Sample Business Letter of Introduction by yap14322


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                                                        1 - Site Approval
          This tab is required for property approval for all NSP projects. Contracts may be initiated (contingent on
          environmental clearance and appraisal) prior to submission, but reimbursement/ advancement should not
          be requested (other than for general admin, project design, ER, appraisal, and inspection) for the site until
          Grantee has issued approval. Most of the columns in this spreadsheet mimic the monthly report. Please
          copy and paste these into the monthly report and save the time of entering them twice. For the purpose
          of "obligating funds", please retain documentation (CONTRACTS, work write ups, estimates, design spec,
          etc) that would back up the amount obligated to the project. This is not required to be submitted for
          approval of the project but should be made available to Grantee upon request and will be required to
          obligate funds.
                                                      2 - Rehab Approval
          This tab is only required for rehab and redevelopment activities. Grantee requires that properties
          requiring rehab have a Certified Housing inspection prior to beginning rehab. Local units of
          government/agencies may use staff for initial inspection for rehab/redevelopment purposes if they are
          certified as Housing Inspectors. All properties should have a third party Certified Housing inspection prior
          to sale/transfer to a NSP beneficiary. If all work performed for rehab will be done to a certain standard or
          address specific items not found in an inspection report, please develop and maintain a list of the local
          rehab standards for NSP projects. Rehab standards may be submitted to Grantee in order to avoid case-by-
          case approval of the rehab desired for each property. The only case-by-case approval needed would be if
          the Work Plan exceeds what is discovered in the inspection and in the approved Rehab plan for the
                                                          3 - Checklist
          This tab is required for approval. Please scan and email any and all attachments where feasible.
          Comprehensive documentation should be retained locally. For the purpose of site approval, please submit
          summaries and only the pages with key information (appraised value, foreclosed status, summary of work
          to be done, summary of inspection, etc). This is sufficient for Grantee. The full appraisals, title searches,
          work write ups/estimates should be retained locally and made available to Grantee upon request. Should
          the attachments not be available yet due to the project timeline, please obtain the documentation as
          quickly as feasible and retain copies locally.

Instructions                                                                                                              2 of 9

        SubrecipientDeveloper Name                                                          Project
                    Agreement Number                                                    Description
                SR/Developer Address                                                      (Narrative)
                           City, ST Zip
                              Phone #
                        Email Address

                                                     Submit this form prior to requesting
                                          reimbursement/advancement. Please email to [INSERT EMAIL

                                                                                                                 Located in Pre-
                                          Apt /                                                         LMMA <                                                                    Blighted? (Use
       Project Physical Address                              City              Zip       County                    approved        Qualification of Acquisition   Property Type                    In floodplain?
                                          Unit #                                                         50%?                                                                           D)
                                                                                                                 Census Tract?

1 - Site Approval                                                                                                                                                                                              3 of 9

                         Intended Eligible Uses       Financing Mechanisms                      Land Banking                                                                     For State Use Only (DCA only)
                            (check all that apply)       Acquisition                              Acquisition                                                                                       Staff Member       Date
                                                         Disposition                              Disposition
                                                         Relocation                                                                                            Program Design Approved by
                                                         Direct Homeownership Assistance        Demolition
                                                                                                                                                                Rehabilitation Approved by
                                                         Rehabilitation                            Clearance
                                                                                                                                                                Environmental Approved by
                                                       Acquisition / Rehabiliation              Redevelopment
                                                                                                                                                                    Site Approval Issued by
                                                          Acquisition                             Acquisition
                                                          Disposition                             Disposition
                                                          Relocation                              Public Facilities and Improvements
                                                          Direct Homeownership Assistance         Relocation
                                                          Rehabilitation                          Direct Homeownership Assistance

                                                                                                                  Total NSP $
           Legally                                                                                                                                      Appraised    Date of    Date of                              Intended
                      Relocation Triggered?          Zoning?            Level of ERR        ERR Required          Obligated to         Purchase Price                                              Proposed Reuse
          Occupied?                                                                                                                                       Value     Appraisal Inspection                            Beneficiary

1 - Site Approval                                                                                                                                                                                                                 4 of 9

                     Grant Number
                        City, ST Zip
                           Phone #
                     Email Address
      Date Rehab Plan Submitted to

                                               Rehab Description
                                                (Summary of Work Plan)

