"Sample Letter for Introduction Property Management"
3c05d333-24e8-4c5c-87ea-fb21024cfb2a.xls 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 grantee. 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 3c05d333-24e8-4c5c-87ea-fb21024cfb2a.xls SubrecipientDeveloper Name Project Agreement Number Description SR/Developer Address (Narrative) City, ST Zip Contact Phone # Email Address Submit this form prior to requesting reimbursement/advancement. Please email to [INSERT EMAIL ADDRESS] 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 3c05d333-24e8-4c5c-87ea-fb21024cfb2a.xls 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 project 1 - Site Approval 4 of 9 3c05d333-24e8-4c5c-87ea-fb21024cfb2a.xls Subrecipient Grant Number Address City, ST Zip Contact Phone # Email Address Date Rehab Plan Submitted to DCA Rehab Description (Summary of Work Plan) Approx. 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? Costs $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 2 - Rehab Approval 5 of 9 3c05d333-24e8-4c5c-87ea-fb21024cfb2a.xls 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 Fencing 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 Roofing Heat distribution systems Energy Efficiency Roof Covering Heating Equipment Stormwater Management Drainage system Fireplaces / Inserts Heating / Cooling Systems Flashing Air Conditioning / Cooling Passive Heating / Cooling Skylights & Penetrations Cooling & Air Handling Equipment Insulation Plumbing Distribution Systems Energy Efficient Appliances Water Supply & Distribution Wall Cladding / Windows Interiors 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 3c05d333-24e8-4c5c-87ea-fb21024cfb2a.xls 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.