HomeMy WebLinkAboutAgenda - 03-18-1997 - 10a t
i
ORANGE COUNTY
BOARD OF COMMISSIONERS
Action Agenda
Item No. /p
ACTION AGENDA ITEM ABSTRACT
Meeting Date: March 18, 1997
SUBJECT: Request for Impact Fee Reimbursement - Covenant Place
DEPARTMENT: Housing and Community Development PUBLIC HEARING: (Y/N)
BUDGET AMENDMENT: (Y/N)
ATTACHMENT(S): INFORMATION CONTACT:
Letter from UCC Living Centers, Inc. Board Tara L. Fikes
of Directors TELEPHONE NUMBERS: -- eat. 2490
Firm Commitment Application Hillsborough 732-8181
Program Regulations Chapel Hill 968-4501
Durham 688-7331
Mebane 227-2031
PURPOSE:
To receive as a report a request from United Living Centers, Inc. requesting reimbursement of
$120,000 in school impact fees.
BACKGROUND:
UCC Living Centers, Inc., a 501(c)(3)organization is planning to building 40 rental units for elderly
citizens with very low incomes through the HUD sponsored Section 202 Program. The units will be
built in Carrboro at the corner of Culbreth and Smith Level Roads. The property would remain
affordable to the target population for at least 20 years.
The U.S. Department of Housing and Urban Development(HUD)has issued a firm commitment to
UCC Living Centers, Inc. in the amount of approximately$3 million dollars. The official closing will
take place in early April after site plan approval by the Town of Carrboro and the acquisition of a
building permit. A copy of the HUD approved Firm Commitment Application with budget details is
attached.
This application does not include the school impact fees as an construction related expense. The
regulations governing the 202 Program do not detail the eligible construction related costs under this
program, thus, it is unclear whether HUD would approve the inclusion of impact fees as an eligible
expense. A copy of the regulations governing the HUD 202 Housing for the Elderly is enclosed for
reference. Because a firm commitment has been issued, re-submission of the funding application to
include the cost of impact fees is not feasible at this time.
RECOMMENDATION(S):
The Manager recommends receiving the report as information.
2
A Congregation of the United Church of Christ
January 27, 1997 R e ce l VF
John Link, County Manager JAN 2 9 1997
Orange County Manager's Office
208 S. Cameron St. Managers Of i. ,-
Hillsborough, NC 27278
UNITED Re: School Impact Fee Reimbursement for Covenant Place
CHURCH Forty (40) units of Supportive Housing for Elderly Citizens
with very low incomes through the Section 202 program of
OF HUD-- sponsored by a 501(c)(3) nonprofit organization
CHAPEL composed of two Orange County congregations.
HILL
Dear Mr. Link:
We, UCC Living Centers, Inc., are requesting that Orange County join with us in
.providing supportive housing for senior citizens (62 and above) with very low
incomes (less than$18,300)by reimbursing the school impact fee on Covenant
Place, a 40-unit HUD 202 facility. It is the use of HUD 202 monies that
establishes the age and income criteria for residents -- more than 62 years of age
and annual incomes less than $18,300. The school impact fee for building 40 units
of housing for elderly citizens with very low incomes will total $120,000.
UCC Living Centers, Inc. is the partnership of two United Church of Christ (UCC)
congregations based in Orange County and an UCC-related organization, the
United Church Retirement Homes, of Newton, N.C. We are a 501(c)(3) nonprofit
corporation.
Three years ago our denomination (the United Church of Christ) was ready to sell
land which it owned in Carrboro at the corner of Culbreth and Smith Level Roads.
New Covenant Christian Church(UCC) and United Church of Chapel Hill (UCC)
came together believing this land could serve our community and sought a way to
Chapel Hill,NC West Cameron Ave. be good stewards of this opportunity.
Ch
27516-2702
Ministers, Jill Edens With the assistance of an experienced partner, United Church Retirement Homes,
Richard Edens Inc., we incorporated and made application for Department of Housing and Urban
Development funds under the Section 202 program for supportive housing for
Parish House Office senior citizens with very low incomes. The Orange County Commissioners wrote
(Mailing Address)
205 Wilson Street a letter of support to HUD that accompanied the original application in 1995.
Chapel Hill,NC
27516-2757
(919)942-3540
3
Letter to John Link
Reimbursement of Impact Fees
January 27, 1997
Page 2
Application was also made for a loan through HUD's 232 program
for constructing an adult care facility on the site as well. Both
applications were approved. Covenant Place (the HUD 202 facility
with 40 units for senior citizens with very low incomes) will be
complemented by Shepherd House (an 80-bed adult care facility).
In 1995 we were awarded a grant that will enable the construction
See attachment of 40 units of supportive housing under the HUD Section 202
for a floor plan for
the 202 facility. program. The total footage of each unit is less than 600 square
Each one feet. All forty are one-bedroom units. Four of the forty units are
bedroom unit has for disabled senior adults. The Adelaide Walters' apartments in
less than 600 sgft.
Chapel Hill are an example of a Section 202 facility.
The Section 202 program provides the funds to construct the
Very low income facility and continues to provide money to supplement the rent
are served costs such that no one pays more than 30% of their adjusted
because tenants
have incomes with income. The rent is established by HUD and HUD provides
less than 50%of supplements such that no one pays more than 30% of their adjusted
median income income. The provision of rent supplements allows one to serve
no more t but pay with very low incomes 50% and below of the median
no more than people ry (
30%of income. income). To qualify for acceptance into these apartments or this
program a person has to meet HUD criterion which is at or below
$18,300 for a single individual.
Experience at The experience at Adelaide Walters Apartments(which is a 24-unit
Adelaide Walters facility) is that they serve people below the $18,300 income
apartments criterion. Their waiting list includes people with an income range
confirm purpose from$3,600 - $15,500. The need for housing for seniors with very
and need.
low incomes is evident with a waiting list that is several years long.
4
Letter to John Link
Reimbursement of Impact Fees
January 27, 1997
Page 3
Understanding of "According to the 1990 census, there are approximately 3024
need from
supporting senior citizens with low-incomes in Orange County -- with 440 in
documents from Chapel Hill-Carrboro. The combined Section 8 and public housing
the 1995 waiting lists in Orange County has 1218 applicants. Given that
HUD.
application to 22% of those in the low and very low income brackets are elderly,
it may be surmised that there are 125 elderly adults in immediate
need of supportive housing, In a recent publication by the NC
Housing Finance Corporation, Orange County ranked number one
in the percentage of low-income households with housing problems
in for all North Carolina counties."
UCC Living UCC Living Centers, Inc. got involved in order to help create and
Centers organized provide housing for elderly citizens whose income cannot provide
to respond to a
community need adequate, safe and affordable housing. We are a local, Orange
and a land County, nonprofit [501(c)(3)], faith-based group that hits been able
opportunity. to leverage opportunity and HUD funds to create housing. HUD
However,it
cannot be an funds for construction and rent subsidies do not include funds for
instrument for impact fees. Therefore, we need your assistance with the Orange
housing without
the county's County school impact fees. Without your participation in this
participation. venture, we cannot serve elderly citizens in this community with
low incomes.
The capital advance from HUD for the building of 40 one-bedroom
This 202 facility units is $2,883,000. In addition, there is a Project Rental
will bring Assistance Contract and Budget Authority of$92,700 and
million HUD D g y
dollars into the $463,500 respectively which make the rental supplements possible.
county for The Project Rental Assistance Contract will be for a term of five
housing
assistance to very years. At that time it will be renewed. Over the next five years the
low income senior U.S. Department of Housing and Development will invest
citizens. $3,439,200 into housing for senior citizens with very low incomes.
5
Letter to John Link
Reimbursement of Impact Fees
January 27, 1997
Page 4
Project plans are Our construction plans have been approved by the Greensboro
nearing their final office of HUD. The have been sent to Washington and we
approval at HUD y �
and Carrboro. anticipate hearing of final approval within the next few weeks.
Once we have that notice from HUD we have sixty days to have a
building permit and show that there is no incumbrance on the
project. Closing with HUD is anticipated at the end of March or
mid April.
Our building plans are being reviewed by Carrboro this month. We
Occupancy anticipate a building permit from Carrboro by late February or early
anticipated in May March. This corresponds with the HUD schedule with whom we
1998. should be concluding our final commitment in March or mid-April
at latest. We expect construction to begin this spring with
occupancy in May of 1998.
Commitment from For closing with HUD in late March or early April we will need a
Orange county to commitment from Orange County to reimburse the$120,000 in
reimburse the
school impact school impact fees. We would be happy to discuss this project and
fees needed. our request with any persons you think appropriate. Thank you.
