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INTEROFFICE MEMORANDUM
Date: December 17, 2024
To: The Honorable Mayor and City Council
Through: Ronald Burton, City Manager, CPM
From: Pamela Langford, Director of Development Services
RE: PR#24054
Introduction:
This agenda item seeks the City Council's approval to amend the 2021 Home Investment
Partnerships—American Rescue Plan(HOME-ARP)Policies and Procedures Guidelines.
Background:
Resolution 23-282 authorized the city to approve the 2021 HOME-ARP Policies and Procedures.
This amendment will revise the program Guidelines.
Budget Impact:
The resolution will make changes to the 2021 HOME-ARP Policies and Procedures Guidelines.
There is no budgetary impact.
Recommendation:
It is recommended that the City Council approve PR#24054.
PR#24054
November 21,2024-MEE-Grants Management
Page 1
RESOLUTION NUMBER
A RESOLUTION AUTHORIZING THE CITY MANAGER TO AMEND THE 2021
HOME INVESTMENT PARTNERSHIPS — POLICIES AND PROCEDURES
GUIDELINES.
WHEREAS,the American Rescue Plan Act of 2021 appropriated $5 billion to
provide housing services and shelter to individuals experiencing homelessness and other
vulnerable populations; and,
WHEREAS, the Department of Housing and Urban Development previously
allocated $1,000,453 HOME-ARP grant funding to the City of Port Arthur, which were approved
per Resolution#23-074; and,
WHEREAS, the HOME-ARP Policies and Procedures establish the guidelines
for the use of HOME-ARP funds for eligible activities and the required program documentation
in accordance with Notice: CPD-21-10. The Guidelines were approved by Resolution#23-282;
and,
WHEREAS,the HOME-ARP Guidelines are periodically revised to better serve
the HOME-ARP program participants; see Attachment"A."
WHEREAS, the City Council must designate an official to sign all documents
related to the amendment and allocation plan submission.
NOW, THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PORT ARTHUR,TEXAS:
Section 1. THAT the facts and opinions in the preamble are true and correct.
Section 2. THAT the City Manager is authorized to implement the revised
PR#24054
November 21,2024-MEE-Grants Management
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HOME-ARP Guidelines that are attached hereto in substantially the same form as Attachment
Section 3. THAT a copy of the caption of this Resolution be spread upon the
minutes of the City Council.
READ,ADOPTED AND APPROVED this day of
A.D., 2024, at a Regular Meeting of the City Council of the City of
Port Arthur, Texas, by the following vote:
AYES: MAYOR
COUNCILMEMBERS:
NOES:
MAYOR
ATTEST:
SHERRI BELLARD
CITY SECRETARY
APPROVTO FORM:
ROXANN PAIS COTRONEO
CITY ATTORNEY
VEy Fcrl AD N TION:
RONALD BURTON, CPM r )
CITY MANAGER (.
PR#24054
November 21,2024-MEE-Grants Management
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ATTACHMENT "A"
v
CITY OF PORT ARTHUR
HOME-ARP POLICIES AND PROCEDURES
Introduction
The HOME program was created by the National Affordable Housing Act of 1990. The statutory
purpose of the HOME program is "to increase the number of families served with decent, safe,
sanitary, and affordable housing and expand the long-term supply of affordable housing."
Regulations governing HOME are published in 24 CFR Part 92 (Final Rule, published July 24, 2013
as amended (effective August 23, 2013)).
On March 11, 2021, the American Rescue Plan Act of 2021 was signed into law, and on
September 13, 2021 the US Department of Housing and Urban Development (HUD) Community
Planning and Development Division issued Notice CPD-21-10. Notice CPD-21-10 establishes
requirements for HOME-ARP funds appropriated under section 3205 of the American Rescue Plan
Act of 2021 (P.L. 117-2). In addition to Notice CPD-21-10, HUD issued a memorandum describing
waivers and alternative requirements for the HOME-ARP Program.
Subrecipient
A subrecipient is a public agency or nonprofit organization that designs and delivers HOME-ARP
supportive services or programs. A subrecipient is reimbursed for delivering services through
actual program-delivery costs incurred or on a fixed-amount contract. Subrecipient responsibilities
include, but are not limited to:
1. Determining eligibility for HOME-ARP supportive services or programs.
2. Assessing the need for supportive services and developing a housing stability plan with
HOME-ARP qualifying populations.
3. Determining how services will be delivered to HOME-ARP qualifying populations in
accordance with HOME-ARP program requirements (see Notice: CPD-21-10).
4. Delivering services following subrecipient-defined policies and procedures that ensure
compliance with HOME-ARP regulatory requirements.
Amendment to the 2021 HOME-ARP Policies and Procedures Guidelines—PR#24054 presented to the City
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Program Delivery Costs for Supportive Services
Program delivery costs are those that are directly attributable to the delivery of HOME-ARP
supportive services to an identified HOME-ARP supportive services beneficiary and include:
1. The portion of labor, supplies, and materials incurred to directly provide supportive
services to program participants; and
2. The portion of salary and benefits of staff who directly deliver supportive services to
HOME-ARP program participants.
HOME-ARP Qualifying Populations
HOME-ARP funds must benefit individuals and families who meet the definition of a qualifying
population (QP), including veterans and families that include a veteran family member.