                                         Date of         Purchase          Approx.    Approx.                    Approx. Other       Total Project   Davis-Bacon
       Project Physical Address                                                                   Construction
                                       Inspection          Price         Rehab Costs Demo Costs                    Site Costs           Costs         Triggered?
                                                     $          -                                                                $              -
                                                     $          -                                                                $              -
                                                     $          -                                                                $              -
                                                     $          -                                                                $              -
                                                     $          -                                                                $              -
                                                     $          -                                                                $              -
                                                     $          -                                                                $              -
                                                     $          -                                                                $              -
                                                     $          -                                                                $              -
                                                     $          -                                                                $              -
                                                     $          -                                                                $              -
                                                     $          -                                                                $              -
                                                     $          -                                                                $              -
                                                     $          -                                                                $              -
                                                     $          -                                                                $              -
                                                     $          -                                                                $              -

2 - Rehab Approval                                                                                                                                             5 of 9

                                     Where will the Work Plan exceed the Inspection & Approved Rehab Plan?
                     Exterior                              Electrical                               Insulation & Ventilation
                        Wall cladding / Trim                  Service Entrance & Level of Service      Insulation in Unfinished Spaces
                        Doors                                 Branch Conductors & Wiring               Insulation in Finished Spaces
                        Windows                               Ceiling Fans, Light Fixtures             Venting Systems
                        Garage                                Switches, Receptacles                    Attic Ventilation
                        Driveway/Walkways                     GFCIs & Safety                        Built-In Kitchen Appliances
                        Porch / Deck                          Main & Distribution Panels               Dishwashers
                        Landscaping                           Smoke Detectors / Carbon Monoxide        Range, Oven
                                                           Heating                                     Trash Compactor
                        Soil / Site work
                                                              Controls / Thermostats                   Garbage Disposal
                        Recreational Facilities
                                                              Safety Controls                          Range Hood, Ventilation
                        Other Infrastructure
                                                              Chimneys, Vents, Flues                   Microwave Ovens
                        Exterior Lighting
                                                              Solid Fuel heating                       Refrigerator
                                                              Heat distribution systems             Energy Efficiency
                        Roof Covering
                                                              Heating Equipment                        Stormwater Management
                        Drainage system
                                                              Fireplaces / Inserts                     Heating / Cooling Systems
                                                           Air Conditioning / Cooling                  Passive Heating / Cooling
                        Skylights & Penetrations
                                                               Cooling & Air Handling Equipment        Insulation
                                                               Distribution Systems                    Energy Efficient Appliances
                        Water Supply & Distribution                                                    Wall Cladding / Windows
                        Interior Drain, Waste & Vent                                                   Water Managment
                                                               Walls, Ceilings, Floors
                        Hot Water system                                                               Waste Managment
                                                               Counters, Cabinets, Vanities
                        Fuel storage & Distribution                                                    Recycled Materials
                                                               Stairs, Railings, Balconies
                        Sump Pumps / Flood Controls                                                    Energy Efficient Lighting
                                                               Paint, Wallpaper
                        Fire & Lawn Sprinklers                 Carpet, Floor Coverings                 Envelope Sealing / Weatherization

                                                                        Additional Notes

2 - Rehab Approval                                                                                                                         6 of 9

                Please Check One                                     Documentation
                 Yes    No   N/A    Request for Release of Funds Complete?

                 Yes    No   N/A    ERR Complete (Tier 1 & Tier 2 or Site Specific)?

                 Yes    No   N/A    Funding Approval Conditions Complete?

                 Yes    No   N/A    Does this project fit within the current budget and NSP plan?

                 Yes    No   N/A    Is a budget revision or plan amendment required?

                 Yes    No   N/A    Contract initiated for purchase of property?

                 Yes    No   N/A    Wage Decision Required? (Davis - Bacon) Prior to Procurement
                                                           Attachments (Check all that apply)
                 Yes    No   N/A    Verification of Foreclosure
                                       Standard Property Title Search (Required for Foreclosures)
                                       Name & Contact Information for Title Attorney/Agent
                                       Deed in Lieu of Foreclosure
                                       History of past due taxes

                 Yes    No   N/A    Verification of Abandonment
                                       Standard Property Title Search (for determining current lien holders)
                                       Verification that Foreclosure has been initiated (required)
                                       History of past due taxes (90 days or greater)
                                       History of past due mortgage (90 days or greater)
                                       Verification of Vacancy (90 days or greater)
                                           Dated/signed site inspection by City Staff verifying vacancy
                                           Utility records demonstrating no utilities for 90+ days
                                           Major insurance claim for site that would have made site unihabitable
                                           Building permit that would have made property uninhabitable
                                           Record of bankruptcy from builder/developer prior to occupancy
                                           USPS record of vacancy (click link to the right)

                 Yes    No   N/A    Verification of Vacancy (Use E)
                                       Verification of Vacancy (90 days or greater)
                                           Dated/signed site inspection by City Staff verifying vacancy
                                           Utility records demonstrating no utilities for 90+ days
                                           Major insurance claim for site that would have made site unihabitable
                                           Building permit that would have made property uninhabitable
                                           Record of bankruptcy from builder/developer prior to occupancy
                                           USPS record of vacancy (click link to the right)

