Loading...
HomeMy WebLinkAboutPR 24054: TO AMEND THE 2021 HOME INVESTMENT PARTNERSHIPS – POLICIES AND PROCEDURES GUIDELINES Energy': City of City .� )10 el gort rthury- Te.rrt, www.PortArthurTx.gov 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 Page 2 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 Page 3 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 Council on December 17, 2024 11Page 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); Amendment to the 2021 HOME-ARP Policies and Procedures Guidelines—PR#24054 presented to the City Council on December 17, 2024 21 Page 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; Amendment to the 2021 HOME-ARP Policies and Procedures Guidelines—PR#24054 presented to the City Council on December 17, 2024 Wage 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; Amendment to the 2021 HOME-ARP Policies and Procedures Guidelines—PR#24054 presented to the City Council on December 17, 2024 4IPa e 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 Council on December 17, 2024 51Page 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. Amendment to the 2021 HOME-ARP Policies and Procedures Guidelines—PR#24054 presented to the City Council on December 17, 2024 6IP � 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 Amendment to the 2021 HOME-ARP Policies and Procedures Guidelines—PR#24054 presented to the City Council on December 17, 2024 7IP ga 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 Council on December 17, 2024 Wage 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 Council on December 17, 2024 91Page 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 Council on December 17, 2024 10I Pat, 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 Council on December 17, 2024 11IPage 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 Amendment to the 2021 HOME-ARP Policies and Procedures Guidelines—PR#24054 presented to the City Council on December 17, 2024 12 I Page I 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). Amendment to the 2021 HOME-ARP Policies and Procedures Guidelines—PR#24054 presented to the City Council on December 17, 2024 13IPag 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. Amendment to the 2021 HOME-ARP Policies and Procedures Guidelines—PR#24054 presented to the City Council on December 17, 2024 14IPaga I 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. Amendment to the 2021 HOME-ARP Policies and Procedures Guidelines—PR#24054 presented to the City Council on December 17, 2024 15I Pag n � 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. Amendment to the 2021 HOME-ARP Policies and Procedures Guidelines—PR#24054 presented to the City Council on December 17, 2024 16IPag 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; Amendment to the 2021 HOME-ARP Policies and Procedures Guidelines—PR#24054 presented to the City Council on December 17, 2024 17IPage 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. Amendment to the 2021 HOME-ARP Policies and Procedures Guidelines—PR#24054 presented to the City Council on December 17, 2024 18 I P a 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 Amendment to the 2021 HOME-ARP Policies and Procedures Guidelines—PR#24054 presented to the City Council on December 17, 2024 19IPaGe 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; Amendment to the 2021 HOME-ARP Policies and Procedures Guidelines—PR#24054 presented to the City Council on December 17, 2024 20 I P a g 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. Amendment to the 2021 HOME-ARP Policies and Procedures Guidelines—PR#24054 presented to the City Council on December 17, 2024 21 I 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 Amendment to the 2021 HOME-ARP Policies and Procedures Guidelines—PR#24054 presented to the City Council on December 17, 2024 22IPage 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. Amendment to the 2021 HOME-ARP Policies and Procedures Guidelines—PR#24054 presented to the City Council on December 17, 2024 23 I Page 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: Amendment to the 2021 HOME-ARP Policies and Procedures Guidelines—PR#24054 presented to the City Council on December 17, 2024 24 I P a 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. Amendment to the 2021 HOME-ARP Policies and Procedures Guidelines—PR#24054 presented to the City Council on December 17, 2024 25 I Pad 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. Amendment to the 2021 HOME-ARP Policies and Procedures Guidelines—PR#24054 presented to the City Council on December 17, 2024 26IPage 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. Amendment to the 2021 HOME-ARP Policies and Procedures Guidelines—PR#24054 presented to the City Council on December 17, 2024 27IPage 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). Amendment to the 2021 HOME-ARP Policies and Procedures Guidelines—PR#24054 presented to the City Council on December 17, 2024 281Page