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RETIREMENT HOUSING FOUNDATION - 1997-07-21
all- Council/Agency Meeting Held: /p./l S)9 g Deferred/Continued to: C Ql prov d_� 0 Con%ignaily Appr ved . �❑ eM =J'Kt7 City Clerk's Signature Council Meeting Date: June 15, 1998 Department ID Number. ED 98-21 CITY OF HUNTINGTON BEACH = 2 REQUEST FOR REDEVELOPMENT AGENCY ACTION ZS �r? e SUBMITTED TO: CHAIRMAN AND REDEVELOPMENT AGENCY MEMBERq, Qq� SUBMITTED BY: RAY SILVER, Executive DirectoreW � �'MC3 PREPARED BY: DAVID C. BIGGS, Director of Economic Development n SUBJECT: Support And Approve Option Agreement For Section 202 Application: Bowen Court Senior Apartments lFstat:Ztof Issue,Funding Source,Recommended Action,Alternative Action(s).Analysis,Environmental Status,Attachments) Statement of Issue: As part of an ongoing effort to identify funding sources for the construction of the Bowen Court project at the corner of Lake Street and Yorktown Avenue, staff recommends supporting a second application for federal funds by a nonprofit housing sponsor. Section 202 Capital Advance and Rental Assistance Program ("Section 202") funds are administered by HUD and are available only for senior projects. Applications for the highly competitive program are due on July 7, 1998. Funding Source: Currently Budgeted Redevelopment Housing Set Aside Funds; E-TX-ED- 968-6-10-00 and E-TX-ED-967-6-31-00. Recommended Action: Motion to: 1. Adopt Resolution No. 'I Ol authorizing funding support by the Huntington Beach Redevelopment Agency with a grant, or reduced sales price, of Agency-owned land acquired at a cost of $885,000 and a loan of $215,000 in redevelopment housing set aside funds for the construction of senior apartments by Retirement Housing Foundation (RHF); 2. Approve and Authorize the Agency Chairman and Agency Clerk to execute the Option Agreement with Retirement Housing Foundation (RHF); 3. Waive the required liability iinsurance for RHF only as they apply to the site control document, and only for purposes of applying for the HUD Section 202 program. This waiver will not be requested if a DDA is approved at a later time; 4. Authorize Agency staff to negotiate a Disposition and Development Agreement (DDA) with RHF, Orange Housing Development Corporation (OHDC), or a special 501 (c)(3) single asset nonprofit corporation as may be required by HUD, if Section 202 funds are awarded to the proposed project. REQUEST OOR REDEVELOPMENT AGEN('Z)Y ACTION MEETING DATE: June 15, 1998 DEPARTMENT ID NUMBER: ED 98.21 Altemative Actions : Do not approve support for the transaction, thereby canceling a Section 202 application at this time. Analysis: On June 2, 1997, the City Council approved entitlements for a 21•unit senior apartment project. At that meeting, it was announced that a Notice of Funding Availability (NOFA) was being released by HUD for the Section 202 program. Shortly after the Council meeting, OHDC informed staff that it would highly recommend that a larger nonprofit apply for 202 funds. While the project scored very well (93 out of 100 points), all of the projects funded from the 1997 round were located in Los Angeles County; many of those received bonus points (up to a maximum of 100) for being located in empowerment zones. For the 1998 round, only two bonus points will be awarded for empowerment zone projects. Also, the other rating categories have changed enough where the Bowen project will have a stronger score. Section 202 Funds The Supportive Housing for the Elderly program (a.k.a. Section 202) is authorized by Section 202 of 'the Housing Act of 1959, and provides financial assistance to private nonprofit organizations to expand the supply of supportive housing for the elderly. HUD administers the.program nationwide through its individual field offices. The funds are provided in the form of capital advances for new construction, or rehabilitation or acquisition of existing structures (purchased from the FDIC only); and also in the form of contracts for rental assistance for a minimum of five years. For Federal Fiscal Year 1998, $27,933,689 in Section 202 funds are available through the Los Angeles HUD office, for a maximum 353 units. Applications (due July 7, 1998) are competitive and awards are based on the number of number of points a project is given on a scale of 0 to 100 points, plus two additional bonus points. Points are awarded by a team of HUD officials based on three broad categories: the sponsor's ability to develop and operate the proposed project; the need for supportive elderly housing in the immediate area; and adequate provision of supportive services. Many subcategories of criteria are included under each broad category such as years and quality of sponsor experience; extent of local government support proximity of a site to shopping, employment, medical facilities, senior centers and other amenities; along with project design and amenities, are some of the factors that are analyzed by HUD. After attending the workshop last year and speaking with several experienced nonprofit sponsors, consultants and HUD officials, it is clear that Section 202 experience is critical to submitting a competitive application. Retirement Housing Foundation (RHF) owns Section 202 and 811 units throughout the nation. While Orange Housing Development Corporation (OCCHC)will coritinue to support the project and will work with RHF, it is recommended that RHF be the 202 applicant. OHDC will have a seat on the board of directors of the single asset nonprofit that will be formed to own Bowen Court if a Section 202 award is made. If 202 funds are not awarded to the project, OHDC would again be the primary sponsor- developer of the project. 98RAMMOC -2- 06/08198 1:26 PM REQUES48R REDEVELOPMENT AGE4 Y ACTION MEETING DATE: June 15, 1998 DEPARTMENT ID NUMBER: ED 98-21 The attached resolution is similar to one previously adopted by the Agency for the past unsuccessful tax credit and 202 applications. A new resolution is needed for the 202 application. Approval of an option agreement is required at this point in order to allow RHF to demonstrate to HUD that a level of site control exists. Retirement Housing Foundation (RHF) RHF has been a nonprofit organization since 1961. In thirty-five years, RHF has become the developer-sponsor, owner and manager of 12,248 units for seniors, disabled persons and low income families located in 129 facilities in 23 states, and in Puerto Rico and the Virgin Islands. Two local projects sponsored by RHF are Donald Jordan Sr. Manor, in Garden Grove, and Laurel Park Manor in Los Alamitos. Because RHF is widely recognized as one of the largest and best run nonprofits, and because HUD favors experienced Section 202 sponsors, its involvement with Bowen Court should make an application stronger and more competitive. RHF counts 5307 units of Section 202/811 senior units in its portfolio as of November 30, 1997. Environmental Status: Not applicable to this action; however, a CEQA review has been completed as part of the pre-entitlement process. Attachment(s): City Clerk"s Page Number No. Description 1. Redevelopment Agency Resolution 2. Option Agreement : . 3. RHF Annual Report ...... :. 4. HUD Section 202 NOFA RCA Author. GAB x8831 9BRAAI.DOC .3. WOMB 1:26 PM u k.) REDEVELOPMENT AGENCY RESOLUTION A�'TACHMElvT T- .......... V RESOLUTION NO. 287 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH AUTHORIZING FUNDING SUPPORT FOR RETIREMENT HOUSING FOUNDATION TO CONSTRUCT AN AFFORDABLE HOUSING PROJECT WHEREAS,the Redevelopment Agency of the City of Huntington Beach(the Agency) has State mandates to construct affordable housing;and Affordable housing is needed to provide housing for our citizens;and Retirement Housing Foundation(RHF)has identified a project site know;m as the Bowen Court Project; and RHF will need to acquire funding assistance from the Federal Section 202 program;and The Agency's funding assistance is required and has been requested by RHF to construct the Project;and Based on the funding assistance,the Agency«ill require a Disposition and Development Agreement(DDA)for regulation of the Project;and A funding commitment from the Agency is necessary to allow RHF to apply for the Federal Section 202 program; and The Agency's funding assistance is available,conditioned upon: 1)RHF receiving Federal Section 202 program funds,and 2)RHF reaching agreement with the Agency on the DDA. NOW,THEREFORE,the Redevelopment Agency of the City of Huntington Beach does hereby resolve as follows: 1. That a grant,or a reduced sales price of approximately$885,000 in Agency- owned land and loan of$215,000 in housing set aside funds as a residual receipts loan(terms to be negotiated) is committed to this Project,conditioned as indicated above. 2. That the Executive Director is hereby authorized and directed to assist RHF in its Section 202 application and to execute any and all documents on behalf of the Agency as necessary or appropriate thereto. I 41s:PCD:Resolution:l3ow en-98 RLS 98-339 6/3/98 Res. No. 287 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY,Clerk of the Redevelopment Agency of the City of Huntington Beach, California, DO HEREBY CERTIFY that the foregoing resolution was duly adopted by the Redevelopment Agency of the City of Huntington Beach at an adjourned regular meeting of said Redevelopment Agency held on the ISth day of June, 1998 and that it was so adopted by the following vote: AYES: Harman, Green,Dettloff,Bauer,Sullivan NOES: Garofalo ABSENT: None ABSTAIN: Julien Clerk of the Redevelopmen&Agency of the City of Huntington Beach,Ca. G/resolud/resUpgMes.ZB I �..✓ U PASSED AND ADOPTED by the Redevelopment Agency of the City of Huntington Beach at a regular meeting thereof held on the 15th day of_ June _ , 1998. Chaff n ATTEST: APPROVED AS TO FORM: Agency Clerk Agen ttorney I�, ��$ REVIE`VED AND APPROVED: INITIATED AND APPROVED: dj I 0 ExecutiveDirector Director'of Economic Development 2 4/s:PCD:Reso1 ution:Bowcn-98 RLS 98-339 613198 u u OPTION AGREEMENT ATTACHMENT #2 V OPTION AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH AND RETIREMENT ROUSING FOUNDATION THIS OPTION AGREEMENT("Option Agreement") is made and entered into as of the "Effective Date"(as that term is hereinafter defined),by and between the Redevelopment Agency of the City of Huntington Beach("IIBRDA",sometimes also referred to herein as "Agency', and Retirement Housing Foundation(RHF),and its assignees or nominees ("Optionee'). RECITALS HBRDA is a public body,corporate and politic,organized and existing under the California Community Redevelopment Law(Health& Safety Code Sec. 33000 et seq.). HBRDA desires to assist affordable housing projects;and Optionee is a California nonprofit 501 (c)(3)corporation which has as one of its purposes the provision of affordable housing for households;and has current extensive experience with the Los Angeles office of the U.S. Department of Housing and Urban Development(HUD) in the development of Section 202 projects for the elderly,which maximizes the chances of an award, and HBRDA is the owner of real property consisting of approximately .75 acres, located at 1968, 1972, 1976, 1978 and 1982 Lake Street in the City of Huntington Beach(the"property"). Attached hereto as Exhibit"A" and incorporated herein by this reference is the legal description of the Property;and IIBRDA desires to assist Optionee in any practical way to develop site as an affordable residential senior project including but not limited to: IIBRDA loans to Optionee in the aggregate amount of$215,000 from sources available to HBRDA and the City of Huntington Beach. Such loans will be made on terms to be later negotiated. Optionee desires to obtain an option to acquire the Property and accept a write down of the sales price of the Property from HBRDA, and HBRDA desires to grant an option to acquire the Property to Optionee,on the terms and conditions set forth in this Option agreement,and thereafter to transfer and convey the Property in order for Optionee to develop 21 one (1) bedroom affordable rental apartment units for seniors only on the Property (the"Project"),and Optionee will maintain a working relationship with Orange Housing Development Corporation,the original nonprofit developer of the Bowen Court senior project currently entitled for the Property. NOW,THEREFORE,the parties hereto agree as follows: 1. Grant of Option. HBRDA and Optionee agree that for the entire"Option Period" set forth in Paragraph 2 below, Optionee shall have the right,but not the obligation,to acquire the property and to accept the grant, or partial grant of the Property subject to the terms and provisions set forth in this Option Agreement. 2. Option Period. The term of the option provided to Optionee by HBRDA pursuant to this Option Agreement shall commence on the Effective Date hereof and terminate at 5:00 p.m. on January 31, 1999, unless sooner terminated as provided herein("Option Period"). However,the Optionee may request an additional six month extension to accommodate continued processing of a HUD Section 202 Capital Advance application. Additional extensions may be negotiated between HBRDA and Optionee,provided that a HUD Section 202 Capital Advance award has been made to the project, sufficient progress in the development application to the City has been made and that additional processing time is needed by the Optionee. 3. Manner of Exercise of Option. Provided Optionee is not in default hereunder, Optionee may exercise its right to acquire the Property by delivering written notice to HBRDA of Optionee's exercise of the option. 4. Failure to Exercise Option. In the event Optionee fails to exercise the option in accordance with the terms hereof by the expiration of the Option Period, or if Optionee delivers to the HBRDA written notice that Optionee desires to cancel this Option Agreement during the Option Period, Optionee shall have no interest whatsoever in the Property and this Option Agreement shall be come null and void of no force and effect,provided, however, Optionee shall, within fifteen(15) days after the expiration of the Option Period, deliver to HBRDA all tests and studies and reports related to the Property prepared by or for Optionee, including but not limited to soil tests, engineering reports, and marketing plans. 5. Terms of Acquisition. Optionee shall acquire the Property and HBRDA agrees to convey and transfer the Property by grant and/or residual receipts note, or at minimal cost to Optionee. the parties acknowledge and agree that the fair market value of the property is $885,000 and the parties further acknowledge and agree that the justification for a grant of the Property at reduced cost, or sale by residual receipts loan, is to allow HBRDA to provide a"land write-down" subsidy to assist the development of this affordable rental housing project for the elderly. As conditions precedent to the Optionee's exercise of this Option, Optionee must obtain approval of its application to the U.S. Department of Housing and Urban Development("HUD") for reservation as more further described below. 6. Award of HUD Section 202 Funds. HBRDA acknowledges that Optionee is submitting an application with respect to the Property to HUD for a Section 202 Capital Advance and Project Rental Assistance Program for an affordable housing project for elderly persons. Within ten(10) days after receipt of notice from HUD as to whether or not the Project has 2 4/s:PCD:Agree:Option98 RLS 98-339 6/3/98 U V received an award, Optionee shall notify HBRDA whether or not the Project has been granted an award of Section 202 funds. HBRDA agrees to fully cooperate with Optionee in fulfilling the requirements for the application for Section 202 funds by taking all necessary actions required of it in connection with the application for Section 202 funds HBRDA further agrees that if Optionee does not receive a preliminary reservation for Section 202 funds,during the Option Period HBRDA will cooperate in subsequent applications for Section 202 funds. 7. Title Policy. Within thirty(30)days following notification by HUD to Optionee that the Project has received a Section 202 award, HBRDA shall furnish Optionee with a preliminary title report from a title company selected by Optionee. Optionee shall notify HBRDA of any objectionable items within thirty(30)days of receipt of the preliminary title report and HBRDA shall use its best efforts to remove such items. Within ten(10)days thereafter Optionee shall either accept the condition of title or terminate the option,provided, however,such acceptance shall not extinguish any rights Optionee shall have to further review subsequent preliminary title reports and request that HBRDA remove items from the title during the period prior to which HBRDA transfers title to the Property to Optionee. 8. Rip ht to Enter. During the Option period, Optionee, and through Optionee its designated agents and independent contractors, shall have the right,upon reasonable prior notice to HBRDA,to enter upon any portion of the Property for the purpose of conducting soil tests, engineering and boundary surveys,environmental studies and hazardous waste determination, and other investigations relating to the Property and Optionee's acquisition thereof and development of the Project thereon,as are deemed necessary and required by Optionee, subject to the possessory interests of any lawful occupants of the premises. Optionee agrees to indemnify,defend,and hold HBRDA,and the Property free and harmless from and against any and all Iiabilities resulting from Optionee's activities as provided in this Section 9, including but not limited to mechanic's liens. Optionee shall provide general liability insurance in the coverages and amounts required by Huntington Beach City Council Resolution No. 6277, and shall name the Agency as an additional insured on all such insurance policies. Optionee agrees to bear all costs in connection with all work performed by Optionee or by others on behalf of Optionee. Optionee agrees to promptly repair within two(2)weeks any damage or disturbance it or its agents or independent contractors cause to the Property and to restore the Property to its pre-existing condition. HBRDA agrees to provide to Optionee all studies, reports,analyses, or other similar documents and information HBRDA may have in its possession and control which relate to soil condition, boundaries,environmental issues, hazardous wastes, and the like. 9. Commissions. HBRDA and Optionee each represent to the other that neither has entered into any agreement or incurred any liability which might result in the obligation to pay a finder's or broker's or sale's fee or commission with respect to the transaction contemplated hereby. HBRDA and Optionee each agree to indemnify the other for the cost incurred as a result of any claim for such fee or commission caused by the acts of the indemnifying party whether or not such claim is successful. 3 4/s:PCU:Agrce:opuon98 RLS 98-339 6/3/98 U U 10. Notice. Any notice or demand to be given by one party to the other shall be delivered by(i)personal service,(ii)a reputable document delivery service such as Federal Express that provides a receipt showing date and time of delivery,(iii) facsimile transmission if confirmation of transmission receipt is available and the original is delivered by one of the other means set forth in this Section 12, or(iv) United States mail,postage prepaid,certified, addressed to the parties as their respective addresses as follows: If to Agency: The Redevelopment Agency of the City of Huntington Beach Department of Economic Development 2000 Main Street Huntington Beach, CA 92648 Attention: Executive Director With Copy To: Agency Attorney If to Optionee: Retirement Housing Foundation 5150 East Pacific Coast Highway, Suite 600 Long Beach, CA 90804-3312 Attention: Executive Director With Copy to: Alan D. Roos, Law Corporation 17530 Ventura Blvd., Suite 106 Encino, CA 91316-3879 Notices delivered by personal delivery document delivery service providing acknowledgment of receipt as described above,or facsimile transmission with confirmation of transmission shall be deemed received on delivery or transmission. Notices delivered by mail shall be effective at Noon on the second business day following deposit with the United states Postal Service. Either party may change the address at which it desires to receive notice by giving written notice of such request to the other party in accordance with the terms of this Section 12. 11. Attorne 's Fees. In the event of any litigation between the parties to this Option Agreement,each party shall bear its own costs and attorney's fees. The prevailing party shall not be entitled to recover its reasonable attorneys' fees and costs. 12. Anplicabie_Law: Forum: Service of Process. This Option Agreement shall be governed by,and construed under,the laws of the State of California. the parties hereto agree that the Municipal and Superior Courts of the State of California in and for the County of Orange 4 4/s:PCD:Agrce:Opdon98 RLS 98.339 613/99 V shall have exclusive jurisdiction of any litigation between the parties arising out of or connected to this Option Agreement. Service of process on HBRDA shall be made in accordance with the requirements for service of process on a public entity. Service of process on Optionee shall be made in any manner permitted by law and shall be effective whether served inside or outside of California. 13. Intemretation. this Option Agreement shall not be interpreted for or against either party notwithstanding any rule of construction that might apply. 14. Waiver or Modification. A waiver of a provision hereof,or other modification of any provision contained herein,shall be effective only if said waiver or modification is in .vriting. and signed by the party waiving its rights. No waiver of any breach or default by any party hereto shall be considered to be a waiver of any breach or default. 15. Successors and Assigns. Optionee shall not have the right to assign its interest under this Option Agreement%,6ithout the prior written consent of the Agency first hand and obtained,which consent shall not be unreasonably withheld. No assignments by Optionee shall be effective unless and until the proposed assignee has agreed in writing to accept the terms an conditions hereof. It is anticipated that HUD will require that all interests under this Option Agreement must be assigned to a newly formed,single asset 501 (c) (3)nonprofit corporation as ultimate owner of the project. 16. Severability. In the event that any provision of this Option Agreement is void, illegal,or unenforceable,the balance of this Option Agreement shall be performed and be enforceable to the extent the same can be accomplished consistent with the intent of the parties. 17. Survival of Covenants. The covenants, representation,and warranties of FIBRDA and Optionee set forth in this Option Agreement shall not merge with any grant deed for the Property. 18. Amendments. The Option Agreement may be amended only by an instrument in writing sighed by all of the parties hereto, after all required actions of the parties' governing authorities. 19. Entire Agreement. This Option Agreement contains the entire agreement between the parties relating to the subject matter hereof. 20. Time of the Essence. Time is of the essence in the performance of the terms of this Option Agreement. 21. Effective Date. The"Effective Date"of this Option Agreement shall be the date this agreement is adopted by the Agency. 5 4/s:PCD:Agrcc:0PGon98 RLS 98-339 6/3198 22. Recording of Memorandum of Option. Upon request of either parry,the parties shall execute and record a Memorandum of Option in a form acceptable to counsel for HBRDA and Optionee. 23. Quitclaim Deed. If this Option Agreement expires by its terms or is terminated for any reason, and a Memorandum of Option has been recorded, Optionee agrees, within five (5) days of request therefore by HBRDA, to execute, acknowledge, and deliver to HBRDA a quitclaim deed and any other documents or instruments required to remove the cloud of this Option Agreement from the title to the Property. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date. OPTIONEE: AGENCY: RETIREMENT HOUSING FOUNDATION THE REDEVELOPMENT AGENCY OF THE CITY O TINGTON BEACH Bw M e Chairin Name—A (type or print ATTEST: Its(circle one)Chairman/President/Vice President AND Agency Clerk By: 7APPROVED AS TO FORM: Name W ep—foz^ (type or print) f./Agency Attorney Its(circle one)Secretary/Chief Financial Officer 1 Arils' ?p Any Assistant Treasurer C',C/ INITIATED AND APPROVED: REVIEWED pAND APPROVED: AV �. �1...��✓► Director of Economic Development Execu a Director 0 'Aa- 6-%�v 6 4/s:PCD:Agree:Option98 RLS 98-339 6/3/98 EXHIBIT A �i Exhibit A Legal Description All that certain land situated in the City of Huntington Beach, County of Orange, State of California and being a portion of the alley of Tract Map No. 13920 recorded in Book 673,pages 14,15,and 16 of miscellaneous maps, in the Office of the County Recorder of Orange County, described as follows: Beginning at the southeast corner of Lot 5 of Tract Map No. 13920; thence south 89°40' 54", 20.00 feet to the easterly line of the alley right-of-way;thence north 00' 19' 18"east,206.71 feet more or less to the southerly right-of-way of Yorktotivn Avenue and also the beginning of a tangent curve concave northwesterly having a radius of 850.00 feet;thence northwesterly along said curve through a central angle of 1°20' 59"an arc distance of 20.02 feet to the northwesterly corner of Lot 1 of Tract Map No. 13920;also the westerly right-of-way of the alley; thence south 00° 19' 18"west, 207.71 feet more or less to the point of beginning. 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" ,� , ILI 4��� * 5"+ L¢ > J yi ' p X ' Retirement`jHousln �Foundation TM Ile *� 1Y99 Annu�lgR�port ,�• 1* 4 wf`ti�, v A if •`�'' ' ! � �' tom`� �g� V��� �� �R ����� ��'��� �e �" � .c R�.d'h �Y' .'�,�"1 ,,,�ya' �tw�',�� r. �,�'.t, t��''"4��,, ': _ �. 'tip nat�.-�... ra Y �9t�. .% s`"�.+ d .�.V '�.4. "Rx'c +w� ''t ,ti"�f+,. �_�' � x s' <s .u�.i i,✓S��a 77777 �+ JL AN N ��' -..�. �_I. .�j ■. `�J .� 11'��+�"' '�.�,{�, e�w•� ,fit, f��•`� ``t - J _ •,'� •✓ •�+l.�k. ���' - :}r ry', ate. 74r, `t�s � ,�� - ' . 'err -!� . C, �� .. .r'� ' ' '`.x• - .,��"� T s�o i of , etirement;tiousmg Foundahon,,, a on �� onpro l organization;is�to .prov;de a range of ; r ^ - ousing;: pions and services for therclderly;,Iow-income:families, ;,f; Y-, • .an personsnAN.ti disaA�vbies;accord ilit 'th ingaoeir.needs;� _. 'tin,an=environmeiit,reinrcin the u ali�j7 aof'life aslit �-�' Al fo elates to=their physical;.mental and spiritual well=being:' E: '- *.rr` � �k �.". • � ' � /, - ; 4, � F �i `ice' 411Ol /�'-•v ,�,, , ,� _ �' y "� �: r + `� - �,•: 5 or All C c'� • F +' 'Q,, - , :. fit- �a. . . Retirement Hous�n({��;Foundattori �_�:: - •�' ;+ : �` s committed to'serving'�its,residents'Vv +handheir.locai commu-nities: t t _ ' i ��RuS : ►{y C) Aar qt t annual xep4rtKV, yerdoi nshowcases residents �ho are,.E �i�•fi aelbusi bfithei _ time, nd �' a 'ts• o imake'their.16 rimunities' ►'b `laces�o li p: Fliniti led its",Resident o�'�`tfie'Year Award . 1, l IV in,"IP97 tto hoC n' r•this•eoinmutment.(The it�gger g arrgy of services AO 4vp Q - . .0.� escribed•herelust� cr_ateL es tbll� �etiaurface of abvast~volunteer effort ,•, �+ "din thecommunitres where o &residents live,►' Zr '], a 4',;° of '•� b ►�,,�. .. l`' ' N s�� he Sacramento alifornia) Bee describe her as a former nurse, receptionist, and bingo caller who runs a weekly Christian fellow. ship, organizes crocheting marathons, gives tours,directs occasional craft classes and serves on boards,advisory committees and special drives. This whirlwind is 83-year-old Arlene Downina,a resident of Gold Country Retirement Center in Placerville, California, and the first recipient of RHF's Resident of the Year Award. Her advice to those who-%ant to age as zestfully as she has: "Be ac_tWt keep .k r blood circulating." r. 7f.�`�yT.`, :�"• ��}.• •yam _�y: r +I 1. ` ��: ' sue'*. • .� • . i:;•� .fit �•. . I. . IX' '= c VAN r I . f . 1•`�- - Rev. Laverne R.Joseph, D.D.,has ,,.!. become a leading spokesperson for affordable housing, testifying frequently before congressional committees and subcommittees. Volunteers Make the Difference his Annual Report showcases some of the many In our 15 market rate sites, we resident volunteers who help to make RHF facilities have 1,979 apartments, 306 "quality of life communities." In addition to residents, assisted living units and 746 there are many other volunteers who are part of the skilled nursing care beds. Of RHF mission -- corporate and facility Board Members, these 131 facilities, 9 with a persons from the cities and towns in which our facilities are located,fam- total of 816 apartments are ily members and friends,local community service organizations,churches, managed for other owners,many temples and synagogues. Our residents, staff and Board Members make of whom we have had the privi- significant contributions to life,not only in our buildings,but also to the lege of serving for more than a communities in which they are located. decade. The grand total of all When one considers that the RHF family consists of 14,000 residents these units and beds is 12,248. and their families, 2,412 staff members and 390 Board Members,plus all Some highlights of the past of the others involved, the combination of those hours and services is 12 months include: tremendous. To all of you, we say a heartfelt "Thank you!" You make ♦ Board Chairperson Jean the difference. Moore Warrick was named RHF continues to be one of the nation's largest nonprofit providers of "Trustee of the Year" by the shelter and services for seniors,persons with special needs, and families. American Association of As of February 1998, we are operating 131 communities in 23 states, Homes and Services for the Ag- Puerto Rico and the Virgin Islands. These facilities consist of 8,856 ing, and received her award at apartments (comprised of 8,143 seniors, 276 special needs, and 437 the annual meeting in New Or- family units), 149 assisted living units and 212 skilled nursing beds in leans. 116 affordable(often federally assisted)buildings. *Dr. Teruo Kawata joined the Board,and Kiku Kawata became a member of the *The Eden Alternative(pets and plants)was initiated Advisory Commission. at several of our facilities. *Board Director Ray East's photo of Mrs. Vir- *For the fifth year, several high school students from ginia 4. Mundy, which appeared in last year's the Long Beach Summer Youth Employment Training Annual Report, received an award from HUD/ Program worked in the corporate office. FHA for representing the quality of life in HUD ♦RHF hosted international visitors from The Nether- housing. lands and The United Kingdom, and Dr. Joseph at- ♦We completed the ownership transfer of An. tended the International Association of Homes and gelus Plaza from the investors to RHF Bunker Services for the Ageing's Bi-Annual Conference in Hill, a nonprofit corporation. Barcelona, Spain, which offered 350 providers the op- ♦Colonial Heights and The Carlin were refi- porrunity of exchanging ideas regarding senior shelter nanced at favorable rates,thereby reducing debt and services. service costs. . ♦%Ve were also a major participant in the Council for *We began a program forJoint Commission on Health and Human Service Ministries (CHHSM) Hospital Accreditation for all skilled nursing Faith's Journey I1 program, which offered college stu- units,with successful accreditation at Sw•anholm. dents an opportunity to explore various health and *Arlene Downing, a resident of Gold Country human service careers. in Placerville, California, was named our first *Capital Needs Assessments were completed on all of Resident of the Year from the many names sub- our HUD subsidized programs. mitted. *The RHF family supported our first national Toy Drive *Assisted living units were expanded at Auburn generously, so that each of the 536 children in our Ravine Terrace and Plymouth Square,and added at Swanholm. At Trinity House and Pioneer House, all residential units were certified for as- sisted living, thus providing more flexibility to 'w -;� accommodate aging-in-place. �„ y•ti:` *'�'`' � , � *We opened,dedicated and filled Rio Vista Vil- lage,a 75-unit family facility in Los Angeles,and acramento, a ZI-unit family Cardosa Village, S. : ;'r; ;',• facility for persons with chronic mental illness. Rio .•:' Ar P �.. 1 � Vista was named a Community of Quality by the 4 r i Pacific Southwest Region of the Affordable Hous- ing Management Association (AHMA) in the >! Exemplary Property/Family category. The final �r financial closing of Cardosa Village also was achieved. �• *We received a HUD award for Olympic Plaza, an $0-unit 202 for seniors in Los Angeles. ♦A wide area computer network was imple- mented and a web page was created and will be refined and expanded in the coming year. *We continued to enrich our employee benefit A •, }'„ package by offering a vision option. ♦The Advisory Commission launched an"Idea Book"concept for sharing of successful programs among property managers. �•`' Stephen j. Margetic •,' ; facilities received at least one toy Appropriations Committee VA, 4-Final financial closing of Rio during the holidays. HUD and Independent Agencies Vista Village. ♦We purchased a small office Subcommittee; was elected Vice- •,Activating the RHF Foundation building which had divided the Chair and continued to serve on to encourage charitable giving. Bixby Knolls property, thus uni- the Board of CAHSA and The necessity for senior,special fying the facility site. CHHSM, and was named Chair needs and family housing and ser- ♦We rolled the RHF Property& of the Stewardship Directorate of vices is so great in our nation,and Liability Insurance Program into CHHSM. Jasmine Borrego, there is decreasing government the CHHSM program, resulting Southern California regional man- financial support for these gro- in lower rates. ager, is also a member of the grams, even though the need is The RHF logo and name were CAHSA Board. Stuart Hartman, recognized. We intend for RHF trademarked. RHFs assistant director of manage- to perpetuate growth by acquisi. *We had another strong year of ment, and Joan Marker, adminis- tion and development to meet the operational performance in our trator at Angelus Plaza in Los An- needs of more and more people. facilities and at corporate. How- geles,are members of the AHMA We ask for your financial support ever, a considerable amount of Board. Stuart is Director of State to help fill the gap, and we en. corporate surplus was used in and Legislative Affairs,and Joan is courage you to continue or begin project development activities, Director of Senior Housing. Ser. your volunteer service so that to- resulting in a smaller bottom line. vice in these organizations affords gether we can make that critical *The Strategic Plan and numer- RHF the opportunity to be in the difference in the lives of so many ous policies, including Travel and forefront of policies and legislation people. Corporate Compliance, were re- of vital interest to residents and our Thank you and God bless! viewed and updated. overall mission. *We continued to work with the Some of the major items we an- Conferences of the United ticipate in the next 12 months d,...� Church of Christ (UCC), include: CHHSM, and ecumenically with 4-A. possible master financing other churches, as well as cities, which may substantially reduce Rev. Laverne R.Joseph, D.D. counties, states, redevelopment the debt service costs with today's President and and housing agencies, the Na. favorable interest rates. Chief Executive Officer tional Affordable Housing Trust, ❖Expansion of our banking rela. and service provider organizations tionships. such as AAHSA, California As- ❖Construction starts on Abbey sociation of Homes and Services Apartments and several other for the Aging (CAHSA), and projects. other state associations, the Af- ❖Expansions at The Gateway, fordable Housing Management Sun City, Mayflower Gardens, Association (AHMA), and the Colonial Heights and Courtenay Stephen J. Margetie National Multi Housing Council/ Springs. Senior Vice President, Chief American Seniors Housing Asso- ❖Continued improvements to our Operating Officer and ciation(NMHC/ASHA). corporate and facility management Chic f Financial Officer *Dr.Joseph continued to serve on information systems. the Board of AAHSA;was re-ap- ❖Staff training will continue in pointed to the Board of AAHSA's order to maintain our commit- subsidiary, the HSA Co-op, Inc.; ment to quality of care in our nurs- again chaired AAHSA's Housing ing and assisted living units, for Committee and testified before the which wve were recognized by U.S. House of Representatives Consumer Reports in 1995. n f i ll X' wy Y.,.. 1 r , 4• tw V I ,. §..W v Willy V:u" "I r -s. Ilv"'x � id i I � Vw �r r�ylul" f - kd µ V=� 1 a - a o - NI r y�N MvVr r, r AP' �I� I a " VI I"INy l�v v 04R IA�M41 Itl:HryP W: to tl w"��v�lV f � ^ v • • • Ayr 5. w vl ko I The Many s Rewards of VoLnteertng Jean Moore Warrick Chairperson Board of Directors retired director of emergency planning Atlantic Richfield Company Carlsbad, California ew of us realize when we begin a volunteer even some financial support. job how much we can receive in return. My relationship with Retire- Being a volunteer is a "profession" some of ment Housing Foundation us choose when we retire. Many people began when a letter which had who have full-time jobs do volunteer work been received by my company's with worthy organizations in their free time. You Chairman and CEO was become a volunteer for many reasons: an organization handed to me by my boss at has a special significance for you; you want to "give ARCO. The letter contained back" the blessings that you have been fortunate an invitation to serve on the enough to enjoy; it is an opportunity to fill leisure Angelus Plaza Advisory Board. time productively; a close friend is involved with the I was told to "go over and find organization and the activities sound interesting; your out what this is all about." employer "suggests" it would be a good idea to provide Eighteen years later, I find your services to a particular organization. Whatever myself on the RHF Board of the reason, whenever you volunteer, you make a Directors, completing my fourth commitment to provide time, service, and perhaps year as Board Chair. „ .. Rex Chapman ” Director retired personnel director ►- .� Procter & Gamble Com- pany ` Sacramento, California r jean Dremstedt i 'Director member of several nonprofit boards of directors ' Evansville, Indiana I feel incredibly fortunate that, inas- and services for the elderly, for low-income much as I decided to become involved in families and for persons with disabilities. volunteer work, my association has been The mission is pursued with vigor and with Retirement Housing Foundation. enthusiasm. We do not stop with merely What I have gotten back from this providing housing -- caring and concem organization far exceeds whatever I might for the comfort, safety, quality of life and have given to it. spiritual well-being of our residents are The RHF mission is to provide housing uppermost in our minds. Involvement with i, Since our corporate headquarters is loca- ted in Long Beach, we decided to use the 'r- 0(t. historic Rancho Los Alamitos as the back- drop for our Board photographs. The _ ' r tong-inhabited hilltop reaches back into antiquity, around 500 h.V.,'when Native Americans established the village of Puvungna. The-adobe core of the house i Cleft) was built more than 1200 years later as a shelter for vaqueros and livestock on the land grant given Manuel Nieto in 1790. Over time, the rudimentary struc- ture evolved into a large, comfortable dwelling with four thematic gardens. Raymond E. East Director Y F senior graphics engineer w. F WRC-TV '� x.• ' y � Washington r District of Columbia _ Rev. Dr, Teruo Kawata Directors! former General Secretary and Conference Minister Hawaii Conference former Conference Minister "�J ' Central pacific Conference United Church of Christ Volcano, Hawaii an organization with such heart is a splen. expected to find. Visiting the RHF facili- did experience. ties and talking to the residents are two of During the year, the Board visits a num- the highlights of our Board's activities. ber of our communities. We talk with the The camaraderie among Board members residents and visit with them in their apart- is gratifying. We work together, we learn ments. Again and again, we hear how they from and respect one another, and we have had been living in substandard housing, mutual affection. Sometimes we even paying more rent than they could afford, disagree with one another, but those dis- and facing an uncertain future. Then they agreements are resolved amicably because heard of a local RHF community, moved we are brought together in our common in, and are now living a life they never goal -- guiding the organization in the Donald W. King Vice-Chairperson founder .' Don King Reporters Sacramento, California �t r Tom S. Masuda �- Director " real estate appraiser vice president Yuri Incorporated Gardena, California M Christina Potter Director +. real estate developer [.yndonville, Vermont - - William E. Rader, Ph.D. Director r retired microbiologist w Shell Development �= Biological Sciences Modesto, California fulfillment of its mission. tary fear that I might not be able to find Another factor that makes me proud to enough material to fill up the time. When be associated with RHF is that of the I gave my talk, I found I was still going competence and dedication of the staff. strong at the end of a half hour, with more An organization is only as good as its staff, that I wanted to say. It made me very and I feel privileged to work with the high aware of how much pride and pleasure I quality personnel ive have at the Foundation. have in my relationship with RHF. Recently I was asked to give a speech to Thank you, Retirement Housin Foun- a local Rotary Club about Retirement dationI I I Housing Foundation. When I was told I had 20 minutes to speak, I had a momen- dean Moore Warrick 7 Chairperson,Board of Directors John E. Trnka, 'D. Mtn. ,40 (� _ "= Vice-Chairperson retired united Church of Christ clergy Evansville, Indiana 1 Merrill D. Whittier Treasurer retired computer specialist California Department of Social Welfare Sacramento, California V 1978 Longfellow Plaza Pioneer Towers Anderson, IN C 1965m 1998 Sacramento, CA *Pioneer Congregational Monona Meadows United Church of Christ Monona, W1 *Trinity Cathedral *Ecumenical Housing, Inc. Plymouth Tower Episcopal Church Riverside, CA Westminster Health *First Congregational 1979 Care Center Church of Riverside Auburn Ravine Terrace Westminster Village Auburn, CA Kentuckiana 1971 *First Congregational Clarksville, IN Bixby Knolls Health Care Church of Auburn and Rehabilitation Center 1985 Long Beach, CA Pilgrim Tower East— Budlong Manor* ' Pasadena, CA _ Lakeview Terrace, CA Mayflower Gardens Convalescent Hospital 1980 Charles Major Manor Lancaster, CA Mayflower Gardens If Shelbyville, IN Lancaster, CA 1972 Culver City Rotary Plaza Greenfair ABC" Southpointe Villa* Culver City, CA Greenfair DCW.. Rialto, CA (Culver City Rotary Club Sacramento, CA 1981 Donald Jordan Sr. Manor 1973 Angelus Plaza Garden Grove, CA Wong Center* Angelus Plaza North (Acacia Adult Sacramento, CA Los Angeles, CA Day Services 1974 Crooked Creek Tower Lake Ella Manor 9 Greenfair Tower It** Indianapolis, IN Tallahassee, FL I�I Sacramento, Ci4 4 Southdale Tower Pioneer Manor Pilgrim Tower North— Anderson, IN Geneva,NE Pasadena. CA (first Congregational •Cosponsor 1982 United Church of Christ `Third Party Ralston Tower The Heartland Management Modesto, CA Peoria, IL Redding RHF Housing -Syndicated Projects (First Christian Church Butte Home *Trinity United Presbyterian Plymouth Place Cottonwood Home Church Stockton, CA Redding, CA 1965 *St. Paul's Episcopal Church Mayflower Gardens (MACHCO) Yellowwood Terrace Round House Manor Lancaster, CA Clarksville, IIV Kaukauna, VVI 1975 *Immanuel United 1966 Sun City Gardens 1983 Church of Christ Bixby Knolls Towers Sun City, CA Diakonfa Housing f *Kaukauna Long Beach, CA Rancho Cordova, CA Assembly of God 1976 •Peace United Pioneer House Harbor Tower" Diakonia Housing I Methodist Church Trinity House San Pedro, CA Sacramento, CA Sacramento, CA *Christian Methodist The Village *Pioneer Congregational Episcopal Church-Warren Marple Manor Congregational United Church of Christ Chapel Modesto, CA Community` *Trinity Cathedral Episcopal *League of United Latin *MACHCO Arvin, CA Church American Citizens West Valley Tower' 1986 1970 MacArthur Park Tower" Van Nuys, CA 300 Main Plymouth Square Los Angeles, CA Estacada, OR Stockton, CA 1984 *ffousing Options of *First Congregational Gold Country Clackamus County Church of Stockton Health Care Center Placerville, CA Anciano Tower Montrose, CO 01 Booker (The Duke) �Washington, a resident at � 741 V ��Bishops GlenWilshire Rouse in Santa `�"^� 4�yMolly Hill,FL ., r t , Monica, California, volun- _ `' Carbon Creek Shores 4 Anaheim, Ca teers every day at the : : *Dayle McIntosh Veterans Hospital there. h Center for Disabled retired musician, he played ' The Carolinian trumpet with the legendary Florence, SC Charlie Bird and Dizzy Gold Country Gillespie, and counted as Retirement Center Placerville, CA friends such greats as Ella Fitzgerald, Sarah Vaughan, University Center Great Plains Housing Y North Platte, NE Billie Holiday and Malone Manor Indianapolis, IN *Great Plains Mental Lincoln, NE *University Health Center Billy Eckstein. O-Wilone Methodist Church Community Center LaFontaine Center Villa at Sacred Heart" Huntington, IN Pauahi Kupuna Hale Indianapolis, IN *Historic Landmarks Lomita Kiwanis Gardens Honolulu, Ill Foundation of Indiana lomila, CA Pinehurst Apartments Vista Lee Rosa" (Lomita Kiwanis Club Palestine, TX Harbor City, CA Vistas Pinewood Manor Van Nuys, CA Bremerton, WA *Valley #tilt. Zion Baptist Church Presbyterian Hospital San Jacinto Manor 1987 San Jacinto, CA Centennial Manor Boise, ID St.Mary Tower* *University Christian long Beach, CA Church Colonial Heights Swanholm Nursing and Florence, KY = ; Rehabilitation Center St. Petersburg„ FL Courtenay Springs Village Alerritt Island, FL 44 _ Making Greater Cincinnati visitors feet welcome is one of the joys of volunteering forum Mart, who has lived at Colonial Heights in Florence, Ken- tucky, for two years. Re works with Travelers'hid several times a week at the airport, answering �. questions and finding translators for non-English •J'r " � �, speaking visitors. He also is a tour guide on the weekends at the Dinsmore Homestead, a restored 1840 farm. Before retirement, he was resident of - p . _ and owned the Hart Coffee Company which his a - father started in 792.9. During World War ii he _,. was part of the Army Counter Intelligence Corps. Members of The Baby Club of River- side enjoy their monthly visits at Plymouth Tower in Riverside, CA, The residents help them with craft "1 -i, projects, work puzzles, read stories, make valentines and other holiday items and give and get hugs. Pic- '{ ` ' _ tared from left are: lordie Gerrard, i'z.� Martssa Oberhelman, Alexis 1A A � nartman, and Taylor Harrison. t ? Mill Pond Manor Saline,AN L _'= ICvangelical Homes of Michigan The Gateway Cimarron Court Escalon Heritage House Poway, CA Kearney, NE Pecan , TX Place Bonham, Escalon, CA ISaron Lutheran Church Guadalupe Senior The Concord lla Ifscalon Christian Apartments Pasadena, CA Los n g leg, Reformed Church Denver, CO Los Angeles, CA IEscalon *Del Norte Neighborhood Gaslight Apartments CKorean American Presbyterian Church Development Corporation Converse, IN Christian Evergreen Assn. Kokomo 01G Inc. Fajardo Elderly Maple City Square Villa Nueva Apartments La Porte,IN Lakeview Manor Los Angeles, CA Fajardo, Puerto Rico *St. Paul United Storm Lake IA Church of Christ Winslow Manor Madison Church Hills Estates 1Vrnslow,AZ Heritage Apartments Marymount Manor Glenwood, IA Yorkshire Place Madison, IN Tacoma, WA tMadison *Sisters of St. Dominic Miracle Manor Cape May,N� Presbyterian Church Edna, TX Olson/Rotary Village 7991 Mission Palms Delano, CA Westover Manor Crescent Manor Mission, TX eDelano Rotary Club Cedar Rapids, IA Mesquites TX Pilgrim Place Richardson Manor 1990 Kemet House Mason City, IA Milwaukee, IVI Bennett Place Chesapeake, VA Wirst SWA1C0 Handicapped Pittsburgh, PA Congregational Church Housing, Phase It, Inc. OAction housing laurel Park Manor IlQperation Better Block Los Alamitos, CA Prairie Grove Apartments Vacaville Autumn Leaves East Prairie,MO Vacaville, CA Capital Court Mesquite Gardens (East Prairie OCalifomia Grange Corydon, IN Afesquite, TX Chamber of Commerce 011oosier Valley Economic Opportunity Corporation Towne Creek Apartments Redding Pilgrim House 1989 McKinney, TX Redding, CA Anaheim Memorial Manor Grace Place Anaheim, CA Norfolk, VA Verde View River City Residence Club S.-Anaheim Memorial Camp Verde,AZ Sacramento, CA Hospital La Mirada Vistas *Transitional living and La Mirada, CA 1992 Community Support, Inc. Camelot Village Adam and Bruce Council Bluffs, 1A Lindsay Place Apartments 1988 Lindsay, OK Fort Wayne, IN Dogwood Apartments Casa de Pinos •True Love Missionary Milledgeville, GA Prescott AZ Baptist Church New Hampshire Harry and Jeanette Haven 502 Apartments 1998 Apartments Weinberg Apartments Los Angeles, CA (Under Construction) Los Angeles, CA ffonolulu, HI Creekbend Gardens Granada Gardens Houston, TX Stone Creek Village 1994 Granada dills, CA Phoenix, AZ Coralico Place (In Closing Process) Ephrata, PA Rio Vista Abbey Apartments Valley Yew Apartments *Bethany United Apartments (formerly Mann Village) Manitowoc, 1V1 Church of Christ Los Angeles, CA Indianapolis, IN Los Angeles Neighbor- Wilshire House 1996 hood Development (Proposed) Santa Monica, CA The Carlin Corporation (LANDCO) Amistad Plaza Arlington, VA Los Angeles, CA 1993 Cardosa Village Sunny Isle Housing Las Casas Apartments' Sacramento, CA Angelus for the Elderly San Gabriel, CA •Transitional Living and Plaza East Christiansted, St. Croix Community Support, Inc. Los Angeles, C4 ' The Virgin Islands 1997 Haven 501 Apartments Carbondale Virginia Park Apartments Los Angeles,CA Carbondale,IL Des Moines, lA Hollyview While many of our residents "cast their bread upon the waters;others Hollywood, CA reap the benefits of a talented volunteer like artist Dorothy Allinger. Olympic Plaza She became interested in Swanholm Nursing and Rehabilitation Cen- Los Angeles; CA ter, St. 'Petersburg, Florida, when she learned that her friend, Gloriajeannotte, wanted to do some redecorating there. (Gloria's husband, Paul, is the administrator at Swanholm.) Dorothy painted several large murals for the hallways of the ,� + `�_A assisted living wing and currently is working on a mural for the - _ • dining room. "Dorothy's colorful and animated paintings re- ' % Elect her feeling for life,"said C7loria. "Fier motivation was the need to give back what she has received in life." Ic 04 .. •. � '�� - ,, +•/: - ! jai fi� •. �. .� � _�;'��-�• '' 'ice, 1[ I . RHF Corporate Financial Statements (excludes facility operations) Consolidated Balance Sheet Consolidated Statement of Revenues and Expenses as of November 30, For The Years Ended November 30 (000's omitted) (000's omitted) Change 1997 1996 More Less 1997 1996 Assets Revenues Current Assets $23,695 $ 14,937 $ 8,758 Management Fees $ 7,657 $ 7,134 Long Tenn Investments 11,482 18,248 (6,766) Interest Income 554 419 Land,Buildings,Equipment 589 229 360 Other 408 790 Other Assets 29,346 22,915 6,431 Total Revenues 8,619 8,343 w Total Assets` $65,112 $56,329 $ 8,783 Liabilities and Fund Balance Expenses Current Liabilities $10,221 $ 3,672 $ 6,549 Personnel Related $ 3,802 $ 3,383 Long Term Liabilities 16,383 14,198 2,185 Development 1,767 733 Subtotal 26,604 17,870 8,734 Other 2,099 2,520 Total Expenses 7,668 6,636 Fund Balance* 38,508 38,459 49 Net Unrestricted Surplus 951 1,707 Total Liabilities and Fund Balance $65,112 $56,329 $ 8,783 Net Restricted(Expense) (902) (444) `Total Assets and Fund Balance includes restricted balances of Net Surplus $ 49 $ 1,263 $19,103 and$20,005 in 1997 and 1996,respectively. The report of our independent accountants is included in the audited financial statements which are available from the RHF Coporate office. Highlights Management Fee Revenues Cash and Equivalents $7,000 $10,000 r�r.. $7,600 :• $8.000 $9.758 $7,400 s7,867 p" 4e,849 $7,200 $6,000 $7.447 $7,000 $4,000 na9a $6,800 $2,000 ~�� $6,600 ; 4 a $6,400 $0 (009•.onmted) 1997 1996 1995 1000•.mmn.d) 1997 1998 1995 Personnel Costs Total Assets $5,000 $70,000 $4,000 $4,1e9 $65,000 $3,000 $9,802 ' $3,383 886,772 $2,000 $60,000 .. $1,000 $55,000 �68,928 066,298 $0 $50,000 (000'.omitted) 1997 1996 1995 (0o0'.omitted) 1997 1996 1996 Housing Information Distribution Distribution of Housing Units/Beds by State/Territory AZ 162 CA 7,509 CO 86 FL 946 GA 40 HI 82 a �m ID 40 * - IL 150 m IN 1,363 x' "� x,.a. any'' i Y' R KY 173 MI 48 r 36 } N EO 116 NJ 55 OK 30 " a 5j OR 26 Y 4 PA 113 PR 60 .x a Sc 145, '^rWs,, VA 240 VI 55r WA 79 e , Wl - 196 :`P{ Legend: - 0 0 , o � Greater than 1,500 Units � qb 750, to 1,500 Units IM 100 to 750 Units E° • "Total RHF Housing Units/Beds Equals 12,248 0 to 100 Units ❑ Financing Programs Housing/Services Programs Tax Credit(237) HUD 202 Conventional/ Section 8 Bonds(3,031) s fis ,,z<, (4,578) (7,562) CHFA/ FmHA ti Non-Subsidized L.A.CRA/ „ a (3,590) +.a x •a RHF(859) Tax Credit(237) HUD 2211811 HUD 236(1,712) HUD 231(879) (729) RHF(859) Total Units/Beds:12,248 (#Units/Beds) Total Units/Beds:12,248 (#Units/Beds) c Senior Housing Special Needs Housing Skilled Nursing Mobility Impaired Assisted Living (208) Family(437) - ,. (455) - Residential � rs - (10,122) Developmentally - Chronically Disabled(12) Mentally lit(56) Total Senior Units/Beds:11,535 (#Units/Beds) Total Special Needs Units/Beds:713 (#Units/Beds) t -,.• � `��(f •�� 3 " �'' i ski'rt�Rf7�I �7 r r } ' ,tee.'-*+>-• �; l • RT,)�• • 1 • � � � 1 i � �I 414 Ile It OF Af Ar Y� 1 ti UV r � �►w4• tea•' �!' S 1 '�' 4. � Y. �. � �`* Ar•� S`1��'. .�i' �~ •� a •�•�.�`�� � ,�_� •tif u v Rammoth (Chubby) Mohansingh, a resi- dent of Sunny Isle Housing in St. Croix, Christiansted, the Virgin Islands, inspires his friends and neighbors by performing with the Troupe-Samba Carnival Brazil- ye in local style parades. He has used crutches • • p �. 4F7F E . . since he was a small child. (Photo courtesy Gary McCracken, The Daily News) W 1 th, C-Trafitude . n 1996,RHF launched its first toy collet- `�►,.'i tion from corporate office employees for youngsters living in our Southern Califor- r' nia facilities. In 1997, we expanded the drive to include all of our family commu- nities and Collected toys, checks and cash from our facilities throughout the United States and Puerto Rico. Toys, checks or cash totaling 252 toys and more than $1,000 were received from nearly all of our corporate office employees, 100 percent of our national Board Members, and the following facilities and churches: The Carolinian, Florence, SC Adam and Bruce Apartments, Ft. Wayne, IN Cocalico Place, Ephrata, PA Budlong Manor, Lakeview Terrace, CA Continued on next page Edith (Elie) Isbell, a resident of Longfellow plaza in Anderson, Indiana, has been the chef at the Christian Center Rescue 1p� Ministries in Anderson for almost eightyears. She cooks forasmanyas 6o people every day. Inan interview for the Anderson Herald Bulletin, E.die told reporter Theresa Campbell that the homeless shelter is an "uplifting place to be,"not at all gloomy and depressing. "Everyone (here) needs a hug. My day doesn't start until I get my hugs." The 78 year-oldgreat grand- i mother walks to work every morning from her apartment seven blocks away, and cooks everything"from scratch. That means real mashed potatoes instead of boxes of instant,"the article said. She prepares lunch and then helps get ready for dinner before turning over the kitchen to a helper at 4 p.m. "I had about 60 years'experience before I came here, "she says, '� "cooking for my husband and six children." i; fib &�artment heads (from left)Joanne Silva, Accounts payable Manager; M). 1 Lemire, Director of Field Accounting; Nadi Battaglia, Human Resources Manager; and Gary Thiel, Director of Reimbursement. Not pictured is Christopher Dominguez, Director of Management information Systems. Margaret Boyd,Mickey Culbertson, Geraldine Elgin, June Graves, Bernadine Miller, Continued from page 19 Cenaida Chamia Marjorie Nowell and Marjorie Escalon Heritage House Fajardo, Puerto Rico Werner, all of bong Beach, CA. Escalon, CA Delores M. Kiefer, Monona, WI Fajardo Housing for Maria Marimba, Pasadena, CA Your Will the Elderly Alexander J. Nweeia Fajardo, Puerto Rico Long Beach, CA A bequest through your Gold Country Health Care Madeline Paynter will can significantly aid Center, Placenille, CA Cape May, NJ Retirement Housing Foun- Greenfair Apartments Ramona Ponce, Los Angeles elation in its continuing mis- Sacramento, CA Chuck Stevens Harbor Tower, San Pedro, CA Long Beach, CA Sion of service to the aging LaFontaine Center Resident June M. Viator, Ephrata, PA of our society. A bequest Association, Huntington, IN Irene M. Welch may be made in the form of Haven 501 Apartments on Granada Hills, CA a stated amount,%of estate, Madison, Los Angeles Joseph C. Wells, Los Angeles or remainder of estate. MacArthur Park Tower Onalee Kleinman, Evelyn M. A bequest provision that Los Angeles Marshall, Jessie«: Olson and you may wish to use is: Plymouth Place, Stockton, CA John E and Mary E. Zenner, all "I give,devise and bequeath Plymouth Tower of Tacoma, WA $ (or%of estate) to Re- Riverside, CA Leah Charles, Mon-Yang and tirement Housing Founda- Southpointe Villa, Rialto, CA Der-Fan Chang. Ting Hwa and tion, a not-for-profit corpo- Round House Manor Hsia Tong Li Shao and Tseng- ration, located in Long Kaukauna, IVI Yi and Huei-Liean Tsaur, all of United Christian Parish Sacramento, CA Beach, CA." Your bequest Vienna, VA Individuals who volunteered may be restricted by you for Villa Nueva Apartments their time to wrap gifts, in addi- a specific facility, usage, or Los Angeles tion to the St. Mary Tower RHF fund. (Consult your Individuals who contributed residents pictured on page 18, attorney.) time or money were: were: Alicia Bustamante and Please contact our corpo- Paula Armenta, Los Angeles Michelle DePalmo rate office for information William R. Boyd, Los Angeles Norwalk, CA about cash, securities, real Jean E. Buxby estate or other forms of tax- North Cape May, NJ deductible gifts. okai Bank of Linda i..istoe, California and Vice president of the ARCO Corporate Foundation, Services and both headquar- Corporate tered in Los Angeles, made Secretaiy, and 1' generous donations this year. Robert Amberg, The ARCO gift, on behalf of Vice-president x, i Jean and Bill Warrick, will be used to develop an "Idea and Genera! Book" by RHF's Advisory Counsel. in the Commission. ARCO made background(left) , an additional contribution on is a photograph behalf of Jean and Bill's •of award-winning volunteer service to RHF. Rio vista Village. # The Warricks also made (See page S.) substantial gifts to RHF's Resident Benevolence Fund. the 148-unit retire, Farmers and Merchants ment community Bank of Long Beach, CA, and its residents' presented a generous gift to contributions to the St. Mary Tower in Long City of Long Beach. Beach, CA, in appreciation of Corporate leadership staff(from left, standing) Stuart Hartman, Assistant Director of Management; F sally Wright,public Relations rl Manager;William R.Niehoff, r� Market Rate Operations Director; 'and Scott Fredrickson, Director of 1} i w Treasury. Seated(from left) Kendra Fauth, Assistant ' Director of Market Rate OP- erations;RichardT.Washing- ,� ton, Director of Manage- ment/Development, and "wt Charlotte Newcomb, Con- trotter. Not pictured is " = Wanda Counts, Manager of r.