Qualifying Population Definitions
To meet the definition of a HOME-ARP qualifying population (QP) in the City of Port Arthur HOME-
ARP program, an individual or family must be homeless or a vulnerable population as defined by
HUD specifically for the HOME-ARP program:
1. Homeless;
2. At risk of homelessness;
3. Fleeing or attempting to flee domestic violence, dating violence, sexual assault, stalking or
human trafficking; or
4. An "other" qualifying population.
Homeless
For the purposes of the HOME-ARP program, homeless means meeting one of the following three
definitions:
1. An individual or family who:
a. Has a primary nighttime residence that is a public or private place not designed for
or ordinarily used as a regular sleeping accommodation for human beings, including
a car, park, abandoned building, bus or train station, airport, or camping ground; or
b. Is living in a supervised publicly or privately operated shelter designated to provide
temporary living arrangements (including congregate shelters, transitional housing,
and hotels and motels paid for by charitable organizations or by federal, state, or
local government programs for low-income individuals);
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c. Is exiting an institution where he or she resided for 90 days or less and who resided
in an emergency shelter or place not meant for human habitation immediately
before entering that institution.
2. An individual or family who will imminently lose their primary nighttime residence,
provided that:
a. The primary nighttime residence will be lost within 14 days of the date of
application for assistance; and
b. No subsequent residence has been identified; and
c. The individual or family lacks the resources or support networks, e.g., family,
friends, faith-based, or other social networks needed to obtain other permanent
housing.
3. Families with children and youth, or unaccompanied youth under 25 years of age, who do
not otherwise qualify as homeless as defined in 1 or 2 above, but who:
a. Are defined as homeless under section 387 of the Runaway and Homeless Youth
Act (42 U.S.C. 5732a), section 637 of the Head Start Act (42 U.S.C. 9832), section
41403 of the Violence Against Women Act of 1994 (42 U.S.C. 14043e-2), section
330(h) of the Public Health Service Act (42 U.S.C. 254b(h)), section 3 of the Food
and Nutrition Act of 2008 (7 U.S.C. 2012), section 17(b) of the Child Nutrition Act of
1966 (42 U.S.C. 1786(b)), or section 725 of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11434a);
b. Have not had a lease, ownership interest, or occupancy agreement in permanent
housing at any time during the 60 days immediately preceding the date of
application for homeless assistance;
c. Have experienced persistent instability as measured by two moves or more during
the 60-day period immediately preceding the date of applying for homeless
assistance; and
d. Can be expected to continue in such status for an extended period of time because
of:
i. Chronic disabilities;
ii. Chronic physical health or mental health conditions; iii. Substance
addiction;
iv. Histories of domestic violence or childhood abuse or neglect;
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v. The presence of a child or youth with a disability; or
vi. Two or more of the following barriers to employment:
1. Lack of a high school degree or General Educational Development
(GED);
2. Illiteracy;
3. Low English proficiency;
4. History of incarceration or detention for criminal activity; 5. A history
of unstable employment.
At Risk of Homelessness
For the purposes of the CITY HOME-ARP program, at risk of homelessness means meeting one of
the following two definitions:
1. An individual or family who:
a. Has an annual income below 30 percent of median family income, adjusted for
household size, for the area, as determined by HUD; and
b. Does not have sufficient resources or support networks, e.g., family, friends, faith-
based or other social networks, immediately available to prevent them from
moving to an emergency shelter or a public or private place not meant for use as a
regular sleeping accommodation by human beings; and
c. Meets one of the following conditions:
i. Has moved because of economic reasons two or more times during the
Sixty (60) days immediately preceding the application for homeless
assistance; ii. Is living in the home of another because of economic hardship;
iii. Has been notified in writing that their right to occupy their current housing
or living situation will be terminated within 21 days after the date of
application for assistance;
iv. Lives in a hotel or motel, and the cost of the hotel or motel stay is not paid
by charitable organizations or by federal, State, or local government
programs for low-income individuals;
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v. Lives in a single-room occupancy or efficiency apartment unit in which there
reside more than two persons or lives in a larger housing unit in which there
reside more than 1.5 people per room, as defined by the U.S.
Census Bureau; or vi. Is exiting a publicly funded institution or system of
care (such as a health-care facility, a mental health facility, foster care or
other youth facility, or correction program or institution).
2. A child or youth who does not qualify as homeless as defined above but qualifies as
homeless because they are:
a. An individual under 18 years of age who cannot live safely with a parent, legal
guardian, or relative and has no other safe alternative living arrangement.
b. An individual who has a primary nighttime residence that provides a temporary
residence for individuals intended to be institutionalized or has a temporary
accommodation for not more than 90 days in the residence of another individual.
Fleeing or Attempting to Flee Domestic Violence, Dating Violence, Sexual Assault, Stalking, or
Human Trafficking
For the HOME-ARP program, this QP includes any individual or family who is fleeing or is
attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human
trafficking. There is no requirement that individuals and families also meet the HOME-ARP
definition of homeless, at risk of homelessness, or "other"qualifying population.
This population includes cases where an individual or family reasonably believes that there is a
threat of imminent harm from further violence due to dangerous or life-threatening conditions
that relate to violence against the individual or a family member, including a child, that has either
taken place within the individual's or family's primary nighttime residence or has made the
individual or family afraid to return or remain within the same dwelling unit.
In the case of sexual assault, this also includes cases where an individual reasonably believes there
is a threat of imminent harm from further violence if the individual remains within the same
dwelling unit that the individual is currently occupying or the sexual assault occurred on the
premises during the 90-day period preceding the date of the request for assistance.
Domestic Violence
Domestic violence includes felony or misdemeanor crimes of violence committed by:
Amendment to the 2021 HOME-ARP Policies and Procedures Guidelines—PR#24054 presented to the City
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1. A current or former spouse or intimate partner of the victim (the term "spouse or intimate
partner of the victim" includes a person who is or has been in a social relationship of a
romantic or intimate nature with the victim, as determined by the length of the
relationship, the type of the relationship, and the frequency of interaction between the
persons involved in the relationship);
2. A person with whom the victim shares a child in common;
3. A person who is cohabitating with or has cohabitated with the victim as a spouse or
intimate partner;
4. A person similarly situated to a spouse of the victim under the domestic or family violence
laws of the State or City; or
5. Any other person against an adult or youth victim who is protected from that person's acts
under the domestic or family violence laws of the State or the City.
