HomeMy WebLinkAboutR-1994-007 Hope III Program•
RESOLUTION NO R-94-7
A RESOLUTION authorizing and directing the City Manager and the City
Clerk of Yakima to execute an agreement with the
Department of Housing and Urban Development for
funding for a Hope III Program.
WHEREAS, the United States Department of Housing and Urban
Development has funds available to Yakima in the amount of $1,061,000 to
assist its citizens in purchasing single family properties held by federal, state,
or local governments, and
WHEREAS, the City Council of the City of Yakima deems it to be in
the best interests of the City that it enter into an agreement for funding for the
purpose mentioned above, now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA.
The City Manager and City Clerk of the City of Yakima are hereby
authorized and directed to execute the attached agreement with the United
States Department of Housing and Urban Development for funding in the
amount of $1,061,000 for the Hope III Program.
25th January
ADOPTED BY THE CITY COUNCIL THIS day of ,1994.
ATTEST
•
e c_, vim -
City Clerk
04-t 4 7b
Mayor
HOPE FOR HOMEOWNERSHIP OF SINGLE FAMILY HOMER PROGRAM
(HOPE 3)
IMPLEMENTATION GRANT AGREEMENT
This Grant Agreement is made by and between the United
States Department of Housing and Urban Development ("HUD") and
the city of Yakima (the "Recipient"), for HOPE 3 Implementation
Grant Number H3-93WA0001-I-A.
This Agreement is authorized by Subtitle C of Title IV of
the National Affordable Housing Act, Pub. L. 101-625, as amended
and codified at 42 U.S.C. 12891, et seq. (the "Act"). The
purpose of this Agreement is to set forth the terms and
conditions under which HUD will provide Federal financial
assistance to the Recipient to carry out a HUD -approved HOPE 3
homeownership program under the Act. As used herein, the terms
"grant" or "grant funds" refer to the Federal funds provided by
HUD under this Agreement. This Agreement will be governed and
controlled by the following, as they may be amended from time to
time: the Act and the HOPE 3 regulations codified at 24 CFR Part
572 (hereafter collectively referred to as the "Regulations").
The Recipient's application submissions, including the
certifications and assurances and any documentation required to
meet any grant award conditions, and including any amendments
made in accordance with this Agreement and after the effective
date hereof, are hereby incorporated in this Agreement as finally
approved by HUD (hereafter referred to as the "Approved
Application"). Unless the context otherwise requires, a
reference to this Agreement herein shall be deemed to include the
Act, the Regulations, and the Approved Application.
After execution of this Agreement on behalf of the
Department in the space provided below, HUD will, subject to the
terms of this Agreement, provide grant funds in the total amount
of $1,061,000 (HUD's total grant obligation) for the
homeownership program under the Approved Application.
By execution of this Agreement on its behalf in the space
provided below, the Recipient agrees to carry out its
homeownership program on a timely basis and otherwise in
compliance with the Act, the Regulations, the Approved
Application (except as otherwise specifically permitted by this
Agreement), and any other applicable Federal laws, regulations,
and requirements (including record-keeping requirements). The
Recipient agrees to assure, and to accept responsibility for,
such compliance by any other entities to which it makes grant
funds available for, or which it otherwise allows to participate
in, the homeownership program covered by this Agreement. The
Recipient agrees to assure that not less than thirty-three
percent (33%) of HUD's total grant obligation is provided for
eligible matching contributions for the homeownership program
under this Agreement (hereafter referred to as the "total match
required").
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The Approved Application (including Exhibit 6: Program
Budget) may be amended only with the prior written approval of
HUD, except as otherwise provided in this Agreement. If HUD's
prior written approval of an amendment is required, the Recipient
shall attach the proposed revisions to the applicable pages of
the Approved Application to a cover letter addressed as
required below for notifications to HUD and signed by the
Recipient's official representative for this grant. HUD may
approve or disapprove the proposed amendment by letter from the
Director of the CPD Division (or higher level official) in the
applicable HUD office. In considering proposed amendments to the
Approved Application, HUD shall review, among other things,
whether the amendment would have affected the ranking of the
application in the year it was approved sufficiently to have
resulted in the application not ranking high enough for funding,
whether a new certification of consistency with the CHAS will be
required for approval of the amendment, and whether the amendment
is otherwise consistent with this Agreement.
The Recipient shall at all times maintain an up-to-date copy
of its Approved Application,including all amendments approved in
writing by HUD, and any other amendments it has implemented, in
its files and available for audit or inspection by duly
authorized representatives of HUD or the Comptroller General of
the United States.
Expenditures of grant funds, or HUD recognition of matching
contributions, which do not meet the criteriain this paragraph
for permitted variances from Exhibit 6: Program Budget of the
Approved Application (hereafter called "Approved Budget") shall
require HUD's prior written approval of an amendment to the
Approved Application. To determine whether a budget variance is
permitted hereunder, "base amounts" for budget lines one (1.)
through fifteen (15.) must be calculated by adding the sum of
columns A, B, and C for those lines in the Approved Budget. The
"base amounts" for lines 16.(a) through (e) are the amounts in
column C of the Approved Budget for each of those lines.
Permitted budget variances hereunder include any expenditures of
grant funds or any matching contributions which:
1. are greater or lesser than the base amount for any
budget line by a cumulative amountover the entire
grant period of not more than twenty percent per line,
or $20,000, whichever is greater;
2. do not increase HUD's total grant obligation;
3. do not decrease the total match required;
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4. do not increase the grant funds expended or match
amounts credited for administrative costs (budget line
nineteen (19.)) beyond the maximum amounts permissible
under the Act and the Regulations, and
5. are otherwise in compliance with this Agreement
(including the Approved Application together with any
amendments approved by HUD, or which may be made by the
Recipient without HUD's prior written approval, under
this Agreement).