�..�! Administrative services, Ex-ecutive Secretary and Assis- {! tint corporate Secretary. L V • 1 I f • I Resident Benevolence Funds • Jane Bowen, Long Beath, CA, in William C.Kelly,Jr. Rev.Dr,John E.Trnka memory of Ernest F. Frank and Washington, DC Evanstille, IN Carl Kopines William H. and William and Jean Warrick Jean G.Dremstedt Elizabeth W. Moncrief Carlsbad, CA, in memory of Evansville, IN Tallahassee, FL Herbert Slack Pauline M.Geimer Alice Munoz,Los Angeles Sally Wright, Long Beach, CA, Placerville, CA Charlene J. Peck in memory of lVilliam Bogart First Congregational Church Shelbyville, IN Once again, thanks to all of Fullerton, CA Katharine J. Scanland, you for believing in and contrib- Pablito 1. llano, La Mirada, CA Encinitas, CA, in memory of uting to the success of our Rev. Laverne and Rca. Robert H. Scanland, Mission, and for helping us live Virginia Joseph former community relations up to our Motto: Lang Beach, CA director of RHF Committed to Service Rev. Dr. Teruo and Seaside Community United Dedicated to Excellence Kiku Kawata Church of Christ, Enhancing Quality of Life Volcano, HI Torrance, CA RF's Advisory Commission assists with the implementation of projects that enhance the quality of life for RHF residents and staff. Buni t .` Rader(center) is chair- . "y person. pictured (clock- ' r wise) are Gertrude Chapman, Caroline East, VirgintaJoseph, Kiku Kawada, Rev. Dr. Robert Potter, Shirley Ann , *s a Trnka, Lucile Whittier is F and William Warrick. Yuri Masuda is not pictured. g �, S.p 1 qw- FA-?C RETIREMENT HOUSING FOUNDATION � Corporate InformatiQgr�'' x Office rs k - Jean Moore Warrick, chairperson �sY Joh "T. Trnka, D. Min., vice-chairperson .. Donald W. King, vice-chairperson � ,averne R.Joseph"D I) , president and CEO Merrill D.Whittier, treasurer Linda^Listoe, corporate secretary Wanda Counts, assistant secretary Northwest Office° - Corporate Office- 331 "J" Street, Suite 150 41 5150 East Pacific CoasvHighw4y, Suite 600 Sacramento, California 95814-2214 Long`Beach,California 90804-3312 (916) 558-4840 • FAX(916).558-48.43 (562) 59745541 t_.TFAX (SG2 597=6641 k Online `http //www.rhf.or : '` Southwest Office ' g 2967 Meadowlark Drive dwest`Office .., r Prescott Valley, Arizona 86314-2256 (5 ) 772-5070 FAX 20:�80G0 North Knue Read, Suie`'128��:- � 20 (5 ) 772-4121 - Indianapolis, Indiana 46z�50-1978 017) 577-1970 FA .(317)1577-1978 Independent_ Auditors AIN - CORBIN &WERTZ g s` vx forth Central Office _4 ^? Certified Public Accountants 28Q9 Jack Pine Streeza= 2603 Main Street, Suite 600 $eii"evue, Nebraska 6812 5512 Irvine, California 92614 (402) 292-8969 • FAX(402)X�A92-2039 (714) 756-2120 FAX(714) 756-9110 C` ` ... ; NJ r ^;L i . I }• III "' •µ `'•#` }� i Retirement Housing Foundation # ,� '•r 5150 East Pacific Coast Highway, Suite 600 Long Beach, California 90804-3312 (562) 597-55411FAX (562) 597-6641' TDD (800) 545-1839 6xt. 359 1 •/ Online C� httpalwwvW.rhforg - /f"f/ HUD SECTION 202 NOFA ATTACHMENT #4 i `11ti�11� n11 rri fit If i1111� 1I 1=11r1t� 1firnt� 1111l11 �ff�111,111111ift, ni (till 111111 11 11 pint nt p11ti�iil If ji oil 11n11t 0111r 11 ififfl{If� / tfffffll�llh [fill IiRRt �Il�1 h �111 ;hIr"119111 1 1111161 tttid rr �hnf� I nil l ,tlet11 itf m 1r1 h 11111f 81 iul li unit Itt m ,ft1111ff1,1 M m N _ � vsv ; 0 o n o CD s� CDN2) N .1 CD QU3 CD fD O �1 T C -ON rM Cr a a 11048 Federal Register' jol. 61, No. 57 Jr Friday, March 22. 19,, J Rules and Regulations DEPARTMENT OF HOUSING AND nonprofit consumer cooperatives in ilia B.June 12,1991 Interim Rules URBAN DEVELOPMENT development of housing projects serving On June 12,2991.HUD published in elderly or handicapped families and the Federal Register two interim rules, 24 CFR Parts 885,889,890,and 891 Individuals.Loans made underpart 885 one for the Section 202 Program of [Docket No.FR-394t-F-011 were used to finance the construction or Supportive Housing for the Elderly(56 substantial rehabilitation of projects for FR 27104)and one for the Section 811 RIN 2502-AG5t elderly or handicapped families.or to program of Supportive Housing for finance the acquisition with or without persons with Disabilities(56 FR 27070). Office of the Assistant Secretary for moderate rehabilitation of existing The Interim rule for the Section 202 Housing--Federal Housing housing and related facilities for group program(56 FR 27104)provided for the Commissioner,Supportive Housing for homes for nonelderly handicapped continued applicability of part 885 to the Elderly and Persons With individuals, projects for which Section 202 loan Disabilities HUD published two interim rules in reservations had been made in fiscal AGENCY:Office of the Assistant the Federal Register on June 12,2.991 year(FY)2990 and prior years,and to Secretary for Housing—Federal housing (56 FR 27070.27104)establishing the add part 889 establishing the new Commissioner,HUD. Section 811 Program of Supportive Section 202 Program of Supportive ACTION-Final rule. Housing for Persons with Disabilities housing for the Elderly and enabling FY (24 CFR part 890)and the Section 202 1991 funding for the program.The SUMMARY:This rule represents the final Program of Supportive Housing for the interim rule for the Section 811 Program rulemaking for HUD's Section 202 Elderly(24 CFR part 889).The Interim (56 FR 27070)added a new part 890 Program of Supportive Housing for the rule for the Section 202 Program(56 FR establishing the new program for Elderly and the Section 811 Program of 27104)also amended part 885 and persons with disabilities.These two Supportive Housing for Persons with provided that part 885 would continue interim rules contained very similar Disabilities,both of which HUD has to apply to projects for which Section provisions.As stated in the preambles previously implemented through several 202 loan reservations were made In to both rules(56 FR 27070.27104).1IUD interim rules.As part of President Fiscal Year(FY)1990 and prior years. Intended to establish additional Clinton's regulatory reinvention The rule further provided,however,that requirements for the supportive housing initiative,this final rule also projects for the elderly selected for programs in separate rules. consolidates and streamlines the funding in FY 1991 and subsequent HUD received 19 comments on the regulations for these two programs in years would be covered by part 889. interim rule for the Section 202 order to make them easier to use and Since no new projects are being funded Program,and 24 comments on the understand.This rule also eliminates under the regulations In part 885.many interim rule for the Section oil obsolete regulations from 24 CFR part of the provisions in that part that do not Program.IIUD responded to some 885 regarding the Loans for housing for apply to the continued management of objections raised by commenters by the Elderly or handicapped Program, the projects are unnecessary,and HUD changing the program requirements in and moves the remaining provisions to can remove them from the Code of the subsequent interim rules discussed a subpart within the consolidated Federal Regulations. below.The following discussion supportive housing regulations. Therefore,this final rule removes summarizes the other comments and Furthermore,information that is also in several definitions from§885.5.Second, provides HUD's responses to those the statute of that should be more this rule eliminates§§885.200 through comments. appropriately placed in the program 88S.405 and§885.415 regarding handbook or in Notices of Funding projects that received reservations under 1.Definition of"Acquisition" Availability(NOFAs)has been deleted section 202 of the Housing Act of 1959 One commenter objected to the from the regulations. and housing assistance under section 8 definition of"acquisition"in the EFFECTIVE DATE:April 22,1996. of the United States Housing Act of interim rule for the Section at Program FOR FURTHER INFORMATION CONTACT: 1937(202/8 projects).No new 202/8 (§R90.1o5 of the interim rule.§891.305 Linda Cheatham.Director,Office of projects will be funded.and all of the of this final rule).This definition Multifamily Housing Development, projects have either closed or been provides that properly other than from Department of Housing and Urban converted to capital advances under the Resolution Trust Corporation(RTC) Development,451 Seventh Street SW., either part 889 or part 890.Third,this is only eligible for acquisition if at least Room 6134.Washington,DC 20410. rule eliminates many sections in subpart three years have elapsed from the telephone(202)708-3000.(This number C of part 885 regarding projects for completion of ilia project or the is not toll-free.)Bearing-or speech- nonelderly handicapped families beginning of occupancy to the date of impaired persons may access that receiving reservations under section 202 application.The commenter argued that number by calling toll-free the Federal and project assistance payments under IIUD should eliminate this limitation. Information Relay Service at(800)877— section 202(h)of the Housing Act of Since:it is beyond the intent of the 8339. 1959(202/162 projects).No new 202/ statute and it denies the opportunity for 162 projects will be funded,and all acquisition of newer properties except SUPPLEMENTARY INFORMATION: existing 202/162 projects have Closed or through the RTC. 1.Background have been converted to capital advances HUD Response:I IUD agrees and is under part 890.Fourth,this rule will removing the three year requirement. A.Loans for Housing for the Elderly or also remove other definitions and Furthermore.HUD is removing the Handicapped.Part 885 provisions from part 885 that are merely prohibition against acquiring property Under section 202 of the Housing Act explanatory or duplicative.Lastly,this to use as independent li -*•-•- r......•' s. of 1959(12 U.S.C. 1701q)and the rule moves the remaining provisions Previously.ac quisitic,n without regulations at 24 CFR part 885.HUD from part 885 to subpart E of the new rehahilitatiorr was limited to group provided direct Federal loans to assist streamlined regulations for the homes and property from the Resolutio- private,nonprofit corporations and supportive housing programs. 'Trust Corporalorr. Federal Register / Vol J. No. 57 / Friday. Marcli 22, 199G / � and Regulations 11949 2.Definition of"Independent-Living and Illegally use or are addicted to provisions by permitting the Sponsor or Facility" controlled substances). its nonprofit affiliate to contract for a fee 117JD Response:HUD has consistently with the Owner to provide management Three commenters objected to the used a definition of"person with services and/or supportive services. definition of"independent living disabilities"for the Section 811 Program Furthermore,attorney's fees can be paid facility"In§690.105 of the Interim rule and its predecessor,the Section 202 from project funds,unless the attorney for the Section 811 Program.The Program,that excludes persons whose is an officer or board member of the .definition limits projects for persons sole impairment is alcoholism or drug Sponsor or Owner.The same restriction with chronic mental illness to addiction.In other words.drug or that applies to other development team occupancy by 20 such persons.The alcohol addiction alone is not a members also applies to attorneys.As commenters argued that the statutory qualifying condition for occupancy in part of HUD's efforts to simplify the definition allows 24 persons,and makes Section 811 housing.Alcohol or drug Section 202/811 development process, no distinction between persons with addiction would not disqualify a this rule eliminates the housing chronic mental illness and other person,however,as long as the person consultant's fee In lieu of a developer's persons with disabilities.Some of the meets the required three-pronged test fee from which the Owner can pay the commenters argued that such a for eligibility as a person with a Sponsor for consulting services. distinction by HUD Is a violation of the disability(i.e.,physical,mental,or 5.Project Standard3 for Group Ilomes Fair Housing Act and section 504 of the emotional impairment is of long- Rehabilitation Act of 1973.One of the continued and indefinite duration.the With regard to§890.2to(b)of the commenters also objected to allowing impairment substantially impedes the interim rule for the Section 811 Program projects up to 40 persons,arguing that person's ability to live independently, (§891.310(a)of this final rule),one this is an"Inappropriately large upper and the person's ability to live commenter remarked that it may be limit"that will result In the segregation Independently could be improved by impossible to meet the space per of persons with disabilities.However, more suitable housing conditions). resident requirements within the the other commenter argued that the 4.Definition of"Sponsor';Prohibited development cost limits.Another smaller number of persons permitted in Relationshipscommenter requested clarification on facilities for persons with chronic the provision requiring that a project mental Illness will increase costs and One commenter suggested that the involving acquisition comply with make it more difficult to develop such regulations for these programs be applicable State requirements.In the facilities in large urban areas. changed to allow management contracts absence of such reqquirements,the HUD Response:Congress originally between the Owner and the Sponsor or project must comply with standards as set the project size limit for Independent its nonprofit affiliate or wholly-owned described In the interim rule living facilities at 20 persons.Although for-profit sponsorssubsidiary. Selct oon 202 and Section This commenter, §891.310(a)of this final rule))of the Interim .-This an amendment to the statute increased 811 projects,asserts that the for-profit commenter asked whether HUD's the project size limit to 24 persons(Pub. nature of its subsidiary has meant that standards apply if they are greater than L.102-27;approved April 10,1991)(42 the housing needs of more people are the State's standards,and If so this U.S.G.8013(k)(4)),HUD chose to retain fulfilled,since the net profits of the commenter requested HUD to state this the 20 person limit for independent subsidiary go back into the nonprofit clearly in the regulations.The living facilities for persons with chronic Sponsor. commenter also requested HUD to state mental Illness.In FYs 1993.1994.and This commenter also objects to the clearly that in no case must a project 1995,however,HUD decided that the provisions in the interim rules that no comply with State standards in project size limit for independent living officer or director of the Sponsor is violation of the Fair Housing Act. facilities would be 24 persons regardless permitted to have any financial interest HUD Response:During the past five of the disabled population being served. in any contract with the Owner in years of program operation,HUD is not HUD intends to retain this limit in connection with the rendition of aware of Sponsors having difficulty in future funding cycles.In response to the services.This commenter describes a meeting the space per resident -commenter who objected to allowing situation in which the Owner's attorney requirements within the development projects up to 40 persons.HUD intends is also an unpaid board member.This cost limits.-In the near future.IIUD will to remove the upper limit on exceptions arrangement is desirable because it be closely examining the development to the project size limits in the next allows the organizations to take cost limits to ensure that they are Notice of Funding Availability to allow advantage of the attorney's unique reflective of their respective localities. this determination to be made at the expertise.However.under the definition Previously,if the fund reservation was local level. of"Sponsor."the attorney's fees can no not adequate to support the 3.Definition of"Person With longer be paid from project funds. development of the project,an Disabilities" Another commenter asserted that amendment to the fund reservation these regulations make it virtually would be made for HUD-approved One commenter objected to the impossible for Sponsors to pay for expenses up to the maximum amount definition of"person with disabilities" project management costs.eliminating allowable.Although there will still be in the interim rule for the Section 811 the benefits of repeat participation by amendments to the fund reservation, Program(§890.105 of the interim rule; experienced nonprofit developers. with this final rule,amendments will be §891.305 of this final rule),which Specifically.this Commenter suggests available only after initial closing.In excludes persons whose sole that HUD allow Sponsors to receive response to the commenter asking for impairment is alcoholism or drug consultant fees.so that qualified clarification regarding whether HUD's addiction.This commenter argued that Sponsors that perform such services can standards apply to arquisition projects this definition is contrary to the Fair be compensated accordingly. if they are greater than applicable State Housing Act,which protects persons HUD Response:The handbooks for requirements,§891.310 of this final rule disabled by alcoholism or substance lite Section 202 and Section 811 requires that the project at least meet abuse(although not those who currently Programs provide exceptions to these applicable State requirements if they 21950 Federal Register fol. 61, No. 57 / Friday. March 22, 19' j Rules.and Regulations exist,and if they do not,the project 7.Project Eligibility and Size Limits In response to the commenter that must meet the HUD requirements.The Seven commenters requested suggested that the Sponsor not be purpose of this provision is to permit additional guidance with regard to the required to notify the municipality flexibility in the group home standards Interim rule for the Section 811 when acquiring dwelling units in when complying with the HUD program,under which eligible projects multifamily developments, requirements may prove to be cost include dwelling units in multifamily condominiums,and cooperatives in prohibitive.In regard to the request housing developments,condominiums, order to encourage independent and from the same commenter fora and cooperatives(§890.215(a)(3)of the Integrated housing for persons with statement that In no case must a project interim rule).These commenters argued disabilities.HUD does not find that comply with State standards In that one of the core goals of the National notifying the municipality will have any violation of the Fair housing Act.HUD negative impact on integrating persons feels that such a statement is Affordable Housing Act was to expand with disabilities.The units will be unnecessary since participation In the available housing options beyond group dispersed within the structure and thus program requires a Sponsor to certify homes and independent living facilities. will be difficult to identify as housing Therefore.'HUD should provide that it will comply with the for disabled persons. requirements of the Fair Housing Act guidance as to the applicability of the In response to the comments on requirements of each section of the and implementing regulations. re q exceptions to project size limits,HUD interim rule to the newly avallable has decided to eliminate from the 6.Limits on Number of Units options.One commenter specifically regulation the section on project size Three commenters objected to the asked for guidance with regard to limits limits and exceptions.This information provision of the interim rule for the on the number of dwelling units within will appear in the annual Notice of Section 202 Program limiting to 10 multifamily developments and limits on Funding Availability(NOFA).However, percent of the national allocation the the number of persons who may reside since HUD published the last interim number of units for which national in such units. rule.HUD has expanded the criteria organizations can apply(§889.215 of Another commenter suggested that.In required for Sponsors to request a the interim rule;§891.2i5 of this final order to encourage Independent and waiver of the project size limits by rule).The commenters argued that this integrated housing for persons with adding that the Sponsor must limitation Is arbitrary,not required by disabilities,the regulations should not demonstrate why the site was selected, statute,and contrary to the goal of require the Sponsor to notify the as well as how the size of the project is producing the highest quality housing. municipality In the case of acquisition consistent with State and/or heal Applications should be funded on merit of individual dwelling units in policies governing similar facilities for and local need.One commenter multifamily developments, the proposed population.Furthermore. suggested that If limits are absolutely condominiums,and cooperatives. IIUD intends to remove the upper limits necessary,this section should be revised Three commenters suggested that on the number of units that can be so that the limit only applies if there are IiUD develop strict guidelines for requested so that the size of the project at least 10,000 units being allocated for waiving the project size limits of the Can be determined more appropriately the program that year.Furthermore, Section 811 rule(§890.215Cc)of the at the local level. HUD should base the limits on the interim rule).Several commenters number of units awarded,rather than asserted that allowing the development 8.Design and Cost Standards the number of units for which the of larger facilities through a waiver of This provision of the interim rules Sponsor is applying.Finally.HUD the size limits is contrary to the goal of (§891.120(c)of this final rule)provided should waive this requirement if there providing quality services and an that HUD would not fund certain are no suitable competing applicants in integrated living environment.The amenities,such as washers and dryers a particular region. other commenter suggested that IIUD In individual 6nits.One commenter HUD Response:The limit on the require Sponsors to demonstrate objected,arguing that easily accessible number of Section 202 units for which thoroughly the necessity for such an washers and dryers do not represent national organizations can apply was exception to the size limits.For excessive costs.but rather are especially established to ensure that organizations instance.HUD should require the important for olderand frailer persons. that are not national in scope would Sponsor to demonstrate that there is no This commenter also noted that the have a more equitable opportunity to other residential site within a failure to provide Individual laundry participate in the program.Contrary to reasonable distance that would make a facilities may increase service costs for the opinion of the commenter, smaller project feasible.However,one those unable to carry their laundry to applications are funded based on merit commenter argued that rather than distant facilities.Several other and local need.however,without a making these waivers harder to obtain, commenters remarked that features such limit on the number of units that IIUD should make them easier to obtain as washers and dryers are considered national organizations can apply for, by expediting its review and approval of standard features in most new housing these organizations have a competitive such waivers. today,and many of the excluded edge over qualified non-national HUD Response:In response to the amenities can materially contribute to organizations.This results In a possible seven Commenters that requested the independence of a person with • tendency to dominate the program. guidance as to the applicability of each disabilities.These commenters argued Although HUD intends to continue section of the interim rule to the newly that Sponsors should be allowed to placing a limit on the number of Section available options of dwelling units in provide these amenities if they can do 202 units a national organization can multifamily housing developments, so within the cost limits. apply for.the requirement will be in the condominiums,and cooperatives,IIUD HUDResponse:Section 202 and Notice of Funding Availability has determined that detailed Section 811 projects must be modest in published in the Federal Register once information concerning these housing design.Therefore,there are certain Congress appropriates Section 202 options would be more appropriate in a amenities such as atriums.bowling funds to HUD.Therefore,this final rule handbook and intends to issue a revised alleys,and swimming pools,that are deletes the limit from the regulations. handbook in[lie near future. considered excessive and are not Federal Register ! Volt } No. 57 I Friday, March 22, 1996 I F� and Regulations 11951 eligible to be paid for out of the capital protest that their area is"concentrated" properties acquired from the RTC that advance(§891.120(c)).I lowever.there with other facilities for persons with will not need any rehabilitation.the 85 is no prohibition against the Sponsor disabilities. percent limit is justified since properties including certain excess amenities as HUD Response:IIUD has determined can be obtained less expensively from long as they pay for them from other that the location of the project should be the RTC than they can from the private sources. decided dt the local level,and therefore market. One commenter also objected to has relaxed the requirement in The reason that the interim rule for §890.220(b)in the interim rule for the §891.320(b)of this Final rule by the Section 811 Program did not-provide Section 811 Program.which provides Indicating that projects"should"rather guidance on development cost limits-for that HUD will establish limits on unit than"must"be located In dwelling units in multifamily housing. sizes and number of bathrooms for neighborhoods where other family condominiums,or cooperatives is that Independent living facilities.This housing Is located,and"should not" these housing types are considered commenter remarked that such rather than"may not"be located independent living units,and therefore specifications have caused costly delays adjacent to certain facilities.However. would use the appropriate development In construction.and that HUD should be the statute still prohibits more than one cost limit based upon the number and more flexible and result-oriented.HUD group home from being located on one size of the units and whether or not the should focus on enforcing the site,as well as a group home from being structure has an elevator. development cost limits and the located on a site contiguous to another In this section(§892.140 of ibis final incentives for savings.as well as the site containing such a home. rule),HUD has provided Incentives far minimum construction and space 10.Development Cost Limits savings by providing that Owners whose standards,rather than on design and P actual development costs are less than cost standards. HUD received many comments on the Initial fund reservation for the HUD Response:If the project is to be this provision of both interim rules.One capital advance will retain 50 percent of newly constructed and designed from commenter remarked that the this savings in their Replacement the beginning according to the development cost limits are"woefully Reserve Account.The Owner will retain maximum unit sizes and number of inadequate."Three commenters 75 percent of this savings by adding bathrooms,HUD disagrees with the objected to the calculation of the energy efficiency features.One commenter that this requirement could development cost limits under the commenter asked for further details cause costly delays in construction.If interim rules.These commenters concerning which energy efficiency the project Is to be rehabilitated,there asserted that HUD offices are instructed features will satisfy this incentive. is flexibility in meeting this requirement not to add an additional 10 percent for Six commenters remarked on the when complying with the limitations Costs Not Attributable.and this will retention of the savings in the would be too costly.Also,If the Sponsor result in lower maximum cost limits. Replacement Reserve Account,the can develop the project with larger sized They reminded HUD to ensure that the funds in which may only be used for units and more bathrooms within the I sigh Cost Factors are truly reflective of repairs or replacements in or capital appropriate development cost limit the costs in the area,as is required by the improvements of the project.These Sponsor is permitted to do so.The conference report on the National commenters requested that HIM Sponsor can also pay for the extra space Affordable Housing Act. provide greater flexibility in the use of and the associated operating cost with Three commenters objected to the these savings.The commenters . funds from other sources.The reference development cost limits for the suggested IIUD change the regulations to unit size and number of bathrooms acquisition without rehabilitation of in one of the following ways:relax the for independent living facilities will be properties from the Resolution Trust requirements for the use of at least a in the handbook and not in the Corporation(RTC).The interim rules portion of the funds in the Replacement regulation. provided that in the case of RTC Reserve Account:retain the funds in the 9.Site and Neighborhood Standards properties that require no rehabilitation, Residual Receipts Account;or split the the cost limits are reduced to 85 percent funds between the two accounts,so that Two commenters objected to the of the limits listed in the rule.These the funds can be used for resident provision of the interim rule for the commenters asserted that there is no services after all repair needs have been Section 811 Program(§890.230(g)of the statutory basis for this reduction and met.One commenter further Interim rule;§891.320(b)of this final that the reduction will effectively recommended that HUD's share of the rule)that prohibits developing projects eliminate these properties as viable savings should be placed In a special adjacent to certain types of facilities, options. account to provide needed repairs and such as schools or other housing Five commenters remarked that the modernization for'those Section 202 primarily for persons with disabilities. interim rule for the Section 811 Program projects with no reserves on which to One of these commenters argued that provides no guidance on development draw. ppersons with disabilities might need to cost limits for dwelling units In HUD Response:IfM will give further be close to such supportive services. multifamily housing,condominiums,or details concerning which energy and developing a project on a site near cooperatives. efficiency features will satisfy the such services would decrease the cost of IIUD Response:IIUD will review the incentive to retain 75 percent of the service delivery.This commenter noted development cost limits,which have savings in the program handbook. that HUD considers the proximity or been deleted from this final rule,to In response to the request that HUD accessibility of such services as a ensure that they adequately reflect the allow more flexibility in the use of the selection criterion for funding cost of developing similar housing in swings.IIUD believes that the (§890.300(c)(6)(i)(A)of the interim the locality.HUD will establish the appropriate account for any savings rule).The other commenter warned that development cost limits and all future received is the Replacement Reserve this requirement contradicts the Fair changes to them through a notice in ilia Account since there are no other funds Housing Amendments Act of 1988.and Federal Regaister. provided for needed repairs and that it fuels potential community Aliliough there is no statutory basis maintenance_The Residual Receipts opposition by allowing opponents to for the lower development cost limit for Account is used for other purposes.The 11952 Federal Register il. 61, No. 57 / Friday, March 22, 199' Rules and Regulations statute specifically states that if there (§891.145 of this final rule).These Three commenters expressed concern are savings,HUD retains 50 percent;it commenters remarked that this deposit that$15 may be an insufficient service does not permit HUD's share to be requirement is a serious financial allowance for frail elderly persons.One folded back into the project. burden.The commenters further of these commenters suggested that expressed concern that this provision more money be allocated for service 11.Term of Commitment penalizes Sponsors for delays that are subsidies.The o::sr commenter Two commenters expressed concern often beyond the Sponsors'control or suggested that HUD revise the dollar that although HUD requires that housing even HUD-related.Other delays are amount if it should prove to be assisted under both programs remain caused by having to'obtain-municipal insufficient,and at least annually to available to very low-income elderly approval,conduct archeological reflect the changing cost of services.The persons and persons with disabilities for investigations,examine subsurface third commenter recommended that a 40 years(480 months),the initial conditions for toxic leaks,conduct copayment by the tenant receiving the contract for project rental assistance public hearings,and obtain a building service should only be voluntary;since shall be for 240 months,with an permit. these tenants will have low incomes, extension of not less than 60 months. The commenters offered several they may not have sufficient funds for This commenter suggests that the suggestions.One commenter suggested all their needs. regulations provide for contract that HUD adopt an approval process Two commenters encouraged HUD to extensions for not less than 240 months, that is more decentralized,more allow a$15 per unit operating cost since rental assistance will be required flexible,and result-oriented.Another under the Section 811 Program as well in order to ensure the housing is commenter suggested that HUD should as under the Section 202 Program,since available. return the deposit once the project has operating costs for housing for persons HUD Response:HUD recognizes that closed and project viability is assured; with disabilities may often be equal to project rental assistance funds will be such a provision would allow Sponsors or greater than those for elderly persons. necessary to keep the Section 202 and to use the experience gained in previous HUD Response:The funding sources' Section 811 projects viable for 40 years. projects in the development of for service coordinators and the$15 per However,in these times of uncertainty subsequent projects.Another unit per month service allowance are and extreme budget constraints,HUD is commenter suggested that HUD should separate.The amount of$15 per unit unable to extend contracts for project treat the 18-month and 6-month time per month was determined based upon rental assistance for an additional 240 periods as targets,giving local offices HUD's experience with the Congregate months.In fact,in the FY 1995 funding the permission to extend the time Housing Services Program.At this time cycle,HUD was permitted to reserve periods based on determinations of HUD has not had sufficient experience project rental assistance contract(PRAC) individual circumstances.Two with the service allowance in the funds for only 60 months as opposed to commenters suggested that any Section 202 Program to determine the usual 240 months.HUD will do all processing time by HUD offices in whether the amount of$15 per unit per it can to assure that residents of Section excess of the recommended times month is sufficient.The Section 811 202 and Section 811 housing will should be credited to the Sponsor as an statute does not provide for any HUD continue to receive rental assistance as extension.Another commenter funding for supportive services. long as they remain eligible. suggested that if HUD is responsible for 15.Service Coordinator Funds in 12.Other Financing Sources delaying the final closing beyond the 6- Housing for Frail Elderly Persons month time period(plus a 2-month Two commenters remarked on HUD's extension),then HUD should return the Several commenters objected to statement in the preamble to the interim full balance remaining in the Minimum HUD's decision that the only rule for the Section 202 Program(56 FR Capital Investment.Finally,one developments that can receive service 27105)that HUD would generally not commenter suggested that the funds that coordinator funding'under the Section accept borrowed funds from other are returned should be placed in either 202 Program are those in which more sources.These commenters suggested the Replacement Reserve or Residual than 50 percent of the residents are that HUD remove this limitation and Receipts Accounts,at the Sponsor's "frail."First,as one commenter allow Owners to use such funds,since option. asserted,the service coordinator is Congress intended to encourage mixed HUD Response:Although HUD instrumental in assessing clients to financing(17 U.S.C. 1701q(h)(6)).One appreciates the recommendations,HUD determine frailty.Further,another commenter suggested that local HUD established the policies regarding the commenter cited surveys indicating that offices have the ability to approve such Minimum Capital Investment to provide approximately 25 percent of the loans,especially"soft loans"or secured an incentive for Owners to reach final residents in subsidized senior housing grants to ensure program compliance, closing early,and so far the policies are will require services.Requiring twice and that the regulations should set working.Therefore,HUD will not make that number of frail elderly tenants will general parameters on the loan terms. any changes to these policies at this overwhelm management,even with a HUD Response:Owners are permitted time. service coordinator.It will also lead to to use borrowed funds from other 14 Provision f S an undesirable balance of"well to frail" sources in the case of secondary . rovson of residents.The commenters argued that financing.Field offices must review HUD received one comment service coordinators are essential to requests for approval of secondary requesting clarification on the provision every development,and therefore HUD financing,and provided the documents in§889.260(b)(3)of the interim rule for should provide service coordinator meet HUD requirements,they will be the Section 202 Program(§891.225 of funds for all developments regardless of approved. this final rule)regarding the$15 per the number of"frail"elderly tenants. unit per month service cost allowance. One commenter expressed concern 13.Owner Deposit(Minimum Capital This commenter inquired whether the regarding the assessment of the Investment) funding for the service coordinator is occupants'abilities(with regard to the HUD received many comments on different from or included in this$15 "activities of daily living")at the time this provision of both interim rules per unit per month service allowance. the Sponsor is developing its suppor Federal Register / VoU, No. 57 / Friday, March 22, 199G / I� and Regulations 11953 services plan and the rest of its service needs of their residents as they argued that this may be an unnecessary application.According to the "ago in place." end illegal requirement in violation of nondiscrimination requirements,such 17.Provision of Services to the Fair Housing Amendments Act of as section 504 of the Rehabilitation Act Nonresidents 1988. of 1973 and the Americans with HUD Response:This final rule Disabilities Act.this commenter asserts With regard to the Section 202 removes the application contents from that It will be legally impossible to make Program.the statute provides that HUD the regulations.Instead,HUD will such determinations In advance.The may permit the provision of services to include them in the annual NOFAs commenter suggested that HUD require elderly persons who are not residents, published in the Federal Register for a statement from the Sponsor certifying as described in the preamble to that the programs,as well as in a self- its intent to assess the physical Interim rule(56 FR 27106).However, contained application.The requirement characteristics and abilities of the one commenter urged HUD not to allow that Sponsors submit a certification tenants following Initial rent-up.At that the provision of services to nonresidents from the appropriate State or local time the Sponsor would have a clear unless these recipients are vary low- agency with a determination as to Ides of the number of tenants needing income,there is available funding to whether the supportive services plan is services and how to deliver those assist these persons,and the needs of well designed to meet the needs of services. current residents are fully met. persons with disabilities is statutory and HUD Response:In response to the HUD Response:The Section 202 cannot be waived. objection that only projects with at least statute allows the Secretary to permit In response to the commenters who 50 percent frail elderly persons are the provision of services to elderly argued that HUD cannot require eligible for service coordinator funding, who are nonrersons and eersons with sidents dent on y if doiiities statements of ng so application by members of the ort or vat of the the actual requirement Is that projects will not adversely affect the cost- community.HUD revised this principally serving the frail elderly are effectiveness or operation of the requirement in the interim rule eligible for service coordinator funding. program or add significantly to the need published In the Federal Register on where t funds should provided for assistance. play 5,1993.Since the effective date of wheere there is the mostt need.in other that rule,applicants have been required projects that do not qualify for service 18.Application Contents to include in their applications coordinator funding.management IiUD received several comments on statements of support for the proposed assumes many of the same functions as the application requirements in the project from nongovernmental a service coordinator. interim rules.Several commenters on organizations that are familiar with the The requirement to assess occupants' the elderly program suggested that since needs of the population the project abilities with regard to the activities of many Area Agencies on Aging will serve would serve. For example,an applicant Bally living at the time the Sponsor is as the primary services liaisons with proposing to develop housing for people developing its supportive services plan any new Section 202 housing with chronic mental illness could and application does not violate section development,the regulations should include in their application a letter of 504 or the Americans with Disabilities strongly encourage their coordinated support for the project from a local Act because the requirement Is to assess efforts during the application process service provider that offers mental In general the abilities of potential under the elderly program. health services.Such letters of support occupants from the general population. Another commenter objected to the help HUD determine the Sponsor's ties 16.Housing Only Independent Persons requirement in the interim rule for the to the community and the amount of Section 811 Program iha:Sponsors local support for the project,both of With regard to the elderly program, submit a certification from the which are'indicators of the project's one commenter objected that HUD has appropriate Stale or local agency that it potential sucess. created a loophole by allowing Sponsors has reviewed the supportive services to provide no supportive services by plan(§890.265(c)(19)of the interim 19. Review of Applications for Fund housing all fully independent persons. rule)_One commenter asserted that Reservation This commenter cited a draft of HUD's some Slate and local agencies have a Four commenters objected to the training materials providing that"if the "bias"against nonprofit organizations ranking and selection process described applicant is not going to provide operating housing for the populations in the interim rule for the Section 811 services,It only needs to justify market they also serve.Therefore,this Program(§890.300(d)and(e)of the demand for fully independent elderly." commenter suggested that HUD allow interim rule).Using this selection The commenter argued that Oils may the waiver of this requirement upon process.HUD would fund all violate section 504 of the Rehabilitation sufficient documentation that the approvable applications that contain Act of 1973.and it is contrary to the supportive services plan is adequate. evidence of control of an approvable site purpose of the Section 202 Program. Several commenters remarked on the before it would fund any applications in The commenter suggested that HUD requirement that sponsors describe their which Cite Sponsor had identified the require all Sponsors to anticipate "ties to the community"(§890.265(C)of site but did not yet ltavee control of tite housing some elderly persons requiring the interim rule).While this site.Tile conitnennters argued that this services and to plan for the delivery of requirement could include evidence process makes all other selection criteria such services. that the sponsor is a viable part of the subordinate to control of the site at the HUD Response:At the outset.a community and evidence of the time of application.This unduly Sponsor may serve all fully independent sponsor's ability to carry out the project. restricts Sponsors from developing elderly people.However.eventually its past experience,and its financial and innovative housing opportunities,and many occupants will require services as programmatic capability,these 1111D should instead balance site control they get older.Sponsors proposing to commenters argued that HUD cannot with the other criteria. serve all fully independent elderly require statements of support or IfUD fesponse:[it this final rule. people initially must describe in their approval of the application by members HUD has removed tite provisions on the applications how they will address the of the community.The commenters ranking and selection process front the 11954 Federal Register 'ol. 61, No. 57 / Friday, March 22. 29' 1 Rules and Regulations regulation.These provisions will appear relationship with Sponsors.The other Invitations for Applications In In the annual NOFAs for the programs. commenter asserted that competitive newspapers;the field offices must only The statute requires HUD to use,as a procurement is more costly and time- nolify media for minority persons,as selection criterion for the Section 811 consuming. well as media for elderly persons and program,the extent to which the IIUD Response:The Office of persons with disabilities,as applicable. applicant has site control.In order to Management and Budget(OM,B)has The commenters argued that this limits Implement this requirement,IIUD determined that OMB Circular A-110 the availability of Information about created two categories of applications; does not apply to the section 202 and relatively now programs that will Category A for those applicants with section 811 Programs. provide urgently needed housing satisfactory evidence of an approvable C Angus!I 1992Interim Rules opportunities. site,and Category B for applicants that ]IUD Response:HUD decided to had Identified a site.Priority in On August 22,1993.HUD published eliminate the requirement that HUD selection was given to Category A in the Federal Register two more field offices publish Invitations for applicants.For the FY 1995 program, interim rules.one for the section 202 Applications In newspapers because HUD changed the procedures by Program of Supportive Housing for the HUD could not afford to eantinue eliminating the categories in favor of Elderly(57 FR 36338),and one for the paying the advertising costs.however, awarding bonus points to applicants section 811 Program of Supportive each field office keeps a mailing list of with satisfactory evidence of an Housing for Persons with Disabilities organizations that are current approvable site.HUD believes this (57 FR 36330).The August 12.1992 customers,as well as those that have procedure satisfies the statutory interim rules provided guidance on the expressed an interest in the programs requirement without making all other development of supportive housing, but that have not yet participated,and selection criteria subordinate.It does elements of which include requests for mails to each of them a copy of the not unduly restrict Sponsors from capital advance financing.approval of NOFA as soon as it is published in the developing innovative housing such requests,and repayment of a Federal Register. opportunities,but rather provides an capital advance.These interim rules F.March 2, 1995 Interim Rules Incentive for Sponsors to lock-in also provided guidance regarding suitable sites that will result in much project rental assistance contracts. On March 2.19115.1IUD published in needed housing being available for ]IUD received one request for the Federal Register two more interim persons with disabilities sooner. Information and one comment In rules,one for each progr-4m(60 FR 20.Cancellation of Fund Reservation response to the August 12.1992 Interim 11828.11836).These rules provided rules.The commenter requested that guidance on managing supportive Two commenters suggested that If a }IUD allow for-profit corporations,as housing for the elderly or persons with project is cancelled.IIUD should well as nonprofit organizations,to disabilities.Specifically,these rules reallocate the funds to another participate in the programs. contained provisions regarding Owner application In the same region in which HUD Response:The section 202 and responsibilities:tenant responsibilities. HUD had originally allocated them.This 811 statutes prohibit participation in the leases,security deposits.utility will fulfill the goal of balancing housing programs by for-profit corporations. allowances,vacancy payments,and opportunities across the country. D.May5,1993Interim Rules IWD reviews. Another commenter remarked that IIUD HUD received two comments on this should at least inform the public of how On May 5.1993,IIUD again set of interim rules.One commenter HUD will reallocate the funds by published in the Federal Register two requested that IIUD provide funds including this information In the interim rules,one for the section 202 under other programs for elderly regulations. Program of Supportive}lousing for the housing. HUD Response:The appropriations Elderly(58 FR 26836)and one for the }IUD Response:IIUD does provide act in effect far the year in which a section 811 Program of Supportive funds under other programs such as the project is cancelled governs HUD's }lousing for Persons with Disabilities Public}lousing Program.the section 8 ability to recapture and rouse Section (58 FR 26816).As IIUD described in the Rental Certificate and housing Voucher 202 and Section 811 contract autliority. preambles to these interim rules,the Program and tho section 232 Program 22.OMB Circular A-110 rules incorporated amendments to the for elderly housing. programs made by the housing and The other commenter expressed two In the preamble to the interim rules Community Development Act of 1992. main concerns regarding civil rights (56 FR 27073.27207).IIUD specifically The interim rules also clarified and issues.First,this commenter requested comments regarding the use simplified many of the requirements in emphasized that the required receipt of of OMB Circular A-110 entitled"Grants the regulations.including substantial supportive services may violate an and Agreements with Institutions of improvements to the selection process. individual's civil rights.Therefore,this Higher Education,Ilospitals,and other IIUD received eight comments in commenter urged IIUD to include Nonprofit Organizations--Uniform response to the May 5,1993 interim language throughout the rule stressing Administrative Requirements."Three rules.Several of the comments that the available services are voluntary commenters responded that the use of consisted of inquiries about specific and are not a condition of admission or this circular should not Ire required. aspects of the regulations.Many of the continued occupancy.Second,this These commenters explained that the other commenters commended IIUD on commenter objected to the provision of development team concept is more its efforts to clarify and simplify the "diagnosis-specific"housing.or appropriate for this program than the application and selection process. housing for persons with similar competitive procurement process.Two Ilowever.two commenters objected to disabilities or who require a similar set of the commenters explained that the change in the processes for Notices of supportive services.under the section bidding would make it difficult for of Funding Availability(NOFAs).In the 61I Program.The commenter argued Sponsors to use professionals who are May 5,1993 Interim rules.IIUD that this type of housing is contrary to experienced in the program and who are changed the NOFA process so that field the goal of integration and general willing to defer fees because of their offices would no longer publish occupancy housing.and it fails to Federal Register / Vou. No. 57 / Friday, March 22. 1996 / Us and Regulations 11955 affirmatively further fair housing goals. the estimated project's total operating 202 of the Housing Act of 1959 and The commenter urged HUD to limit the expenses to take into consideration section 811 of the National Affordable ,circumstances under which it will estimated tenant contributions.The I lousing Act.The provisions for the approve such housing. Secretary also extended eligibility to Elder Cottage Ilousing Demonstration HUD Response:IIUD has been low-income households[in addition to Program are also redundant of the working with consumer advocacy very low-income households),waived statute(section 806 of the Cranston. organizations on revisions to the Section the Federal preferences for admission, Gonzalez National Affordable Housing 811 program.One of the major issues of and reduced the term of the PRAC to 5 Act(Pub.L.101-625;approved concern to consumers and organizations years.The PRAC funds reserved for November 28.1990).This final rule advocating on their behalf is the projects funded In FYs 1993 and 1994 removes the redundant provisions and delinking of housing and supportive that had not gone to initial closing or replaces them.as appropriate,with services.Although the acceptance of had an Addendum to the Agreement to references to the statute.This final rule supportive services has never been Enter into the Project Rental Assistance also removes the sections on application required as a condition of occupancy in Contract(Forms HUD40172—A-CA and requirements,review and approval of a Section 811 project,HUD has liUD-90172-;B-CA)alerting the Owner applications.and the ranking and discovered that,in reality,just the of HUD's right to reduce the PRAC selection process.This information will opposite occurs.Therefore,in the NOFA reserved for the project at a later time instead appear in the NOFAs published for the FY 1995 Section 811 program, 'were also reduced by25 percent. in the Federal Register for these I[UD stated that the acceptance of However.the authority in the FY 1995 programs.As a result of this rule's supportive services shall not be a Rescissions Act to waive statutory consolidation and streamlining,HUD condition of occupancy.This statement provisions is limited to achieving the will eliminate approximately 92 pages shall continue to appear in the NOFA 51.115 billion rescission.Therefore, of unnecessary regulations. for the Section 811-program and It will since(lie effects of the Rescissions Act also be added to the handbook. are temporary,this final rule does not III.Lead-Based Paint In regard to the commenter objecting change the regulations to reflect the HUD is taking the opportunity,in this to the provision or-diagnosis-specific- changes described in the January 30, final rule,to update technical aspects of housing or housing for persons with 1996 notice. its lead-based paint requirements to similar disabilities or who require a conform with new recommendations of similar set of supportive services,HUD's lI.Regulatory Reinvention pP the Centers for Disease Control.For policy is that a Sponsor may design a In response to Executive Order 12866 example,in§§891.155(g)and 891.325. supportive services package that is and President Clinton's memorandum of HUD is changing the childhood age of targeted to persons with similar March 4.1995 to all Federal concern from under 7 years of age to disabilities such as persons with departments and agencies on the subject under 6 years.In §891.325(b)(2),IIUD physical disabilities,developmental of regulatory reinvention,IIUD has is changing the definition of"elevated disabilities or chronic mental Illness. reviewed all its regulations to determine blood-lead level(EBL),"with respect to With the Secretary's approval a Sponsor whether certain regulations can be blood lead levels that require may design a suppor(ive services eliminated,streamlined,or consolidated environmental intervention,from 25 ug/ package targeted at any subset within with other regulations.As part of this dl(micrograms per deciliter)to 20 ug/ these three main categories(e.g.. review,HUD determined that since the dI for a single test or 15-19 ug/dl for persons with mental retardation).This substance of the regulations in 24 CFR two consecutive tests several months provision is in the Section 811 statute. parts 885,889,and 890 was very apart.