Dating Violence
Dating violence means violence committed by a person who is or has been in a social relationship
of a romantic or intimate nature with the victim; and where the existence of the relationship is
determined considering:
1. The length of the relationship;
2. The type of relationship; and
3. The frequency of interaction between the persons involved in the relationship.
Sexual Assault
Sexual assault means any nonconsensual sexual act proscribed by Federal, Tribal, or State law,
including when the victim lacks the capacity to consent.
Stalking
Stalking means engaging in a course of conduct directed at a specific person that would cause a
reasonable person to:
1. Fear for the person's individual safety or the safety of others; or
2. Suffer substantial emotional distress.
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Human Trafficking
For the purposes of the HOME-ARP program, human trafficking includes both sex and labor
trafficking, defined as:
1. For sex trafficking, the recruitment, harboring, transportation, provision, obtaining,
patronizing, or soliciting of a person for the purpose of a commercial sex act, in which the
commercial sex act is induced by force, fraud, or coercion, or in which the person induced
to perform such act has not attained 18 years of age.
2. For labor trafficking, the recruitment, harboring, transportation, provision, or obtaining of
a person for labor or services through the use of force, fraud, or coercion for the purpose
of subjection to involuntary servitude, peonage, debt bondage, or slavery.
"Other" Qualifying Population
For the purposes of the HOME-ARP program, "other" QP means individuals and families who do
not meet the definition of homeless, at-risk of homelessness, or fleeing or attempting to flee
domestic violence, dating violence, sexual assault, stalking or human trafficking as defined above
and:
1. Requiring services or housing assistance to prevent repeat homelessness; or
2. At greatest risk of housing instability.
Households Requiring Services or Housing Assistance to Prevent Repeat Homelessness
Households may receive HOME-ARP supportive services or housing assistance as a HOME-ARP QP
if they:
1. Previously qualified as homeless as defined above, or previously qualified as homeless
because:
a. The individual or family was fleeing, or attempting to flee, domestic violence, dating
violence, sexual assault, stalking, or other dangerous or life-threatening conditions
that relate to violence against the individual or family member, including a child,
that has either taken place within the individual's or family's primary nighttime
residence or has made the individual or family afraid to return to their primary
nighttime residence; and
b. Have no other residence; and
c. Lack the resources or support networks, such as family, friends, faith-based or
other social networks, to obtain other permanent housing; and
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2. Are currently housed with temporary or emergency assistance, including financial
assistance, services, temporary rental assistance or some type of other assistance to allow
the household to be housed; and
3. Need additional housing assistance or supportive services to avoid a return to
homelessness.
Households at Greatest Risk of Housing Instability
Households are at the greatest risk of housing instability and a HOME-ARP QP when they meet
one of the following two definitions:
1. Have an annual income that is less than or equal to 30%of the AMI and paying more than
50% of monthly household income toward housing costs (are severely cost burdened); or
2. Have an annual income that is less than or equal to 50% of the AMI, and meet one of the
following conditions:
a. Moved because of economic reasons two or more times during the 60 days
immediately preceding the application for homelessness prevention assistance;
b. Living in the home of another because of economic hardship;
c. Have been notified in writing that their right to occupy their current housing or
living situation will be terminated within 21 days after the date of application for
assistance;
d. Lives in a hotel or motel, and the cost of the hotel or motel stay is not paid by
charitable organizations or by Federal, State, or local government programs for low-
income individuals;
e. Lives in a single-room occupancy or efficiency apartment unit in which there reside
more than two persons or lives in a larger housing unit in which there reside more
than 1.5 persons reside per room, as defined by the U.S. Census
Bureau; or
f. Is exiting a publicly funded institution or system of care (such as a health-care
facility, a mental health facility, foster care or another youth facility, or correction
program or institution).
Amendment to the 2021 HOME-ARP Policies and Procedures Guidelines—PR#24054 presented to the City
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Rental Housing and Tenant Based Rental Assistance (TBRA)
HOME-ARP funds may be used to acquire, rehabilitate, or construct affordable rental housing,
primarily for occupancy by households of individuals and families that meet the definition of one
or more of the qualifying populations.
TBRA may be used to provide tenant-based rental assistance to qualifying households. In HOME-
ARP Tenant-Based Rental Assistance, assistance is given to qualifying households with payments
to cover the entire or insufficient amounts that the qualifying housing cannot pay for housing and
housing-related costs, such as rental assistance and security, and utility deposits.
TBRA projects will follow the City's TBRA Policies and Procedures. The Policy and Procedure will
include the tenant selection process and program participation eligibility.
HOME-ARP funds can only be invested in units restricted for qualifying households or low-income
households as follows:
1. Not less than 70 percent of the total number of rental units assisted with HOME-ARP
funds must be restricted for occupancy by households that are qualifying households at
the time of the household's initial occupancy; and
2. Not more than 30 percent of the total number of rental units assisted with HOME-ARP
funds may be restricted to low-income households. These rental units do not have to be
restricted for occupancy by qualifying households; however, rental units restricted to low-
income households are only permitted in projects that include HOME-ARP units for
qualifying households.
Eligible Property Types
HOME-ARP rental housing eligible property types are:
1. Single and multi-unit housing;
2. Manufactured housing;
3. Single Room Occupancy (SRO) units
Ineligible Property Types
HOME-ARP funds may not be used to rehabilitate public housing units. In addition, unless acquired
and rehabilitated to HOME-ARP rental housing, the following property types are ineligible as
HOME-ARP rental housing:
Amendment to the 2021 HOME-ARP Policies and Procedures Guidelines—PR#24054 presented to the City
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1. Emergency shelters;
2. Hotels, and motels;
3. Facilities such as nursing homes;
4. Residential treatment facilities;
5. Correctional facilities;
6. Halfway houses; and
7. Housing for students or dormitories.
Forms of Assistance
HOME-ARP funds for rental housing will be provided as a non-interest bearing, non-amortizing
loan, subject to recapture in the event of non-compliance with HOME-ARP requirements and
forgivable upon the expiration of the HOME-ARP minimum compliance period.
