OMB Approval No. 2502-0608

(exp. 02/28/2017)

form HUD-92305-PRA (03/2014)

FISCAL YEAR 2013 SECTION 811 PROJECT RENTAL

ASSISTANCE PROGRAM

COOPERATIVE AGREEMENT TABLE OF CONTENTS

I. Grantee Information

II. Definitions

III. General

IV. Statutory Authority and Purpose

V. InterAgency Partnership Agreement

VI. Grant Amount and Total Assisted Units

VII. Period of Performance

VIII. Program Guidelines

IX. Critical Milestones

X. Grantee Program Budget and Proposal

XI. Rental Assistance Contracts

XII. Grantee Program Administration

XIII. Administrative Cost Payment Method, Administrative Costs, Grantee

Audit, and Grantee Fund Transfer and Payment

XIV. Grantee Communication Requirements XV. Compliance Reporting Requirements, Monthly Tenant and Voucher

Reporting Requirements, Tenant Certifications, TRACS, Rent

Increase Request Requirements, and Special Claims XVI. HUD Oversight and Internal Controls

XVII. Conflicts of Interest

XVIII. Limitations On Use of Appropriate Funds to Influence Certain Federal

Contracting and Financial Transactions

XIX. Defaults and Remedies

XX. Depository Agreement

XXI. Fidelity Bond Coverage

XXII. Program Records

XXIII. Equal Opportunity

XXIV. Exclusion of Third Party Rights

XXV. Amendments

XXVI. Security of Confidential Information

XXVII. Additional Contract Provisions

XXVIII. Closeout

XXIX. Miscellaneous

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form HUD-92305-PRA (03/2014)

OMB Approval No. 2502-0608

(exp. 02/28/2017)

FISCAL YEAR 2013

SECTION 811 PROJECT RENTAL ASSISTANCE PROGRAM

COOPERATIVE AGREEMENT

By and Between the

U.S. DEPT. OF HOUSING AND URBAN

DEVELOPMENT

AND

This COOPERATIVE AGREEMENT (the “Agreement”) is made and entered into this _____

day of ______, 2015, by and between the U.S. Department of Housing and Urban Development

(“HUD”) and (the “Grantee(s)”).

I. GRANTEE INFORMATION

Cooperative Grant Agreement Rental Assistance Number: ____________________

Cooperative Grant Agreement Administrative Costs Number: _________________

Total Grant Amount: ____________________

Rental Assistance: _______________________

Administrative Costs: _____ _______________

Grantee Data Universal Numbering System (DUNS): _______________________

Grantee Taxpayer Identification Number (TIN): __________________________

II. DEFINITIONS

Please refer to Exhibit 1 for the definitions.

III. GENERAL

The Grantee and HUD hereby enter into this Agreement as a condition to and in

consideration of the Grantee's participation in the Section 811 Project Rental Assistance

Program (“PRA Program”) and receipt of the executed Grant. The PRA is authorized by

section 811 of the Cranston-Gonzalez National Affordable Housing Act (“NAHA”), 42

U.S.C. § 8013, as amended by the Frank Melville Supportive Housing Investment Act of

2010, (Public Law 111-374). The PRA Notice of Funding Availability (“NOFA”) was

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form HUD-92305-PRA (03/2014)

published on March 4, 2014, refer to Exhibit 2. The Grantee has been awarded and has

accepted the Grant under the NOFA. The Grantee hereby takes full responsibility to

administer, manage, and perform oversight of the PRA Program in accordance with the

terms and conditions of this Agreement and all applicable HUD requirements.

IV. STATUTORY AUTHORITY AND PURPOSE

On March 22, 2013 and December 16, 2014, the President signed the Consolidated and

Further Continuing Appropriations Act of 2013, (Public Law 113-6) and the

Consolidated Appropriations Act of 2014 (Public Law 113-76), January 17,

2014. The PRA Program is authorized under 42 U.S.C. § 8013(b)(3)(A). The purpose

of the program is to provide project-based rental assistance in the development of

supportive housing for Extremely Low-Income Persons with Disabilities.

V. INTERAGENCY PARTNERSHIP AGREEMENT

InterAgency Partnership Agreement between the Grantee and State Health and Human

Services/Medicaid Agency(ies) provides evidence of a formal structure for collaboration

to participate in the state’s Project Rental Assistance Program to develop permanent

supportive housing for extremely low-income persons with disabilities. The Agreement

was a required component of the Grantee’s application for funding under the NOFA.

The InterAgency Partnership Agreement, as found in Exhibit 3, is acceptable to HUD and

herein made part of this Agreement. Any substantive changes to the Agreement related to

the target population or appropriate services made available to tenants shall require notice

to HUD. Grantee must provide a copy of the InterAgency Agreement to HUD when it is

revised or updated. The NOFA requirements for the InterAgency Partnership Agreement

must be maintained through the contract term and Grantee shall notify HUD of any

changes in the target population.

VI. GRANT AMOUNT AND TOTAL ASSISTED UNITS

A. Grant Amount. HUD shall provide the maximum amount of the Grant in Section I,

Grantee Information and Exhibit 4. HUD will distribute the amount during the initial

five (5) year period of the all Rental Assistance Contract (RACs) executed under this

Agreement. Grantee will provide the Rental Assistance Payments to Owners of

Eligible Multifamily Properties consistent with this Agreement. After the initial five

(5) year period, HUD shall provide the Grant, as may be amended, annually, or in any

other frequency as determined by HUD, subject to appropriations.

1. Grant Funds Obligated. The funding authorized under this Agreement must be

disbursed by September 30, 2026. If all funds are not disbursed by

HUD/Grantee to the Owner by the aforementioned time, the funds, even

though obligated, will be cancelled and no further disbursements will be made.

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form HUD-92305-PRA (03/2014)

B. Grant Restrictions. PRA Program Funds must only be used for: (1) Rental Assistance

Payments and; (2) Administrative Costs of the Grantee.

C. Total Assisted Units. While Grantee has committed to executing RACs and Use

Agreements for the total number of Assisted Units listed in Exhibit 4, HUD

acknowledges that market conditions and other factors will determine the final total

number of Assisted Units and that number of Assisted Units may fluctuate over the

five (5) year period of the award.

Within 30 days of the execution of the last RAC which results in Grantee fully

encumbering funds provided under this Agreement, Grantee shall provide HUD with

confirmation of the final number of Assisted Units. The final number of Assisted

Units will be compared with the number of units listed on Exhibit 4 of this

Agreement.

Under no circumstances shall the program funding for the initial five (5) year period

of this program exceed the maximum amount of grant funds awarded in Exhibit 4 of

this Agreement.

VII. PERIOD OF PERFORMANCE

A. Period of Performance. The Agreement shall begin on the execution date of this

Agreement and terminate on the expiration date of the very last RAC which results in

Grantee fully encumbering funds provided under this Agreement.

Grantee will provide official notification of the expiration date of the very last RAC

which results in Grantee fully encumbering funds provided under this Agreement

within 30 days of execution of this RAC. Based on this date, HUD will establish a

close-out date for this Agreement.

If funds are not fully encumbered by September 20, 2023, HUD may request a plan

for remediation and reserves the right to reprogram the funds.

B. Termination for Default. This Agreement, in full or in part, including without

limitation, any of the initiatives to be undertaken by Grantee, may be terminated

by HUD prior to the end of the Agreement. HUD shall provide the Grantee with

90 days advance notice. In the event of termination of the Cooperative

Agreement by HUD, the Grantee shall have no financial or legal recourse

against HUD. Owners of Eligible Multifamily Properties shall have no financial

or legal recourse against Grantee or HUD if the Cooperative Agreement is

terminated for any reason. Grantee shall be paid for all amounts owed and that

are not in dispute up to the time of termination.

C. Renewal Upon Expiration of the Cooperative Agreement. Subject to future

appropriations, at the Agreement expiration, it may be renewed upon written approval

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form HUD-92305-PRA (03/2014)

by HUD. Should the Grantee desire to renew the Agreement, Grantee shall make a

written request for renewal and provide the request to HUD at least 120 days prior to

the expiration of the Agreement. Grantee’s request must: (1) state the specific time

frame of the proposed renewal, and (2) outline how Grant funds will be effectively

spent within the proposed renewal period. Upon receipt of the written request, HUD

may, by and through the PRA or successor program, approve a renewal depending on

the PRA Program or successor program funding levels and Program Requirements

that may be imposed at that time.

D. Program Funding. If Congress fails to appropriate funds adequate to meet the

funding needs of the Agreement after the initial five (5) year funding period,

HUD may terminate the Agreement. In the event the Agreement is terminated,

HUD will not require the Grantee to enforce the RAC or PRA use agreement and

Grantee may, at its discretion, continue to enforce or terminate such RACs and use

agreements. For example, if Grantee can obtain other funding for the Assisted Units

Grantee may continue to enforce the RAC and use agreement for these units.

VIII. PROGRAM GUIDELINES

Grantee shall comply and ensure Owners of Eligible Multifamily Properties comply with

the applicable provisions of the Program Guidelines identified in Exhibit 5 and

current/future regulations published by HUD and any other program guidance issued by

HUD such as handbooks, notices, etc. Grantee and Owners of Eligible Multifamily

Properties may not modify any part of the Program Guidelines without written consent

from HUD.

IX. CRITICAL MILESTONES

Grantee agrees to use its best efforts to complete certain milestones on or before the

deadlines stated in the attached Exhibit 6.

X. GRANTEE PROGRAM BUDGET AND PROPOSAL

Grantee’s budget for this Agreement is attached as Exhibit 6. Grantee shall deliver

quarterly budgets to HUD until the very last RAC is executed, which results in Grantee

fully encumbering funds provided under this Agreement. Thereafter, Grantee shall

provide an updated annual budget including the amount expected to be expended in the

following year and, based on that amount, evidence that the Grantee will not expend

funds in excess of the total Grant amount. Each budget must include a running total of

Administrative Costs the Grantee has requested/received thus far and how much is

remaining for the Period of Performance. Grantee acknowledges that the total

Administrative Costs given to the Grantee over the initial funding award of the

Agreement shall not exceed eight (8) percent of the rental assistance Grant amount

awarded, unless approved by HUD. Grantee acknowledges after the initial five (5) year

period the Administrative Costs shall remain at eight (8) percent of the rental assistance

Grant amount awarded.

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form HUD-92305-PRA (03/2014)

XI. RENTAL ASSISTANCE CONTRACTS (RACs)

The Grantee shall execute the HUD required RAC with each Owner of an Eligible

Multifamily Property that agrees to provide Eligible Tenants with rental assistance in

accordance with this Agreement (see Exhibits 7, 8, and 9). The Grantee will not

disburse Rental Assistance Payments to the Owners of Eligible Multifamily Properties

until the RAC is executed. All RACs executed pursuant to this Agreement shall, to the

extent applicable, incorporate and impose all terms and conditions found under this

Agreement. Grantee shall not waive any terms of this Agreement for the benefit of any

Owner of an Eligible Multifamily Property.

The Grantee may include an addendum to the RAC, with HUD approval, provided that

the provisions of the addendum do not conflict with the Agreement.

XII. GRANTEE PROGRAM ADMINISTRATION

A. Grantee Responsibilities. Grantee shall ensure the PRA Program will be executed in

accordance with this Agreement, including but not limited to ensuring Owner of an

Eligible Multifamily Property records the HUD required Section 811 Project Rental

Assistance Use Agreement (see Exhibit 10) and utilizes the Section 811 Project

Rental Assistance Model Lease (see Exhibit 11) for all Assisted Units. Additionally,

Grantee covenants, agrees to and assumes responsibility for all activities relative to

implementing the PRA Program under this Agreement, and shall be in compliance

with NAHA and all other applicable federal laws and requirements.

B. Changes in Organizational Structure. Grantee mergers, acquisitions, or other changes

in the legal structure must be reported to HUD as soon as Grantee is aware such

change is likely.

C. Systems. Grantee shall develop and maintain adequate system functionality that

allows for the flow of documentation and information between Grantee and HUD.

Grantee shall ensure its systems have adequate security measures and its staff is

appropriately trained to protect the confidentiality of certain records, including but

not limited to income and tenancy information of families assisted under the RAC.

D. Grantee’s Supervision. The Grantee must ensure that a process is in place to resolve

an appeal of a resident dispute with the Owner. The Grantee must ensure that the

Owner operates the property in accordance with health and safety standards, and

maintains positive relations with the Eligible Tenants.

XIII. ADMINISTRATIVE COST PAYMENT METHOD, ADMINISTRATIVE COSTS,

GRANTEE AUDIT, AND GRANTEE FUND TRANSFER AND PAYMENT

A. Payment Method. Unless otherwise determined by HUD, Grantee shall request and

receive payment of administrative costs through HUD’s Electronic Line of Credit

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form HUD-92305-PRA (03/2014)

Control System (eLOCCS). The forms referred to in this section are available

through HUD’s HUDClips website, under the forms section,

http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips.

The LOCCS Security Office may be reached at (202) 708-0764 or toll free at (877)

705-7504 for assistance, including authorization and access issues. The SF-1199A is

also available at local banking institutions.

1. Direct Deposit. Grantee is required to separately account for Grant funds under

this Agreement. Grantee may use a pooled cash account with separate funds and

general ledger accounts maintained by funding source. If the Grantee is not

currently signed up to receive payments via direct deposit from HUD, then

Grantee must submit a completed SF-1199A, Direct Deposit Sign-Up Form and

to:

U.S. Dept. of Housing and Urban Development

CFO Accounting Center

801 Cherry Street, Unit 45, Suite 2500

Fort Worth, TX 76102

Attention: Director, Reports and Control Division

2. Password. The Grantee is responsible for changing and maintaining an eLOCCS

password as required.