The Recipient shall have no obligation under this Agreement
to assure that the Other Contributions shown in Column D or line
seventeen (17.) of the Approved Budget are actually made,
provided that the resulting homeownership program does not
require the activities that were to be funded by such
contributions to comply with the Act and the Regulations or to
support the ranking of the Approved Application, so that it would
continue to rank high enough to receive funding in the year it
was approved.
Programmatic amendments to the Approved Application deemed
minor or insignificant by HUD do not require HUD's prior written
approval, provided that they otherwise comply with this Agreement
and do not require HUD's prior written approval of an amendment
to the Approved Budget. The following are some specific examples
of amendments deemed significant by HUD, and which require HUD's
prior written approval: any change in the geographic area served
by the program; any change in the Recipient entity; any change in
the form of matching contributions committed to the program; any
change in the activities to be undertaken using sale or resale
proceeds; or any change in the time periods described in the
Approved Application for acquisition of properties, transfer of
ownership interests or lease -purchase interests to homebuyers,
and completion of the program.
The Recipient agrees not to undertake or assist acquisition
or rehabilitation activities with respect to any eligible
property until HUD approval under applicable environmental
requirements, including 24 CFR 50, is received.
Under the Regulations and the HOPE 3 application package,
the Approved Application may identify by name one or more
entities, in addition to the Recipient, which will have a general
role in administering one or more activities under the
homeownership program, including (but not limited to) a private
nonprofit organization cooperating with a public body -applicant,
an entity that will acquire title to eligible properties and
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transfer ownership interests therein to eligible families, or an
entity which will receive and use the proceeds of sales or
resales of eligible properties. The Recipient is not required to
comply with 24 CFR 85.36, or OMB Circular A-110, Attachment 0, as
applicable, in order to select the entities so specified in the
Approved Application, to the extent that:
1. the entity is carrying out, its responsibilities
described in the Approved Application;
2. the entity has a written agreement with the Recipient
describing its duties, which does not provide for
compensation beyond reimbursement for the entity's
direct and indirect costs under OMB Circular A•-87, or
OMB Circular A-122, as applicable;
3. the entity is carrying out: its duties with its own
staff or through contractors procured in accordance
with 24 CFR 85.36 or OMB Circular A-1.10, Attachment 0,
as applicable, and
4. the entity's duties include material duties in addition
to those traditionally provided by contractors (e.g.,,
property management, legal services, title services,
appraisal services, accounting, construction, etc.).
The Recipient shall obtain HUD's prior written approval of
an application amendment before substantially revising the duties
of any such entity from those described in the Approved
Application, or selecting another entity to perform those duties.
A default under this Agreement shall consist of any use of
grant funds other than as authorized by this Agreement, any other
noncompliance with this Agreement deemed material by HUD, or any
misrepresentation or omission in the applications submissions
which, if known to HUD, would have resulted in this grant not
being provided. If HUD determines that the Recipient is in
default, HUD will give the Recipient notice of this determination
and the corrective or remedial actions proposed by HUD to cure
the default or mitigate its effects,, to the extent possible, and
to prevent a continuation or recurrence of the default (the
"initial notice of default") . Except as provided in the next
paragraph hereof, the Recipient shall have an opportunity to
demonstrate, within the time prescribed by HUD, and on the basis
of substantial facts and data, that it is not in default, or that
the proposed corrective or remedial action is inappropriate,
before corrective or remedial actions are implemented after an
initial notice of default. Corrective or remedial actions that
HUD may instruct the Recipient to undertake pursuant to an
initial notice of default include, without limitation:
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1. preparing and following a schedule of actions and/or a
management plan for properly completing the approved
activities affected by the default;
2. canceling or revising the affected activities prior to
expending grant funds for them, revising the grant
budget as necessary, and substituting other eligible
activities;
3. discontinuing draws under the C/MI System, and not
incurring further costs, for the affected activities;
4. reimbursing its HOPE 3 program account in the amount
not used in accordance with this Agreement (thereafter,
the Recipient may reuse the amount of the funds repaid
for eligible activities, to the extent otherwise
permissible under this Agreement), and
5. making additional matching contributions in
substitution for contributions not in compliance with
this Agreement and/or submitting to HUD acceptable
evidence that matching contributions sufficient to meet
the total match required under this Agreement will be
made, before additional draws are made.
HUD may implement the corrective or remedial actions for
default described in this paragraph if HUD determines that: (i)
the Recipient is not complying with the corrective or remedial
actions agreed upon with the Recipient following an initial
notice of default, (ii) the Recipient is in default and may
continue to expend grant funds contrary to this Agreement unless
HUD takes immediate action, or (iii) for any other reason,
corrective or remedial actions by the Recipient may not be
effective to cure a default and prevent its continuation or
recurrence. Effective on the date specified in HUD's notice of
default to the Recipient, HUD may implement the following
additional corrective and remedial actions under this paragraph:
1. changing the method of payment under the C/MI System
from an advance to a reimbursement basis;
2. suspending the Recipient's authority to make draws
under the C/MI System for affected activities for the
period specified in HUD's notice to the Recpient,
pending action to cure the default and prevent further
default by the Recipient, or final remedial action by
HUD;
(5
3. reducing (deobligating) the grant in the amount
affected by the default, including failure to furnish.
matching contributions in the required amount;
4. deobligating up to the entire approved grant amount, as
HUD determines appropriate, if the Recipient has failed
to provide at least seventy (70) percent of the number
of homeownership opportunities specified in the
Approved Application;
5. terminating the grant as to all further activities and
initiating close-out procedures;
6. taking action against the Recipient under 24 CFR 24 and
Executive Order 12549 with respect to future HOPE 3,
HUD, or Federal grant awards; and
7. taking any other remedial action legally available.
