TABLE OF CONTENTS

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CHAPTER 1. INTRODUCTION

1-1. Purpose 1-1

1-2. Applicability 1-1

1-3. Definitions 1-1

1-4. General Legislative and Financial Provisions 1-6

1-5. Use of Community Development Block Grants 1-7

1-6. Inapplicability of Section 213 of Housing and

Community Development Act of 1974 1-8

1-7. Applicability of Executive Order 12372 1-8

1-8. Uniform Administrative Requirements 1-8

CHAPTER 2. ELIGIBLE COSTS

2-1. Physical Improvement Costs 2-1

2-2. Cost Guidelines 2-2

2-3. Management Improvement Costs 2-4

2-4. Relocation Costs 2-11

2-5. Correction of Development Deficiencies 2-11

2-6. Planning Costs 2-12

2-7. Administrative Costs 2-13

2-8. Lead-Based Paint Testing and Abatement Costs 2-15

2-9. Physical Accessibility Costs 2-15

2-10. Demolition, Conversion, and Related New

Development Costs 2-15

2-11. Homeownership Projects 2-16

2-12. Use of Development Accounts 2-16

CHAPTER 3. APPLICATION PROCESSING

3-1. Introduction 3-1

3-2. Fund Assignment 3-1

3-3. Notification of Fund Availability 3-1

3-4. Consultation 3-1

3-5. Comprehensive Plan for Modernization (CPM) 3-2

3-6. CIAP Application 3-3

3-7. Eligibility Review 3-5

3-8. Processing Groups 3-7

3-9. Project Viability Review 3-8

3-10. Technical Review 3-10

3-11. Joint Review Selections 3-12

3-12. PHA Notification 3-13

3-13. State Notification 3-14

3-14. Scheduling and Waiver of Joint Reviews 3-15

3-15. PHA Preparation for Joint Review 3-16

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3-16. Field Office Preparation for Joint Review 3-18