(See U.S.Department of Health In any Section 811 project,however,the duplicative,these parts could be and Human Services.Public Health Sponsor must permit occupancy by any consolidated and streamlined into.one Service.Centers for Disease Control, qualified person with a disability who set of regulations.Therefore.this final Preventing Lead Poisoning in Young could benefit from the housing and/or rule creates a new part 891 in title 24 Children,A Statement by the Centers for services provided regardless of the of the Code of Federal Regulations that Disease Control.October 1991.) person's disability. will contain all the provisions for IIUD's Analysis of the need for additional F. The Fiscal Year 1995 Rescissions Act Supportive Housing Programs.Subpart changes to the lead-based paint A of part 891 will contain all the requirements is being deferred until the The Fiscal Year 1905 Rescission Act requirements that are similar in the publication of a separate proposed rule (Pub. L.104-19;approved July 27.1995) programs.Subparts B and C of part 891 that would implement sections 1012 provides in relevant part that in will contain requirements that are and 1Q13 of the Residential Lead Based allocating the rescission of 51.115 unique to the Section 202 and Section paint Hazard Reduction Act of 1992 oral billion of FY 1995 fund3.the Secretary 811 programs.respectively.Subpart D revise the Hazard Reduction sed paint requirements may reduce the appropriations needs of will contain the project management for all HUD programs.This proposed HUD by waiving any provision of provisions for the Section 202 and P g p p section 202 of the!lousing Act of 1959 Section 611 programs.Finally,subpart E rule is in its final stages of development. and section 811 of the National will contain the regulations necessary IV.Other platters Affordable Housing Act that the for the continued management of Environmental Impact Secretary determines is not necessary In projects under the Loans for Housing for achieve the objectives of these the Elderly or Handicapped Program. At the time of publication of the programs.On January 30. 1996(61 FIR In addition to consolidating similar interim rules for these programs, 3047).HUD published a notice in the provisions,this rule also removes Findings of No Significant Impact will: Federal Register advising the public of provisions that are redundant of statutes respect to the environment were made tite impact of the rescissions on the or would more appropriately appear in in accordance with HUD regulations at Section 202 and Section en Programs. program handbooks or annual Notices of 24 CFR part 50 implementing section As described in the notice,for projects Funding Availability(NUFAs).For 102(211C)of the National Environmental funded in FY 1995.the Secretary example.many of the definitions ir. the Policy Act of 1969(42 U.S.C.4332). reserved PRAC funds at 75 percent of regulations come directly from section Those,interim rules are being adopted 11956 Federal Register f01. 61, No. 57 f Friday, March 22. 19%jRules and+Regulations w by this final rule without significant community development,Loan Subpart 8-Section 202 Supporwe change in terms of environmental programs-housing and community Housing for the Elderly Impact.Accordingly,the initial development.Low and moderate 891.200 Applicability. Findings of No Significant impact income housing.Rent subsidies. 891.205 Definitions. remain applicable.and are available for Reporting and recordkeeping 891.210 Special project standards. public inspection and eopyin between requirements. 891.215 Limits on number of units. 7.30 a.m.and 5:30 p.m.weekdays at the 891.220 Prohibited facilities. Office of the Rules Docket Clerk,451 24 CFR Part 890 891.225 Provision of services. Seventh Street S. V.,Room 20276. 891.230 Selection preferences. Washington,DC 204 1 045 00. Capital advance programs,Civil Subpart C-Section 811 Supportive li rights,Grant programs-housing and yousing for Persons With Disabilities Regulatory Flexibility Act community development.Individuals Housi 0 Applicability. with disabilities,Loan programs- Under the Regulatory Flexibility Act housingand community development. 891.305 Definitions. (5 U.S.C.605(b)).the undersigned y p 891.310 Special project standards. hereby certifies that this final rule does Low and moderate income gouging, 891.315 Prohibited facilities. not have a significant economic impact Mental health programs.Reporting and 891.320 Site and neighborhood standards. on a substantial number of small recordkeeping requirements. 891.325 Lead-based paint requirements. entities.The program will provide 24 CFR Port 891 Subpart D-Project Management capital advances to private nonprofit 891.40o Responsibilities of Owner. organizations and nonprofit consumer Aged.Capital advance programs,Civil 891.405 Replacement reserve. cooperatives to expand the supply of rights,Grant programs--housing and 891-410 Selection and admission of tenants. supportive housing for the elderly and community development.Individuals 892.415 Obligations of the household or to nonprofit organizations td expand the with disabilities.Loan programs-. family. supply of supportive housing for housing and community development, 891.420 Overcrowded and underoccupied persons with disabilities.Although Low and moderate Income housing, units. small entities will participate in the Klental health programs,Rent subsidies, 891.425 Lease requirements. program,the rule will not have a Reporting and recordkeeping 891.430 Termination of setenancy and significant impact on them. requirements. modification of lease. 891_435 Security deposits. Executive Order 12606,The Family Accordingly,under the authority of 891.440,Adjustment of utility allowances. The General Counsel.as rite 42 U.S.C.3535(d),for the reasons stated 891.445 Conditions for receipt of vacancy T Ge heDesignated Official for Executive Order In the preamble.24 CFR chapter VIU Is payments for assisted units. d amended as set forth below: 891-450 HUD review. 12606.The Family,has determine that the provisions of this final rule will not PART 885--REMOVED Subpart E-Loans for Housing for the have a significant impact on family 1 ] Elderly and Handicapped formation,maintenance,or general well- 1.Part 885 is removed. 891.500 Purpose and policy. being,and thus is not subject to review $91.510 Definitions under the Order.No significant change PART 889-(REMOVED) 89t.pro Displacement,relocation.and real in existing HUD policies or programs property acquisition. will result from promulgation of this 2.Pan 889 is removed. 89t.515 Audit requirements. rule,as those policies or programs relate Section 202-Projects for the Elderly or to family concerns. PART 890-[REMOVED] Handicapped-Section 8 Assistance 891.520 Definitions applicable to 20218 Executive Order I26I1.Federalism 3.Patt 890 its removed. projects. The General Counsel,as the 4.A new part 891 is added to read as $91.525 Amount and terms of financing Designated Official under section 6(a)of follows: 891.530 Prepayment privileges. Executive Order 12611,Federalism,has 891.535 Requirements for awarding determined that the policies contained PART 891--SUPPORTIVE HOUSING construction contracts. in this rule will not have substantial FOR THE ELDERLY AND PERSONS 891.545 CompletionLoandisbu o projsement procedures. direct effects on States or their political WITH DISABILITIES 891.ce Completion of project,cost P certification,and HUD approvals. subdivisions.or the relationship Subpart A-General Program Requirements $91.550 Selection preferences. between the Federal government and 891.555 Smoke detectors. the States.or on the distribution of Sec. 891.560 HAP contract. power and responsibilities among the 891.100 Purpose and policy. 891.565 Term of HAP contract. various levels of government.As a 891.105 Definitions• 891.570 Maximum annual commitment and result,the rule is not subject to review e91.110 Allocation of authority. project account. 891.115 Notice of funding availability. 891.575 Leasing to eligible families. under the Order. 891.120 Project design and cost standards. 891.580 HAP contract administration. List of Subjects 8'131.125 Site and neighborhood standards. 891.585 Default by Borrower. 891.130 Prohibited relationships. 891.590 Notice upon HAP contract 24 CFR Port 885 891.135 Amount and terms of capital expiration. Aged.Individuals with disabilities, advances. 891.593 HAP contract extension or renewal. Loan programs-housing and 891.140 Development cost limits. 891.600 Responsibilities of Borrower. community development,Low and 891.145 O ncr deposit(Minimum Capital 891AnS Replacement reserve. Investment). 891.61u Selcctiort and udmission of tenants. moderate income housing.Reporting 8g1.150 Operating cost standards. 891.615 Obligations of the family. and recordkeeping requirements. 891.155 Other Federal requirements. 8111.620 Overcrowded and underoccupied 24 CFR Pan 889 8111.160 Audit requirements. units. 891.165 Duration of capital advance. 891.625 Lease requirements. Aged.Capital advance programs. 8111.170 Repayment of capital advance. 891.630 Termination of tenancy and Grant programs-housing;and 891 175 Techaic:al assistance. of lease. r U Federal Register / Vol. Na. 87 ! Friday, March 22, 1996 / R and Regulations 11957 891.635 Security deposits. shall ba used for the purposes described rehabilitated,or acquired as permanent 891.640 Adjustment of rents. in Section 202(12 U.S.C.7701q(b)). residences for use by elderly or disabled 891.645 Adjustment of utility allowances. (2)Supportive housing forAersons households,as applicable.The term 891.650 Conditions for receipt of vacancy with Disabilities.A capital advance and includes necessary community space. payments for assisted units. contract for project rental assistance Except for intermediate care facilities Section 202-Projects for the Nonelderly provided under this program shall be for individuals with dovelopmental handicapped Families and IndividuaLs- used for the purposes described in disabilities,this term does not include Section 162 Assistance Section 811(42 U.S.C.8013(b)). nursing homes,hospitals..Jntermediale 391.655 Definitions applicable to 2021162 (c)Use of capital advance funds.No care facilities,or transitiona)care projects. part of the funds reserved may be facilities.For the Loans for the Elderly 892.660 Project standards. transferred by the Sponsor,except to the and Persons with Disabilities Program, 891.665 Project size limitations. Owner caused to be formed by the see§891.505. 891.670 Cost containment and modest Sponsor.This action must be Low-income families shall have the design standards. prior d e accom lish to issuance of e 891.675 Prohibited facilities, p P same meaning provided in section commitment for capital advance 891.680 Site and neighborhood standards. p 3(b)(2)of the United States housing Act 89r.685 Prohibited relationships. funding. of 3937(42 U.S.C.1437a). 891.690 Other Federal requirements. (d)Amendments.Subject to the National Sponsor means a Sponsor 691.695 Operating cost standards. availability of funds,HUD may amend that has one or more Section 202 or one 8131.700 Prepayment of loans. the amount of an approved capital or more Section 811 project(s)under 891.705 Project assistance contract. advance only alter initial closing has reservation,construction.or 891.710 Term of PAC. occurred. 891.715 Maximum annual commument and management in two or more different project account. §891.105 Dentitions. [IUD geographical regions. 891.720 Leasing to eligible families. The following definitions apply,as Operating costs means}IUD-approved 891.725 PAC administration. appropriate.throughout this part.Other expenses related to the provision of 891.730 Default by Borrower. housing and includes: 891.735 Notice upon PAC expiration. terms with definitions unique to the p° P particular program are defined in (1)Administrative expenses. 891.740 Responsibilities of Borrower. including salary and management $91.745 Replacement reserve. �§891.205.891.305,and 891.505,as P applicable. expenses related to the provision Of a 891.750 Selection and admission of tenants. PP 891,755 Obligations of the family. Affiliated entities means entities that shelter and,in the case of the Section 891.760 Overcrowded and underaccupied the field office determines to be related 202 Program,the coordination of units. to each other in such a manner that it services; 891,765 Lease requirements. is appropriate to treat them as a Tingle (2)Maintenance expenses,including 891.770 Termination of tenancy and entity.Such relationship shall include routine and minor repairs and modification of lease. any identity of interest among such groundskeeping; 891.775 Security deposits. entities or their principals and the use (3)Security expenses; 691.780 Adjustment of rents. by any otherwise unaffiliated entities of P g 897.785 Adjustment of utility allowances. (4)Utilities expenses.including gas, 891.790 Conditions for receipt of vacancy a single Sponsor or of Sponsors(or of oil,electricity,water,sewer,trash payments for assisted units. a single Borrower or of Borrowers,as removal,and extermination services. Authority:12 U.S.C.17o1q:42 U.S.C. applicable)that have any identity of The term"operating costs"excludes 1437f.3535(d).and 8013. interest themselves or their principals. telephone services for households; Annual income is defined in part 813 (5)Taxes and insurance; Subpart A-General Program of this chapter.In the case of an (6)Allowances for reserves;and Requirements individual residing in an intermediate (7)Allowances for services(in the §89i.f00 Purpose and policy. care facility for the developmeritally Section 202 Program only). disabled that is assisted under title XIX Project rental assistance contract (a) Purpose.The Section 202 Program of the Social Security Act and this part, (PRAC1 means the contract entered into of Supportive Efousing for the Elderly the annual income or the individual by the Owner and I IUD setting forth the and the Section all Program of shall exclude protected personal income rights and duties of the parties with Supportive Housing for Persons with as provided under that Act.For the respect to the project and the payments Disabilities provide Federal capital purposes of determining the total tenant under the PRAC. advances and project rental assistance payment.the income of such Project rental assistance payment under section 202 or the Housing Act of individuals shall be imputed to be tite means the payment made by flLM to the 1959(12 U.S.C.1701q)(section 202)and amount that the household would Owner for assisted units as provided in section 811 of the National Affordable receive if assisted under title XVI of the the PRAC.The payment is the Housing Act(42 U.S.0 8013)(section Social Security Act. . difference between the total tenant oil).respectively,for housing projects Household(eligible household)means payment and the IiUD-approved per serving elderly households and persons an elderly or disabled household(as unit operating expenses except for with disabilities.Section 202 projects defined in§§891.205 or 891.305. expenses related to items not eligible shall provide a range of services that are respectively),as applicable.that meets under design and cost provisions.An tailored to the needs of the residents. the project occupancy requirements additional payment is made to a Owners of Section 811 projects sha 11 approved by HUD and,if the household household occupying an assisted unit ensure that the residents are provided occupies an assisted unit,meets the when the utility allowance is greater with any necessary supportive services very low-income requirements than the total tenant paymen.A project 'hat address their individual needs. described in§813.102 of this chapter,as rental assistance payment,known as a (b)General policy.(1)Supportive modified by the definition of annual "vacancy paynient."may be made to the Housing forthe Elderly.A capital income in this section. Owner when an assisted unit is vacant, advance and contract for project rental Housing and related fnrilities tnnans in accordance with the terms of thu assistance provided under this prograrn rental(rousing strurtureti constructed, f'I2AC. 11958 Federal Registe Vol. 61, No. 57 / Friday, March 22, it 1_�! Rules and Regulations Rehabilitation means the reservations made in prior years.for working condition.on each level of the Improvement of the condition of a technical assistance,and for other unit. property from deteriorated or contracted services. substandard to good condition. §891.125 Site and neighborhood Rehabilitation may vary in degree from §891.115 Notice of funding availability. standards. the gutting and extensive reconstruction Following an allocation of authority All sites must meet the following site to the cure of substantial accumulation under§891.110,HUD shall publish a and neighborhood requirements: of deferred maintenance.Cosmetic separate Notice of Funding Availability (a)The site must be adequate in size, improvements alone do not qualify as (NOFA)forihe Section 202 Program of exposure,and contour to accommodate rehabilitation under this definition. Supportive Housing for the Elderly and the number and type of units proposed. Rehabilitation may also Include for the Section 811 Program of and adequate utilities(water,sewer,gas, renovation,alteration,or remodeling for Supportive Housing for Persons with and electricity)and streets must be the conversion or adaptation of Disabilities in the Federal Register.The available to service the site. structurally sound property to the NOFAs will contain specific (b)The site and neighborhood must design and condition required for use Information on how and when to apply be suitable from the and furthering standpoint of under this part,or the repair or for the available capital advance compliance with the applicable replacement of major building systems authority,the contents of the provisions of Title VI ppof lic Civil Rights or components In danger of failure. application,and the selection process. Improvement of an existing structure Act of 19G4,the Fair housing Act. must require 15 percent or more of the 6891.120 Project design and cost Executive Order 11063 (27 FR 11527.3 estimated development cost to standards. CFR,1958-1963 Comp.,p.6S2);as rehabilitate the project to a useful life of In addition to the special project amended by Executive Order 12259,(46 55 years. standards described in§§891.210 and FR 1253.3 CFR,1980 Comp.,p.307));Replacement Reserve Account means 891.310,as applicable,the following section 504 of the Rehabilitation Act of a project account into which specified standards apply: 1973.and implementing IIUD funds are deposited.Such funds may be (a)Property standards.Projects under regulations. used only with the approval of the this part must comply with IIM (c)New construction sites must meet Secretary for repairs,replacement,and Minimum Property Standards,unless the following site and neighborhood capital improvements to the project. otherwise indicated in this part. requirements: Section 202 means section 202 of the (b)Accessibility requirements. [1)The site must not be located in an Housing Act of 1959(12 U.S.C.1701q), Projects under this part must compl area of minority concentration(or as amended,or the Supportive housing with the Uniform Federal Accessibility minority elderly concentration under for the Elderly Program authorized by Standards(See 24 CFR 40.7 for the Section 202 Program)except as that section. availability),section 504 of the permitted under paragraph(c)(2)of this Section 811 means section 811 of the Rehabilitation Act of 1973 and HUD's section.and must not be located in a National Affordable Housing Act(42 implementing regulations(24 CFR part racially mixed area If the project will U.S.C.8013).as amended,or the 8).and for new construction cause a significant increase in the Supportive upp flit a Pro Housing autho for rized b with multifamilymultifamily housing projects,the design residents r (or minorityortion of r minority elderly toinority DisaProgram Y and construction requirements of the nonminorit elder) residents,under section. Fair expenses mean necessaryFair Housing Act and EiUD's the Section 202 Program)in the area. costs(to Start-up a Section 202 or Section implementing regulationsro r CFR pars (2)A project may be located in an area 811 project.as applicable)Incurred b Sup For the Section for Program it of minority concentration(or minority P j PP Y Supportive Housing for Persons with elder) concentration,under the Section the Sponsor or Owner prior to Initial Disabilities,see additional accessibilityY .310(b). 202 Program)only if closing. requirements in§891 Tenant payment to Owner equals total (i)Sufficient,comparable tenant payment less utility allowance,if (c)Restrictions on amenities.Projects opportunities exist for housing for an must be modest in design.Amenities minority elderly households or minority Total tenant payment means the not eligible for IIUD funding include disabled households,as applicable(or monthly amount defined in,and individual unit balconies and decks, minority families.for projects funded determined in accordance with part 813 atriums,bowling alleys,swimming under§§891.655 through 891.790).in the Income rang pools,saunas,jacuzzis.and e of this chapter. to be served by the Utility allowance is defined in part dishwashers,trash compactors.and proposed project,outside areas of 813 of this chapter and is determined or washers and dryers in individual units minority concentration(see paragraph approved by IILID. in supportive housing far the elderly or [c)(3)of this section for further guidance Very low-income families shall have in independent living facilities for on this criterion);or the same meaning provided in section persons with disabilities.Sponsors may (ii)The project is necessary to meet 3(b)(2)of the United States Housing Art include certain excess amenities but overriding housing needs that cannot be of 1937(42 U.S.C. 1437a). they must pay for them from sources met in that housing market area(see other than the section 202 or 811 capital paragraph(c)(4)of this section for §891.110 Allocation of authority. advance.They must also pay for the further guidance on this criterion). In accordance with 24 CFR part 791, continuing operating costs associated (3)(i)Sufficient does not require that the Assistant Secretary will separately with any excess amenities from sources in every locality there he an equal allocate the amounts available for other than the Section 202 or 811 number of assisted units within and capital advances for the development of project rental assistance contract. outside of areas of minority housing for elderly households and for (d)Smoke detectors.After October 30, concentration.Ralher,application of disabled households,less amounts set 1992.each dwelling unit must include this standard should produce a aside by Congress for specific types of at Icast one battery-operated or hard- reasonable distribution of assisted units projects,and for amendments of fund wired smoke detector,in proper each year which over a period of sever, Federal Register / V 1, No. 57 / Friday, March 22, 1996 / ,s and Regulations 11959 r years will approach an appropriate households,for projects funded under following resignation or final closing, balance of housing opportunities within §§891.655 through'891.790),have been whichever occurs later. and outside areas of minority successful in finding units in (2)The following contracts between concentration.An appropriate balance nonminority areas under the Section 8 the Owner(or Borrower,as applicable) in any jurisdiction must be determined Certificate and Housing Voucher and the Sponsor or the Sponsor's in light of local conditions affecting the programs. nonprofit affiliate will not constitute a range of housing choices available for (G)Comparable housing opportunities conflict of interest if no more than two very.low-income minority elderly or havd been made available outside areas persons salaridd by the Sponsor or disabled households,as applicable(or of minority concentration through other management affiliate serve as nonvoting low-income minority families,for programs. directors on the Owner's board of projects funded under§§891.655 (4)Application of the overriding directors: through 891.790),and in relation to the housing needs criterion,for example, racial mix of the locality's population. permits approval of sites that-are an (i)Management contracts(including (ii)Units may be considered to be integral part of an overall local strategy associated management fees); comparable opporiunities if they have for the preservation or restoration of the (ii)Supportive services contracts the same household type(elderly or immediate neighborhood and of sites in (including service fees)under the disabled,as applicable)and tenure type a neighborhood experiencing significant Supportive Housing.for the Elderly (owner/renter);require approximately private investment that is demonstrably Program;and the same total tenant payment;serve the changing the economic character of the (iii)Developer(consultant)contracts. same income group;are located in the area(a"revitalizing area").An same housing market;and are in overriding housing need,however,may (b)Identity of interest.An identity of standard condition. not serve as the basis for determining interest between the Sponsor or Owner (iii)Application of this sufficient, that a site is acceptable if the only for Borrower,as applicable)and any comparable opportunities standard reason the need cannot otherwise be development team member or between involves assessing the overall impact of feasibly met is that discrimination on development team members is HUD-assisted housing on the the basis of race,color,creed,sex,or prohibited until two years after final availability of housing choices for very national origin renders sites outside closing. low-income minority elderly or disabled areas of minority concentration §891.135 Amount and terms of capital households,as applicable for low- unavailable,or if thekuse of this advances. income minority families,for projects standard in recent years has had the funded under§§891.655 through effect of circumventing the obligation to (a)Amount of capital advances.The 891.790),in and outside areas of provide housing choice. amount of capital advances approved minority concentration,and must take (d)The neighborhood must not be one shall be the amount stated in the into account the extent to which the that is seriously detrimental to family notification of fund reservation, following factors are present,along with life or in which substandard dwellings including any adjustment required by any other factor relevant to housing or other undesirable conditions HUD before the final closing.The choice: predominate,unless there is actively in amount of the capital advance may not (A)A significant number of assisted progress a concerted program to remedy exceed the appropriate development housing units are available outside areas the undesirable conditions. cost limit. of minority concentration. (e)The housing must be accessible to (b)Estimated development cost.The . (B)There is significant integration of social,recreational,educational, amount of the capital advance may not assisted housing projects constructed or commercial,and health facilities and exceed the total estimated development rehabilitated in the past ten years, services,and other municipal facilities cost of the project(as determined by relative to the racial mix of the eligible and services that are at least equivalent HUD),less the.incremental development population. to those typically found in cost associated with excess amenities (C)There are racially integrated neighborhoods consisting largely of and design features to be paid for by the neighborhoods in the locality unassisted,standard housingof similar (D)Programs are operated by the market rents. ar Sponsor under§891.120. locality to assist minority elderly or (f)For the Section 811 Program of §891.140 bevelopment cost limits. disabled households, applicable(or Supportive Housing for Persons with (a)HUD shall use the development minority for projects Disabilities,the additional site and cost limits,established by Notice in the wish to 891.nd 655 through using outside 89 .790),reas t at apply. neighborhood requirements in§891.320 Federal Register and adjusted by minority concentration. PP Y locality,to calculate the fund (E)Minority elderly or disabled §891.130 Prohibited relationships. reservation amount of the capital households,as applicable(or minority This section shall apply to capital advance to be made available to families,for projects funded under advances under the Section 202 individual Owners.Owners that incur §§891.655 through 891.790),have Program and the Section 811 Program, , actual development costs that are less benefitted from local activities(e.g., as well as to loans financed under than the amount of the initial fund acquisition and write-down of sites,tax §§891.655 through 891.790. reservation shall be entitled to retain 50 relief programs for homeowners, (a)Conflicts of interest.(1)Officers percent of the savings in a Replacement acquisitions of units for use as assisted and Board members of either the Reserve Account.Such percentage shall housing units)undertaken to expand Sponsor or the Owner(or Borrower,as fie increased to 75 percent for Owners choice for minority households(or applicable)may not have any financial that add energy efficiency features. families)outside of areas of minority interest in any contract with the Owner (b)The Replacement Reserve Account concentration. or in any firm which has a contract with established under paragraph (a)of this (F)A significant proportion of the Owner.This restriction applies so section may only be used for repairs, minority elderly or disabled long as the individual is serving on the replacements,and capital improvements households,as applicable(or minority Board and for a period of three years to the project. 21960 Federal Register ,A fit, No. 57 / Friday, March 22. 19c )Rules and Regulations §891.145 Owner deposit(Minimum Capital amended by Executive Order 12148(44 (g)lead-based paint.(1)The Investment). FR 43239.3 CFR.1979 Comp..r►.412)), requimments of the Lead-Based Paint As a Minimum Capital Investment, and implementing regulations in 24 CFR Poisoning Prevention Act(42 U.S.0 the Owner must deposit in a special part 55,all applications for intermediate 4821-4846)and implementing escrow account one-half of one percent care facilities for persons with regulations at 24 CFR pert 35 apply to (0.5%)of the HUD-approved capital developmental disabilities shall be any dwellings(except z(-ro-bedroom advance,not to exceed$10,000,to treated as critical actions requiring dwelling units)in section 811 housing assure the Owner's commitment to the consideration of the 500-year that were: housing.Under the Section 202 flood plain. Ii)Constructed or substantially Program.If an Owner has a National (c)Flood insurance.Tha Flood rehabilitated before 1978;and Sponsor or a National Co-Sponsor,the Disaster Protection Act of 1973(42 (ii)to which any child under 6 years Minimum Capital Investment shall be U.S.C.4001). of age resides or is expected to reside. one-half of one percent(0.5%)of the (d)Labor standards.(I)All laborers (2)Under the Section 811 Pr ram HUD-approved capital advance,not to and mechanics(other than volunteers end projects funded under SS 89.655 exceed$25,000. under the conditions set out in 24 CFR p ! part 70)employed by contractors and through 891.790,the lead based paint §891.lso Operating cost standards. subcontractors in the construction requirements described In S 891.325 HUD shall establish operating cost (including rehabilitation)of housing also apply. standards based on the average annual with 12 or more units assisted under §691.160 Audit requirements. operating cost of comparable housing this part shall be paid wages at rates not Nonprofits receiving assistance under for the elderly or for persons with less than those prevailing in the locality. this part are subject to the audit disabilities in each field office.and shall as determined by the Secretary of Labor requirementsartarein 24 CFR art audit adjust the standard annually based on In accordance with the Davis-Bacon Actp 45. appropriate indices of increases in (40 U.S.C.276a-276a-5).A group home §891.165 Duration of capital advance. housing costs such as the Consumer for persons with disabilities is not The duration of the fund reservation Price Index.The operating cost covered by the labor standards. standards shall be developed based on (2)Contracts involving employment for the capital advance is 18 months the number of units.However,under of laborers and mechanics shall be from the date of issuance with limited the Section 811 Program and for projects subject to the provisions of the Contract exceptions up to 24 months,as funded under S§891.655 through Work Hours and Safety Standards Act approved by IIUD on a case-by-case 891.790,the operating cost standard for (40 U.S.C.327-333). basis. group homes shall be based on the (3)Sponsors,Owners.contractors, §891.170 Repayment of capital advance. number of residents.HUD may adjust and subcontractors must comply with the operating cost standard applicable to all related rules,regulations,and (a)Interest prohibition and an approved project to reflect such re uirements. repayment.A capital advance provided factors as differences in costs based on (e)Displacement,relocation.and real under this part shall bear t interest location within the field office property acquisition.(1)Minimizing and its repayment shall not be required jurisdiction.The operating cost standard displacement.Consistent with the other sa long as the housing project remains pals and objectives of this art, available for very low-income elderly will be used to determine the amount of g l p families or arsons with disabilities,as the project assistance initially reserved Sponsors and Owners(or Borrowers,if p for a project. applicable)shall assure that they have applicable,in accordance with this part. taken all reasonable steps to minimize The capital advance may not be repaid §891.155 Other Federal requirements. the displacement of persons(families, to extinguish the requirements of this In addition to the requirements set Individuals,businesses,nonprofit part.To ensure its interest in the capital forth in 24 CFR part 5,the following organizations,and farms)as a result of advance.HUD shall require a note and requirements in this§891.155 apply to a project assisted under this art. mortgage,use agreement,capital the Section 202 and Section 811 (2)Relocation assistance for displaced advance agreement and regulatory Programs,as well as projects funded persons.A displaced person must be agreement from the Owner in a form to under§§891.655 through 891.790. provided relocation assistance at the be presc-rihed by[IUD. Other requirements unique to a levels described in,and in accordance (h)The transfer or physical and particular program are described in with the requirements of,the Uniform financial assets orany project under this subparts B and C of this part.as Relocation Assistance and Real Property pan is prohibited,unless HUD gives ap licahle. Acquisition Policies Act of 1970,as prior written-approval..Approval for �a)Affirmative fair housing marketing. amended(URA)142 U.S.C.4201-4655). transfer will not he granted unless HUD (1)The affirmative fair housing as implemented by 49 CFR part 24. determine<that the transfer to a privatu marketing requirements of 24 CFR part (3)Item pmpertyacquisition nonprofit corporation or consumer 200.subpart M and the implementing requirements.The acquisition of real LunI)CMI r:(un(ler line Sra.tion 2(12 re ulations at 24 CFR part 108;and property for a project is subject to the 11ragnim)or a nonprofit organization 2)The fair housing advertising and URA and the requirements described in (under the Section 811 Program)is parr poster guidelines at 24 CFR parts 109 49 CFR part 24.subpart B. of a transaction that will ensure the and 110. (f)Intergovernmental review.The continued operation of the project for (b)Environmental.The National requirements for Intergovernmental not less than 4U years(from the dale of Environmental Policy Act of 1969, review in Executive Order No.12372 original closings)in a mariner that will HUD's implementing regulations at 24 (47 FR 30959.3 CFR.1982 Comp.,p. provide.rental Inuusing fur very low- CFR part 50.including the related 197,as amended by Executive Order No. income elderly persons or persons with authorities described in 24 CFR 50.4. 12416(48 FR 15587,3 CFR. 1983 disahi lilies.as applicable.on terms at For the purposes of Executive Order No. Comp.,p. 18G))and the implementing; least as advantageous to existing and 11988,Floodplain Management(42 FR regulations at 24 CFR part 52 are future.tenants as the terms required by 26951.3 CFR,1977 Comp.,p.117);as applicable to this program. the original capital advance. Federal Register I Vol . No. 57 / Friday. March 22. 19913 / ei..) and Regulations 119G1 §891.175 Technical assistance. activities of daily living as defined In "Sponsor"does not mean a public body For purposes of the Section 202 this section.Owners may establish or the instrumentality of a public body. Program and the Section 811 Program, additional eligibility requirements the Secretary shall make available acceptable to IIUD based on the §8912t0 Special protect standards. appropriate technical assistance to standards in local supportive services In addition to the applicable project assure that applicants having limited programs. standards in§891.120,resident units in resources,particularly minority Owner means a single-purpose private .Section 202 projects are limited to applicents,are able to participate more non�rofit organization that may be efficiencies or one-bedroom units.If a fully in the programs. esta lisped by the Sponsor that will resident manager is proposed fora receive a capital advance and project project,up to two bedrooms could be Subpart B—Section 202 Supportive rental assistance payments to develop provided for the resident manager unit. Housing for the Elderly and operate supportive housing for the §891.200 Applicability. elderly as Its legal owner.Owner does §891215 Limits on number of units. The requirements set forth in this not mean a public body or the (a)!IUD may establish,through q instrumentality of any public body.The publication of a notice in the Federal subpart B apply to the Section 202 purposes of the Owner must include the Register,limits on the number of units Program of Supportive Housing for the promotion of the welfare of the elderly. that can be applied for by a Sponsor or Elderly only.and to applicants, The Owner may not be controlled by or Co-sponsor In a single geographical Sponsors,and Owners under that under the direction of persons or firms region and/or nationwide. program. seeking to derive profit or gain therefrom. (b)Affiliated entities that submit §891.205 Definitions. Private nonprofit organization means separate applications shall be deemed to As used in this part in reference to the any incorporated private institution or be a single entity for purposes of these Section 202 Program,and in addition to limits. the applicable definitions in§891.105: foundation: may also Acquisition means the purchase of(or (i)That has tax-exempt status under publication of a notice in establish, Federal otherwise obtaining title to)existing section 5 Code(3)or 86(2 of the Internal p housing and related facilities from the Revenue Code of 198G(2(i U.S.C_1 et Register,the minimum size of a single g seq.) project. Resolution Trust Corporation. {2j No part of the net earnings of Activities of doily living(ADQ means which inures to the benefit of any 891220 Arohlbited tatllittes eating.dressing,bathing,grooming,and member.founder,contributor.or Projects may not include facilities for household management activities,as individual; infirmaries,nursing stations,or spaces further described below: (3)That has a governing board: for overnight care. (1)E'ating---May need assistance with (i)The membership of which is cooking,preparing,or serving food,but selected in a manner to assure that there §891'225 Provisional services. must be able to feed self; is significant representation of the views (a)In carrying out the provisions of (2)Bathing—May need assistance in of the community in which such this part.IMM shall ensure that housing getting in and out of the shower or tub. housingg is located;and assisted under this part provides but must be able to wash set.; (ii)Ttrat is responsible for the services as described in section 202(12 (3)Grooming—May need assistance in operation of the housing assisted under U.S.C.1701q(g)(1)). washing hair,but must be able to take this part•and care of personal appearance: (31 That is approved b HUD as to ne h manHUD shall ensure that Owners (4)Dressing—Must be able to dress administrative and financial have the managerial capacity es perform self,but may need occasional assistance; responsibility. the U.S.C. nation of services described in and Services expenses means those costs 12 .S.C.I701q(g}(2). (5)Home management activities— needed to provide the necessary (21 Any cost associated with this May need assistance in doing services far the elderly tenants,which paragraph shall be an eligible cost under housework,grocery shopping,laundry, may include,but are not limited to: the contract for project rental assistance. or getting to and from activities such as health related activities,continuing Any cost associated with the going to the doctor and shopping,but education,welfare,informational, employment of a service coordinator must be mobi to.The mobility recreational.homemaking,meal and shall also be an eligible cost,except if requirement does not exclude persons nutritional services,counseling,and the project is receiving congregate in wheelchairs or those requiring referral services as well as housing services assistance under mobility devices. transportation as necessary to facilitate section 602 of the National Affordable Congregate space(hereinafter referred access to these services. Housing Act.The 1I1.113-approved to as community space)shall have the Sponsor means any private nonprofit service casts will be an eligible expense meaning provided in section 202(12 entity,including a consumer to be paid from project rental assistance. U.S.C. 1701q(h)(1)).The term cooperative: not to exceed$is per unit per month. "community spaces"excludes offices. (1)No part of the net earnings of The balance of service costs shall be halls,mechanical roams,laundry which inures to the benefit of any provided from other sources,which may rooms,parking areas.dwelling units, private shareholder,member.founder, include co-payment by the tenant and lobbies.Community space does not contributor,or individual. receiving the service.Such co-payment include commercial areas. (2)That is not controlled by,or under shall not be included in the Total Elderly person means a household the direction of,persons or firms Tenant Payment. composed of one or more persons at seeking to derive profit or gain least one of whom is 62 years of age or therefrom;and §891.23o Selection preferences. more at the time of initial occupancy. (3)That is approved by the Secretary For purposes of the Section 202 Frail elderly means an elderly person as to administrative and financial Program,the selection preferences in 24 who is unable to perform at least three capacity and responsibility.The term CPR part S.subpart D apply. 11962 Federal Registek%,,�4ol. 61, No. 57 / Friday, March 22, 1f Rules and Regulations Subpart C—Section 811 Supportive (ff)That is responsible for the criteria in section 811 (42 U.S.C. Housing for Persons With Disabilities operation of the housing assisted under 8013(k)(2))will not be eligible for this part;and occupancy in a section 811 project. §891.300 Applicability. (4)That is approved by HUD as to Sponsor means any nonprofit entity: The requirements set forth in this financial responsibility. (1)That has tax-exempt status under subpart C apply to the Section 811 Ownermeans a single-purpose section 501(c)(3)of the Internal Revenue Program of Supportive Housing for nonprofit organization established by Code of 1986(26 U.S.C.1 et seq.); Persons with Disabilities only,and to the Sponsor that will receive a capital (2)No part of the net earnings of applicants,Sponsors,and Owners under advance and project rental assistance which inures to the benefit of any that program, payments to develop and operate,as its private shareholder,member,founder, §891.305 Definitions. legal owner,supportive housing for contributor or individual; persons with disabilities under this part. (3)That is not controlled by or.under As used in this part in reference to the The purposes of the Owner must the direction of persons or firms seeking Section 811 Program,and in addition to include the promotion of the welfare of to derive profit or gain therefrom; the applicable definitions in§891.105: persons with disabilities.The Owner (4)That has a governing board the Acquisition means the purchase of for may not be controlled by or under the membership of which is selected in a otherwise obtaining title to)existing direction of persons or firms seeking to manner to assure that there is significant structures to be used as housing for derive profit or gain therefrom. representation of the views of persons persons with disabilities,including person with disabilities shall have the with disabilities;and housing and related facilities from the meaning provided in Section 811(42 (5)That is approved by HUD as to Resolution Trust Corporation.Capital U.S.C.8013(k)(2)).The term"person administrative and financial capacity advances are not available in connection with disabilities"shall also include the and responsibility. with facilities owned and operated by following: the Sponsor as housing for persons with (1)A person who has a developmental §89t.310 Special project standards. disabilities. disability,as defined in section 102(7) In addition to the applicable project Congregate space(hereinafter referred of the Developmental Disabilities standards in§891.120,the following to as community space)means space for Assistance and Bill of Rights Act(42 special standards apply to the Section multipurpose rooms,common areas, U.S.C.6001(5)),i.e.,if he or she has a 811 Program and to projects funded and other space necessary for the severe chronic disability which: under§§891.655 through 891.790: provision of supportive services. (i)Is attributable to a mental or (a)Minimum group home standards. Community space does not include physical impairment or combination of Each group home must provide a commercial areas. mental and physical impairments; minimum of 290 square feet of prorated Disabled household means a (ii)Is manifested before the person space for each resident,including a household composed of: attains age twenty-two; minimum area of 80 square feet for each (1)One or more persons at least one (iii)Is likely to continue indefinitely; resident in a shared bedroom(with no of whom is an adult(18 years or older) (fv)Results in substantial functional more than two residents occupying a who has a disability; limitation in three or more of the shared bedroom)and a minimum area of (2)Two or more persons with following areas of major life activity: 100 square feet for a single occupant disabilities living together,or one or (A)Self-care; bedroom;at least one full bathroom for more such persons living with another (B)Receptive and expressive every four residents;space for recreation person who is determined by HUD, language; at indoor and outdoor locations on the based upon a certification from an (C)Learning; project site;and sufficient storage for appropriate professional(e.g.,a (D)Mobility; each resident in the bedroom and other rehabilitation counselor,social worker, (E)Self-direction; storage space necessary for the or licensed physician)to be important to (F)Capacity for independent living; operation of the home.If the project their care or well being;or (G)Economic self-sufficiency;and involves acquisition(with or without (3)The surviving member or members (v)Reflects the person's need for a rehabilitation),the structure must at of any household described in combination and sequence of special, least be in compliance with applicable paragraph(1)of this definition who interdisciplinary,or generic care, State requirements.In the absence of were living in a unit assisted under this treatment,or other services which are of such requirements,the above standards part,with the deceased member of the lifelong or extended duration and are shall apply. household at the time of his or her individually planned and coordinated. (b)Additional accessibility death. (2)A person with a chronic mental requirements.In addition to the Nonprofit organization means any illness,i.e.,a severe and persistent accessibility requirements in institution or foundation: mental or emotional impairment that §891.120(b),the following requirements (1)That has tax-exempt status under seriously limits his or her ability to live apply to the Section 811 Program and to section 501(c)(3)of the Internal Revenue independently,and which impairment projects funded under§§891.655 Code of 1986(26 U.S.C.1 et seq.); could be improved by more suitable through 891.790: (2)No part of the net earnings of housing conditions. (1)All entrances,common areas,units which inures to the benefit of any Board (3)A person infected with the human to be occupied by resident staff,and member,founder,contributor,or acquired immunodeficiency virus(HIV) amenities must be readily accessible to individual: and a person who suffers from and usable by persons with disabilities. (3)That has a governing board; alcoholism or drug addiction,provided (2) In projects for chronically (i)The membership of which is they meet the definition of"person with mentally ill individuals,a minimum of selected in a manner to assure that there disabilities" in Section 811 (42 U.S.C. 10 percent of all dwelling units in an is significant representation of the views 8013(k)(2)).A person whose sole independent living facility(or 10 of the community in which such impairment is a diagnosis of HIV percent of all bedrooms and bathrooms housing is located(including persons positive or alcoholism or drug addiction in a group home,but at least one of each with disabilities);and (i.e.,does not meet the qualifying such space),must be designed to be Federul Register / Vci �l, No. 57 1 Friday, March 22, 1996 1 -s and'Regulations 119G3 accessible or adaptable for persons with for very low-income workers(or low- windowsills and frames,doors and disabilities. Income workers,as applicable),must frames,and other protruding woodwork. (3)in projects for developmentally not be excessive. Defective paint surfaces means a disabled or physically disabled persons. (b)Projects should be located In surface on which the paint is cracking. all dwelling units in an Independent neighborhoods where other family scaling,chipping,peeling,or loose. . living facility(or all bedrooms and housing is located.Projects should not Elevated blood lead level orEVL bathrooms In a group home)crust be be located adjacent to the following means excessive absorption of lead:that designed to be accessible or adaptable facilities,or In areas where such Is.a confirmed concentration of lead in for persons with physical disabilities.A facilities are concentrated:schools or whole blood of 20 ugldl(micrograms of project involving acquisition and/or day-care centers for persons with lead per deciliter)for a single test or of rehabilitation may provide a lesser disabilities,workshops,medical 15-19 ug/dl in two consecutive tests 3— number IL facilities.or other housing primarily 4 months apart. (i)The cost of providing full serving persons with disabilities.Not Lead-based paint means a paint accessibility makes the project more than one group home maybe surface.whether or not defective. financially In Feasible; located on any one site and no such identified as having a lead content (ii)Fewer than one-half of the home may be located on a site greater than or equal to i mg/cm2 Intended occupants have mobility contiguous to another site containing (miIIigram per square centimeter)or.5 im airrnents:and such a home. percent by weight or 5000 parts per �FIQ The project complies with the million(PPM). re uirements of 24 CFR 8.23. §89t.325 t cal based paint requirements (3)In the case of a structure �4)For the purposes of paragraph(b) In addition to the other Federal constructed before 1978,the Sponsor of this section,the following definitions requirements described In§891.155.the must Inspect the structure for defective a 1 following lead-based paint requirements pF)accessible describes a site, apply to the Section 811 Program and to Paint surfaces before it submits site building.facility,or portion thereof that Projects funded under§§891.655 information.If defective paint surfaces complies with the Uniform Federal througb 891.790: are found,treatment in accordance with Accessibility Standards and that can be (a)The requirements of the Lead- Paragraph(a)(5)of this section is approached,entered.and used b Based Paint Poisoning Prevention Act required.Correction of defective hysicall disabled people, Y (42 U.S.C.4821-4846)and surfaces found during the Initial physically Y P P inspection must be tompleted before (ii)Adaptability means the ability of implementing regulations at 29 CFR part certain building spaces and elements. 35(except as superseded in paragraph initial occupancy of the project. such as kitchen counters,sinks,and (b)of this section)apply to the Correctlon of defective paint conditions grab bars,to be added or altered so as dwellings(except zero-bedroom discovered at periodic inspection must to accommodate the rieeds of either dwelling units or units that are certified be completed'within 30 calendar days of disabled or nondisabled persons.or to by a qualified inspector to be free of their discovery.When weather accommodate the needs of either Lead-based paint or the lead-based paint conditions prevent completion of repainting of exterior surfaces within disabled or nondisabled persons,or to hazards have been eliminated)in e repainting may b the 30-day period,repai accommodate the needs of persons with housing assisted under this subpart and delayed,but covering a removal be different types or degrees of disability. to projects funded under§§a91.655 throu defective paint must be completed sgh 891.790 that: §891.315 Prohlb[led facilities. (1)4yere constructed before 1978:and within the prescribed period. This section shall apply to capital (2)In which any child under 6 years (4)In the case of a structure advances under the Section 811 of agge resides or is expected to reside. constructed before 1978.If the Owner Program,as well as loans financed @)(1)This paragraph(b)implements (or Borrower.if applicable)is presented under subpart E of this part.Project the provisions of the Lead-Based Paint with test results that indicate that a facilities may not include infirmaries. Poisoning Prevention Act.42 U.S.C. child under the age of 6 years occupies nursing stations,spaces dedicated to the 4821 et seq..by establishing procedures the structure and has an elevated blood delivery of medical treatment or to eliminate,as far as practicable.the lead level(EDL).the Owner(or physical therapy,padded rooms,or hazards of lead-based paint poisoning Borrower,if applicable)must cause the space for respite care or sheltered with respect to covered structures for unit to be tested for lead-based paint on workshops,even If paid for from which assistance is provided under the chewable surfaces.Testing must be sources other than the HUD capital Section 811 Program and under conducted by a State or local health or advance or loan.Except for office space §§891.655 through 891.790.This housing agency,by an inspector used by the Owner(or Borrower,if paragraph(b)is promulgated under 24 certified or regulated by a State or local applicable)exclusively for the CFR 35.24(b)(4)and supersedes,with health or housing agency,or an administration of the project,project respect to these programs,the organization recognized by HUD.Lead facilities may not include office space. requirements prescribed in subpart C of content shall be tested by using an X-ray 24 CFR part 35. fluorescence analysis(XRF)or by §891.320 Site and neighborhood (2)The following definitions apply to laboratory analysis of paint samples. standards. this section: Where lead-based paint on chewable in addition to the requirements in Applicable surface means all intact surfaces is identified,covering or §891.125 and§891.680,if applicable, and nonintact painted interior and removal of the paint surface in the following site and neighborhood exterior surfaces bf a residential accordance with paragraph(a)(5)of this requirements apply to the Section 811 sinirtiire. section is required and treatment shall Program: Chewable surface means all be completed within the time limits In (a)Travel time and cost via public protruding painted surfaces up to five paragraph(b)(3)or this section. transportation or private automobile, feet from the floor or ground,that are (5)Treatment of defective paint from the neighborhood to places of readily accessible to children under 6 surfaces and chewable surfaces must employment providing a range,of iobs years of age,e.g.,protruding corners, consist of covering or removal of the 21964 Federal Register " Vol. 61, No. 57 / Friday, March 22, 29' 1 Rules and Regulations paint in accordance with the following to protect tenants from hazards replacement of capital Items).All requirements: associated with abatement procedures. functions must be performed in (i)A defective paint surface shall be (a)The Owner(or Borrower,if complianQe with equal opportunity treated If the total area of defective paint applicable)must keep a copy of each re uirements. on a component is: Inspection report for at least three years. c)Contracting for services.