If the amount of grant funds which has been disbursed under
the C/MI System on account of this grant exceeds the amount
finally determined by HUD to ]be authorized under this Agreement
(including any deobligation authorized under this Agreement), the
Recipient shall repay such excess amount to HUD, for repayment to
the HOPE 3 appropriation account. The Recipient shall have no
right to reclaim or reuse such excess amount.
Except as may be otherwise specifically provided in the HOPE
3 final rule or this Agreement, closeout of this grant shall be
subject to 24 CFR 85, Subpart D. No delay or omission by HUD in
exercising any right or remedy under this Agreement shall impair
HUD's ability to exercise such right or remedy or constitute a
waiver of, or acquiescence in, any Recipient default.
HUD notifications to the Recipient under this Agreement ;may
be addressed to the Recipient's address as stated in the Approved
Application, unless the Recipient otherwise notifies HUD in
writing. Recipient notifications to HUD shall be to the Director
of Community Planning and Development in the HUD Office to which
the Application was submitted., unless the Recipient is otherwise
notified in writing by HUD. The Recipient's rights under this
Agreement may not be assigned without the prior written approval
of HUD. This Agreement constitutes the entire Agreement between
the Recipient and HUD, and it may not be amended except in
writing and executed by authorized officials of both HUD and the
Recipient.
] [Check if applicable.] This Agreement is subject to the
attached Special Conditions.
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The effective date of this Agreement shall be the date of
HUD execution set forth below. On or after the effective date,
the Recipient may incur costs and receive disbursements of grant
funds in accordance with this Agreement.
This Agreement is hereby executed on behalf of the parties
as follows:
UNITED STATES OF AMERICA
Department of Housing and Urban Development
BY:
onn
Peters
gional Director
Offi e •f Community Planning
and Development
(Title)
FEB 9 1994
RECIPIENT
BY:
(Date) *
City of Yakima
(Legal me of Recipient Entity)
(Signatutho ized Official)
City Manager
(Title)
/- 7- (L/
Attest:
(Date)
GI/'(ocC/o2g3
[Employer Identification Number (EIN)
of Recipient Entity]
0.tu K e-eLvr..��
City Clerk
arr coaruaa Mo. q q "
* This date is considered the effective date of grant agreement.
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 1 I
For Meeting Of 1-25-94
ITEM TITLE: Resolution Authorizing City Manager to Sign HOPE III Agreement
SUBMITTED BY: Glenn J. Valenzuela, Director of Community & Economic Developtnt
CONTACT PERSON/TELEPHONE: GLENN J. VALENZUELA 575-6113
SUMMARY EXPLANATION:
The City has been notified by the United States Department of Housing and Urban
Development of its successful HOPE III application in the amount of $ 1,061,000. This
application represents our continued success in the Housing arena. The City is the only
repeat award in the nation. The attached resolution authorizes the City Manager and City
Clerk to execute the appropriate agreements with the Department of Housing and Urban
Development. A program summary and agreement is attached for Council information.
Resolution x Ordinance_ Contract _ Other (Specify)
Funding Source
APPROVAL FOR SUBMITTAL:
City Manager
STAFF RECOMMENDATION : Approve resolution and authorize City Manager to execute
agreements.
BOARD RECOMMENDATION: The Council approved resolution 93-89 authorizing
application for the HOPE III program on August 24, 1993.
COUNCIL ACTION: Resolution No. R-94-7
CITY OF YAKIMA
OFFICE OF HOUSING AND NEIGHBORHOOD CONSERVATION
HOPE #3 PROGRAM SUMMARY - 93/94
'HOPE 3" proposes to continue a homeownership program that not only
offers affordable first time homeownership for low/moderate income
families, but saves dwelling units from the community's housing market
designated for demolition or removal.
The program is designed to accept donations of proposed housing units
deemed for demolition or removal because of public or private expansion.
Block Grant and Washington State Housing Assistance Program Funds will
be used to purchase the lots. A combination of specialty contractors and
volunteers will be doing the rehabilitation work. Proposed federally
acquired defaulted homes will use the same rehabilitation concept.
Approximately twenty homes will be incorporated into the program to
provide first time homeownership opportunities to community families
with income levels below 80% and above 50% of the federal median income
guidelines.
Families will be selected from an established waiting list comprised
primarily from the previous Hope 3 waiting list. Each family will be
prequalified and counseled on housing affordability and program
requirements. All families will be required to commit 300 hours of work
in the home rehabilitation efforts in lieu of a down payment. They will
also be financially responsible for the first year property tax and
insurance. Repayment of the moving costs and rehabilitation will be in
monthly installments with the land being deferred from repayment until
sale or title transfer. Thirty percent of their gross monthly income will
be used to pay utilities, taxes, insurance and housing payment costs.
Applicants must be a first time homebuyer, have no bankruptcy or felony
convictions with -in three years, no credit lien, collection or judgements.
The established area for this project will be east of 16th Avenue within
the city limits. For the past sixteen years, this section of the city has
been used as an urban renewal area and has the highest number of low
income families, minorities and oldest housing stock.
U.S. Departmen' iousing and Urban Development
COMMUNITY PLANNING AND DEVELOPMENT
Special Attention of:
Regional Administrators
Field Office Managers
All Environmental Officers
Regional Directors for CPD
CPD and HM Division Directors
All HOPE 3 Program Coordinators
Notice CPD -93-24
Issued. July 28, 1993
Expires. August 3, 1994
Cross References:
Subject Environmental Policy for Implementation Grants
Approved under the HOPE Single Family Homes Program
Extension of CPD Notice 92-22
This Notice extends the provisions of Notice CPD -92-22 (originally
issued August 3, 1992) through August 3, 1994.