3-17. Purpose, Conduct and Duration of Joint Review 3-18

3-18. Joint Review Coverage 3-19

3-19. Comprehensive Modernization Approach 3-23

3-20. Additional Funds for Previously Approved

Comprehensive Modernization 3-25

3-21. Limitations on Special Purpose Modernization 3-26

3-22. Environmental Review 3-27

3-23. Funding Decisions 3-28

3-24. Submission of Budget 3-30

3-25. Field Office Approval/Disapproval Letter 3-31

3-26. Fast-Tracking Emergencies 3-33

CHAPTER 4. FUND RESERVATION AND ACC AMENDMENT

4-1. Financial Controls FFYs 1977-1986 4-1

4-2. Financial Controls FFY 1987 and Subsequent

Years 4-3

4-3. Preparation of Program Approval Documents 4-3

4-4. Program Approval and Fund Reservation 4-3

4-5. Transmittal of HUD Notification 4-5

4-6. Distribution of Approved Documents 4-5

4-7. Annual Contributions Contract Grant Amendment 4-6

4-8. Special Requirements for Homeownership

Projects 4-7

4-9. Special Requirements for Section 23 Leased

Housing Bond-Financed Projects 4-9

4-10. Declaration of Trust 4-11

CHAPTER 5. RESIDENT/HOMEBUYER CONSULTATION AND

INVOLVEMENT REQUIREMENTS

5-1. Resident Consultation 5-1

5-2. Homebuyer Consultation 5-2

5-3. Resident/Homebuyer Involvement 5-3

CHAPTER 6. OTHER PROGRAM REQUIREMENTS

6-1. Civil Rights Compliance 6-1

6-2. Minority and Women\'s Business or Indian

Enterprise Opportunity 6-3

6-3. Environment 6-5

6-4. Flood Insurance 6-5

6-5. Lead-Based Paint Poisoning Prevention 6-6

6-6. Physical Accessibility and Nondiscrimination

Based on Handicap 6-6

6-7. Relocation and Acquisition 6-6

6-8. Energy Conservation 6-14

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6-9. Wage Rates 6-14

6-10. Insurance 6-17

CHAPTER 7. IMPLEMENTATION

7-1. HUD-Established Thresholds and PHA

Certifications 7-1

7-2. Project Implementation Schedule 7-1

7-3. PHA Staffing 7-4

CHAPTER 8. ARCHITECTS/ENGINEERS

8-1. Determination of Need 8-1

8-2. Selection Process 8-1

8-3. Form of Agreement 8-3

8-4. Contract Cost 8-3

8-5. HUD-Established Threshold 8-4

8-6. PHA Certification 8-5

8-7. HUD Review and Approval 8-5

CHAPTER 9. PROCUREMENT AND CONTRACT ADMINISTRATION

Section 1. General

9-1. Introduction 9-1

9-2. Methods of Procurement 9-1

9-3. Procurement Requirements 9-2

Section 2. Bid Advertisement

9-4. PHA Preparation 9-2

9-5. Bid Package 9-7

9-6. HUD-Established Threshold 9-7

9-7. PHA Certification 9-9

9-8. HUD Review and Approval 9-9

9-9. Invitation for Bids 9-10

Section 3. Contract Award

9-10. Bid Opening and Evaluation 9-12

9-11. PHA Submission and Certification 9-14

9-12. HUD Review and Approval 9-15

9-13. PHA Contract Award 9-17

Section 4. Construction Contract Administration

9-14. PHA Responsibilities 9-19

9-15. HUD Responsibilities 9-20

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9-16. Subcontractors 9-20

9-17. Contractor Payroll 9-20

9-18. Construction Progress Schedule 9-21

9-19. Schedule of Amounts for Contract Payments 9-21

9-20. Contract Payments 9-22

9-21. As-Built Drawings 9-23

9-22. Shop Drawings and Materials 9-23

9-23. Contract Modifications 9-24

9-24. HUD Review and Approval of Contract

Modifications 9-27

9-25. Time Extensions 9-28

9-26. Disputes and Claims 9-30

9-27. Liquidated Damages 9-31

Section 5. Contract Completion and Settlement

9-28. Early Occupancy 9-31

9-29. Final Inspection 9-32

9-30. Settlement Documents 9-33

9-31. PHA Submission and HUD Approval 9-33

9-32. Payment to Contractor 9-34

9-33. Warranty Inspections 9-35

Section 6. Contracts for Management Improvements and

Other Professional Services

9-34. Determination of Need 9-35

9-35. Selection Process 9-35

9-36. HUD-Established Threshold 9-37

9-37. PHA Certification 9-38

9-38. PHA Submission and HUD Approval 9-38

9-39. Abandonment or Termination 9-40

CHAPTER 10. MONITORING AND EVALUATION

Section 1. General

10-1. Introduction 10-1

10-2. PHA Responsibilities 10-1

10-3. HUD Responsibilities 10-1

Section 2. Fund Requisitions

10-4. General 10-2

Section 3. Quarterly Progress Reports

10-5. PHA Submission 10-2

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10-6. HUD Review and Action 10-3

10-7. Modernization Quarterly Reporting System

(MQRS) 10-4

10-8. Time Extensions and Use of Leftover Funds 10-5

10-9. Fund Expenditures 10-8

Section 4. Budget Revisions

10-10. Total Funding Limitation 10-9

10.11. HUD-Established Threshold 10-9

10-12. PHA Certification 10-10

10-13. HUD Review and Approval 10-11

10-14. Offsets between Work Items or Projects 10-12

Section 5. On-Site Inspections

10-15. Inspections by PHA 10-12

10-16. Inspections by Architect/Engineer 10-13

10-17. Monitoring by HUD 10-13

Section 6. Corrective Action

10-18. HUD Follow-Up 10-15

10-19. HUD Action 10-15

CHAPTER 11. CANCELLATION OR RECAPTURE OF CIAP FUNDS

11-1. Introduction 11-1

11-2. Definitions 11-1

11-3. Current Fiscal Year Cancellations 11-1

11-4. Prior Fiscal Year Recaptures 11-2

CHAPTER 12. FISCAL CLOSEOUT OF MODERNIZATION PROGRAMS

12-1. Introduction 12-1

12-2. Final Budget Revisions 12-1

12-3. PHA Submission of Final Quarterly Report and

Actual Modernization Cost Certificate 12-1

12-4. HUD Review 12-1

12-5. Audit Verification of Actual Modernization

Cost Certificate 12-2

12-6. HUD Approval of Actual Modernization Cost

Certificate 12-2

12-7. Recaptures as Part of Forgiveness 12-4

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APPENDICES

1\. Comprehensive Improvement Assistance Program Regulation,

24 CFR Part 968

2\. Use of CIAP Funds for Drug Elimination Activities

3\. Listing of Development Accounts That May Be Used in the

Comprehensive Improvement Assistance Program

4\. Listing of Development Accounts That May Not Be Used in the

Comprehensive Improvement Assistance Program

5\. Form HUD-52824, Five-Year Funding Request Plan

6\. Form HUD-50070, PHA Certification for a Drug-Free Workplace

7\. Form HUD-52820, PHA/IHA Board Resolution Approving CIAP

Application

8\. Joint Review Checklist

9\. Form HUD-52825, Comprehensive Assessment/Program Budget

10\. Form HUD-52823, Project Financial Forecast

11\. Form HUD-52541, Project Accounting Data

12\. Forms HUD-53009A, B, C, D, Modernization Project Grant

Amendment to Consolidated Annual Contributions Contract

13\. Reserved

14\. Wage Decision Guide

15\. Uniform Administrative Requirements for Grants and

Cooperative Agreements to State and Local Governments; 24

CFR 85.36, Procurement, and 24 CFR 85.37, Subgrants.