(1)With (A)More than 10 square feet on an If a unit requires testing,or treatment of HUD approval,the Owner may contract exterior wall; chewable surfaces based on the testing, with a private or public entity for (B)More than 2 square feet on an the Owner must keep the test results, performance of the services or duties Interior or exterior component with a and,If applicable.the certification of required in paragraphs(a)and(b)of this large surface area,excluding exterior treatment IndaCnitety.The records must section.However,such an arrangement walls and Including,but not limited to, indicate which chewable surfaces in the does not relieve the Owner of ceilings.floors.doors,and Interior units have been tested or treated.If responsibility for these services and walls;or records establish that certain chewable duties.All such contracts are subject to (C)More than 10 percent of the total surfaces were tested.or tested and the r8strldicsns governing prohibited surface area on an interior or exterior treated,in accordance with the contractual relationships described in component with a small surface area, standards prescribed in this section, §891.130.("these prohibitions do not Including.but not limited to,window these surfaces do not have to be tested extend to management contracts entered sills,baseboards and trim. or treated at any subsequent time. Into by the Owner with the Sponsor or (ii)Acceptable methods of treatment Its nonprofit affiliate.) are:removal by wet scraping,wet Subpart O—Project Management (2)Consistent with the objectives of sanding,chemical stripping on or off §891.400 Responsibilities of Owner. Executive Order No.11725(36 .. site.replacing painted components, 19967,$CFR,1971-1975 Comp.,p.616; scraping with infrared or coil type heat (a)&farketing.(1)The Owner must as smanded by Executive Order No. P g yP commence and continue diligent 12007(42 FR 42839,3 CFR,1977 gun with temperatures below 1100 marketing activities not later than 90 Coinp..p,139));Executive Cider No. degrees,IIEPA vacuum sanding.IMPA days before the anticipated date of 12432(48 FR 32551,3 CFR,1983 vacuum needle gun.contained availability of the first unit or Cornp.,p.198);and Executive Order No. hydroblasting or high pressure wash occupancy of the group home.Market 12138(44 FR 29637.3 CFR,1979 with HEPA vacuum,and abrasive activities shall Include the provision of Comp.,p.393;as amended by Executive sandblasting with IIEPA vacuum. notices of the availability of housing Order No.12608(52 FR 34617.3 CFR, Surfaces must be covered with durable under the program to operators of I987 Comp.,p.245)),the Owner will materials with joints and edges scaled temporary housing for the homeless in promote awareness and participation of and caulked as needed to prevent the the same housing market. minority and women's business escape of lead contaminated dust. (2)Marketing must be done In enterprises in contracting and (iii)prohibited methods of removal accordance with a[IUD-approved procurement activities. are:open flame burning or torching; aftinnative fair housing marketing plan (dl Submission of financial and machine sanding or grinding without a and all Federal.State or local fair operating statements.The Owner must I1EPA exhaust;uncontained housing and equal opportunity submit to HUD. hydroblasting or high pressure wash; requirements.The purpose of the plan (1)Within 60 days after the end of and dry scraping except around and requirements is to achieve a each fiscal year of project operations, electrical outlets or except when condition in which eligible households financial statements for the project treating defective paint spots no more or similar income levels in the same audited by an independent public than two square feet in any one interior housing market area have a like range of accountant and in the form required by room or space(hallway,pantry.etc.)or housing choices available to them HUD;and totalling no more than twenty square regardless of discriminatory (2)Other statements regarding project feet on exterior surfaces. considerations such as their race,color, operation,financial conditions and (iv)During exterior treatment,soil creed,religion,familial status. occupancy as HUD may require to and playground equipment must be disability,sex or national origin. administer the PRAC and to monitor protected from contamination. (3)At the time of PRAC execution,the project operations. (v)All treatment procedures must be Owner must submit to Hl1D a list of (a) Use of project funds.The Owner concluded with a thorough cleaning of leased and unleased assisted units(or in shall maintain a separate interest all surfaces in the roam or area of the case of a group home.leased and bearing project fund account in a treatment to remove fine dust particles. unleased residential spaces)with a depository or depositories which are Cleanup must be accomplished by wet justification far the unleased units or members of the Federal Deposit washing surfaces with a lead residential spaces,in order to qualify for Insurance Corporation or National solubilizing detergent such as trisodium vacancy payments for the unleased Credit Union Share Insurance Fund and phosphate or an equivalent solution. units or residential spaces. shall deposit all tenant payments, (vi)Waste and debris must be (b)MannSentent and maintenance. charges,income and revenues arising disposed of in accordance with all The Owner is responsible for all from project operation or ownership to applicable Federal.State and local laws. management functions.These functions this account.All project funds are to be (6)In lieu of the procedures set forth include selection and admission of deposited in Federally insured in the preceding clanse,the Owner(or tenants,required reexaminations of accounts.All balances shall be fully Borrower,irapplicable)may,at its incomes for households occupying Insured at all times.to the maximum discretion,abate all interior and exterior assisted units or residential spaces, extent possible.Project funds must be chewable surfaces in accordance with collection of tenant payments, used for the operation of the project the methods set out paragraph(a)(5)of termination of tenancy and eviction,- (including required insurance coverage), this section. and all repair and maintenance and to make required deposits to the (7)The Owner(or Borrower,if functions(including ordinary and replacement reserve under§891.405.in applicable)must take appropriate action extraordinary maintenance and accordance with HUD-approved budget. Federal Register I Vk�1, No. 57 ! Friday. March 22, 299G ! Us and Regulations 2196S Any remaining project funds In the maintain a written,chronological housing and/or services provided project funds account(including earned waiting list showing the name.race, re ardless of the person's disability. interest)following the expiration of the gender,ethnicity,and date of each (d)Unit assignment.if the Owner fiscal year shall be deposited in a person applying for the pprogram, determines that the household is Federally-insured residual receipts (b)Application for admission.The eligible and Is otherwise acceptable and account within 60 days following the Owner must accept applications for units(or residential spaces in a group end of the fiscal year.Withdrawals from admission to the project in the form home)are available,the Owner will this account may be made only for prescribed by HUD,and(under the assign the household a unit or project purposes and with the approval Section 202 Program only)is obligated residential space in a group home.If the of HUD.If there are funds remaining in to confirm all information provided by household will occupy an assisted unit, the residual receipts account when the applicant families on the application. the Owner will assign the household a mortgage Is satisfied,such funds shall Applicant households applying for unit of the appropriate size In be returned to HUD, assisted units(or residential spaces In a accordance with IIUD's general '(fl Reports.The Owner shall submit group home)must complete a occupancy guidelines.If no suitable such reports as HUD may prescribe to certification of eligibility as part of the unit(or residential space in a group demonstrate compliance with application for admission.Applicant home)Is available,the Owner will place applicable civil rights and equal households must meet the disclosure the household on a waiting list for the opportunity requirements.See and verification requirements for Social project and notify thebousehold when §891.410(a). Security Numbers,as provided by 24 a suitable unit or residential space may (Approved by the Office of Management and CFR part 5,subpart B.Applicant become available.If the waiting list is so Budget under control number 2502-0470) families must sign and submit consent long that the applicant would not be forms for the obtaining of wage and likely to be admitted for the next 12 5891.405 Replacement reserve. claim Information from State Wage months,the Owner may advise the (a)Establishment of reserve.The Information Collection Agencies,as applicant that no additional Owner shall establish and maintain a provided by 24 CFR part 5.subpart B. applications for admission are being replacement reserve to old In funding Both the Owner and the applicant considered for that reason. extraordinary maintenances and repair household must complete and sign the (e)Ineligibility determination.If the and replacement of capital Items. application for admission.On request, Owner determines that an applicant is (b)Deposits to reserve.The Owner the Owner must furnish copies of all ineligible for admission or the Owner is shall make monthly deposits to the applications for admission to IIUD. not selecting the applicant for other replacement reserve In an amount (c)Determination o/eligibility and reasons,the Owner will promptly notify determined by HUD. selection of tenants.(1)The Owner Is the applicant in writing of the (c)Level of reserve.The reserve must responsible for determining whether determination,the reasons for the be built up to and maintained at a level applicants are eligible for admission and determination.and the applicant's right determined by HUD to be sufricient to for the selection of households.To be to request a meeting to review the meet projected requirements.Should eligible for admission.an applicant rejection,in accordance with HUD the reserve reach that level.the amount must be an elderly person or a person requirements.The review,If requested. of the deposit to the reserve may be with disabilities,as applicable(as may not be conducted by a member of reduced with the approval of HUD. defined in§§891.205 and 891.305, the Owner's staff who made the initial (d)Administrotion of reserve. respectively);must meet the disclosure decision to reject the applicant.The Replacement reserve funds must be and verification requirements for Social applicant may also exercise other rights deposited with HUD or In a Federally- Security Numbers,as provided by 24 (e.g.,rights granted under Federal.State Insured depository in an interest. CFR part 5,subpart B;must sign and or local civil rights laws)If the applicant bearing account(s)whose balances(sl are submit consent forms for the obtaining believes he or she is being discriminated fully insured at all times.All earnings of wage and claim information from against on a prohibited basis. including interest on the reserve must State Wage Information Collection (fl Records.Records on applicants and be added to the reserve. Funds may be Agencies,as provided by 24 CFR part S. approved eligible households.which drawn from the reserve and used only subpart U;and must be a very low- provide racial,ethnic.gender and place In accordance with HUD guidelines and income family,as defined in§891.105. of previous residency data required by with the approval of,or as directed by. (2)Under the Section 811 Program: HUD,must be retained for three years. Hub. (i)in order to be eligible for See§891.410(a). admission,the applicant must also meet (g)Reexoni nntinn njlimisehnld §891.410 Selection and admission of any project occupancy requirements family income?and caatpnsilion.(1) tenants. op roved by HUD. Regular reexaminations.The Owner er U (a) Written procedures.The Ownr)Owners shall make selections in a must reexamine the income and shall adopt written tenant selection nondiscriminatory manner without composition of the household at least procedures that ensure regard to considerations such as race, every 12 montic5 I Innn vvr+rrn1;nn of nondiscrimination in the selection of religion.color.sex,national origin, 1111!information.Ilia Owner must make tenants and that are consistent with the familial status,or disability.An Owner appropriate adjustncunis in the total purpose of improving housing may.with the approval of the Secretary. tenant payment in accordance with part oFportunities for very low-income limit occupancy within housing 813 of this chapwr,as modified by e derly persons and persons with developed under this part 891 to §891.105,and roust determine whether disabilities(as applicable);and persons with disabilities who have the houseliol,i's unit size is still reasonably related to program eligibility similar disabilities and require a similar appropriate.The Owner must adjust and an applicant's ability to perform the set of supportive services in a tenant paynivnt and Ilie project rental obligations of the lease.Owners shall supportive housing environment. assistance p:ivcrcent,and must carry out promptly inform in writing any rejected However,the Owner must permit any unit transfer in arcordanc a with applicant of the grounds for any occupancy by any qualified person wi0i 1IUD standards.At the tince of rejection.Additionally.Owners shall a disability who could benefit from the reexaminatinn under paragraph(g)(1)of 11966 Federal Registe Iol.'61, No. 57 / Friday, March 22. 1 Rules and Regulations this section,the Owner must require the obtaining of wage and claim information appropriate,project rental assistance household to meet the disclosure and from State Wage Information Collection payment with respect to the unit will verification requirements for Social Agencies(as provided by 24 CFR part 5. not be reduced or terminated until the Security Numbers,as provided by 24 subpart B). eligible household has been relocated to CFR part 5,subpart B.For requirements (h)Selection preferences.Under the an appropriate alternate unit.If regarding the signing and submitting of Section 202 Program,the selection possible.the Owner will,as promptly as consent forms by families for obtaining preferences in 24 CFR part S.subpart D possible,offer the household an of wage and claim Information from apply, appropriate alternate unit.The Owner State Wage Information Collection may receive vacancy payments for the A eticies,see 24 CFR part 5.subpart B. §891.915 Obligations of the household ormily. vacated unit if the Owner complies with fa 2)Interim reexaminations.The This section shall apply to capital the requirements of§891.945. household must comply with the PP Y ca P provisions In its lease regarding Interim advances under the Section 202 §891.425 Lease requirement& reporting of changes in income.If the Program and the Section 811 Program. This section shall apply to capital Owner receives information concerning as well as loans financed under subpart advances under'the Section 202 a change In the household's income or E of this part. Program and the Section 811 Program, other circumstances between regularly (a)Requirements.The household(or as well as loans financed under subpart scheduled reexaminations,the Owner family.as applicable)shall: E of this part. must consult with the household and (1)Pay amounts due under the lease (a) Term of lease.The term of the make any adjustments determined to be directly to the Owner(or Borrower,as lease may not be less than one year. appropriate.See 24 CFR part 5,subpart applicable); Unless the lease has been terminated by B for the requirements for the disclosure 2)Supply such certification,release appropriate action,upon expiration of and verification of Social Security of information,consent,completed the lease term,the household and Number at interim reexaminations forms or documentation as the Owner Owner(or family and Borrower,as involving new household members.For (or Borrower,as applicable)or HUD applicable)may execute a new lease for requirements regarding the signing and determines necessary.including a term not less than one year,or may submitting of consent forms by families information and documentation relating take no action.If no action is taken,the for the obtaining of wage and claim to the disclosure and verification of lease will automatically be renewed for Information from State Wage Social Security Numbers,as provided successive terms of one month. Information Collection Agencies,see 24 by 24 CFR part S.subpart B.and the (b)Termination by the household(or CFR part 5,subpart U.Any change in signing and submission of consent family,as applicable).All leases may the household's income or other forms for the obtaining of wage and contain a provision that permits the circumstances that result In an claim Information from State Wage household(or family)to terrinate the adjustment in the total tenant payment. Information Collection Agencies,as lease upon 30 days advance notice.A tenant payment,and project rental provided by 24 CFR part 5.subpart B; lease for a term that exceeds one year assistance payment must be verified. (3)Allow the Owner(or Borrower,as must contain such provision. (3)Continuation of project rental applicable)to inspect the dwelling unit (c)Form.The Owner for Borrower,as assistance payment.(i)A household or residential space at reasonable times applicable)shall use the lease form shall remain eligible for project rental and after reasonable notice; prescribed by HUD.In addition to assistance payment untilthe total tenant (4)Notify the Owner(or Borrower,as required provisions of the lease form, payment equals or exceeds the gross applicable)before-vacating the dwelling the Owner(or Borrower)may include a rent(or a pro rata share of the gross rent unit or residential space;and provision in the lease permitting the in a group home).The termination of (5)Use the dwelling unit or Owner(or Borrower)to enter the leased subsidy eligibi)ity will not affect the residential space solely for residence by premises at any time without advance household's other rights under its lease. the household(or family,as applicable) notice when there is reasonable cause to Project rental assistance payment may and as the household's(or family's) believe that an emergency exists or that be resumed if,as s result of changes in principal place of residence. health or safety of a family member is income.rent or other relevant (b)Prohibitions.The household for endangered. circumstances during the term of the family,as applicable)shall not: PRAC.the household meets the Income (1)Assign the lease or transfer the §891.430 Termination of tenancy and eligibility.requirements of 24 CFR part unit or residential space;or modification of lease. 813(as modified In§891.105)and (2)Occupy,or receive assistance for The provisions of part 247 of this titles project rental assistance is available for the occupancy of,a unit or residential apply to all decisions by an Owner to the unit or residential space under the space governed under this part 891 terminate the tenancy or modify the terms of the PRAC.The household will while occupying.or receiving assistance lease of n household residing in a unit not be required to establish its eligibility for the occupancy of,another unit (or residential space in a group home). foradmission to the project under the assisted under any Federal housing remaining requirements of paragraph(c) assistance program,Including any §891.435 Securtry deposits. of this section. section 8 program. This section shall apply to capital (ii)A household's eligibility for (Approved by the Office of Management and advances under the Section 202 project rental assistance payment may Budget under control number 2502-0470) Program and the Section 811 Program, be terminated in accordance with HUD as well as loans financed under subpart requirements for such reasons as failure §891.420 Overcrowded and E of this part.For loans financed under to submit requested verification underoccupted units. subpart F.of this part,the requirements information,including information If the Owner determines that because in§891.615 also apply. related to disclosure and verification of of change in household size,an assisted (a)Collection of security deposits.At Social Security Numbers,as provided unit is smaller than appropriate for the the time of the initial execution of the by 24 CFR part S.subpart B or failure eligible household to which it is leased, lease,the Owner(or Borrower.as to sign and submit consent forms for the or that the assisted unit is larger than applicable)will require each household Federal Register / V , No. 57 / Friday, March 22, 1996 / Us and Regulations 11967 (or family,as applicable)occupying an amount of the household's(or family's) addition.when utility rate changes assisted unit or residential space in a security deposit balance. would result in a cumulative increase of group home to pay a security deposit in (4)Disagreements.If a disagreement 10 percent or more in the most recently an amount equal to one month's tenant arises concerning reimbursement of the approved utility allowances,the Owner payment or$50.whichever is greater. security deposit,the household for for Borrower)must advise HUD and The household(or family)is expected to family,if applicable)will have the right request approval of new utility pay the security deposit from its own to present objections to the Owner(or allowances.Whenever a utility resources and other ava1laLle public or Borrower,if applicable)In an Informal allowance for an assisted unit is private resources.The Owner(or meeting.The Owner(or Borrower)must adjusted.the Owner(or Borrower)will Borrower)may collect the security keep a record of any disagreements and promptly notify affected households(or de osit on an installment basis, meetings in a tenant file for inspection families,as applicable)and make a A Security deposit provisions by HUD.The procedures of this corresponding adjustment of the tenant applicable to units.(1)Administration paragraph do not preclude the payment(or rent,as applicable)and the of security deposit.The Owner(or household(or family)from exercising amount of the project rental assistance Borrower.as applicable)must place the its rights under State or local law. payment(or housing or project security deposits in a segregated (5)Decedent's interest in security assistance payment;as applicable). interest-bearing account.The amount of deposit.Upon the death of a member of (Approved by the Office of Management and the segregated,interest-bearing account a household(or family,as applicable). Budget u,de,control number 2502-0470) maintained by the Owner(or Borrower) the decedent's Interest,if any.In the must at all times equal the total amount security deposit will be governed by §891.445 Candillons for receipt of collected from the households(or State or local law. vacancy payments for assisted unit& families,as applicable)then in (c)Reimbursement by HUD for (a)general.Vacancy payments under occupancy plus any accrued interest assisted units.If the household's(or the PRAC will not be made unless the and less allowable administrative cost family's.if applicable)security deposit conditions for receipt of these project adjustments.The Owner for Borrower) balance is insufficient to reimburse the rental assistance payments set forth in must comply with any applicable State Owner(or Borrower,if applicable)for this section are fulfilled. and local laws concerning interest any amount that the household(or (b) Vacancies during rent-up.For each payments on security deposits, family)owes under the lease for an unit(or residential space in a group (2)Household(or family,as assisted unit or residential space,and home)that is not leased as of the applicable)notification requirement.In the Owner(or Borrower)has provided effective data of the PRAC.the Owner order to be considered for the refund of the household(or family)with the list is entitled to vacancy payments in the the security deposit,a household for required by paragraph(b)(3)(ii)of this amount of 50 percent of the per unit family)must provide the Owner(or section,the Owner(or Borrower)may operating cost(or pro rata share of the Borrower,as applicable)with a claim reimbursement from HUD for an group home operating cost)for the first forwarding address or arrange to pick up amount not to exceed the lesser of: 60 days of vacancy,if the Owner the refund. (1)The amount owed the Owner(or (1)Conducted marketing in (3) Use of security deposit.The Owner Borrower);or accordance with§891.400(a)and (or Borrower,as applicable),subject to (2)One month's per unit operating otherwise complied with§891.400; Stare and local law and the cost(or contract rent,if applicable). (21 Ifas taken and continues to take all requirements of paragraphs(b)(1)and minus the amount of the household's(or feasible actions to fill the vacancy;and (b)(3)of this section.may use the family's)security deposit balance.Any (3)Has not rejected any eligible household's(or family's,as applicable) reimbursement under this section will applicant except for good cause security deposit balance as be applied first toward any unpaid acceptable to HUD. reimbursement for any unpaid amounts tenant payment(or rent,if applicable) (c) Vacancies after rent-up.If an that the household(or family)owes due under the lease.No reimbursement eligible household vacates an assisted under the lease.Within 30 days(or may be claimed for any unpaid tenant unit(or residential space in a group shorter time If required by State or local payment(or rent) for the period after home)the Owner is entitled to vacancy law)after receiving notification under termination of the tenancy.The Owner payments in the amount of 50 percent paragraph(b)(2)of this section.the for Borrower)may be eligible for of the approved per unit operating cost Owner(or Borrower)must: vacancy payments following a vacancy (or pro rata share of the group homo (i)Refund to a household(or family) In accordance with the requirements of operating cost)for the first 60 days of that does not owe any amount under the §B91.945(or§§891.650 or 891.790.as vacancy if the Owner. lease the full amount of the household's applicable). (1)Certifies that it did not cause the (or family's)security deposit balance: vacancy by violating the lease,the (ti)Provide to a household(or family) §991.440 Adjustment at utility attowances. PRAC,orany a plicable law; owing amounts under the lease a list This section shall apply to projects (2111otified HUD of the vacancy or itemizing each amount,along with a funded under the Section 202 Program, prospective vacancy and the reasons for statement of the household's(or to independent living complexes funded the vacancy upon learning of the family's)rights under State and local under Section 811 Program,and to vacancy or respective vacancy; law.if the amount that the Owner(or projects financed with loans under (3)Has f1filled and continues to Borrower)claims is owed by the 'subpart E of this part.The Owner(or fulfill the requirements specified in household(or family)is less than the Borrower,as applicable)must submit an §891.400(a)(2)and(3)and§891.445(b) amount of the household's(or famiiy's) analysis of any utility allowances (2)and(3).and security deposit balance,the Owner(or applicable.Such data as changes in (4)For any vacancy resulting from the Borrower)must refund the excess utility rates and other facts affecting Owner's eviction of an eligible balance to the household for family).If utility consumption should be provided household,certifies that it has complied the Owner(or Borrower)fails to provide as part of this analysis to permit with§891.430. the list,the household for family)will appropriate adjustments in the utility (d)Prohibition of double be entitled to the refund of the full allowances for assisted units.In compensation for vacancies.if ilia 11968 )Federal Registe 1101. 61, No. 57 / Friday, March 22. 1; j/ Rules and Regulations Owner collects payments for vacancies Act means section 202 of the Housing licensed physician's certificate provided from othei sources(tenant payment, Act of 1959.as amended(12 U.S.C. by the family,to be essential to their security deposits,payments under 1701q). rare or well being. §892.435(c),or governmental payments Eorrower means s private nonprofit 11andicapped person or individual under other programs),the Owner shall corporation or a nonprofit consumer means: not be entitled to collect vacancy cooperative that may be established by (1)Any adult having a physical, payments to the extent these collections the Sponsor,which will obtain a mental.or emotional impairment that is from other sources plus the vacancy Section 202 loan and execute a mortgage expected to be of long-continued and payment exceed the approved per unit in connection therewith as the legal indefinite duration.substantially operating cost. owner 67 the project."Eornowee'does impedes his or her ability to Iive g 89t.450 HUD review. not mean a public body or the independently,and is of a nature that Instrumentality of any public body.The such ability could be Improved by more HUD shall conduct periodic on-site purposes of the Borrower must include suitable housing conditions. management reviews of the Owner's the promotion of the welfare of elderly (2)A person with a developmental compliance with the requirements of and/or band icapped families.No part of disability,as defined in section 102(7) this part. the net earnings of the Borrower may of the Developmental Disabilities Subpart E—Loans for Housing for the Inure to the benefit of any private Assistance and Bill of Rights Act(42 Elderly and Handicapped shareholder,contributor,or Individual, U.S.C.6001(5),i.e..a person with a and the Borrower may not be controlled severe chronic disability that: §891.500 Purpose and policy. by or under the direction of persons or (i)Is attributable to a mental or (a)Purpose.The program under firms seeking to derive profit or gain physical impairment or combination of subpart E of this part provides direct therefrom.Because of the nonprofit mental and physical impairments; Federal loans under section 202 of the nature of the Section 202 program,no (ii)is manifested before the person Housing Act of 1959(42 U.S.C.1701q) officer or director,or trustee,member. attains age twenty-two; for housing projects serving elderly or stockholder or authorized representative (iii)1s likely to continue indefinitely-. handicapped families and individuals. of the Borrower is permitted to have any (iv)Results in substantial functional The housing projects shall provide the financial interest In any contract in limitation in three ormoro of the necessary services for the occupants connection with the rendition of following areas of major life activity: which may include.but are not limited services,the provision of goods or (A)Self-care; to:Health,continuing education, supplies,project management. (n)Receptive and expressive welfare,informational,recreational, procurement of furnishings and language; homemaking,meet and nutritional equipment,construction of the project, (C)Learning; services,counseling,and referral procurement of the site or other matters (D)Mobility-, services,as well as transportation where whatsoever. (E)Self-direction; necessary to facilitate access to these Elderly familymeans: (F)Capacity for independent living; services. (1)Families of two or more persons (C)Economic self-sufficiency;and (b)General policy.A loan made under the head of which(or his or her spouse) combination Reflects i n and sequence of special. subpart E of this part shall be used to is 62 yyears of age or older, finance the construction or the (2)The surviving member or members interdisciplinary,or generic care, substan described In elderly or handial cappitation of ed families,or forects of of this definition living in paragraph(1) lifelong or exatment.or tended ded duratiother services n and are at are f the acquisition with or without assisted under subpart E of this part individually planned and coordinated. moderate rehabilitation of existing with the deceased member of the family Illness,i.e., he ith a she has i se ere and ental housing and related facilities for group at the time of his or her death; persistent mental if or emotional homes for nonelderly handicapped (3)A single person who is 62 years of p individuals. age or older;or impairment that seriously limits his or .(c)Applicability.Subpart E or this (4)Two or more elderly persons living her ability to live independently.and part applies to all fund reservations together,or one or more such persons whose impairment could be improved made before October 1.1990.except for living with another person who is by more suitable housing conditions. loans not Initially closed that were determined by HUD.based upon a (4)persons infected with[lie human converted to capital advances. licensed physician's certificate provided acquired immunodeficiency virus(11IV) Specifically,§691.520 through 891.650 by the family.to be essential to their who are disabled as a result of infection of subpart E apply to projects for elderly care or well beingr with the HIV are eligible for occupancy or handicapped families that received Handicapped Iomilymeans: in section 202 projects designed for the reservations under section 202 of the (1)Famii�ies of ttvo or more persons physically disabled.developmentally Housing Act of 1959(12 U.S.C.1701q) the head of which(or his or her spouse) disabled,or chronically mentally ill and housing assistance under section 8 is handicapped; depending upon the nature or the of the United States Housing Act of (2)The surviving member or members persou's disability.A person whose sole 1937(42 U.S.C.1437 of seq).Sections of any family described in paragraph(1) impairment is alcoholism or drug 891.655 through 891.790 of subpart E of this definition living in a unit addition(i.e..who does not have a apply to projects for nonelderly assisted under subpart E of this part developmental disability,chronic handicapped families receiving with the deceased member of the family mental illness.or physical disability reservations under section 202 and at the time of his or tier death; that is the disabling condition required project assistance payments under 13)A single handicapped person over for eligibility in a particular project)will section 202(h)of the lousing Act of the age of 18;or not be considered to be disabled for the 1959. (4)Two or more handicapped persons purposes of the section 202 program. living,together.or one or more such !lousing and related facilities means §891.So5 Definitions. persons living with another person who rental or cooperative housing structures For the numnses of this stihpart E: is detprmim-cl by HUD.hn-,wl unnn a rnntinirted or substantially Federal Register / Vold J No. 57 / Friday, March 22, 1996 / Fl and Regulations 11969 rehabilitated as permanent residences property for a project Is subject to the (A)The tenant moves after execution for use by elderly or handicapped URA and the requirements described in of the Agreement between the Sponsor/ families,or acquired with or without 49 CFR part 24.subpart B. Borrower and HUD,and the move moderate rehabilitation for use by (d)Appeals.A person who disagrees occurs before the tenant is provided nonelderly handicapped families as with the Sponsor's/Borrower's written notice offering him or her the group homes.The term includes determination concerning whether the opportunity to lease and occupy a structures suitable for use by families person qualities as a "displaced suitable,decent,safe.and sanitary residing=in the project or in the area, person,"or with the amount of dwelling in the same building/complex such as cafeterias or dining halls, relocation assistance for which the upon completion of the project under community rooms,or buildings,or other person Is eligible,may file a written reasonable terns and conditions.Such essential service facilities.In the case of appeal of that determination with the reasonable terms and conditions include acquisition with or without moderate Sponsor/Borrower.A low-income a monthly rent and estimated average rehabilitation,at least three years must person who is dissatisfied with the monthly utility costs that do not exceed have elapsed from the later of the date Sponsors/Borrower's determination on the greater of: of completion of the project or the his or her appeal may submit a written (1)The tenant's monthly rent and beginning of occupancy to the date of request for review of that determination estimated average monthly utility costs the application for a Section 202 fund to the HUD field office. before the Agreement;or reservation.Except for intermediate care (e)Responsibility of Sponsor/ (2)The total tenant payment.as facilities for the mentally retarded and Borrower.The Sponsor/Borrower shall determined under 24 CFR 813.107,if Individuals with related conditions,this certify that it will comply(i.e..provide the tenant is low-income,or 30 percent term does not include nursing homes, assurance of compliance,as required by of gross household income,if the tenant hospitals,intermediate care facilities,or 49 CFR part 24)with the URA.the is not low-income;or transitional care facilities. regulations at 49 CFR part 24,and the (B)The tenant is required to relocate Nonelderly handicapped family requirements of this section,and shall temporarily,does not return to the means a handicapped family in which ensure such compliance building/complex.and either: the head of the family(and spouse,if notwithstanding any third party's (1)The tenant is not offered payment any)Is less than 62 years of age at the contractual obligation to comply with for all reasonable out-of-packet time of the family's initial occupancy of these provisions.The Sponsor/Borrower expenses incurred in connection with a project. shall maintain records in sufficient the temporary relocation;or Section 8 Program means the housing detail to demonstrate compliance with (2)Other conditions of the temporary assistance payments program that the provisions of this section.The relocation are not reasonable;or Implements section 8 of the United Sponsor/Borrower shall maintain data (C)The tenant Is required to move to States Housing Act of 1937(42 U.S.C. on the race.ethnic,gender.and another dwelling in the same building/ 1437f note). handicap status of displaced persons. complex but Is not offered 5891.510 Displacement,relocation,and (r)Definition of a displaced person. reimbursement for all reasonable out-of- real property acquisition. (1)For purposes of this section,the term pocket expenses incurred In connection (a)Minimizing displacement. "displaced person"means a person with the move,or other conditions of Consistent with the other goals and (family,individual.business,nonprofit the move are not reasonable. objectives of subpart E of this part, organization,or farm)that moves from (2)Notwithstanding the provisions of Sponsors and Borrowers shall assure real property,or moves personal paragraph(1)(1)of this section,however, that they have taken all reasonable steps property from real property, a person does not qualify as a to minimize the displacement of permanently,as a direct result of "displaced person"(and is not eligible E (families.individuals, acquisition,rehabilitation,or for relocation assistance at URA levels), businesses,nonprofit organizations,and demolition for a project assisted under if: farms)as a result of a project assisted this part.This includes any permanent. (i)The person has been evicted for under subpart E of this part. involuntary move for an assisted project cause based upon a serious or repeated (b)Relocation assistance for displaced including any permanent move from the violation of the terms and conditions of persons.A displaced person(defined in real property that is made: the lease or occupancy agreement, paragraph(0 of this section)must be (i)After notice by the Sponsor/ violation of applicable Federal,State,or provided relocation assistance at the Borrower to move permanently from the local law.or other good cause,and HUD levels described in,and in accordance property if the move occurs on or after: determines that the eviction was not with the requirements of the Uniform (A)The date of the submission of an undertaken for the purpose of evading Relocation Assistance and Real Property application to HUD that is later the obligation to provide relocation. Acquisition Policies Act of 1970.as approved,if the Sponsor has control of assistance. amended(URA)(42 U.S.C.4201-4655). an appropriate site;or GO The person moved into the as Implemented by 49 CFR part 24.A (B)The date that the Sponsor obtains property after the submission of the displaced person shall be advised of his control of an approvable site.if such application and,before signing a lease or her rights under the Fair Housing Act control is obtained after the submission and commencing occupancy.was (42 U.S.C.3601-3619).if the of on application to HUD: provided written notice of the project, comparable replacement dwellings are (ii)Before the date described in its possible impact on the person(e.g.. located in areas of minority paragraph(f)(1)(i)of this section,if the displacement.temporary relocation or a concentration,minority persons also Sponsor.Borrower or HUD determines rent increase)and the fact that he or she must be given,if possible,referrals to that the displacement resulted directly will not qualify as a displaced person as suitable,decent,safe,and sanitary from acquisition.rehabilitation.or a result of the project; replacement dwellings not located in demolition for the project; (iii)The person is ineligible under 49 such areas. (iii)By a tenant-occupant of a CFR 24.2(g)(2);or (c)Beat property acquisition dwelling unit,if any one of the (iv)HUD determines that the person requirements.The acquisition of real following three situations occurs; was not displaced as a direct result of 11970 Federal Register 'rol. 61, No. 57 / Friday, March 22, 1f Rules and Regulations acquisition,rehabilitation,or served under the Section 202 program on the number of bedrooms,may not demolition for the project; are qualified individuals or families exceed: •(3)The Sponsor/Borrower may whose head of household or spouse is (1)$28,032 per family unit without a request,at any time,a HUD elderly,physically handicapped, -bedroom. determination of whether a developmentally disabled,or (2)$32,321 per family unit with one displacement is or would be covered by chronically mentally ill.Projects are bedroom. this section. designed to meet the special needs of (3)$38,979 per family unit with two §891.515 Audit requirements. the particular tenant population that the bedrooms. Borrower was selected to serve. (c)In order to compensate for the Nonprofits receiving assistance under Individuals from one eligible group may higher costs incident to construction of this part are subject to the audit not be accepted for occupancy in a elevator type structures of sound requirements in 24 CFR part 45. project designed for a different tenant standards of construction and design, Section 202 Projects for the Elderly or group.However,a Sponsor can propose the field office may increase the dollar Handicapped—Section 8 Assistance to house eligible tenant groups other limitations per family unit,as provided than the one it was selected to serve,but in paragraph(b)of this section,to not §891.520 Definitions applicable to 20218 must apply to the HUD field office for to exceed: projects. permission to do so,based on a plan (1)$29,500 per family unit without a The following definitions apply to that demonstrates that it can adequately bedroom. projects for eligible families receiving serve the proposed tenant group.Upon (2)$33,816 per family unit with one assistance under section 8 of the United review and recommendation by the field bedroom. States Housing Act of 1937 in addition office,HUD Headquarters will approve (3)$41,120 per family unit with two to reservations under section 202 of the or disapprove the request. bedrooms. Housing Act of.1959(202/8 projects): Rent,in the case of a unit in a (d)Reduced loan amount— Assisted unit means a dwelling unit cooperative project,means the carrying leaseholds.In the event the loan is eligible for assistance under a HAP charges payable to the cooperative with secured by a leasehold estate rather than contract. respect to occupancy of the unit. a fee simple estate,the allowable cost of Contract rent means the total amount Tenant rent means the monthly the property upon which the loan of rent specified in the HAP contract as payable by HUD and the tenant to the amount defined in,and determined in amount is based shall be reduced by the accordance with part 813 of this value of the leased fee. Borrower for an assisted unit. chapter. (e)Adjusted Iran amount— Family(eligible family)means an Total tenant payment means the rehabilitation projects.A loan amount elderly handicapped family that monthly amount defined in,and that involves a project to be meets thea project occupancy determined in accordance with part 813 rehabilitated shall be subject to the requirements approved by HUD and,if the family occupies an assisted unit, of this chapter. following additional limitations: meets the requirements described in Utility allowance is defined in part (1)Property held in fee.If the part 813 of this chapter. 813 of this chapter and is determined or Borrower is the fee simple owner of the Gross rent is defined in part 813 of approved by HUD. project not encumbered by a mortgage, this chapter. Utility reimbursement is defined in the maximum loan amount shall not HAP contract(housing assistance part 813 of this chapter. exceed 100 percent of the cost of the payments contract)means the contract Vacancy payment means the housing proposed rehabilitation. entered into by the Borrower and HUD assistance payment made to the (2)Property subject to existing setting forth the rights and duties of the Borrower by HUD for a vacant assisted mortgage.If the Bo:o:ser owns tho parties with respect to the project and unit if certain conditions are fulfilled,as project subject to an outstanding the payments under the HAP contract. provided in the HAP contract.The indebtedness,which is to be refinanced Housing assistance payment means amount of the vacancy payment varies with part of the Section 202 loan,the the payment made by HUD to the with the length of the vacancy period maximum loan amount shall not exceed Borrower for assisted units as provided and is less after the first 60 days of any the cost of rehabilitation plus such in the HAP contract.The payment is the vacancy. portion of the outstanding indebtedness difference between the contract rent and §891.525 Amount and terms of financing. as does not exceed the fair market value the tenant rent.An additional payment of such land and improvements prior to is made to a family occupying an (a)The amount of financing approved the rehabilitation,as determined by the assisted unit when the utility allowance shall be the amount stated in the Notice field office. - is greater than the total tenant payment. of Section 202 Fund Reservation, (3)Property to be acquired.If the A housing assistance payment,known including any increase approved by the project is to be acquired by the Borrower as a"vacancy payment,"may be made held office prior to the final closing of and the purchase price is to be financed to the Borrower when an assisted unit a loan;provided,however,that the with a part of the Section 202 loan,the is vacant,in accordance with the terms amount of financing provided shall not maximum loan amount shall not exceed of the HAP contract. exceed the lesser of: the cost of the rehabilitation plus such Project account means a specifically (1)The dollar amounts stated in portion of the purchase price as does identified and segregated account for paragraphs(b)through(f)of this not exceed the fair market value of such each project that is established in section;or land and improvements prior to the accordance with §891.570(b)out of the (2)The total development cost of the rehabilitation,as determined by the amounts by which the maximum annual project as determined by the field office. field office. commitment exceeds the amount (b)For such part of the property or (f)Increased Mortgage Limits—High actually paid out under the HAP project attributable to dwelling use Cost Areas.(1 W The Assistant contract each year. (excluding exterior land improvements, Secretary may increase the dollar Project occupancy requirements as defined by the Assistant Secretary) amount limitations in paragraphs(b) means that eligible populations to be the maximum loan amount,depending and(c)of this section: Federal Register / Vol No. 57 / Friday, March 22, 1996 / s and Regulations 11971 (A)By not to exceed 110 percent in , obligations of the United States during paragraph (g)(1)of this section by any geographical area in which the the 3-month period immediately publishing notice of the rate in the Assistant Secretary finds that cost levels preceding the fiscal year in which the Federal Register.The Federal Register so require;and request for commitment is submitted notice will include a statement (B)By not to exceed 140 percent (adjusted to the nearest one-eighth of explaining the basis for the interest rate where the Assistant Secretary one percent),plus an allowance to cover determination. determines it necessary on a project-by- administrative costs and probable losses (2)Upon the Borrower's request,HUD project basis. under the program; will provide available current (ii)In no case,however,-may any such (B)The average yield on the most information concerning the increase exceed 90 percent,where the recently issued 30-year marketable determination of the interest rate under Assistant Secretary determines that • ' obligations of the United States during paragraph(g)(2)of this section. there is involved a mortgage purchased the 1-month period immediately or to be purchased by the Government preceding the month in which the (i)The loan shall be secured by a first , National Mortgage Association(GNMA) request for commitment is submitted ' mortgage on real estate in fee simple or in implementing its Special Assistance (adjusted to the nearest one-eighth of long term leasehold.The mortgage shall Functions under section 305 of the ' one percent),plus an allowance to cover be repayable during a term not to exceed National Housing Act(as section 305 ' the administrative costs and probable 40 years and shall be subject to such existed immediately before its repeal on losses under the program;and(C)Any terms and conditions as shall be November 30,1983). applicable statutory ceiling on the loan determined by the Assistant Secretary. (2)If the Assistant Secretary finds that interest rate including an allowance to (j)In order to assure HUD of the because of high costs in Alaska,Guam, cover administrative costs and probable Borrower's continued commitment to or Hawaii it is not feasible to construct losses under the program. the development,management,and dwellings without the sacrifice of sound (ii)The date of submission of a operation of the project,a minimum standards of construction,design,and request for conditional or firm capital investment is required of Section livability within the limitations of commitment is the date that the 202 Borrowers of one-half of one maximum loan amounts provided in Borrower submits the complete and percent(0.5%)of the mortgage amount this section,the principal amount of acceptable request to HUD.The date of committed to be disbursed,not to mortgages may be increased by such the submission of a request for exceed the amount of$10,000.Section amounts as may be necessary to commitment will not be affected by any 106(b)loans made pursuant to section compensate for such costs,but not to subsequent resubmission of the request 106 of the Housing Act of 1968 may not exceed in any event the maximum, by the Borrower or by any reprocessing be utilized to meet the minimum capital including high cost area increases,if of the request by HUD. investment requirement.Such any,otherwise applicable by more than (iii)The Borrower may withdraw its minimum capital investment shall be one-half thereof. election of the optional interest rate at placed in escrow at the initial closing of (g)Loan interest rate.Loans shall bear any time before initial loan closing.If the Section 202 loan and shall be held interest at a rate determined by HUD in the Borrower elected the optional by HUD or other escrow agent accordance with this section. interest rate with its request for acceptable to the field office for not less (1)Annual interest rate.Except as conditional commitment and withdraws than a 3-year period from the date of provided under paragraph(g)(2),loans its election,the loan will bear interest initial occupancy and may be used for shall bear interest at the rate in effect at at the rate determined under paragraph. operating expenses or deficits as may be the time the loan is made.The loan (g)(1)of this section,unless the directed by the field office.Any interest rate shall not exceed: Borrower elects an optional interest rate unexpended balance remaining in the (i)The average yield on the most with its-request for firm commitment.If minimum capital investment account at recently issued 30-year marketable the Borrower withdraws its election the end of the escrow period shall be obligations of the United States during after the date of submission of its returned to the Borrower. the 3-month period immediately request for firm commitment,the loan preceding the fiscal year in which the will bear interest at the rate determined §891.530 Prepayment privileges. loan is made(adjusted to the nearest under paragraph(g)(1)of this section. (a)The prepayment(whether in one-eighth of one percent),plus an ' (iv)If initial loanclosing has not whole or in part)or the assignment or occurred within 18 months after the allowance to cover administrative costs transfer of physical and financial assets ' and probable losses under the program; Notice of Section 202 Fund Reservation tr tr any Section 202 project prohibited, and is issued,the Borrower's election of the (ii)Any applicable statutory ceiling optional rate will be cancelled and the unless the Secretary gives prior written on the loan interest rate including the loan will bear interest at the rate approval. allowance to cover administrative costs determined under paragraph(g)(1)of (b)The Secretary may not grant and probable losses. this section. approval unless he or she has (2) Optional interest rate.The (3)Allowance for administrative costs determined that the prepayment or Borrower may elect an optional loan and probable losses.For the purpose of transfer of the loan is part of a interest rate.To elect the optional rate, computing the loan interest rate under transaction that will ensure the the Borrower must request that HUD. paragraphs(g)(1)and(2)of this section, continued operation of the project,until determine the loan interest rate at the the allowance to cover administrative the original maturity date of the loan,in time of the Borrower's request for costs and probable losses under the a manner that will provide rental conditional or firm commitment for program is one-fourth of one percent housing for the elderly and direct loan financing. (.25%)per annum for both the handicapped on terms at least as (i)If the Borrower elects the optional construction-and permanent loan advantageous to existing and future loan interest rate,the loan interest rate periods. ' tenants as the terms required,by the shall-not exceed: (h)Announcement of interest rates. original Section 202 loan agreement and (A)The average yield-on the most (1)HUD will annually announce the any other loan agreements entered into recently issued 30-year marketable loan interest rate determination under under other provisions of law. 11972 Federal Register ZZ 1. 