Sincerely, i
e
Tye Hunter Nancy A ater
Co-Chairs, UCC Living Center Board of Directors
Att: Floor plan and example of a unit at Covenant Place
cc: Orange County Commissioners
Tara Fikes, Housing and Community Development Director
6
O.S DEPARTMENT OF SOUSING AND URBAN DEVELOPMENT
OFFICE OP SOUSING CAPITAL ADVANCE
RENTAL HOUSING
PROJECT INCOME ANALYSIS AND APPRAISAL FIRM
PROJECT NAMES UCC LIVING CENTER PROJECT NUMBERS 053-HE051
A LOCATION AND DESCRIPTION OF PROPERTY --
1.STREET NO. 2.STRZXTt 3.MUNICIPALITY: 4A.CENSUE TRACT 4S.PLACE CODES 5.COUNTY2
1000 CULBRETE ROAD CARRSORO 13500 13500 ORANGE
6.STATE & ZIP CODEt 7. TlPE OF PROJECls 0.NUMIBOt OF STOR IRS t 9.FOUWDATION TYPES
MC 27516 WALK-OP 3 STANDARD
9A.BASEMEXT FLOORS 10.PROP./EXISTS 11.NUMBwt OF UNITSs 12.NUM. BLDGSt
PROP 40-REV. O-NON-REV. 1
13.ACCESSORY STRUCTURESt NONE 13A.LIST RIC. FACET==St NOME
SITE INFORNATIONt BUILDING INFORMATION*
14.DIMENSIONSs 0.00 FT. BY 0.00 FT. OR 134630 SQ. FT. 16.YR BUILT: 0 16A.CONV.
15.ZONINGS R-10/R-15 17.512RUCTURAL SYSTEMs 17A.FLOOR SYSTSMs
MOOD MOOD
179.EXTERIOR FIEISE* iS.HEATIM/AC- SYSTEM
MASONRY i MOOD IEIE
B INFORMATION CONCERNING LAND OR PROPERTYs
19.DATE ACQUIREDt 20.PURCBASE PRICES 21.ADDITIONLL COSTSs 22.GROUND RENT: 23A.TOTAL COST 23B.OUTSTAMD. SAL. 24.RELATIONS
04/25/94 $ 220,000 $ 0 $ 0 $ 220,000 $ 215,000 BUSINESS
25.UTILITIES DIST. FROM SITE 26.DNUSUAL SITE CONOITIONSt
WATER PUBLIC 0 -CUTS -PTI.LS -ROCK FORMATION -EROSION X-NONE
SEWER PUBLIC 0 -POOR DR&Vill6E -HIGH WATER TABLE -RETAINING WAIL-3
-OTC -07F SITE IlOmoyEm TS
C ESTIMATE OF INCOMBs
27. NUMBER OF UNITS RENT. L3:V. AREA COMPOSITION OF UNIT OPERATING AMOUNT TOTAL MON. OPERATING AMOUNT
37 564 1 BEDROOM, 1 BATS $ 342.00 $ 11,654
3 673 1 BEDROOM, 1 BATS $ 342.00 $ 1,026
0 0
0 0
0 0
0 0
0 0
0 0
20. TOTAL ESTIMATED OPERATING AMOUNT FOR FOR ALL UNITS $ 13,680
29.NUMBER OF PARKING
0 ATTENDED OPEN SPACES 0 S $ 0 PER MONTH $ 0
36 SELF PARK COVERED SPACES 0 1 $ 0 PER MONTE $ 0
30.COMMERCIAL/HTSC INCOME AREA-GROUND LEVEL 0 SF/UNIT $ $ 0.00 PER SP/UNIT/MO.$ 0
OTHER LEVELS 0 SF/UNIT 1 $ 0.00 PER SF/UNIT/MO.$ 0
LAUNDRY AREA SQ. PT.s 0 NUMBER OF UNITS: 40 X UNIT MONTHLY RENT: $ 0.00 $ 0
31. TOTAL ESTIMATED GROSS PROJECT OPERATING AMOUNT AT 1000 OCCUPANCY S 13,680
32. TOTAL ANNUAL OPERATING AMOUNT (ITEM 31X12 MONTHS) $ 164,160
32A. LINE 32 ( 164,160) x 0.001 OCCUPANCY $ 164,160
33.GROSS FLOOR AREAL 34.NET RENTABLE RESIDENT. AREAS 35.NET RENTABLE COMMERCIAL AREAS
34,672 SQ. FT. 22,087 SQ. FT. 0 SQ. FT.
36.NON-REVENUE PRODUCING SPACE
NO. UNITS LIV. AREA COMPOSITION OF UNIT IT" OF EMPLOYEE
0 0
0 0
D_EQUIPMENT MO SERVICES INCLUDED IN RENTS - -
37.EQVIPM3NTt 38.6E1MCBSt 39.SPECIAL ASSESSMENTS
X-RANGES -DISPOSAL GAS: -SEAT -SOT WATER -PAYABLE
X-REFRIG -DISHWASHER -COOKING -AIR CONDITIONING -NON-PAYABLE
X-AC CENT/SLEEVE X-CARPET B. PRINCIPAL
X-XIT BIT PAN X-DRAPES/BLINDS/RODS ELECT: X-BRAT X-HOT WATER BALANCE $ 0
X-LAUNDRY PAC. -SWIMMING POOL X-COOKING X-AIR CONDITIONING C. ANNUAL PAYMENT $ 0
-OTHERS -TENNIS COURT X-LIGHTS D. REMAINING TERMS 0 YEARS
OTHER FUELS -SEAT -HOT WATER..