16\. Sample Modernization Contract Status Control Log

17\. Form HUD-52826, Schedule/Report of Modernization Expenditures

18\. Monitoring Checklist

19\. Reserved

20\. Reserved

21\. Form HUD-53001, Actual Modernization Cost Certificate

22\. Comprehensive Plan for Modernization

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LIST OF REPORTING REQUIREMENTS

I. Public Use Forms/Reports

Form/Report OMB Clearance

Number Title Number

None Evidence of Tenant Consultation 2577-0048

None Evidence of Homebuyer Consultation 2577-0048

None Evidence of Local Official

Consultation 2577-0048

None Management Needs Assessment 2577-0044

HUD-52824 Five-Year Funding Request Plan 2577-0044

HUD-52825 Comprehensive Assessment/Program

Budget 2577-0044

None Narrative Statement on Technical

Review Factors 2577-0044

None Replacement Reserve Estimate 2577-0044

HUD-52823 Project Financial Forecast 2577-0044

None Listing of Participating Homeownership

Units/Costs 2577-0044

None Modernization Organization and

Staffing Plan 2577-0044

None PHA Report on Local Compliance with

Cooperation Agreement 2577-0044

HUD-50070 PHA Certification for a Drug-Free

Workplace 2577-0044

HUD-52820 PHA/IHA Board Resolution Approving

CIAP Application 2577-0044

HUD-52827 Physical Needs Assessment 2577-0047

None Certificates of Insurance 2577-0046

HUD-2516 Contract and Subcontract Activity Report

for Public and Indian Housing Programs 2577-0088

None Bidding Control Record 2577-0039

HUD-5371 Request for Acceptance of

Subcontractor 2577-0039

None Register of Change Orders and Time

Extensions 2577-0039

None Disputes and Claims Records/

Findings for Liquidated Damages/

PHA Contract Report 2577-0039

HUD-5372 Construction Progress Schedule 2577-0039

HUD-51000 Schedule of Amounts for Contract

Payments 2577-0039

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Form/Report OMB Clearance

Number Title Number

HUD-52826 Schedule/Report of Modernization

Expenditures 2577-0049

None Narrative Report on Management

Improvements 2577-0049

HUD-53001 Actual Modernization Cost

Certificate 2577-0049

None Request for Proposal for Professional

Services Relating To Management

Improvements 2577-0049

None Project Implementation Schedule 2577-0065

HUD-51001 Periodical Estimate for Partial

Payment 2577-0025

HUD-51002 Schedule of Change Orders 2577-0025

HUD-51003 Schedule of Materials Stored 2577-0025

HUD-51004 Summary of Materials Stored 2577-0025

HUD-2530 Previous Participation Certificate 2502-0118

HUD-51915 Agreement Between Owner and

Architect 2577-0015

HUD-5369 Instructions to Bidders Exempt

HUD-5370 General Conditions 2577-0094

HUD-5370A Supplementary Conditions of the

Contract for Construction

(Non-routine Maintenance Exempt

HUD-52554 Supplement to the General Conditions

of the Contract for Construction Exempt

HUD-9009 General Certificate 2577-0033

HUD-53009A Modernization Project Grant Amendment

to Consolidated Annual Contributions

Contract for non-Indian rental and

homeownership projects Exempt

HUD-53009B Modernization Project Grant Amendment

to Consolidated Annual Contributions

Contract for Section 23 Leased Housing

Bond-Financed Projects Exempt

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Form/Report OMB Clearance

Number Title Number

HUD-53009C Modernization Project Grant Amendment

to Consolidated Annual Contributions

Contract for Indian rental projects Exempt

HUD-53009D Modernization Project Grant Amendment

to Mutual Help Consolidated Annual

Contributions Contract Exempt

HUD-52190B Declaration of Trust (Non-Indian

Grants) Exempt

HUD-52190C Declaration of Trust (Indian Grants) Exempt

II\. Internal Forms/Reports

Form/Report HUD Clearance

Number Title Number

None Field Office Exception Report on All

Modernization Approved After FFY

1974 HI00503R

None Regional Office Summary Report on

All Modernization Approved After

FFY 1974 HI00503R

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