Arkansas Administrative Code › Agency 109 - Arkansas Development Finance Authority › Division 04 - Multi-Family Housing › Rule 109.04.13-005 - 2013 HOME Compliance Manual

Current through Register Vol. 49, No. 6, June, 2024
Chapter
			 1:
HOME Monitoring Basics
APPLICABILITY OF THE 2013 HOME FINAL RULE
The 2013 HOME Final Rule, published July 24, 2013, is
				applicable to projects for which HOME funds are committed on or after August
				23, 2013, with the exception of the following provisions:
The change in the definition of commitment at §92.2 that
				no longer permits non-specific reservations of funds to CHDOs as a commitment
				becomes effective 90 days after the publication date of the Final Rule, on
				October 22, 2013. This provision will be implemented by HUD for deadlines that
				occur on or after January 1, 2015.
The requirement that the PJs will adopt homebuyer program
				policies becomes effective six months after publication date of the Final Rule,
				on January 24, 2014. [§92.254(f)]
The requirement that PJs develop and follow written policies
				and procedures and implement a risk-based monitoring system becomes effective
				12 months after publication of the Final Rule, on July 24, 2014.
				[§92.504(a)]
The requirement for financial oversight of HOME-assisted rental
				projects with 10 or more HOME units during the affordability period will become
				effective 12 months after the publication date of the Final Rule, on July 24,
				2014. [§92.504(d)(2)]
The separate 5-year deadline for expenditure of CHDO set-aside
				funds becomes effective on January 1, 2015, and will be implemented by HUD for
				all deadlines that occur on or after that date. [§92.500(d)(1)(C)]
Revisions to the property standards apply to projects to which
				funds are committed 18 months after the publication date of the Final Rule, on
				January 24, 2015. [§92.251]
Section
			 1.
What is Monitoring?
Monitoring refers to the process and tools that HOME
				participating jurisdictions (PJs), including ADFA, use to ensure that
				compliance is achieved and maintained. Monitoring can be done internally to
				ensure that an organization itself is in compliance and it can be external,
				involving various types of reviews of organizations and projects typically
				using monitoring tools such as checklists. The end result of monitoring is an
				understanding of which areas are in compliance with applicable rules and
				requirements and which are not.
A.
Parties to Monitor
It is AGFA'S responsibility to monitor all entities that
				receive HOME funds (generally referred to as Recipients). The various
				Recipients ADFA must monitor include the following:
*
State Recipients.
State Recipients are units of
				local government designated by ADFA to receive HOME funds from its HOME
				allocation. ADFA, as the State PJ, is responsible for monitoring its State
				Recipients. State Recipients are monitored for administrative, financial,
				program, and project-related compliance.
*
Subrecipients.
The definition of subrecipient is
				amended in 2013 to clarify that HOME subrecipients receive funds to carry out
programs
(e.g., downpayment assistance, homeowner
				rehabilitation, or tenant based rental assistance programs, etc.) and not to
				undertake specific
projects.
(Entities that carry out projects
				are generally owners, developers, or sponsors.
* Community Housing Development Organizations (CHDOs).
CHDOs are special nonprofits that own, sponsor, and/or develop
				affordable rental or homebuyer housing under minimum of 15 percent of ADFA's
				HOME Program funds. To be considered a CHDO, the nonprofit must meet certain
				qualifying criteria. CHDOs are not subject to Federal uniform administrative
				requirements, except for §84.21 which dictates general financial
				management standards. Finally, they are eligible for operating assistance and
				pre-development loans. ADFA is required to monitor CHDOs for all of the
				above.
* Owners, Developers, and Sponsors.
Owners/developers/sponsors may either be for-profit or nonprofit
				organizations that receive funds to undertake affordable housing projects. They
				do not administer programs, but simply receive HOME funds to develop a project.
				If they are not CHDOs, they are monitored for compliance with project activity
				requirements only. ADFA and its Recipients monitor developers, owners, and
				sponsors, and primarily focus on performance and regulatory compliance
				(including eligible costs, labor standards, etc.). These entities differ
				slightly from CHDOs, but some of the same monitoring occurs.
* Contractors.
Contractors are entities that are
				competitively procured to carry out a specified scope of work for a specified
				price. They can administer programs and/or provide necessary goods and services
				to ADFA or one of ADFA's Recipients. Contractors must maintain records and
				reports demonstrating compliance with HOME Program regulations and written
				agreements. ADFA monitors contractors for performance under agreements as well
				as compliance with applicable requirements.
Exhibit 1-1: ADFA Monitoring
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