module 6: program administration. 2 module 6 content administrative options timeliness of use...
TRANSCRIPT
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Module 6: Program Administration
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Module 6: Program Administration
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Module 6 Content
• Administrative Options
• Timeliness of Use
• Defining Expenditures
• Subrecipients and Developers
• Homeowners and Housing Counseling
• Recordkeeping and Reports
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Module 6: Program Administration
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Administrative Options
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Administrative Options
• Grant recipient has responsibility for grant administration (see 570.501)
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Administrative Options
Options that may be used:
• (a) Join together with other NSP grantees as part of a consortium, designating either yourself or another grantee as the administering entity.
• (b) Contract out the management of your NSP program.
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Other Administrative Options
• (c) Designate one or more public agencies, such as a redevelopment or housing authority, to undertake activities assisted with grant funds.
• (d) Elect to carry out some or all of the assisted activities with your own staff
• (e) Select one or more private nonprofit entities to operate as subrecipients in carrying out NSP activities.
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Other Administrative Options (continued)
• (f) Create a holding company for land banking.
• (g) Procure the services of contractors to carry out an activity such as housing counseling.
• (h) Provide funds to a developer to use to accomplish an objective in your local strategy.
• (i) Contract with a developer through your procurement process.
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Administrative OptionsConsiderations
• Grantee is ultimately responsible.
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Options for Administering Property Acquisition and Rehab
C - Competitive NC - Non-competitive NA - Not applicable GD - Grantee determination
CBDO - Community-Based Development Organization Individual Beneficiary - a homeowner who will occupy an NSP home as a primary residence
Selection OMB Requirements
Eligible Criteria Treated as
Activity Entity Program Part 85/ Part 84/
C NC Income? A-87 A-I22 A-133
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Options for Administering Property Acquisition and Rehab
C - Competitive NC - Non-competitive NA - Not applicable GD - Grantee determination
CBDO - Community-Based Development Organization Individual Beneficiary - a homeowner who will occupy an NSP home as a primary residence
Selection OMB Requirements
Eligible Criteria Treated as
Activity Entity Program Part 85/ Part 84/
C NC Income? A-87 A-I22 A-133
NSP Grantee NA NA Yes Yes No Yes
§570.201(a) Subrecipient GD GD Yes No Yes Yes
Property Acq
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Options for Administering Property Acquisition and Rehab
C - Competitive NC - Non-competitive NA - Not applicable GD - Grantee determination
CBDO - Community-Based Development Organization Individual Beneficiary - a homeowner who will occupy an NSP home as a primary residence
Selection OMB Requirements
Eligible Criteria Treated as
Activity Entity Program Part 85/ Part 84/
C NC Income? A-87 A-I22 A-133
NSP Grantee NA NA Yes Yes No Yes
§570.201(a) Subrecipient GD GD Yes No Yes Yes
Property Acq
NSP Grantee NA NA Yes Yes No Yes
Developer:
For Profit GD GD No No No No
Private Nonprofit
§570.202(b)Subrecipient:
Rehab plus
New Construction Public Entity GD GD Yes Yes No Yes
Private Nonprofit
No Yes
Individual GD GD No NA NA NA
Beneficiary
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Options for Administering Property Acquisition and Rehab
C - Competitive NC - Non-competitive NA - Not applicable GD - Grantee determination
CBDO - Community-Based Development Organization Individual Beneficiary - a homeowner who will occupy an NSP home as a primary residence
Selection OMB Requirements
Eligible Criteria Treated as
Activity Entity Program Part 85/ Part 84/
C NC Income? A-87 A-I22 A-133
NSP Grantee NA NA Yes Yes No Yes
§570.201(a) Subrecipient GD GD Yes No Yes Yes
Property Acq
NSP Grantee NA NA Yes Yes No Yes
Developer:
For Profit GD GD No No No No
Private Nonprofit
§570.202(b)Subrecipient:
Rehab plus
New Construction Public Entity GD GD Yes Yes No Yes
Private Nonprofit No Yes
Individual GD GD No NA NA NA
Beneficiary
§570.20I(n) Individual GD GD No NA NA NA
Homeowner
Assistance Beneficiary
§570.204CBDO GD GD No No Yes No
CBDO’s
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Administration
• Using CDBG funds for administering NSP
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Timeliness of Use
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Timeliness of Use
• Obligate funds—18 months
• Use funds—4 years
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Timeliness of Use
• Obligate funds—18 months
• Use funds—4 years
• Understanding the starting point
• Based on grant amount only
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Timeliness of Use
• Obligate funds—18 months
• Use funds—4 years
• Understanding the starting point
• Based on grant amount only
• The role of DRGR
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Timeliness of Use
• Obligate funds—18 months
• Use funds—4 years
• Understanding the starting point
• Based on grant amount only
• The role of DRGR
• Same Requirement for States and their subrecipients
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Defining Expenditure of Funds
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Subrecipients and Developers
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Subrecipients and Developers
• Pros and cons
• Background of ‘subrecipients’ term
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What Makes an Entity a Subrecipient?
• Public or private nonprofit agency, authority, or organization; or for-profit organization
• Receiving CDBG/NSP funds from a grantee (or another subrecipient) to carry out eligible activities
• Specifically excludes contractors providing supplies, equipment, construction, or services subject to procurement process
• Also, specifically excludes CBDOs (see 570.204), unless the grantee explicitly so designates
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Subrecipients and Developers
• Local governments can be subrecipients
• Issues with developers
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Issues with Developers
• Definition
• Procurement
• Program income/reasonable fees/ administrative costs
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Issues with Developers
• Definition
• Procurement
• Program income/reasonable fees/ administrative costs
• Underwriting to avoid undue enrichment
• Importance of written agreements with all parties
• Ensuring all applicable requirements are met
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Remaining Topics
• Homeowners and Housing Counseling
• Recordkeeping and Reporting
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Homeowners and Housing Counseling
• Determine NSP income eligibility
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Homeowners and Housing Counseling
• Determine NSP income eligibility
• Determining if prospective homeowners qualify for a mortgage
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Homeowners and Housing Counseling
• Determine NSP income eligibility
• Determining if prospective homeowners qualify for a mortgage
• Using a pre-qualified pool as a strategy
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Homeowners and Housing Counseling
• Determine NSP income eligibility
• Determining if prospective homeowners qualify for a mortgage
• Using a pre-qualified pool as a strategy
• Minimum of 8 hours of counseling
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Homeowners and Housing Counseling
• Determine NSP income eligibility
• Determining if prospective homeowners qualify for a mortgage
• Using a pre-qualified pool as a strategy
• Minimum of 8 hours of counseling
• Counseling agency must be HUD-approved
• Eligibility of counseling under NSP
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Homeowners and Housing Counseling
• Determine NSP income eligibility
• Determining if prospective homeowners qualify for a mortgage
• Using a pre-qualified pool as a strategy
• Minimum of 8 hours of counseling
• Counseling agency must be HUD-approved
• Eligibility of counseling under NSP
• Ensuring third-party compliance
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Recordkeeping and Reporting
• Grantee bears responsibility
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Recordkeeping and Reporting
• Grantee bears responsibility
• Ensure availability of documentation by third parties
• Getting reports with accurate and timely information
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Recordkeeping and Reporting
• Grantee bears responsibility
• Ensure availability of documentation by third parties
• Getting reports with accurate and timely information
• Leaving a clear audit trail
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Module Summary
• Administrative Options
• Timeliness of Use
• Defining Expenditures
• Subrecipients and Developers
• Homeowners and Housing Counseling
• Recordkeeping and Reports