61, No. 57 / Friday, March 22, 1r� Rules and Regulations §891.535 Requirements for awarding and services required to construct and Borrower on forms to be prescribed by construction contracts. complete the project.as described in the the Assistant Secretary and shall be (a)Awards shall be made only to invitation forbids(including the accompanied by such additional responsible contractors that possess the contents of all documents on file),for a information as the field office may potential ability to perform successfully specified lump-sum price; require in order to approve loan under the terms and conditions bf a (iv)That the security specified in disbursements under subpart E of this proposed construction contract. paragraph(b)(2)(vi)of this section part.including but not limited to Consideration shall be given to such accompanies the bid; evidence of compliance with the Davis- matters as contractor Integrity, (v)The period after the bid opening Bacon Act.Department o[Labor compliance with public policy,record during which the bid shall not be regulations,all applicable zoning, of past performance,and financial and withdrawn without the consent of the building,and other governmental technical resources. Borrower. requirements,and such evidence of (b)Each Borrower is permitted to use (A)That the bidder will,if notified of continued priority of the mortgage of the either compd t itive bidding(formal acceptance of such bid within a Borrower as the Assistant Secretary may advertising)In selecting a construction specified period after the opening, prescribe. contractor or the negotiated execute and deliver a contract In the (d)In loan disbursements for building noncompetitive method of contract prescribed form and furnish the components stored off-site,the term award under paragraph(c)of this required bond within ten days "building component"shall mean any section.In competitive bidding,sealed thereafter; manufactured or preassembled part of a bids are publicly solicited and a firm. (vii)That the bidder acknowledges structure as defined by HUD and that fixed-price contract is awarded(in any amendments to the invitation for the Assistant Secretary has designated accordance with the requirements of bids;and for off-site storage because it is of such this paragraph(b))to the responsible (viii)That the bidder certifies that the size or weight that storage of the bidder whose bid,conforming with all bid is in strict accordance with all terms components required for timely the material terms and conditions of the of the invitation forbids(including the construction progress at the invitation forbids,is lowest in price. contents of all documents on file)and construction site is impractical,or Regardless of which method a Borrower that the bid is signed by a person weather damage or other adverse uses,there should be an opportunity for authorized to bind the bidder. conditions prevailing at the minority owned and women owned (4)Bidding shall be open to all construction site would make storage at businesses to be awarded a contract. general contractors who furnish the the site impractical or unduly costly. (1)Bids shall be solicited from an security guaranteeing their bid.as Each building component must be adequate number of known contractors described In paragraph(b)(2)(vi)of this specifically identified for Incorporation a reasonable time prior to the date set section. into the property as provided under forth for opening of bids.In addition, (5)All bids shall be opened publicly paragraph(d)(1)(ii)of this section. the invitation shall be publicly at the time and place stated in the (1)Storage.(i)A loan disbursement advertised, invitation for bids,in the presence of may be made for up to 90 percent of the (2)The Invitation for bids shall the HUD Regional Administrator or his invoice value(to exclude costs of specify: designee. transportation and storage)of the (i)The name of the Borrower; (6)A firm,taxed-price contract award building components stored off-site if (ii)A brief description of the shall be made by written notice to the the components are stored at a location proposed project and the proposed responsible bidder whose bid, appproved by HUD. construction contract; conforming to the Invitation forbids,is (ii)Each building component shall be (iii)A preliminary estimate of cost: lowest.The contract may provide for an adequately marked so as to be readily (iv)That bids will be received at a incentive payment to the contractor for identifiable in the inventory of the off- specified place until a specified time at an early completion. site location. It shall be kept together which time and place all bids will be (c)A Sponsor or Borrower may award with all other building components of publicly opened; (v The Location where the proposed g a ne otiated,noncompetitive the same manufacturer intended for use } forms of contract and bid documents, construction contract. in the same project for which loan including plans and specifications,are §891.540 Loan disbursement procedures. disbursements have been made and on file and may be obtained on payment (a)Disbursements of loan proceeds separate and apart from similar units of a specified returnable deposit; p not for usp in the proirrt. (vf)That a certified check or bank shall be made directly by HUD to or for (iii)Storage costs,if any,shall be draft or satisfactory bid bond in the the account of the Borrower and may be borne the general contractor. made through an approved lender. (21 Re. onsibilitt• nr amount of 5 percent of the bid shall be mortgage servicer,title insurance storage iusrironre of transportation. submitted with the bid; �' I off -site That the successful bidder will company,or other agent satisfactory to building romponents.The general be required to provide assurance of the Borrower and HUD. contncaur of the pruiec:t shall have the completion In the form of a performance (bl All disbursements to the Borrower responsibility for: and Payment bond or cash escrow;and shall be made on a periodic basis in an (e)insuring the componews in the (viii)That the Borrower reserves the amount not to exceed the IIUD- name of the Borrower while in transit right to reject any or all bids and to approved cost of portions of and storage:and waive any informality. construction or rehabilitation work (ii)I ulivuring or contracting for the (3)The bid form,which must be completed and in place(except as delivery of tho componfinis to the submitted by all bidders.must specify: modified in paragraph (d)of this storage area and to the construction site. (i)The name of the project; section),minus the appropriate including;payment of freight. (ii)The name and address of the holdback,as determined by the field (3)Lnon disburserrrents.(i) Before a bidder; office. loan disbursement for a building; (iiij That the bidder proposes to (c1 Requisitions for loan component slored oft•sile is made,the furnish all labor,materials,equipment disbursements shall be submitted by 1he Borrower shall: Federal Register / VoJ*No. 57 I Friday. March 22, 1996 / Ro and Regulations 11973 (A)Obtain a bill of sale for the discounts:or other similar payments to designed for hearing-impaired persons component; the mortgagor or to any of its officers, in each bedroom occupied by a hearing- (B)Provide HUD with a security directors,or members. impaired person. agreement pledged by a first lien on the (2)A verification of the Certificate of (b)Acceptability criteria.The smoke building components with the exception Actual Cost by an independent Certified detector must be located.to the extent of such other liens or encumbrances as Public Accountant or independent practicable,in a hallway advent to a ma be approved by HUD;and public accountant acceptable to the field bedroom,unless the unit is occupied by (t File a financing statement in office. a hearing=unpained person.In which accordance with the Uniform (3)In the case of projects not subject case each bedroom occupied by a Commercial Code._ to competitive bidding,a certification of hearing-impaired person must have an (ii)Befoi+e eechloan disbursement for the general contractor(and of such alarm system connected to the smoke buildingcamponents stored off-site is subcontractors,material suppliers,and detector installed in the hallway. made dlie`sumbcturir and the general equipment lessors as the Assistant contradar shell certify to HUD that the Secretary or field office may require),on 4 891.580 HAP contract. components.in their intended use, a form prescribed by the Assistant (a)HAP contract.The housing comply w* Mb roved contract Secretary,as to all actual costs paid for assistance payments contract sets forth plan and sps. labor,materials,and subcontract work rights and duties of the Borrower and (fii)Loan eats may be made under the general contract exclusive of HUD with respect to the project and the only for components stared off-site in a the builder's fee and kickbacks,rebates, housing assistance payments. quantity required to permit trade discounts,or other similar (b)HAP contract execution.(1)Upon uninterrupted installation at the site. payments to the general contractor,the satisfactory completion of the project, (iv)At no time shall the invoice value mortgagor,or any of its officers, the Borrower and HUD shall execute the of building components being stored off- directors,stockholders,partners,or HAP contract on the form prescribed by site,for.which advances have been members. HUD. insured,represent more than 25 percent (c)In lieu of the requirements set (2)The effective date of the HAP of the total estimated construction costs forth in paragraphs(c)(1)and(3)of this contract may be earlier than the date of for the insured mortgaged project as section,a simplified form of cost execution.but no earlier than the date specified In the cbrts ction contract, certification prescribed by the Secretary of HUD's issuance of the permission to Notwithshoding the preceding sentence may be completed and submitted by the occupy. and other scguiatory requirements that Borrower for projects with mortgages of (3)If the project is completed in set bonding requirements,the $500,000 or less.The simplified cost stages,the procedures of paragraph(b) percentage of total estimated certification shall be verified by an of this section shall apply to each stage. construction costs insured by advances independent Certified Public (c)Housing assistance payments to under this section may exceed 25 Accountant or an independent public owners under the HAP contract.The percent but not 50 percent if the accountant in a manner acceptable to housing assistance payments made mortgagor furnishes assurance of the Secretary. under the HAP contract are: completion in the form of a corporate (d)If the Borrower's certified costs (1)payments to the Borrower to assist surety bond for the payment and provided in accordance with paragraph eli 'ble amilies least assisted units. performance each in the amount of 100 (c)or(d)of this section and as approved The amount of the housing assistance percent of the amount of the by HUD are less than the loan amount, payment made to the Borrower for an construction�pantract._In no event will the contract rents will be reduced assisted unit leased to an eligible family insurance oftomponents stored off-site accordingly. is equal to the difference between the be made in the absence of a payment (e)If the contract rents are reduced cotract rent for the unit and the tenant and performance bond. pursuant to paragraph(e)of this section, rent payable by the family. (v)No single loan disbursement the maximum annual HAP Contract (2)payments to the Harrower for which is to be made shall be in an commitment will be reduced.If contract it assisted units(vacancy amount less than ten thousand($10,000) rents are reduced based on cost vacant ass dollars, certification after HAP Contract payments).The amount of and execution,any overpayment after the conditions for vacancy payments are §89IX45 Comptetfon of project,cost effective date of the Contract will be described in§891.650.The housing carttltcation,and HUD approvals. recovered from the Borrower by HLJD assistance payments are made monthly (a)The Borrower must satisfy the (Approved b the Office of Management by HUD upon proper requisition by the requirements for completion of pP Y gement and Borrower,except payments for construction and substantial Budget under control number 2502-0044.) vacancies of more than 60 days,which rehabilitation and approvals by HUD §891.550 Selection preferences. are made semiannually by HUD upon before submission of a final requisition For purposes of projects assisted requisition by the Borrower. for disbursement of loan proceeds. under§§891.520 through 891.650.the (d)Payment of utility reimbursement. (b)The Borrower shall submit to the selection preferences in 24 CFR part 5, As applicable,a utility reimbursement field office all documentation required subpart D apply. will be paid to a family occupying an for final disbursement of the loan, assisted unit as an additional housing including: §891.555 Smoke detectors, assistance payment.The HAP contract (1)A Borrower's/Mortgagor's (a)Performance requirement.After will provide that the Borrower will Certificate of Actual Cost,showing the October 30. 1992,each dwelling unit make this payment on behalf of HUD. actual cost to the mortgagor of the must include at least one battery- Funds will be paid to the Borrower in construction contract,architectural, operated or hard-wired smoke detector, trust solely for the purpose of making legal.organizational,offsite costs,and in proper working condition,on each the additional payment.The Borrower all other items of eligible expense.The level of the unit.If the unit is occupied may pay the utility reimbursement certificate shall not include as actual by hearing-impaired persons,smoke jointly to the family and the utility cost any kickbacks,rebates.trade detectors must have an alarm system company,or,if the family and utility 11974 Federal Register ol. 61, No. 57 / Friday, March 22, 190 Rules and Regulations company consent,directly to the utility (iii)Has not rejected any such (2)The Borrower has been granted company. applicant family except for reasons HUD approval under paragraph(a)of §891.5135 Tenn of HAP contract acce table to HUD. this section;and (2�1f the Borrower is temporarily (3)The Borrower is temporarily The term of the HAP contract for unable to lease all units for which unable to achieve or maintain a level o. assisted units shall be 20 years.If the assistance is committed under the HAP occupancy sufficient to prevent project is completed in stages.the term contract to eligible families,one or more financial default and foreclosure under of the HAP contract for assisted units in units may,with the prior approval of the Section 202 loan documents.HUD each stage shall be 20 years.The tenor HUD,be leased to otherwise eligible approval under paragraph(e)(31 of this of the HAP contract for all assisted units families that do not meet the income section will be of limited duration.HUD in all stages of a project shall not exceed eligibility requirements of part 813 of may impose terms and conditions to 22 years. this chapter.Failure on the part of the this approval that are consistent with §891.57© Maximum annual commitment Borrower to comply with these program objectives and necessary to and Pr*d account requirements is a violation of the HAP protect Its interest in the Section 202 (a)Maximum annual commitment contract and grounds for all available loan. The maximum annual amount that may legal remedies.includingan action for y specific performance of the HAP §89l.580 HAP contract admintstation. be committed under the HAP contract is contract,suspension or debarment from HUD is responsible for the the total of the contract rents and utility HUD programs.and reduction of the administration of the HAP contract. allowances for all assisted units in the number of units under the HAP contract proles' as set forth in paragraph(b)of this §891.585 Default by Borrower. (b)Project account.(1)HUD will section. (a)HAP contract provisions.The HAP establish and maintain a specifically (b)Reduction of number of units contract will provide: Identified and segregated project covered by the HAP contract.HUD may (1)That if HUD determines that the account for each project.The project reduce the number of units covered by Borrower is in default under the HAP account will be established out of the the HAP contract to the number of units contract,HUD will notify the Borrower amounts by which the maximum annual available for occupancy by eligible of the actions required to be taken to commitment exceeds the amount families if. cure the default and of the remedies to actually paid out under the HAP (1)The Borrower fails to comply with be applied by HUD including an action contract each year.HUD will make the requirements of paragraph(a)of this for specific performance under the HAP payments from this account for housing section;or contract,reduction or suspension of assistance payments as needed to cover (2)Notwithstanding any prior housing assistance payments and increases in contract rents or decreases approval by HUD,HUD determines that recovery of overpayments,where in tenant income and other payments the inability to lease units to eliggible appropriate;and for costs specifically approved by the families is not a temporary roblem. (2)That if the Borrower fails to cure Secretary. (c)Restoration.HUD will agree to an the default.HUD has the right to (2)if the HUD-approved estimate of amendment of the HAP contract to terminate the HAP contract or to take required annual payments under the provide for subsequent restoration of other corrective action. HAP contract for a fiscal year exceeds any reduction made under paragraph(b) (b)Loan provisions.Additional the maximum annual commitment for of this section iE provisions governing default under the that fiscal year plus the current balance (1)HUD determines that the section 202 loan are included in the in the project account,HUD will,within restoration is justified by demand; regulatory agreement and other loan a reasonable time,take such steps (2)The Borrower otherwise has a documents. authorized by section 8(c)(6)of the record of compliance with the United States Housing Act of 1937(42 Borrower's obligations under the HAP §891.590 Notice upon HAP contract U.S.C. 1437f note),as may be necessary, contract;and expiration. to assure that payments under the HAP (3)Contract and budget authority is (a)Notice required.The HAP contract contract will be adequate to cover available. will provide that the Borrower will,at increases in contract rents and decreases (d)Applicability.In accordance with least one year before the end of the HAP in tenant income. section 555 of the Cranston-Gonzalez contract term,notify each family leasing §89i.575 Leasing to eligible famltles National Affordable Housing Act of an assisted unit of any increase in the 91990,paragraphs(a)and(b)of this amount the family will be required to (a)Availability of assisted units for section apply to all contracts.An owner pay as rent as a result of the expiration. occupancy by eligible families.(1) who had leased an assisted unit to an (b)Service requirements.The notice During the term of the HAP contract,a ineligible family consistent with the under paragraph(a)of this section shall Borrower shall make available for regulations in effect at the time will be accomplished by sending a letter by occupancy by eligible families the total continue to lease the unit to that family. first class mail,properly stamped and number of units for which assistance is However.the owner must make the unit addressed,to the family at its address at committed under the HAP contract.For available for occupancy by an eligible the project,with a proper return purposes of this section,making units family when the ineligible family address;and serving a copy of the notice available for occupancy by eligible vacates the unit. on any adult person answering the door families means that the Borrower. (e)Occupancy by families that are not at the leased dwelling unit,or if no G)Is conducting marketing in elderly or handicapped.HUD may adult responds,by placing the notice accordance with§891.600(a); permit units in the project to be leased under or through the door,if possible, (ii)Has leased or is making good faith to other than elderly or handicapped or else by affixing the notice to the door. efforts to lease the units to eligible and families if. Service shall not be considered to be otherwise acceptable families,including (1)The Borrower has made reasonable effective until both required notices taking all feasible actions to fill efforts to lease assisted and unassisted have been accomplished.The date on vacancies by renting to such families; units to eligible families; which the notice shall be considered to Federal Register / Vou, No. 57 / Friday, March 22. 199G / f� and Regulations 11975 be received by the family shall be the renewed HAP contract In accordance (These prohibitions do not extend to date on which the Borrower mails the with§891.575(b), management contracts entered into by first class letter provided for in the Borrower with the Sponsor or its paragraph(b)of this section,or the dale 5891.600 Responstbllltles of Borrower, nonprofit affiliate). on which the notice provided for in (a)Afarketing.(1)The Borrower must (2)Consistent with the objectives of paragraph lb)of this section is properly commence and continue diligent Executive Order No. 11625(36 FR given,whichever is later. marketing activities not later than 90 19967,3 CFR,1971-1975 Comp.,p.616; (c)Contents of notice.The notice shall days before the anticipated date of as amended by Executive Order No. advise each affected family that.after availability for occupancy of the first 12007(42 FR 42839.3 CFR.1977 the expiration date of the HAP contract, unit of the project.Market activities Comp.,p.139,unless otherwise noted); the family will be required to bear the shall include the provision of notices of Executive Order No. 12432(48 FR availability of housing under the 32551.3 CFR, Comp., 198; entire cost of the rent and that the P••P- Borrower may,subject to requirements program 10 operators of temporary unless otherwise noted);and Executive and restrictions contained in the housing for the homeless in the same Order No.1213B(44 FR 29G37.3 CFR, housing market. 1979 Comp.. 393;unless otherwise regulatory agreement,the lease,and P P (2) arketing must be done in noted),the Borrower will promote State or local law,change the rent.The P notice also shall state: accordance with the HUD-approved awareness and participation of minority affirmative fair housing marketing plan and women's business enterprises in (1)The actual(if known)or the and all Federal.State,or local fair estimated rent that will be charged housingand equal opportunity contracting and procurement activities. following the expiration of the HAP requirements.Thepurpose of the plan [d)Submission of financial and contract: q P operating statements.The Borrower (2)The difference between the new and requirements is to achieve a must submit to HUD: condition In which eligible families of (1)Within 60 days after the end of rent and the total tenant payment similar income levels in the same each fiscal year of project operations, toward rent under the HAP contract: housing market have a like range of financial statements for the project and housing choices available to them audited by an independent public (3)The date the HAP contract will regardless of discriminatory accountant and in the form required by expire. considerations,such as their race,color. HUD;and (d)Certification to IIUD.The creed,religion,familial status. (2)Other statements regarding project Borrower shall give HUD a certification disability,sex or national origin. operation,financial conditions and that families have been notified In Marketing must also be done in occupancy as HUD may require to accordance with this section and shall accordance with the communication administer the housing assistance attach to the certification an example of and notice requirements of Section 504 payments contract(HAP contract)or the the text of the notice. at 24 CFR 8.6 and 24 CFR 8.54. project assistance contract(PAC).as (e)Applicability.This section applies (3)At the time of HAP contract applicable.and to monitor project to all HAP contracts entered into under execution,the Borrower must submit to operations. an agreement to enter into a housing HUD a list of leased and unleased (e)Use of project funds.The Borrower assistance payments contract executed assisted units,with a justification for shall maintain a separate project fund on or after October 1,1981.or entered the unleased units,in order to qualify account in a depository or depositories Into under such an agreement executed for vacancy payments for the unleased that are members of the Federal Deposit before October 1, 1981 but renewed or units. Insurance Corporation or National amended after February 9.1995. (b)Management and maintenance. Credit Union Share Insurance Fund and (Approved by the Office of Management and The Borrower is responsible for all shall deposit all rents,charges,income Budget under control number 2502-0371.) management functions.These functions and revenues arising from project include selection and admission of operation or Ownership to this account. 5891.595 HAP contract extension or tenants,required reexaminations of All project funds are to be deposited in renewal, incomes for families occupying assisted Federally-insured accounts.All Upon expiration of the term of the units(or residential spaces.as balances shall be fully insured at all HAP contract.[IUD and the Borrower applicable),collection of rents, times,to the maximum extent possible. may agree(subject to available funds)to termination of tenancy and eviction. Project funds must be used for the extend the term of the HAP contract or and all repair and maintenance operation of the project(including to renew the HAP contract.The number functions(including ordinary and required insurance coverage).to make of assisted units under the extended or extraordinary maintenance and required principal and interest renewed HAP contract shall equal the replacement of capital items).All payments on the Section 202 loan,and number of assisted units under the functions must be performed in to make required deposits to the original HAP contract,except that: compliance with equal opportunity replacement reserve under§§891.605 (a)HUD and the Borrower may agree re uirements. and 891.745(as applicable),in to reduce the number of assisted units �c)Contracting for services.(1)with accordance with a HUD-approved by the number of assisted units that are [IUD approval,the Borrower may budget.Any project funds in the project not occupied by eligible families at the contract with a private or public entity funds account(including earned time of the extension or renewal;and for performance of the services or duties interest)following the expiration of the (b)HUD and the Borrower may agree required in paragraphs(a)and(b)of this fiscal year shall be deposited in a to permit reductions fin the number of section.However,such an arrangement Federally-insured residual receipts assisted units during the term of the does not relieve the Borrower of account within 60 days following the extended or renewed HAP contract as responsibility for these services and end of the fiscal year.Withdrawals from assisted units are vacated by eligible duties.All such contracts are subject to this account may he made only for families.Nothing in this section shall the restrictions governing prohibited project purposes and with the approval prohibit [IUD from reducing the number contractual relationships described in of IIUD.if there are funds remaining in of units covered under the extended or §§$91.130 and 891.505.if applicable. the residual receipts account when the 11976 Federal Registe�. 61, No. 57 / Friday, March 22, 1�/ Rules and Regulations ,. . mortgage is satisfied,such funds shall applicant families on the application. promptly notify the applicant In writing be returned to IiUD. Applicant families must be requested to of she determination,the reasons for the (Q Reports.The Borrowershall submit complete a release of Information determination,and that the applicant such reports as HUD may prescribe to consent for verification of information. has a right to request a meeting with the demonstrate compliance with Applicants applying for assisted units Borrower or managing agent to review applicable civil rights and equal must complete a certification of the rejection.in accordance with HUD opportunity requirements. eligibility as part of the application for requirements.The review,If requested. (Approved by the Office of Management and admission.Applicant families must may not be conducted by a member of Budget under control number 2502-0371.) meet the disclosur+o and verification the Borrower's staff who made the requirements for Social Security Initial decision to reject the applicant. S 881.605 Reptacement reserve. Numbers.and sign and submit consent The applicant may also exercise other (a)Establishment of reserve.The forms for the obtaining of wage and rights(e.g..rights,granted under Federal, Borrower shall establish and maintain a claim Information from Stale Wage State,or local civil rights laws)if the replacement reserve to aid in funding Information Collection Agencies,as applicant believes he or she is being extraordinary maintenance,and repair provided by 24 CFR part 5,subpart B. discriminated against on a prohibited and replacement of capital items. Both.the Borrower and the applicant basis.The informal review provisions (b)Deposits to reserve.The Borrower must complete and sign the application for the denial of a Federal preference are shall make monthly deposits to the for admission. On request.the Borrower provided in S 5.410T of this title. replacement reserve in an amount must furnish copies of all applications (f)Records.Records on applicants and determined by HUD.Further for admission to 11UD. approved eligible families,which requirements regarding the amount of (c)Determination of eligibility and provide racial,ethnic.gender,handicap the deposits for projects funded under selection of tenants.The Borrower is status,and place of previous residency §§891.655 through 891.790 are responsible for determining whether data required by HUD,must be retained provided in§891.745. applicants are eligible for admission and for three years. (c)Level of reserve.The reserve must for the selection of families.To be (g)Reexamination of familyincome be built up to and maintained at a level eligible for admission,an applicant and composition.(1)Regular determined by HUD to be sufficient to must be an elderly or handicapped reexaminations.The Borrower must meet projected requirements.Should family as defined in§891.505;meet any reexamine the income and composition the reserve reach that level,the amount project occupancy requirements of the family at least every 12 months. of the deposit to the reserve may be approved by HUD,meet the disclosure Upon verification of the Information. HU reduced with the approval of D. and verification requirements far Social the Borrower shall make appropriate (d)Administration of reserve. Security Numbers and sign and submit adjustments in the total tenant payment Replacement reserve funds must be consent forms for obtaining of wage and in accordance with part 813 of this deposited with iiUD or In aFederally- claim Information from State Wage chapter and determine whether the Insured depository in an Interest- Information Collection Agencies.as family's unit size is still appropriate. bearing account(s)whose balances are provided by 24 CFR part 5.subpart B; The Borrower must adjust tenant rent fully insured at all times.All earnings and,if applying for an assisted unit,be and the(sousing assistance payment an. including interest on the reserve must eligible for admission under part 813 of must carry out any unit transfer in be added to the reserve.Funds may be this chapter. accordance with the administrative drawn from the reserve and used only (d)Unit assignment.If the Borrower instructions Issued by MUD.At the time in accordance with HUD guidelines and determines that the family is eligible of reexamination under paragraph(g)(1) with the approval of.or as directed by. and is otherwise acceptable and units of this section.the Borrower must HUD, are available,the Borrower will assign require the family to meet the disclosure the family a unit.The Borrower will and verification requirements for Social §891.810 Selection and admission of assign the family a unit of the Security Numbers,as provided by 24 tenants. appropriate size in accordance with CFR part S,subpart B. (a) Written procedures.The Owner HUD's general occupancy guidelines.If (2)Interim reexaminations.The shall adopt written tenant selection no suitable unit is available,the family must comply with the provisions procedures that ensure Borrower will place the family on a In its lease regarding Interim reporting nondiscrimination in the selection of waiting list for the project and notify the of changes in income.If the Borrower tenants and that are consistent with the family of when a suitable unit may receives Information concerning a— purpose of improving housing became available.If the waiting list is so change in the family's income or other opportunities for very low-income long that the applicant would not be circumstances between regularly elderly or handicapped persons;and likely to be admitted within the next 12 scheduled reexaminations.the Borrower reasonably related to program eligibility months.the Borrower may advise the must consult with the family and make and an applicant's ability to perform the applicant that no additional any adjustments determined to be obligations of the lease.Owners shall applications for admission are being appropriate.Any change in the family's promptly notify in writing any rejected considered for that reason,except that income or other circumstances that applicant of the grounds for any the Borrower may not refuse to place an results in an adjustment in the total rejection.Additionally,owners shall applicant on the waiting list If the tenant payment,tenant rent and housing maintain a written,chronological applicant is otherwise eligible for assistance payment must be verified. waiting list showing the name,race. assistance and claims that he or she (3)Continuation of housing assistance gender,ethnicity and date of each qualifies for a Federal preference as payments.(i)A family shall remain person applying for the program. provided in 24 CFR part 5,subpart D. eligible for housing assistance payments (b)Application for admission.The (e)Ineligibility determination.if the until the total tenant payment equals or Borrower must accept applications for Borrower determines that an applicant exceeds the gross rent.The termination admission to the project in the form is ineligible for admission or the orsubsidy eligibility will not affect the prescribed by IIttD and is ohliented to Borrower is not selecting the applicant family's other rights under its lease. confirm all information provided by the for other reasons,the Borrower will IInusing assistance payments may be Federal Register i VOL( )Nu. 57 / Friday. March 22, 1996 r FS _a,::. 12977 resumed if,as a result of chances fir of this Nan,tiie du;ittwnal requirements utilities not covered i,y,vguh,cw rues), income,rent or other relevant aptly. and that are not adequately circumstances during Ilia term of the (a)The Borrower may require each compensated for by an annual HAP contract.ilia family meets the family occupying in unassisted unit(or adjustment.The Borrower must submit income eligibility requirements of part residential space in a group home)to to[IUD required supporting data, 813 of this chapter and housing pay a security deposit equal to one financial statements,and certifications assistance Is available for the unit under month's rent payable by the family. '- for the special additional adjustment. the terms of the HAP contract.The (b)The Borrower shall maintain a (b)Rent for unassisted units.The rent family will not be required to establish record of the amount in the segregated payable by families occupying units that Its eligibility for admission to the interest-bearing account that is are not assisted under the HAP contract project under the remaining attributable to each family in residence shall be equal to the contract rent requirements of paragraph(c)of this in ilia project.Annually for all families, computed under paragraph(a)of this section. and when computing the amount section. (ii)A family's eligibility for housing available for disbursement under assistance payments may be terminated §891.435(b)(3),the Borrower shall (Approved under the Office or Management 2502-03 t end p y allocate to the family's balance the Budget under control number 2502-0371.) In accordance with HUD requirements y� for such reasons as failure to submit interest accrued on the balance during §891.645 Adjustment of utility allowances. requested verification information. the year.Unless prohibited by State or In connection with adjustments of Including information related to local law,the Borrower may deduct for contract rents as provided in- disclosure and verification of Social the family,from the accrued interest for §$91.640(a),the requirements for the Security Numbers,or failure to sign and the year,the administrative cost of adjustment of utility allowances submit consent forms for the obtaining computing the allocation to the family's provided in§8131.440 apply. of wage and clam Information from balance.The amount of the Stale wage information collection administrative cost adjustment shall not 5891.650 Conditions for receipt of agencies.as provided by 24 CFR part 5, exceed the accrued interest allocated to vacancy payments for assisted units. subpart B. the family's balance for the year. (a)Ceneral.Vacancy payments under the IIAP contract will not be made (Approved by the Office of Management and §891-640 Adjustment of rents. unless the conditions for receipt of these Budget under control number 2502-0371.) (a)Contract rents.(1)Adjustment housing assistance payments set forth in §891.615 Obligations of the family. based on approved budget.If the HAP this section are fulfilled. contract provides,or has been amended (b) Vacancies during rent-up.For each The obligations of the family are to provide,that contract rents will be unit that is not leased as of the effective provided in§891.415. adjusted based upon a IiUD•approved date of the HAP contract,the Borrower §891.620 Overcrowded and budget,HUD will calculate contract rent is entitled to vacancy payments in the underoccupied units. adjustments based on the sum of the amount of 80 percent of the contract If the Borrower determines that project's operating costs and debt rent for the first 60 days of vacancy,if because of change in family size,an service(as calculated by HUD),with the Borrower: assisted unit is smaller than appropriate adjustments for vacancies.the project's (1)CompIied with§891.600; for the eligible family to which it is nonrental income.and other factors that (2)Has taken and continues to take all leased.or that the assisted unit is larger IIUD deems appropriate.The feasible actions to fill the vacancy;and than appropriate,housing assistance calculation will be made on the basis of (3)Has not rejected any eligible information provided b the Borrower applicant except for good cause payments or project assistance P y pP p payments(as applicable)with respect to on a form acceptable to the Secretary. acceptable to IIUD. the unit will not be reduced or The automatic adjustment factor (c) Vacancies afierrent-up.Iran terminated until the eligible family has described in part 888 of this chapter is eligible family vacates a unit.the been relocated to an appropriate not used to adjust contract rents under Borrower is entitled to vacancy alternate unit.If possible.the Borrower Paragraph(a)(1)of lhis section,except payments in the amount of ea percent will,as promptly as possible,offer the to the extent that the amount of the of the contract rent for the first 60 days family an appropriate alternate unit. replacement reserve deposit is adjusted of vacancy if the Borrower: The Borrower may receive vacancy under§880.602 of this chapter. (1)Certifies that it did not cause the payments for ilia vacated unit if the (2)Annual and special adjustments.If vacancy by violating the lease,the HAP Borrower complies with the the HAP contract provides that contract contract.or any appl icahle law; requirements of 6891.650. rents will be adjusted based on the 12)Notified IIUD of the vacancy or application of an automatic adjustment prospective vacancy and the reasons for §891.625 tease requirements. factor and by special additional the vacancy immediately upon learning The lease requirements are provided adjustments: of the vacancy or prospective vacancy; in§891.425. ()i)Consistent with the ILA contract, (3)Has fulfilled and continues to contract rents may be adjusted In fulfill the requirements specified in §891.630 Termination of tenancy and accordance with part 888 of this §891.600(a)(2)and (3),and in modification of lease. chapter; paragraphs(b)(2)and(3)of this section; The provisions of part 247 of this title (it)Special additional adjustments and apply to all decisions by a Borrower to will be granted,to the extent (4)For any vacancy resulting from the terminate the tenancy or modify the determined necessary by BUD,to reflect Borrower's eviction of an eligible lease of a family residing in a unit. increases in ilia actual and necessary family,certifies that it has complied expenses of owning and maintaining the with§891.630, §891.635 Security deposits. assisted units that have resulted from (d) Vacancies for longer than 60 days. The general requirements for security substantial general increases in real If a unit continues to be vacant after the deposits oft assisted units are provided property taxes,assessments,utility rates 60-day period specified in paragraph(h) in 5 891.435.For purposes of subpart E or similar costs(i.e.,assessments and or(c)of this section,the Borrower may 11978 Federal Register3 101. 61. No. 57 / Friday, March 22, 19; Rules and Regulations apply to receive additional vacancy Contract rent means the total amount PAC.The payment is the difference payments in an amount equal to the of rent specified in tho PAC as payable between the contract rent and the tenant principal and Interest payments by HUD and thb family to the Borrower rent.An additional payment Is made to required to amortize that portion of the for an assisted unit or residential space. a family occupying an assisted unit In debt service attributable to the vacant Family jeligible family]means a an Independent living complex when unit for up to 12 additional months for handicapped family(as defined in the utility allowance is greater than the the unit if. §891.505j that meets the project total tenant payment.A project (1)The unit was In decent,safe,and occupancy requirements approved by assistance payment.known as a sanitary condition during the vacancy HUD and,If the family occupies an 'vacancy payment,"may be made to the period for which payment is claimed; assisted unit,meets the Iow-income Borrower when an assisted unit(or (21 The Borrower has fulfilled and requirements described In§813.102 of residential space in a group home)Is continues to fulfill the requirements this chapter,as modified by the vacant,In accordance with the terms of specified in paragraph(b)or(c)of this definition of"annual income"in this the PAC. section,as appropriate:and section. Rent is defined in§891.505. (3)The Borrower has demonstrated to Cross rent Is defined in part 813 of Tenant rent means the monthly the satisfaction of HUD that: this chapter. amount defined in,and determined in (1)For the period of vacancy.the Croup home means a single family accordance with part 813 of this project Is not providing the Borrower residential structure designed or chapter. with revenues at least equal to project adapted for occupancy by nonelderly Total tenant payment means the expenses(exclusive of depreciation)and handicapped Individuals. monthly amount defined in.and the amount of payments requested Is not Housing for handicapped families determined in accordance with part B13 more than the portion of the deficiency means housing and related facilities of this chapter. attributable to the vacant unit;and occupied by handicapped families that Utility allowance is defined in part (it)The project can achieve financial are primarily nonelderly handicapped 813 of this chapter and is determined or soundness within a reasonable time. families. approved by HUD. (e)Prohibition of double Independent living complex means a Utility reimbursement is defined in compensation for vacancies.If the project designed for occupancy by part 813 of this chapter. Borrower collects payments for nonelderly handicapped families in Vacancy payment means the project vacancies from other sources(tenant separate dwelling units where each assistance payment made to the rent,security deposits,payments under dwelling unit Includes a kitchen and a Borrower by HUD fora vacant assisted §891.435(c).or governmental payments bath, unit(or residential space in a group under other programs),the Borrower Operating costs means expenses home)if certain conditions are fulfilled. shall not be entitled 10 collect vacancy related to the provision of housing and as provided in the PAC.The amount of payments to the extent these cat tections excludes expenses related to the vacancy payment varies with the from other sources plus the vacancy administering,or managing the length of the vacancy period and is less payment exceed contract rent. provision of,supportive services. after the first 60 days of any vacancy. (Approved by the Office of Management and Operating costs include: Budget under control number 2502-0371.) [1)Administrative expenses, §891.660 Project standards. Including salary and management (a)Property standards.The property Section 202 Projects for the Nonelderly expenses related to the provision of standards for 202/162 projects are handicapped Families and shelter, provided in g 891.120(aj. Individuals--Section 162 Assistance (2)Maintenance expenses,including (b)Minimum group home standards. §89t.655 Det[nttlons applicable to YO?Jt62 routine and minor repairs and The minimum group home standards for gr projects. oundskeeping: 2021162 projects are provided in The following definitions apply to (3)Security expenses; §891.310(a). $ pp y (4)Utilities expenses.Including gas. (c)Accessibility requirements.The projects for eligible families receiving oil,electricity,water,sewer,trash accessibility requirements for 202/I62 project assistance payments under removal,and extermination services. projects are provided in§§891.120(b) section 202(h)of the Housing Act of Operating costs exclude telephone and 891.310(b). 1950 in addition to reservations under services for families; (d}Smoke detectors.The section 202(2021162 projects): (5)Taxes and insurance;and requirements for smoky:detectors for Annual income is defined in part 813 (6)Allowances for reserves. 202/162 projects are provided in of this chapter.In the case of an PAC(project assistance contract) §891.120(d). individual residing in an intermediate means the contract entered into by the care facility for the mentally retarded Borrower and HUD setting forth the §891.665 Project size limitations. that is assisted under Title XIX of the rights and duties of the parties with (a)Maximum project size..Projects Social Security Act and subpart E of this respect to the project and the payments funded under§§891.655 through part,the annual income of the under the PAC. 891.790 are subject to the following individual shall exclude protected Project account means a specifically project size firnitatious: personal income as provided under that identified and segregated account for (11 Croup homes may not be designed Act.For the purposes of determining the each project which is established in to sera;neon than 1;persons on one total tenant payment,the income of accordance with§891.715(b)out of the Site; such individuals shall be imputed to be amounts by which the maximum annual (2)Independent living complexes for the amount that the family would Commitment exceeds Inc amuurlr clifu:ht.11,Y Git.1.:...,V ,+s;wL1.-..�':iJ1.;1u,1 receive if assisted under Title Xvi of the actually paid out under the PAC,each tint he designed to serve more than 20 Social Security Act. year. persons on one site:and Assisted unit means a dwelling unit Project assistance payment means the (3)Independent living complexes for that is eligible for assistance under a payment made by HUD to the Borrower handicapped families in the project assistance contract(PAC). for assisted units as provided in the developmental disability or physically Federal Register / Vol. ( Jfo. 57 / Friday. March 22, 1996 / Rtnd Regulations 21979 handicapped occupancy categories may materials to control or reduce (b)Projects must lie located in not have more than 24 units nor more maintenance,repair,and replacement neighborhoods where other family than 24 households on one site.For the costs is not an excess amenity. housing is located.Except as provided purposes of this section,"household" (b) Unit sizes.For independent living below,projects may not be located has the same meaning as"handicapped complexes,HUD will establish adjacent to the following facilities,or in family,"except that unrelated limitations on the size of units and areas where such facilities are handicapped individuals sharing a unit number of bathrooms,based on the concentrated:schools or day care (other than a handicapped person living number of bedrooms that are in the unit. centers for handicapped persons, with another person who is essential to (c)Special spaces and workshops,medical facilities,or other the handicapped person's well-being) accommodations.(1)The costs of housing primarily serving handicapped are counted as separate households. For construction of special spaces and persons.Projects may be located independent living complexes for accommodations may not exceed 10 adjacent to other housing primarily handicapped families in the percent of the total cost of construction, serving handicapped persons if the developmental disability or physically except as provided in paragraph(d)of projects together do not exceed the handicapped occupancy categories, this section.Special spaces and project size limitations under units with three or more bedrooms may accommodations include multipurpose §891.665(a). only be developed to serve handicapped rooms,game rooms,libraries.lounges, families of one or live parents with and,in independent living complexes, §891.685 Prohibited relationships. children. central kitchens and dining rooms. The requirements for prohibited (b)Additional limitations.Based on (2)Special spaces and relationships for 202/162 projects are the,amount of loan authority accommodations exclude offices,halls, provided in§891.130. appropriated for a fiscal year,HUD may mechanical rooms,laundry rooms,and have imposed additional limitations on parking areas.dwelling units and §891.690 Other Federal requirements. the number of units or residents that lobbies in independent living In addition to the Federal maybe proposed under an application complexes.and bedrooms,living rooms, requirements set forth in 24 CFR part 5, for Section 202 loan fund reservation,as dining and kitchen areas.shared other Federal requirements for the 2021 published in the annual notice of bathrooms.and resident staff dwelling 162 projects are provided in§§891.155 funding availability or the invitation for units in group homes. and 891.325. Section 202 fund reservation. (d)Exceptions.HUD may approve a (c)Exemptions.On a case-by-case project that does not comply with the §891.695 Operating cost standards. basis,}IUD may approve Independent cost containment and modest design The requirements for the operating living complexes that do not comply standards of n(agraphs(a)through(c) cost standards are provided in with the project size limitations §891.250. prescribed in paragraphs(a)(2),(a)(3).or (1)The Sponsor demonstrates a (b)of this section.IIUD may approve willingness and ability to contribute the §891.700 Prepayment of loans. such projects If the Sponsor incremental development cost and (a)Prepayment prohibition.The demonstrates: continuing operating costs associated prepayment(whether in whole or in (1)The increased number of units is with the additional amenities or design part)or the assignment or transfer of necessary for the economic feasibility of features:or physical and financial assets of any the p rejec! (2)Tho proposed project involves Section 202 project is prohibited,unless 12} project of the size proposed is substantial rehabilitation or acquisition the Assistant Secretary gives prior compatibleApr with other residential with or without moderate rehabilitation, written approval. the additional amenities or design (b)HUD-approved prepayment. development and the population features were Incorporated into the will oral for prepayment or transfer density of the area in which the project existing structure before the submission call!not be granted unless IIUD is to be located; (3)A project of the size proposed can of the application,and the total determines that the prepayment or be successfully integrated into the development cost of the project with the transfer of the loan is a part of a additional amenities or design features transaction that will ensure the community and 14J A protect of the size proposed is does not exceed the cost limits. continued operation of the project until marketable in the community. §891.675 Prohibited facilities. the original maturity date of the loan in The requirements for prohibited a manner that will provide rental §891.670 Cost containment and modest housing for the handicapped families on design standards. facilities for 202/162 projects are terms at least as advantageous to (a)Restrictions on amenities.Projects provided 2 §62 projects except that existing and future tenants as the terms must be modest In design.Except as Section commercial 162 projects may not g p include commercial spaces. required by the original Section 202 provided in paragraph(d)of this loan agreement and any other loan section,amenities must be limited to §891.680 Site and neighborhood agreements entered into under other those amenities,as determined by HUD, standards. I provisions of law. that are generally provided in The general requirements for site and §891.705 Project assistance contract. unassisted decent,safe,and sanitary neighborhood standards for 202/1G2 housing for low-income families in the projects are provided in§§891.125 and (a)Project assistance contract(PAC). market area.Amenities not eligible for 891.320.In addition to Ilia requirements The PAC sets forth rights and duties of !-IUD funding include balconies, in§§891.125 and 891.320,the following the Borrower and HUD with respect to atriums,decks,bowling alleys. re uirements apply to 202/162 projects: the project and the project assistance swirpating pools,saunas,and jar:uzzis. ga)The site must promote greater payments. Dishwashers,trash compactors,and choice of housing opportunities and (b)PAC execution.(1)Upon washers and dryers in individual units avoid undue concentration of assisted satisfactory completion of the project, will not be funded in independent persons in areas containing a high the Borrower and I IUD shall execute the living complexes.The use of durable proportion of low-income persons. PAC on Cho form prescribed by IIUD. 11980 Federal Registeriol. 