National Electrical Safety Code, and Standard Building Code.
3. Secure and pay all necessary permits, and furnish at his own expense, prior to
final payment, certificates of inspection as required by the authority having
4. Secure and be responsible for his own measurements.
5. Complete the work in all respects, ready for regular use.
6. Coordinate the work under these specifications with that of each of the other
c. Scope of Work:
Work under this contract comprises providing all labor, material, equipment,
transportation and related items and subcontract work for a complete electrical
system per code and per work write-up.
2. Electrical Panels:
a. The service entrance, the electrical house panels, the main disconnect,
the main breakers shall be sized as a minimum of 150 amps and in
accordance with the provisions of Section 220-30 or 220-31 of the
National Electrical Code. No piggy-back or thin breakers shall be
acceptable. All type NMB cables used outside must be protected.
b. There shall be one circuit provided for each 500 square feet, or a part
thereof, of usable floor space for the purpose of lighting. There shall be
one (1) 20 AMP circuit provided for each six (6) duplex general purpose
receptacles or a part thereof. There shall be provided at least three (3)
remote duplex receptacles, each on a separate circuit, for each kitchen.
All new circuits, except electric ranges and clothes dryers, shall be
accompanied by a grounding conductor.
c. All electrical panels shall be labeled with underwriters' labels and all
breakers in the electrical panels shall be labeled as to which circuits they
d. Provide circuit index on service panel showing which lines are served by
each circuit breaker. Light fixtures shall be installed by the contractor as
required. The work write-up shall indicate which fixtures are to be
replaced and shall stipulate the allowance for fixtures. The owner shall
select the fixtures within the allowance specified in the work write up and
shall pay any additional cost above the allowance. Lighting fixtures shall
be complete with lamps, glassware, mounting hardware, frames and trim,
stems, ballasts and sockets to provide a complete operating fixture at
e. The contractor shall be responsible to determine the additional wiring,
outlets, panel size, etc., to conform to code and his bid price shall include
a. The bathroom fixtures shall be controlled by a wall switch not readily
accessible from the tub or shower.
b. Every habitable room shall have one overhead light fixture and minimum
two separate wall outlets, or minimum three wall outlets, one of which is
controlled by a wall switch.
c. Provide and install Ground Fault Interrupters in bathroom and kitchen
d. Smoke Detectors - Each dwelling unit shall be provided with approved,
listed and labeled smoke detectors sensing visible or invisible particles of
combustion installed in a manner and location consistent with its listing.
The detector shall provide an alarm suitable to warn the occupants within
the dwelling. Smoke detectors shall be installed in each bedroom and in
the hallway. All smoke detectors shall be hardwired into the electrical
system with a battery backup.
4. Grounded Conductor:
a. All residential wiring systems shall have a grounded conductor that is
identified in accordance with Section 200-6 of the National Electrical
b. No grounded conductor shall be attached to any terminal or lead so as to
reverse designated polarity.
5. Grounded Electrode:
a. Where any electrical additions are added to an existing system, there
shall be a rod or pipe electrode conforming with Section 250-83-C of the
National Electrical Code.
b. The cold water pipe and the heating ducts shall be bonded through a
grounding conductor to the grounding bar of the main panel or to the
grounding conductor at the meter.
6. Wall Receptacles:
All receptacle outlets shall be installed in the wall and at least 12" from the floor
unless otherwise stated in the work write up. All new receptacle installations
shall be grounded.
7. Light Switches:
a. All light switches shall be installed in the wall unless otherwise stated in
the work write up.
b. All ceiling, wall, and porch lights shall be controlled by a wall switch.
8. Separate Circuits:
a. Each washing machine, refrigerator, dishwasher, shall be installed on a
b. Each kitchen shall have two small appliance circuits in addition to the
c. HVAC units shall be on a separate circuit.
When the work write-up requires a house to be wired according to the housing
code or the electrical code, all rosettes and pull chain fixtures shall be removed
and replaced with a light fixture and wall switch.
10. Exposed Wires:
Where rewiring is required, there shall be no exposed wires or exposed conduits
unless otherwise specified in the work write up or change order, except wire
mold may be used upon written approval of the inspector.
11. Water Heater:
All exposed wires connecting a new or existing water heater shall be encased in
flexible conduit for the full length of its exposure and secured at both ends. All
cables connected to a water heater shall be secured with a clamp to the opening
provided for this purpose.
12. Flexible Cord:
When rewiring is specified in the work write up, all movable appliances, new or
existing, shall be connected to their electrical supply by an appropriate receptacle
and flexible cord.
13. Under Floor Wires:
a. When rewiring or additional wiring is required, all under the house, new
or old, shall be stapled as near as possible to where the wire comes
through the wall or floor and a maximum of 4-1/2' along the wire. N.E.C.
b. All wires through foundation wall shall be in conduit through the wall.
All panels, boxes, and recessed fixtures shall be flush with the surface.