3. Authorization. Each individual in Grantee’s organization who will be authorized

to access eLOCCS to perform query or draw down/request funds under this

Agreement must request access authorization from HUD by submitting a form

HUD-27054, eLOCCS Access Authorization. A new form HUD-27054 is not

required for any individual who currently has access to eLOCCS for prior year

grant funds for the same Grantee. If a User already has a valid form HUD-27054

for VRS it is not necessary to submit another one for eLOCCS access. The

completed forms (which must be notarized) are sent to the PRA for review and

verification. Following review, the Grantee will send the original forms to the

LOCCS Security Officer for assignment of a LOCCS User ID. The form HUD-

27054 must be recertified every 6 months by each LOCCS User’s Approving

Official.

4. Access Changes. Grantee shall immediately notify the LOCCS Security Office at

HUD in writing when any individual with current access to eLOCCS is no longer

employed by the Grantee and/or should be denied access to grant funds for any

reason. The PRA Official must be notified of the Grantee’s actions in writing.

The PRA Official may provide additional instructions on accessing and using

eLOCCS.

5. Requests for Administrative Costs Payment. All requests for payment of

administrative costs must be submitted to HUD electronically in accordance with

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form HUD-92305-PRA (03/2014)

section XIII of this Agreement for eLOCCS purposes, the “Program Area” is

“811A”. The following line items are applicable to this Agreement:

Line Item No. Type of Funds Requested

1000 Administrative

8000 Project Rental Assistance Funds

6. Supplemental Information to PRA. In addition to the required eLOCCS payment

voucher, Grantee shall submit documentation to support payment requests for

costs to be incurred in the performance of this Agreement and in accordance with

terms and conditions of any program issued guidance. The supporting

documentation may include invoices, receipts, cancelled checks, or salary reports.

Vouchers will not be approved for payment, if Grantee has any outstanding

reports as it relates to the grant requirements of this agreement.

B. Payment Procedures. Without limiting the general applicability of 24 CFR part 85 as

previously stated, with respect to payment procedures, Grantee shall comply with 24

CFR part 85 in its entirety.

C. Allowable Costs. As part of the Grant, HUD shall pay Grantee for the Eligible

Activities as determined by this Agreement and 24 part CFR 85.

D. Period of Availability of Funds. Grantee may charge to the Grant only

Administrative Costs and Eligible Activities during the Period of Performance. Any

expense outside the scope of Administrative Cost or Eligible Activities shall not be

paid to the Grantee.

E. Standards for Financial Management Systems. Grantee shall maintain and operate

financial management systems that meet or exceed the Federal requirements for funds

control and accountability as established by the applicable regulations in 24 CFR 85

and as otherwise directed by HUD.

F. Documentation of Expenses. Grantee shall maintain source documentation of direct

costs, such as invoices, receipts, cancelled checks, and salary reports, to support all

eLOCCS draw requests for payment. This information must be made available to

HUD upon request and maintained for a period of at least three (3) years after the

initial funding cycle, or the date the last payment in the initial funding cycle,

whichever occurs last. For example, documentation of expenses from year one (1) to

year five (5) can be purged at year eight (8). Documentation of expenses from year

six (6) can be purged at year nine (9).

G. Grantee Audit.

Requirements

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form HUD-92305-PRA (03/2014)

1. The Grantee must submit audited annual financial statements that comply with the

requirements of OMB Super Circular by the earlier of: (1) 30 days after receipt of

the auditor’s report or (2) 9 months after the Grantee’s fiscal year end (FYE).

Grantee is not required to submit an audited financial statement specific to this

grant award.

2. The audit must be performed by an independent auditor, procured using the

standards in the OMB Super Circular and other documents referenced in the

Super Circular.

3. If there are audit findings that require corrective actions that relate to the PRA

Program, the Grantee must complete corrective actions described in the audit

submission package. If HUD requires a different corrective action plan after

consulting with the Grantee, the Grantee shall by the first day of each month, until

all corrective actions are completed as required by HUD, submit a status report to

HUD of corrective actions being implemented. Corrective actions must proceed

as rapidly as possible. If the Grantee fails to timely provide all required audited

financial statements, or fails to proceed with timely implementation of required

corrective actions, HUD may determine that such failure is a default by the

Grantee in performance of its obligations under this Agreement.

XIV. GRANTEE COMMUNICATION REQUIREMENTS

A. Communication with Owners.

The Grantee must have the capability to receive Eligible Tenant’s certification and

recertification data (form HUD 50059) and voucher data (form HUD 52670)

electronically from Owners of Eligible Multifamily Properties in a form consistent

with HUD reporting requirements for the HUD Tenant Rental Assistance

Certification System (TRACS). The Grantee must have the capability, in the form

acceptable to HUD, for communicating errors in HUD 50059 and HUD 52670

submissions to Owners.

B. Communication with HUD.

The Grantee must provide HUD with data on RACs, rent adjustments and payments

to Owners, contract renewal processing, and other documents and information

relevant to the Grantee responsibilities under this Agreement. The Grantee must have

the capability to transmit data to HUD over the Internet. The Grantee must have the

capability to transmit HUD 50059 data to the HUD TRACS Tenant System and HUD

52670 data to the HUD TRACS Voucher/Payment System, and to receive return

messages transmitted from TRACS. The Grantee’s Internet access must provide the

Grantee with the capability to review the resident and voucher data that the Grantee

has transmitted to HUD, to ensure that the data maintained by HUD is correct and

consistent with the data maintained in Grantee files. Resident reporting requirements

specified for HUD’s TRACS Tenant System and voucher reporting requirements

specified for the TRACS Voucher/Payment System are published on the TRACS

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form HUD-92305-PRA (03/2014)

Documents Page on the world wide web. The Grantee must meet the requirements

specified in these documents.

C. Fund transfer and payment.

The Grantee must have a depository account with a financial institution whose

deposits or accounts are insured either by the Federal Deposit Insurance Corporation

or the National Credit Union Share Insurance Funds and must be capable of receiving

and sending electronic fund transfer (EFT) transactions. The Grantee must have

facilities acceptable to HUD for making timely and accurate rental assistance

payments to Owners.

D. Grantee Contractors

The Grantee may subcontract any or all of the Grantee Communications requirements

included in this Section XIV. However, if the Grantee chooses to subcontract any or

all of these requirements, the Grantee remains responsible for ensuring all of the

requirements in Sections XIV are met.

XV. COMPLIANCE REPORTING REQUIREMENTS, MONTHLY TENANT AND

VOUCHER REPORTING REQUIREMENTS, TENANT CERTIFICATIONS,

TRACS, RENT INCREASE REQUEST REQUIREMENTS, AND SPECIAL

CLAIMS

The Grantee is responsible for the following requirements. The Grantee can contract any

or all of these requirements to another entity.

As defined under the “Automation Rule” (24 CFR part 208 - Electronic Transmission of

Required Data for Certification and recertification and Subsidy Billing Procedures), the

Grantee will monitor the compliance of 811 PRA Program multifamily

developments. The Grantee is responsible for conducting monthly voucher reviews;

adjusting rent and utility allowances when needed; paying monthly rental assistance

subsidies directly to Owners and responding to health and safety issues when required by

HUD.

A. General HUD Compliance Requirements. The Grantee will ensure that all Assisted

Units and related facilities comply with the terms of their RAC and conform to

Uniform Physical Condition Standards (UPCS) as well as all relevant federal and

state fair housing statutes and regulations.

B. Monthly Tenant Reporting Requirements. As defined under the “Automation Rule”

(24 CFR part 208) - Electronic Transmission of Required Data for Certification and

Recertification and Subsidy Billing Procedures, Grantees are required to submit

monthly tenant and voucher data electronically to TRACS.

Tenant data includes the current certification of the residents of the subsidized units

and tracks any changes, transfers, and moves within that population.

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form HUD-92305-PRA (03/2014)

C. Monthly Voucher Reporting Requirements. As defined under the “Automation Rule”

(24 CFR part 208)- Electronic Transmission of Required Data for Certification and

Recertification and Subsidy Billing Procedures, Grantees are required to submit

monthly electronic requests for subsidy payment to TRACS.

Voucher data includes request for payment of regular subsidy, special claims, and

miscellaneous adjustments. The Grantee will ensure that Owners submit vouchers to

the Grantee by the tenth day of the month preceding the month for which the Owner

is requesting payment. A Grantee may not pay Owners until Owner vouchers are

received and reviewed for accuracy. The Grantee will only authorize payments of

811 PRA vouchers and special claims to Owners of Eligible Multifamily Properties

with Assisted Units. HUD will make payments to Grantees by the first business day

of every month.

D. Subsidy Payment for Occupied Unit. The Grantee makes rental assistance payments

to the Owner for the months during which a contract unit is leased by an Eligible

Family during the term of the RAC contract.

Except for vacancy payments as provided in Section XV, paragraph H, if an Eligible

Family moves out of the Assisted Unit occupied by the family, the Grantee will not

make any rental assistance payments to the Owner for any month after the month

when the family moves out.

E. Tenant Certification. The Grantee will ensure that Owners certify residents at least

annually and verify their income through the Enterprise Income Verification (EIV)

system. Access to the EIV system is provided by HUD and requires a secured

password. Grantees shall refer Owners to consult HUD’s portal to obtain

authorization to use the EIV system at

http://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/pr

ograms/ph/rhiip/uivsystem.

F. TRACS - Tenant Rental Assistance Certification System. The Tenant Rental

Assistance Certification System (TRACS) is a computer system created by HUD that

enables Grantee to electronically submit their monthly tenant certifications and

voucher information. Grantees are required to use software that interfaces with

TRACS for these submissions in order to ensure that all tenant and contract data is

accurate and current. Based on the Grantee’s TRACS submissions, HUD calculates a

development’s monthly rental subsidy and wires the payments to the Grantee, for the

benefit of the property. The Grantee shall consult HUD’s portal to obtain

authorization to use the TRACS system at

http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh/trx/trxsum

G. Rent Increase Request Requirements. The Grantee will ensure that at the anniversary

of a RAC, Owners of Eligible Multifamily Properties submit a written request to the

Grantee to obtain an annual increase of pre-renewal gross rent (including utilities, if

applicable). The Grantee will review and approve each written request and ensure that

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form HUD-92305-PRA (03/2014)

the approved annual rent adjustment coincides with Part II of the RAC, section 2.7(b).

The Grantee will document the approved contract rent increase and utility allowance

adjustment (if applicable) on a rent schedule (Form HUD-92458) and update iREMS

with the approved rent increase.

H. Special Claims. Grantees can determine whether to include payment of vacancies for

Owners of 811 PRA multifamily developments, but in no case may vacancy payment

exceed 80% of contract rent for up to 60 days for each vacancy.

XVI. HUD OVERSIGHT AND INTERNAL CONTROL

A. HUD’s Involvement. HUD will have ongoing involvement in the review,

development, approval and targeting of the work to be carried out under this

Agreement. HUD’s involvement may include, but is not limited to: (1) conducting

evaluation and research, (2) reviewing Grantee’s administrative process as it relates to

implementing the PRA, including review of Grantee’s forms, verifications, and other

documentation; (3) reviewing outreach and training materials belonging to the

Grantee. The Grantee understands HUD’s desire for involvement and the Grantee will

be timely and cooperate fully. HUD will provide instructions and guidance on the

requirements for data and program materials for any and all HUD reviews and

evaluations in a timely manner.

B. Fraud Monitoring. Grantee is solely responsible for the administration, management

and oversight of the Grant and the program as described in this Agreement, including

monitoring Owners of Eligible Multifamily Properties. Grantee shall monitor Owners

to ensure that program and audit requirements are met as delineated in 24 CFR part

85.

Grantee acknowledges that HUD or its designees may develop and implement

practices to monitor and detect fraud related to PRA, and any successor program, and

to monitor compliance of authorizing laws, as well as other laws that govern these

funds. Grantee covenants that it will fully and promptly cooperate with HUD’s or its

designees’ inquiries about any alleged, perceived or actual fraud and comply with any

anti-fraud and legal compliance procedures which HUD may require.

C. Internal Control Reviews. Grantee shall provide HUD or its designee with access to

all internal control reviews and reports that relate to the PRA, including those

proposed by independent auditing firms including state auditors, to enable HUD to

examine Grantee for compliance with applicable provisions of PRA Program, this

Agreement and applicable laws. A copy of the reviews and reports will be provided

to HUD upon request.

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form HUD-92305-PRA (03/2014)

XVII. CONFLICT OF INTEREST

A. General Requirements. Grantee, where applicable, shall comply with the conflict of

interest requirements in 24 CFR parts 84 and 85.

B. HUD Reform Disclosures. Grantee shall comply with the disclosure requirements of

section 102(b) of the HUD Reform Act of 1989 (42 U.S.C. § 3545(b)) and its

implementing regulations, 24 CFR part 4. To initially satisfy this requirement,

Grantee shall complete the form HUD-2880, Applicant/Recipient Disclosure Update

Report, and this completed Form is hereby incorporated into this Agreement. Grantee

shall update the form HUD-2880 as required by the HUD Reform Act of 1989 and 24

CFR § 4.11.

XVIII. LIMITATIONS ON USE OF APPROPRIATE FUNDS TO INFLUENCE

CERTAIN FEDERAL CONTRACTING AND FINANCIAL TRANSACTIONS

Under 31 USC § 1352 none of the funds appropriated by any Act may be expended by

the recipient of a Federal contract, grant, loan, or cooperative agreement to pay any

person for influencing or attempting to influence an officer or employee of any agency, a

Member of Congress, an officer or employee of Congress, or an employee of a Member

of Congress in connection with any Federal action.

XIX. DEFAULTS AND REMEDIES

A. Grantee Events of Default. Any of the following shall be an Event of Default:

1. Any material failure by Grantee to comply with this Agreement or the Program

Requirements.