61, No. 57 I Friday, March 22, 190 Rules and Regulations (2)The effective date of the PAC may amounts by which the maximum annual available for occupancy by eligible be earlier than the date of execution,but commitment exceeds the amount families ff: no earlier than the date of HUD's actually paid out under the PAC each (1)The Borrower fails to comply with issuance of the permission to occupy. year.HUD will make payments from the requirements of paragraph(a)of this (3)If the project is completed in this account for project assistance section;or stages,the procedum of paragraph(b) payments as needed to cover increases (2)Notwithstanding any prior of this section shall apply to each stage. iw contract rents or decreases in tenant approval by HUD.HUD determines that (c)Project assistance payments to income and other payments for costs the inability to lease units or residential owners under the PAC.The project specifically approved by the Secretary. spaces to eligible families is not a assistance payments made under the (2)If the HUD-approved estimate of temporary problem. PAC are: required annual payments under the (c)Restoration.HUD will agree to an (1)Payments to the Borrower to assist PAC for a fiscal year exceeds the amendment of the PAC to provide for eligible families leasing assisted units. maximum annual commitment for that subsequent restoration of any reduction The amount of the project assistance fiscal year plus the current balance in made under paragraph(b)of this section payment made to the Borrower for an the project account,HUD will,within a if assisted unit(or residential space in a reasonable time,take such steps (1)HUD determines that the group home)that is leased to an eligible authorized by section 202(h)(4)(A)of the restoration is justified by demand; family is equal to the difference between Housing Act of 1959,as may be (2)The Borrower otherwise has a the contract rent for the unit(or pro rata necessary,to assure that payments record of compliance with the share of the contract rent in a group under the PAC will be adequate to cover Borrower's obligations under the PAC; home)and the tenant rent-payable by increases in contract rents and decreases and the family. in tenant income. (3)Contract and budget authority is (2)Payments to the Borrower for available. vacant assisted units("vacancy 9891.720 Leasing to eligible families (d)Occupancy by families that are not payments").The amount of and (a)Availability of assisted units for handicapped.HUD may relieve the conditions for vacancy payments are occupancy by eligible families.During Borrower of the requirement that all described in§891.790.HUD makes the the term of the PAC,a Borrower shall units in the project(or residential project assistance payments monthly make all units(or residential spaces in spaces in a group home)must be leased upon proper requisition by the a group home)available for eligible to handicapped families if: Borrower,except payments for families.For purposes of this section, (1)The Borrower has made reasonable vacancies of more than 60 days,which making units or residential spaces efforts to lease to eligible families; HUD makes semiannually upon available for occupancy by eligible (2)The Borrower has been granted re d)uisition by the Borrower. families means that the Borrower: HUD approval under paragraph(a)of Payment of utility reimbursement. (1)Is conducting marketing in this section;and If applicable,a utility reimbursement accordance with§891.740(a); (3)The Borrower is temporarily will be paid to a family occupying an (2)Has leased or is making good faith unable to achieve or maintain a level of assisted unit in an independent living efforts to lease the units or residential occupancy sufficient to prevent complex as an additional project spaces to eligible and otherwise financial default and foreclosure under assistance payment.The PAC will acceptable families,including taking all the Section 202 loan documents.HUD provide this payment the Borrower behalf if of HUD I]make.Funds feasible actions a sill vacancies by approval imp edduration.er this may imposeraph will of P Y renting to such families;and(3)Has not will be paid to the Borrower in trust rejected any such applicant family terms and conditions to this approval solely for the purpose of making the except for reasons acceptable to HUD.if that are consistent with program additional payment.The Borrower may the Borrower is temporarily unable to objectives and necessary to protect its pay the utility reimbursement jointly to lease all units or residential spaces to interest in the Section 202 loan. the family and the utility company,or, eligible families,one or more units or §891.725 PAC admlrilstration. if the family and utility company residential spaces may,with the prior HUD is responsible for the consent,directly to the utility company. approval of HUD,be leased to otherwise administration of the PAC. §891.710 Term of PAC. eligible families that do not meet the The term of the PAC shall be 20 years. income requirements of part 813 of this §891.730 Default by Borrower. chapter.as modified b §891.505 If the project is completed in stages,the p Y (a)PAC provisions.The PAC will term of the PAC for each stage shall be Failure on the part of the Borrower to provide: 20 years.The term of the PAC for stages comply with these requirements is a (1)That if HUD determines that the Of a project shall not exceed 22 years. violation of the PAC and grounds for all Borrower is in default under the PAC, available legal remedies,including an HUD will notify the Borrower of the 5891.716 Maximum annual commitment action for specific performance of the actions required to be taken to cure the and project account PAC.suspension or debarment from default and of the remedies to be (a)Maximum annual commitment. HUD programs,and reduction of the applied by HUD,including an action for The maximum annual amount that may number of units for in the case of group specific performance under the PAC, be committed under the PAC is the total homes,reduction of the number of reduction or suspension of project of the initial contract rents and utility residential spaces)under the PAC as set assistance payment and recovery of allowances for all assisted units in the forth in paragraph(b)of this section. overpayments,as appropriate;and project. (b)leeduction of number of units (2)That if the Borrower fails to cure (b)Project account.(1)HUD will covered by the PAC.HUD may reduce the default.HUD has the right to establish and maintain a specifically the number of units(or in the case of terminate the PAC or to take other identified and segregated project group homes,the number of residential corrective action. account for each project.The project spaces)covered by the PAC to the (b)Loan provisions.Additional account will be established out of the number of units or residential spaces provisions governing default under the Federal Register I Vol& No. 57 I Friday, March 1996 I and Regulations 11981 Section 20.2 loan are included in the regard to the use of project funds are (1)Locol residency requirements are regulatory agreement and other loan provided in§891.600(e). prohibited.Local residency preferences documents. (f)Reports.The responsibilities of the may be applied in selecting tenants only Borrower with regard to reports are to the extent that they are not §891.735 Notice upon PAC expiratiom provided in§891.600(f). inconsistent with affirmative fair The PAC will provide that the housing marketing objectives and the Borrower will,at least 90 days before §891.745 Replacement reserve- Borrower's HUD-approved affirmative the eiid of the PAC contract term,notify The general requirements for the fair housing marketing plan.Preferences each family occupying an assisted unit replacement reserve are provided in may not be based on the length of time (or residential space in a group home) §891.605.For projects funded under the applicant has resided in the of any increase in.the amount the family §§891.655 through 891.790,the amount jurisdiction.With respect to any will be required to pay as rent as a result of the deposits for the initial year of residency preference,persons expected of the expiration:The notice of operation shall be an amount equal to to reside in the community as a result expiration will contain such 0.6 percent of the cost of the total of current or planned employment will information and will be served in such structures(for new construction be treated as residents. manner as HUD may prescribe. projects).0.4 percent of the cost of the (2)If the Borrower determines that the initial mortgage amount(for all other family is eligible and is otherwise. §891.740 Rmwonalbiililes of Borrower projects),or such higher rate as required acceptable and units(or residential (a)Marketing.(1)The Borrower must by HUD.For the purposes of this spaces in a group home)are available, commence and continue diligent section, total structures include main the Borrower will assign the family a marketing activities not later than 90 buildings,accessory buildings,garages, unit or residential space in a gr+sup days before the anticipated date of and other buildings.The amount of the home.If the family will occupy all availability for occupancy of the group deposits will be adjusted each year by assisted unit the Borrower wilt assign home or the anticipated date of the amount of the annual adjustment the family a unit of the appropriate size availability of the first unit in an factor as described in part 888 of this in accordance with HUD standst*.if independent living complex.Market chapter. no suitable unit(or residential space in activities shall include the provision of a group home)is available;the Borrower notices of the availability of housing §89i.750 Selection and admission of will place the family on a waiting list under the program to operators of tenants. for the project and notify the family temporary housing for the homeless in (a)Application for admission.The when a suitable unit or residential space the same housing market. Borrower must accept applications for may become available.If the waiting list (2)Marketing must be done in admission to the project in the form is so long that the applicant would not accordance with the HUD-approved prescribed by HUD.Applicant families be likely to be admitted within the next affirmative fair housing marketing plan applying for assisted units(or 12 months,the Borrower may advise the and all fair housing and equal residential spaces in a group home) applicant that no additional opportunity requirements.The purpose must complete a certification of applications for admission are being of the plan and requirements is to eligibility as part of the application for considered for that reason. achieve a condition in which eligible admission.Applicant families must (3)If the Borrower determines that an families of similar income levels in the meet the disclosure and verification applicant is ineligible for admission,or same housing market have a like range requirements for Social Security the Borrower is not selecting the of housing choices available to them Numbers,and sign and submit consent applicant for other reasons.the regardless of their race.color,creed. forms for the obtaining of wage and Borrower will promptly notify the religion,sex,or national origin. claim information from State Wage applicant in writing of the (3)At the time of PAC execution,the Information Collection Agencies,as determination,the reasons for the Borrower must submit to HUD a list of provided by 24 CFR part 5.subpart B. determination,and that the applicant leased and unleased assisted units(or in Both the Borrower and the applicant has a right to request a meeting to the case of a group home,leased and family must complete and sign the review the rejection,in accordance with unleased residential spaces)with a application for admission.On request, HUD requirements.The review,if justification for the unleased units or the Borrower must furnish copies of all requested.may not be conducted by the residential spaces.in order to qualify for appplications for admission to HUD. member of the Borrower's staff who vacancy payments for the unle.ased A Determination of eligibility and made the initial decision to reject the units or residential spaces. selection of tenants.The Borrower is applicant.The applicant may also (b)Management and maintenance. responsible for determining whether exercise other rights if the applicant The responsibilities of the Borrower applicants are eligible for admission and believes the applicant is being with regard to management and for the selection of families.To be discriminated against on the basis of maintenance are provided in eligible for admission,an applicant race,color,creed,religion,sex, §891.600(b). family must be a handicapped family(as handicap,or national origin. (c)Contracting for services_The defined in §891.505);meet any project (4)Records on applicants and responsibilities of the Borrower with occupancy requirements approved by approved eligible families,which regard to contracting for services are HUD;meet the disclosure and provide racial,ethnic,gender and place provided in§891.600(c). veri fication requirements for Social of previous residency data required by (d)Submission of financial and Security Numbers,as provided by 24 HUD,must be maintained and retained operating statements.The CFR part 5,subpart B;and be a low- for three years. responsibilities of the Borrower with iticoute family.as defined in §813.102 (c)Reexamination of family income regard to the submission of financial of this chapter(as modified by and composition(1)Regular and operating statements are provided §891.505).Under certain circumstances, reexaminations.If the family occupies in§891.600(d). HUD may permit the leasing of units(or an assisted unit(or residential space in (e)Use of project funds.The residential space in a group home)to a group home),the.Borrower must esponsibilities of the Borrower with ineligible families under§891.720. reexamine the inc6me and composition 11982 Federal Register A. 61, No. 57- / Friday, March'22, 19f Rules and Regulations of the family at least every 12 months. and claim information from State Wage home)that is not leased as of the Upon-rerification-of the information, Information Collection Agencies,as effective date of the PAC,the Borrower the Borrower shall make appropriate provided by 24 CFR part 5,subpart B. is entitled to vacancy payments in the adjustments in the total tenant payment (Approved by'the Office of Management and amount of 80 percent of the contract in accordance with part 813 of this Budget under control number 2502-0204 and rent or pro rata share of the contrac. chapter,as modified by§891.505,and 2505-0267.) rent for a group home)for the first 60 determine whether the family's unit size da s of vacancy,if the Borrower: is still appropriate.The Borrower must §891.755 Obiigallons of the family. �1)Complied with§891.740; adjust tenant-rent and the project The obligations of the family are (2)Has taken and continues to take all assistance payment and must carry out provided in§891.415. feasible actions to fill the vacancy;and any unit transfer in accordance with §891.760 Overcrowded and (3)Has not rejected any eligible HUD standards.At the time of the underoccupled units. applicant except for good cause annual reexamination of family income acceptable to HUD. and composition,the Borrower must The requirements for overcrowded (c) Vacancies after rent-up.If an require the family to meet the disclosure and underoccupied units are provided eligible family vacates an assisted unit and verification requirements for Social in§891.620. (or residential space in a group home) Security Numbers,as provided by 24 §891.765 Lease requirements. the Borrower is entitled to vacancy CFR part 5,subpart B. The lease requirements are provided payments in the amount of 80 percent (2)Interim reexamination.If the q p in§891.425. of the contract rent(or pro rata share of family occupies an assisted unit(or the contract rent in a group home)for residential space in a group home)the §891.770 Termination of tenancy and the first 60 days of vacancy if the family must comply with provisions in modification of lease. Borrower: the lease regarding interim reporting of The provisions of part 247 of this title (1)Certifies that it did not cause the changes in income.If the Borrower apply to all decisions by a Borrower to vacancy by violating the lease,the PAC, receives information concerning a terminate the tenancy or modify the or any applicable law; change in the family's income or other lease'of a family residing in a unit(or (2)Notified HUD of the vacancy or circumstances between-regularly residential space in a group home). prospective vac anncy and the reasons for scheduled reexaminations,the Borrower the vacancy immediately upon learning must consult with the familyand make §891.775 security deposits. of the vacancy or prospective vacancy; any adjustments determined to be The general requirements for security (3)Has fulfilled and continues to appropriate.Any change in the family's deposits on assisted units are provided fulfill the requirements specified in income or other circumstances that in§891.435.For purposes of subpart E §891.740(a)(2)and(3),and in results in an adjustment in the total of this part,the additional requirements paragraphs(b)(2)and(3)of this section; tenant payment,tenant rent,and project in§891.635 apply. and assistance payment must be verified. (4)For any vacancy resulting from the (3)Continuation of project assistance §891.780 Adjustment of rents. Borrower's eviction of an eligible payment.-(i)A family occupying an (a)Contract rents.HUD will calculate family,certifies that it has complied assisted unit(or residential space in a contract rent adjustments based on the with§891.770. group home)shall remain eligible for sum of the project's operating costs and (d) Vacancies for longer than 60 days. project assistance payment until the debt service(as calculated by HUD), If an assisted unit(or residential space total tenant payment equals or exceeds with adjustments for vacancies,the in a group home)continues to be vacant the gross rent(or a pro rata share of the project's nonrental income,and other after the 60-day period specified in gross rent in a group home).The factors that HUD deems appropriate. paragraph(b)or(c)of this section,HUD termination of subsidy eligibility will The calculation will be made on the may approve additional vacancy not affect the family's other rights under basis of information provided by the payments for 60-day periods up to a its lease.Project assistance payment Borrower on a form prescribed by HUD. total of 12 months in an amount equal may be resumed if,as a result of (b)Rent for unassisted units.The rent to the principal and interest payments changes in income,rent,or other payable by families occupying units or required to amortize that portion of the relevant circumstances during the term residential spaces that are not assisted debt service attributable to the vacant of the PAC,the family meets the income under the PAC shall be equal to the unit(or,in the case of group homes,the eligibility requirements of part 813 of contract rent computed under paragraph residential space).Such payments may this chapter(as modified in§891.505) (a)of this section. be a proved if: and project assistance is available for (1�The unit was in decent,safe,and the unit or residential space under the §891.785 Adjustment of utility allowances. sanitary condition during the vacancy terms of the PAC.The family will not In connection with adjustments of period for which payment is claimed; be required to establish its eligibility for contract rents as provided in (2)The Borrower has fulfilled and admission to the project under the §891.780(a),the requirements for the continues to fulfill the requirements remaining requirements of paragraph(b) adjustment of utility allowances specified in paragraph(b)or(c)of this of this section. provided in §891.440 apply. section,as appropriate;and (ii)A family's eligibility for project (3)The Borrower has demonstrated to assistance payment may also be §891.790 Conditions for receipt of the satisfaction of HUD that: terminated in accordance with HUD vacancy payments for assisted units. (i)For the period of vacancy,the requirements for such reasons as failure (a) General.Vacancy payments under project is not providing the Borrower to submit requested verification the PAC will not bb made unless the with revenues at least equal to project information,including failure to meet conditions for receipt cf these prc;cct expenses(exclusive of depreciation)and the disclosure and verification . assistance payments set forth in this the amount of payments requested is not requirements for Social Security section are fulfilled. more than the portion of the deficiency Numbers,or failure to sign and submit (b) Vacancies during rent-tip.For each attributable to the vacant unit(or consent forms for the obtaining of wage unit(or residential space in a group residentiai space in a group home);ant. Federal Register / Vol.$ tiNO. 57 / Friday, March 22, 1996 / Re* and Regulations 11983 (ii)The project can achieve financial soundness within a reasonable time. (e)Prohibition of double compensation for vacancies.If the Borrower collects payments for vacancies from other sources(tenant rent,security deposits,payments under §891.435(c),or governmental payments under other programs),the Borrower shall not be entitled to collect vacancy payments to the extent these collections from other sources plus the vacancy payment exceed contract rent. Dated:March 7.1996. Nicolas A.Retsinas, Assistant Secretary forflousing Federal Housing Commissioner. IFR Doc.96-6312 l=iled 3-21-96;8:45 am) BiLUHG CODE 421"T-P 'US Gove'nmpm RE"01" 098•440-9a 7 r COVER PAGE REQUEST FOR LATE SUBMITTAL (To accompany RCA) Department: Economic Development Subject Bowen Court Option Agreement Council Meeting Date:, 6/15/98 Date of This Request: 6/8/98 REASON (Why is this RCA being submitted late?): Staff was only recently notified that HUD Section 202 funds were available for 1998. The application deadline is July 7, 1998. EXPLANATION (Why is this RCA necessary to this agenda?): Having this item agendized as early as possible in advance of the July 7, 1998 deadline will allow for adequate processing time. CONSEQUENCES (How shall delay of this RCA adversely impact the City?): Additional subsidy costs for the Bowen Court Senior project will result from not making an attempt to gain a Section 202 funding award. Signature: 0-Approved O Denied k4 4e Departmerit-1-16W Ray Silver City Administrator RCA RO U T I N G SHEET INITIATING DEPARTMENT: Economic Development SUBJECT: Bowen Court Section 202 Application 5 COUNCIL MEETING DATE: June 15, 1998 ......:........ FACAATTACHMENTS .................. Ordinance (w1exhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if applicable) Attached Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (Wexhibits if applicable) (&ned in full by the Mty Affomy) Attached Subleases, Third Party Agreements, etc. (Approved as to form PZ City Attorney) Not Applicable Certificates of Insurance (Approved by the City Attorney) Not Applicable Financial Impact Statement (Unbudget, over$5,000) Not App Licable Bonds if applicable) Not Applicable Staff Report If applicabLe) Attached Commission, Board or Committee Report If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable PLANATION FOR MISSING ATTACHMENTS : '::::'::':,:':'�::::'::':':: .... ... ........... . : REVIEWED : , " RETURNED 'FORWARDED : Administrative Staff Assistant City Administrator (Initial) City Administrator(Initial) CitX Clerk EXPLANATION FOR RETURN OF ITEM:: ...... (Below Space For City Clerk's Use Only) RCA Author b F- 1 RECEIVED FROM { �' AND MADE A PART OF THE AECOFi�A H COUNCIL MEETING OF OFFICE OF THE CITY CLERK CONNIE BROCKWAY,CITY CLERK Bowen Court Senior Housing June 15, 1998 Item F-1 Bowen Court • Bowen Court Entitled In 1997 • HUD Section 202 Application Filed July 1997 Project Scored well • Did Not Receive Award 1 Je Bowen Court • New Round of Section 202 Funds Available • Changes In Rating Criteria Increase Chances of Award • Retirement Housing Foundation (RHF) Interested In Trying Again Bowen Court • 202 Application Guidelines Require Option Agreement —Terminates if Funds Not Awarded • RHF Largest Nonprofit With Section 202 Ownership & Management Experience • Agency Funding Commitments Made In 1997 z Bowen Court • Application Deadline: — July 7, 1998 • Awards Made In October 1998 • Other Funding Mechanisms Being Studied As Alternatives 3 Page 12 - CouncillAgenQAgenda -07/21/97 Q (12) E-16. JC!ty C pment Agency,)Redevelopment Aden .yEesolution-No-283 -9juppgrt For-Section 202 Anp Of Lake 5treCt & vAgreement Between-Re-development ActanV- lad-Retirement HQualna Foundasn_Insurance Waiver-Auftrizgtion Fir Agency Etaff To Negotiate A Disposition & Development Agreement With Orange Horsing Development Corp Or Other Agency (600.30) 1. Adopt Redevelopment Agency Resolution No. 283 authorizing funding support by the Huntington Beach Redevelopment Agency with a grant, or reduced sales price, of Agency-owned land acquired at a cost of$885,000 and a loan of$215,000 in Redevelopment Housing Set Aside Funds for the construction of senior apartments by Retirement Housing Foundation (RHF); 2. approve and authorize the Agency Chairman and Agency Clerk to execute the Option Agreement with Retirement Housing Foundation (RHF); 3. waive the required liability insurance for RHF only as they apply to the site control document, and only for purposes of applying for the HUD Section 202 program. This waiver will not be requested if a DDA is approved at a later time; and authorize Agency staff to negotiate a Disposition and Development Agreement (DDA) with RHF, Orange Housing Development Corporation (OHDC), or a special 501(C)(3) single asset nonprofit corporation as may be required by HUD, if Section 202 funds are awarded to the proposed project. Submitted-bylhe Economic Development Director [Approved 5-1-1 (Garofalo -- No; Julien -- Abstain)] E-17. (City Council)Amendment No. 1 To The Water Facilities Agreement-Between City And McDonnell []oualazComnany & McDonnelLDouglas Realty C4mpanv (600.10) -Authorize the Mayor and City Clerk to execute Amendment No. 1 to Water Facilities Agreement between McDonnell Douglas Company(MDC) and McDonnell Douglas Realty Company(MDRC) and the City of Huntington Beach. Submitted by the Public Works Director (Specifies the terms and conditions by which McDonnell Douglas Company (MDC) and McDonnell Douglas Realty Company (MDRC) grant fee ownership of a water well site and easements for construction of water facilities to the city, and by which the city installs certain improvements to its water distribution facilities.) [Councilman Harman requested that support of Congressman be requested by City to assist with easement problem -- Approved 6-1 (Julien out of room)] E-18. (Pity Cou ;'_I)Psgr as 1% Assoclates-First-Amendment To Prgfesslonal Services Contrilct-G15 Data Conyersion 5ejyfces RQ, Integrated Infrastructure,Management E!roqr-a-mj)IMP)lmj2le-mentationaRequireMents (600.10)-Approve and authorize execution by the Mayor and City Clerk of the First Amendment to Professional Services Contract behveen the City of Huntington Beach and Psomas and Associates for G!S Data Conversion Services to include professional consulting services in connection with: 1. Phase l for finalizing the LIMP,formulating a comprehensive financing strategy, and developing an implementation strategy; 2. appropriate 5100,000 to initiate Phase 1 of the Implementation Plan for finalizing the IIMP;and 3. waive the requirement that the consultant have $1,000,000[$100,000]in insurance per claim, and allow for$500,000 in this case. Submitted by the Public Works irgctor [Approved 7-0] - (12) Lj,o CITY OF HUNTINGTON BEACH U-�;Ikj 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK CONNIE BROCKWAY CRY CLERK CITY CLERK LETTER OF TRAhS11ITTAL REGARDING ITEM APPROVED BY THE CITY COUNCILIREDEVEI.OPNIENT AGENCY APPROVED ITEM DATE: TO- ATTENTIO`':ame DEPARTINIENT: �qf — REGARDING: iry, le,Z3p e"flxJ See Attached Action Agenda Item z Date of Approval I Z2 j 7- 1 Enclosed For Your Records Is An Executed Copy Of The Above Referenced Item For Your Records. &XXtt--"/&V d-� Connie Brockway City Clerk Attachments: Action Agenda Page/ Agreement / Bonds Insurance RCA Deed Other Remarks: zx CC: Y —Z WZ N c pa nt RCA Agrccmegt insurance Oth / gamy Dcpanmrnt I RCA Agreement Insurance Other✓ Name Dcpanmcnt RCA Ageement Insurance Other Risk Management Department Insurance Copy G.Folloµvp'agmts iransitr (Telephone-714-536.52271 ;, M• CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY CLERK CITY CLERK LETTER OF TRAhSNIITTAL REGARDING ITEM APPROVED BY THE CITY COUNCILIREDEVELOPIIE`T AGENCY APPROVED ITEtiI DATE: I ! 9 7 TO: / ATTENTION: Dame g,2Z��,t & /D la DEPARTINIENT: t &(dD, _t�[, LC�9�,�/�� ?9 REGARDING: City.state.Zip See Attached Action Agenda Item Date of Approval /.2 Z 9 1 Enclosed For Your Records Is An Executed Copy Of The Above Referenced Item For Your Records. �&a,,.,rr Connie Brockway City Clerk Attachments: Action Agenda Page—Z Agreement Bonds Insurance RCA Deed Other Remarks: CC: ✓ N 6 ""a art RCA, Agrecm t Insurance Other , ✓ Yf Name Department RCA Agreement Insurance Othcr Namc Departmcr:r me, Risk Management Department Insurance Copy G:Folto%%vp'agsnts'lransltr (Telephone:7]4-536.5227) e) f 1 Council/Agency Meeting Held: Deferred/Continued to: 1,797, GYApproved ❑ Conditional)_Ap r ved ❑ Denieck City ClerkTSignature Council Meeting Date: July 21, 1997 Department ID Number: ED 97-33 CITY OF HUNTINGTON BEACH REQUEST FORS D VELOOPMENT AGENCY ACTION SUBMITTED TO: CHAIRMAN AND REDEVELOPMENT AGENCY MEMBERS SUBMITTED BY: -RAY SILVER,-. As s.ist:ant Executive Director 6pwop PREPARED BY: DAVID C. BIGGS, Director of Economic Development SUBJECT: SUPPORT FOR SECTION 202 APPLICATION: BOWEN COURT SENIOR APARTMENTS — ae�. :e,�;YLer. ae3 Au �. Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachments) Statement of Issue: As part of an ongoing effort to identify funding sources for the construction of the Bowen Court project at the corner of Lake Street and Yorktown Avenue, staff recommends supporting an application for federal funds by a nonprofit housing sponsor. Section 202 Capital Advance and Rental Assistance Program ("Section 202") funds are administered by HUD and are available only for senior projects. Applications for the highly competitive program are due on July 28, 1997. Fundinq Source: Currently Budgeted Redevelopment Housing Set Aside Funds; E-TX-ED- 967-3-90-00 and E-TX-ED-967-6-39-00 Recommended Action: Motion to 1. Adopt Resolution No. A.M authorizing funding support by the Huntington Beach Redevelopment Agency with a grant, or reduced sales price, of Agency-owned land acquired at a cost of $885,000 and a loan of $215,000 in redevelopment housing set aside funds for the construction of senior apartments by Retirement Housing Foundation (RHF). 2. Approve and Authorize the Agency Chairman and Agency Clerk to execute the Option Agreement with Retirement Housing Foundation (RHF). 3. Waive the required liability insurance for RHF only as they apply to the site control document, and only for purposes of applying for the HUD Section 202 program. This waiver will not be requested if a DDA is approved at a later time. 4. Authorize Agency staff to negotiate a Disposition and Development Agreement (DDA) with RHF, Orange Housing Development Corporation (OHDC), or a special 501 (c)(3) single asset nonprofit corporation as may be required by HUD, if Section 202 funds are awarded to the proposed project. REQUESTYOR REDEVELOPMENT AGEIdY ACTION MEETING DATE: July 21, 1997 DEPARTMENT ID NUMBER: ED 97-33 Alternative Action(s): Do not approve support for the transaction, thereby canceling a Section 202 application at this time Analysis: On June 2, 1997, the City Council approved entitlements for a 21 unit senior apartment project. At the meeting, it was announced that a Notice of Funding Availability (NOFA) was being released by HUD for the Section 202 program. Shortly after the Council meeting, OHDC informed staff that it would highly recommend that a larger nonprofit apply for 202 funds. Staff attended a workshop given by HUD on June 19, 1997 to learn more about the Section 202 application process and verify that the application deadline is July 28, 1997. After attending the workshop and speaking with several experienced nonprofit sponsors, consultants and HUD officials, it became clear that Section 202 experience is critical to submitting a competitive application. Retirement Housing Foundation (RHF) owns Section 202 and 811 units throughout the nation. While OHDC will continue to support the project and will work with RHF, it is recommended that RHF be the 202 applicant. OHDC will have a seat on the board of directors of the single asset nonprofit that will be formed to own Bowen Court if a Section 202 award is made. If 202 funds are not awarded to the project, OHDC would again be the primary sponsor-developer of the project. The attached resolution is similar to one previously adopted by the Agency for the past unsuccessful tax credit applications. A new resolution is needed for the 202 application. Approval of an option agreement is required at this point in order to allow RHF to demonstrate to HUD that a level of site control exists. Section 202 Funds The Supportive Housing for the Elderly program (a.k.a. Section 202) is authorized by Section 202 of the Housing Act of 1959, and provides financial assistance to private nonprofit organizations to expand the supply of supportive housing for the elderly. HUD administers the program nationwide through its individual field offices. The funds are provided in the form of capital advances for new construction, or rehabilitation or acquisition of existing structures (purchased from the FDIC only); and also in the form of contracts for rental assistance for a minimum of five years. For Federal Fiscal Year 1997, $27,990,373 in Section 202 funds are available through the Los Angeles HUD office, for a maximum 351 units. Applications (due July 28, 1997) are competitive and awards are based on the number of number of points a project is given on a scale of 0 to 100 points, plus ten additional bonus points. Points are awarded by a team of HUD officials based on three broad categories: the sponsor's ability to develop and operate the proposed project; the need for supportive elderly housing in the immediate area; and adequate provision of supportive services. Many subcategories of criteria are included under each broad category such as years and quality of sponsor experience; extent of local government support; proximity of a site to shopping, employment, medical facilities, senior centers and other amenities; along with project design and amenities, are some of the factors that are analyzed by HUD. 97RAA2.DOC -2- 07/02/97 4:51 PM REQUEST FOR REDEVELOPMENT AGENVY ACTION MEETING DATE: July 21, 1997 DEPARTMENT iD NUMBER: ED 97-33 Retirement Housing Foundation (RHF) RHF has been a nonprofit organization since 1961. In thirty-five years, RHF has become the developer-sponsor, owner and manager of 12,228 units for seniors, disabled persons and low income families located in 129 facilities in 23 states, and in Puerto Rico and the Virgin Islands. Of these, 11,536 units are for seniors in various stages of life. Two local projects sponsored by RHF are Donald Jordan Sr. Manor, in Garden Grove, and Laurel Park Manor, in Los Alamitos. Because RHF is widely recognized as one of the largest and best nonprofits, and because HUD favors experienced Section 202 sponsors, its involvement with Bowen Court should make an application stronger and more competitive. RHF counts 4902 units of Section 202/811 senior units in its portfolio as of November 30, 1996. Environmental Status: Not applicable to this action; however, a CEQA review has been completed as part of the pre-entitlement process. AttachmenW: List attachment(s) below. DescriptionCity Clerk's Page Number No.' Start Numbering 1. Redevelopment Agency Resolution � 2. Option Agreement 3. RHF Annual Report 4. HUD Section 202 NOFA RCA Author. GAB x8831 i 9TRAA2.D4C -3. OT10919T 1:5T PM V V Redevelopment Agency Resolution U. V ki RESOLUTION NO. 283 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH AUTHORIZING FUNDING SUPPORT FOR RETIREMENT HOUSING FOUNDATION TO CONSTRUCT AN AFFORDABLE HOUSING PROJECT WHEREAS,the Redevelopment Agency of the City of Huntington Beach (the Agency) has State mandates to construct affordable housing;and Affordable housing is needed to provide housing for our citizens; and Retirement Housing Foundation(RI-IF)has identified a project site kno-,4m as the Bowen Court Project; and RHF will need to acquire funding assistance from the Federal Section 202 program; and The Agency's funding assistance is required and has been requested by RHF to construct the Project; and Based on the funding assistance,the Agency will require a Disposition and Development Agreement(DDA) for regulation of the Project;and A funding commitment from the Agency is necessary to allow RHF to apply for the Federal Section 202 program;and The Agency's funding assistance is available,conditioned upon: 1)RHF receiving Federal Section 202 program funds,and 2)RHF reaching agreement with the Agency on the DDA. NOW,THEREFORE,the Redevelopment Agency of the City of Huntington Beach does hereby resolve as follows: I. That a grant,or a reduced sales price of approximately$885,000 in Agency- ov.-ned land and loan of$215,000 in housing set aside funds as a residual receipts loan (terms to be negotiated)is committed to this Project,conditioned as indicated above. 2. That the Executive Director is hereby authorized and directed to assist RHF in its Section 202 application and to execute any and all documents on behalf of the Agency as necessary or appropriate thereto. 1 4/s:PCD:Resolution:Rl Irnowen r RLS 97-535 _ Res. No. 283 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, Clerk of the Redevelopment Agency of the City of Huntington Beach, California, DO HEREBY CERTIFY that the foregoing resolution was duly adopted by the Redevelopment Agency of the City of Huntington Beach at an adjourned regular meeting of said Redevelopment Agency held on the 21st day of July, 1997 and that it was so adopted by the following vote: AYES: Members: Harman, Dettloff, Bauer, Sullivan, Green NOES: Members: Garofalo ABSENT: Members: ABSTAIN: Julien Clerk of the Redevelopment Agency of the City of Huntington Beach, Ca. G/reso1uti/resbkpg2/Res.281 L kj Resolution 283 PASSED AND ADOPTED by the Redevelopment Agency of the City of I Iuntington Beach at a regular meeting thereof held this 21st day of July 1997. Chairman ATTES i: APPROVED AS TO FORM: Agency Clerk y �,f Agency Attorney REVIEWED AND APPROVED: I IATED AND APPROVED: Ass stant Executive Director �rrolDi •ctorof Economic Development 2 4/sTCD:ResoluIIon:RI I Fbo%vtn ' RLS 97-535 7/9,97 V Option Agreement OPTION AGREEMENT BET%VEEN THE REDEVELOPMENT AGENCY OF THE CITY OF 11UNTINGTON BEACII AND RETIREAIENT 11OUSING FOUNDATION THIS OPTION AGREEMENT("Option Agreement")is made and entered into as of the "Effective Date"(as that term is hereinafter defined),by and between the Redevelopment Agency of the City of Huntington Beach("HBRDA",sometimes also referred to herein as "Agency'),and Retirement Housing Foundation(RHF),and its assignees or nominees ("Optionee"). RECITALS HBRDA is a public body,corporate and politic,organized and existing under the California Community Redevelopment Law(health&: Safety Code Sec. 33000 d=.). HBRDA desires to assist affordable housing projects; and Optionee is a California nonprofit 501 (c)(3)corporation which has as one of its purposes the provision of affordable housing for households;and has current extensive experience Nvith the Los Angeles office of the U.S. Department of Housing and Urban Development(HUD) in the development of Section 202 projects for the elderly,which maximizes the chances of an award, and HBRDA is the owner of real property consisting of approximately .75 acres, located at 1968, 1972, 1976, 1978 and 1982 Lake Street in the City of Huntington Beach(the"property"). Attached hereto as Exhibit"A"and incorporated herein by this reference is the legal description of the Property; and HBRDA desires to assist Optionee in any practical way to develop site as an affordable residential senior project including but not limited to: 11BRDA loans to Optionee in the aggregate amount of$215,000 from sources available to HBRDA and the City of Huntington Beach. Such loans will be made on terms to be later negotiated. Optionee desires to obtain an option to acquire the Property and accept a write down of the sales price of the Property from HBRDA,and HBRDA desires to grant an option to acquire the Property to Optionee,on the terms and conditions set forth in this Option agreement,and thereafter to transfer and convey the Property in order for Optionee to develop 21 one(1) bedroom affordable rental apartment units for seniors only on the Property(the"Project"), and Optionee will maintain a working relationship with Orange Housing Development Corporation,the original nonprofit developer of the Bowen Court senior project currently entitled for the Property. NOW,THEREFORE,the parties hereto agree as follows: 1. Grant of, ption. HBRDA and Optionee agree that for the entire"Option Period" set forth in Paragraph 2 below,Optionee shalt have the right, but not the obligation,to acquire the property and to accept the grant,or partial grant of the Property subject to the terms and provisions set forth in this Option Agreement. 2. Option Period. The term of the option provided to Optionee by HBRDA pursuant to this Option Agreement shall commence on the Effective Date hereof and terminate at 5:00 p.m. on January 31, 1998,unless sooner terminated as provided herein("Option Period'). However, the Optionee may request an additional six month extension to accommodate continued processing of a HUD Section 202 Capital Advance application. Additional extensions may be negotiated between HBRDA and Optionee,provided that a HUD Section 202 Capital Advance award has been made to the project,sufficient progress in the development application to the City has been made and that additional processing time is needed by the Optionee. 3. Manner of Exercise of Option. Provided Optionee is not in default hereunder, Optionee may exercise its right to acquire the Property by delivering written notice to HBRDA of Optionee's exercise of the option. 4. Failumia E cise QL2tion. In the event Optionee fails to exercise the option in accordance with the terms hereof by the expiration of the Option Period,or if Optionee delivers to the HBRDA written notice that Optionee desires to cancel this Option Agreement during the Option Period,Optionee shall have no interest whatsoever in the Property and this Option Agreement shall be come null and void of no force and effect,provided,however, Optionee shall, within fifteen(15)days after the expiration of the Option Period,deliver to HBRDA all tests and studies and reports related to the Property prepared by or for Optionee, including but not limited to soil tests,engineering reports,and marketing plans. S. Terms of Ac$uisition. Optionee shall acquire the Property and HBRDA agrees to convey and transfer the Property by grant and/or residual receipts note,or at minimal cost to Optionee. the parties acknowledge and agree that the fair market value of the property is $885,000 and the parties further acknowledge and agree that the justification for a grant of the Property at reduced cost,or sale by residual receipts loan,is to allow HBRDA to provide a"land write-down'subsidy to assist the development of this affordable rental housing project for the elderly. As conditions precedent to the Optionee's exercise of this Option, Optionee must obtain approval of its application to the U.S. Department of Housing and Urban Development("HUD") for reservation as more further described below. 6. Award of HUD_Sgcti rL 202 Funds. HBRDA acknowledges that Optionee is submitting an application with respect to the Property to HUD for a Section 202 Capital Advance and Project Rental Assistance Program for an affordable housing project for elderly persons. Within ten(10)days after receipt of notice from HUD as to whether or not the Project has . 2 4/sTMAgrecOptionag RLS 97-53 7/91975 V received an award, Optionee shall notify HBRDA whether or not the Project has been granted an award of Section 202 funds. HBRDA agrees to fully cooperate with Optionee in fulfilling the requirements for the application for Section 202 funds by taking all necessary actions required of it in connection with the application for Section 202 funds HBRDA further agrees that if Optionee does not receive a preliminary reservation for Section 202 funds,during the Option Period HBRDA will cooperate in subsequent applications for Sectiori 202 funds. 7. ]UtleEo&Y. Within thirty(30)days following notification by HUD to Optionee that the Project has received a Section 202 award, HBRDA shall furnish Optionee with a preliminary title report from a title company selected by Optionee. Optionee shall notify HBRDA of any objectionable items within thirty(30)days of receipt of the preliminary title report and HBRDA shall use its best efforts to remove such items. Within ten(10)days thereafter Optionee shall either accept the condition of title or terminate the option,provided, however, such acceptance shall not extinguish any rights Optionee shall have to further review subsequent preliminary title reports and request that HBRDA remove items from the title during the period prior to which IIBRDA transfers title to the Property to Optionee. 8. Richt to Enter. During the Option period,Optionee,and through Optionee its designated agents and independent contractors, shall have the right,upon reasonable prior notice to HBRDA, to enter upon any portion of the Property for the purpose of conducting soil tests, engineering and boundary surveys,environmental studies and hazardous waste determination, and other investigations relating to the Property and Optionee's acquisition thereof and development of the Project thereon,as are deemed necessary and required by Optionee, subject to the possessory interests of any lawful occupants of the premises. Optionee agrees to indemnify,defend,and hold HBRDA,and the Property free and harmless from and against any and all liabilities resulting from Optionee's activities as provided in this Section 9,including but not limited to mechanic's liens. Optionee shall provide general liability insurance in the coverages and amounts required by Iluntington Beach City Council Resolution No. 6277,and shall name the Agency as an additional insured on all such insurance policies. Optionee agrees to bear all costs in connection with all work performed by Optionee or by others on behalf of Optionee. Optionee agrees to promptly repair within two(2)weeks any damage or disturbance it or its agents or independent contractors cause to the Property and to restore the Property to its pre-existing condition. IlBRDA agrees to provide to Optionee all studies,reports,analyses,or other similar documents and information IIBRDA may have in its possession and control which relate to soil condition,boundaries,environmental issues,hazardous wastes,and the like. 9. Commissions; HBRDA and Optionee each represent to the other that neither has entered into any agreement of incurred any liability which might result in the obligation to pay a finder's or broker's or sale's fee or commission with respect to the transaction contemplated hereby. HBRDA and Optionee each agree to indemnify the other for the cost incurred as a result of any claim for such fee or commission caused by the acts of the indemnifying party whether or not such claim is successful. 3 4/s:PMAgnecOplionag RLS 97-53 7191975 L 10. Notice. Any notice or demand to be given by one party to the other shall be delivered by (i)personal service,(ii)a reputable document delivery service such as Federal Express that provides a receipt showing date and time of delivery,(iii) facsimile transmission if confirmation of transmission receipt is available and the original is delivered by one of the other means set forth in this Section 12,or(iv)United States mail,postage prepaid,certified, addressed to the parties as their respective addresses as follows: If to Agency: The Redevelopment Agency of the City of Huntington Beach Department of Economic Development 2000 Main Street Huntington Beach,CA 92648 Attention: Executive Director With Copy To: Agency Attorney If to Optionee: Retirement Housing Foundation 5150 East Pacific Coast Highway,Suite 600 Long Beach,CA 90804-3312 Attention: Executive Director With Copy to: Alan D. Roos,Law Corporation 17530 Ventura Blvd., Suite 106 Encino, CA 91316-3879 Notices delivered by personal delivery document delivery service providing acknowledgment of receipt as described above,or facsimile transmission N%ith confirmation of transmission shall be deemed received on delivery or transmission. Notices delivered by mail shall be effective at Noon on the second business day following deposit with the United states Postal Service. Either party may change the address at which it desires to receive notice by giving written notice of such request to the other party in accordance with the terms of this Section 12. 11. Atlorney:s Fees. In the event of any litigation between the parties to this Option Agreement,each party shall bear its own costs and attorney's fees. The prevailing party shall not be entitled to recover its reasonable attorneys' fees and costs. 12. Applicable Law. Forum: Service of Process. This Option Agreement shall be governed by,and construed under,the laws of the State of California. the parties hereto agree that the Municipal and Superior Courts of the State of California in and for the County of Orange 4 a/s:PCD:Agrcc:optionag RLS 97-53 7/91975 shall have exclusive jurisdiction of any litigation between the parties arising out of or connected to this Option Agreement. Service of process on HBRDA shall be made in accordance with the requirements for service of process on a public entity. Service of process on Optionee shall be made in any manner permitted by law and shall be effective whether served inside or outside of California. 13. Interpretation. this Option Agreement shall not be interpreted for or against either party notwithstanding any rule of construction that might apply. 14. Waiver or Modification. A waiver of a provision hereof, or other modification of any provision contained herein, shall be effective only if said waiver or modification is in writing. and signed by the party waiving its rights. No waiver of any breach or default by any party hereto shall be considered to be a waiver of any breach or default. 15. Successors and Assigns. Optionee shall not have the right to assign its interest under this Option Agreement without the prior written consent of the Agency first hand and obtained, which consent shall not be unreasonably withheld. No assignments by Optionee shall be effective unless and until the proposed assignee has agreed in writing to accept the terms an conditions hereof. It is anticipated that HUD will require that all interests under this Option Agreement must be assigned to a newly formed, single asset 501 (c) (3)nonprofit corporation as ultimate owner of the project. 16. Severability. In the event that any provision of this Option Agreement is void, illegal, or unenforceable,the balance of this Option Agreement shall be performed and be enforceable to the extent the same can be accomplished consistent with the intent of the parties. 17. Survival of Covenants. The covenants,representation, and warranties of HBRDA and Optionee set forth in this Option Agreement shall not merge with any grant deed for the Property. 18. Amendments. The Option Agreement may be amended only by an instrument in writing sighed by all of the parties hereto, after all required actions of the parties' governing authorities. 19. Entire Agreement. This Option Agreement contains the entire agreement between the parties relating to the subject matter hereof. 20. Time of the Essence. Time is of the essence in the performance of the terms of this Option Agreement. 21. Effective Date. The"Effective Date"of this Option Agreement shall be the date this agreement is adopted by the Agency. 5 4/s:PCD:Agree:Optionag RLS 97-53 7/9/975 22. Recording of Memorandum of Option. Upon request of either party,the parties shall execute and record a Memorandum of Option in a form acceptable to counsel for HBRDA and Optionee. 23. Quitclaim Deed. If this Option Agreement expires by its terms or is terminated for any reason, and a Memorandum of Option has been recorded, Optionee agrees,within five (5) days of request therefore by HBRDA,to execute, acknowledge,and deliver to HBRDA a quitclaim deed and any other documents or instruments required to remove the cloud of this Option Agreement from the title to the Property. IN WITNESS WHEREOF,the parties hereto have executed this Agreement as of the Effective Date. OPTIONEE: AGENCY: RETIREMENT HOUSING FOUNDATION THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH By: ,4tz"!�L— cULftVV -Exe= Chairman Laverne . Jose ATTEST.Pre'iuent & CEO APPROVED AS TO FORM: Agency Clerk ,: 7 rr?a 9 7 / Agency Attorney INI TED AND ROVED: REVIEWED AND APPROVED: C/L d.ew �41� Dire or of Economic Development Assistant Executive Director (SMb 'A\0\6R 6 4/sTMAgree:0ptionag RLS 97-53 7/10/975 V V Exhibit A Legal Description All that certain land situated in the City of Huntington Beach, County of Orange, State of California and being a portion of the alley of Tract Map No. 13920 recorded in Book 673,pages 14,15,and 16 of miscellaneous maps, in the Office of the County Recorder of Orange County, described as follows: Beginning at the southeast corner of Lot 5 of Tract Map No. 13920;thence south 89°40' 54", 20.00 feet to the easterly line of the alley right-of-way;thence north 00' 19' 18"east,206.71 feet more or less to the southerly right-of-way of Yorkto,.;m Avenue and also the beginning of a tangent curve concave northwesterly having a radius of 850.00 feet;thence northwesterly along said curve through a central angle of P 20' 59"an arc distance of 20.02 feet to the northwesterly comer of Lot 1 of Tract Map No. 13920;also the westerly right-of-way of the alley;thence south 00019' 18"west,207.71 feet more or less to the point of beginning. �XHIBIT 'B' SKETCH TO ACCOMPANY LEGAL DESCRIPTI❑N of �r ar Oil LJ W i to) a�14o a' c")� I I �5' - 4 R`80 °v a n,� LJ I t4 Ln i 10(�L1 fW � I W A=10 20' 59' Q J � R=850.00' � CL.E � iQ �t L=20.02' F— LOT 1 Lo IN cu Ld NW L , �- m A I .� CZ c� Z : u _ LOT 2 wl s_ p ff J ¢ ' Z kQ I LOT 3 < t T W W I �D LOT 4 ' 45' _ io of t LOT 5 z z I r _- -_.�_ S 890 40' 54' E I ALLEY � 20.00' LOT 6 INDER ENGINEERING.-INC 1819 WEST CHAPMAN AVENUE SUITE M ORANGE, CALIF. 92868 PHONE : (714) 634-8270 u v RHF Annual Report ATTACHMENT #3 —•�� �;; ..�11!• ; ��x /!���. 1` � '� •ter• rs .��`M y- ,. �fj` i i� ~`,!� ti r1, I�t;f �e, •'•�±��• `�1fr.� f i t f K'.,;;�•1�- \ rn lie ti a i iy.. \s`�.�• 1I I lip . fix /� � a�• Ssl F t��1.1 � � y t1t fiif, ! ' ,c •. • • ' `� rj� ', R.•. ..:F•' ++err. K1,� }i tso?,� .i=� J. � le��,, � ... �� ;,�t�1,, •may' �f e:m gsiog.of R&fbemen ou rn u n .ujationul nonprofit�niatiori,"is to. rovide ` -forthe T ' =income ° 17ies t ccoi uig. ds;-"in an-in ?nmen t t J y :-as it reviles to their physical, mentQl Pin to ' `" S'� :L1'` .1r "F'. .- is�..r .y-- -.max-.-,�[ ..-. - IY- ._ f-: -�.• ' - - •ems.. .. -.P�ti � -- 1- .- .. ••- •-1..-- � - .. l- ...4ti`-- - - .. -- e.- _- ^ M�J� ..'•. •�'_ - •--. 4.. r..w' - r i. . _ `•S•.•- L . ..-... • ` - rR wr.'�•V% ._ . -v ..i'>,-Y w -••l•' -"�'• y - [• .. -f .. �.4"'y`I� .r-•i[.. - i 1. - 4. �Ml�.� .'w]�.'t.- _ .'p.. e Retirement Housing Foundation is Committed to semhzi its'residehts ` and their local communities. Our annual report design showcases RHF's 351h anniversary quilt svith patches from each RHFconnmrmity. Preparation of the quilt seas coordinated by Michael Sands, adnninnistrator of Yelloni ood Terrace in Clarksville, Indiana, with some'nteticulous stitching by Yellowwood residents Vivian Dangler and Luella Brown. t.Yy�ti M i. r1(1.• r. 1 A 3'•. I rs. Virginia O. Mundy, 82, a resident of Kemet House in Chesapeake, Virginia,finds solace and comfort in the traditional hymns she heard as a girl. She brings joy to her neighbors and to the , surrounding community when , she plays and sings these classics �f ' on guitar. She enjoys reading the Bible, and her favorite passage John 14:2 IFather's n m J h ,.house there are many mansions...I go to prepare a place for you' reminds . `' her to thank God for bringing her to Kemet House and "preparing a place" where she can live her life with dignity and self-respect. Kemet House, owned and ; operated by Retirement Housing Foundation, provides 38 1 ` residential units of affordable housing for seniors in the r- Chesapeake area. .ems%k � ,�"•. .�... 60 `..I'r' tif,:. :••4i'3 4A r N^ :: •fib",�,'.' .,¢a%�'":' Celebration of L I* fe Rev. Laverne R. Joseph, D.D. his Annual Report features just a whom we have served for more than a de- few of the more than 14,000 persons cade. There are 2,314 employees in our facili- who call an RHF facility "home." It ties and corporate and regional offices,and is a celebration of life that goes on 390 corporate and local facility Board Mem- 24 hours a day,every day, in seven different bers,plus countless volunteers and benefac- time zones,from the Caribbean to the Hawai- tors. Thank you to all of you for your con- ian Islands.We celebrate the accomplishments tinuing efforts to make RHF the best that we of our wonderful residents,staff,volunteers, can be. contributors and Board Members.We share Some of the highlights of the last 12 the hopes and dreams, the triumphs and months include: tragedies, the laughter and tears, the concerns •:•We held wonderful 35th anniversary cele= and caring of all whose lives touch one an- brations with the 1996 Annual Meeting and in other in this 5,981 mile expanse. our facilities throughout the year. From modest beginnings in 1961, RHF has -:•The Carlin (Arlington,Virginia) was grown to become one of the nation's largest opened and dedicated. This I62-unit senior nonprofit sponsors and managers of housing tax-credit facility is the nation's first retire- and services for seniors and persons with ment community financed under the risk- disabilities. As of the printing of this report sharing program developed by the U.S. De- (February 1997),we are operating 129 facili- partment of Housing and Urban Develop- ties containing 10,8I5 apartments (comprised ment (HUD) and the Federal National Mort- of 10, 109 senior,255 disabled and 451 family gage Association (Fannie Mae). units),455 assisted living units and 958 skilled •:•Rio Vista (Los Angeles) was opened and is nursing beds,in 23 states,Puerto Rico and the being dedicated March 1, 1997. It is a 75- Virgin Islands. Of these,8,814 apartments, apartment tax-credit affordable family facility, 170 assisted living units and 212 skilled nurs- and one of the first in the nation to utilize ing beds are in 114 affordable (often federally AFL-CIO pension funds. Other sources of subsidized)buildings and 2,001 apartments, financing were the Los Angeles Community 285 assisted living units and 746 skilled nurs- Redevelopment Agency and the Angelus ing beds are in market-rate sites. Of these 129 Trust Funds. Our cosponsor is LANDCO. facilities, nine with a total of 816 apartments -:•We began construction on Cardosa Village are managed for other owners, many of in Sacramento,a 21-unit HUD 811 facility 1985'" ' K Stephen j. Margetic designed for chronically mentally ill.persons ers'Compensation insurance experience. with families. Our cosponsor is Transitional ❖The Strategic Plan was reviewed and up- Living Community Support. dated. 4-We acquired three facilities under the HUD -.**We continued to work with the Conferences Preservation Program in February of 1997: of the United Church of Christ (UCC),Coun- Havenwood Apartments and St.James Apart- cil for Health and Human Service Ministries ments in Los Angeles and Granada Gardens (CHHSM),and ecumenically with other in Granada Hills--a total of 324 apartments churches, as well as cities, counties, states, for families added to our affordable inventory. redevelopment and housing agencies, the -.