RUN DATE/TINE: 09/17/96 / 0Ss38t55 ?ORM °_UD-92264-(2-881
PROJECT NAME: OCC LIVING CENTER PROJECT NUMBER1 053-BR051 PAGES 2 7
E. ESTTN)SS OF ANNUAL EXPENSE& G. REPLACEMENT COSTS
ADMINISTRATIVE- 36A. UNUSUAL LAND IMPROVEMENTS.......$ 0
` 1. ADVERTISING......................$ 1,752 36B. OTHER LAND DWEOVjDat=.........$ 296,875
2. MANAGEMENT.......................$ 32,844 36C. TOTAL LAUD IMPROVEMENTS........................$ 296,875
3. OTHER............................$ 6,569 STRUCTURES
4. TOTAL AD1 1211281RtATIOE.....................$ 41,165 37. MAU BUILDINGS..................$ 1,711,746
OPERATING 36. ACCESSORY BUILDINGS.............$ 0
5. ELEVATOR MAIN. EXP...............$ 2*0190 39. GARAGES.........................$ 0
6. FUEL(HHITING 40. ALL OTHER BUILDINGS.............$ 0
DOMESTIC NOT MATER...............] 0 41. TOTAL STRUCTURES......................$ 1,711,746
T. LIGSTING/MISC POWER..............$ 34,158 42. GENERAL REQUIREMENTS..........................$ 140,603
S. WATER............................$ 9,853 43. BLUWZRS GEE. OVERHEAD
9. GAS..............................$ 0 4 2.0000 1 $ 42,985
10. GARBAGE 4 TRASH..................$ 1,095 44. SUILDBRS PROFIT
11. PAYROLL..........................$ 4,379 1 6.0000 $ 128,953
12. OTHER............................5 2,190 45. ARCH. PEE-DESIGR
13. TOTAL OPERATING............................$ 53,865 1 3.8774 t $ 90,000
14. DECORATING.......................$ 6,569 46. ARCH. FEE-SUPVR.
15. REPAIRS..........................$ 8,758 1 1.2925 1 $ 30,000
16. EXTERMINATING....................$ 1,533 47. BOND PREMIUM....................$ 23,957
17. INSURANCE........................$ 6,569 48. OTHER-TAP FEES 4 COST CERT...... 86,500
18. GROUND EXPENSE...................$ 4,379 49. TOTAL FEES................................$ 402,395
19. OTHER............................$ 4,379 50. TOT.POR ALL ZWRMTS(LINE 36C,41,42,49).........$ 2,551,619
20. TOTAL MAINTENANCE..........................$ 32,187 51. COST PER GROSS SQ. PT..........$ 73.59
21. REPLACEMENT RESERVE(.0060xT0TAL) °2. ESTIMATED CONSTRUCTION TIME...MONTHSs 12
STRUCTURES LINE 41....................$ 10,270 CARRYING CHARGES A FINANCING
22. TOTAL OPERATING EXPENSE...................$ 137,467 53. INT. 14 MOB. / 0.001
TAXES ON $ 0.............$ 0
23.-REAL ESTATES EST. ASSESSED 34. TAXES...........................$ 0
VALUE S 0 4 55. INSURANCE.......................$ 5,000
$ 0 PER $1000.........$ 0 56. FBA NTG. INS. PRC. ( 0.50=)....$ 0
24. PERSONAL PROP. EST ASSESSED 57. PBA EXAM FEE ( 0.301)..........$ 0
VALUE $ 0 1 58. PEA INSPECT. Z ( 0.501)......5 0
$ 0 PER $1000.........$ 0 59. FINANCING FEE ( 0.00%)..........$ 0
25. EMPL. PAYROLL MAX................$ O 60. CONTINGENCY ( 2.00%)..........$ 57,906
26. OTHER-SERVICE COORDINATOR .......$ 17,000 61. FNMA/GNNA FEE ( 0.00%)..........$ 0
27. OTHER-SERVICES .......$ 1,800 62. TITLE 6 RECORDING...............$ 3,500
28. TOTAL TAXES...............................$ 18,800 63. TOTAL CARRYING CHGS 6 FINANCING...............$ 66,406
29. TOTAL EXPENSES (ATTACH WORXSHEET)..............$ 156,287 LEGAL, ORGANIZATION 6 AUDIT FEE
64. LEGAL...........................$ 10,000
202/811 PER UNIT OPERATING AMOUNT 6S. ORGANIZATION....................$ 2,000
329 ($ 156,287) x 1.03 / 12 $ 13,575 66. COST CERTZFICATION,AUDIT FEE....$ 3,000
$ 13,675 / 40-UNITS $ 342.00 67. TOTAL LEGAL,ORGANIZATION,AUDIT................$ 15,000
68. BUILDER AND SPONSOR PROFIT & RISK.............$ 0
PER UNIT OPERATING AMOUNT S 342.00 69. CONSULTANT PEE................................4 42,288
P. INCOME COMPI3TATION 70. SUPPLEMENTAL MANAGEMENT FUND..................$ 0
30. ESTIMATED PROJECT 71. CONTINGENCY RESERVE...........................$ 0
GROSS INCOME (LINE C32 PAM 1)...$ - N.A. - 72.-TOTAL EST DEVELOPMENT COST (EXCL. OF
31. OCCUPANCY (ENTIRE PROJECT) LAND OR OFP-SITE COST)(504.63+67448+49+70+711..$ 2,675,313
PERCENTAGE.......................... N.A. - 73. WARRANTED PRICE OF LAND- J14(3)/
32. EFFECTIVE GROSS INCOME (L30zL31).$ - N.A. - OUTSTANDING DEBT/AS IS VALUE
33. TOTAL PROJECT EXPENSE (LINE 29)..$ - N.A. - 154638 SQ.FT. 1 $ 1.42 PER SQ.FT......$ 220,000
34. NET INCOME TO PROJECT (L32-L33)..$ - N.A. - 74. TOTAL ESTIMATED REPLACEMENT
35. EXPENSE RATIO (LINE 29/LINE 321... - N.A. - COST OF PROJECT (ADD 72 +73)..................$ 2,895,313
RUN DATE/TIMES 09/17/96 / 08&39:37 FORM HUD-92264 (2-88)
8
PROJECT NAME: UCC LAVING CENTER PROJECT NUMBERS 053-REGS1 PAGES 3 I
S. RESERVED
TEIS S3KTIOY IS NO LONGER IN USE
I. 3STIMATE OF OPERATING DEFICIT
PERIODS GROSS INCOME OCCUPANCY % ETFECTIVE CROSS E37ENSES SET INCOME DEBT SEMM. REQMtT DEPI
1. ?IRST $ 164,160 0.001 S 0 S 0 S 0 ; 0 $ 0
2. SECOND $ 164,160 0.001 S 0 S 0 $ 0 S 0 ; 0
TOTAL OPZRATIIMG DEFICIT $ 0
3.
J. PROJECT SITE ANALYSIS AND APPRAISALS
1. IS LOCATION AND NEIGESORSOOD ACCSPTABLE........YEN 6. 2 SITE aCCEPTAXXwg FOR TYPE OF PROJECT PROPOSED UNDER SECTION 202
2. I3 SITE ADEQUATE IN SIZE TOR PROPOSED PROJECT-.YES 7. (37 CmC>®, ACCEPTANCE SUBJECT TO QUALIFICATIONS LISTED 3ZLOW)
3. IS SITE ZONING PERMISSIVE FOR INTENDED ?JSE.....7ES
4. ARE UTILIT3E3 AVAILABLE NON TO SERVE -SE 31^— .IES DATS cT _�S,2CTIONs 10/21/'3
S. 13 TMMX A KkREET AT THIS LOCATION FOR TIM '
RENTS BY COMPARISON S90NN IS SECTION C....... TES INSPECTED BYS ....
STILTS 3YRD
5, VALUE FULLY IMPROVED - 3EE ATTACHED WORES2XXT
LOCATION OF PROJECTS CARRBORO L.Q.Z. NUMBERS 99 322E OT SUBJECT SIZSs 154,635 SQ.FT.
9. VALUE OF SITS FULLY IMPR.OVEDS $ 220,000
10. VALUE 'AS /S' - SEE ATTACHED WORESHEET
11. VALUE OF sITE 'AS-IS' BY COMPARISON: $ 0
12. ACQUISITION COST: (LESS ARMS-LENGTN TRANSACTION)
3UYER: UNITED CHURCH RETIREMENT HONES _ ADDRESS: CRAM HILL, SC
SELLERS NEW COVENANT UNITED CSURCE OF CHRIST ADDRESS: CHAPEL 1111-, IC
DATES 04/25/94 PRICES $ 220,000
SOURCE: COPY OF OPTION IN HOD FILE
13. OTHER COSTSS 14. VALUE OF LiND AND COST CERTIFICATIONS
(1) LEGAL FEES AND ZONING COSTS.........$ 0 (11 TAMt MIREST VALUE OP LAND TULLY IMPROVED (FROM 9 ABOVE).$ 220,000
(2) RECORDING AND TITLE TEES............$ 0 (2) DEDUCT UNUSUAL ITEMS LYCLUDED IN SECTION 0, ITEM 36A....$ 0
(3) INTEREST ON LYVESTHMM..............$ 0 (3) q%RRAITTED PRICE OF LAND FULL? IMPROM (REPLACEMENT COST
(4) OTHER...............................$ 0 ITEMS Z=L=VD-W= ZN LIVE 073)......................$ 220,000
(S) ACQUISITION COST (FROM -12- ABOVE)..$ 220,000 FOR COST PURPOSES-
(6) TOTAL COST TO SPONSOR...............$ 220,000 (3)(A) DEDOC2 COST OF DEMOLITION $ 0 AMID REQ'0
- SEE ATTACHED NOT$ FOR ADDMONAIL INFORNMMON OFT=SITE $ 0 TO BE PAID 31 WOOR OR By
sYSCZAL ASSESSMO;NTH...............................$ 0
(4) 3STIMAT'3 OF 'AS-LS' sY SUVTRAC'ION ?RON :tPROVPA 'TALL'-'.$ 220.000
(S) EST'IM1TE OF '%S-IS' 3Y DIRECT COMPARISON BITE SIMILAR
U3IM?RCVE0 5 ZTt3 (TRAM 11 ABOVE).......................$ 3
(6) 'AS-i5' 3 - on ACQUISITION COST TO SPONSOR
(TROM 13(6) ABC")....................................$ 220,000
(7) COMMISSIONER'S WTZMATED VALUE OF :AND 'AS-IS'
(THE LESSER OF 4 OR S .TROVE)..........................5 220.000
(ZF 'AS-IS, IS MORE THAN 13(6), COMPLETE nFLAM►TION :S REQQIZED.)
• W139M LAAID IS PURCHASED TROM LOCAL GOVERNMENT AGENCY
FOR SPECIFIC REUSE LESSER OF 4,5,OR 5-
RUN DATE/TIMES 09/17/96 / 10x07%06 FORM 3UD-92264 (2-a5)
8A
U.S'. ' DEPARTMENT OF HC ..G AND URBAN DEVELOPMENT
• FORM 92264/92264-A REMARKS
AND COMmENTS SHEET: 1
PROJECT NUMBER: 053-EE051 - UCC LIVING CENTER DATE: 08/29/96
COST TRENDED TO 8/1/96. OTHER FEES: TAP FEES- $78,000, COST CMq.0. FE -
$3, 000, TOPO & SOIL TLST-$5,500. CONTRACTORS ESTI31A'TE OF COST USED- PER
MEMO ON FILE FROM THE DI ESTOR OF HOUSING. AREAS: PARKING-10368.