Rental assistance can be provided in the form of monthly rental assistance, rental arrears, or a
combination of both.
1. Short-Term Renal Assistance—up to 3 months
2. Medium-Term Rental Assistance—4 to 24 months
3. Rental Arrears—One-time payment of up to 6 months, including any late fees
It is important to note that each household should be evaluated individually and given just
enough assistance to regain stability.
Payments made on behalf of program participants must be paid directly to the property
manager/owner. Late fees incurred by the service provider or the client after entry into the
program are not eligible for reimbursement.
Utility assistance in the form of arrears (up to 6 months) and monthly payments can be made on
behalf of the participant only if documentation shows that they need utilities to remain or
obtain housing and that they meet HUD's definition of homelessness or are at risk of
homelessness. Allowable utility charges can be for electricity, gas, water, sewage, and propane.
Documentation in the participant files must show the following: Utility bills must be in the
participant's name. The lease shows that the unit in which assistance is provided matches the
name and address on the utility bill. Assistance is limited to 24 utility payments per program
participant per service. Partial utility payments count as one month of assistance.
Amendment to the 2021 HOME-ARP Policies and Procedures Guidelines—PR#24054 presented to the City
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SECURITY DEPOSITS/APPLICATION FEES
Assistance with security deposits is allowable as long as the amount does not exceed the
equivalent of 2 months' total rent. The first and last months' rent is considered a security
deposit and should be counted when determining the length of assistance and cannot exceed
the rent charged for any other month.
Minimum and Maximum HOME-ARP Development Investment
The minimum HOME-ARP investment is$1,000 per HOME-ARP unit. There is no maximum HOME-
ARP investment- HOME-ARP funds may pay the entire reasonable and necessary cost to acquire,
rehabilitate and/or construct HOME-ARP rental units subject to any restrictions specified by the
CITY and the Cost Principles at 2 CFR Part 200.
Eligible Costs
HOME-ARP funds may be used to pay for up to 100% of the following eligible costs associated with
the acquisition, development, and operation of HOME-ARP rental units:
1. Hard costs;
2. Refinancing
3. Acquisition
4. Project Soft Costs
5. Relocation costs
6. Costs relating to the payment of loans
7. Operating Cost Assistance
Property Standards: HOME-ARP rental units must comply with all property standards applicable
to rental projects required in 24 CFR 92.251 paragraphs (a) new construction, (b) rehabilitation
projects, (c) (1) and (2) acquisition of standard housing, ( e) manufactured housing, and (f) on-
going property condition standards.
Supportive Services
HOME-ARP funds may be used to provide a broad range of supportive services to qualifying
individuals or families as a separate activity or in combination with other HOME-ARP activities
Amendment to the 2021 HOME-ARP Policies and Procedures Guidelines—PR#24054 presented to the City
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Supportive Services Project Delivery Costs
Service providers are compensated through project delivery costs. General administrative funding
is not available for the CITY to pass through to service providers. A supportive services project
delivery cost is one that can be directly attributed to the delivery of a specific HOME-ARP service
to an identified and eligible HOME-ARP program participant. When a service provider is engaged
directly in the provision of HOME-ARP supportive services to identified HOME-ARP program
participants, the labor (including salary and benefit packages of staff), supplies, and materials
incurred in directly providing the supportive services are reimbursable project delivery costs.
Eligible McKinney-Vento Services
CITY HOME-ARP funding is available for the following eligible McKinney-Vento services for
qualifying populations that are 1) homeless or 2) at risk of homelessness, including those who are
occupants or prospective occupants of HOME-ARP NCS and tenants or prospective tenants of
HOME-ARP rental housing. McKinney-Vento supportive services may only be offered to
households (individuals or families) that meet the definition of a homeless or at-risk of homeless
qualifying population at the time of application for services. Eligibility must be documented prior
to providing HOME-ARP-funded services.
1. Child care, including providing meals and snacks and comprehensive and coordinated
developmental activities.
2. Education services to improve knowledge and basic educational skills
3. Employment assistance and job training
4. Food
5. Housing search and counseling services: Housing Counseling surrounding the following
topics are ineligible under HOME-ARP:
• Resolving or preventing mortgage delinquency, including, but not limited to, default
and foreclosure, loss mitigation, budgeting, and credit;
• Home maintenance and financial management for homeowners, including, but not
limited to, Escrow funds, budgeting, refinancing, home equity, home improvement,
utility costs, energy efficiency, rights and responsibilities of homeowners, and
reverse mortgages.
6. Legal services
7. Life skills training
8. Mental health services
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9. Outpatient health services provided by licensed medical professionals to treat medical
conditions
10. Outreach services;
11. Substance abuse treatment services by licensed or certified professionals to prevent,
reduce, eliminate, or deter relapse of substance abuse or addictive behaviors
12. Transportation —mileage reimbursement will follow the U. S. General Services
Administration (GSA) guidelines for the effective date of January 1, 2023.
13. Case management, including assessing, arranging, coordinating, and monitoring the
delivery of individualized services to meet the needs of program participant(s)
14. Mediation
15. Credit repair
16. Landlord/Tenant Liaison services between property managers/owners and program
participants
17. Services for special populations
18. Financial assistance costs
Selection of Program Participants
Prior to providing supportive services to any individual or family, an eligibility assessment must be
conducted to identify needed and existing services. The assessment must:
1. Document how the individual or family meets the definition of a HOME-ARP qualifying
population, and specify the category of the qualifying population met;
2. Identify and document any services already being received by the individual or family. Only
services that are not currently being received by the individual or family may be provided using
HOME-ARP funds. Services provided through another source may not be terminated in order
to provide HOME-ARP-funded services.