2. The failure by Grantee to expend the Grant in a timely manner without providing

an adequate explanation, as approved by HUD.

3. Any material misrepresentation by the Grantee at any time which, if known by

HUD, would have resulted in the Grant not being awarded the Grantee or the

funds not being disbursed from HUD.

B. Notice of Default. HUD shall give Grantee written notice of the occurrence of an

Event of Default and a reasonable opportunity but at least 30 days to take corrective

action. The notice shall identify: (1) the Event of Default, (2) the required corrective

action by Grantee, (3) the date by which the corrective action must be taken, and (4)

the consequences for failing to take corrective action.

C. Remedies. If the Event of Default is not remedied by the Grantee, HUD may take

any of the following action(s):

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form HUD-92305-PRA (03/2014)

1. Terminate this Agreement and may assume Grantee’s rights and obligations under

the RAC;

2. Temporarily suspend providing the Grant to the Grantee;

3. Suspend any Grant amounts held by Grantee;

4. Impose special additional requirements or conditions on the Grantee, subject to 24

CFR part 85, as part of Grantee’s required corrective action.

XX. DEPOSITORY AGREEMENT

A. All Grant amounts shall be promptly deposited with a financial institution whose

deposits are accounts insured by the Federal Deposit Insurance Corporation or the

National Credit Union Share Insurance Fund.

B. The Grantee shall enter an agreement with the depository institution.

C. The Grantee may only withdraw deposited Grant amounts pursuant to this

Agreement.

1. If HUD determines that the Grantee has committed any default under the

Agreement, and has given the Grantee notice of such determination and a

reasonable opportunity to cure, HUD may suspend deposited Grant amounts held

by the depository institution, and may withdraw deposited funds. The Grantee

agreement with the depository institution shall provide that if a required under a

written freeze notice from HUD the depository institution shall not permit any

withdrawal of deposited funds by the Grantee unless withdrawals by the Grantee

are expressly authorized by written notice from HUD to the depository institution.

D. The Grantee may not deposit under the depository agreement monies received or held

by the Grantee in connection with any non-Section 811 PRA Program or successor

program activity nor shall the Grantee comingle these funds with any other non-

Section 811 PRA funds.

XXI. FIDELITY BOND COVERAGE

The Grantee shall carry adequate fidelity bond coverage, as required by HUD, to

compensate the Grantee and HUD for any theft, fraud or other loss of program property

resulting from action or non-action by Grantee officers or employees or other individuals

with administrative functions or responsibility for contract administration under the

Agreement. HUD will allow the Grantee to utilize the Grantee’s state self-

insurance/fidelity bond program upon evidence that under the state program the Grantee

and HUD shall also be compensated for any theft, fraud, or other loss of program

property resulting from the misconduct of Grantee’s employees. Evidence may come in

the form of an opinion letter from the Grantee’s legal counsel or director indicating the

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form HUD-92305-PRA (03/2014)

state law authorizing the coverage and that the coverage includes the Grantee and any

contracts entered into by the Grantee.

XXII. PROGRAM RECORDS

A. The Grantee shall maintain complete and accurate accounts and other records related

to operations under the Agreement. The records shall be maintained in the form and

manner required by HUD, including requirements governing computerized or

electronic forms of recordkeeping. The accounts and records shall be maintained in a

form and manner that permits a speedy and effective audit.

B. The Grantee shall maintain complete and accurate accounts and records for each

RAC.

C. The Grantee shall furnish to HUD such accounts, records, reports, documents and

information at such times, in such form and manner, and accompanied by such

supporting data, as required by HUD, including electronic transmission of data as

required by HUD.

D. The Grantee shall furnish HUD with such reports and information as may be required

by HUD to support HUD data systems.

E. HUD and the Comptroller General of the United States, or their duly authorized

representatives, shall have full and free access to all Grantee offices and facilities

during normal business hours after reasonable notice, and to all accounts and other

records of the Grantee that are relevant to Grantee operations under the Agreement,

including the right to examine or audit the records and to make copies. The Grantee

shall provide any information or assistance needed to access the records.

F. HUD may review and audit Grantee performance of its responsibilities under the

Agreement. The Grantee shall comply with Federal audit requirements. The Grantee

shall engage an independent public accountant to conduct audits that are required by

HUD. The Grantee shall cooperate with HUD to promptly resolve all audit findings,

including audit findings by the HUD Inspector General or the General Accounting

Office.

G. Grantee shall comply with the requirements for record retention and access to records

specified in the applicable regulations in 24 CFR part 85, as well other applicable

provisions of part 85. As a condition of funding, the Grantee is required to provide

documentation as to their financial management systems. Grantee may also be

subject to record retention requirements under other applicable laws and regulations,

including but not limited to, the nondiscrimination regulations cited in section XXIII

of this Agreement.

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form HUD-92305-PRA (03/2014)

XXIII. EQUAL OPPORTUNITY

A. The Grantee shall comply with all equal opportunity requirements imposed by

Federal law, including applicable requirements under:

1. The Fair Housing Act, 42 U.S.C. 3601-3619 (implementing regulations at 24 CFR

parts 100 et seq.).

2. Title VI of the Civil rights Act of 1964, 42 U.S.C. 2000d (implementing

regulations at 24 CFR part 1).

3. Executive Order 11063, Equal Opportunity in Housing (1962), as amended,

Executive Order 12259, 46 FR 1253 (1980), as amended, Executive Order 12892,

59 FR 2939 (1994) (implementing regulations at 24 CFR part 107).

4. Section 504 of the Rehabilitation Act of 1973, 29 U.S.C. 794 (implementing

regulations at 24 CFR part 8).

B. The Grantee, where applicable, shall submit a signed certification to HUD that it shall

comply with the Fair Housing Act, Title VI of the Civil Rights Act of 1964,

Executive Order 11063, Section 504 of the Rehabilitation Act of 1973, and Title II of

the Americans with Disabilities Act.

C. The Grantee shall cooperate with HUD in the conducting of compliance reviews and

complaint investigations pursuant to applicable civil rights statutes, Executive Orders,

and related rules and regulations.

XXIV. EXCLUSION OF THIRD PARTY RIGHTS

A. Eligible Applicants and Tenants and Owners of Eligible Multifamily Properties

described in the Agreement are not a party to or a third party beneficiary of the

Agreement.

B. Nothing in the Agreement shall be construed as creating any right of any third party

to enforce any provision of the Agreement, or to assert any claim against HUD or the

Grantee.

XXV. AMENDMENTS

No changes in the Cooperative Agreement may be made except in writing signed by both

HUD and the Grantee. Additionally, the Agreement shall be construed, and the rights

and obligations of the parties determined, in accordance with all statutory requirements,

and with all HUD requirements, including regulatory and administrative requirements, as

may be amended from time to time.

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form HUD-92305-PRA (03/2014)

XXVI. SECURITY OF CONFIDENTIAL INFORMATION

Systems Confidentiality Protocols. The Grantee must undertake customary and industry

standard efforts to ensure that the systems developed and utilized under this Agreement

protect the confidentiality of every Eligible Applicants’ and Eligible Tenants’ personal

and financial information, both electronic and paper, including credit reports, whether the

information is received from the Eligible Applicants’, Tenants’ or from another source.

The Grantee must undertake customary and industry standard efforts so that neither they

nor their systems vendors disclose any Eligible Applicants’ or Tenants’ personal or

financial information to any third party, except for authorized personnel in accordance

with this Agreement, without their consent.

XXVII. ADDITIONAL CONTRACT PROVISIONS

In cases where Grantees award contracts to non-profit organizations, such contracts shall

contain the appropriate provisions set forth in Appendix A to CFR part 85, titled

“Contract Provisions.”

XXVIII. CLOSEOUT

A. General. The Grantee shall provide HUD with closeout documentation within 90 days

after the end of the Performance Period, or within 90 days of termination of this

Agreement, which will include, without limitation, the following:

1. Final Narrative Report summarizing activities conducted under the Grant,

including significant outcomes resulting from the Grant activities and problems

encountered during the Performance Period;

and/or

2. A final Federal Financial Report

B. Subsequent Adjustments and Continuing Responsibilities. Further to the applicability

of 24 CFR part 85, at the end of the Performance Period, upon the earlier termination

of this Agreement, the Grantee remains subject to the closeout procedures,

subsequent adjustments and continuing responsibilities. All records must be kept in a

safe place and be accessible to auditors and other government officials.

XXIX. MISCELLANEOUS

A. No waiver. No delay or omission by HUD to exercise any right or remedy available

to it under this Agreement or applicable law or to insist upon strict compliance by the

Grantee with its obligations hereunder shall impair any such right or remedy or

constitute a waiver of HUD’s right to demand exact compliance with the terms of this

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form HUD-92305-PRA (03/2014)

Agreement.

B. Waiver of Jury Trial. Each of the parties hereto expressly waives any right to a trial

by jury in any action or proceeding to enforce or defend any rights under this

Agreement, any other principal agreement, or under any amendment, instrument, or

document delivered or that may in the future be delivered in connection herewith or

arising from any such action or proceeding shall be tried before a Federal court and

not before a jury.

C. Counterparts. This Agreement may be executed in two or more counterparts, and it

shall not be necessary that the signatures of each of the parties hereto be contained on

any one counterpart hereof; each counterpart shall be deemed an original, but all

counterparts together shall constitute one and the same instrument.

D. Section Headings and Subheadings. The section headings and subheadings contained

in this Agreement are included for convenience only, and shall not limit or otherwise

affect the terms of this Agreement.

E. Further Assurances. Each party hereto may execute and deliver such additional

documents as may be necessary or desirable to consummate the rights and obligations

contemplated by this Agreement.

F. Parties in Interest; Assignment. This Agreement shall not be assigned by the Grantee

without the prior written consent of HUD.

G. Relationship of the Parties. Neither of the parties is an agent of the other party and

neither party has the authority to represent or bind the other party to anyone else as to

any matter.

H. Survival. Any provisions of this Agreement that expressly or by their operation

should reasonably continue to apply to a party after the termination or suspension (in

whole or in part) of this Agreement shall continue in full force and effect for such

time as is necessary to fully carry out the intent of such provisions.

I. Applicable Laws. This Agreement shall be construed, and the rights and obligations

of the parties determined, in accordance with all statutory requirements, and with all

HUD requirements, including regulatory and administrative requirements, as may be

amended from time to time and consistent with state law.

J. Severability. If any provision of this Agreement is held invalid, the remainder of the

Agreement shall not be affected thereby, and all other parts of this Agreement shall

nevertheless be in full force and effect.

K. Entire Agreement. This Agreement constitutes the entire agreement by and between

Grantee and HUD with respect to the Grant, and it supersedes all prior or

contemporaneous communications and proposals, whether electronic, oral, or written,

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form HUD-92305-PRA (03/2014)

by and between Grantee and HUD with respect to this Agreement.

L. Disbarment. Neither Grantee nor any entity participating in the administration of the

program is or will be disbarred from doing business with the Federal Government.

GRANTEE UNITED STATES DEPARTMENT

OF HOUSING AND URBAN

DEVELOPMENT

By: ____________________________ By: _________________________

State or Commonwealth of

Name: Nancie-Ann Bodell________

____________________________

Title: Director

Office of Asset Management and Portfolio

Oversight

____________________________

Authorized Official

Name: ______________________

Title: _______________________

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form HUD-92305-PRA (03/2014)

ATTACHMENTS

Exhibit 1 Definitions

Exhibit 2 Fiscal Year 2013 Section 811 Project Rental AssistanceNOFA

Exhibit 3 InterAgency Partnership Agreement

Exhibit 4 Grantee Program Description (Identifying Grant Amount, Total Assisted Units &

Identification of Other Parties Assisting Grantee in Executing the Cooperative

Agreement)

Exhibit 5 Program Guidelines

Exhibit 6 Budget / Schedule

Exhibit 7 Agreement to Enter into Rental Assistance Contract, Form HUD-92240-PRA

Exhibit 8 Rental Assistance Contract Part I, Form HUD-92235-PRA

Exhibit 9 Rental Assistance Contract Part II, Form HUD-92237-PRA

Exhibit 10 Section 811 Project Rental Assistance Use Agreement, Form HUD-92238-PRA

Exhibit 11 Section 811 Project Rental Assistance Model Lease, Form HUD-92236-PRA

Exhibit 12 Grantee Addendums

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form HUD-92305-PRA (03/2014)

Exhibit 1 of the Cooperative Agreement

DEFINITIONS

[NOTE: The definitions below are applicable to the Section 811 Project Rental Assistance

program (811 PRA Program) and related contracts, such as the Cooperative Agreement and

Exhibits, including the Rental Assistance Contract and Program Guidelines. All the terms below

do not necessarily appear in every 811 PRA document.]

A. Act means Consolidated and Further Continuing Appropriations Act of 2013, (Public

Law 113-6) and the Consolidated Appropriations Act of 2014 (Public Law 113-76)

B. Administrative Costs are allowable at a rate of no more than eight (8) percent of the

rental assistance Grant amount awarded, unless approved by HUD. These funds may be

used for planning and other costs associated with developing and operating the Section

811 PRA program, including infrastructure and technology needed to operate the

program and costs incurred after applicant’s receipt of an Award Letter from HUD and

before the execution of the Cooperative Agreement. The costs can include both direct and

indirect costs. If a Grantee includes administrative costs in their budget as a direct cost,

they cannot charge these costs as part of their indirect cost rate as well, and should

instruct their auditor or the government auditor setting the rate of the availability and use

of the administrative costs as described in the NOFA.

C. Agreement means the Cooperative Agreement, Exhibits, and Addendum(s), if any, and

any amendment to the documents.

D. Annual Income as defined in 24 CFR part 5.

E. Assisted Units means rental units made available to or occupied by Eligible Tenants in

Eligible Multifamily Properties receiving assistance under 42 U.S.C. § 8013(b)(3)(A).