' 1
9
PROJECT NAMES UCC LIVING CENTER PROJECT NUMB Rs 053-NEOS1 PAGES 4
X. INCOME APPROACH TO VALUES
1. ESTIMATED R=9LZNXNG ECONOMIC LIFE 0 YEARS S. VALIIE OF LELM FEa (3? ANY)
ZNCOME APPROACH TO VALUES GROUND REST $ 0 / CAP. RATE 0.00
2. CAPITALIZATION RATE DES BY -OVERALL RATE PROM COMPARABLE PROJECTS VALUE OF LEASZD FEE $ 0
-RATE PROM SAND OF INVESTMENT -CASE FLOW TO EQUITY
3. RATE SELECTED 0.00 1
4. (NET INCOME (LINE r 34)..............$ 0
S. CAPITALIZED VALUE (LINE 4 / L33M 3)..$ 0
L. COMPARISON APPROACH TO VALUES
7. ADDRESS FOR COMPARABLE SALE DATE SALE PRICE NO. UNITS
B. / / $ 0 0
C. / / $ 0 0
S. INDICATED VALUE OF SUBJECT BY COMPARISON: $ 0
APPRAISAL SUMMARY
9. CAPITALIZATIONs $ 0 SUMMATION: $ 2,893,313 COMPARISON: $ 0
mm ?AIR NAR1= VALUE (OR -q"%A=m=T COST) OF 'PEA' PROPERTY, AS Or THE OATS 3ELON, IS S 0
N. TO BE COMPLETED 3Y CONSTRUCTION COST ANALYST: N. :'EIS SECTION NOT =3 USE AT THIS Tim
COST NOT AT7M BUTA= TO DNELLZEG USE
10. PARSING.........................$ 7,200
11. GARAGE..........................$ 0
12. COMMERCIAL......................$ 0
13. SPECIAL. ?.2T. LAND IMPROVEMENTS—$ 0
14. OTHER...........................$ 121,400
15. TOTAL...............$ 128,600
6.4024 %
TOTAL 3ST. COST OP OFF-S= REQUIREMENTS-
16. OFFSIT°.S EST. COST
SANITARY SES+ER $ 0
$ 0
$ 0
$ 0
$ o
$ 0
17. TOTAL OPr-SIT-W...............$ 0
O. REMARKS. CONCLUSIONS AND SIGW TVR°S:
--- SEE AT-AC3ED RE.YARES.;HEFT
(ARC3I--{Cl-�m AL PROCESSOR)
(v)►LaAT2 PJIOCSSSdt) (DATE) E ( ON REVSENmt)
(COST PRO%ZZSSOR) (Dom) L (Cos; EVEM4N1 .
•-- SEE AT—ACHES CONCLUSIONS SHELr'
`(P - R 30US�G(DEVELIOPMZXTl (DATE)
(FIELD OPPICE MANAGER/DEPUTY) (DATE)
RUN DATE/TS.%lZ: 39/17/96 / 10:07:11 FORM 300-92264 (2-09)
U.S. DEYAATMENT Or 30GSi41G 1 "�9A
$VPPLOWNT TO PROJECT AXXZYSX;S �, AND URBAN DEVELOPMZVT /�[ \
oFFTCE Or HOUSING
SECTION/TITLS+ 202 PROCRSSYNG ST%=1 ?"A
CAPITAL ADVANCE
Pnblie Reporting Burden for this project analysis is estimated to average 14 hems per response, including the time for reviewing
instructions, searching existing data sources, gathering and maintaining the data needed, and eomplatiag tad revieriag the
collection of information. send coswents eegatding this burden estimate at any ether aspect of this collection of information,
including suggestions for reducing this burden, to the Rsporte Management officer, Office ofrufozmatien Pal 4&4 ee and
Systems, U.S. Depattueat of Dousing and Urban Development, Washington, D.C. 20410-3600 and to the office of manageeueat and to the
Office of Management and Budget. Papezvmrk Reduction Project (25020331), Washington, D.C. 20303.
be not send this eeonleted fern to either of these addresses.
OAKS OF MORTGAGOR% PROJECT MUMEER: 053-BRO51
FRoiscr NAM06s Um LMV4 CSWM LOCA?TON (STRIET.CITY,STATS)t 1000 C AR=ff ROAD, CARRBOW, NO
TYPE OF DOW-ROWER,
-PRIVATE -PROFIT -PUBLIC -NOW-PROFIT -INSTRUMENTALITY, ETC.
-MANAGEMENT GROUP -SALES COOP. -INVESTOR-SPONSOR -BUILDER/SELLER -LIMITED DISTRIBUTION
TYPE OF PROJECT■
-vzwtAL AOU8INd -NURSING ZONE -NM COaSTRDCTZON -NON-ELRV%T0R
-COOPERATIVE -INTRURNATa CARE FACILITr -REHABILITATION$ -ELEVATOR
-CONDOMINIUM -HOUSING FOR Tan ELDBRY,Y -RLDLgELOPNM -EXISTING
-SINGLE RM oCCUFANCr -MOBILE DOME COURT -90PFL0128'P LOAM -
-BOARD AND CARE -CAPITAL ADVANCE 202/el2 -GROUP BONE
I DffiBRMINATION OF MAXIMUM CAPITAL ADVANCE
CRITdRIA (COL.1) (COL.2) (coL.3)
1. FUND R330vA SON AMOUNT $ 2.89S,300
a. RESER.yED $ 0
3. AMOUNT BASED ON VALVE OR REPLACZHENT3
A. VALUE (REPLACEMENT COSTI FEE SIMPLE S 2,895,313 x 100.00004 $_ 2,895,312
B. (1) yALUE Or IJUUMD FEE 3 0
(-: )- GRAMT/LOAN FUNDS A'e`�'sr+tUTADLE TO R.C. $ 0
(3) EXCESS UNUSUAL LAND IMPROVEME. $ 0
(4) COST CONTAINMENT MONNSGAGE DEDUCTION 4 0
(5) TOTAL LINES 31 TO 34 S 0 x 160.0000% $ 0
C_ UPA235 BALANCE OF SPECIAL ASANSSXn1T $ 0
D. TOTAL LINE 33 PLUS LINER 2C $ 0
E. LINE A MINUS LINE D $ 2,895,300
4. AMOUNT BASED ON LIMITATION PER FAMILY LIMIT:
A. NUMBER OF NO BEDROOM LIMITS 0 z $ 0 $ 0
NUMBER OF ONE BEDROOM UNITS 40 x $ 71,013 $ 2,840,520
--NUMBER or BEDROOM UNITS O : $ 0 ; 0
NUMBER OF TERM BEDROOM UNITS O X $ 0 $ 0
MMM or POUR OR MORE BEDROOM UNITS � 0 x S 0 $ 0
8. COST NOT ATTRIBUTANS TO DWELLING USE $ 328,600 x 1004000% 5 128,600
C. SITE NOT ATTRIBUTABLE TO ONIQSSNG USE $ 14,723 x 100.00001 $ 14,723
D. TOTAL LINES A TER000E LINE C 2,983,843
2. TOTAL NUXAM of SPM31 0 x $ 0 S 0
F. SUM: VALUE OF LiASSD FEE ANp TXNPASD BALANCE OF SPECIAL ASSESSNOEMT(S) $ 0
G. LIM D OR LIES E, WffICEEV= IS APPLICABLE. MINUS LINE F S 2.9X3.800
S. AMOUNT BASED ON DEBT SERVICi.RATIot
A. MORTGAGE INTEREST RATE 0.0000001
S. MORTGAGE INS02ANCR PRENIUM RAT! 0.000000%
C. INITIAL CUR.T1►TL RATE 0.000000%
D. SUM OF ABOVE RATES 0.000000a
E. MET INCOME $ 0 x 100.0000 $ 0
F. ANNUAL GROUND RENT $ 0 + ANNUAL SFHC.ASS•MT.$ 0 S 0
6. LING 32 MX:NUS LINE 51' $ o
H._LIMB SG DTV ZD BY LINE SD S 0
I. TAX ABRITM3NT (IF AMY) s 0
J. LINE H PLUS LINE I 9 0
RUN DATE/TIME% 10/15/96• / 10:4909 PACE 1 or 3 FORM HUD-92264-A (2/94)
NAME or MORTGAGOR: OCC LIVING CENTER, INCORPORATED PROJECT SUD1EYR: 053-2,2005r�1
PRoh= NASIt1 UCC LIVING CBNTER LOoe"",�3TFSET,CZTY.STATE): 1000 CULBRETE ROAD. l 70AA. PC 9B
I DETERMINATION OF MAXIMUM =SURAELE MIOR1.r10E (CONTIxUED) _
=72RIA (COL.1) (COL.2) (COL.3)
6. AMOUNT BASED ON ESTIMAow COST OF RESASTGITATSON PLUS:
(I)'AS IS• VALUE, OR (ii) ACQUISITION COST OR
(III) =25%.TNG MORTGBGE n1DB8TEDIMM AGAINST TEE
PROPERTZ 99"AE IIRMWILITATIGNS
A. TOTAL ESTIMATED D COST S 0
8, ESTIMATED COBS OF Orr_SITE COSISTR=Od $ 0
C. B»x OF LINE 6A AND LINS 60 S 0
D. GRANT/LOAN FOWOS ATTR WZAWA TO X-C- STEMS S 0
R. LINE 6C MINUS LINE 6D S a
t. •AS IS, VALUE of PROP. BEFORE Rzmn. 8 0 x 200.000Ot S 0
G. EXISTING MORTGAGE INOEBTEDNSZS (PROP. ONNER)
OR PURGEAS; PRICE or PROPERTY (TO OR ATJZRED) S 0
a. LINE 62 PLUS LINE 67 OR LINE 643. NEICE EVER IS ZJSS S 0
I. LINE 6E S 0 x 100.0000001 S 0
7. AMOUNT BASED ON 601MO OLIS TOTAL COST OF ACQUISITION SECTION 223(1)
A. FURCEASE PRICE OF PRAJWT $ 0
B. ayAiR$ AND IO?ROVEIODP , IF ANY $ 0
C. OTBElt FEES S 0
0. LOAN CLOSING C htm $ 0
E_ SUN OP LINKS 7A T04=2 LINE 7D S 0
F. ZVI*t TDE SUM OF ANT GRANS/LOAN AM RESERVE FOR P"%ACrMWT AND
MAJOR MOVABLE EOUIPNSNT TO Be PURCE1M AS A ASSET OF TEE PROJECT $ 0
C_ LIx! 7! MINUS T4= 7F S 0
8. In= 7G 5 0 x 0.0000003 S 0
0. AMOUNT BASED ON SUM of UNIT MORTGAGE AMOUNTS S 0
9. AMOUNT BASED ON ESTZHATED COST TO WtJtONER:
A. TOTAL ESTTMAT3D COST (EZCL. OF SITS ` REQUIRED CONST. OFF TEE SITS) S 0
S. PURCHASE PRICE OF SITE $ 0
C. TOTAL COST OF CLEARISG SITE. LP ANY S 0
D. EXPENSE OF RELOCATING OCCUPANTS. IF AR! $ 0
2. COST OF OFF-SITE COASTRDCTION._IF ANY S 0
F. SON OF LINES 9A TWtOUGN LIN! 92 S 0
G. LINE 9? $ 0 x 100.000000% S 0
10.AMOUNT BASED ON EXISTING IMDBBTEDM BS, REPAIRS A LOAN CLOSING CHARGES SECTION 423(!):
A. TOTAL BZXVTZXG INDEBTEDNESS S 0
B. REQMM REPAIRS. S 0
C. OTHER FEES 5 0
D. ZAM CLOSING CHARGES S 0
E. SUM O! LIMES SOA TAE LZ= IOD S O
F. INTER THE SUM OF MY 4RAW/BOAS & 1ULMMVS FOR
REPLACEMENT ANC MAJOR MOVABL!_E UIPMENT_OM_DEPOSIT S 0
•G. LIN! 102 MINUS LINE 1A< $ 0
a. 701 OF VAL= S 0 x 701 3 0
I. GREATER OF LIEN 100 OR LIE: l0E $ 0
. ATTACR FORMAT FOR COMPUTING LOAN CLOSING CRARCES.