Waiting List and Due Process Procedures
Recipients must maintain a waiting list of individuals and families wishing to apply for HOME-ARP
supportive services. Individuals and families wishing to apply for services must provide complete
information necessary to placement on the services waiting list. This information includes name
and contact information (phone, email, street address, if available).
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Placement on the waiting list does not indicate the family will be eligible for assistance—a final
determination of eligibility will be made when the family is selected from the waiting list. When
the family nears the top of the waiting list, the service provider will verify eligibility for services
and develop a services plan.
Denial of Assistance
The service provider will deny assistance to applicants who:
1. Do not meet any one or more of the eligibility criteria.
2. Do not supply the required information or documentation.
3. Fail to respond to a written request for information or a request to declare their continued
interest.
4. Fail to complete any aspect of the application, eligibility interview, or services action plan
that the service provider may require.
5. Currently receive the same services from another source.
6. Have engaged in or threatened abusive or violent behavior towards any service provider
staff member.
Termination of Assistance
The City of Port Arthur may terminate assistance to a program participant who violates program
requirements or conditions of occupancy or no longer needs the services as determined by the
City. Termination under this section does not bar the City from providing further assistance at a
later date to the same individual or family under the HOME-ARP Program.
1. The family may terminate services at any time.
2. The service provider may fully or partially terminate services assistance when:
a. The service provider determines that there is insufficient funding in their contract to
support continued assistance for families in the program.
b. The service provider determines the family no longer needs the services.
c. The family is receiving services from another source.
d. The family has reached any monetary or time limits for receipt of services.
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e. The family fails to provide any information that the service provider, the CITY, or HUD
determines is necessary for the administration of the program, including but not
limited to any requested certification, release, consent form, or other documentation,
Social Security Numbers; and signed consent forms for obtaining information.
f. The family fails to keep appointments.
g. A family member violates any family obligations under the program, including failing to
comply, without good cause, with the services contract of participation.
h. Any family member has engaged in or threatened abusive or violent behavior toward
service provider personnel or any contracted services on behalf of the service provider.
Abusive or violent behavior includes verbal as well as physical abuse or violence, use of
racial epithets, or other language, written or oral, that is customarily used to
intimidate. Threatening refers to oral or written threats or physical gestures that
communicate intent to abuse or commit violence.
i. A family member commits fraud, bribery, or other corrupt or criminal acts in
connection with the program.
Due Process and Hearing Procedures
When the service provider makes a decision to deny or terminate services to an applicant or
participant, the family is entitled to appeal the decision. The appeal takes the form of an Informal
Hearing.
The process, at a minimum, must consist of:
1. Providing the program participant with a written copy of the program rules and the
termination process before the participant begins to receive assistance;
2. Written notice to the program participant containing a clear statement of the reasons for
termination;
3. A review of the decision, in which the program participant is given the opportunity to
present written or oral objections before a person other than the person (or a subordinate
of that person) who made or approved the termination decision; and
4. Prompt written notice of the final decision to the program participant.
During the termination process, effective communication and accessibility for individuals with
disabilities, including the provision of reasonable accommodations. Similarly, accommodation
must be provided to persons with Limited English Proficiency.
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Compliance with Federal Cross-cutting Regulations
HOME-ARP applicants, subrecipients, service providers, and owners must comply with the
following statutes, policies, and procedures.
Accessibility Standards
All HOME-ARP activities and projects must comply with the accessibility standards of the
Americans with Disabilities Act, The Fair Housing Act, and the Rehabilitation Act, as revised.
Asbestos Testing
Recipients must comply with Federal and State requirements to protect affected public members
from exposure to regulated asbestos-containing material during renovation, demolition, removal,
transport, and disposal activities in accordance with applicable Environmental Protection Agency
(EPA) regulations.
Affirmative Marketing
Owners of assisted rental housing containing five (5) or more total units must adhere to the CITY
Affirmative Marketing requirements. Actions must be taken to provide equal access to all eligible
persons in the housing market area with a focus on those least likely to apply.
Affirmative marketing procedures are required to be submitted with the application.
Conflicts of Interest
Both Federal and State laws prohibit employees, agents, consultants, officers or elected officials of
entities receiving government funds from obtaining a financial interest or benefit from a
government-assisted activity, having an interest in any contract, subcontract or agreement with
respect to any contract during their tenure and for one (1) year thereafter. In the HOME-ARP
program, this requirement includes the State of City, owners, service providers and recipients.
These requirements are also applicable to persons to whom the above-identified parties have
family or business ties.
Contract Work Hours and Safety Standards Act
Requires that projects with twelve (12) or more HOME-ARP assisted units comply with overtime
provisions of the Act. Overtime provisions apply to the entire development, not just the HOME-
ARP assisted units and the provisions must be in the construction contract. Payroll records must
be provided to CITY weekly. The CITY Labor Standards Handbook should be used.
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Labor Standards (Davis-Bacon Act)
Requires that a contract for construction with twelve (12) or more HOME-ARP assisted units to
pay all laborers and mechanics not less than the wages prevailing in that locality as predetermined
by the U.S. Department of Labor. Prevailing wages must be paid on the entire development, not
just the HOME-ARP-assisted units, and the wage provisions must be in the construction contract.
Payroll records must be provided to CITY weekly. The CITY Labor Standards Handbook should be
used.
Drug-Free Workplace
Recipients are required to certify and maintain a drug-free workplace.
Environmental Review
The environmental effects of each activity carried out with Federal funds must be assessed
following Part 58 HUD Environmental Review requirements.
The acquisition of property or any physical action taken on a proposed site prior to the completion
of the environmental review will preclude the award of HOME-ARP funds to a project or activity,
regardless of the source of funds used.
