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HomeMy WebLinkAboutHOME Program changesTO: FROM: SUBJECT: M _NTANA Department of Commerce Persons Interested In the Montana HOM~ Progr, a~ Onstad, HOME Program Manag~rl ~ Connie OCT 3 20O2 CITY OF LAUREL Proposed Changes to the HOME Program for Year ending 2004 DATE: October 1,2002 Proposed Chan,qes to the HOME Pro.qram The HOME program serves a very diverse customer base with affordable housing as the common denominator. Decisions regarding the proposed changes will be made in concert with the goals set for the HOME program in the Montana Consolidated Plan. Based on past and current public input, MDOC proposes three changes to the HOME program. Your reason and logic behind supporting or not supporting the potential changes to the HOME program is very important to us. Please review the items described below and provide any feedback by December 31, 2002. We also invite you to visit with us at the public meetings scheduled for October in Billings and Boulder. 1. Chan.qe of Application Deadline The HOME program proposes to move the application deadline forward to March 3, 2003. The HOME program year begins April 1 and ends March 31 of each year. The HUD allocation is generally available by April 30. The program is under a federally restricted timeline to have funds committed and spent within 24 months of the start of the program year. For HUD's purposes this means set-up and drawn down in the Integrated Disbursement and Information System (IDIS). This past year the HOME program had to justify to HUD, through contracts with our grantees, that the funds were committed within the 24 -month period. We could not prove, however, that funds had been spent within the 24-month period. Moving the application deadline forward will eliminate the several month delay in awarding grants and executing contracts. This will also allow grantees additional time to fulfill the Release of Funds contractual obligations. With Release of Funds occurring earlier, architect and contractor selection will assuredly be in place at the start of Montana's construction season. 2. Program Income/CHDO Proceeds Currently the HOME program does not report Program Income/CHDO proceeds within the HUD based Integrated Disbursement and Information System (IDIS). Based on HOME regulation §92.503, Montana state recipients may retain program income/CHDO proceeds at the local level and use it for HOME eligible housing activities, It is clear from the information received that some grantees neither understand nor follow the regulatory requirements associated with HOME program income. HUD has notified the State HOME program that program income/CHDO proceeds must be reported and tracked within the IDIS system. The HOME program requires program income/CHDO proceeds reporting on a quarterly basis. As a general rule, the HOME program will require program income/CHDO proceeds be returned to the State. Entities that have a viable, workable process to receive, spend, and track program income may continue managing their own program income/CHDO proceeds. The HOME program will determine the completeness and appropriateness of grantee Program IncometCHDO Proceeds Plans. 3. Developer Fee for CHDOs HOME-certified Community Housing Development Organizations (CHDOs) were created to own, sponsor, and develop affordable housing. The developer's fee is a legitimate source of funding, which will aid the nonprofit's ability to grow and develop affordable housing and continue the organization's operating capacity. The Montana HOME Program proposes to allow CHDOs, applying for a CHDO-eligible activity, J.Q~receive_a~"dev'~p~.fee'! as pa~d_of.a pr~o_ft cost. The amount will depend upon the complexities of the project and other funding sources. For example, projects receiving Low Income Housing Tax Credits (LIHTC) already have access to a developer fee; HOME funds will not duplicate or supplement other sources of funding. Public Review Meetings I encourage all of you to attend one of the public review meetings to discuss the proposed changes to the HOME program and learn more about the Consolidated Plan. Meetings will be held in Billings on Friday, October 11, 2002 and in Boulder on Tuesday, October 22, 2002. See the attached Public Invitation and join us for breakfast in Billings or treats in Boulder! Utility Allowances Section 8 Utility Allowances were issued effective 10/1/2002 to 9/30/2003. Most HOME grantees rely on the Montana Department of Commerce Utility Allowances in determining rent charges for HOME assisted units. The HOME program rents include utilities. If the tenant pays utilities, the utility amount must be subtracted from the allowable rent. Contact the HOME program (841- 2820) to request a copy of the Utility Allowance for your specific location or visit your local HRDC. Staff Update Stacy Pillatzke joined the HOME staff as program Accountant in June 2002 and has taken on the arduous task of updating past HOME records regarding audit compliance and Program Income/CHDO Proceeds. Stacy is also responsible for tracking and monitoring "match" funds and approving the Annual Certification of Income and Affordability Monitoring reports. Please join me in welcoming Stacy to the HOME program. Montana Housing Partnerships Conference 2002 "Achieving the American Dream" is the theme for the Housing Conference scheduled October 9- 11. All persons interested in affordable housing are encouraged to attend this worthwhile conference. See the attached sheet for additional information and registration. Montana Housing Partnership Conference 2002 "Achieving the American Dream" Dates: Location: Presenters: Wednesday, October 9th through Friday, October 11th, 2002 Sheraton Billings Hotel, 27 North 27~h Street in the heart of Downtown, Billings, Montana. A full slate of knowledgeable and experienced panelists exploring various housing issues and related subjects of concern to lenders, developers, realtors, amhitects, economic development professionals City & County officials, State & Federal program operators, nonprofit organizations, Legislators, Iow-income advocates, and other community builders. Pre-registration required. For more information and a Registration Packet send - Name, Organizationl Addres~i Phone Number, Email Address to Mr. Joe Burst at BurstJ(~ci.billin.qs.mt.us or call 406 657-3045 or contact Mr. Casey Joyce at iovce~biaskyeda.org call 406 256-6871, x#241. "Early registrations" must be received by September 25, 2002. PUBLIC INVITATION ANNUAL ACTION PLAN CITIZEN REVIEW MEETING You are invited to attend one of two community meetings being held in October 2002. The purpose of the meetings is to receive comments on the proposed Annual Action Plan that begins on April 1, 2003. The Action Plan is the application for access to federal housing funds totaling over $13 million for the Community Development Block Grant, Home Investment Partnerships, and Emergency Shelter Grant programs. The first meetings will be held in Billings on Friday, October 11, 2002 from 7:15 to 8:45 a.m. (FREE continental breakfast provided) in conjunction with the Montana Housing Partnership Conference at the Billings Sheraton Hotel, 27 West 27th, Billings, The second meeting will be held in Boulder on Tuesday, October 22, 2002 from 7:00 to 8:30 p.m. (refreshments provided) at the Jefferson High School, 312 S. Main, Boulder, Montana.