F. Closeout means the process by which HUD determines that all applicable administrative

actions and all required work of the Agreement have been completed by Grantee and

HUD. The closeout can occur after the period of performance or sooner if necessitated

under the Agreement.

G. Contract Administrator may mean the Grantee’s designated entity to administer the 811

PRA Program.

H. Contract Rent means the total amount of rent specified in the Rental Assistance Contract

(RAC) as payable to the Owner for the Assisted Units.

I. Contract Rent Adjustment means the contract rent that is adjusted at the anniversary of

the Rental Assistance Contract (RAC). The contract rent adjustment must be approved in

accordance with the RAC and HUD requirements.

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form HUD-92305-PRA (03/2014)

J. Decent, Safe, and Sanitary means such housing that meets the physical condition

requirements of 24 CFR part 5, subpart G.

K. Eligible Applicants means an Extremely Low-Income Person with Disabilities, between

the ages of 18 and 62, and Extremely Low Income Families, which includes at least one

Person with a Disability, who is between the ages of 18 and 62 at the time of admission.

The Person with a Disability must be eligible for community-based, long-term care

services as provided through Medicaid waivers, Medicaid state plan options, comparable

state funded services or other appropriate services related to the type of disability(ies)

targeted under the Inter-Agency Partnership Agreement. The Inter-Agency Partnership

Agreement describes the specific target population eligible for the Grantee’s program.

The target population can be revised with HUD approval.

L. Eligible Families shall have the same meaning as “Eligible Tenant”.

M. Eligible Multifamily Properties means any new or existing property owned by a

nonprofit, public or a private entity with at least 5 housing units. Financing commitments

have been made by the Eligible Applicants or any housing agency currently allocating

LIHTC under Section 42 of the Internal Revenue Service Code of 1986 (IRC) or any

state housing or state community development agency allocating and overseeing

assistance under the HOME Investment Partnerships Act (HOME)and/or any federal

agency or any state or local government program. Development costs, if any, are paid

with other public or private resources. Section 811 and Section 202 Capital Advances

may not be used. Properties with existing use restrictions for persons with disabilities are

not eligible, unless such PRA Funds are being used to support other units in the building

without such restrictions. Existing units receiving any form of long-term (longer than 6

months), project-based operating housing subsidy, such as assistance under Section 8,

within a six-month period prior to receiving Rental Assistance Payments are ineligible to

receive this assistance. In addition, units with use agreements requiring housing for

persons 62 or older would not be eligible to receive Rental Assistance Payments.

N. Eligible Tenants means Eligible Applicants who are being referred to available Assisted

Units in accordance with Grantee’s Inter-Agency Agreement and for whom community-

based, long-term care services are available at time of referral. Such services are

voluntary; referral shall not be based on Eligible Tenant’s willingness to accept or not

accept such services.

O. Extremely Low-Income means annual income which does not exceed thirty percent of the

median income for the area, as determined by HUD, with adjustments for smaller and

larger families, except that HUD may establish income ceilings higher or lower than

thirty percent of the median income for the area if HUD finds that such variations are

necessary because of unusually high or low family incomes. HUD’s income exclusions,

as defined under 24 CFR § 5.609, apply in determining income eligibility at the time of

admission and in calculating the Eligible Tenant’s income during the interim/annual

recertification stages.

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form HUD-92305-PRA (03/2014)

P. Grant means the funds made available by HUD to the Grantee for purposes of providing

long-term rental supportive rental assistance for Eligible Tenants. The Grant will fund

the difference between the Contract Rent and the Tenant Rent for the Assisted Units. The

term “PRA Funds” shall have the same meaning as Grant.

Q. Grantee means the applicant selected by HUD under a Section 811 PRA (PRA) Notice of

Funding Availability to administer the Section 811 PRA program, or any successor

program. Grantee shall be a state housing agency or other appropriate entity, as approved

by HUD.

R. HUD means the Department of Housing and Urban Development.

S. Inter-Agency Partnership Agreement means the formal structure for collaboration to

participate in the state’s PRA Program to develop permanent supportive housing for

extremely low-income persons with disabilities. This Partnership Agreement must

include the Grantee and the state agency(ies) that is charged with administering State

Health and Human Services programs and policies, and the State’s Medicaid programs.

In states where the State Health and Human Service Agency is not also the State

Medicaid Agency, both agencies’ participation must be evidenced. The agreement must

include: 1) detailed description of the target population(s) to be served, 2) methods for

outreach and referral, and 3) a commitment to make appropriate services available for

residents in PRA units in multifamily properties. In the agreement, states must identify

the available state administered services and other appropriate services and describe how

such services will be made available to the tenants. Participation in any available

supportive services is voluntary.

T. Notice of Funding Availability (NOFA) means the Fiscal Year 2013 Section 811 Project

Rental Assistance NOFA published on March 4, 2014 and Technical Corrections to the

NOFA.

U. Owner means the nonprofit, public or for-profit entity which owns the Eligible

Multifamily Property.

V. Persons with Disabilities shall have the same meaning as defined under 42 U.S.C. §

8013(k)(2) and shall also include the following, as found in 24 CFR § 891.305:

A person who has a developmental disability, as defined in section 102(7) of the

Developmental Disabilities Assistance and Bill of Rights Act (42 U.S.C. 6001(5)),

i.e., if he or she has a severe chronic disability which:

(i) Is attributable to a mental or physical impairment or combination of mental and

physical impairments;

(ii) Is manifested before the person attains age twenty-two;

(iii) Is likely to continue indefinitely;

(iv) Results in substantial functional limitation in three or more of the following areas

of major life activity:

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form HUD-92305-PRA (03/2014)

(a) Self-care;

(b) Receptive and expressive language;

(c) Learning;

(d) Mobility;

(e) Self-direction;

(f) Capacity for independent living;

(g) Economic self-sufficiency; and

(h) Reflects the person's need for a combination and sequence of special,

interdisciplinary, or generic care, treatment, or other services which are of lifelong or

extended duration and are individually planned and coordinated; or

A person with a chronic mental illness, i.e., a severe and persistent mental or

emotional impairment that seriously limits his or her ability to live independently, and

which impairment could be improved by more suitable housing conditions; or

A person infected with the human acquired immunodeficiency virus (HIV) and a

person who suffers from alcoholism or drug addiction, provided they meet the

definition of "person with disabilities” in 42 U.S.C. § 8013(k)(2).

A person whose sole impairment is a diagnosis of HIV positive or alcoholism or drug

addiction (i.e., does not meet the qualifying criteria in section 811 (42 U.S.C.

§ 8013(k)(2)) will not be eligible for occupancy in an Assisted Unit.

W. Program Requirements means NAHA, the statutory requirements under a successor

program, the NOFA, and any requirements that may be required by HUD, including but

not limited to regulations, and administrative requirements that may be in the form of

notices, handbooks, or guidebooks, as may be amended from time to time.

X. Rental Assistance Payments means the payment made by the Grantee or Contract

Administrator to the Owner, as provided in the Rental Assistance Contract. Where the

Assisted Unit is leased to an Eligible Tenants, the payment is the difference between the

Contract Rent and the Tenant Rent. An additional payment is made to or on behalf of the

Eligible Tenant when the Utility Allowance is greater than the total tenant payment. A

vacancy payment may be made to the Owner when an Assisted Unit is vacant, in

accordance with the Rental Assistance Contract and Program Requirements.

Y. Rental Assistance Contract (RAC) is the contract (form HUD-92235-PRA and form

HUD-92237-PRA), as prescribed by HUD, between the Grantee and the Owner of the

Eligible Multifamily Property which sets forth the rights and duties of the parties with

respect to the Assisted Units in the Eligible Multifamily Property.

Z. Target Population means the specific group or groups of Eligible Applicants and Tenants

described in the Grantee’s Inter-Agency Partnership Agreement who are intended to be

solely served or to be prioritized under the Grantee’s Program.

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form HUD-92305-PRA (03/2014)

AA. Tenant Rent as defined in 24 CFR part 5.

BB. Total Tenant Payment as defined in 24 CFR part 5.

CC. Utility Allowance has the same meaning as defined in 24 CFR part 5.

DD. Uniform Physical Condition Standards (UPCS). Uniform national standards

established by HUD for housing that is decent, safe, sanitary, and in good repair.

UPCS requires that items in five categories (site, building exterior, building

systems, dwelling units, and common areas) and as more specifically described in

24 CFR § 5.703 must be inspected in any physical inspection of the property.

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5700-N-28]

HUD’s Fiscal Year (FY) 2013 Notice of Funding Availability (NOFA) for

Section 811 Project Rental Assistance Program

AGENCY: Office of the Assistant Secretary for Housing-Federal Housing Commissioner, HUD.

ACTION: Notice of Funding Availability (NOFA) for HUD’s Fiscal Year (FY) 2013 Section

811 Supportive Housing for Persons with Disabilities (Section 811) Project Rental Assistance

(PRA) Program.

SUMMARY: Today’s publication provides information and instructions for the FY 2013

Section 811 PRA program. This Notice comprises both the Notice of HUD’s Fiscal Year (FY)

2013 Notice of Funding Availability (NOFA), Policy Requirements, and General Section

(General Section) to HUD’s FY 2013 NOFAs for Discretionary Programs, posted on

www.Grants.gov on August 8, 2012, and this program section to the NOFA. This NOFA

announces the availability of Section 811 PRA funding for state housing or other appropriate

housing agencies to provide project-based rental assistance in the development of supportive

housing for extremely low-income persons with disabilities. To be eligible for Section 811 PRA

funds, these housing agencies must have a formal partnership with the State health and human

service agency and the state agency designated to administer or supervise the administration of

the State plan for medical assistance under Title XIX of the Social Security Act (Medicaid) who

will be providing appropriate services and supports directly to residents. In many states, this is

the same agency, so the NOFA will refer to the “State Health and Human Services/Medicaid

Agency”. This Section 811 PRA program is designed to develop and support sustainable

partnerships with state housing agencies and State Health and Human Services/Medicaid

agencies that will result in long-term strategies to provide permanent affordable rental housing

for people with disabilities receiving assistance under Title XIX of the Social Security Act or

other individuals with disabilities receiving comparable long-term services and supports in the

community.

APPLICATION DEADLINE DATE: The application deadline date is 11:59:59 p.m. on May

5, 2014. Applications must be received by Grants.gov no later than 11:59:59 p.m. eastern time

on the application deadline date.

FOR FURTHER INFORMATION CONTACT: Questions regarding specific program

requirements should be directed to Lessie Powell Evans, Office of Housing Assistance and Grant

Administration, Department of Housing and Urban Development, 451 Seventh Street SW, Room

6234, Washington, DC 20410 or to PRAapplications@hud.gov . Questions regarding the FY

2013 General Section should be directed to the Grants Management Office at 202-708-0667 (this

is not a toll-free number). Persons with hearing or speech impairments may access this number

via TTY by calling the Federal Relay Service at 800-877-8339.

2

HUD expects to hold an information webcast via satellite or a webinar for potential applicants to

learn more about the Program and preparation of an application. For more information about the

date and time of this webcast, consult the HUD website at www.hud.gov.

OVERVIEW INFORMATION:

A. Federal Agency Name. Department of Housing and Urban Development, Office of

Multifamily Housing Programs.

B. Funding Opportunity Title. Section 811 Supportive Housing for Persons with Disabilities -

Project Rental Assistance (PRA) Program.

C. Announcement Type. Initial announcement.

D. Funding Opportunity Number. The Federal Register number for this NOFA is

FR-5700-N-28.

E. Catalog of Federal Domestic Assistance (CFDA) Number(s). 14.326, OMB Approval

No.:2502-0608.

F. Application Deadline Date. The deadline date is 11:59:59 p.m. eastern time on May 5,

2014. Applications must be received by Grants.gov no later than 11:59:59 p.m. eastern time on

the application deadline date. Applications must meet the timely receipt requirements of the

General Section. See Section IV of the General Section regarding application submission

procedures and timely filing requirements. Eligible Applicants need to be aware that following

receipt, applications go through a validation process in which the application may be accepted or

rejected. Please allow time for the process to ensure that you meet the timely receipt

requirements. Please see the FY 2013 General Section for instructions for timely receipt,

including actions to take if the application is rejected. Eligible Applicants should carefully read

the section titled “INSTRUCTIONS ON HOW TO DOWNLOAD AN APPLICATION

PACKAGE AND APPLICATION INSTRUCTIONS” in the General Section. This section

contains information on using Adobe Reader, HUD’s timely receipt and grace period policies,

and other application information. The latest version of Adobe Reader used by Grants.gov is

Adobe Reader 10.0.1 which is compatible with Microsoft Vista for PCs and MAC computers.

Nuance Readers cannot be used.

G. Additional Overview and Contact Information.

1. Purpose of the Program. On January 4, 2011, the President signed the Frank Melville

Supportive Housing Investment Act of 2010 which amended Section 811 of the Cranston-

Gonzalez National Affordable Housing Act (Pub L. 111-374). This legislation made significant

changes to Section 811 with one of the changes being the establishment of new project rental

assistance authority which provides funding to state housing and other appropriate agencies for

project-based rental operating assistance for extremely low-income persons with disabilities.

The primary purpose of this program is to identify, stimulate, and support innovative state-level

3

strategies that will transform and increase housing for extremely low-income persons with

disabilities while also making available appropriate support and services. HUD is seeking to

support State housing and health and human service/Medicaid agencies collaborations that have

or will result in increased access to affordable permanent supportive housing units – new and

existing units – with access to appropriate services. Many States have already developed

partnerships to address this need, and the Department hopes to support these efforts and

incentivize additional states to develop similar collaborative efforts. This Section 811 PRA

NOFA will allow HUD to identify and support successful and promising state models. This

program provides states with the flexibility to award and administer these funds to address the

shortage of affordable and integrated housing for persons with disabilities. Housing agencies

may either directly administer the rental assistance contracts to eligible properties or contract

with other qualified parties to administer the long-term rental assistance contracts.