15. Exposed Wire Exterior:
a. All exposed wire on the exterior of the house shall be in conduit.
b. No wire cables shall be run from the meter or exterior box through the
foundation that are not protected from where they connect to the box or
meter through the foundation wall with conduit.
16. Grounding Conductors:
All new circuits shall be accompanied by a grounded-conductor as required in
Article 250 of the National Electrical Code.
17. Boxes and Plates:
a. All fixture boxes shall be a minimum size of 4" x 1-1/4" octagon or round.
Where rewiring of light fixtures is accomplished, the switch leg shall be
made up in the fixture box. All junction boxes shall be equipped with
b. Where any cover plate fails to cover the opening or defect, a jumbo plate
shall be used or the wall shall be repaired neatly. Any holes left by
unused electrical openings shall be repaired or appropriately covered.
The Contractor shall guarantee all workmanship and material furnished under this
Specification for one year from date of final acceptance by the Owner. During that time
he shall furnish and reinstall any part(s) which are faulty or defective, without cost to
A. Lead Base Paint Abatement:
See the Lead-Based Paint requirements in Chapter 9 of this manual.
Section 19 Pre-Construction Conferences
After awarding the contract, the recipient must hold a pre-construction conference with the prime
contractor and any subcontractors. The purpose of the pre-construction conference is to apprise the
contractor and subcontractors of labor standards, equal opportunity and other contract obligations and
responsibilities. A pre-construction conference also serves as an opportunity for all parties to discuss
how the project is expected to progress, the schedule for completion, determine who has review
authority for contracts, and determine method and schedule of payments, change orders, etc. It also
allows an opportunity to obtain any outstanding contract documents and provide the contractor with
posters for the construction site.
Section 20 Construction Progress
20-1 Authority Inspection Process
As recipients begin to progress with construction they will need to complete Attachment 6-18,
Inspection Request Form in order for the Authority to process any request for payments for
construction regardless of whether the recipient is being reimbursed for NSP funds or not. An
Authority inspector will inspect for work in place against the percentage complete provided on the
Inspection Request Form. For those that are drawing funds during construction a check request
will be processed after the inspection has been completed and approved. It will take estimated
twenty-one (21) days to process your request.
20-2 Using the Authorities Funds as Construction Financing
When funds are used for construction financing a minimum of two (2) payment requests are required
for each project. The Authority will automatically withhold a 10% retainage from the total award
amount prior to the first draw, except for acquisition. Disbursement of the retainage will occur when
all applicable documentation from contractor (e.g. lien, waivers, certificate of occupancy) is received to
coincide with the completion of the project. Recipients electing to draw funds at the completion of the
project are exempt from the two payment policy, but are required to request inspections at 33%, 66%
and 100% complete. Developer fees and/or project delivery costs will not be disbursed until the
completion of the project.
20-3 Final Inspection
Under no circumstances is it allowable for tenants or home buyers to occupy units before the unit
has passed a final inspection conducted by an SCSHFDA inspector. Do not close on any
homeownership units or allow tenants to move into any rental units until the final inspection has been
20-4 Other Construction Considerations with Regard to Progress
The Authority has listed below several Attachments that are provided as SAMPLES to provide the
recipient with resources that will facilitate successful construction management:
Attachment 6-19 Contractor Application Form
Attachment 6-20 Major Subcontractors Form
Attachment 6-21 Notice of Award
Attachment 6-22 Sample Notice to Proceed
Attachment 6-23 Contractor Payment Request
Attachment 6-24 Release of Lien
In using the sample forms recipients are encourage to use the below listing to demonstrate best
business practices to ensure construction management requirements are met:
1. A Notice of Award and A Notice to Proceed (dated at least three days after the contract signing)
should be issued to the contractor, which should specify the time period within which the work
should begin and when the work should be completed. Project milestones triggering progress
payments should be specified in the contract. Systematic, thorough inspections are critical to
2. Conducting thorough, regular inspections throughout the process can prevent many problems
that arise at the end of a job.
3. Inspections should identify and remedy problems as early as practical.
4. Inspections of the work performed by each contractor should be made at least once a week,
and preferably daily, to ensure that the contractor is in compliance with aspects of the contract.
5. The inspections should be documented by completion of an inspection report and signed and
dated by the inspector. The inspections should compare actual work completed with the
6. Payments are the primary leverage in dealing with contractors and should be withheld until
faulty work is corrected. If serious deficiencies are identified through inspection, they should be
itemized in writing and given to the contractor.
7. The recipient can terminate the contract if the contractor fails to satisfactorily correct the
deficiency. Recipients are encourage as a part of procuring to use the application forms in
identifying responsive/responsible contractors.
8. Progress payments should be tied to acceptable completion of items listed on the work write-up
or plans and specifications and supported by documented progress inspection reports. The
sample copy of a Contractor Payment Request Form will help with this process.