*-We received HUD 202 awards for a 50-unit National Affordable Housing Trust,and senior facility in Indianapolis, Indiana, and 80 service and provider organizations such as senior units in Houston, Texas. the American Association of Homes and ❖A major refinancing of Bishop's Glen (Holly Services for the Aging (AAHSA),California Hill, FL.) was completed with favorable rates Association of Homes and Services for the and terms. Aging (CAHSA),and other state associations, ❖Raymond East joined the RHF Board of the Affordable Housing Management Asso- Directors, and Caroline East became part of ciation (AHMA), and the National Multi- the Advisory Commission. Housing Council/American Seniors Housing °:•Work began on establishing the RHF Foun- Association (NMHC/AHSA). dation as a supporting organization to en- ❖Dr.Joseph continued to serve on the Board hance our fund-raising and deferred-giving of AAHSA; was appointed to the Board of activities. AAHSA's subsidiary, the HSA Co-op Inc.; •:•Volunteers of America joined National again chaired AAHSA's Housing Committee Church Residences (NCR) and RHF in the and testified before the U.S. House of Repre- National Affordable Housing Trust, thus sentatives' Housing and Community Oppor- bringing together three major nonprofit pro- tunity Subcommittee; continued to serve on viders of shelter and service. RHF and NCR the Board of CAHSA and the CHHSM Board founded the Trust in 1986. and Stewardship Directorate. Jasmine -.*-We had another year of strong financial Borrego, Southern California regional man- performance in our facilities and at corporate. ager,is also a member of the CAHSA Board. •:°We continued our trend of improving Work- Service in these organizations affords RHF Frances Luscier, manager of Towne Creek Apartments in McKinney, Texas, serves a i cream puff to Assistant Police e _ Chief Ray Simmons at an open _ house marking RHF's 35th. Mayor John Day proclaimed January 27 RHF Day in McKinney. (Photo courtesy Ryan Holohan, McKinney ,� • Courier-Gazette) r r _ r . _ w the opportunity to be in the forefront of poli- We invite you to join the RHF ties and legislation of vital interest to resi- Celebration of Life with your volunteer dents and projects.. hours, your financial support and your -*.-Stuart Hartman,assistant director of man- agement,was elected to the Board of the prayers. Southern California AHMA. A few of the major items we anticipate for the next 12 months include: ♦ Opening and dedication of Cardosa Village in Sacramento. *Completing the transfer of Angelus Plaza to a nonprofit controlled by RHF *Construction starts on the Missions Build- Rev. Laverne R.Joseph, D.D. ing (Indianapolis),Angelus Plaza East (Los President and Chief Executive Officer Angeles), Mann Village (Indianapolis),Creek- bend (Houston), Westwood Manor (Grafton, North Dakota)and possibly several others. *Expansion of the continuum of services at several of our market-rate facilities. *Entrance into the managed care arena in --a markets we currently serve. *Continuing improvements to corporate and Stephen J. Margetic facility management information systems. Senior Vice President, Chief Operating *Another year of strong operational and Officer and Chief Financial Officer financial performance and,above all,contin- ued efforts to enhance the quality of life for those we serve. V t axweU (Mac) and Onalee Cleland renewed their wedding vows in June 1996 with five other couples who had been married from six months to 65 years and live at Courtenay -' Springs Village on Merritt Island in - Florida. The Clelands celebrated A - fifty years of marriage on May 291 - 1991.They met by chance at a dance in Onalee's hometown, Onaway, Michigan, and they didn't meet °4 again for two years. At that second _ y meeting,Mac says he didn't let her ` s f et away. They feel very fortunate that they were able to make Courtenay Springs Village their - g l �,. Y f •: i home because of the friendliness of the residents and staff. They also value the levels of care offered— residential, assisted living and .Fr ,.:• :i; '. �:, t r : _ ` .. skilled nursing care. They maintain tom.: _' , `' �' •�; an active lifestyle,serving as officers �; •� -"�`. �, on the Resident Council, playin' g golf, and traveling. Mac says he plays a "mean hand of poker".They .. are proud of their three daughters and three grandchildren, but make special mention of their daughter, Elaine, an attorney for the Justice Department who flew aboard Air; ' :f Force One when Jimmy Carter teas President.President Carter made the a �� plane available to Ted Kennedy,who was campaigning for the presidency;' and Elaine was volunteering as his appointment secretary. $ MHE o P AtE Being The Best 3s 19';;` .; etirement Housing Foun- dation's 35th year is now history. It was a joyous year marked by celebrations and special events at our facilities, which were attended by residents, staff, friends and .y = representatives from federal, state and Y local governments. It was a year in which we heard kind words about RHF as an organization which is fulfilling needs of Jean Moore Warrick the elderly, persons with disabilities and Chairperson, Board of Directors low-income families. retired director At the present time, Retirement Hous- of emergency planning ing Foundation has 129 communities Atlantic Richfield Company across the country. We are the largest Carlsbad,California nonprofit provider of homes for low- income elderly in the United States. But being the biggest is not what we are about--being the best is our goal! We are striving to provide the safest, friendli- est, most comfortable and most spiritually renewing communities in which our residents can live. V � . Rex Chapman jean Dremstedt Director 5 Director retired personnel director member of several Procter&Gamble nonprofit boards Company of directors Sacramento,California Evansville,Indiana We face constant challenges:' references to cost reduction, for example, ever-changing gov- return on investment, and ernment regulations, the search enhancement of shareholder for capital for new projects to value. Is that what our busi- replace threatened government ness is about? funding programs, reductions in I somehow felt that I was in government programs that sup +_' ' the wrong meeting until one port many of our residents, and brave soul stood up and spoke uncertainties in marketing new, gently about a factor central to and existing projects. These and RHF but often overlooked by other challenges have been met many for-profit corporations -- with innovation and determina- quality of life for our residents. tion by past and present manage- Raymond E. East His remarks caused a de- ment and staff. VVe are confident Director gree of consternation among that these challenges will be seniorgraphics many of those present, but met successfully in the future. engineer, WRC-TV they were Iike a breath of fresh Recently,I attended a three- Washington air to me. Obviously, all com- day conference of providers of . District of Columbia panies must cover their costs housing for the elderly. Most of and, in the case of for-profit the attendees were representatives companies, make a profit. But of for-profit corporations. It vas there is more involved than disheartening to hear constant `' that in our business. Torn S.Masuda Donald W. King Director Vice-Clzairperson �.� f!r real estate appraiser founder vice president Don King Reporters .' 4r �' �`.' =,1 .r�.. Yuri Incorporated �, Sacramento,California :' I "' Gardena, California William E. Rader,Ph. D. Director Christina Pofter retired microbiologist Director Shell Development real estate developer :" Biological Sciences Lyndonville, Vermont Modesto,California 'I somehow felt was in the wrong. meeting until one brave soul stood-up. and spoke gently about a factor central to kAF but often overlooked-by many or- ro it co orations qUqlity of lie 4t for our residents. ' So much of being the best depends on Our motto is: our staff. They have the vital day-to-day Committed to Service contact with our residents. We are proud Dedicated to Excellence of our employees and we commend them Entrancing Quality of Life for the fine job that they are doing. About a year ago, we asked our staff to How could it be said any better! come up with a motto for Retirement Housing Foundation. In an indirect way we were asking them what they felt was most important in their jobs. The many Jean Moore Warrick responses we received, without exception, included reference to making our facilities Chairperson, Board of Directors the best that they can be. Merrill D. Whittier Treasurer John E. Trnka, D. Min. A' retired computer Vice-Chairperson prograrnnrer retired United Church ' ;- California Departrrrent of Christ clergy �`-, of Social Welfare Evansville,Indiana Sacramento,California V eorge Vieria has been afflicted for more than 30 years with cerebellar deterioration, which causes the gradual loss of brain motor skills. He uses a walker with great difficulty, yet his neighbors at Laurel Park Manor in Los Alamitos,California,find him one of the most positive people they "- know. "He's a loving Christian gentleman," says 'Tiny" Prather, the Manor's volunteer activity director. "He's always doing a = favor for someone, and he never forgets a birthday, not just for residents but for their children and . grandchildren." George served in the Navy during the Korean war and worked in the Navy's communication division at the ��; ' ;;� ;.- Y�� -_ ', � •'�, Naval Station on Terminal Island in Long Beach until his illness -'e .Y 'F• .}._., -+s' '-fir: "�` forced him to retire. He enjoys listening to music, attending church functions, reading, ,,/� watching movies, and he Ioves to ` r I& eat. George says hugs and the wonderful residents at Laurel Park keep him going. ;' 3;'t, .+ti i t` . "• ��" ., .'� f _ _ - ,...�-sir aP- - -. ' _ -t• 's .�i�.• .�a� ,�» _•i��• •�;�.�%:n�.$.•: ski V V 1978 Monona Meadows r Pioneer Towers MoMonona,WI C 19651996SacSacramento,nento,CA •EcuEcumenical Housing'Inc. *Pioneer Congregational United Church of Christ Westminster Health *Trinity Cathedra! Care Center Plymouth Tower Episcopal Church Westminster Village Riverside,CA Kentuckiana *First Congregational 1979 Clarksville,IN r Church of Riverside Auburn Ravine Terrace i Auburn,CA 1985 1971 •First Congregational Budlong Manor* O Bixby Knolls Health Care Church of Auburn Lakeview Terrace,CA and Rehabilitation Center Pilgrim Tower East" Charles Major Manor nLong Beach,CA Pasadena,CA Shelbyville,IN Mayflower Gardens 1980 Culver City Rotary Plaza Convalescent Hospital Mayflower Gardens 11 Culver City,CA OLancaster,CA Lancaster,CA *Culver City Rotary Club 1972 : Southpointe Villa* Donald Jordan Sr.Manor Greenfair ABC** Rialto,CA Carden Grove,CA Greenfair DCW** *Garden Grove Sacramento,CA 1981 Community Adult O 1973 Angelus Plaza** Day Care Center Won tenter* Angelus Plaza North— Wong Los Angeles,CA Lake Ella Manor Sacramento,CA Tallahassee,FL 9 147� Crooked Creek Tower Indianapolis,IN Pioneer Manor Greenfair Tower II*' Geneva,NE Sacramento,CA Southdale Tower •First Congregational Pilgrim Tower North" Anderson,IN United Church of Christ *Cosponsor Pasadena,CA 1982 Redding R11F Housing *Third Party The Heartland Butte Home Management Ralston Tower Peoria,IL Cottonwood Home **Syndicated Projects Modesto,CA Redding,CA . *First Christian Church Plymouth Place *Trinity United Presbyterian Stockton,CA Round Ilouse Manor 1965 Church Kaukauna,Wl Mayflower Gardens *St.Paul's Episcopal YelIowwood Terrace *Immanuel United Lancaster,CA Church(MACHCO) Clarksville,IN Church of Christ *Kaukauna 1966 1975 1983 Assembly of God Bixby Knolls Towers Sun City Gardens Diakonia dousing 1 •United Long Beach,CA Sun City,CA Rancho Cordow,CA Methodist Church Diakonia Housing I Pioneer Ilouse 7976 Sacramento,CA The Village Trinity House harbor Tower** Congregational Sacramento,CA San Pedro,CA Marple Manor Community* *Pioneer Congregational *Christian Methodist Modesto,CA Armin,CA United Church of Christ Episcopal Church-Warren *Trinity Cathedral Episcopal Chapel West Valley Tower* 1986 Church *League of United Latin Van Nuys,CA 300 Main American Citizens Estacada,OR 1970 1994 of fousing Opt ions of Plymouth Square MacArthur Park Tower" Gold Country Clackan►us County Stockton,CA Los Atkgel s,CA health Care Center *First Congregational Placerville,CA Anriano Tower Church of Stockton Montrose,CO Longfellow Plaza Anderson,IN Bishop's Glen ® Moll y I fill,FL x Z.. �3.:Yt 5�• '� fta•��F••h�M1e,7•'A.-.{�-5`:•,.`w;�9'i�b.. • •:y0:.: `4 , 10 y..� A• ;:�j1:P..''..I•t,`t.teL��.t::yr.:'.9 a 3 e •i..: Community outreach is an important part of RHF's University Center Vistas mission. In Escalon,California,Escalon HeritageHouse University Van Nuys, CA Methodist Church •Valley Manager Barbara Lynn arranged fora new Brownie Troop Villa at Sacred Heart* Presbyterian Hospital to meet in the 42-unit complex's recreation room. Shelly Indianapolis, IN Bell, director o f Tierra Del Oro Troop 501, encour- 1987 an es ag the residents to attend the meetingsd help the Vista Lee Rosa* Centennial Manor � youngsters with craft projects. Harbor City, CA Boise, ID Carbon Creek Shores Malone Manor Anaheim,CA Lincoln,NE oDayle McIntosh oMalone +. Center for Disabled Community Center The Carolinian Pauahi Kupuna Hale Florence,SC Honolulu,HI Gold Country Pinehurst Apartments Retirement Center Palestine, TX ,,., t Placerville,CA Pinewood Manor Great Plains Housing Bremerton, WA `. ::e� North Platte,NE *Mt. Zion Baptist Church *Great Plains Mentalt+ty'• , :+, :,, Health Center San Jacinto Manor ` San Jacinto, CA LaFontaine Center ,� •= Huntington,IN St. Mary Tower* a "r *Historic Landmarks Long Beach, CA 4 �a Foundation of Indiana Swanholm Nursing Lorna Foster,a resident at Westminster Village Lomita Kiwanis Gardens and Rehabilitation Kentuckiana in Clarksville,Indiana, takes Lomita,CA Center advantage of a beautiful spring day to create *Lomita Kiwanis Club St. Petersburg, FL a watercolor of the outdoor pond. Crooked Creek Tower rest- '' dents in Indianapolis, In- diana, celebrated The Tower's 15th anniversary along with RHF's 35th in July. Michelle Steem- a• Bergen, 8, remains still while Dimples the Clown paints her face and Karen ,? Veach,7,watches. During '_"=•, the ceremonies,1 S original residents were honored. (Photo courtesy Renee DePew, Topic Newspa- pers) ers VAction Housing r • - • _ •Operation Better Block f' j •.• . 1 Capital Court JJ* !� �' +` " Corydon, IN •Hoosier Valley Economic Colonial Heights River City 1989 Opportunity Corporation Florence, KY Residence Club Anaheim Memorial Sacramento, CA Manor Grace Place Courtenay Springs *Transitional Living Anaheim, CA Norfolk, VA Village and Community Support •Anaheim Memorial Merritt Island, FL Hospital La Mirada Vistas 1988 La Mirada, CA Escalon Heritage House Dogwood Apartments Camelot Village Escalon, CA Milledgeville, GA Council Bluffs, IA Lindsay Place •Saron Lutheran Church Lindsay, OK *Escalon Christian The Gateway Casa de Pinos Reformed Church Poway, CA Prescott, AZ Mill Pond Manor •Escalon Saline, MI Presbyterian Church Guadalupe Senior Cimarron Court •Evangelical Homes Apartments Kearney, NE of Michigan Fajardo Elderly Deriver, CO Apartments •Del Norte Neighborhood Gaslight Apartments Pecan Place Fajardo, Puerto Rico Development Corporation Converse, IN Bonham, TX *Kokomo OIC, Inc. Madison Maple City Square Sangnok Villa Heritage Apartments La Porte, IN Lakeview Manor Los Angeles, CA Madison, IN •St. Paul United Storm Lake, IA •Korean American •Madison Church of Christ Christian Evergreen Assn. Presbyterian Church Loess Hills Estates Marymount Manor Glenwood, IA Winslow Manor Mission Palms Tacoma, WA Winslow, AZ Mission, TX *Sisters of St. Dominic Miracle Manor Edna, TX Yorkshire Place Pilgrim Place OIson Rotary Village Gape May, NJ Mason City, IA Delano, CA The Concord •First *Delano Rotary Chub Pasadena, CA I99I Congregational Church Crescent Manor Richardson Manor Villa Nueva Mesquite, TX Prairie Grove Apartments Milwaukee, WI Los Angeles, CA East Prairie, N!O •ti%'AICO Il.andicappif Kemet Clouse •East Prairie housing, Phase 11, Inc. Westover Manor Chesapeake, VA Chamber of Commerce Cedar Rapids, IA Vacaville Autumn Leaves 1990 Laurel Park Manor Redding Pilgrim House Vacaville, CA Bennett Place Los Alamitos, CA Redding, CA *California Grange Pittsburgh, PA St.U,es Park RHF Housing Mesquite Gardens Los Angeles, CA Mesquite, TX Granada Towne Creek Apartments Gardens McKinney, TX RHF Housing Granada Verde View Hills,CA Camp Verde, AZ Rio Vista 1992 Village, Adam and Bruce *LANDCO Apartments Los Angeles,CA Fort Wayne, IN O True Love Missionary (u nder Baptist Church construction) Cardosa New Hampshire Village Apartments Sacramento, CA Los Angeles, CA Stone Creek Village (Proposed) Phoenix, AZ Missions Building _ Valley View Apartments Indianapolis, IN , Manitowoc, WI Hollyvicw Wilshire House Hollywood, CA Santa Monica, CA 1998 1993 (Proposed) Sunny Isle Housing Angelus Centenarian Susie Buckner,a resident of Bennett Place in Pitts- for East for the Elderly Los Angeles, CA burgh,,Pennsylvania,gets into the music at a chair aerobics Christiansted, St. Croix program.Mrs. Buckner attends the sessions daily and eontin- The Virgin Islands Creekbend ues to teach a Sunday School class for 5 through 9 year olds Virginia Park Apartments Apartments at her church A retired nurse, she says hard work and loving Des Moines, IA Houston, TX people keep her young. (Photo courtesy Martha Rial,'Post- hlann Village Gazette) Harry and Jeanette Weinberg Philip Indianapolis, IN Street Elderly Westwood Manor Apartments Grafton, ND lionolulw, 111 1994 Mirna Punta, as- - - Cocalico Place ; Ephrata, PA sistattt project co- r •Bethany United ordinator for the Church of Christ National Associa- tion of Hispanic ? 1996 Elderly, 'explains The Carlin association pro- Arlington, VA grams t0 Angelus Las Casas Apartments" Plaza resident San Gabriel, CA Edwin W. M[- w Brown lot the 1997 Plaza's: annual flavenwood Central City Se- �� RHF (lousing s•�+ � -- '•` t Los Angeles, CA nior Festival in downtown Los Angeles. .—+ - or a few months, centenarian Victor Reid had a memorandum on the bulletin board at The r „ Gateway in Poway, California, "Advertising for a wife."He was teasing, but Administrator Shirley Coyle questions whether or not some of the "younger' 80 and 90 year-olds could keep up with him. "He has a great sense of humor and always cheers everybody w•;: ` F. ''' - l: up. He comes out after dinner when 5: they're(residents)playing the piano and sings for everybody there." Victor always has a smile and an interesting =� yarn. He rode in a covered wagon and ►' ' r.'; served in the now disbanded U.S. Cavalry. He fought in both World Wars and played professional baseball for two years. Later he became a police officer with the LAPD. His 20-year career included a three-day hospital stay after a run-in with prohibitionists who hit him on the head with an unknown object, says his daughter Patricia L,arrick. Her father's philosophy of life is to live one day at a time. "1 like to see what's going to happen next." (Photo Courtesy David Carlson,North County Times,Escondido, California). o1Q Courrtl M L•14..rwt. Financial Statements Consolidated Balance_Sheet Consolioated Statement of Revenues and Expenses as of November 30, 1996 and 1995 for the years ended November 30, 1996 and 1995 (000's omitted) (000's omitted) Variance Assets 1996 1995 More Less Revenues 1996 1995 Current Assets $ 14,937 $ 18,593 $ (3,656) Management Fees $ 7,134 $ 6,943 Long Term Investments 18,248 10,909 7,339 Interest Income 419 1,556 Land,Buildings,Equipment 229 262 (33) Other Income 790 1,053 Other Assets 22,915 25,475 (2,560) Total Revenues 8.343 9,552 Total Assets• $ 56,329 $ 55,239 $ 1,090 Variance Liabilities and Fund Balance 1996 1995 More(Less) Expenses 1996 1995 Current Liabilities $ 3,672 $ 4,494 $ (822) Personnel Related $ 3,383 $ 4,169 Long Term Liabilities 14,198 13,549 649 Development 733 459 Subtotal 17,870 18.043 (173) Contribution to Subsidiary - 10,317 Other Expenses 2,520 4,260 Fund Balance• 38,459 37,196 1,263 Total Expenses 6,636 19,205 Total Liabilities and Fund Balance $ 56,329 $ 55,239 $ 1,090 Net Restricted(Expense)Income (444) 5,399 `Total Assets and Fund Balance include restricted balances of$20,005 and$20,449 in 1996 and 1995,respectively. Net Surplus(Deficit) $ 1,263 $$ The report of our independent accountants is included in their audited financial statements which are available from the RHF Corporate office. Highlights Management Fee Revenue Cash and Cash Equivalents $7,200 $9.000 $7,100 $6,900 7r$7.13. $7.000 $6.800 $6.000 $8•849 $6.700 $5.000 $7.447 $6,600 $6.943 SO CO $6.500$6,400 $3,000 $5,246 ' $6,300 $2,000 $6.200 $6.501 $1,000 $s,1oo $0 ropy,q,ypbl 1996 1995 1994 (OW.-WW) 1996 1995 1994 Personnel Related Expense Total Assets and Days Cash on Hand $56.600 Soo $4,500 aso $4,000 $56.000 �. ago $3.500 •3:1; 350 $55,500 $3,000 s 169 r$132.$54,500 300 $2,500 $4.079 $55.000 250 $2 000 $3.383 200 $1.500 1 $1,000 $54,000 $55,239 100 0 $54,747 50 $500 $53,500 .0 $0 Ippp''o Iael 1996 1995 1994 (oar•o.*W) 1996 1995 1994 C Total Assets -0-Days Cash on Hand Distribution Az 162 Distribution by State / Territory CA 7488 CO 86x.. °:r FL 946 " a GA 40 HI 82 IA 196 10 40 IL 150 IN 1364 KY 173 `:kX MI 48 i " MO 36 NE 116 ps Fa „ NJ 55 OK 30 "" x OR 26 PA 113 Includes number of States within PR 60 each range. SC 145 TX 302 a 300 to 7,610 (4) VA 240 4 ®170 to 300 (4) 'b 110 to 170 (5) VI 56 50 to 110 (4) WA 79 = 'Total RHF Units is 12,228 p 20 to 50 (6) WI 196 Residential Units-Financing Programs Services Provided HUD Insured Housing with Assisted Living Skilled Nursing Tax Credit Angelus Congregate 455 units 958 units HUD Insured/8 729 units 237 units Trust/CRA Services 2206 units 98 units 2,589 units Housing with HUD 811/8 Optional ,� �'=�.` Services 40 units ^` � 1 2,342 units 77 HUD20218 Conventional 4902 units rMs ,, �. � "� ��" 4016 units Housing without Services `Total Units:12,228 'Total Units:12,228 5,884 units Age of Residents Non-Senior Housing Units by Type Non-Senior Chronically Assisted Living Develop Mobility Housing Mentally Ill 455 units Skilled Nursing mentally Impaired 692 units 958 units Disabled 20 units 208 units 27 units 4 R4 'S't 1 >r,: ='4 t k °,mod, "Y $i S,.5 ,, -n a .�i• s s. y.,,t�'Li `xir. a - " , ^r .r - "" Residential- Residential- Family Seniors 437 units `Total Units:12,228 10,123 units 'Total Non-Senior Units:692 a F. '� �►. � MX�.�!<....J '!ti.'�• I 'I w r� w�� � L f ice• • LL]`l�. . + � :r•.ice - �/.►!ti: �l y,,,.i 1I 4•rI, lkY ��`7 + w• , • • s ;f,y.�r�••`•r����w+y;T+t��i rS,�' • :.,A��1��:�'i+1:'• •al:��i�., �;�`r_ It 46 41 ..� _ � '� '�_•.• � 'f �`'' ,';fir � r •'�3 tab • 1' r w r • • •• w.�'Z,,y i ram, � • 'Vw~•'•,�!'._ �1C'1�.5 ~ ••f i C M -.:S �'J' 'M� `••�'R y��� � J'ti i Yvl�•Al,. •• _ • • -• �•�1�'•`?t� i 1',`+�if �Y..� bf'�ir 4�f-s�Si •�r� i��� •n-t��!~�-yL''�' ,,ate � 'a.r--! � t•-�,,.w��y � 1 ,. �.i{ �¢, to P '^�? r �, f *'; �1 - r.. +r '•,.: '/ � ;f d� �' a f• �„ u}P r �, ••�� �� '•a } J ACommon asked to speak at a press con- Once again, to all our generous ference at Angelus Plaza, donors, thank you for helping us Thread --Home pulled the common thread that live up to our motto: Committed to runs through every RHF fall- Service, Dedicated to Excellence, En- ity I visited. Over and over I hancing Quality of Life. W hat a year this has been! Re heard, "We are safe," "We are But most of all, thank you for tirement Housing Founda- ' happy,""We are grateful, "We helping the DREAM TO GO tion is 35 years old and by now that are home." RHF facilities are ON.... momentous fact has been echoed not just buildings. To more from coast to coast, from Hawaii than 14,000 persons across this to the Virgin Islands, and many, country, they are home. many points in between. As this To all of our donors, I would l � time of celebration comes to a like to say thank you once close, I look back and can only again from all of us at Retire- Victor a D. Berman marvel at the experience. ment Housing Foundation. Manager of Fund Development As Manager of Fund Develop- From our very generous 35th ment for RHF, I Anniversary have had the privi- Sponsors to the in- lege of participating dividual heartfelt in many of the anni- gift: Thank you your Will versary activities - :� for believing in held at our facilities. and contributing A bequest through your I think the most pre- to the success of will can significantly aid vailing sense I have our Mission. I Retirement Housing Foun- come away with is ',.. r : would like to ex- dation in its continuing mis- that of endeared tend my personal sion of service to the aging family. I did much Victoria Berman thanks for making of our society. A bequest more than visit facilities to intro- my first year as Manager of may be made in the form of duce myself and RHFs new pro- Fund Development such a re- a stated amount,%of estate, gram of Fund Development to our warding experience. or remainder of estate. residents. I discovered the true : Now the time has come to A bequest provision that essence of the RHF Mission and ' close the scrapbook on Year 35 you may wish to use is: what that Dream 35 years ago was and look forward. As we step "I give,devise and bequeath all about. into 1997, the need for afford- $ (or % of estate) to Re- As I joined in the festivities of able housing for seniors, per- tirement Housing Founda- many of the RHF facilities,I came sons with disabilities and fami- tion, a not-for-profit corpo- to realize that our "facilities" are lies is even greater. This next ration, located in Long not just "bricks and sticks" for the year, much of the effort of Beach, CA." Your bequest purpose of sheltering seniors in Fund Development will be may be restricted by you for our society, but rather, they are channeled into RHFs Deferred a specific facility, usage, or home to many wonderful, gra- Giving Program. Though we RHF fund. (Consult your cious people whom I have had the have had a program for Wills attorney.) privilege to meet. I heard stories and Bequests,1997 will see the Please contact our Fund of full and exciting lives as well addition of other products un- Development Office for in- as the hard and the difficult. I der the Deferred Giving "um- formation about cash,secu- laughed at funny anecdotes and brella." I look forward to this rities, real estate or other mourned sad memories. But, it next exciting and challenging forms of tax-deductible was the residents who, when 'Year- gifts. Robert Amberg, Vice-PreQnf and General Counsel, and Linda Lisfoe, Vice President of Corporate Services and Corporate Secretary 35th Anniversary Sponsors• PLATINUM Sullivan and Curtis,Irvine,CA Sumitomo Bank of California Ziegler Securities,both of Los Angeles SILVER Graybeal&Company,Vienna,VA Joseph Webb Foods,Vista,CA Imperial Bank l Merrill Lynch Union Bank,all of Los Angeles BRONZE Action Painting of Central Florida a Bradenton,FL Alliance Bank,Culver City,CA Corbin& Wertz,Irvine,CA f Reuben&Novicoff,Encino,CA Washington Mortgage Financial Group Vienna,VA Web Service Company,Redondo Beach,CA CA.Light General Contractor Ziner& Company, Inc., Boston,MA Gillette Associates RHF's Advisory Commission,established in 1984,sug- Pymphon ATRON y Pharmacy Services,all of Los Angeles gests, encourages,and assists with the implementation Abigail Abbott,Tustin,CA of projects that enhance the quality of life for RHF resi- D &R Pharmacare,Louisville,KY dents and staff. Buni Rader is chairperson. Pictured (from Left)Rev.Dr.Robert Patter,Virginia Joseph,Lucile Energy and Carol Elliott,Ormond Beach,FL Energy Savers,Inc.,Satellite Beach,FL Whittier,r, Caroline East, Mrs. Rader and William Warrick. Not pictured are Gertrude Chapman, Yuri Interface Rehab,Fullerton,CA Masuda and Shirley Ann Trrrka. J. G.Carpet &Drapery Co.,Van Nuys,CA • l f Depar�.,zt heads(from left) M.J. Lemtre,Director of HUD Accounting;Christopher Dominguez,Director of Management Information Systems;Joanne Silva, Accounts Payable Supervisor,and Nada Battaglia, Human Resources Manager. Not pictured is Gary Thiel, Director of Reimbursement. 5' r Rooftech,Burbank,CA Roto-Rooter,Hemet,CA �' ! Seaside Community Church,Torrance,CA Sedgwick Noble Lowndes,Irvine,CA Accountants Overload Blue Chip Drapery,Inc. Dairy King Milk.Farms,all of Los Angeles Masel Kallenbach,Newburgh,IN,in honor of Rev. Dr. John E. Trnka and Jean Dremstedt; Civitta M. La Affordable Housing and Rocca,Santa Monica,CA;Maria Leban,Pasadena, Resident Benevolence Funds CA;Maria Marimba,Los Angeles,CA;William H. and Elizabeth W.Moncreif,Tallahassee,FL ARCO Foundation, Los Angeles,in recognition of Rev. Dr. and Mrs. Robert Potter, LyndonviIle, VT, the volunteer service of William and jean Moore in memory of John Larson and Ernest Frank; Warrick,Victoria D.Berman,Indianapolis,IN;Gail Kathryn J. Scanland,Encinitas,CA,in memory of Boyle, McLean, VA; Christian Living Campus Rev. Robert 1. Scanland; Rev. Dr. John E. and Foundation,Littleton,CO;Larryand Shirley Coyle, Shirley Ann Trnka, Evansville, 1N, in memory of Escondido,CA John Larson; William and jean Moore Warrick, Jean G.Dremstedt,Evansville,IN,in honorof Chris- Carlsbad,CA , in memory of Herbert Slack;Sally tins Patter and in memory of Christina's father,John Wright,Long Beach,CA,in memory of Carl Kopines Larson;The FHP Foundation,Long Beach,CA;The and Arthur E.Forsberg First Congregational Church of Fullerton, Fuller- Corporate leadership staff(from left) WilliamR.Niehoff, ton, CA; Frances L. Gier, Sun City; CA; Pablito L. Market Rate Operations Director,Sally Wright,Public Plano, La Mirada, CA; Harold A. and Agnes Relations Manager;Richard T. Washington,Director of Moreland Jackson; Pomona, CA; Margaret A. ManagententJDevelopment: Wanda Counts,Manager of Jacoby,Hermosa Beach,CA;Laverne and Virginia Administrative Services, Executive Secretary and As- Joseph, Long Beach, CA, in memory of Carl sistant Corporate Secretary;Charlotte Newcomb,Assis- Kopines,Arthur E.Forsberg and John Larson taut Controller,Stuart Hartman,Assistant Director of Mark Kadzielski, Los Angeles, CA; Melvin and Management;and Scott Fredrickson,Controller. ROW JA' .v„r 3`.4/':r ��• 4 a!i 4;J.,j`,.�•; .w. its % - ♦.'¢^ r } 1 „ Y • { RETIREMENT HOUSING FOUNDATION Corporate Information E ' Officers Jean Moore Warrick,chairperson North Central Office John E.Thnka,D.Min.,vice-chairperson 2809 Jack Pine Street Donald W.lying,vice-chairperson Bellevue,Nebraska 68123-5512 Laverne Ili Joseph,D.D.,president and CEO (402)292-8969 o FAX(402)292-2039 Merrill De Whittier,treasurer ]Linda Listoe,corporate secretary Northwest Offflce Wanda Counts,assistant secretary 331 'J"Street, Suite 150 Corporate Office Sacramento, California 95814-2214 5150 East Pacific Coast Highway,Suite 600 (916)558-4840 FAX(916)558-4843 Long Beach, California 90804-3312 (562)597-5541 o FAX(562)597-6641 Southwest Office - 2967 Meadowlark Drive Fund Development Office Prescott Valley,Arizona 86314-2256 5144 Crittenden Avenue (520)772-5070 o FAX(520)772-4121 Indianapolis,Indiana 46205 (317)257-3063 a FAX(317)257-3068 Independent Auditors CORBIN&WERTZ Midwest Office Certified Public Accountants 6515 East 82nd Street, Suite 202 2603 Main Street, Suite 600 Indianapolis,Indiana 46250-1978 Irvine, California 92614 (317)577-1971 o FAX(317)577-1978 (714)756-2120 o FAX(714)756-9110 U V HUD Section 202 NOFA ATTAC MENT #4 V Tuesday E 6May 27, 1997 Part 11 Department of Housing and urban Development Supportive Housing for the Elderly; Funding Availability--FY 1997; Notice Nq— ri 28762 Federal Register/ Vol. 62, No. 101 / Tuesday, May 27 997 / Notices DEPARTMENT OF HOUSING AND request,will provide the applicant with In accordance with the waiver authority URBAN DEVELOPMENT an acknowledgement of receipt. provided In the Ad,the Secretary is r FoA FURTHER 04FORMATION CONTACT:The waiving the following statutory and (Docket No.FR-4202-N-011 HUD office for your jurisdiction,as regulatory provision:The term of the listed in Appendix B to this NOFA. project rental assistance contract Is Notice of Funding Availability(NOFA) SUPPLEMENTARY INFONUTION• reduced From 20 years to a minimum for Supportive Housing for Ow Elderly term of 5 years and a maximum term L Purpose and Substantive Description which can be supported by Funds AGENCY:Office of the Assistant authorized by the Act.HUD anticipates Secretary for Housing-Federal Housing A.Authority that at the end of the contract terms. Commissioner,HUD. The Supportive Housing for the renewals will be approved subject to the ACTION:Notice of funding availability Elderly program,or the Section 202 availability of funds.in addition to this (NOFA)for Fiscal Year(FY)1997. program•is authorized by section 202 of provision.HUD will reserve project the Housing Act of 1959(12 U.S.C. rental assistance contract funds based SUMMARY:This NOFA aanounces HUD's 1701q).Section 202 was amended by on 75 percent rather than on 100 • funding for supportive housing for the section 801 of the Cranston-Gonzalez percent of the current operating cost elderly.This NOFA describes the National Affordable Housing Act standards for approved units in order to following:(a)the purpose of the NOFA. (NAHA)(Pub.L 101--625;approved take into account the average tenant and information regarding eligibility. November 28.1990).Section 202 was contribution toward rent. submission requirements,available also amended by the Housing and in accordance with an agreement amounts,and selection criteria,•and N ° Community Development Act of 1992 between HUD and the Rural Housing application processing,including how (HCD Act of 2992)(Pub.L 102-550; Service(RHS)to coordinate the to apply and how selections will be approved October Za.1992),and by administration of the agencies' made. Public Law 104-18,evaded tm July 21. respective rental assistance programs. APP=TiON PACKAGE:The Application 1995.Under the Section 202 program. HUD is required to notify RHS of Package can be obtained from the the Secretary is authorized to provide applications for housing assistance it Multifamily Housing Clearinghouse, assistance to private nonprofit receives.This notification gives RHS the P.O.Box 6424.Rockville,MD 20850; organizations and nonprofit consumer opportunity to comment if it has telephone 1-800-685-8470(the TTY �pemU�to expand the syppip of concerns about the demand for number is 2-800-483-2209).hem the supportive housing for the elderly.HUD additional assisted housing and possible appropriate HUD office Identified In provides the assistance as capital harm to e-xisting projects in the same Appendix B to this NOFA and also advances and contracts for ptojed rental housing market area.HUD will consider appears under the HUD Homepage on assistance in accordance with 24 CM the RHS comments In its review and the Internet which can be accessed art e(31L.This assistance may be used to project selection process. •• ance the construction or under Development' at http:l/ B.Promoting Cvmprehenslvt wwwhud.govflhallhamf.html.The rehabilitation of a structure,or Approaches to Housing and Community Application Package includes a a ulsition of a structure from the checklist of exhibits and steps Involved Federal Deposit Insurance Corporation pevelopmeni in the application process. (formerly held by the Resolution Trust HUD is interested in promoting PATES:The deadline for receipt of Corporation)(FDiClRTCh to be used as comprehensive,coordinated approaches applications is response to this NOFA supportive housing for the elderly in to housing and community Is 4 p.m.local time on July this 1997. accordance with part 891. development.Economic development, The application t deadline is firm 9 . Note that on March 22.10%.HUD community development,public dote aid hour.In the interest of fairness published a Seal rule(61 FR 11948)that housing revitalization.homeownership. d all a hour.I HUD will not consider consolidated the regulations for the assisted housing for special needs p Section 202 Program of Supportive populations,supportive services.and any app 'ration that is received after the Housing for the Elderly and the Section welfare-to-work Initiatives can work deadline.Sponsors should take this Into 811 Program of Supportive Housing for better if linked at the local level. account and submit applications as persons with Disabilities In 24 CFR part Toward this and,HUD In recent years early as possible to avoid the risk of $91. has developed the Consolidated unanticipated delays or delivery-related For supportive housing for the Planning process designed to help problems.In particular,Sponsors elderly,the Departments of Veterans communities undertake such Intending to mail applications must Affairs and Housing and Urban approaches. provide sufficient time to permit Development.and independent pin this spirit,it may be helpful for delivery an or before the deadline date. Agencies Appropriations Act,1997 applicants under this NOFA to be aware Acceptance by a post office or private (pub.L 104-204;approved September of other related NOFAs that HUD has maf ler does not constitute delivery. 26.1996)(the Act)provides recently published or expects to publish HUD will not accept facsimile(fax), 3645,000.000 for capital advances, in the near future.By reviewing these COD.and postage due applications. including amendments to capital NOFAs with respect to their program ADDREWES:Applications must be advance contracts(not procurement purposes and the eligibility of delivered to the Director of the contracts),for housing for the elderly as applicants and activities,applicants Multifamily Housing Division in the authorized by section 202 of the may be able to relate the activities HUD office for your jurisdiction.A Housing Act of 1959(as amended by the proposed for funding under this NOFA listing of HUD offices,their addresses, NAHA and HCD Act of 1992).and for to the recent and upcoming NOFAs and and telephone numbers,including TIT project rental assistance,and to the community's Consolidated Plan. numbers is attached as Appendix 6 to amendments to contracts for project On April 8.1997.HUD published in this NOFA.HUD will date and time rental assistance,for supportive housing the Federal Register the NOFA for stamp incoming applications to for the elderly under section 202(c)(2)of Continuum of Care Assistance_On April evidence timely receipt,and,upon the Housing Act of 1959.as amended. 10.1997.HUD published the NOFA for Federal RJaJer / Vol. 62, No. 101 1 Tuesday, MayV. 1997 / Notices 28763 Rental Assistance for Persons with lnofAmbtml.HUD may consider feasible projects in both metropolitan Disabilities in Support of Designated additional steps on NOFA coordination and nonmetropolitan areas.the funds Housing Allocation Plans,and the for FY 1998. may be allocated to only one of the NOFA for Mainstream Housing For help in obtaining a copy of your geographical areas. Opportunities for Persona with community's Consolidated Plan,please The capital advance amount available Disabilities.On April 18,1997.HUD ; contact the community development to the Wisconsin State HUD Office,as published the NOFA for the Family office of your municipal government. stated below in this NOFA,may be Unification Program.On May 7a 1997. C,AUocat/on Amounts reduced or eliminated due to ongoing HUD published the NOFA for Housing In accordance with 24 CFR part 791. legal proceedings between HUD and the Opportunities for Persons with AIDS. the Assistant Secretary will allocate the City of Milwaukee.The determination Other related suede] amounts available for capital advances of whether to reduce or eliminate those population programs ograms innclude the NOFA for supportive housing for the elderly. funds Is entirely within the discretion of for the Section Program of HUD reserves project rental assistance HUD.If HUD takes such action or Supportive Housing for Persons with; funds based upon 75 percent of the actions.it will publish a notice to that Disabilities.which is published current operating cost standards to effect in the Federal Register. elsewhere in today's Federal Register support units selected for capital and the NOFA for Service Coordinator P> As a result of a rating error in the Funds which HUD expects to publish advances sufficient for minimum 5-year As State Office,the Pm rental assistance���• application of the Rural Housing within the next few weeks. .�°� PP �g e allocation formula for Section Improvements was not selected and To foster comprehensive,coordinated 202 funds consists of a measure of the funded under the Fiscal Year 1996 approaches by communities.HUD number of one-and two-person elderly Supportive Housing for the Elderly intends for the remainder of FY 1997 to renter households with incomes at or continue to alert applicants to upcoming below the very low income limit(50 Program.Since thin was a HUD error. and recent NOFAs as each NOFA is percent of area median family income, that application Year199 will ca funded from the published.In addition,a complete as determined by HUD,with to Fiscal Year its S allocation to the schedule of NOf As to be published adjustment for household size)that have sa�usetts State Office. during the fiscal year and those already housing deficiencies based an data from Based on the allocation formula.HUD published appears under the HUD the 19W Census. bar,allocated the available capital Homepage on the Internet,which can be Since the allocations to some HUD advance funds as shown on the accessed at httpJ/www.bud.pv/ offices are not sufficient to develop following chart: FISCAL YEAR 1997 ALLOCATIONS FOR SUPPORTIVE HOUSING FOR THE ELDERLY—FISCAL YEAR 1997 SECTnN 202 ALLOCATIONS Metropolitan capital ad-1 NonrnatropoGlan Cap- Totals Offices vance nal advance Capital advsnm Authority Un to Authority Units AutN ft Urft New En&rxt Massachuseet a ._..........».._.:_ .._»»»..». $13,224,738 163 $1.452.400 18 $14,677.136 181 ConrrecftA ...._........».....«.._» «:........»»....«.... 5,330.691 66 2.028.960 25 7.359.651 91 New Ftampat re ....»......«... ..._...« 2,901.442 45 2.113.447 32 5.014JM 77 Rhode Island«........._.»._... ............_»...........»»»«_..«�...»»» 4,535,046 56 0 0 4,535.048 66 Total .....»»».._.»........ _....» ' »».»..»«»..,»..»...«..«.. 25.991.917 330 5.594.807 75 31,586.724 405 New YorkJNew Jersey: New York .»»«....».....�...»...._.� .. «_-.....»»......«» 38.524.740 475 723.054 9 39247.794 484 Buffalo -- ».„.„...._:... .__ 9.968.925 1132 1,911,935 25 11r878.860 157 New Jersey »»...»......._..................« .»»....... __....» 16.004,754 197 0 0 16,004,754 197 Total .......__.............._..,.»»..._..YI..............__..»».»»..__» 64.496,419 &M 2.634.989 34 67.131,408 &M Mid-Adantia, ..�. Maryland 4,992253 72 680. 58 10 5,673.111 82 west Virpirra............».............. _ „»»»....... .1,265,008 20 1.048.721 16 2,333.729 36 Pennsylvania.....»...........».........__ »«»..._.__»»««_..._»_ 12.788228 166 1,555.444 20 14.343.672 156 Pftburgh ;5.773.367 85 1.178.624 17 6.951,991 102 V#1* a — .................. «_»....__.______....... 13.949284 68 1,319.703 23 5.M,987 91 D.0 ..»»«..........»»...»..»» ....»_ ___._»....._._.__._.«... i 5,258,701 73 0 0 5258.701 73 Total ».„,.»._..........»_.,.» »I _»«..�».»_.»...».»_..._ 34.046.841 484 5,783,350 86 39.11M.191 570 SoLevasvCaftbea George ...._.....»..»i..... ~,...».....»».._»..»._..»_»_ 4.548.592 77 2.015,141 34 6.563.733 111 Alabama ._..»�»....«».........__._»_.�.:»....»......»»......._.......»__ 3 359,260 59 I M.968 24 4,740228 83 Caribbean _....,..«...»...».»».».»:».. _»_—_». 3.320,946 41 1.138.410 14 4,459.356 55 ...r..»................__ South Carolina ..................�__.._........».................___.._»... 2.98 SU 48 1,088.659 17 4,078.193 65 North Comma_.�.._�...._..«......._....».........».-......._......„.».., 5.80,649 80 2.695.611 36 8.585.460 116 M"ss'ippi......_.._«__._..._......«...._._.......»......._...»»..»»».« 1.088,875 20 1.572.105 29 2.660,980 49 Jacksonville....._»..........»..».».».__ ....._... ......_..»»............ 14.5M.826 232 911.639 15 15,415.457 247 Kentucky ....»»......»».»»....,.».».»._............._».....».»««««».»«... 3,135284 50 1,662AW 27 4,797A34 77 28764 Federal RegisterUol. 62, No. 101 I Tuesday, May 27, ILd 1 Notices FtscAt_YEAFt 1997 AtiocAnoNs FOR SUPPORTtvE HMSM FOR THE ELDERLY—FISCAL YEAF1 1997 SEMON 202 Au ocATIONS -Continued � ad N Bat Cap� otats Offroes d advance Authority Unks Authority Units Awhority Units Knoxville_ .... 2.098.457 38 M.016 11 2.724.473 49 Tennessee _... » 2.828,198 50 1226A99 22 4.055.197 72 Total 43.762.823 895 14.317.898 229 58.OW.721 924 Midwest: Illinois ._,..,» _.»»... 17',W 81 216 2.572.490 32 20,133,071 248 Cincky ati 4,060= 65 312,796 5 4.373 681 70 Cleveland 7.530.815 107 996.071 14 8.526,888 121 Ohio -............. ..»......»»».....»»...r. 2,871.557 46 1,240.M 20 4,121.153 66 1n....... ..........»........� 8.111211 113 358.450 5 8,489,681 118 Grand Rapids 2.756.2M 45 1,088,645 18 3A",941 63 k1diam 5=.918 81 1A66,433 23 8,726251 104 , Wisconsin 6.059.408 85 2.117',599 30 8,177.007 115 Lfinnesota 6,010.6n $0 i.685.724 221 7.676,309 102 Total 60221248 838 11=7,808 189 72.049,064 1.007 Sotatwrest: TaxasMew Mexico 5.861.192 101 1,785.910 30 7.627,102 131 Houston 3.787= 65 685A13 12 4.472,936 T7 Aricaroas ».. 1,882.145 37 1,346,577 26 3.228,722 63 Loulsiane 3.706.951 66 8935%5 16 4,602,516 82 Oklahoma...» ,...._....._..._..___......,......_ ._.._......_..... 2.450.407 44 11155,160 21 3.605.567 65 San Antonio 3,727A75 601 0 01 3.727.8T5 09 Total 21.418.493 382 5,848225 105 2704.718 487 Great Ptains: Iowa r._..___.�»....._......_........._._...._.. 2,356.158 40 1.487A26 25 3.843,584 65 Kardas/Missouri». 3818,889 63 1,590.400 27 5,40%M 90 Nebraska,.»....„»._.»...._.............»».............-...».....»»._...... 1,445AU 25 570,579 10 2.016.213 35 St.Louis ---------- 4210.550 60 1,381,817 20 5.592.167 80 Total 11,831.031 1W 5,030222 82 16,861253 270 Rocky Mountains:Colorado.._.............»»............_..»_...».._.... 5236,189 81 2274.376 38 7,510.565 119 total ------ 5236,189 81 2274,376 38 7.510.565 119 Pacific/Hawail: Hawaii(Guam) ».„..,....„.,........._..„.........».._...»... 2.434,752 20 606,6W 5 3.043.440 25 Los Angeles ..............»....»„......„.._..........._..„._........_ 27.990,373 351 399.029 5 28,389.402 356 Arizona ___.».__.»_ _.....».....»..............»..»..___.._. 3,499,T78 61 5W.752 10 4.053,540 71 Sac arnento»_..».„..._..... _..»....»........_.»»».._....»._ 4.766253 60 829.814 10 5.596XT 70 caktomia......... --------------- . .. ...........». 15.624,582 196 MA75 •12 16.565257 208 Total ».» ._...............__..__»......._....»...._»»....._..........».... 54.315.738 688 3.331,968 42 57,647.706 730 Nodhwest(Alaska: Alaska 2.434.752 20 606" 5 3.043.440 25 Oregon ._..»...._»»._»»._...„...,__....__.»,........».. ...» 4,152210 60 1,558.795 23 5.711.005 83 Washygton �..._._..._.... ........._.„... .._..._.._....__ ...._.»... 5.909,649 8o 1,195.392 18 7.105,041 96 Total 12,496,811 160 3,352,875 44 15.859.486 204 Nations!Total .....,...__......__....__......._.._. _.._...........». 333.817.310 4,650 60.004,516 gat 393.821,626 5.554 'This amount includes Capital Advance Authority of S2.120.9W to fund Rural Housing Improvements, Bolton.Massachusetts.Since this 26- unit project was not selected in Fiscal Year 1996 by HUD error,this application will be funded horn Me Fiscal Year 1997 allocation to the Massa- chusetts State HUD Office. A Eligibility instrutnentality of a public body is single geographical region in this fiscal Private nonprofit organizations and eligible to participate in the program. year in excess of that necessary to nonprofit consumer cooperatives are the No organizAtion shall participate as finance the construction.rehabilitation. only eligible applicants under this Sponsor or Co-sponsor in the filing of or acquisition(acquisition permitted program.Neither a public body nor an application(s)for a capital advance in a only with FDICJRTC properties)of 200 Federal Regis er / Vol. 62. No. 101 / Tuesday, May 2 . 1997 ! Notices. 28765 units of housing and related facilities for environmental review In accordance Upon cempletion of technical the elderly.This limit shall apply to with 24 CFR part 50. processing,all aceeptable'applications organizations that participate as Co- Technical processing will also assure will be rated according to the selection sponsors regardless of whether the Co• that the Sponsor has complied with the criteria in section I.E.3.of this NOFA. sponsors are affiliated or nonaffiliated requirements In the civil rights below.Applications submitted in entities.In addition,the national limit certification In the Application Package. response to the advertised metropolitan for any one applicant is 10 percent or There must not Have been an allocations or nonmetropolitan the total units allocated in all HUD adjudication of a civil rights violation in allocations that have a total base score offices.Affiliated entities that submit a civil action brought against the (without the addition of bonus points) separate applications shall be deemed to Sponsor,unless the Sponsor is ' of 60 points or more will be eligible for be a single entity for the purposes of operating in compliance with a court selection.and HUD will place them in these limits.No single application may order,or implementing a HUD-approved rank order per metropolitan or propose more than the number of units compliance agreement designed to nonmetropolitan allocation.After allocated to a HUD office or 125 units, correct the areas of noncompliance. adding any bonus points,HUD will whichever is less.Reservations for There must be no pending civil rights select these applications based on rank projects will not be approved for less suits against the Sponsor instituted by order,up to and including the last than 5 units. the Department of Justice,and tso application that can be funded out of E.Initial Screening,Technical pending administrative actions for civil each of the local HUD offiee's Processing,and Selection 0iteria rests violations instituted by HUD metropolitan or nonmetropolitan (including a charge of discrimination allocations.HUD offices shall not skip 1.Wtial Screening under the Fair Housing Act).There must over any applications in order to soled HUD will review applications for be no outstanding findings of one based on the funds remaining. Section 202 capital advances that are noncompliance with civil rights However,after making the initial received by HUD at the appropriate statutes,Executive Orders,or selections in each allocation area,any address by 4 p.m.local time on July 28, regulations,as a result of formal residual funds may be used to fund the 1997,to determine if all parts of the administwive proceedings,nor any next rank-ordered application by application are included.HUD will not charges issued by the Secretary against reducing the number of units by no review the content of the application as the Sponsor under the Fair Housing Ad, more than 10 percent rounded to the part of initial screening.HUD will send unless the Sponsor is operating under a nearest whole not render the provided the deficiency letters b certified avail. conciliation or compliance agreement project y desl ed to correct the areas of infeasible.For this purpose.however. informing Sponsors of any missing ports �of the application.Sponsors must noncompliance.Moreover.there must HUD will not reduce the number of nits in projects o[nine units or less. correct such deficiencies within 8 not be a deferral of the processing of units this of has been calendar days from the date of the applications from the Sponsor imposed completed,HUD offices may combine deficiency letter.Any document by HUD under title VI of the Civil Rights their unused metropolitan and nested as a result of the initial Act of 1964,HUD's implementing 1eq nonmetropolitan funds in order to select screening may be executed or prepared regulations(24 CFR 1.8),procedures the next ranked application in either within the deficiency period,except for (HUD Handbook 8040.1).and the category,using the unit reduction policy Forms HUD-92015-CAs,Articles of Attorney Generals Guidelines(28 CFR described above,if necessary. Incorporation,IRS exemption rulings. 50.31.or under section 504 of the Funds remaining after these processes Forms SF-424,Board Resolution Rehabilitation Act of 1973 and HUD's are completed will be returned to committing the minimum capital implementing regulations(24 CFR 8.57), Headquarters.These funds will be used investment,and site control documents and the Americans with Disabilities Act. first to restore units to projects reduced (all of these excepted items must be Examples of reasons for technical by HUD offices as a result of the dated no later than the application processing rejection include an instructions above and.second,for deadline date). Ineligible Sponsor or population to be selecting applications on a national rank served,project will have adverse impact order.No more than one application 2.Technical Processing on existing HUD-insured or assisted pp 8 will be selected per HUD office from the All applications will be placed in housing,lack of legal capacity,lack of national residual amount.however, technical processing upon receipt of the site control,outstanding or pending unless there are-insufficient approvable response to the deficiency letter or at civil rights findings/violations, applications In other HUD offices.If the end of the 8-day period.These Insufficient need,and unacceptable site funds still remain,additional applications will undergo a complete based upon a site visit.The Secretary applications will be selected based on a analysis based upon the information will not reject an application based on national rank order,insuring an submitted in the application.Including sechnical processing without giving equitable distribution among HUD that submitted in response to the notice of that rejection with all rejection offices. deficiency letter.If a reviewer finds that reasons,and affording the applicant an clarification of information submitted in opportunity to appeal.HUD will afford 3.Selection Criteria(Base Points) the application Is needed to complete an applicant 10 calendar days from the HUD will rate applications for Section the review,or an exhibit is missing that date of HUD's written notice to appeal 202 capital advances that successfully was not requested after initial screening. a technical rejection to the HUD office. complete technical processing using the the reviewer shall immediately advise The HUD office must respond within 5 selection criteria set forth below.and the Multifamily Housing Representative, working days to the Sponsor.The HUD the guidelines set forth in Appendix A who will:(a)request,by telephone,that office shall make a determination on an to this NOFA- the Sponsor submit the information appeal prior to making its selection (a)The Sponsor's ability to develop within 5 working days;and(b)follow recommendations.All applications will and operate the proposed housing on a up by certified letter.As part of this be either rated or technically rejected at long-term basis,considering the analysis,HUD will conduct its the end of technical processing. following(52 points maximum): � I 28766 Federal RegisteW Vol. 62. No. 101 I Tuesday, May 27. 1 Notices (2)The scope,extent,and quality of with site and neighborhood standards date and time Is extended by a notice the Sponsor's experience in providing (10 points):and published in the Federal Register.HUD housing or related services to those (3)Suitability of the site from the will not accept applications received proposed to be served by the project, standpoints of promoting a greater after the deadline date and time,even if and the scope of the proposed project choice of housing opportunities for postmarked by the deadline date. (i.e.,number of units,services. minority elderly persondfamilies.and Applications suhmitted by facsimile are relocation coats,development.and affirmatively furthering fair housing(10 not acceptable. operation)in relationship to the points). Sponsor's demonstrated development (c)Adequacy of the provision of ediately upon publication of this and management capacity,as well as its supportive services and of the proposed NOFA,if HUD offices have not already financial management capability(30 facility.considering the following(20 provided names to the Multifamily points); points maximum): Housing Clearinghouse.the offices shall (2)The scope.extent.and quality of (1)The extent to which the proposed notify elderly and minority media.all the Sponsors experience in providing design will meet the special physical persons and organizations on their housing or related services to minority needs of elderly persons(3 points): mailing lists,minority and other persons or families(10 points).For (2)The extent to which the proposed organizations within their jurisdiction purposes of this NOFA."minority" size and unit miz of the housing will involved in housing and community means the basic racial and ethnic enable the Sponsor to man4ge and development.and groups with special categories for Federal statistics and operate the housing efficiently and interest in housing for elderly ' administrative reporting,as defined in ensure that the provision of supportive households. OMB's Statistical and Policy Directive services will be accomplished in an Organizations interested In applying No.13.(See 60 FR 44673.44692:August economical fashion(4points):28.1995.); (3)The extent to which the pro for a Section 202 capital advance should p (3)The extent of local government design of the housing will accommodate contact the Multifamily Housing su for the project(5 pointah the provision of supportive services that Clearinghouse at 1-800-US-8470(the (4)T e extent of the Sponsor's are expected to be needed.initially and Tl'Y number is 1-800-183-2209)for a activities in the community.including over the useful We of the housing.by copy of the application package.and previous experience in serving the area the category or categories of elderly advise the HUD office whether they where the project is to be located.and �s the housing is intended to serve wish to attend the workshop described the Sponsor's demonstrated ability to [3 mts); below.HUD encourages minority enlist volunteers and raise local funds(7 4)The extent to which the proposed organisations to participate in this points). $upp ive services meet the identified program as Sponsors.HUD offices will (b)The need for supportive housing needs of the residents(S points):and advise all organizations on their mailing for the elderly in the area to be served (5)The extent to which the Sponsor and the suitability of the site. demonstrated that the identified fist of the date.time.and piste x consideringthe following(28 rots workshops at which HUD will explain 8 Po supportive services will be provided on the Section 202 program. maximum): a consistent.long-term basis(5 points). (1)The extent of the need for the The maximum number of points an HUD strongly recommends that project in the area based on a application can earn without bonus prospective applicants attend the local determination by the HUD office.HUD points is 100.An application can earn HUD office workshop.Interested will make this determination by an additional 10 bonus points,as persons with disabilities should contact considering the Sponsor's evidence of described immediately below.for a the HUD office to assure that any need in the area,as well as other maximum total of 110 points. necessary arrangements can be made to economic.demographic.and housing enable their attendance and market data available to the HUD office. 