HUD Format Environmental Review requirements generally require between thirty (30) and one
hundred twenty (120) days to complete, depending upon the type of activity and its location.
Applicants must consult with the State Historic Preservation Officer ("SHPO"), including the Tribal
Historic Preservation Officer.
Equal Opportunity and Fair Housing
Multiple Acts, Orders, and Regulations must be followed to ensure equal access to HOME-ARP
activities. These include:
1. The Fair Housing Act and implementing regulations at 24 CFR 100;
2. 24 CFR 110 requiring fair housing posters be prominently displayed so they are apparent to
all persons seeking housing accommodations;
3. Equal Access to Housing in HUD Programs Regardless of Sexual Orientation or Gender
Identity Final Rule;
4. Executive Order 12259 - Equal Opportunity in Housing;
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5. Title VI of the Civil Rights Act of 1964 (24 CFR 1) —Nondiscrimination in Federally Assisted
Programs;
6. Age Discrimination Act of 1975 (25 CFR 146);
7. Section 504 of the Rehabilitation Act (24 CFR 8); and
8. Executive Order 11246- Equal Employment Opportunity.
Financial Records and Audits
Recipients must comply by ensuring that financial records can be audited based on Generally
Accepted Accounting Principles; internal controls are effective and protect federal funds from
inappropriate use; procedures exist for determining costs are allowable, reasonable, and
allocable; and systems are in place to review procedures. The CITY may require evidence that the
recipient's financial management system complies with 2 CFR 200, and may require the most
recent audit be submitted for review.
Flood Insurance
Section 202 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4106) requires that Federal
funds not be provided to an area that has been identified by the Federal Emergency Management
Agency ("FEMA") as having special flood hazards unless the community is participating in the
National Flood Insurance Program or it has been less than one (1) year since the community was
designated as having special flood hazards and flood insurance is obtained.
HUD Performance Measures
The recipient must provide performance measurement data as prescribed by HUD and submit
such data to CITY upon request. The performance measurements will be reported in the
Consolidated Annual Performance Evaluation Report and may be incorporated into any
Consolidated Plan update and corresponding Annual Action Plan. HUD guidance will be issued in
the near future.
Lead Hazard Control
The Lead Safe Housing Rule ("LSHR") 24 CFR Part 35 applies to HOME-ARP rental housing and non-
congregate shelter activities. Depending on the nature of the work and the dollar amount of
HOME-ARP funding, certain requirements must comply with regard to lead-based paint
inspection, risk assessment, and handling lead-based paint. The use of a certified abatement
contractor is required.
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Minority and Women Business Enterprises
Recipients must make efforts to include, to the maximum extent possible, minorities and women
and entities owned by minorities and women in all contract activity. Recipients are contractually
obligated to maintain documentation and data on the steps taken to implement outreach
programs to minority-owned and women-owned businesses, including data indicating
the racial, ethnic, or gender characteristics of each business entity receiving a contract or
subcontract to be paid with HOME-ARP funds; the amount of the contract or subcontract; and
documentation of the steps to assure that minority- and women-owned business enterprises have
an equal opportunity to obtain or compete for contracts and subcontracts as sources of supplies,
equipment, construction, and services.
Procurement and Contracting
All recipient procurement must comply with the Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards at 2 CFR 200. Any procurement that did
not incorporate federal labor standards or Section 3 employment opportunities requirements will
be invalid. Construction contractors must have the appropriate license and insurance for the type
of work being performed. Contractors and participants must not be debarred, suspended, or
ineligible based on the excluded parties list.
Section 3 Economic Opportunities
When HOME-ARP and any other covered Section 3 project assistance is $200,001 or greater,
recipients, contractors and subcontractors must track project labor hours, including those worked
by Section 3 workers and targeted Section 3 workers, and take actions to provide opportunities
for Section 3 businesses to participate in funded projects
Uniform Relocation Assistance and Real Property Acquisition Policies Act ("URA")
The URA provides important protections and assistance for people affected by the acquisition,
rehabilitation or demolition of real property for federally funded projects. This law ensures that
people whose real property is acquired, or who move as a direct result of projects receiving
Federal funds, are treated fairly and equitably and receive assistance in moving from the property
they occupy. All voluntary and involuntary acquisitions, and any relocation, must comply with the
URA. HUD Handbook 1378 provides detailed information regarding URA requirements.
Violence Against Women Act (VAWA)
The Violence Against Women Act (VAWA), see 24 CFR 92.359, provides expanded protections to
victims of domestic violence, dating violence, sexual assault, and stalking across HUD housing and
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homelessness programs. Generally, applicants, occupants, service participants, and tenants may
not be denied assistance or have assistance terminated on the basis of or as a direct result of their
status as victims.
Written Agreements
Before disbursing HOME-ARP funds to any entity, the CITY will enter into a written agreement
with that entity. The agreement will commit only to providing HOME-ARP funds during the HOME-
ARP budget period. The content of the written agreement will vary depending upon the type of
entity and the activity being implemented.
All agreements, regardless of activity, will include:
1. Required compliance with federal cross-cutting regulations, including Uniform
Administrative Requirements;
2. Uses of HOME-ARP and other funds for the specified activity;
3. Affordability requirements of rental housing
4. Program income retention or return to CITY;
5. Requirement that funds not be disbursed until needed for payment of eligible costs, that
each payment request be limited to only the amount needed, and that program income, if
any, must be disbursed prior to requesting additional funds from the CITY;
6. Records and reports that must be maintained and submitted;
7. Means of enforcement of program requirements;
8. Means of enforcement of the agreement; and
9. Duration of the agreement.
For rental housing projects, the written agreement will also include:
1. The address of the project or legal description of the property if a street address has not
been assigned to the property;
2. Required project tasks;
3. A complete budget;
4. Ongoing compliance with rental housing requirements, including repayment of HOMEARP
funds in the event of non-compliance;
5. On-site inspections and financial oversight requirements;
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6. Tenant selection; and
7. Project-specific waiting list.
Recordkeeping Requirements
Each subrecipient and project owner must establish and maintain sufficient records to enable HUD
to determine whether the CITY has met the HOME-ARP requirements. At a minimum, the
following records must be maintained for each HOME-ARP activity.