AUG 2 4 1993
CGHH Distribution W-3-1, W-1, R-1, R-2, R-3-1 (CPD, FHEO, H), R-6, R-6-2, R-7, R-7-2, R-9, 063,
Special (CPD Regional and Field Office Directors), (Regional and Field
Environmental Officers)
Previous Editions Are Obsolete
HUD 21 B(3-30)
GPO 3-t-_
U. S. Department of Hous' -q and Urban Development
Community Planr, and Development
Special Attention of:
Regional Administrators
Field Office Managers
All Environmental Officers
Regional Directors for CPD
CPD and HM Division Directors
All HOPE 3 Program Coordinators
Notice CPD -92-22
Issued: August 3, 1992
Expires: August 3, 1993
Cross References: § 745(e) Of Appendix C
to 24 CFR Subtitle A
Subject: Environmental Policy for Implementation Grants
Approved under the HOPE Single Family Homes Program
I. Introduction
A. Purpose
This Notice specifies the environmental threshold and documentation
requirements to be followed by HUD Field Offices for Implementation Grants
under the HOPE for Homeownership of Single Family Homes Program (hereafter,
HOPE 3 Implementation Grants).
The Notice explains the manner in which recipients of HOPE 3
Implementation Grants, prior to undertaking "property acquisition and rehabilitation
activities," are to submit to HUD Field Offices property -specific or neighborhood -
specific information so that HUD may assure conformance with requirements related to
the environment. Definition: "property acquisition and rehabilitation activities"
means the recipient's commitment or expenditure of any HOPE 3 funds or match
contributions for acquisition (either by the recipient or the homebuyer) and/or
rehabilitation (i.e., any physical change to the property).
HUD Field Offices shall provide a copy of this Notice to all recipients of
HOPE 3 Implementation Grants with the grant approval letter. Field HOPE 3 Program
Coordinators assisted by Environmental Officers shall provide assistance to recipients
and their staff to ensure full understanding and implementation of this Notice. This
Notice alerts recipients "upfront" of the environmental criteria important in the selection
of properties free of major hazards and problems, irrespective of whether the source
agency is HUD, RTC, VA, FmHA, or a State or local agency.
COHH: Distribution: W-1, W-3-1, R-1, R-2, R-3-1, (CPD, FHEO, H), R-6, R-6-2, R-7, R-7-2, R-9, 063,
Special (CPD Regional and Field Office Directors), (Regional and Field
Environmental Officers)
Previous Editions are Obsolete
HUD 218(3-80)
GPO 871 902
This Notice contains special procedures only for the HOPE 3 Implementation
Grant program and does not affect the environmental procedures for any HUD Single
Family Property Disposition (SFPD) sales activities or origination of mortgage insurance
for the acquisition of existing single family homes. For HUD -owned properties, only data
that is readily available to the HUD Housing SFPD staff will be provided to the recipient.
Requirements contained in this Notice are either statutory or regulatory. The
following are statutory: coastal barrier resources, historic property, floodplain
management (Executive Order), and flood insurance protection. The following are
regulatory: industrial hazards, contaminated sites, airport clear and accident potential
zones. These statutory and regulatory requirements apply to HUD approval of
Implementation Grants for rehabilitation and acquisition activities authorized under
HOPE 3 Program.
B. Authority
The authority for this policy is set forth in § 415(b)(20) and 745 of the amended
HOPE 3 Program Guidelines, Appendix C to 24 CFR Subtitle A (hereafter, the Program
Guidelines). § 745(e) of the Program Guidelines authorizes the publication of this
Notice.
For HUD approval of release of HOPE 3 funds for proposed acquisition and
rehabilitation of existing single-family (1 to 4 unit) homes (including the homebuyer's
direct purchase of a property from a source agency with HOPE 3 financial assistance),
§§ 415(b)(20) and 745 of the Program Guidelines provide respectively for the recipient's
HOPE 3 environmental certification and for HUD's environmental procedures and
standards, discussed below.
24 CFR 50.20(q)(2) of HUD's environmental regulations allows a categorical
exclusion from the environmental assessment requirenient of the National Environmental
Policy Act (NEPA) for HUD approval of HOPE 3 Implementation Grants. However, it
requires that HUD comply with the applicable Federal environmental laws and authorities
listed in 24 CFR 50.4, which are the subject of this Notice.
II. Responsibility
A. Recipient's environmental certification
The recipient's responsibility as set forth in § 415(b)(20) of the Program
Guidelines is to include in its application a certification that the applicant agrees that it
will: (1) supply HUD with information necessary for HUD to perform any necessary
environmental review of each property; (2) carry out mitigating measures required by
HUD to comply with the environmental laws and authorities at 24 CFR 50.4 or select
alternate eligible property; and (3) not acquire or otherwise carry out any physical
program activities (i.e. acquisition or rehabilitation) with respect to any eligible property
until HUD approval is received.
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B. Recipient's threshold reviews
A threshold review is an examination of certain information about a specific
property or neighborhood for the purpose of determining whether certain Federal
environmental laws and authorities apply. The recipient's responsibility, as set forth in
§ 745 of the Program Guidelines, is to make the threshold reviews itself or with assistance
from State or local governments or qualified persons, or to refer the property to HUD for
threshold review. Where the recipient makes the threshold review itself, it shall submit
the result to HUD. If a recipient chooses not to make the threshold reviews, it shall
submit information to assist HUD to make the review.
In submitting threshold data to HUD, recipients may use the sample format (see
Attachment B) or develop an equivalent. Recipients who find it practicable and prefer to
supply the necessary information in a submission covering two or more properties at the
same time or covering a neighborhood with several properties, may do so.
Recipients may use approved administrative funds from the HOPE 3
Implementation Grant to pay for costs incurred after the effective date of the
HOPE 3 grant agreement for preparing the formats, the rehabilitation worksheets, and
related environmental analyses. Recipients are prohibited from committing or
expending grant funds or match for acquisition and rehabilitation activities (for
definition, refer to Paragraph I.A. above), until HUD approval is received for the
specific property or neighborhood.