A,5�/f,�c.L
)eAXIMmM CAPITAL ALVANCE -S- Aw2aa 00.-
RUN DA=/TIME: 10/15/96 / 10130:35 PAGE 2 OF 3 FORM MM_92264-A (2/94)
! FAMICY VA)R2.Dec LIVING cmrnm:.y LOGr� fsTRM,c%Tf.6T)W): So00 coltRatE ROAD, �yA0R0. EC 9c
II. TOTAL PAWTRr2R1(TS FOR ss2rtmm(2
PART A _ rARY e
I. FEas Rat TO a PAID IN CASs: 1. A. DEOQ4PIQRI cosy ; 2.675,713
orm/srRA s 0 6. ADMKTMWT FOR CONTRACTED
D, sOILDE)Is TPArI2 7 0 AMOUNTS 13W EXCESS or MM
a. oTmt S o FORM 92266 aSTIMAT861
roes Iona m!RAC!s ON LEE$51 s o L1) CONSTADCIIFA cOg-E- 1 0
2. COMMITNI 2, )me., nes AND DtSCOVVES AM s6eROVS, 121 ANC22TECS•4 COMMM s e
A. rss6 Eno $ 0 (1) OTa1 ; O
OrOq $ 0 C. TOTAL Or"M A 4 6 f 2,67S.211
PQIacom"s.)WgaIRT TOR)( f o 2_ LAND ZPDasaows86 (OR CASs REQUIRED FOR
COM TROSTIOR low ; o LARD)1em2gITION) $ 194,000
C. msgg/ Dos 4amas aaseave (DOARD6CA0) S 0 3. soeayz&L ILIN" is+21 s 2.e40.21s
OTMMI f 0 6. A. A(FAJII Z AMODM4 f 21695,200
TOTAL (m'ml IA rw a go:SINS 9 S 0 a. aRANTfLOAN f 0
9. w.*XlNO CAPITAL. 5. FEES NOT TO 6E PAID IN CUM S 0
A.wasyme CAPITAL S 0 4. $06fOTAL (LINES 4A+ 46+ 51 ; 2,095,300
6. WMIMDN CAPITAL INVESTMENT (SEC. 202/623) $ 10.000 7. CASE INVESTMENT RfQ_"W" (LINZ I MISM LINE 6); -25,997
c. NOM-KLWXZ ITEMS DOE INCLUDED IN MDRTCAM $ 4,400 9. IRMAL OPIDUITINO DErfc1T• S o
TOTAL (ENFE11 IM PARS a on LZMs lot t 14.400 S. COMMITM M, MARPSTTPa FEE$
DISCOUNTS AND a5CRON6 f O
1o.MoRE1MO CAPITAL t 14,400
11.0F►-o11E COM6TRUCTTOI( A DEMOLITION Costs
( f 0 + ; 0 ) f 0
12.TDTAL ESTSNAIm CAEa REoozxxm !
(%am or LIVES 7+4+9+10 + 11) t -11,18_
rwwr MONEY Eachow, IF ANY
(60MAC'1'LIME 4 rmm LIVE 11 f -219.1$7
- Nan, FOR s4CTTOM 223(F) CASES, ArTACT TO IOR..AT POR COMPDYINO TER OPSMATINa DEFICIT.
2111 649RCi Or PUMA To MEET CAS#REOUIREMM/ MOR24KCS CREDIT NOTES
600110E1 AMOUNT
A. 6-3-14 UPADesrm s 10,000 MOAYGACM CP2brr PROCE6sIR0 Seas.
1. AN INCRSAea IN TEE FOND REEEEVDMON FROM
0. co-ove"OR•s-as*" f 4,000 2. 12,193.000 TO $2,499,300 Ts ARTNO
I. REOVSSTND.
C. S 0 6.
9.
O-
7.
_,
Tons,AVA12.Aa2.a CASE FOR PROJECT S u,00e 10.
Iv1 RECOM@RMDATION. REQDtREWNT6 AND REMRARS
_,,llGcOMMXVD 1VVROOAtl SU0.7ECT TO CONDITIONS STATRD IN ADDENDCM, IF AMT.
RECDD®(D RElserloN FOR wu0ws 91'ATED IN ADOH(OOM.
6IaNATDRE or SEE wwmuc6 cE l T aE114INO.
2 CC
RON DATZMM. 10/16/94 / 10191121 -PAVE 7 or 3 FORM VVD-922#4-A (2/94)
10
Friday
March 22, 1996 •
0
Part 111
Department of
Housing and Urban
Development
24 CFR Part 885, et al.
Supportive Housing for the Elderly and
Persons With Disabilities; Final Rule
7
11947
11956 Federal Register / Vol. 61, No. 57 / Friday. March 22, 1996 / Rules and Regulations 11
by this final rule without significant community development,Loan , Subpart B-Section 202 Supportive
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 copying 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.W.,Room 10276, 891.230 Selection preferences.
Washington.DC 20410-0500. Capital advance programs.Civil Subpart C-Section 811 Supportive
8 rights,Grant programs-housing and Housing for Persons With Disabilities
Regulatory Flexibility Act community development,Individuals 891.300 Applicability.
Under the Regulatory Flexibility Act with disabilities,Loan programs- 891.305 Definitions.
(5 U.S.C.605(b)),the undersigned housing and community development, 891.310 Special project standards.
hereby certifies that this final rule does Low and moderate income housing, 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 Part 891 Subpart D-Project Management
capital advances to private nonprofit 891.400 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 891.415 Obligations of the household or
to nonprofit organizations to expand the with disabilities,Loan programs- family.
supply of supportive housing for housing and community development, 891.420 Overcrowded and underoccupted
persons with disabilities.Although Low and moderate income housing, units.
small entities will participate in the Mental health programs,Rent subsidies, 891.425 Lease requirements.
ro the rule will not have a Reporting and recordkeeping 891A30 Termination lease.
and
program. modification of lease.
significant Impact on them. requirements. 891.435 Security deposits.
Executive Order 12606, The Family Accordingly,under the authority of 891.440 Adjustment of utility allowances.
The General Counsel,as the 42 U.S.C.3535(d),for the reasons stated 891.445 Conditions for receipt of vacancy
in the preamble.24 CFR chapter VIII is payments for assisted units.
Designated Official for Executive Order amended as set forth below: 891.450 HUD review.
12606, The Family,has determined that Subpart E-Loans for Housing for the
the provisions of this final rule will not PART 695-[REMOVED1 Elderly and Handicapped
have a significant impact on family
formation,maintenance,or general well- 1.Part 885 is removed. 891.500 Purpose and policy.
being,and thus is not subject to review 891.505 Definitions
under the Order.No significant change PART 88"REMOVED] 891.510 Displacement,relocation,and real
in existing UD policies or programs property acquisition.