The outcomes of the program include:

a. Facilitating and sustaining effective and successful partnerships between state housing or

other appropriate housing agencies and state health and human service/Medicaid agencies to

provide permanent housing with the availability of supportive services for extremely low-

income persons with disabilities.

b. Discovering approaches to providing housing for persons with disabilities with access to

appropriate services that can be replicated.

c. Identifying innovative and replicable ways of using and leveraging Section 811 PRA funds.

d. Substantially increasing integrated affordable rental housing units for persons with

disabilities within existing, new, or rehabilitated multifamily properties with a mix of

incomes and disability status.

e. Creating more efficient and effective uses of housing and health care resources.

2. Available Funds. The available funding is made by the Consolidated and Further Continuing

Appropriations Act, 2013 (Public Law 113-6), March 26, 2013 and the Consolidated

Appropriations Act, 2014 (Public Law113-76), January 17, 2014, totaling $120 million.

Additional funding may be available based on carry-over funds from prior fiscal years

3. Type of Funds. Project rental assistance that will cover the difference between the tenant

payment and the approved rent (as described in Section III.B.2 Program Requirements). These

funds cannot be used for construction or any capital development costs.

4. Award Information. HUD anticipates individual grants awarded under this NOFA will

range from a minimum of $2 million and a maximum of $12 million.

5. Matching Funds. There is no matching requirement for applications under this program

NOFA. However, leveraging is encouraged and addressed in Section V.B.4 Rating Factor 4,

Leveraging.

4

6. Eligible Applicants. Any housing agency currently allocating Low Income Housing Tax

Credits (LIHTC) under Section 42 of the Internal Revenue Service Code of 1986 or any state

housing or state community development agency allocating and overseeing assistance under the

HOME Investment Partnerships Act (HOME) or a similar federal or state program. An Eligible

Applicant may also be a state, regional, or local housing agency or agencies; or a partnership or

collaboration of state housing agencies and /or state and local/regional housing agencies. See

Sections III.A for additional information related to Eligible Applicant. To be eligible, the agency

must have a formal partnership with the State Health and Human Services/Medicaid agencies

(See Section III below for specific information).

Note: Only one Eligible Applicant per state is eligible to receive funding, and each State

should determine which Eligible Applicant, in the event there may be more than one, is the

most appropriate.

The State Health and Human Services/Medicaid agency can only be included in one

application for Section 811 PRA funds per state. If the state health and human

services/Medicaid agency is included in multiple applications from one state, none will be

considered. Since this is a state program, HUD will be rating individual state applications. The

State Health and Human Services/Medicaid agency will need to decide which Eligible Applicant,

in the event there may be more than one, to partner with for this application submission.

Note: Private Citizens, for-profit entities, and nonprofit organizations are not eligible to

apply.

FULL TEXT OF ANNOUNCEMENT

I. FUNDING OPPORTUNITY DESCRIPTION

A. Program Description. This Section 811 PRA Program seeks to identify, stimulate, and

support sustaining state approaches that will transform the provision of housing for persons with

disabilities while providing access to appropriate supports and services. This NOFA will provide

project-based rental assistance funding to housing agencies. These funds are only available to be

used as project-based rental assistance for housing units integrated in multifamily properties that

are set-aside for extremely low-income persons with disabilities who are eligible for community-

based long term care services and supports provided under a State Medicaid Program or other

comparable long-term services program, plus administrative costs as defined in Section I.C.1

below. This is not a voucher program. This Section 811 PRA program will support successful

and promising state partnership models that have been developed to increase the number of

permanent housing units for persons with disabilities with access to appropriate services.

This NOFA allows states to creatively combine or bundle Section 811 PRA funds with

existing state administered affordable rental housing finance and development programs.

Housing agencies may either directly administer this project rental assistance to supported

properties or in instances where there is limited experience, housing agencies are encouraged to

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partner/contract with other qualified parties to administer the long-term project rental assistance

contracts. See “Experience Managing Rental Assistance Program” under Section V.B, Rating

Factor 1.B.

A major threshold requirement of the program is that the state housing agency must have a

focused partnership as described in Section III.C.2.b, with the State Health and Human

Service/Medicaid Agencies that will be responsible for ensuring that residents have access to the

services and supports necessary to live in the community as described in the Program

Requirements below.

B. Authority. The authority for this program is Section 811 of the Cranston-Gonzalez National

Affordable Housing Act, as amended by the Frank Melville Supportive Housing Investment Act

of 2010 (Pub. L. 111-374). The funding is made available by the Consolidated and Further

Continuing Appropriations Act, 2013 (Public Law 113-6), approved March 26, 2013) and the

Consolidated Appropriations Act, 2014 (Public Law, 113-76), approved January 17, 2014.

C. Terms and Definitions.

1. Administrative Costs for Awardees. Administrative costs pursuant to this grant award may

be provided at initial funding and subsequent annual funding renewals under this award.

Administrative costs are allowable at a rate of up eight (8) percent of the annual total amount

awarded at HUD’s discretion based upon the range of tasks undertaken by the Eligible

Applicant, see Section V.B, Ranking Factor 1.B, for additional information on administrative

costs. These funds may be used for planning and other costs associated with developing and

operating the Section 811 PRA program, including infrastructure and technology needed to

operate the program. The costs should include both direct and indirect costs. If an Eligible

Applicant includes administrative costs in their budget as a direct cost, it cannot charge these

costs as part of their indirect cost rate as well, and should instruct their auditor or the government

auditor setting the rate of the availability and use of the administrative costs as described in this

NOFA and how the Eligible Applicant is applying them in their PRA program.

2. Co-Applicant. When two Eligible Applicants work together to submit a unified

application to HUD, each will be considered a Co-Applicant under the same application.

The Co-Applicant will also sign the Cooperative Agreement and be responsible for

implementing the activities identified in the approved Implementation Plan, but will not directly

receive access to funding through HUD’s Line of Credit Control System (LOCCS). Only the

Lead Applicant, as defined below, which must be identified in the Abstract and the Narrative

response to the Rating Factors, shall have access to LOCCS. See definition of Lead Applicant

below.

3. Cooperative Agreement. The grant award shall be in the form of a Cooperative Agreement

executed between HUD and the Eligible Applicant (and where applicable, Co-Applicant). HUD

will have substantial involvement during the period of performance, including but not limited to:

development of the program, oversight of the progress made on the proposed activities and

results of those activities, monitoring of funds drawn and project deliverables, and timelines.

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The terms of the Cooperative Agreement include the work to be performed under the grant and

any special conditions or requirements, including the extent of HUD involvement.

4. Eligible Multifamily Property. An eligible multifamily property can be any new or existing

property owned by a nonprofit or a private entity with at least 5 housing units. Financing

commitments have been made by the Eligible Applicants or any housing agency currently

allocating LIHTC under Section 42 of the Internal Revenue Service Code of 1986 (IRC) or any

state housing or state community development agency allocating and overseeing assistance under

the HOME Investment Partnerships Act (HOME) and/or any federal agency or any state or local

government program. Development costs, if any, must be paid with other public or private

resources. Section 811 and Section 202 Capital Advances may not be used. Properties with

existing use restrictions for persons with disabilities are not eligible, unless such Section 811

PRA funds are being used to support other units in the building without such restrictions.

Existing units receiving any form of long-term operating housing subsidy within a six-month

period prior to receiving Section 811 PRA funds, such as assistance under Section 8, are

ineligible to receive this assistance. In addition, units with use agreements requiring housing for

persons 62 or older would not be eligible to receive Section 811 PRA funds.

5. Eligible Tenants. Section 811 PRA funds can only be provided to support units for

extremely low-income households where at least one person must be an individual with a

disability, 18 years of age or older and less than 62 years of age at the time of admission into the

property. The person with the disability must be eligible for community-based, long-term

services as provided through Medicaid waivers, Medicaid state plan options, state funded

services or other appropriate services related to the target population under the Inter-Agency

Partnership Agreement, as described in III.C.2.b.

6. Extremely Low-Income Family. A family whose annual income does not exceed 30 percent

of the median income for the area, as determined by HUD with adjustments for smaller and

larger families, is eligible to benefit from this rental assistance program. Both “annual income”

and “extremely low-income family” are defined in 24 CFR 5.603. Federally mandated income

exclusions defined by 24 CFR 5.609 must be applied in determining income eligibility at the

time of admission and in calculating the Eligible Tenant’s income during the interim/annual

recertification stages.

7. Grantee. When an Eligible Applicant is successfully selected by HUD and executes the

Cooperative Agreement with HUD, the same entity shall be referred to as the Grantee for the

purposes of this NOFA. In cases where a Co-Applicant also executes the Cooperative

Agreement, the Co-Applicant would be referred to as the Co-Grantee.

8. Implementation Plan. The Implementation Plan is the applicant’s comprehensive strategy

and plan that will be used to develop and manage the state’s Section 811 PRA Program as

presented in the Section 811 PRA grant application. The specific requirements are outlined in

Section V.B. Rating Factor 3.

9. Lead Applicant. Lead Applicant means where there is also a Co-Applicant, the primary

housing agency responsible for implementing the HUD funded Section 811 PRA Program. The

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Lead Applicant must meet the definition of an Eligible Applicant. The Lead Applicant will sign

the HUD Agreement and is the sole entity that will have access to HUD’s Electronic Line of

Credit Control System (eLOCCS) in order to drawdown PRA funding.

10. Letter(s) of Intent. Eligible Applicants must demonstrate their ability to administer the

type of multifamily financing and ensure Eligible Tenants in the Eligible Multifamily Property

receive supportive services as described in this NOFA. To do so, Eligible Applicants either must

demonstrate their own capacity to provide required capital funding and manage affordable

housing programs and projects or must provide letters of intent from one or more third party

entities (such as Performance Based Contract Administrators, Public Housing Authorities or

private contractors that specialize in this work and have established high quality track records

administering and processing payments to property owners). Eligible Applicants can contract

with public or private entities to perform functions under this NOFA. Letters of Intent must be

provided in those instances where the Eligible Applicant is using other entities to perform

requirements under this NOFA. To qualify, the letter of intent, whether from the one or more

state agencies or third party entities must: 1) include the name of the entity agreeing to perform

an activity specified in the application; 2) include the name of the Eligible Applicant;

3)demonstrate the financial capacity to deliver the resources necessary to carry out the activity

expressed in dollar value as it relates to the program activity or commit to provide the specific

supportive service(s); and 3) evidence the intent to commit the resources to the program if the

application is funded. The letter of intent must be written on the letterhead of the entity/agency

and addressed to the Eligible Applicant, must be executed by an official of the organization

legally authorized to make commitments on behalf of the organization, must be dated no earlier

than 9 months from the date of publication of this NOFA, and must state how long the

commitment remains valid should an award be granted. HUD understands the difficulties in

obtaining new agreements in existing programs, however, existing agreements dated prior to 9

months of the date of the publication of this NOFA need to be affirmed by all signatories.

11. Persons with Disabilities. Person with disabilities shall have the meaning provided in

Section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013(k)(2)).

The term "person with disabilities” shall also include the following:

a. A person who has a developmental disability, as defined in section 102(7) of the

Developmental Disabilities Assistance and Bill of Rights Act (42 U.S.C. 6001(5)), i.e., if he

or she has a severe chronic disability which:

(i) Is attributable to a mental or physical impairment or combination of mental and

physical impairments;

(ii) Is manifested before the person attains age twenty-two;

(iii) Is likely to continue indefinitely;

(iv) Results in substantial functional limitation in three or more of the following areas of

major life activity:

(a) Self-care;

(b) Receptive and expressive language;

(c) Learning;

(d) Mobility;

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(e) Self-direction;

(f) Capacity for independent living;

(g) Economic self-sufficiency; and

(h) Reflects the person's need for a combination and sequence of special,

interdisciplinary, or generic care, treatment, or other services which are of lifelong or

extended duration and are individually planned and coordinated.

b. A person with a chronic mental illness, i.e., a severe and persistent mental or emotional

impairment that seriously limits his or her ability to live independently, and which impairment

could be improved by more suitable housing conditions.

c. A person infected with the human acquired immunodeficiency virus (HIV) and a person who

suffers from alcoholism or drug addiction, provided they meet the definition of "person with

disabilities” in Section 811 (42 U.S.C. 8013(k)(2)). A person whose sole impairment is a

diagnosis of HIV positive or alcoholism or drug addiction (i.e., does not meet the qualifying

criteria in section 811 (42 U.S.C. 8013(k)(2)) will not be eligible for occupancy in a Section 811

PRA project.

12. Section 811 Project Rental Assistance (PRA). Section 811 Project Rental Assistance is

defined as funding that is made available by HUD to Grantee for purposes of providing long-

term rental assistance for supportive housing for non-elderly, extremely low-income persons

with disabilities and for extremely low-income households that include at least one non-elderly

person with a disability that will fund the difference between the tenants’ payment for rent and

the approved rent for the Section 811 PRA unit.

13. Rental Assistance Contract (RAC). Rental Assistance Contract is defined as the contract

between the Grantee and the owner of the Eligible Multifamily Property which sets forth the

rights and duties of the parties with respect to the Eligible Multifamily Property and the

administration of the PRA program

14. Uniform Physical Condition Standards (UPCS). Uniform national standards established

by HUD for housing that is decent, safe, sanitary, and in good repair. UPCS requires that items

in five categories (site, building exterior, building systems, dwelling units, and common areas)

must be inspected in any physical inspection of the property. UPCS is more specifically

described in 24 CFR 5.703.