C. HUD's responsibility for threshold determinations
and for the performance of environmental reviews
Under § 745 of the Program Guidelines, before any amounts under this program
are used to acquire or rehabilitate an eligible property, HUD shall determine whether the
proposed activities trigger applicable thresholds for Federal environmental laws and
authorities. These may apply when the property is: (1) located within designated coastal
barriers; (2) listed on, or eligible for listing on, the National Register of Historic Places;
or is located within, or adjacent to, an historic district; (3) located near hazardous
operations handling fuels or chemicals of an explosive or flammable nature;
(4) contaminated by toxic chemicals or radioactive materials; (5) located within a runway
clear zone at a civil airport or within a clear zone or accident potential zone at a military
airfield; or (6) located within a special flood hazard area.
If HUD determines on the basis of the recipient's threshold review or its own
threshold review that one or more of the thresholds are exceeded, HUD shall conduct an
environmental review of that issue and, if appropriate, establish mitigating measures that
the recipient shall carry out for the property unless the recipient decides to select an
alternate property. The applicable threshold and documentation requirements are
contained in this Notice.
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D. Field Responsibility
Field Office Managers, assisted by Field Environmental Officers, are responsible
for overseeing the performance of environmental procedures under §§ 415(b)(20) and 745
of the Program Guidelines. Regional Administrators, assisted by Regional Environmental
Officers, are to assure that HOPE 3 prograirns and activities within the Region are carried
out in a manner consistent with the environmental procedures under §§ 415(b)(20) and
745.
E. Field HOPE 3 Program Coordinators
Field HOPE 3 Program Coordinators have the lead responsibility for carrying out
this .notice and are to:
(1) review the :recipient's data submission and if complete, determine if the various
Federal environmental laws and authorities apply;
(2) if the laws and authorities apply, perform the necessary review and document
compliance on HUD Form 4128.1, which is available from the Field Environmental
Officer;
(3) within five working days of the Hlls receipt of the recipient's data
submission, notify the recipient by letter from the Director for Community Planning and
Development (CPD), or his/her deputy, indicating one of the following: (To form letters,
refer to Attachment A)
(a) HUD approval, including any mitigating measures to be undertaken by the
recipient,
(b) HUD disapproval and recommendation that the recipient select an alternate
eligible property, or
(c) HUD request for additional data or notification that additional time will be
needed. by the Field Office to comply with the Federal laws and authorities determined to
be applicable to a specific property; and
(4) monitor compliance with mitigation measures, if any are required.
HOPE 3 Program Coordinators who need advice or assistance concerning the
implementation of this Notice should contact the Field Environmental Officer or, in
bis/her absence, the Regional Environmental Officer.
ill. Applicable Federal environmental laws and authorities
HUD has determined that the following Federal environmental laws and authorities
set out in 24 CFR 50.4 may be applicable to its approval of specific properties for
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acquisition or rehabilitation under HOPE 3 Implementation Grants. Recipients may subrnit
evidence that a particular environmental law or authority is not applicable in their
identified neighborhood and this will suffice for all properties selected in that
neighborhood for that particular law or authority. Upon review and acceptance of the
documentation submitted by recipients, HUD will undertake any required processing and
will advise recipients in writing of HUD's determination of compliance with Federal
environmental laws and authorities of 24 CFR 50.4 and will authorize property specific
activities.
One letter from a "qualified data source" can provide threshold information for
several of the following environmental laws and authorities. A "qualified data source"
may include: (a) the source agency offering the property for sale or donation, which may
have some information available in its property profile (for example, HUD SAMS) and
real estate appraisal report; (b) any Federal, State or local agency with expertise or
experience in environmental protection (e.g., the local land planning agency; the State
environmental protection agency; State Historic Preservation Officer); (c) professional
environmental consultants; or (d) any other source qualified to provide reliable
information on the particular subject. Recipients are encouraged to obtain outside
information at the earliest possible stage prior to (as in case of neighborhood -specific data)
or at the time of property offering by the source agency.
1. Coastal Barrier Resources:
Threshold: Recipients are prohibited by Federal law from using Federal financial
assistance for properties in their homeownership programs, if the properties are located
within designated coastal barriers of the Atlantic Ocean, Gulf of Mexico, and the Great
Lakes. The Coastal Barrier Resources Act, as amended, is cited in § 501(b) of the
HOPE 3 Program Guidelines.
Documentation: Recipients are to select either A or B. (See Attachment B for
reporting results.)
A. The recipient states that its homeownership program operates in
neighborhoods that do not contain any shores along the Atlantic Ocean, the Gulf of
Mexico, or the Great Lakes.
B. For the recipient whose homeownership program operates in neighborhoods
that do contain shores along the Atlantic Ocean, the Gulf of Mexico, or the Great Lakes,
the recipient provides HUD with a finding made by a qualified data source (see
Paragraph III.A. above) stating that the recipient's proposed property is not located
within a designated coastal barrier by citing the map panel number of the official maps
issued by the Department of the Interior on the basis of which the finding was made.
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2. The National Register of Historic Places
Threshold: Only if a property is proposed for rehabilitation is HUD required to make a
determination whether the property is: (a) listed on or eligible for listing on the National
Register of Historic Places; (b) located within or directly adjacent to an historic district;
or (c) a property whose area of potential effects includes an historic district or property.
Historic properties and districts are subject by law to special protection and historic
preservation processing which HUD must perform to comply with the regulations of the
Advisory Council on Historic Preservation (36 CFR part 800). Recipients seeking
information from the State Historic Preservation Officer (SHPO) need to allow sufficient
time to obtain the information from the SHPO. Recipients may wish to make special
arrangements with the SHPO for rapid review of the recipient's proposed neighborhoods,
or properties (prior to offer by the source agency, where this is practicable). For
properties determined to be historic properties, HUD will require 30 to 90 days in most
cases to perform the required processing. ][n these cases, recipients need to make special
arrangements with the source agency to hold the property for the recipient, if the recipient
chooses to use the historic property in its homeownership program.