                 Yes    No   N/A    Verification of Blight (Use D)
                                       Record of condemnation
                                       Record of designation as a blighted property
                                       Photos of deterioration and deficiencies
                                       Record(s) of code enforcements

                 Yes    No   N/A    Appraisal(s) attached? (if no please provide reason below)
                                        < $25,000 in value. Will be valuated by 2 real estate experts.
                                        Unable to perform prior to offer due to auction (within 60 days)
                                        Acquisition will occur more than 60 days out

                 Yes    No   N/A    Inspection(s) attached? (if no please provide reason below)
                                       Will be performed prior to determining work plan for rehab (Use B)
                                       Will be performed prior to sale to NSP beneficiary (Use A)
                                       Not required due to demolition of current structure (Use D)
                                       Not required until completion of new construction (Use E)

                 Yes    No   N/A    Work plan attached? (if no please provide reason below)
                                       Will be provided after inspection is completed
                                       Will not require work beyond scope of submitted rehab plan & inspection
                                       Not required due to demolition of current structure (Use D)
                                       No work to be completed on site (Acquistion / Financing only)
                                       Still being developed for new construction (Use E)

                 Yes    No   N/A    Site map attached? (Photos are helpful when feasible)

3 - Checklist                                                                                                      7 of 9
                                          Sample Timeline for Purchase and Rehabilitation
1. Identify properties that may be eligible for NSP
           1. Foreclosed
           2. Abandoned
           3. Vacant (Use E)
           (Obtain documentation verifying status of property)

           [Note to users of this sample form: Depending upon the program design of the grantee, the environmental review
           (ER) for all properties and appraisal (required only for foreclosed properties) can be completed after the purchase
           agreement is executed if the agreement is conditional upon acceptable results from the ER and appraisal.]
2. Perform ER
           1. ER Determination
           2a. ER Tier 1 (Post/Publish & Request Release from Grantee)
           2b. ER Full Site Specific (Post Publish & Request Release from Grantee)
           3. ER Tier 2
             a. Non-profits must submit Tier 2 prior to acquisition to Grantee. Approval Required prior to acquisition.
             b. Local governments must conduct Tier 2 prior to acquisition but may submit Tier 2 quarterly to Grantee

3. If foreclosed and occupied by tenants, verify that tenants (if applicable) were given proper notice under new federal laws
protecting tenants in foreclosed properties. Tenants with leases may stay until the end of their lease term. Tenants at will must be
given 90 days notice. Certain family members are not protected. Click this link and consult guidance in the NSP Resource Exchange.

4. Conduct preliminary appraisal or reference other property sales and tax assessments to establish value for purposes of making
an offer. A full, URA-compliant appraisal must be completed fore all FORECLOSED properties prior to purchase to establish a
purchase discount of at least 1%. NSP does not require appraisals for other purposes.
5. Send letter of Voluntary Acquisition Without the Threat of Eminent Domain
6. If property is Occupied, send General Information Notice (GIN)
           1. Calculate URA or Section 104d benefits and pay tenant or
           2. If performing rolling rehab, offer relocation to vacant rehabilitated unit
7. Perform standard title search on property (unless performed earlier)
8. Submit Contract to Purchase Property
           1. Contingent on Appraisal (Offer must be 1% below Appraised value - Appraisal within 60 days)
           2. Contingent on Inspection
           3. Possibly contingent on Environmental Clearance if not completed prior
9. Conduct Inspection of Property (Certified Housing Inspector)
10. Submit NSP Property & Rehab Approval Request to Grantee (email to INSERT EMAIL ADDRESS)
11. Submit Payment Requisition
           1. If on advancement, submit contract and copy of appraisal.
           2. If on reimbursement, submit settlement statement and copy of cancelled check
12. Create Work Order for Site
           1. If work exceeds inspection + submitted rehab plan, submit work order to NAME OF AGENCY for approval
13. Procure services in accordance with CDBG/HUD procurement policy
14. Rehabilitate property and submit payment requisitions as needed (allow 10 business days to process)
15. Market property to NSP eligible beneficiaries
16. Verify NSP beneficiary (income, homebuyer training, financing)
17. Enter into contract with NSP beneficiary to purchase home
           1. Contingent on Appraisal
           2. Contingent on Inspection
           3. Must be sold for LESS than the total funds involved in the property
           4. If property was constructed prior to 1978, lead based paint disclosure required.
18. Sell property to NSP beneficiary
19. Report and disburse funds from sale as program income or (for developers that are not sub-recipients) as net proceeds of sale
or NSP loan repayment.

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