$ p p 1p' 891.515 Audit requirements.
will result from promulgation of this 2.Part 889 is removed.
rule,as those policies or programs relate Section 202-Projects for the Elderly or
R
to family concerns. PAT 890-[REMOVED] Handicapped-Section 8 Assistance
891.520 Definitions applicable to 202/8
Executive Order 12612,Federalism 3.Part 890 is removed. projects.
The General Counsel,as the 4.A new part 891 is added to read as 891.525 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.
P 891.540 Loan disbursement procedures.
in this rule will not have substantial [,,WITH OR THE ELDERLY AND PERSONS 891.545 Completion of project,cost
direct effects on States or their political DISABILITIES certification,and HUD approvals.
subdivisions,or the relationship part A-General Program Requirements 891.550 Selection preferences.
Sub
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 891.110 Allocation of authority. project account.
under the Order. 891.115 Notice of funding availability. 891.575 leasing to eligible families.
891.120 Project design and cost standards. 891.580 HAP contract administration.
List of Subjects 891.125 Site and neighborhood standards. 891.585 Default by Borrower.
891.130 Prohibited relationships. 891.590 Notice upon HAP contract
24 CFR Part 885 891.135 Amount and terms of capital expiration.
Aged,Individuals with disabilities, advances. 891.595 HAP contract extension or renewal.
Loan programs-housing and 891.140 Development cost limits. 891.600 Responsibilities of Borrower.
community Low and 891.145 Owner deposit(Minimum Capital 891.605 Replacement reserve.
�' Investment). 891.610 Selection and admission of tenants.
moderate income honking.Reporting 891.150 Operating cost standards. 891.615 Obligations of the family.
and recordkeeping requirements. 891.155 Other Federal requirements. 891.620 Overcrowded and underoccupied
24 CFR Part 889 891.160 Audit requirements. units.
891.165 Duration of capital advance. 891.625 Lease requirements.
Aged,Capital advance programs, 891.170 Repayment of capital advance. 891.630 Termination of tenancy and
Grant programs-housing and 891.175 Technical assistance. modification of lease.
12 '
Federal Register ! Vol. 61, No. 57 / Friday, March 22, 1996 / Rules and Regulations 11957
891.635 Security deposits. shall be used for the purposes described rehabilitated,or acquired as permanent
891.640 Adjustment of rents. in Section 202(12 U.S.C. 1701q(b)). residences for use by elderly or disabled
891.645 Adjustment of utility allowances. (2) Supportive Housing for Persons 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 developmental
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,intermediate
891.655 Definitions applicable to 202/162 (c) Use of capital advance funds.No care facilities,or transitional care
projects. part of the funds reserved may be facilities. For the Loans for the Elderly
891.660 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. accomplished prior to issuance of a
891.675 Prohibited facilities. p p same meaning provided in section
891.680 Site and neighborhood standards. commitment for capital advance 3(b)(2)of the United States Housing Act
891.685 Prohibited relationships. funding. of 1937 (42 U.S.C. 1437a).
891.690 Other Federal requirements. (d)Amendments.Subject to the National Sponsor means a Sponsor
891.695 Operating cost standards. availability of funds,HUD may amend that has one or more Section 202 or one
891.700 Prepayment of loans. Ahe amount of an approved capital or more Section 811 project(s) under
891.705 Project assistance contract. advance only after initial closing has reservation,constriction,or
891.710 Term of PAC. occurred. management In two or more different
891.715 Maximum annual commitment and
project account. 1891.105 Definitions. HUD geographical regions.
891.720 Leasing to eligible families. The following definitions apply,as Operating costs means HUD-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 u expiration.on PAC a terms with definitions unique to the
p xp (1)Administrative expenses,
891.740 Responsibilities of Borrower. Particular program are defined in
sP including salary and management
891.745 Replacement reserve. §§891.205,891.305,and 891.505,as uses related to the provision of
891.750 Selection and admission of tenants. applicable. shelter ex and,in the case of the of 891.755 Obligations of the family. Af Bated entities means entities that
891.760 Overcrowded and underoccupied 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 single (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;
891.780 Adjustment of rents. by any otherwise unaffiliated entities of (4) Utilities expenses,including gas,
891.785 Adjustment of utility allowances. oil,electricity,water,sewer,trash
891.790 Conditions for receipt of vacancy a single Sponsor or of Sponsors(or of tJ'�
payments for assisted units. a single Borrower or of Borrowers,as removal,and extermination services.
Authority: 12 U.S.C. 1701q;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
care facility for the developmentally Section 202 Program only).
9891.100 Purpose and policy. 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, (PRAC)means the contract entered into
of Supportive Housing for the Elderly the annual income of the individual by the Owner and HUD setting forth the
and the Section 811 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 of the Housing Act of individuals shall be imputed to be the means the payment made by HUD 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.C.8013) (section Social Security Act. difference between the total tenant
811),respectively,for housing projects Household(eligible household)means payment and the HUD-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 shall 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 payment.A project
that 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 payment,"may be made to the
Housing for the Elderly.A capital income in this section. Owner when an assisted unit is vacant,
advance and contract for project rental Housing and related facilities means in accordance with the terms of the
assistance provided under this program rental housing structures constructed, PRAC.
11958 Federal Register / Vol. 61, No. 57 / Friday, March 22, 1996 / Rules and Regulations 13
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. 1891.125 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)for the 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 standpoint of
under this part,or the repair or for the available capital advance facilitating and furthering full
replacement of major building systems authority, the contents of the compliance with the applicable
or components in danger of failure. application,and the selection process. provisions of Title VI of the Civil Rights
Improvement of an existing structure Act of 1964,the Fair Housing Act,
must require 15 percent or more of the .5 091.120 Project design and cost Executive Order 11063 (27 FR 11527, 3
19
CFR,, 58-1963 Comp.,estimated development cast to standards P•,p•652);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 HUD
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 HUD (c)New construction sites must meet
Secretary for repairs,replacement,and Minimum Property Standards,unless the following site and neighborhood
capital improvements to the pro ect. 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 art must comply area of minority concentration(or
as amended,or the Supportive Housing P P Y minority elderly concentration under
for the Elderly authorized b g with the Uniform Federal Accessibility the Section 202 Program)except as
Y Y Standards(See 24 CFR 40.7 of for permitted under paragraph(c)(2)of this
that section. availability),section 504 of the
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 ct 42 racially mixed area if the project will
g ( implementing regulations (24 CFR part cause a significant increase in the
U.S.C.8013),as amended,or the . 8),and for new construction sig if minors to nonminori
Disabilitties Program authorized b with that multifamily housing projects,the design proportion sients(or minority elderly to ty
8r Y and construction requirements of the
section. Fair Housing Act and HUD's the Section non2
minori 02 Pro elderly residents,under
Start-up expenses mean necessary implementing regulations at 24 CFR part gram) in the area.
costs(to plan a Section 202 or Section 100.For the Section 811 Program of (2)A project may be located in an area
811 project.as applicable) incurred b of minority concentration (or minority
the P J PP Y Supportive Housing for Persons with elderl concentration,under the Section
closSponsor or Owner prior to initial Disabilities,see additional accessibility 202 Program)only if:
Tenant payment to Owner equals total requirements In§891.310(b). (1)Sufficient,comparable
tenant payment less utility allowance,if (c) Restrictions on amenities.Projects opportunities exist for housing for
any must be modest in design.Amenities minority elderly households or minority
Total tenant payment means the not eligible for HUD 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
a
pools,saunas,Jacuzzis,and the income ran to be served b Y the
of this chapter. 8
dishwashers, trash compactors,and ro osed project,outside areas of
Utility allowance is defined in part washers and dryers in individual units P P P j
813 of this chapter and is determined or minority concentration(see paragraph
approved by HUD. in supportive housing for the elderly or (c)(3)of this section for further guidance
Very low-Income fam111esshall 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 Act 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
9891.110 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) (1) Sufficient does not require that
the Assistant Secretary will separately with any excess amenities from sources in every locality there be 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.Rather,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 least 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 several
14 �.
Federal Register J Vol. 61, No. 57 / Friday, March 22, 1996 i Rules and Regulations 11959
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 have been made available outside areas persons salaried 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
(it)Units may be considered to be integral part of an overall local strategy associated management fees);
comparable opportunities if they have for the preservation or restoration of the (it)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
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 (or Borrower, applicable)and any
comparable opportunities standard reason the need cannot otherwise be development team member between
i
Involves assessing the overall impact of feasibly met is that discrimination on development team members after
HUD-assisted housing on the the basis of race,color,creed,sex,or prohibited until two years afte final
availability of housing choices for very national origin renders sites outside closing.
low-income minority elderly or disabled areas of minority concentration g 891.135 Amount and terns of capital
households,as applicable(or low- unavailable,or if the use 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
po ulation. to those typically found in cost associated with excess amenities
rQ There are racially integrated neighborhoods consisting largely of and design features to be paid for by the
neigghborhoods in the locality. unassisted,standard housing of similar Sponsor under§891.120.