Documentation: Recipients are to select one of the following. (See Attachment is for
reporting results.)
A. The recipient provides HUD with a finding made by the State Historic
Preservation Officer (SHPO) stating that the neighborhoods in which the recipient's
homeownership program operates do not contain any historic properties within the above
stated threshold criteria.
B. The recipient does not propose any financial assistance for rehabilitation of the
property.
C. The recipient provides HUD with a finding made by State Historic
Preservation Officer (SHPO) stating that the property proposed by the recipient for use in
its homeownership program is not a historic property within the threshold criteria.
D. The recipient provides HUD with a finding made by the S][TPO stating that the
property proposed by the recipient for use in its homeownership program is a historic
property within the threshold criteria and that the recipient's rehabilitation plans are
acceptable.
E. The recipient provides HUD with a copy of a letter from the SHPO stating any
reasons for not being able to provide the recipient with the requested information and
findiing.
6
3. Locations near hazardous industrial operations handling explosive or
flammable fuels or chemicals:
Threshold: Properties that are located near hazardous industrial operations handling fuels
or chemicals of an explosive or flammable nature are subject to HUD safety standards
(24 CFR 51, Subpart C). However, under the HOPE 3 program, these standards would
apply only if recipients propose to increase the density of a residential structure by
increasing the number of families housed or (for vacant residences) that could have been
housed. In the case of tanks containing common liquid fuels, the requirement for an
acceptable separation distance (ASD) calculation only applies to storage tanks that have a
capacity of more than 100 gallons.
Documentation: Recipients are to select one of the following. (See Attachment B for
reporting results.)
A. The recipient does not propose to increase the density of a residential structure
by increasing the number of families housed or (for vacant residences) that could be
housed.
B. The recipient proposes to increase the density of the property and provides
HUD with a finding made by a qualified data source (see Paragraph III.A. above) stating
that the recipient's proposed property is not located within the immediate vicinity of
hazardous industrial operations handling fuel or chemicals of an explosive or flammable
nature by citing data used and the maps used.
C. The recipient proposes to increase the density of the property and provides
HUD a finding made by a qualified data source stating: (i) that the proposed property is
located within the immediate vicinity of hazardous industrial operations handling fuel or
chemicals of an explosive or flammable nature; (ii) the type and scale of such hazardous
industrial operations; (iii) the distance of such operations from the proposed property; and
(iv) a preliminary calculation of the acceptable separation distance (ASD) between such
operations and the proposed property and recommend whether it is safe to use the
property in accord with 24 CFR Part 51, Subpart C.
4. Sites contaminated with toxic chemicals and radioactive materials:
Threshold: Under HUD policy, as described in HUD Notice 79-33 (Policy Guidance to
Address the Problems Posed by Toxic Chemicals and Radioactive Materials), HUD will
not approve the provision of financial assistance to residential properties located on
contaminated sites. Sites known or suspected to be contaminated by toxic chemicals or
radioactive materials include but are not limited to sites: (i) listed on an EPA Superfund
National Priorities List or equivalent state list; or (ii) with an underground storage tank
(which is not a residential fuel tank).
Documentation: Recipients are to select either A or B. (See Attachment B for
7
reporting results.)
A. The recipient provides HUD with a finding made by a qualified data source
(see Paragraph III. A. above) stating that the recipient's homeownership program operates
in neighborhoods that do not contain any sites known or suspected to be contaminated
with toxic chemicals and radioactive materials.
B. The recipient provides any site contamination data in its letter to the Field
Office for HUD's evaluation of contamination and/or suspicion of any contamination of a
property proposed for use in the recipient's homeownership program.
5. Locations in the vicinity of airports and airfields:
Threshold: HUD policy as described in 24 CFR 51, Subpart D applies to residential
properties located within clear zones and in the case of major rehabilitation, accident
potential zones. Major rehabilitation of any residential prolocated on a clear zone
site is prohibited. Rehabilitation is considered "major" when the estimated cost of
rehabilitation is 75 percent or more of the property value after rehabilitation. HUD
financial assistance in a clear zone is allowed for properties proposed for acquisition with
or without minor rehabilitation. However, upon HUD approval of a property in a clear
zone, recipients shall provide HUD with an assurance: (a) that the recipient will give
advance written notice to the prospective homebuyer in accord with 24 CFR 51.303(a)(3);
and (b) that a copy of the recipient's notice signed by the prospective homebuyer will be
placed in the property file (for a sample notice, see Attachment C). The written notice
informs the prospective homebuyer of: (i) the potential hazards from airplane accidents
which studies have shown more likely to occur within runway clear and clear zones than
in other areas around the airport/airfield; and (ii) the potential acquisition by
airport/airfield operators, who may wish to purchase the property at some point in the
future as part of a clear zone acquisition program.
For properties located within the accident potential zone (APZ), HUD shall
determine whether the use of the property is generally consistent with Department of
Defense "Land Use Compatibility Guidelines for Accident Potential Zones."
Documentation: Reciipients are to select either A or B. (See Attachment B for
reporting results.)
A. The recipient states that its homeownership program operates in neighborhoods
that do not contain a civil airport or military airfield and that are not located within 3,000
feet of such airports or airfields; or the recipient states that the property is not located
within 3,000 feet of such airports or airfields.
B. For properties located within 3,000 feet of a civil airport or military airfield,
the recipient provides HUD with a finding from the airport operator stating whether or not
the property is located within a runway clear zone at a civil airport, or a clear zone or
8
accident potential zone at a military airfield. For properties that are located within a
runway clear zone or a clear zone or accident potential zone, recipients who propose to
rehabilitate such a property are to provide HUD with estimates of: (i) the cost of the
proposed rehabilitation, and (ii) the property value after completion of the rehabilitation.
The estimates are to be made in columns #8 and #9 of the format (see Attachment B).