II. AWARD INFORMATION

A. HUD Award and HUD’s Involvement. HUD will notify all applicants as to whether or not

they have been conditionally selected for an award. If selected, HUD’s notice concerning the

amount of the award (based upon the approved application) will constitute HUD’s conditional

approval, subject to negotiation and the execution of a Cooperative Agreement. HUD will have

ongoing involvement in the review, development and the ongoing operation of state programs

and the Cooperative Agreement allows this involvement. Withdrawals of funds from the

eLOCCS system are subject to HUD approval.

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B. Funding Availability. Approximately $100 million is available in FY 2013 and

approximately $20 million in FY 2014, totaling $120 million in funding. Additional funding

may be available based on carry-over funds from prior years.

1. Number of Awards. HUD expects to provide between 12 and 18 awards.

2. Type of Awards. HUD will provide Grantees with Section 811 PRA grants to administer

Rental Assistance Contracts with owners of Eligible Multifamily Properties.

3. Period of Performance. The Cooperative Agreement between HUD and Grantee shall be for

a minimum of 20 years, with initial funding for the first five years, and with subsequent renewal

subject to appropriations. All Rental Assistance Contracts shall be for a minimum of 20 years

(continued funding in years beyond the first five years is also subject to appropriations).

III. ELIGIBILITY INFORMATION

A. Eligible Applicants. Any housing agency currently allocating LIHTC under Section 42 of

the Internal Revenue Service Code of 1986 (IRC) or any state housing or state community

development agency allocating and overseeing assistance under the HOME Investment

Partnerships Act (HOME) and/or a similar federal or state program. An Eligible Applicant may

also be a state, regional, or local housing agency or agencies; or a partnership or collaboration of

state housing agencies and/or state and local/regional housing agencies. To be eligible, the

agency must have a formal partnership with the State Health and Human Services/Medicaid

agencies (See Section III below for further information).

Note: Only one Eligible Applicant is eligible per state to receive funding and each state

should determine which Eligible Applicant, in the event there may be more than one, is the

most appropriate.

The State Health and Human Services/Medicaid Agency can only be included in one

application for Section 811 PRA funds. If the state health and human services/Medicaid

agency is included in multiple applications from one state, none will be considered. Since

this is a state program, HUD will be rating individual state applications. The State Health and

Human Services/Medicaid agency will need to decide which Eligible Applicant, in the event

there may be more than one, to partner with for this application submission. In collaborations or

partnerships of Co-Applicants, one must be identified as the “Lead Applicant” (see Section I. C

Terms and Definitions below). The Lead Applicant and Co-Applicants must meet the definition

and requirements of an Eligible Applicant and must meet all of the Program Requirements

below.

1. Ineligible to Apply. Private citizens, for-profit entities, and nonprofit organizations are not

eligible to apply.

2. Troubled Status. If an applicant or co-applicant has any outstanding HUD or Office of

Inspector General (OIG) audit finding or has been designated with a “Troubled” status or other

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similar finding or designation, as a threshold requirement under Section III.C.3 of this NOFA,

HUD will use documents and information available to it to determine whether the applicant is

acceptable to HUD. The applicant may still be eligible to apply if HUD determines:

a. The finding or designation is for reasons that will not affect its capacity to carry out the

Eligible Activity;

b. The applicant is making substantial progress toward eliminating the deficiencies of the

agency that resulted in the designation or finding;

c. The applicant has not been found to be in noncompliance for fair housing or other civil rights

requirements, or

d. The applicant is otherwise determined to be capable of carrying out the Eligible Activity.

B. Cost Sharing or Matching.

There is no matching requirement for applications under this program NOFA. However,

leveraging is encouraged and addressed in Section V.A.4 Rating Factor 4, Leveraging.

C. Other

1. Eligible Activities. Section 811 PRA funds can only be used to fund project-based rental

operating assistance and allowable administrative costs relating to the administration of Section

811 PRA Program, but cannot be used to fund any project development costs. Development

costs on eligible Multifamily Projects must be paid with funds from other public and private

sources, however, a commitment of funding for project costs must be made by the LIHTC

allocation agency, a participating jurisdiction receiving assistance under the HOME program, or

any federal, state or local government agency in accordance with program requirements or

regulations, with the exception of HUD Section 811 and Section 202 capital advance funds

which cannot be used. Section 811 PRA funds allow Eligible Applicants to be flexible in how

the project rental assistance is structured and administered within the confines of the program

requirements under this NOFA. Eligible tenants can be selected in accordance with state

approved tenant selection policies, criteria, and federal nondiscrimination laws. In order for

supportive units to qualify for Section 811 PRA funds, there must be a written agreement with

the State Health and Human Services/Medicaid agency or agencies that appropriate services will

be made available for the tenants, more fully described in 2.c below.

2. Threshold Requirements for All Applications.

a. General HUD Threshold Nondiscrimination and Other Requirements. Except for those

specific Program Requirements in Section III of this NOFA, see Section III.C. of the General

Section for other applicable thresholds requirements. Eligible Applicants should review those

provisions that could result in the failure to receive funding, including the Dun and Bradstreet

Universal Numbering System (DUNS) Number Requirement, Resolution of Outstanding Civil

Rights Matters, provisions relating to Delinquent Federal Debts, and the Name Check Review.

HUD will not make awards to entities that are debarred, suspended or are on the HUD Limited

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Denial of Participation List. Non-compliance with a threshold requirement will result in

disqualification.

b. Program Specific Threshold Requirement. In addition to the threshold requirements of the

General Section, each application must meet the following program specific threshold

requirement:

The Inter-Agency Partnership Agreement outlining the partnership between the

Lead Applicant and state health and human services/Medicaid agency (ies). The

Eligible Applicant, or in cases where there are Co-applicants, the Lead Applicant must

provide an Inter-Agency Partnership Agreement that provides evidence that a formal

structure for collaboration to participate in the state’s Project Rental Assistance program

to develop permanent supportive housing for extremely low-income persons with

disabilities. This Partnership Agreement must include the Eligible Applicant and the

state agency or agencies charged with administering state health and human services

programs and policies, and the state Medicaid programs. In states where the state health

and human service agency is not also the state Medicaid agency, both agencies’

participation must be evidenced. If these agencies have an existing agreement to provide

housing and services, an addendum may be added to that existing document that

addresses the provisions for this 811 PRA Program and that document can then serve as

the Inter-Agency Partnership Agreement. Additional agencies providing oversight,

coordination or services can also be included in this agreement. The agreement must

include: 1) detailed description of the target population(s) to be served, 2) methods for

outreach and referral, and 3) a commitment to make appropriate services available for

residents in Section 811 PRA assisted units in multifamily properties. The authorizing

legislation allows the Section 811 PRA program applicants to identify one or more

specific targeted populations for this funding. In the agreement, States must identify the

available state administered services and other appropriate services and describe how

such services will be made available to the tenants.

The agreement shall have a term of not less than five (5) years and should be co-terminus

with the term of the initial funding of units under this NOFA. HUD is seeking long term

commitments from states to make available services for the targeted populations. HUD

understands these services are typically funded annually through state and federal

entitlement programs and will accept commitments subject to contingencies based upon

annual funding. It shall also evidence the Eligible Applicant’s commitment to ensure that

tenancy in Section 811 PRA assisted units is reserved for the targeted populations

identified in the agreement that will benefit from the available services. Such services

will allow for eligible residents to live independently in supportive housing units. To

protect the interest of both tenants and multifamily owners, participating agencies must

demonstrate the States’ ability to provide appropriate community-based long-term

services and supports to the populations proposed to be targeted under this application.

However, tenant participation in supportive services is voluntary and cannot be required

as a condition of tenancy.

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In addition to HUD regulations regarding evictions under 24 CFR part 5, an owner may

not terminate the tenancy or refuse to renew the lease of a tenant of a Section 811 PRA

assisted unit except: 1) for serious or repeated violations of the terms and conditions of

the lease, for violation of applicable federal, state, or local law, or for other good cause,

and 2) by providing the tenant, not less than 30 days before such termination or refusal to

renew, with written notice specifying the grounds for such action.

3. Program Requirements.

a. Limitation on Populations Served. Section 811 PRA funds may only be provided for

housing units set aside for extremely low-income households, where at least one person is an

individual with a disability, and is age 18 or older, but less than 62 years of age at the time of

admission. Furthermore, a person with a long term disability served under this program must be

eligible for community-based long term care services and supports provided for under the state’s

plan for medical assistance under Title XIX of the Social Security Act such as Medicaid 1915(c)

waivers, the Medicaid 1915(i) option, the Medicaid Rehabilitation option, certain Medicaid 1115

demonstration waivers and similar successor programs, or other federal or state appropriated or

other targeted community-based long-term services and supports program that the state certifies

is comparable to Medicaid long-term care services.

b. Limitation on Units Assisted. Eligible Multifamily Properties may only receive Section 811

PRA funds if the housing assisted does not currently have an existing use restriction or a

contractual obligation to serve persons with disabilities. Units receiving any form of federal or

state housing operating assistance (such as Section 8) are ineligible to receive Section 811 PRA

assistance, unless such Section 811 PRA funds are being used to support other units in the

building without such restrictions. Existing units receiving any form of long-term operating

housing subsidy within a six-month period prior to receiving Section 811 PRA funds, such as

assistance under Section 8, are ineligible to receive this assistance. In addition, units with use

agreements requiring housing for persons 62 or older would not be eligible to receive Section

811 PRA funds. No more than 25 percent of the total units in Eligible Multifamily

Properties can: 1) be used for supportive housing for persons with disabilities (either under

the Section 811 PRA program or any other federal or state program); or 2) have any

occupancy preference for persons with disabilities. These units must be dispersed throughout

the property and must not be segregated to one area of a building (such as on a particular floor or

part of a floor in a building or in certain sections within a project). Owners may designate units

types (e.g., accessible, 1-bedroom, etc.) rather than designating specific units (e.g., units 101,

201, etc.) to be set-aside for Section 811 PRA supportive housing units. This would allow

flexibility in offering the next available unit to a person with a disability under this program as

long as the unit type was designated as being set-aside for persons with disabilities and the

number of units occupied by persons with disabilities under the set-aside had not been met.

NOTE: Eligible Applicants may not prohibit persons with disabilities from applying for

residency in non-Section 811 PRA units.

c. Inter-Agency Partnership Agreement. Eligible Applicants must evidence a formalized

structure for collaboration between the Eligible Applicant and the state agency charged with

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administering state health and human services programs and policy and the state Medicaid

programs as more fully described below in III.C.1. In states where these functions have been

separated, both agencies’ participation must be evidenced.

d. Rental Assistance Contract (RAC). As defined above in I.C, the Grantee administering the

Section 811 PRA funds will enter into a RAC with each owner of an Eligible Multifamily

Property, in a manner and form as determined by HUD. The initial term of such contracts

between the Grantee and the Eligible Multifamily Property owners shall have a minimum term of

20 years; however, financial support from HUD following initial funding is subject to available

appropriations. These contracts may be renewed if all parties agree to such renewal; however,

funding under the terms of the contract will be subject to the availability of federal

appropriations. Grantees may include an addendum to the RAC, upon HUD approval, provided

that the provisions of the addendum do not conflict with any requirement under the NOFA or the

Cooperative Agreement, or any HUD or federal requirements.

(1) This contract will provide the rental assistance payments to the owner for Eligible Tenants,

as defined above in I. C., residing in units that have been set-aside by the owner as supportive

housing for persons with disabilities.

(2) The RAC will identify the project, the number of contract units by bedroom size and

accessibility, the contract terms and the conditions for receipt of the project rental assistance

payments, including provisions ensuring that tenants are afforded the same tenant protections

in 42 USC 8013(i)(2) as provided to tenants receiving assistance under HUD’s Section 811

Program, e.g., lease term, termination of tenancy, and voluntary participation in services.

(3) The RAC will provide for the Grantee to certify annually to HUD that Section 811 PRA

assisted units are occupied by Eligible Tenants. It will also provide for the Grantee to

conduct regular physical inspections of those units to confirm that they meet the uniform

national standards established by HUD for housing that is decent, safe, sanitary, and in good

repair. The Grantee may inspect Section 811 PRA units using a frequency and sample size

that conforms with other federal or state housing program requirements.

(4) For the purpose of this grant, the Grantee must determine an appropriate RAC rent level

which may or may not reflect the actual costs of operating the Section 811 PRA assisted

units. The RAC will specify that the rental assistance payment made to the owner of a

Section 811 PRA unit will be the difference between the RAC rent level for the unit and the

Eligible Tenant rent payable by the Extremely Low-Income Family. In no circumstance may

the initial RAC rent level exceed the applicable as determined by HUD, unless such rent

level is substantiated by a market study that has been prepared in accordance with the

requirements of a state housing agency or of Chapter 9 of HUD’s Section 8 Renewal Guide

(see http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh/mfhsec8) as

approved by HUD.

(5) With HUD approval, the Grantees may impose additional requirements in the RACs, as an

addendum, so long as those requirements do not contradict any HUD requirements, including

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those identified in the Cooperative Agreement, which will be provided to Eligible Applicant

following the award of funds. HUD may impose additional requirements for the program.

e. Administration of the Rental Assistance Contracts (RACs). Grantees will be responsible

for administering the Section 811 PRA Program, managing the RACs and maintaining all

applicable HUD and other federal requirements. HUD reserves the right to assume the

RACs at any time as a result of material non-compliance or non-performance by the Grantee, or

if as a result of the Section 811 rulemaking process, HUD determines that direct administration

of the RACs by HUD or its designee is the most viable option for the long-term implementation

and oversight of the Project Rental Assistance program.

f. Use Restriction. Housing assisted with Section 811 PRA must have a minimum 30 year use

restriction for extremely low-income persons with disabilities. The terms and conditions of the

use agreement and its enforcement shall be specified in the Cooperative Agreement and the

RAC. If Congress fails to appropriate funds adequate to meet future renewal needs pursuant to

the Cooperative Agreement, HUD will not enforce any use agreements on properties that have

been funded under such agreement. However, under such a circumstance, and in accordance

with policies, requirements and terms of the Cooperative Agreement, as will be established by

HUD, HUD will allow grantees to continue to enforce or terminate such use agreements at the

grantees’ discretion.

g. Eligible Tenant’s Contribution to Rent. The Eligible Tenant’s rent contribution shall

be no more than 30 percent of the family’s adjusted monthly income, as determined

annually through an income recertification conducted in a manner prescribed by HUD.