Supportive Services
Program participant information must maintain:
1. Documentation supporting the eligibility of each beneficiary as:
a. Homeless or at risk of homelessness;
b. Fleeing or attempting to flee domestic violence, dating violence, sexual assault,
stalking, or human trafficking; or
c. Other HOME-ARP eligible population.
2. Evidence of the expenditure of HOME-ARP funds only for eligible costs and the program
participant will receive only HOME-ARP services needed so there is no duplication of
services or assistance in the use of HOME-ARP funds for supportive services.
3. Records, where applicable, demonstrate compliance with the assistance termination
requirements.
4. Records of all solicitations of and agreements with subrecipients and contractors.
5. Records of all payment requests by and dates of payments made to subrecipients and
contractors.
6. Records of all procurement contracts and documentation of compliance with procurement
requirements.
7. Records evidencing the use of the written procedures in selecting program participants for
and providing supportive services.
8. Records of all leases, subleases, and financial assistance agreements for the provision of
rental payments.
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9. Documentation of payments made to owners for rental payments, and supporting
documentation for these payments, including dates of occupancy by qualifying individuals
and families.
10. Records of the types of services provided under the program and the amounts spent on
these services.
11. For any HOME-ARP Housing Counseling Services, records must be maintained in
accordance with the Housing Counseling Final Rule.
Rental Housing
Unit occupant information must be maintained for each qualifying household that meets the
HOME-ARP definition of homeless or at-risk of homelessness subject to confidentiality
requirements, and the following additional records must be maintained:
1. Evidence of the commitment and expenditure of all funds necessary to complete the
project.
2. Evidence of the expenditure of HOME-ARP funds only for eligible costs.
3. Records (e.g., inspection reports) demonstrating that each HOME-ARP rental unit and
project meets the property standards at project completion and through the applicable
minimum compliance period.
4. Records demonstrating compliance with operating cost assistance reserve management
and oversight.
5. Documentation of annual household income to determine eligibility for occupancy and/or
the tenant contribution to rent, including:
a. Source documents for the assets held by the household and income received over
the most recent period for which representative data is available before the date of
the evaluation (e.g., wage statement, unemployment compensation statement,
public benefits statement, bank statement);
b. To the extent that source documents are unobtainable, a written statement by the
relevant third party (e.g., employer, government benefits administrator) or the
written certification by the recipient's or subrecipient's intake staff of the oral
verification by the relevant third party of the income the household received over
the most recent period for which representative data is available; or
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c. To the extent that source documents and third-party verification are unobtainable,
the written certification by the household of the amount of income the household
received for the most recent period representative of the income that the
household is reasonably expected to receive over the 3-month period following the
evaluation.
6. Records demonstrating continued compliance with HOME-ARP rental requirements.
7. Leases and other documents demonstrating compliance with tenant selection and tenant
protection requirements.
8. Records that document the monthly allowance for utilities (excluding telephone) used to
determine compliance with the rent restriction.
9. Records demonstrating compliance with the return of the HOME-ARP rental capitalized
operating cost assistance reserve at the end of the compliance period.
10. Records demonstrating that each HOME-ARP rental housing unit and project meets the
rent limitations for the 15-year minimum compliance period. Records must be kept for
each household assisted.
11. Records demonstrating that a site and neighborhood standards review was conducted for
each HOME-ARP rental housing project involving new construction.
12. Purchase contract.
13. Closing documents.
14. Settlement statement and title work for acquisitions.
15. Appraisal or other estimation of value.
16. Architectural and engineering contracts and completed designs, plans, and specifications
for rehabilitation and new construction activities.
17. Invoices, pay requests, and proof of payment for all project expenditures.
18. Proof of insurance.
19. Project and program audits.
20. The rent payments they are providing do not exceed HUD's Fair Market Rent, as outlined in
24 CFR part 888, and comply with HUD's rent reasonableness standard per 24 CFR 982.507.
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Financial Records
1. Records identifying the source and application of program income and repayments.
2. Records demonstrating adequate budget control and other records required by the
uniform administrative requirements, including evidence of periodic account
reconciliations.
Program Administration Records
1. Records demonstrating compliance with the applicable uniform administrative
requirements.
2. Records documenting required inspections, monitoring reviews and audits, and the
resolution of any findings or concerns.
Cross-cutting Regulations and Requirements Records
1. Records demonstrating compliance with nondiscrimination, equal opportunity, and fair
housing requirements.
2. Data on the extent to which each racial and ethnic group and single-headed households by
gender of household head) have applied for, participated in or benefited from HOME-ARP
funds.
3. Records demonstrating compliance with affirmative marketing procedures and
requirements.
4. Documentation and data on the steps taken to outreach to minority-owned (MBE) and
female-owned (WBE) businesses, including:
a. Data indicating the racial/ethnic or gender character of each business entity
receiving a contract or subcontract of$25,000 or more paid, or to be paid, with
HOME-ARP funds; and
b. The amount of the contract or subcontract.
5. Records demonstrating compliance with the environmental review requirements, including
flood insurance requirements.