6. Locations in Special Flood Hazard Areas (SFHA):
Threshold: These two authorities apply: (i) Executive Order 11988, Floodplain
Management, and (b) the Flood Disaster Protection Act of 1973.
Executive Order 11988, Floodplain Management: HUD's decisionmaking process
under this Executive Order does not apply to single family properties proposed for
acquisition with or without minor rehabilitation as long as the property is not located
within a floodway or coastal high hazard area. However, under the Order HUD must
avoid, where practicable, financial support for proposed substantial improvement of any
floodprone property. For properties proposed for substantial improvement within SFHA,
HUD will require 30 to 60 days in most cases to perform the required processing.
Definition: "substantial improvement" for fit od hazard purposes means any
rehabilitation which (a) equals or exceeds 50 percent of the market value of the
property before rehabilitation, but excluding the costs for ctrrecting health, sanitary,
and safety code violations, or (b) increases the unit density of the property.
Flood Disaster Protection Act of 1973: Cited in § 501(a) of the HOPE 3 Program
Guidelines, it requires prospective homebuyers of SFHA properties to purchase and
maintain flood insurance protection as a condition of approval of any HUD financial
assistance for proposed acquisition or rehabilitation. When recipients provide loan
assistance to a homebuyer, the insurance shall cover the term and loan amount. When
recipients provide grant assistance to a homebuyer, the insurance shall cover the property
cost (less estimated land cost) and the economic or useful life of the building. For
example, a substantially improved building requires flood insurance coverage for the life
of the building, while for minor rehabilitation such as repairing, weatherizing, or roofing
of a building, recipients may require flood insurance coverage ranging from 5 to 15 years
as deemed feasible. HUD will accept any period within that range that appears
reasonable.
Once HUD has approved a specific property and it is purchased by a homeowner,
the recipient's file for any SFHA property shall contain "proof of purchase" of flood
insurance protection. The standard documentation for compliance is the Policy
Declarations form issued by the National Flood Insurance Program (NFIP) or issued by
any property insurance company offering coverage under NFIP. The insured has its
insurer automatically forward to the recipient, in the same manner as to the insured, an
information copy of the Policy Declarations form, which is used to verify compliance.
The recipient's responsibility ceases when a mortgage loan is approved requiring flood
insurance as condition of loan approval by a lender (other than the recipient), whose
9
responsibility is to assure flood insurance coverage for the loan.
Documentation:: Recipients are to select one of the following. (See Attachment B for
reporting results.)
A. The recipient provides HUD with a finding made by a qualified data source
(see Paragraph M.A. above) that the recipient's homeownership program operates in
neighborhoods that do not contain any Special Flood Hazard Areas (SFHA). The finding
must. provide HUD with the flood map panel number obtained from the official maps
issued by the Federal Emergency Management Agency (FEMA).
B. The recipient provides HUD with a finding made by a qualified data source
(see Paragraph M.A. above) stating that the property is not located within the SFHA.
The finding must provide HUD with the flood map panel number obtained either from the
official maps issued by the Federal Emergency Management Agency (FEMA) or from the
property appraisal report used to make the finding.
C. The recipient provides HUD with a finding made by a qualified data source
that the property is located within the SFHA and as to w hether the property is located
within a floodway or coastal high hazard area. The finding provides HUD with the flood
map panel number obtained either from the official maps issued by FEMA or the property
appraisal report used to make the fmding. For properties that are located within ,SFHA
areas and proposed for rehabilitation with HOPE 3 fluids, recipients must provide HUD
with estimates of: (i) the property value before rehabilitation, and (ii) the cost of the
proposed rehabilitation. The estimates are to be made in columns #7 and #8 of the format
(see Attachment B).
Attaclunents:
A - REPLY TO RECIPIENT REG
DETERMINATION
B - DOCUMENTATION FOR ENV
1' 1
ING LIUD"s
SHOLD
ONMENTAL THRESHOLD REVIEW
C - NOTICE TO PROSPECTIVE BUYERS OF PROPERTIES LOCATED
IN RUNWAY CLEAR ZONES AND CLEAR ZONES
10
Attachment A
REPLY TO RECIPIENT REGARDING HUD's THRESHOLD DETERMINATION
[Type on HUD stationery]
Dear Recipient:
We have reviewed the environmental threshold information which you provided to us in
your letter of (month, day, year) for the Implementation Grant under the HOPE Single
Family Homes Program. Our determination for the property (or neighborhood) listed in
your submission (or foi mat) is as follows:
[Type the appropriate option]
[Option 1: HUD approval]
The following property (or the neighborhood) listed in your submission (or format) does
not exceed any of the thresholds that activate the Federal environmental laws and
authorities. Therefore HUD approves the use of this property (or neighborhood) in your
homeownership program. You may proceed to commit or expend grant funds or match to
undertake property acquisition or rehabilitation activities.
[Option 2: HUD environmental approval with special conditions]
The following property (or the neighborhood) listed in your submission (or format)
exceeds one or more of the thresholds that activate the Federal environmental laws and
authorities, and it was necessary for us to perform a compliance review. We approve the
use of this property (or neighborhood) in your homeownership program. You may
proceed to commit or expend grant funds or match to undertake property acquisition or
rehabilitation activities under the following specified conditions: (explain the specified
conditions).
[Option 3: HUD request for additional information to perform either the threshold
determination or the compliance review, or both]
The following property (or the neighborhood) appears to exceed one or more of the
thresholds that activate the Federal environmental laws and authorities. Therefore, (we
request that you provide the following necessary information so that we may perform the
threshold determination) or (a compliance review is required and significantly more time
will be needed for us to complete this review). You are prohibited from committing or
expending grant funds or match to undertake property acquisition or rehabilitation
activities, until HUD approval is received for the specific property (or neighborhood). If
11
you wish to remove this property (or neighborhood) from further consideration, please call
us as soon as possible. For this property (or neighborhood), the following action is
required (explain action required).