Grantees will be required to ensure that tenant data is entered into HUD’s Tenant Rental

Assistance Certification System (TRACS) in the administration of the Section 811 PRA

program. TRACS is a HUD computer system developed to help improve financial controls

over assisted housing programs by automating manual procedures and incorporating

automated controls. Enterprise Income Verification (EIV) System must be used by owners

of Eligible Multifamily Properties and/or Grantees to verify income on all Section 811

PRA assisted units. EIV makes integrated income data available from one source to use to

improve income verification.

h. Tenant Lease Term. The initial lease term between an Eligible Tenant and an owner of

an Eligible Multifamily Property for the Section 811 PRA assisted units shall not be less

than one year. The lease will be on a HUD provided form. Grantees may include an

addendum to the HUD lease, upon HUD approval, provided that the provision of the

addendum do not conflict with any requirement under the HUD lease, the NOFA or the

Cooperative Agreement, or any HUD or federal requirements.

i. Approved Rent and Rent Adjustments. Eligible Applicants must clearly outline how rents

will initially be established. In no circumstance may the initial RAC rent level exceed the

applicable Fair Market Rent (FMR) level as determined by HUD, unless such rent level is

substantiated by a market study that has been prepared and reviewed in accordance with the

requirements of a state housing agency or of Chapter 9 of HUD’s Section 8 Renewal Guide

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(see http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh/mfhsec8) or as

approved by HUD. Rents can only be adjusted annually based upon

1) HUD’s Operating Cost Adjustment Factor (OCAF), or 2) other operating cost index

proposed by the applicant and approved by HUD. For the most recent guidance on OCAF,

please see http://www.gpo.gov/fdsys/pkg/FR-2011-10-26/pdf/2011-27816.pdf. The grantee

will be rated based upon how approved rents will be established and adjusted in Section V.B,

Rating Factor 3 below.

j. Barrier Free/Accessibility Requirement for Units, Buildings, and Facilities, Including

Public and Common Use Areas. The Section 811 PRA program must meet accessibility

requirements of Section 504 of the Rehabilitation Act of 1973 and implementing regulations at 24

CFR part 8, and the Americans with Disabilities Act and implementing regulations at 28 CFR parts

36 and 36, as applicable. Eligible Multifamily Properties must also meet the design and construction

requirements of the Fair Housing Act and implementing regulations at 24 CFR part 100. However,

Section 811 PRA assisted units can consist of a mix of accessible units for those persons with

physical disabilities and non-accessible units for those persons without physical disabilities.

k. Compliance with Fair Housing and Civil Rights Laws. Grantees and owners of Eligible

Multifamily Properties must comply with the fair housing and civil rights requirements in

Section III.C.3 of the General Section. In addition, Grantees will be required to certify that they

will comply with the requirements of the Fair Housing Act, Title VI of the Civil Rights Act of

1964, Section 504 of the Rehabilitation Act of 1973, the Age Discrimination Act of 1975, and

Title II or III of the Americans with Disabilities Act, as applicable.

l. Affirmatively Furthering Fair Housing. Under Section 808(e)(5) of the Fair Housing Act,

HUD has a statutory duty to affirmatively further fair housing. HUD requires the same of its

funding recipients. Grantees will be required to certify that they will affirmatively further fair

housing, and each grantee must establish an affirmative fair housing marketing plan for its state

PRA program and projects, and require other participating agencies and owners to follow its plan

when marketing PRA-assisted units. HUD will provide further guidance on the required

contents of marketing plans to successful applicants. Instead of the actions for affirmatively

furthering fair housing described in the General Section of HUD’s FY 2013 NOFAs, successful

applicants must adopt affirmative marketing procedures for their Section 811 PRA program.

Affirmative marketing procedures consist of actions to provide information and otherwise attract

eligible persons to the program regardless of race, color, national origin, religion, sex, disability,

or familial status, who are not likely to apply to the program without special outreach. Grantees

must affirmatively further fair housing by selecting projects for participation that offer access to

appropriate services, accessible transportation, and commercial facilities to ensure greater

integration of persons with disabilities in the broader community. Grantees must require owners

of Eligible Multifamily Properties to adopt actions and procedures to ensure that Section 811

PRA assisted units are dispersed and integrated within the property. Grantees must keep records

describing actions taken to affirmatively market the program, annually assess the success of their

affirmative marketing activities, and make any necessary changes to their affirmative marketing

procedures as a result of the evaluation. Eligible applicants must describe their methods

of outreach and referral and waiting list policies in Section V.B., Rating Factor 3. All methods

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of outreach and referral and management of the waiting list must be consistent with fair housing

and civil rights laws and regulations, and affirmative marketing requirements.

m. Full Disclosure of Available Housing. Grantees must adopt a process for providing full

disclosure to each applicant for a Section 811 PRA unit of all options available to the applicant

in the selection of the property in which to reside, including basic information about available

sites (e.g., location, number and size of accessible units, access to transportation and commercial

facilities) and an estimate of the period of time the applicant would likely have to wait to be

admitted to units of different sizes and types (e.g., regular or accessible) at each site. Where, as

the result of the unavailability of an accessible unit, an individual with a disability chooses to

reside in a non-accessible unit, grantees are still required to provide reasonable accommodations

to qualified individuals with disabilities, which includes structural modifications to existing

dwelling units and public use and common use areas, in order to make effective use of the

recipient’s program.

n. Program Evaluation. As a condition of the receipt of financial assistance under this NOFA,

all Grantees will be required to cooperate with HUD, Department of Health and Human Services

(HHS), and Centers for Medicare & Medicaid Services (CMS), or any contractors affiliated with

HUD, HHS, and CMS in the evaluation of this program. The authorizing legislation requires

HUD to submit a Report to Congress no later than January 4, 2014 and again two (2) years

thereafter on the implementation and effectiveness of the Section 811 PRA Program. In addition

to ensuring that HUD can respond to this reporting requirement, HUD is also interested in

collecting evidence to demonstrate the extent to which the program meets the expected outcomes

of the program, as listed earlier in the NOFA within Section G.1, Purpose of the Program. HUD

may pursue the option to fund a rigorous independent evaluation of this program, or HUD may

choose to utilize existing administrative data and data submitted by grantees on the quarterly and

annual reports to assess the effectiveness of the program.

o. Effective Communication. Grantees must ensure that all communications are provided in a

manner that is effective for persons with hearing, visual, and other communications-related

disabilities consistent with Section 504 of the Rehabilitation Act of 1973 and, as applicable, the

Americans with Disabilities Act.

p. Davis Bacon Labor Standards. All laborers and mechanics (other than volunteers under the

conditions set out in 24 CFR part 70) employed by contractors and subcontractors in the

construction (including rehabilitation) of housing with 12 or more units assisted under this

NOFA shall be paid wages at rates not less than those prevailing in the locality, as determined by

the Secretary of Labor in accordance with the Davis-Bacon Act (40 U.S.C. 3141 et seq.).

Contracts involving employment of laborers and mechanics shall be subject to the provisions of

the Contract Work Hours and Safety Standards Act (CWHSSA) (40 U.S.C 3701 et seq.).

Owners of Eligible Multifamily Properties and owners’ contractors and subcontractors must

comply with all related rules, regulations, and requirements.

Grantees shall be responsible for ensuring inclusion of appropriate contract provisions,

monitoring to ensure compliance, and correction of violations in accordance with HUD

guidance. Projects where construction is fully complete before an application is submitted to the

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Grantee to receive assistance under the Section 811 PRA are not subject to Davis-Bacon or

CWHSSA requirements, except to the extent that the project is also assisted under another

federal program that is subject to such requirements (e.g., the HOME program). In accordance

with U.S. Department of Labor regulations at 29 CFR 1.6(g), if a project is approved by a

Grantee to receive Section 811 PRA assistance after a contract for construction of the project has

been awarded (or after the beginning of construction where there is no contract award) but before

completion of construction, the state housing agency shall require that the wage determination

effective on the date of award (or beginning of construction) be incorporated into the

construction contract retroactively to the date of award or beginning of construction.

Grantees may request the HUD Office of Labor Relations to seek approval from the U.S.

Department of Labor for the incorporation of a wage determination to be effective on the date of

the state housing agency’s approval of Section 811 PRA assistance for the project. Such

approval may be granted only where there is no evidence of intent to apply for the federal

assistance for the project prior to contract award or start of construction

Note: For projects funded in response to this PRA NOFA, construction is fully complete as

demonstrated by a final invoice and completion inspection approval by the Architect and all

financing inspectors, and the entire project is ready for occupancy. It is acceptable for fully

complete construction to have items of delayed completion subject to escrow of funds to assure

completion of such items.

q. Energy and Water Conservation. Eligible Applicants are required to build to a higher

standard of energy and water conservation by incorporating components of sustainable building

in Section 811 PRA developments, and maintain this standard for the duration of the HUD

assistance. At a minimum, energy efficiency strategies and water conservation appliances and

fixtures must be incorporated in the design, construction, and operation of all new construction

and substantial (gut) rehabilitation projects. For further assistance, Eligible Applicants can

access the report, “Enhancing Energy Efficiency and Green Building Design in Section 202 and

Section 811 Programs”, at

http://www.huduser.org/portal/publications/affhsg/enh_eng_eff_gbd.html. The report was

developed to assist Eligible Applicants in responding to this requirement as well as to inform you

about other green building standards.

1. Energy Efficiency. Owners of new construction and substantial rehabilitation low-rise

(up to 3 stories) Eligible Multifamily Properties must meet the requirements of EPA’s

ENERGY STAR Qualified Homes at the time of Grantee award, unless the Grantee has a

higher standard. Mid-Rise & High Rise developments (4 or more stories) must meet the

requirements of the ENERGY STAR Qualified Multifamily High Rise Buildings at the

time of Grantee award unless the Grantee has a higher standard. Any state energy code

requirements will take precedence over ENERGY STAR specifications when the state

code approximates or exceeds that standard. More information concerning this

requirement can be found at

http://www.energystar.gov/index.cfm?c=bldrs_lenders_raters.pt_bldr or specific

questions can be emailed to energystarhomes@energystar.gov . To learn more about

ENERGY STAR qualified multifamily high rise buildings visit

http://www.energystar.gov/index.cfm?c=bldrs_lenders_raters.nh_multifamily_highrise

or specific questions can be emailed to leopkey.ted@epa.gov .

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2. All new construction and substantial rehabilitation projects must purchase and install

ENERGY STAR-labeled appliances.

3. Water Conservation Fixtures. Installation of water-conserving fixtures is required in all

new and substantially rehabilitated developments (i.e. resource efficient plumbing and

appliances such as low flow showerheads and faucet and high efficiency toilets). The

materials used should be the most current WaterSense or a greater water efficiency

product. More information is available at www.epa.gov/owm/water-efficiency.

r. Housing Standard for Section 811 PRA Assisted Units. All Section 811 PRA units must

meet local and state housing code, ordinances, and zoning requirements and minimum UPCS

standards.

s. Environmental Requirements and Environmental Assurance. Environmental

Requirements and Environmental Assurance. As HUD does not approve program funding

for specific activities or projects of the Eligible Applicants, it will not perform environmental

reviews on such activities or projects. However, to ensure that the tenets of HUD environmental

policy and the requirements of applicable statutes and authorities are met, Eligible Applicants

selected for funding will be required to implement the following analyses and determinations for

specific program activities and projects. The Eligible Applicant’s signature on the application

shall constitute an assurance that the applicant, if selected, will perform such implementation.

The environmental tenets apply to both existing and new projects per the requirements

below. Existing properties that are currently HUD-assisted or HUD-insured and that will

not engage in activities with physical impacts or changes beyond routine maintenance

activities or minimal repairs are not required to comply with the environmental tenets. If,

at the time that a project applies for PRAD assistance, the project is under construction or

being rehabilitated, the project shall be subject to the environmental review requirements

applicable to new construction or rehab if the work has not progressed beyond a stage of

construction where modifications can be undertaken to avoid the adverse environmental

impacts addressed by the requirement.

Citations to authorities in the following paragraphs are for reference only; to the extent

that property standards or restrictions on the use of properties stated in the following

paragraphs are more stringent than provisions of the authorities cited, the requirements

stated in the following paragraphs shall control:

1. Site Contamination (24 CFR 50.3(i)). It is HUD policy that all properties for use

in HUD assisted housing be free of hazardous materials, contamination, toxic

chemicals and gases, and radioactive substances, where a hazard could affect the

health and safety of occupants or conflict with the intended utilization of the property

(24 CFR 50.3(i)(1)). Therefore, projects applying for assistance shall:

a) Assess whether the site (i) is listed on an EPA Superfund National Priorities

or CERCLA list or equivalent State list; (ii) is located within 3,000 feet of a

toxic or solid waste landfill site; (iii) has an underground storage tank other

than a residential fuel tank; or (iv) is known or suspected to be contaminated

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by toxic chemicals or radioactive materials. If none of these conditions exists,

a letter of finding certifying these findings must be submitted and maintained

in the site’s environmental record. If any of these conditions exist, an ASTM

Phase I Environmental Site Assessment (ESA) in accordance with ASTM E

1527-13 (or the most recent edition) must be provided; OR

b) Provide a Phase I ESA in accordance with ASTM E 1527-13 (or the most

recent edition).