6. Records demonstrating compliance with the requirements regarding displacement,
relocation, and real property acquisition, including but not limited to:
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a. Project occupancy lists identifying the name and address of all persons:
i. Occupying the real property on the date of the initiation of negotiations or
application for HOME-ARP funds, whichever is earlier;
ii. Moving into the property on or after the date of the initiation of
negotiations or application for HOME-ARP funds; and
iii. Occupying the property upon completion of the project.
b. Lists of all individuals or families occupying hotels and motels and other
nonresidential properties acquired, rehabilitated, and/or demolished and newly
constructed to become HOME-ARP NCS or HOME-ARP rental housing that qualify
for assistance as members of a qualifying population, including records indicating
whether such persons were assisted by the HOME-ARP program following the
closure of the nonresidential properties because of HOME-ARP activities.
c. Lists of all individuals or families occupying HOME-ARP NCS that were converted to
HOME-ARP rental housing that qualify for assistance, including:
i. Records indicating whether moving costs or advisory services were
provided as part of HOME-ARP administrative costs or under the HOME-
ARP supportive services activity; and ii. Records indicating whether such
persons were assisted by the HOME-ARP program following the conversion of
the HOME-ARP NCS units.
7. Records demonstrating compliance with the labor requirements, including contract
provisions and payroll records.
8. Records demonstrating compliance with the lead-based paint requirements.
9. Records supporting compliance with conflict of interest requirements.
10. Records demonstrating compliance with debarment and suspension requirements.
11. Records of emergency transfers requested by victims of domestic violence, dating violence,
sexual assault, or stalking, including data on the outcomes of those requests.
12. Records documenting compliance with 2 CFR 200 regarding financial management and
procurement.
13. Documentation of actions undertaken to meet Section 3 requirements.
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Records Retention Period
All records pertaining to HOME-ARP funds must be retained for five years after contract closeout,
except:
1. For HOME-ARP rental housing projects:
a. Records pertaining to the development phase must be retained for five years after
the project completion date;
b. Records of individual tenant income verifications, project rents and project
inspections must be retained for the most recent five-year period, until five years
after the minimum compliance period terminates.
2. Written agreements must be retained five years after the agreement terminates.
3. Records covering displacements and acquisition must be retained for five years after the
date by which all persons displaced from the property and all persons whose property is
acquired for the project have received the final payment to which they are entitled.
4. If any litigation, claim, negotiation, audit, monitoring, inspection, or other action is
started before the expiration of the required record retention period, records must be
retained until completion of the action and resolution of all issues which arise from it, or
until the end of the required period, whichever is later.
Confidentiality
All HOME-ARP subrecipients, owners, and contractors must develop, implement, and maintain
written procedures to ensure that:
1. All records containing personally identifying information of any individual or family who
applies for and/or receives HOME-ARP assistance will be kept secure and confidential;
2. The address or location of any NCS or HOME-ARP rental housing exclusively for individuals
fleeing or attempting to flee domestic violence, dating violence, sexual assault, stalking, or
human trafficking will not be made public, except as necessary where making the address
or location public does not identify occupancy of the NCS or HOME-ARP rental housing,
including recording of use restrictions or restrictive covenants, or with written
authorization of the person or entity responsible for the operation of the NCS or HOME-
ARP rental housing; and
3. The address or location of any program participant that is a fleeing or attempting to flee
domestic violence, dating violence, sexual assault, stalking, or human trafficking will not be
made public.
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The recipient may create a program participant identifier code or number that can be used on a
file and maintained internally in such a way that the number itself does not inadvertently identify
the program participant (i.e., no use of initials, date of birth, or other pieces of information that
might suggest the identity of the program participant). The "key" or "cypher" for the program
participant identifier code would itself be confidential and would not leave the provider.
In the circumstance of HUD programs, the Unique Personal Identification Number which is
generated within the comparable database, could be used with auditors to identify records of
services to distinct individuals, subject to the following:
• HUD and the Comptroller General of the United States, any of their representatives, have the
right of access to any pertinent books, documents, papers, or other records of the PJ, state
recipients, and subrecipients, in order to make audits, examinations, excerpts, and
transcripts. If a provider of services or operator of an NCS is subject to state or local laws
or other federal grant programs that require that HUD not be given access to records
detailing PII of victims, then auditors or evaluators may be given access to representative
files without any sharing of individual identifying information.
Documenting Fleeing or Attempting to Flee Status
If an individual or family qualifies because the individual or family is fleeing or attempting to flee
domestic violence, dating violence, sexual assault, stalking, or human trafficking then acceptable
evidence includes an oral or written statement by the qualifying individual or head of household
seeking assistance that they are fleeing that situation. A statement may be documented by either:
1. A written certification by the individual or head of household; or
2. A written certification by a victim service provider, intake worker, social worker, legal
assistance provider, health-care provider, law enforcement agency, legal assistance
provider, pastoral counselor, or an intake worker in any other organization from whom the
individual or family sought assistance.
The written documentation need only include the minimum amount of information indicating that
the individual or family is fleeing or attempting to flee domestic violence, dating violence, sexual
assault, stalking, or human trafficking and need not include any additional details about the
conditions that prompted the individual or family to seek assistance.
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Reporting and Performance Reports
Recipients must submit reports in a format and at the time prescribed by the CITY. As of February
2022, the following are known reporting requirements:
1. A project completion report when HOME-ARP rental activities are completed.
2. For HOME-ARP Supportive Services activities, a monthly report on the number of homeless
and not homeless households assisted with supportive services and housing counseling,
including race and ethnicity, household size, and household type.
HUD may issue additional guidance about reporting on HOME-ARP activities at a later date.
DUPLICATION OF BENEFITS/SERVICES
A duplication of benefits (DOB) occurs when a person, household, business, government, or other
entity receives financial assistance from multiple sources for the same purpose within the same
time period, and the total assistance received for that purpose is more than the total need for
assistance. Any person or entity receiving HOME-ARP assistance (including subrecipients and
direct beneficiaries) must agree to repay assistance that is determined to be duplicative.
Participants may not receive HOME-ARP short- or medium-term financial assistance for rent for
the same period a program participant receives rental assistance or living in housing provided with
ongoing assistance (such as project-based rental assistance or operating subsidies).
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