4•Bonus Points participation in the workshop.At the The datl could include the availability (a)The Sponsor's involvement of workshops,HUD will explain of existing Federally assisted housing elderly persons.particularly minority application procedures and (HUD and RHS)(e.g..considering elderly persons.in the development of requirements.HUD will also address availability and vacancy rates of public the application.and its intent to involve concerns such as local market housing)for the elderly and current elderly persons,particularly minority conditions,building codes.historic occupancy in such facilities:Federally elderly persons,in the development of preservation.floodplain management. assisted housing for the elderly under the pror(5 bonus points); construction or for which fund (b}The at wail be located within displacement and relocation,zoning, reservations have been Issued;and in the boundaries of a Federally designated and housing costs. accordance with an agreement between Empowerment Zone.Urban While strongly urged to do so,if HUD and the RHS,comments from the Supplemental Empowerment Zone, Sponsors cannot attend a workshop, RHS on the demand for additional Enterprise Community,or an Urban they can obtain Application Packages assisted housing and the possible harm Enhanced Enterprise Community(5 . from the MulWamily Housing to e)dsting projects in the same housing bonus points). Clearinghouse(see address and market area(8 points); Application Process telephone number in the"Application II.A (2)The proximity or accessibility of pp Package"section of this NOFA.above). the site to shopping,medical facilities. All applications for Section 202 However.Sponsors who cannot attend transportation,places of worship, capital advances submitted by eligible the workshops are strongly encouraged recreational facilities,places of Sponsors must be filed with the to contact the appropriate HUD office employment,and other necessary appropriate HUD office receiving an with any questions regarding the services to the intended occupants; allocation and must meet the submission of applications to that adequacy of utilities and streets; requirements of this NOFA.HUD will particular office and to request any freedom of the site from adverse not accept any application after 4 p.m. materials handed out at the workshop. environmental conditions:compliance local time on July 28.1997.unless that Federal Regis/ Vol. 62, No. 101 / Tuesday, May 27.U97 / Notices 28767 M.Application Submission payment of Federal income taxes,and (d)A certified Board Resolution. Requirements does not pa yy patronage dividends may acknowledging the responsibilities of A.Application be exempt from the requirement set out sponsorship,long-term support of the In the previous sentence if It is not project(s).willingness of Sponsor to Fach application must Include all of eligible for tax exemption. assist the Owner to develop.own, the Information,materials,forms.and Note:Sponsors who have received a manage.and provide appropriate exhibits listed In section M.B.,below section 202 fund resm"tion within the last services In connection with the (with the exception of applications . tt±tee ftmding cycles are not requited to proposed project,and that it reflec u the submitted by Sponsors selected for a submit the documents described in(a).(b), will of Its membership.Also.evidence, Section 202 fund Teservation within the and(c),above.Iastead,Sponsors Must in the form of a certified Board last three funding cycles).and must be : Submit the project number of the latest Resolution,of the Sponsor's willingness indexed and tabbed.Such previously application and the TIM office to which it to fund the estimated start-up expenses, selected Section 202 Sponsors ale not was submitted.If there have been any the Minimum Capital Investment(one. required to submit the information modifications or additions to the subject p half of 1 percent of the HUD-approveddocuments,indicate such,and submit the described In sections 13.2.(a).U.and(c) new material. capital advance.not to exceed$10,000. of this NOFA.below(Exhibits 2.a.,b., ; if nonaffiliated with a National Sponsor, and c.of the application).which are the (d)Resolution of the board,duly one-half of i percent of the HUD• articles of incorporation,(or other certified by an officer.that no officer or approved capital advance,not to exceed organisational documents).by-laws,and director of the Sponsor or Owner has or 325.000.for all other Sponsors),and the the IRS tax exemption.respectively.lE will have any financial interest In any estimated cost of any amenities or there has been a change In any of the i contract with the Owner or in any firm features(and operating costs related eligibility documents since its previous ; or corporation that has or will have a thereto)that would not be covered by HUD a proval,the Sponsor trust submit contract with the Owner.including a the.approved capital advance; the u ted information in its current listing of all duly qualified and a Iication.fihe local HUD office will sitting officers and directors by title.and (e)Description if applicable,of the base its determination of the eligibility the beginning and ending dates of each Sponsor's a to Involve elderly of a now Sponsor for a reservation of y person's term. persona.including minority elderly Section 202 Capital advance funds on 3.Sponsor's purpose.community ties, persona•in the development of the the information provided In the ts Intent to (aexperience, A descriptiontof Sponsor's involve elderly ppeelrsons in the application.HUD offices will verify n development of the project- Sponsor's Indication of previous HUD purposes and activities,ties to the 4.Pro Information,Including the approval by cbecking the project community.Including the antmin support following: : number and approval status with the community),local government support B- appropriate NW office. (including financial support and (a)Evidence of need for supportive un adition to this relief of paperwork services),how long the Sponsor has housing.Such evidence would include burden in preparing applications, been in existence,and any additional a description of the category or applicants will be able to submit related Information; categories of elderly persons the information and exhibits they have (b)A description of Sponsor's housing housing is intended to serve and previously prepared for prior and/or supportive services experience. evidence demonstrating sustained applications under Section 202,Section The description should include any effective demand for supportive housing 811.or other funding programs. rental housing projects and/or for that population in the market area to Examples of exhibits that may be readily supportive services facilities sponsored, be served,taking Into-consideration the adapted amended to decrease the owned,and operated by the Sponsor. occupancy and vacancy conditions in burden preparation o application prepara the Sponsor's past or current existing Federally assisted housing for include.among others.those ti involvement in any programs other than the elderly(HUD and RHS;e.g..public reludes participation in the Section housing that demonstrates the Sponsor's housing);State or local date on the previous or Section participation program s,applicant , management capabilities(including limitations in activities of daily living experience in provision ar housing and F financial management)and experience; among the elderly in the area;aging in services,supportive services plan. ( i the Sponsor':experience La serving the place in existing assisted rentals;trends community ties,and experience serving elderly,including elderly persons with in demographic uiation and householdss In;the minorities. disabilities,and/or families and pop minorities;and the reasons for receiving numbers of income eligible elderly B.General Application Requirements any i6creases in fund reservations for households by size.tenure,and housing 1.Form HUD-92015-:A,Application developing and/or operating previously condition;the types of supportive for Section 202 Supportive Housing fundedpro'ects; services arrangements currently Capital Advance. I (c)A description of Sponsor's available in the area;and the use of such 2.Evidence of each Sponsor's legal participation in joint ventures and services as evidenced by data from local status as a private nonprofit j experience in contracting with minority- social service agencies or agencies on organization or nonprofit consumer owned businesses.women-owned aging. cooperative.including the following: businesses,and small businesses over (b)Description of the project, (a)Articles of Incorporation, f the last 3 years,including a description including the following: constitution.or other organizations) of the joint venture,partners and the (1)Narrative description of the documents; i Sponsor's involvement.and a summary building design,including a description (b)By-laws; of the total contract amounts awarded in of any special design features and (c)IRS tax exemption ruling(this each of the 3 categories for the community space,and how this design must be submitted by all Sponsors, preceding 3 years,and the percentage will facilitate the delivery of services in including churches).A consumer : . that amount represents of all contracts an economical fashion and cooperative that is tax exempt under awarded by the Sponsor in the relevant accommodate the changing needs of the State law,has never been liable for time period; residents over the next 10-20 years; I 28768 Federal ReSU i Vol. 62. No. 101 1 Tuesday, May 2"97 1 Notices (2)Description of whether and how proposed project permissible and the Note:This could be an expensive the project will promote energy basis for belief that the proposed action undertaking.The Cost of any clean-up and/ efficiency,and.If applicable,innovative will be completed successfully before or remediation must be borne by the sponsor. construction or rehabilitation methods the submission of the firm commitment (6)A letter from the State Historic or technologies to be used that will application(e.g..a summary of the Preservation Officer indicating whether promote efficient construction. results of any requests for rezoning on the proposed site has any historical (c)Evidence of site control and land in similar zoning classifications significance. permissive zoning,including the and the time required for such rezoning. (d)Provision of supportive services following: or preliminary indications of and proposed facility: (1)Evidence that the Sponsor has acceptability from zoning bodies); (1]A detailed description-of the entered into a legally binding option - (3).A narrative topographical and supportive services proposed to be agreement(which extends through the demographic description of the provided to the anticipated occupancy; end of the current fiscal year and suitability of the site and area.and bow (2)A description of public or private contains a renewal provision so that the the site will promote greater housing sources of assistance that reasonably option can be renewed for at least an opportunities for minority elder/ and could besexpected to fund the proposed additional 6 months)to buy or lease the elderly persons with disabilities Y services: proposed site;or has a copy of the - thereby affirmatively furthering fair (3)The manner in which such contract of sale for the site.a deed.long- housing; services will be provided to such term leasehold,a request with all (4)A map showing the Iocation of the persons(i.e.,on or off site).including , supporting documentation,submitted site and the racial composition of the whether a setvice coordinator will either prior to or with the Application neighborhood,with the area of racial facilitate the adequate provision of such for Capital Advance,for a partial release concentration delineated; services.and how the services will meet of a site covered by a mortgage under a (5)A Phase I Environmental Site the identified needs of the residents. HUD program.or other evidence of legal Assessment.In accordance with the Now.Disability related supportive services ownership of the site(including American Society for Testing and cannot be a condition for tenancy. properties to be acquired from the FDIC/ Material(ASTM)Standards E 1527-93, S,A list of the applications,if any,the RTC).The Sponsor must also identify as amended.Since the Phase I study Sponsor has submitted or is planning to any restrictive covenants,including must be completed and submitted with submit to any other HI.ID office in reverter clauses.In the case of a site to the application.It is important that the response to this NOFA or the NOFA for be acquired from a public body. Sponsor start the site assessment Section all Program of Supportive evidence that the public body possesses process as soon attar publication of the Housing for Persons with Disabilities clear title to the site,and has entered NOFA as ble. into a legally binding agreement to lease If the Phase i study indicates the (published elsewhere HUD tadufy%.the era/ or convey the site to the Sponsor after possible presence of contamination and/ R�er)�location byIndicate cityand State,and It receives and accepts a notice of or hazards.the Sponsor must decide the number of units requested for each Section 202 capital advance and whether to continue with this site or application.Include a list of all FY 19% Identification of any restrictive choose another site.Should the Sponsor and prior year projects to which the covenants,including reverter clauses, choose another site,the same Sponsor(s)is a party that have not been However,in localities where HUD environmental site assessment finally closed.Such projects must be determines the time constraints of the procedure identified above must be identified by project number and HUD funding round will not permit all of the followed for that site. office. required official actions(e.g..approval . Note:For properties to be ecqulmd from 6.HUD-2no,Applicant/Reciplent of Community Planning Boards)that are the FDIC/=include a copy or the Fvjc/ Disclosure/Update Report,including necessary to convey publicly-owned RTC prepared Transaction Screen Checklist Social Security Numbers and Employer sites,a letter in the application from the or Phase I Environmental Site Assessment. Identification Numbers. mayor or director of the appropriate and applicable documentation,per the FDIC 7.Executive Order 12372 local agency indicating approval of RTC Environmental Cuidelines. certification.A certification that the conveyance of the site contingent upon. If the Sponsor chooses to continue Sponsor has submitted a copy of its the necessary approval action is with the original site on which the applications.If required.to the State acceptable and may be approved by the phase I study Indicated contamination agency(single point of contact)for State HUD office If it has satisfactory or hazards,then it must undertake a review in accordance with E.0.12312. experience with timely conveyance of detailed Phase lI Environmental Site 8.A statement that(a)identifies all sites from that public body.In such Assessment by an appropriate persons(families.individuals, rases,documentation must also include professional.If the Phase 11 Assessment businesses,and nonprofit a copy of the public body's evidence of reveals site contamination,the extent of organizations),identified by race/ ownership and identification of any the contamination and a plan for clean- minority getup,and status as owners or restrictive covenants,including reverter up of the site must be submitted to the tenants,occupying the property on the clauses; local HUD office.The plan for clean-up date of submission of the application for Note:A proposed project site may not be must include a contract for remediation a capital advance:(b)Indicates the acquired or optioned bom a general of the problem(s)and an approval letter estimated cost of relocation payments contractor for its affiliate)that will construct from the applicable Federal.State,and/ and other services;(c)identifies the staff the section 202 project or from env other or local agency with)urisdiction over organization that will tarry out the development team member. the site.In order for the application to relocation activities;and(d)identifies (2)Evidence that the project as be considered for review under this FY all persons that have moved from the proposed is permissible under 1997 funding competition,this site within the past 12 months. applicable zoning ordinances or information would have to be submitted Note:If any of the relocation costs will be regulations,or a statement of the to the local HUD office no later than funded from sources other then the Sectton proposed action required to make the August 25.1997. 202 capital advance.the(sponsor must Federal Regi: / Vol. 62, No. 101 / Tuesday, May 2,. _997 / Notices 28769 provide evidence of a firm commitment of U.S.C.12101 et seq.)to the extent $32,321 per family unit with one these funds.When evaluating applications, applicable;the affirmative fair housing bedroom; HUD will consider the total cost of proposals marketing requirements of 24 CFR part $38,979 per family unit with two (i.e.,cost of site acquisition,relocation, 200,subpart M and the regulations in 24 bedrooms; construction,and other project costs). CFR part 108;and other applicable For elevator structures: 9.SF-424.A certification on SF-024, Federal,State,and local laws $29,500 per family unit without a Application for Federal Assistance,that prohibiting discrimination and bedroom; the Sponsor(s)is not delinquent on the promoting eeqqual opportunity. $33.816 per family unit with one repayment of any Federal debt (b)A c erewcation that the Sponsor(s) bedroom; 10.A certification regarding Lobbying will comply with the requirements of $41,120 per family unit with two that complies with 24 CFR part 87 must the Drug-Free Workplace Act. bedrooms. be submitted by the Sponsor.If the (c)A certification that the project will (2)These cost limits reflect those Sponsor has made or has agreed to make comply with HUD's project design and costs reasonable and necessary to any payment using nonappropriated cost standards;the Uniform Federal develop a project of modest design that funds for lobbying activity,as described Accessibility Standards and HUD's implies with HUD minimum property in 24 CFR part 87,the submission must implementing regulations.at 24 CFR part standards;the accessibility also include SF-LLL,Disclosure of 40;section-504 of the Rehabilitation Act requirements of§891.120(b);and the Lobbying Activities. of 1973(29 U.S.C.794)and HUD's project design and cost standards of i 1.Certification of Consistency with implementing regulations at 24 CFR part §891.120. the Consolidated Plan(Plan)for the 8;and for covered multifamily B.Increased development cost limits. jurisdiction is which the proposed dwellings designed and constructed for (1)HUD may increase the development project will be located must be first occupancy after March 13,1991, cost limits set forth in section IV.A.(1) submitted by the Sponsor.The the design and construction of this NOFA,above,by up to 140 certification must be made by the unit requirements of the Fair Housing Act percent in an geographic area where of general local government if it is and HUD's implementing regulations at P Y required to have,or has,a complete 24 CFR part 100;and the Americans the cost levels require,and may increase the development coat limitsby up to Plan.Otherwise the certification may be with Disabilities Act of 1990. 160 made by the State,or by the unit of (d)A certification basis. is. bas the S onsor(s) percent on aproject-by-project general local government if the project that it will comply P Y(or has complied) (2)If HUD finds that hi gh will be located within the jurisdiction of with the acquisition and relocation construction costs in Alaska,Guam,the the unit of general local government requirements of the Uniform Relocation Virgin Islands,or Hawaii make it authorized to use an abbreviated Assistance and Real Property strategy,and if the unit of general local acquisition Policies Act of 1970,as infeasible to construct dwellings, government is willing to re such a without the sacrifice of sound standards g �g prepare amended(URA),implemented by of construction,design,and livability, Plan. regulations in 49 CFR part 24,and 24 within the develo meat cast limits All certifications must be made by the CFR 891.155(e). P public official responsible for (e)A certification by the Spoasor(s) Provided in section N.A.of this NOFA, submitting the Plan to HUD.The that it will: fi form as"Owner"(as above,the amount of the capital certifications must be submitted as part defined in 24 CFR 891.205)after the advances may be increased to of the application by the application issuance of the capital advance;(ii) compensate for such costs.The increase submission deadline set forth in this cause the Owner to file a request for may not exceed the limits established NOFA.The Consolidated Plan determination of eligibility and a under this section(including any high regulations are published in 24 CFR part request for capital advance;and(iii) cost area adjustment)by more than 5o 91. provide sufficient resources to the percent. 12.Sponsor Certifications.(a)A Owner to insure the development and V.Findings and Certifications certification that the Sponsor will long-term operation of the project, A.Paperwork Reduction Act Statement comply with section 504 of the including capitalizing the Owner at firm Rehabilitation Act of 1973(29 U.S.C. commitment processing in an amount The information collection 794)and the implementing regulations sufficient to meet its obligations in requirements contained in this NOFA in 24 CFR part 8;the Fair Housing Act connection with the project. have been approved by the Office of (42 U.S.C.3600-3619)and the Management and Budget(OMB)in implementing regulations in 24 CFR IV.Development Cost Limits accordance with the Paperwork parts 100,108,and 110;title VI of the A.The following development cost Reduction Act of 1995(44 U.S.C.3501- Civil Rights Act of 1964(42 U.S.C. limits,adjusted by locality as described 3520).and assigned OMB control 2000d)and the implementing in section N.B.of this NOFA,below, number 2502-0267.An agency.may not regulations in 24 CFR part 1;section 3 shall be used to determine the capital conduct or sponsor,and a person is not of the Housing and Urban Development advance amount to be reserved for required to respond to,a collection of Act of 1968(12 U.S.C.1701u)and the projects for the elderly: information unless the collection implementing regulations in 24 CFR (1)The total development cost of the displays a valid control number. part 135;the Age Discrimination Act of property or project attributable to 1975(42 U.S.C.6101-6107)and the dwelling use(less the incremental B.Environmental Impact implementing regulations in 24 CFR development cost and the capitalized This NOFA provides-funding under, part 146;Executive Order 11246(as operating costs associated with any and does not alter the environmental amended)and the implementing excess amenities and design features to provisions of,regulations in 24 CFR part regulations in 41 CFR Chapter 60;the be paid for by the Sponsor)may not 891,which were published in the regulations implementing Executive exceed: Federal Register on March 22,1996(61 Order 11063(Equal Opportunity in Nonelevator structures: FR 11956).Accordingly,under 24 CFR Housing)in 24 CFR part 107;the $28,032 per family unit without a 50.19(c)(5),as published in the Federal Americans with Disabilities Act(42 bedroom; Register on September 27.1996(61 FR 28770 ?federal Regis4� Vol. 62. No. 101 / Tuesday, May 27,U7 / Notices 50914.5o919).this NOFA is Disclosures.HUD will make available legislative officers or employees in categorically excluded from to the public for 5 years all applicant connection with obtaining such environmental review under the disclosure reports(HUD Form 2880) assistance,or with its extension. National Environmental Policy Act of submitted in connection with this continuation,renewal.amendment,or 2969142 U.S.C.4321).The NOFA.Update reports(also Form 2880) modification.The Byrd Amendment environmental review provisions of the will be made available along with the applies to the funds that are the subject Section 202 program regulations are in applicant disclosure reports.but In no of this NOFA.Therefore.applicants 24 CFR 891.155(b). case for a period less than 3 years.All must file a certification stating that they Federalism Executive Order repo�o�applicant disclosures and have not made and will not make any updates—will be made available in prohibited payments,and if applicants The General Counsel,as the accordance with the Freedom of have made any payments or agreement Designated Official tinder section 6(a)of Information Act(5 U.S.C.$52)and to make payments of noneppropriated Executive Order 12612.Federalism,has HUD's implementing regulations at 24 funds for these purposes,they must determined that this NOFA does not CFR part 15 submit a form SF-LI.L disclosing such have substantial direct effects on States F Prohibition Against Advance payments.The certification and the SF- or their political subdivisions,or on the lnjotlnafioa on Funding Decisions LLL are included In the Application relationship between the Federal HUD's regulation Im lementin Package. i Government and the States,or on the ation p 9 3bhe Lobbying Disclosure Act of 1995, distribution of power and section 103 of the Department of P.L.104-65(December 19.19951,which responsibilities among the various Housing and Urban Development repealed Section 112 of the HUD Reform levels of government.This NOFA Reform Act of 1989.codified as 24 CFR Act and resulted In the elimination of part 4.applies to the funding the regulations at 24 CFR Part 86, mere! notifies the public of the availability of capital advances and competition announced today.The req uires all persons and entities who Eroject rental assistance for supportive requirements of the rule continue to lobby covered Executive or Legislative ousing for the elderly.As a result,this apply until the announcement of the Bran&officials to register with the NOFA is not subject to review under the selection of successful applicants.HUD Secretary of the Senate and the Clerk of Order employees involved in the review of the House of Representatives and file applications and in the making of reports concerning their lobbying D.Accountability in the Provision of funding decisions are prohibited by part activities. HUDAssistance 4 from providing advance information to any person(other than an authorized H.Catalog of Federal Domestic Section 102 of the Department of Housing and Urban Development employes of HUD)concerning funding Assistance Program Reform Act of 1989(42 U.S.C.3545) decisions,or from otherwise giving any The Catalog of Federal Domestic Reform Act)and the regulations applicant an unfair competitive Assistance Program title and number is (HUD Re codified f o 24 ct) part subpart advantage.Persons who apply for 14.157,Housing for the Elderly or sistance is this competition should Handicapped. contain a number of provisions that are as confine their inquiries to the subject designed to assure greater Authority:Section 202.Housing Act of accountability and integrity in the areas permitted under 24 CFR part 4. 1959,as amended(12 U.S.0 1701q);Section Applicants or employees who have 7(d),Department of Housing and Urban provision of certain types of assistance ethics related questions should contact Development het(42 U.S.0 3s35(d)). administered 94 ). D.Ht On January a the HUD Ethics Law Division at(202) Dated;May 7,1997. notice (57 t also 1942),HUD published a 70"815(this is not a toll-free Nicolas P.�inas. the Implementationf of sectiorovides n information number).To access this number by Try, Assistant Secretary forHousing—Federal documntation,public access.and dial 1-800-877-8339.HUD employees Housing Commissioner. P who have specific program questions, disclosure requirements of section 102 such as whether particular subject Appendix A—GW&Hnes for Rating Section apply to assistance awarded under this matter can be discussed with persons 202 Appltcadons FY 11197 Supportive NOFA as follows: outside t=.should contact the Hewelag for the 8lderly Documentation and public access appropriate Field Office Counsel,or Directions:In applications proposing a Co- requirements.HUD will ensure that Headquarters counsel for the program to Sponsor,the Sponsor and Co-Sponsor are to documentation and other information which the question pertains. be evaluated and scored se tery.The regarding each application submitted higher scam shall be awarded to the pursuant to this NOFA are sufficient to F.Prohibition against Lobbying application. indicate the basis upon which Activities The full range of numerical ratings should assistance was pprovided or denied.This Applicants for fundingunder thts be used. material,inciudin an letters of NOFA are sub' to the rovisions of 1.to land operatinge the Spoil oe ability to g Y 1� F develop and operate the proposed housing on support will be made available far section 319 of the Department of Interior a long-term basis,consider.52 points public inspection for a 5-year period and Related Agencies Appropriation Act maximum. beginning not less than 30 days after the for fiscal Year 1991 (31 U.S.C.1352) W119)(a)A AM avg*-The scope,extent award of the assistance.Material will be (the Byrd Amendment)and to the and quality ofthe Spoasor's experience made available in accordance with the provisions of the Lobbying Disclosure in providing housing OR related services Freedom of Information Act(5 U.S.C. Act of 1995(Pub.L.104-65;approved to those proposed to be served by the 552)and HUD's implementing December 19,1995). pro)ect and the scope of the proposed regulations at 24 CFR part 15.In The Byrd Amendment,which is project(Le..number of units,services. addition.HUD will include the implemented in regulations at 24 CFR relocation cores,development,and operation)In relationship to the recipients of assistance pursuant to this part 87,prohibits applicants of Federal Sponsor':demonstrated development NOFA in its Federal Register notice of contracts and grants from using and management capacity and financial all recipients of HUD assistance appropriated funds to attempt to management capability(30 points awarded on a competitive basis. influence Federal executive or maximum). 1 Federal RegistAnw Vol. 62. No. 101 I Tuesday, May 27,u7 / Notices 26771 25-30 Points-Sponsor must have developed S points-The application contains written 4 Points-The number of units proposed Is and operated at least one housing project evidence that the local government 11 percent or more of the income eligible comparable in scope to the project being Intends to provide financial assistance uamat need. applied for or provided related and community services to the proposed (VAL)(b}-The proximity or accessibility of supportive services for at least five years project and the project is consistent with the site to shopping,medical facilities. for the proposed population and, the Consolidated Plan which shows a transportation,plsc n of worship. demonstrated a consistent performance need for elderly housing. recreational facilities,places of in timely development.effective 3 points--The application contains written employment.and other necessary marketing,and efficient management of evidence that the local government services to the Intended occupants, housing and/or service delivery Also. Intends to provide community services adequacy of utilities and streets,freedom ct the Sponsor must not have received any to the proposed proje and the project of the site from adverse environmental unreasonable Increases La fund is consistent with the Consolidated Plan conditions,and compliance with site reservations for developing and/or which shows a need for elderly housing. and neighborhood standards(10 points operating previously funded projects. 1 point-The Sponsor has enlisted some maximum). 12-24 Point"ponsor has at least three support in the community(La..-letters of 7-10 points-All necessary services and years experience In providing housing support from other agencies)for the facilities.Including shopping facllitles and/or supportive services for the proposed project and the prom is for daily necessities(groceries,toiletries proposed population and has consistent with the Consolidated Plan and medicines).are within safe walking demonstrated consistent performance In which shows a treed for elderly housing. distance,or are easily accessible by timely development,effective marketing. M IR(d}-The extent of the Sponsoes frequently operating public and efficient management of housing previous experience In serving the area transportation or by transportation and/or service delivery. where the project to to be located(i.e.. provided by the Sponsor.Utilities and 1-12 Points-Sponsor has lose than three extent of its activities,period of streets are available.adequate to serve years experience In providing either involvement.and the size of the the proposed use,and wllI require little housing or supportive services for the population served).and Sponsor's or no off site construction. proposed population,or,has not demonstrated ability to enlist volunteers Permissive zoning is In place. performed consistently in the and raise local funds(7 points No filling Is necessary:soil shows no development.marketing.and maximum). evidence of instability:or.minimal management of housing and/or service 4-7 points-The Sponsor has provided grading Is necessary to improve site delivery. documentation which demonstrate@ Its drainage.Site Is adequate In size. (FIFO)(b}-The scope,extant and quality of previous experience in serving the exposure,configuration.and topography the Sponsors experience I providing project locality,and has a good track with no special facilities required.Site is housing or related services to minority record of private fund raising and free from all adverse environmental persons or families(10 points enlisting volunteers in the community. conditions.Including hazardous maximum). 2-3 points-The Sponsor has limited conditions,and adequate fire and police 10 points-Sponsor has significant previous experience in serving the area where the protection Is readily available. experience in housing serving minorities project Is to be located,or In securing 4-6 points-Some necessary services and (i.e.,previous housing essistanee/related private funding or enlisting volunteers in facilities,including shopping facilities service to minorities was equal to or - a community for daily necessities,am within sate greater than the percentage of minorities 2.In determining the need for supportive walking distance OR are easily accessible in the jurisdiction where the previous hawing for the elderly in the area to be by frequently operating public housing/service experience occurred). served and the suitability of the site, transportation or by transportation and the Sponsor has ties to the minority consider.28 points maximum. provided by the Sponsor. community. (EMAS)(a}-The extent of the need for the Streets and/or utilities can be made available ' eA pointerSponsor has significant previous proj�in the area based an a to the site with moderate extensions. experience in bousing/serving determination by the HM Office.This Rezoning Is necessary and Sponsor provided minorities.There is no evidence that the determination will be made by taking a reasonable assurance that it will be Sponsor has ties to the minority into consideration the Sponsor's accomplished with only minor community. evidence of need In the area,as well as extensions. 5-7 point"ponsor has minimal experience other economic,demographic and Some filling Is necessary:soil shows some in bousing/serving minorities(i.e.. housing market data available to the evidence of instability;or minor grading previous housing assistancefrelated HM Office(e points maximum). is necessary to Improve site drainage. service to minorities was less than the Rating points for all projects,determined to Site is adequate In size,exposure, percentage of minorities In the be marketable,are to be based on the configuration and topography with no jurisdiction where the previous housing/ ratio of the number of units in the special facilities required.Site is free related service experience occurred);and proposed project to the estimate of from all hazardous environmental the Sponsor has ties to the minority unmet need for housing assistancepy the conditions,but some minor adverse community.- Income eligible elderly households with conditions exist(a.$..higher than 3-4 points-Sponsor has minimal experience selected housing conditions,as follows. acceptable noise level).However. in housing/serving minorities but the Unmet housing need Is defined as the mitigation Is possible without significant Sponsor does not have ties to the number of very low-income renter expenditures of time and expense. minority community• households with housing problems,as of Adequate fire and police protection is 1-2 points-The Sponsor does not have the IMCensus minus the numberof readily available. experience in housing/serving Federally assisted housing units 1-3 points-Few necessary services and minorities,but there Is evidence that the provided since the 7990 Census-HUD facilities,including shopping facilities Sponsor has ties to the minority will,to the extent practicable,consider for daily necessities are within safe community. all units provided for the elderly under walking distance.Description of the 0 points-None of the above. the Section a programs,the Public and availability of public transportation or (SEC(c)REP!-The extent of local Indian Housing programs.the Section the willingness.capacity and plan of the government support for the project.IS 202 program,and the Rural Housing Sponsor to provide transportation is points maximum). Service's Section S1S Rural Rental vague. Housing program. Streets and/or utilities can be made available 8 Points-The number of units proposed is to the site only with significant 10 percent or less of the income eligible extensions. unmet need. I 28772 Federal ReS"' / Vol. 62. No. 101 / Tuesday, May 2W997 / Notices 'Rezoning is mecassery and the Sponsor 10 point*—The site Is located In a minority Situation s6—Housing market area where provided a reasonable assurance that It concentrated area with an unmet few or no nonminorities live.(There are no will be aotornplished with moderate housing need for elderly and/or minority or few areas of nonminority concentration.) extensions. elderly persons. 10 points—The site is located in a housing Moderate filling is necessary;soil shows B polats—The site Is located In a nclally market area with a population of only a evidence of Instability Including the mixed*me bordering the minors Deed for goo-technical and/or dynamic eontrated area with an untne need few°OtiQs' aa soil analysis;or moderate regrading is for housing minority elderly persons. 5 points—The site Is footed In a housing necessary to improve site drainage.Site 5 potnt —The sits is located In a non- market area with a population of no is minimally acceptable in term of size, minority area but Sponsor has aonminorities. exposures configuration,drainage,and comparable teat&]units In the minority 3.In determining the adequacy of the topography with some special facilities concentrated area that will be available provision of supportive services.consider the required.Site is free from all hazardous to minors elders none h minority Y Pe 1�u8 fallowing:20 points maximum. environmental conditions,but some vacancies and/or turnover,thus minor adverse conditions exist(e•B providing a housing choice to minority (ARCH)(a}—The extent to which the higher than acceptable noise level) proposed design will meet the special elderly persons who desire to retrain to physical needs of elderly persons(3 However,mitigation is possible but with the minority community. , significant expenditures of time and 0 points,—None of the above.The site, points maximums. expense.Adequate fire and police although acceptable,does not promote a 3 points—The narrative Is detailed and protection is readily available. greater thole of housing opportuxrltles indicates how local codes and Section (FHEO)(c),Suitsbility of the alto from the for minority elderly persons. an program requirements will a met standpoints of promoting a greater and d how Fair Housing Amendments and choice of housing opportunities for Situation 83.—Housing market area where the Section 504 requirements will be minority persons and affirmatively existing housing for minority elderly persons included in the design development of furthering fair housing.(10 points Is looted In an area of minority the project's interior and exterior spaces. BAXImuru) concentration.There Is stilt a housing need circulation,and recreation. FHBO awards points under this criterion by In the minority concentrated area,as well as 1-2 points—The narrative is general and considering the existence and location of in the community as a whole: Indicates how local codes.Section 202. existing housing for minority persons Fair Housing Amendments and Section t0 paintsdares site Is]Dated la a racially 504 requirements will be achieved,and and whether a minority concentrated r'eq area has an unmet need for such housing mixed u°a gives assurances that full compliance In determining whether a site promotes a points--no site Is located in a non. will be achieved during the design housing choice. minority area. phase. Situation Rt—Housing market area where 5 points—The site is located In a minority (ARCM(b)—The extent to which the there 1s no existing assisted housing for area but Sponsor has comparable rental proposed sine and unit mix of housing elders minors *sons(d h(including Section units outside of the minority will enable the Sponsor to mac and Y minority persons B concentrated area that will be available operate the housing efliclently and 202.low rent public housing,and other to minority elderly persons(through ensure that the provision of supportive assisted housing projects).There is a need for vacancies and/or turnover).thus services will be accomplished in an such housing both Inside and outside uses providing a housing choice to minority economical manner(4 points maximum) of minority concentration. elderly persons who live outside the 3-4 points—The narrative provides a 10 points—The site Is located to a racially minority community. detailed description about the proposed mixed area with a need for such housing. 0 points—None of the above.The site. project.including a description of the It points—The site Is located In a although acceptable.does not promote a building type,unit configuration.special nonminority area with a need for such greater choice of housing opportunities design features,community spaces. housing for minority elderly persons. amenities and proposed utilities.and 5 points—The site is located in a minority Situation$4--Housing market area where bow the proposed project will aid to the concentrated-area with a need for such few or no minorities live.(There are no or delivery of services in an economical housing.The Sponsor has comparable few areas of mlaority concentration.] manner.The narrative Indicates that the rental units outside of the minors proposed size,unit mix and delivery of minority 10 points—The site Is located In a housing services Is well thought out and will concentrated area that will be available market area with a population of only a foster ea management and economic to elderly minority persons through few minorities. s3► rage vacancies and/or turnover,thus operation.There are no prohibited 5 points—The site Is located In a housing amenities ors aces not funded b the elderly minority ority persons who live � providing housing choice to those market area with a population of no Sponsor. nsor. p Y outside the minority community. 1-2 points—The narrative provides a general 3 points--The site Is located in a minority Situation 15—Housing market area where description about the proposed project or concentrated area with a need for existing assisted housing for the minority does not go into the level of detail es housing.Sponsor does not have elderly is inside a minority concentrated area indicated above,but sufficient comparable rental units outside of the and also outside a minority concentrated information Is provided to come to the minority concentrated area. area.Both areas have an unmet need for belief that the proposed size,unit mix 0 points—None of the above.The site, housing for minorities• and delivery of services will foster easy although acceptable,does not promote a management and economic operation. greater choice of housing opportunities 10 points—The site is located Outside end There are no prohibited amenities or for minority elderly persons. the majority of assisted housing is spaces not funded by the Sponsor. Situation 42—Housing market area where located Inside. (ARCH)(c)—The extent to which the there is existing assisted housing for the 10 points—The site is located Inside and the proposed design of the housing will majority of assisted housing is located semmmodate the provision of minority elderly(including Section 202. outside. supportive services that ass expected to other low rent public housing,and other 5 points—The site is located Outside and the be needed initially and over the useful assisted housing projects for minority elderly majority of assisted housing is located life of the housing,by the category or persons)and such housing is located in a outside. categories of elderly persons the housing nonminority area.There is an unmet need to 5 points—The site Is located Inside and the is intended to serve(3 points maximum). house minority elderly persons in a minority majority of assisted housing is located concentrated area: inside. Federal Registl. Vol. 62, No. 101 / Tuesday, May 27, "117 / Notices 28773 3 points-The proposed population does not 1-2 points-The elderly group to be housed HUD-New York,New Jersey Area have any special needs requiring special and their supportive needs are generally New Jersey State Office, design features,and there will not be any described.Description of services and on-site services requiring special method of delivery are general in nature. Thirteenth Floor,One Newark Center, accommodations;HOWEVER,the Some specifics of the service plan may Newark,NJ 07102-5260,(201)622-7900. Sponsor has addressed aging in place yet need to be developed.Aging in place TTY Number:(201)645-3298 and described how supportive services needs are discussed. New York State Office will be made available to the residents in (MHR&AM avg'd)-{e)The extent to which 26 Federal Plaza,New York,NY 1027.8-0068, the future for the remaining useful life of the sponsor demonstrated that the (212)264-0500,TTY Number.(212)264- the project; identified supportive services will be 0927 or provided on a consistent long-term basis Buffalo Area Office The narrative indicates that special features (5 points maximum). to accommodate supportive services will 4-0 points-Well documented explanation Fifth Floor,Lafayette Court.465 Main Street, be provided.These features are for the long-term provision of supportive Buffalo,NY 14203-1780,(716)551-5755, described in detail,indicating the items, services,including funding,for residents TTY Number.(716)551-5787 and their purpose,and may include as they age in place. HVD-.Mid-Atlantic Area other related information,such as, 1-3 points-Limited explanation for the long-term provision of supportive District of Columbia Office quantity,size,related codes and °g" P PPS standards,locations,and other pertinent services,including funding,for residents 820 First Street,NE,Washington,D.C. data. as they age in place. 20002-4502,(202)275-9200,TTY The features may provide items such as:(1) 4.Bonus Points. Number.(202)275-0772 adequate food storage,preparation,and (MHR)(a)-The Sponsor has involved elderly Maryland State Office consumption areas;(2)a convenient on- persons,including minority elderly Fifth Floor,City Crescent Building,i0 South site passenger pick-up and drop-off area; persons,in the development of the Howard Street.Baltimore,MD 21201-2505, and(3)any other required feature to application and will involve elderly (410)962-2520,TTY Number.(410)962- accommodate proposed supportive persons,including minority elderly 0106 services. persons,in the development of the These features constitute acceptable project(5 Bonus Points).(See Exhibit Pennsylvania State Office amenities,and do not include any 3e.) The Wanamaker Building.100 Penn Square prohibited amenities not funded by the The Sponsor met with elderly persons at East,Philadelphia,PA 19107-3390,(215) Sponsor or clinical/health type )east twice during the preparation of the 656-0600,TTY Number.(215)656-3452 equipment. application to solicit comments,drafts of Virginia State Office 1-2 points-Same as above,except that the the application were circulated to elderly The 3600 Centre,3800 West Broad Street, description is in general terms,and data persons for review,and/or the Sponsor p 0.Box Centre, Richmond,VA 29230- such as quantity,sizes,and specific board includes at least 20 percent elderly 0331,Box 9 331,Rich, andTTY Number.0- locations and applicable codes and members.Also,the Sponsor discussed 0331,(01 standards are not included.The features the input received and whether the input constitute acceptable amenities,and do was accepted. West Virginia State Office i not include prohibited amenities not (CPD)(b)-The project will be located within Suite 708,405 Capitol Street,Charleston,WV funded by the Sponsor or clinical/health the boundaries of a Federally designated 25301-1795,(304)347-7000.TTY type equipment. Empowerment Zone,Urban Number:(304)347-5332 (MHR&AM avg'd)-(d)The extent to which Supplemental Empowerment Zone, Pittsburgh Area Office the proposed supportive services meet Enterprise Community.or an Urban the identified needs of the residents.(5 Enhanced Enterprise Community(5 339 Sixth Avenue,Sixth Floor,Pittsburgh, points-maximum) bonus points). PA 15222-2515,(412)644-$428,TTY 5 points-The proposed population does not Number:(412)644-5747 have any special supportive service Appendix B-HUD Offices HUD-Southeast/Caribbean Area needs;However,the Sponsor has Note:The first line,of the mailing address Alabama State Office addressed aging in place and described for all offices is Department of Housing and how supportive services will be made Urban Development.Telephone numbers Suite 300,Beacon Ridge Tower,600 Beacon available to the residents in,the future for listed are not toll-free. Parkway,West,Birmingham,AL 35209- the remaining useful life of the project; 3144,(205)290-7617,TTY Number:(205) or HUD-New England Area 290-7630 Sponsor has comprehensively described the Connecticut State Office Caribbean Office specific supportive service needs of the First Floor,330 Main Street,Hartford,CT New San Juan Office.Building,159 Carlos identified elderly group to be housed. 06106-1860,(203)240-4523,TTY Chardon Avenue,San Juan,PR 00918- Proposed services address the identified Number:(860)240-4665 1804,(809)766-6121,TTY Number:(809) needs,provide for tailoring to individual 766-5909 needs,and are consistent with program Massachusetts State Office Georgia State Office requirements.Method of service delivery Room 375,Thomas P.O'Neill,Jr.Federal Richard B.Russell Federal Building,7 is appropriate and clearly described. Building,30 Causeway Street,Boston,MA Spring Street,S.W.,Atlanta,GA 30303- Sponsor's service plan discusses P g provisions for those aging in place. 02222-1092,(617)565-5234,TTY 3388,(404)331-5136,TTY Number:(404) 3-4 points-The elderly group to be housed Number:(617)565-5453 730-2654 and their supportive needs are well New Hampshire State Office Kentucky State Office described.Proposed services address the Norris Cotton Federal Building,275 Chestnut 601 West Broadway,P.O.Box 1044, principal needs identified,and the Street,Manchester,NH 03101-2487,(603) Louisville,KY 40201-1044,(502)582- method of delivery is appropriate.The 666-7681.TTY Number:(603)666-7518 5251,TTY Number.1-800-648-6056 service plan is consistent with program requirements.Aging in place needs are Rhode Island State Office Mississippi State Office addressed. Sixth Floor 10 Weybosset Street,Providence. Suite 910,Doctor A.H.McCoy Federal RI 02903-3234,(401)528-5351,TTY Building,100 West Capitol Street.Jackson, Number:(401)528-5403 MS 39269-1096.(601)965-5308,TTY Number:(601)965-4171 28774 Federal RegL4 / Vol. 62, No. 10i / Tuesday, May 274r(997 / Notices North Camlins State Office Cincinnati Area Office Saint Louis Area Field Office Koger Building.2306 West Meadowview 525 Vine Street,Seventh Floor.Cincinnati, Third Floor,Robert A.Young Federal ` Road,Greensboro.NC 27407-3707.(9191 OH 45202-3188,(513)684-2884.TTY Building.1222 Spruce Street,St.Louis, 547-4001,TTY Number.1919)547-4055 ' Number.(513)584-6190 MO 63103-2836.(314)539-6583,7TY South Carolina State Office Cleveland Area Office Number.(3141539-6331 Strom Thurmond Federal Building,1835-45 Fifth Floor.Renaissance Building.1350 HUD--RockyMountafns Area Euclid Avenue,Cleveland.OH 44115- Assembly Street,Columbia,SC 29201- 1815.1215)522-4065,TTY Number.(216) Colorado State,Olfics 2460,(803)765-5S92,TTY Number.(803) 522-2261 633 17th Street.Denver,Cl7 80202-3607. 253-3071 Grand Rapids Area Office (303)672-544o.TTY Number.(303)672- 7snuessee State CMIca Trade Center Building.Third Floor,So Louis 5248 Suite 200.251 Cumberland Bend Drive. Street,NW,Grand Rapids,MI 49503-2648. HTJD-4oQcffic1H0waf!Area Nashville,TN 37225-1303.(615)736- (6161456-2100,71 Y Number.(616)456- Arizona State Office $223,TTY Number.(615)736-28W 2159 Jacksonville Area Office HUD-Zouthwest Area Suite Sth Street. Two Arizona Canter, North t,Phoenix.AZ e5o04•-2362381,(sOz) ■ Suite 2200.Southern Bell Tower,301 West Arkansas State Office 379-4434,TTY Number.(602)379-4464 Bay Street,Jacksonville,FL 32202-5t21. Suite 900."=Tower.42S West Capitol California State Office (9041232-2626.TTY Number.(904)232- Avenue.Little Rock.AR 72201-3488.(WI) Philip Burton Federal Building and U.S. 1241 324-5931.TTY Number.(501)324-5931 p g Knoxville Area Office Louislana State Office Courthouse,450 Golden late Avenue.P.Q. Box 36003.San Francisco,CA 94102-3448. Third Floor.John J.Duncan Federal Building. Ninth Floor.Hale Boggs Federal Building. (41S)436-6532.TTY Number.(415)436- 710 Locust Street,Knoxville,TN 37902- Sol Magazine Street.New Orleans.LA 65" 2526.(423)545-4384.TTY Number.(423) 70130-3099.(504)$89-7200,TTY $45-4559 Number.1504)589-7279 Hawalt State office Oklahoma State Office Suite SM.7 Waterfront Plaza,SM Ala Moans 11tW"Midwest 44m Boulevard.Honolulu.HI 96813-4918, $00 Mein Plaza.SM blest Main Street.Suite IBM)522-617S,TTY Number.(808)522- Illinols State Office 400.Oklahoma City,OK 73102-2233.(405) Ralph H.Metcalfe Federal Building.77 West 553-7400.TTY Number.(405)553-7480 8193 )ackson Boulevard.Chicago.U.60604.- Texas State Office Los Angeles Area Office 3507,(3121353-5880,TTY Number.(312) 16W Throckmorton Street,P.O.Box 2905. 1615 West Olympic Boulevard.Los Angeles. 353-5944 Fort Worth.TX 76113-2905.($17)978- CA 900iS-3501.(213)894-6000.TTY Indiana State Office 90DO,TTY Number 1817)978-9273 Number.{213)$%-5133 151 North Delaware Street,Indianapolis.IN Houston Area Office Sacramento Area Office 46204-2526,(317)726-63M.TTY Suite 200.Norfolk Tower,2211 Norfolk, Suite 2o0,77712th Street.Sacmmenlo,CA Number.(317)226-7081 Houston,TX 77098-4096.(713)313-2274, 95814-1997.(918)496-5220,TIY Michigan State Office TTY Number.(713)$34-3274 Number(916)428-5959 Patrick V.McNamara Federal Building.477 San Antonio Area Office HUD-N4rthweWA1aska Area Michigan Avenue,Detroit,MI 48226-2592, Washingum Square,800 Dolorosa Street,San Alasks State Office (3131226-7900,TTY Number.(3131226- Antonio.TX 78207-4563.(210)472-6800, 6899 TTY Number..1210)472-E885 Suite 403,University Plaza S49 HUD-Great Plains Feat 38th Avenue,Anchorrageage,.AKX 99508- Minnesota State Office 4399,(907)271-4170.TTY Number.(907) 220 Second Street.South,Minaespolis.Mai Iowa State Office 271-4328 55401-2195.(612)370-3000.TTY Room 239.Federal Building,210 Walnut Oregon State Office Number.(6121370-3186 Street.Des Moines,IA 50309-2155.(515) 400 Southwest SLvth Avenue,Suit*70o, Ohio State Office 28"512,TTY Number.(5151 28"725 Portland,OR 97204-1632,(S03)325-2561, 200 North High Street.Columbus.OH 43215- Kansas/Missouri State Office TTY Number.(503)326-36S6 2499,(614)469-5737,TTY Number.(614) Room 200.Gateway Tower 11,400 State Washington State Office 489-6894 Avenue.Kansas City.KS 66101-2406, Suits 200,Seattle Federal Office Suildin . (913)551-5462.TTY Number.(913)551- g Wisconsin State Office 6972 9o9 First Avenue.Seattle.WA 98104-1000, Suite 1380.Henry S.Reuss Federal Plaza, Nebraska State Office (206)220-5102,TTY Plurnber.(206)220- 310 West Wisconsin Avenue.Milwaukee. Executive Tower Centre,10909 Mill Valley 5185 Wl S3203-2289,(414)297-3214.TTY Road.Omaha.NE 68154-3955.(402)492- 1FR�97-13728 Filed 5-23-07;8AS ern) Number.(414)297-3123 3100,TTY Number.14021492-3183 BRIM CODE 42io-r-41