[Option 4: HUD disapproval]
The following property (or the neighborhood) exceeds one or more of the thresholds that
activate the Federal environmental laws and authorities, and for the following reasons
HUD disapproves the use of this property (or neighborhood) in your homeownership
program. You are prohibited from committim, or expending grant funds or match to
undertake property acquisition or rehabilitation activities. For this property (or
neighborhood), the specific reasons for this disapproval are the following: (explain
reasons) .
For further assistance, please phone your HOPE 3 Program Coordinator,
, at
Yours truly,
Director
Community Planning and Development Division
cc:
Field HOPE 3 Program Coordinator
Field Environmental Officer
12
Attachment B
DOCUMENTATION FOR ENVIRONMENTAL THRESHOLD REVIEW
NOTE: In recording the info' illation needed for the threshold review, recipients may use
this format or may develop an equivalent format. The information for completing the
format is to be obtained from a qualified data source (see Paragraph 111.A. of this Notice).
Recipients may use the administrative portions of the HOPE Implementation Grant to pay
for preparing the format, the rehabilitation worksheets, and related analyses. Recipients
are to forward formats, supporting documentation, and request for a threshold
determination in a cover letter to the HUD Field Office addressed to the Director of the
Community Planning and Development Division (Attn: HOPE 3 Program Coordinator).
Recipients are prohibited from committing or expending grant funds or match to
undertake property acquisition and rehabilitation activities (for definition, refer to
Paragraph LA. of this Notice), until HUD approval is received for the specific
property or neighborhood. Refer questions about this notice to the HOPE 3 Program
Coordinator.
Recipients may choose to provide HUD the needed threshold data for a single property,
two or more properties, or for the entire neighborhood. Street addresses must be
provided when threshold data covers individual properties. In general, a map showing the
neighborhood boundary must be provided when threshold data covers the entire
neighborhood.
Section III of this Notice discusses the documentation required for each environmental law
or authority. Section III explains the significance of options A, B, C, D, or E, one of
which the recipient must select to represent its specific threshold documentation for a
particular law or authority. The recipient must indicate that option on the format in the
column provided for the particular law or authority.
Only for sites in clear and accident potential zones and in floodprone areas (respectively
format columns #5 and #6) should recipients provide rehabilitation data. For clear or
accident potential zones sites, complete columns #8 and #9. For flood -prone sites,
complete columns #7 and #8.
HUD will use this threshold information to determine if it is necessary for HUD to
comply with any applicable Federal environmental laws and authorities. Column #10 is to
be completed by the HUD Field Office.
13
Format: Threshold review by neighborhood or property for HOPE 3 Implemetation Grant Program
[To be completed by HOPE 3 recipient, except for column 10]
HOPE Agency Name:
Preparer's Name:
Phone:(Area Code and Number):
City:
1
Coastal
Barriers
Resources
Site
Indicate
below:
A or B
2
Historic
Property
Site
Indicate
below:
A, B, C,
D, or E
3
Industrial
Hazards
Site
Indicate
below:
A, B, or
C
4
Contam-
inated
Site
Indicate
below•
A or B
5
Clear or
Accident
Potential
Zone Site
Indicate
below•
A or B
6
Flood-
prone
Site
Indicate
below:
A, B, or
C
7
Only for
column 6:
Property
Value Be-
fore Rehab
Indicate
below in
thousands
8
Only for
columns
5 or 6:
Rehabil-
itation
Cost
Indicate
below in
thousands
9
Only for
column 5:
Value
After
Rehab
Indicate
below in
thousands
10*
Only
for
HUD
staff:
Mark
below:
1, 2,
3, or
4
State:
Indicate below:
Property address. (If data
is for a
neighborhood, pro-
vide a map showing
boundaries.)
1.
2.
3.
4.
Column 10 is to be completed by HOPE 3 Program Coordinator in HUD Field Office]
Reviewer's determination: Check one of the following and mark in column 10
_Option 1 HUD approval.
Option 2: HUD approval with special conditions.
_Option 3: HUD request for additional information.
_Option 4: HUD disapproval.
Attachment C
NOTICE TO PROSPECTIVE BUYERS OF PROPERTIES LOCATED
IN RUNWAY CLEAR ZONES AND CLEAR ZONES
(In accordance with 24 CFR 51.303(a)(3), this Notice to Prospective Homebuyers must be
given to anyone interested in buying an existing HUD or other source agency property,
which is located in either a Runway Clear Zone at a civil airport or a Clear Zone at a
military installation.)
The property which you are interested in purchasing at (street address, city, state, zip
code) is located in the Runway Clear Zone/Clear Zone for (provide the name of the
airport/airfield, city, state).
Studies have shown that if an accident were to occur it is more likely to occur within the
Runway Clear Zone/Clear Zone than in other areas around the airport/airfield. Please
note that we are not discussing the chances that an accident will occur, only where one is
most likely to occur.
You should also be aware that the airport/airfield operator may wish to purchase the
property at some point in the future as part of a clear zone acquisition program. Such
programs have been underway for many years at airports and airfields across the country.
We cannot predict if or when this might happen since it is a function of many factors,
particularly the availability of funds, but it is a possibility.
We wanted to bring this information to your attention. Your signature on the space below
indicates that you are now aware that the property you are interested in is located in a
Runway Clear Zone/Clear Zone.
Signature of prospective buyer Date
Typed or printed name of prospective buyer
(This Notice to Prospective Homebuyers must be maintained as part of the HOPE 3
recipient file on this action.)
`U.S. Government Printing Office: 1992 — 312-218/60234
14
U.S. Department of Housing and Urban D' ilopment
Washington, D.C. 20410-0000
Offal Business
Penalty for Private Use $300
First -Class Mail
Postage & Fees Paid
HUD
Permit No. G-51