(D)Programs are operated by the market rents.
locality to assist minority elderly or (f)For the Section 811 Program of §891.140 Development cost limits.
disabled households,as applicable(or Supportive Housing for Persons with
minority families,for projects funded Disabilities,the additional site and (a) HUD shall use the development
under§§891.655 through 891.790 ,that cost limits.established ju Notice in the
g ) neighborhood requirements in§891.320 Federal Register and adjusted by
wish to find housing outside areas of apply, locality,to calculate the fund
minority concentration. reservation amount of the capital
(E) Minority elderly or disabled $891.130 Prohibited relationships. p
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 be 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.
11960 Federal Register / Vol. 61, No. 57 / Friday, March 22, 1996 / Rules and Regulations 15
§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.,p.412)), requirements of the Lead-Based Paint
As a Minimum Capital Investment, and implementing regulations in 24 CFR Poisoning Prevention Act(42 U.S.C.
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 part 35 apply to
(0.596)of the HUD-approved capital developmental disabilities shall be any dwellings(except zero-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 foodplain. (i)Constructed or substantially
Program,if an Owner has a National (c)Flood insurance.The Flood rehabilitated before 1978;and
Sponsor or a National Co-Sponsor,the Disaster Protection Act of 1973 (42 (11)In 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(0.596)of the (d)Labor standards. (1)All laborers
HUD-approved capital advance,not to and mechanics(other than volunteers (2) Under the Section 811 Program
and projects funded under§§891.655
exceed$25,000. under the conditions set out in 24 CFR
part 70)employed by contractors and through 891.790,the lead-based paint
§891.150 Operating cost standards. subcontractors in the construction requirements described in§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 §891.160 Audit requirements.
operating cost of comparable housing this part shall be paid wages at rates not
for the elderly or for persons with less than those prevailing in the locality, Nonprofits receiving assistance under
disabilities in each field office,and shall as determined by the Secretary of Labor this part are subject to the audit
adjust the standard annually based on in accordance with the Davis-Bacon Act requirements in 24 CFR part 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. for the capital advance is 18 months
standards shall be developed based on (2)Contracts involving employment from the date of issuance with limited
the number of units.However,under of laborers and mechanics shall be exceptions up to 24 months,as
the Section 811 Program and for projects subject to the provisions of the Contract approved by HUD on a case-by-case
funded under§§891.655 through Work Hours and Safety Standards Act basis.
891.790,the operating cost standard for (40 U.S.C.327-333).
group homes shall be based on the (3)Sponsors,Owners,contractors, 1891.170 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 (�Intents[ capital taltad and
an approved project to reflect such requirements. repayment.A capital advance provided
factors as differences in costs based on (e)Displacement,relocation,and real under this part shall bear no 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 so long as the housing project remains
will be used to determine the amount of goals and objectives of this part, avallable for very low-income elderly
the project assistance Initially reserved Sponsors and Owners(or Borrowers,if families or persons with disabilities,as
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 part. 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 prescribed by HUD.
Other requirements unique to a levels described In,and in accordance (b)The transfer of physical and
particular program are described in with the requirements of,the Uniform financial assets of any project under this
subparts B and C of this part,as Relocation Assistance and Real Property part is prohibited,unless HUD gives
ap licable. Acquisition Policies Act of 1970,as prior written approval.Approval for
�a)Affirmative fair housing marketing. amended(URA) (42 U.S.C.4201-4655), transfer will not be granted unless HUD
(1)The affirmative fair housing as implemented by 49 CFR part 24. determines that the transfer to a private
marketing requirements of 24 CFR part (3)Real property acquisition nonprofit corporation or consumer
200,subpart M and the implementing requirements.The acquisition of real cooperative(under the Section 202
regulations at 24 CFR part 108;and property for a project is subject to the Program)or a nonprofit organization
e(2)The fair housing advertising and URA and the requirements described in (under the Section 811 Program) is part
poster guidelines at 24 CFR parts 109 49 CFR part 24,subpart B. of a transaction that will ensure the
and 110. (1) Intergovernmental review.The continued operation of the project for
(b) Environmental.The National requirements for intergovernmental not less than 40 years (from the date of
Environmental Policy Act of 1969, review in Executive Order No. 12372 original closing)in a manner that will
HUD's implementing regulations at 24 (47 FR 30959,3 CFR, 1982 Comp.,p. provide rental housing for 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 disabilities,as applicable,on terms at
For the purposes of Executive Order No. Comp.,p. 186))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.
16
Federal Register / Vol. 61, No. 57 / Friday, March 22, 1996 / Rules and Regulations 11961
3891.175 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 HUD based on the 3881 210 Special project 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
applicants,are able to participate more nonprofit organization that may be efficiencies or one-bedroom units.If a
fully in the programs. established by the Sponsor that will resident manager is proposed for a
receive a capital advance and project project,up to two bedrooms could be
i 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
3891.200 Applicability. elderly as its legal owner.Owner does 3891.215 Limits on number of units.
not mean a public body or the (a) HUD may establish,through
The requirements set forth in this 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. separate applications shall be deemed to
Private nonprofit organization
As used in this part in reference to the any incorporated private Institution be a single entity for purposes of these
on or
Section 202 Program,and in addition to limits.
the applicable definitions in§891.105: foundation:
Acquisition means the purchase of(or (1)That has tax-exempt status under f notice tian the Federal
otherwise obtaining title to existing section 501(c)(3)or(c)(4)of the Internal publication
g ) g Revenue Code of 1986 (26 U.S.C. 1 et Register,the minimum size of a single
housing and related facilities from the project.
Resolution Trust Corporation. seq.);
Activities of daily living(ADL)means ( No part of the net earnings of 38912M Prohibited facilities.
eating,dressing,bathing,grooming,and "Whi ch inures to the benefit of any
household management activities,as member,founder,contributor,or Projects may not include facilities for
further described below: individual; infirmaries,nursing stations,or spaces
—May need assistance with (3)That has a governing board: for overnight care.
(1)Eatlng
cooking, or servin food,but (i)The membership of which is §891.225 Provision of services.
g g selected in a manner to assure that there
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,HUD shall ensure that housing
getting in and out of the shower or tub, housing is located;and assisted under this part provides
but must be able to wash self; (ii)That 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 (b) (1) HUD shall ensure that Owners
care of personal appearance; (4)That is approved by HUD as to have the managerial capacity to perform
(4) Dressing—Must be able to dress administrative and financial the coordination iaservices described in
self,but may need occasional assistance; responsibility. h 12 U.S.C. 1701 (2).
and Services expenses means those costs q�
(5)Home management activities— needed to provide the necessary (2)Any cost associated with this
May need assistance in doing services for 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 mobile.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 802 of the National Affordable
Congregate space(hereinafter referred access to these services. Housing Act.The HUD-approved
to as community space)shall have the Sponsor means any private nonprofit service costs 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 tern cooperative* not to exceed$15 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 rooms,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 3891230 Selection preferences.
least one of whom is 62 years of age or therefrom;and
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 CFR part 5,subpart D apply.
' 11964 Federal Register / Vol. 61, No. 57 / Friday, March 22, 1996 / Rules and Regulations 17
paint in accordant with the fol wing to protect tenants from hazards replacement of capital items).All
requirements: associated with abatement proc ures. functions must be performed in
(1)A defective int surfac hall be (8)The Owner(or Borrower f compliance with equal opportunity
treated if the to 1 area of de tive paint applicable)must keep a cop of each requirements.
on a compone t is: inspection report for at le t three years. (c) Contracting for services. (1)With
(A)More t an 10 squat feet on an If a unit requires testin or treatment of HUD approval,the Owner may contract
exterior wa chewable surfaces ba on the testing, with a private or public entity for
(B)Mor than 2 squ feet on an the Owner must ke the test results, performance of the services or duties
interior exterior co ponent with and,if applicable he certification of required in paragraphs(a)and(b)of this
large su ace area,ex uding extert r treatment rode itely.The records must section.However,such an arrangement
walls d includin but not limi d to, indicate whi chewable surfaces in the does not relieve the Owner of
ceili s,floors,do rs,and inte r units have en tested or treated.If responsibility for these services and
wal ;or records a ablish that certain chewable duties.All such contracts are subject to
)More than 0 percent o he total surfac ere tested,or tested and the restrictions governing prohibited
s ace area o an interior o exterior treate ,in accordance with the contractual relationships described in
mponent w th a small s ace area, sta ards prescribed In this section, §891.130. (These prohibitions do not
ncluding,b t not limite to,window t e surfaces do not have to be tested extend to management contracts entered
sills,base ards and tri treated at any subsequent time. into by the Owner with the Sponsor or
(11)Acc table meth s of trea nt its nonprofit affiliate.)
are:rem al by wet aping,wet Subpart D—Project Management (2)Consistent with the ob'ectives of
sandin ,chemical s ipping on o off §ggt,gpp Responsibilities of Owner. Executive Order No. 11625?36 FR
site,r lacing poi ed compon ts, 19967,3 CFR, 1971-1975 Comp.,p.616;
sera ng with inf -red or coil a heat (a)Marketing. (1)The Owner must as amended by Executive Order No.
se th tempe lures below, 1100 commence and continue diligent 12007 (42 FR 42839,3 CFR, 1977
de ees, to atu es sa in ,HEPA marketing activities not later than 90 Comp.,p. 139));Executive Order No.
8 days before the anticipated date of 12432 (48 FR 32551,3 CFR, 1983
v cuum need gun,conta ed availability of the first unit or Comp.,p. 198);and Executive Order No.
ydroblasti or high pr ure wash occupancy of the group home.Market 12138(44 FR 29637,3 CFR. 1979
with HEP vacuum,a abrasive activities shall include the provision of Comp.,p.393;as amended by Executive
sandblas with HE P vacuum. notices of the availability of housing Order No. 12608(52 FR 34617,3 CFR,
Surface must be cov ed with du le under the program to operators of 1987 Comp..p.245)),the Owner will
maters s with join and edges se ed temporary housing for the homeless in promote awareness and participation of
and ulked as n ed to pre ve the the same housing market. minority and women's business
esc a of lead co aminated d t. (2)Marketing must be done in enterprises in contracting and
i1)Prohibit methods of r oval accordance with a HUD-approved procurement activities.
a :open flam min or t Ching; affirmative fair housing marketing plan (d)Submission of financial and
achine san ng or grindi without a and all Federal,State or local fair operating statements.The Owner must
HEPA exha t;uncontain housing and equal opportunity submit to HUD:
hydroblast g or high pr ure wash; requirements.The purpose of the plan (1)Within 60 days after the end of
and dry s ping excep ound and requirements is to achieve a each fiscal year of project operations,
electric outlets or ex pt when condition in which eligible households financial statements for the project
treatin defective pal t spots no more of similar income levels in the same audited by an independent public
than square fee n any one ante r housing market area have a like range of accountant and in the form required by
roo or space(hal ay,pantry,etc or housing choices available to them HUD;and
tot ling no more han twenty squ a regardless of discriminatory (2)Other statements regarding project
fe t on exterior rfaces. considerations such as their race,color, operation,financial conditions and
(iv)During a erior treatmen soil creed,religion,familial status, occupancy as HUD may require to
and playgrou d equipment m st be disability,sex or national origin. administer the PRAC and to monitor
protected fr contaminatio . (3)At the time of PRAC execution.the project operations.
(v)All tr atment procedu es must be Owner must submit to HUD a list of (e) Use of project funds.The Owner
conclude with a thoroug cleaning of leased and unleased assisted units(or in shall maintain a separate interest
all surfa in the room area of the case of a group home,leased and bearing project fund account in a
treatm t to remove fl dust particles. unleased residential spaces)with a depository or depositories which are
Clean p must be acco plished by wet justification for the unleased units or members of the Federal Deposit
was ng surfaces wi a lead residential spaces, in order to qualify for Insurance Corporation or National
sol ilizing deterge t such as trlsodi vacancy payments for the unleased Credit Union Share Insurance Fund and
p sphate or an ivalent solution_ units or residential spaces. shall deposit all tenant payments.
(vi)Waste and ebris must be (b)Management and maintenance. charges,income and revenues arising
isposed of in cordance with all The Owner is responsible for all from project operation or ownership to
applicable F ral,State and loc laws. management functions.These functions this account.All project funds are to be
(6)In lieu the procedures s forth include selection and admission of deposited in Federally insured
in the prec Ing clause,the ner(or tenants,required reexaminations of accounts.All balances shall be fully
Borrower,' applicable)may, t its incomes for households occupying insured at all times,to the maximum
discretto ,abate all interior nd exterior assisted units or residential spaces, extent possible.Project funds must be
chewab surfaces in actor ante with collection of tenant payments, used for the operation of the project
the m ods set out pa ph(a)(5)of termination of tenancy and eviction, (including required insurance coverage),
this, ction. and all repair and maintenance and to make required deposits to the
(7 The Owner(or B ower,if functions(including ordinary and replacement reserve under§891.405,in
a Icable)must take ppropriate action extraordinary maintenance and accordance with HUD-approved budget.
18
Federal Register / Vol. 61, No. 57 / Friday, March 22, 1996 / Rules and Regulations 11965
Any remaining project funds in the maintain a written,chronological housing and/or services provided r
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 1d) Unit assignment.If the Owner
fiscal year shall be deposited in a person applying for the program. 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 HUD's general
(f)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 the household 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
fortes for the obtaining of wage and likely to be admitted for the next 12
§891.405 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 aid in funding Both the Owner and the applicant considered for that reason.
extraordinary maintenance 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 appplications for admission to HUD. not selecting the applicant for other
replacement reserve in an amount (c)Determination of 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 sufficient 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)Administration 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(s)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 (f)Records.Records on applicants and
be added to the reserve.Funds may be Agencies,as provided by 24 CFR part 5, approved eligible households,which
drawn from the reserve and used only subpart B;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.
HUD. (I)In order to be eligible for See§891.410(a).
admission,the applicant must also meet (g) Reexamination of household
§891.410 Selection and admission of any project occupancy requirements family income and composition. (1)
tenants. ap roved by HUD. Regular reexaminations.The Owner
(a) Written procedures.The Owner iii)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 months,Upon verification of
nondiscrimination in the selection of religion,color,sex,national origin, the information,the Owner must make
tenants and that are consistent with the familial status,or disability.An Owner appropriate adjustments in the total
purpose of improving housing may,with the approval of the Secretary, tenant payment in accordance with part
opportunities for very low-income limit occupancy within housing 813 of this chapter,as modified by
elderly persons and persons with developed under this part 891 to §891.105,and must determine whether
disabilities(as applicable);and persons with disabilities who have the household'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 payment and the project rental
obligations of the lease.Owners shall supportive housing environment. assistance payment,and must carry out
promptly inform in writing any rejected However,the Owner must permit any unit transfer in accordance with
applicant of the grounds for any occupancy by any qualified person with HUD standards.At the time of
rejection.Additionally,Owners shall a disability who could benefit from the reexamination under paragraph(g)(1)of
► 11966 Federal Register / Vol. 61, No. 57 / Friday, March Z2, 1996 / Rules and Regulations
19
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 5,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
Agencies,see 24 CFR part 5,subpart B. i5a8rtgii�y.15 Obligations of the household or vacated unit if the Owner complies with
(2)Interim reexaminations.The This section shall apply to capital the requirements of§891.445.
household must comply with the
provisions in its lease regarding interim advances under the Section 202 8891.425 Lee"requirements.
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 5,subpart B,and the (b) Termination by the household(or
CFR part 5,subpart B.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 terminate 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(or Borrower,as
assistance payment. (f)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 until the 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 eligibility 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 a 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 (or 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 5891.430 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 title
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 a household residing in a unit
not be required to establish eligibility for the occupancy of,another unit (or residential space In a group home).
for admission to the projecttmder the assisted under any Federal housing
remaining requirements of paragraph(c) assistance program,including any §891.435 Security deposits.
of this section. section 8 program. This section shall apply to capital
(ii)A household's eligibility for advances under the Section 202
(Approved by the Office of Management and
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 5891.420 Overcrowded and E of this part.For loans financed under
to submit requested verification underoccupied units. subpart E of this part,the requirements
Information,including information If the Owner determines that because in§891.635 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 5,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
20
Federal Register / Vol. 61, No. 57 / Friday, March 22, 1996 / Rules 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 (or (or 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 available 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
deposit on an installment basis. meetings in a tenant file for inspection families,as applicable) and make a
(b) 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
ofsecurity 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 Oti7ce of Management and
the segregated,interest-bearing account a household(or family,as applicable), Budget under control number Management a
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 9 891 A45 Conditions for receipt of
collected from the households(or State or local law. vacancy payments for assisted units.
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(or 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 date 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 (or 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:
the refund. (1)The amount owed the Owner(or 60 days of vacancy,if the Owner:
(1)Conducted marketing in
(3) Use ofsecurity 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§$91.400;
State and local law and the cost(or contract rent. if applicable), (2) Has 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 (or 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 home
(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 §891.445(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
(ii)Provide to a household(or family) §891.440 Adjustment of utility allowances. PRAC,or any applicable law;
owing amounts under the lease a list This section shall apply to projects (2)Notified 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 prospective vacancy;
law.If the amount that the Owner(or projects financed with loans under (3) Has fulfilled 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 family'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(or 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 1891.430.
the list,the household (or 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 the
21
11968 Federal Register J Vol. 61, No. 57 J Friday, March 22, 1996 J Rules and Regulations
Owner collects payments for vacancies
from other sources(tenant payment,
security deposits,payments under
f §891.435(.,),or governmental payments
under other programs),the Owner shall
not be entitled to collect vacancy
payments to the extent these collection.,
from other sources plus the vacancy
payment exceed the approved per unit
operating cost.
4891.450 HUD review.
HUD shall conduct periodic on-site
management reviews of the Owner's
compliance with the requirements of
this part.
i