Note: An ASTM Phase I ESA that was prepared within the Phase I ESA continuing

viability timeframe for the acquisition of the property or a real estate transaction

(construction, rehabilitation, or refinancing) for the property and complies with

ASTM E1527-05 or a more recent edition will be deemed acceptable.

If a Phase I ESA is conducted and the Phase I ESA identifies RECs, a Phase II ESA

in accordance with ASTM E 1903-11 (or the most recent edition) shall be performed.

Any hazardous substances and/or petroleum products that are identified at levels that

would require clean-up under State policy shall be so cleaned up in accordance with

the State’s clean-up policy. Risk-Based Corrective Actions are permitted if allowed

for under a State’s clean-up policy.

2. Historic Preservation (16 U.S.C. 470 et seq.).

a) As the various States, Territories, Tribes and municipalities have

established historic preservation programs to protect historic properties within

their jurisdiction, all work on properties identified as historic by the State,

Territory, Tribe, or Municipality, as applicable, must comply with all applicable

State, territorial, and tribal historic preservation laws and requirements and, for

projects affecting locally designated historic landmarks or districts, local historic

preservation ordinance and permit conditions.

b) In addition, all work on properties listed on the National Register of Historic Places,

or which the Eligible Applicant knows are eligible for such listing, must comply with

“The Secretary of the Interior’s Standards for Rehabilitation.” Complete demolition

of such properties would not meet the Standards and is prohibited.

c) On site discoveries. If archaeological resources and/or human remains are discovered

on the project site during construction, the recipient must comply with applicable

State, tribal, or territory law, and/or local ordinance (e.g., State unmarked burial law).

3. Noise (24 CFR part 51, Subpart B - Noise Abatement and Control). All activities and

projects involving new construction shall be developed to ensure an interior noise level of 45

decibels (dB) or less. In this regard, and using the day-night average sound level (Ldn), sites

not exceeding 65 dB of environmental noise are deemed to be acceptable; sites above 65 dB

require sound attenuation in the building shell to 45 dB; and sites above 75 dB shall not have

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noise sensitive outdoor uses (e.g. picnic areas, tot lots, balconies or patios) situated in areas

exposed to such noise levels.

4. Airport Clear Zones (24 CFR part 51, Subpart D - Siting of HUD Assisted Projects in

Runway Clear Zones at Civil Airports and Clear Zones and Accident Potential Zones at

Military Airfields). No activities or projects shall be permitted within the “clear zones” or

the “accident potential zones” of military airfields or the “runway protection zones” of

civilian airports.

5. Coastal Zone Management Act (16 U.S.C. 1451 et seq.). Activities and projects shall be

consistent with the appropriate state coastal zone management plan. Plans are available from

the local coastal zone management agency.

6. Floodplains (Executive Order 11988; Flood Disaster Protection Act (42 U.S.C. 4001-

4128)). No new construction activities or projects shall be located in the mapped 500-year

floodplain or in the 100-year floodplain according to FEMA’s best available data, which may

be Advisory Base Flood Elevations (ABFEs), Preliminary Flood Insurance Rate Maps (P-

FIRMs), or Flood Insurance Rate Maps (FIRM). Existing structures may be assisted in these

areas, except for sites located in coastal high hazard areas (V Zones) or regulatory floodways,

but must meet the following requirements:

a) The existing structures must be flood-proofed or must have the lowest habitable

floor and utilities elevated above both the 500-year floodplain and the 100-year

floodplain according to FEMA’s best available data.

b) The project must have an early warning system and evacuation plan that includes

evacuation routing to areas outside of the applicable floodplains.

c) Project structures in the 100-year floodplain must obtain flood insurance under

the National Flood Insurance Program (see Section III.C.3.u. below).

7. Wetlands (Executive Order 11990). No new construction shall be performed in

wetlands. No rehabilitation of existing properties shall be allowed that expands the

footprint such that additional wetlands are destroyed. New construction includes

draining, dredging, channelizing, and filling, diking, impounding, and related grading

activities. The term wetland is intended to be consistent with the definition used by the

U.S. Fish and Wildlife Service in Classification of Wetlands and Deep Water Habitats of

the United States (Cowardin, et al., 1977). This definition includes those wetland areas

separated from their natural supply of water as a result of activities such as the

construction of structural flood protection methods or solid-fill road beds and activities

such as mineral extraction and navigation improvements.

8. Siting of Projects Activities Near Hazardous Operations Handling Conventional

Fuels or Chemicals of an Explosive or Flammable Nature (24 CFR part 51, Subpart C).

Unshielded or unprotected new construction sites shall be allowed only if they meet the

standards of blast overpressure (0.5psi – buildings and outdoor unprotected facilities)

and thermal radiation (450 BTU/ft2 -hr – people, 10,000 BTU/ft

2-hr – buildings) from

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facilities that store, handle, or process substances of explosive or fire prone nature in

stationary, above ground tanks/containers.

9. Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.). New construction shall

not be permitted that would result in a taking of endangered plant or animal species as

listed under the Endangered Species Act of 1973. Taking includes not only direct harm

and killing but also modification of habitat. Maps for listed species and geographic

habitat by state can be found at:

http://ecos.fws.gov/tess_public/StateListing.do?state=all.

10. Farmland Protection (7 USC 4201 et seq.). New construction shall not result in

the conversion of unique, prime, or otherwise productive agricultural properties to

urban uses.

11. Sole Source Aquifers (Section 1424(e) of the Safe Drinking Water Act of 1974

(42 U.S.C. 201, 300 et seq., and 21 U.S.C. 349)). Any new construction activities and

projects located in federally designated sole source aquifer areas (SSAs) shall require

consultation and review with the U.S. Environmental Protection Agency (USEPA).

Information regarding location and geographic coverage of the 73 federally designated

SSAs can be found at:

http://water.epa.gov/infrastructure/drinkingwater/sourcewater/protection/solesourceaq

uifer.cfm.

t.Coastal Barrier Resources Act (Coastal Barrier Resources Act (CBRA) of 1982 (16 U.S.C.

3501)). Eligible Applicants must adhere to the Coastal Barrier Resources Act which prohibits

activities or projects in Coastal Barrier Resource System (CBRS) units. CBRS units are mapped

and available from the Fish and Wildlife Service at: http://www.fws.gov/CBRA/.

u.Flood Insurance (Flood Disaster Protection Act of 1973 (42 U.S.C. 4106)). Project structures

in the 100-year floodplain must obtain flood insurance under the National Flood Insurance

Program. No activities or projects located within the 100-year floodplain may be assisted in a

community that is not participating in or has been suspended from the National Flood Insurance

Program.

v.Lead-Based Paint. The Lead Safe Housing Rule (specifically 24 CFR 35, subparts B, H and

R; see

http://portal.hud.gov/hudportal/HUD?src=/program_offices/healthy_homes/enforcement/lshrappl

ies to project based rental assistance of pre-1978 housing for persons with disabilities when a

child of less than 6 years of age resides or is expected to reside in such housing. For Eligible

Multifamily Properties in which such units will receive an annual average of more than $5,000

of project-based rental assistance in any year, a lead risk assessment, followed by interim

controls of any lead-based paint hazards identified must be conducted, and a reevaluation must

be conducted every two years during the assistance period. For properties in which such

assistance is less than or equal to $5,000, a visual assessment for deteriorated paint must be

conducted during the initial and periodic inspections, followed by paint stabilization of any

deteriorated paint identified. The Environmental Protection Agency’s Renovation, Repair and

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Painting (RRP) Rule also applies to such target housing when renovation, repair or painting work

is conducted; among other requirements, the work, using lead-safe work practices, must be a

conducted or supervised by certified lead renovator working for a certified lead renovation firm

when the amount of work exceeds the RRP Rule’s minor repair and maintenance area threshold.

See 40 CFR 745, and the RRP Rule’s website, http://www.epa.gov/lead/pubs/renovation.htm).

w. Program Income. Eligible Applicant must have sufficient knowledge and experience to

identify and account for program income as defined in 24 CFR part 85. Each application must

contain a specific section stating how the applicant will address program income accounting and

reporting requirements. All program income including interest earned on any award supported

activity (if it generates program income it has to be accounted for whether it is paid to a Grantee

or is used for a program purpose without passing back to the Grantee) is subject to the terms and

conditions of the original grant and such U.S. Treasury rules as may apply. More specifically

each Grantee must document receipt of program income, both principal and interest, and how the

funds were used. These documentation and reporting requirements (detailed later in this NOFA)

will be included in the final Implementation Plan and contained in the Cooperative Agreement.

x. Procurement of Recovered Materials. Requirements for the procurement of recovered

materials apply to this program as described in the General Section in Section III.C.5.k.

y. Period of Performance. The period of performance shall begin with the execution date of the

Cooperative Agreement and terminate on the expiration date of the Grantee’s very last Rental

Assistance Contract (RAC), but not less than 20 years.

z. Uniform Physical Construction Standards (UPSC). Multifamily owners shall comply

with the Physical Condition Standards and Inspection Requirements of 24 CFR part 5, Subpart

G, including any changes in the regulation and related Directives. In addition, the Owner shall

comply with HUD’s Physical Condition Standards of Multifamily Properties of 24 CFR part 200,

Subpart P, including any changes in the regulation and related Directives.

aa. HUD's Electronic Line of Credit Control System. Eligible Applicants must be eligible to

acquire rights and access under HUD's Electronic Line of Credit Control System (eLOCCS) or

other database system approved by HUD. This is the sole mechanism for drawing funds.

ab. Uniform Administrative Requirements. All States, Territories, Urban Counties, and

Metropolitan cities receiving funds under this NOFA shall be subject to the requirements of 24 CFR

part 85. Non-profit subgrantees shall be subject to the requirements of 24 CFR part 84.

IV. APPLICATION AND SUBMISSION INFORMATION

A. Address to Request an Application Package. See the General Section for specific

procedures concerning the electronic application submission and timely receipt requirements.

Copies of the published NOFAs and application forms for HUD programs announced through

NOFAs may be downloaded from the grants.gov website at http://www.grants.gov. Eligible

Applicants must download the application and the instructions for this NOFA on Grants.gov.

23

Information to assist Eligible Applicants in preparing their application on the average tenant rent

payment by state for the Section 811 PRACs is available on HUD’s website (see Appendix B).

For recent guidance on HUD’s Operating Cost Adjustment Factor (OCAF) calculation, please see

http://www.gpo.gov/fdsys/pkg/FR-2011-10-26/pdf/2011-27816.pdf.

B. Grants.gov Customer Support. If there is difficulty accessing the information, customer

support is available from Grants.gov by calling its Support Desk at 800-518-GRANTS (toll-

free), or by sending an email to support@grants.gov. Grants.gov now also provides a toll

number for those that have difficulty accessing a toll-free number. The number is 606-545-5035

(toll charge). The Grants.gov help desk is open 7 days a week, 24 hours a day, except federal

holidays.

C. Content and Form of Application Submission

1. Electronic Submission. Applications must be submitted electronically, as prescribed in the

General Section using the Grants.gov website. To submit via Grants.gov, applicants must have a

DUNS number which is registered in the Central Contractor Registration at www.sam.gov; have

a USER ID and password for the grants.gov system which has been authorized by the eBusiness

Point of Contact for the applicant identified in box 8a of the SF424, to be the authorized agency

representative to submit the application. Failure to meet these registration steps or to not

properly enter the registered DUNS number and User ID and password associated to the

applicant DUNS number in the Grants.gov system, can result in the application being rejected by

Grants.gov. Please carefully read the registration requirements. Registration can take 2-4

weeks to complete.

2. Page Limitation, Font Size, and Format for Naming of Files. Narrative statements cannot

exceed the equivalent of 40 single- space single-sided standard 8-1/2” x 11” pages, not including

attachments. Attachments cannot exceed the equivalent of 60 single-sided pages in total.

Applications must be in 12 point font and attachments presented by facsimile must be legible.

File names should clearly indicate which application item the file contains as described in the

General Section, paying careful attention to ensuring there are no spaces and special charters in

the file name and that the file name does not exceed the maximum length of 50 characters. HUD

recommends a length of no more than 32 characters.

3. Application Submission Requirements.

(1) Eligible Applicants must read and follow the application submission requirements

carefully.

(2) Applications must be filed following the instructions for this opportunity as they appear

on the grants.gov website.

(3) Applications must be formatted for 8.5" by 11" viewing and printing.

(4) Attachments must follow the proper naming convention: 50 characters or less, no spaces,

no special characters (example: -, &, *, %, /, #, \) including periods (.), blank spaces and accent

marks. Special characters may NOT be used within the application form fields or file names.

Underscores can be used in place of spaces.

(5) All pages of each document must be numbered sequentially.

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(6) All documents must be presented in "native" format, not "pdf", unless required to

preserve the integrity of a document as executed by a third party.

(7) Zip files contained within zip files cannot be accommodated; documents in such files will

not be reviewed. See the General Section for additional information.

4. Application Requirements. The application must contain the following:

a. Part I. Abstract. Applications must contain an Abstract consisting of up to 3-5 pages, a

summary of the proposed program, which will not be scored and does not count toward the

narrative page limit. Outlined in this format below, the summary must include:

(1) Name of the Eligible Applicant

(2) Mailing Address

(3) City, State and Zip code

(4) Eligible Applicant Director or CEO

(5) Primary Contact Name and Title

(6) Contact Telephone Number and Email Address

(7) Name, title and contact information of the State Health and Human Service Agency and

the name, title, and contact information for the State Medicaid Agency identified in the

Partnership Agreement

(8) Number of units to be funded with the PRA funds.

(9) The amount of the administrative costs (which is up to eight (8) percent of the grant)

requested

(10) Total dollars of Section 811 PRA funds requested by the applicant, including the

amount of the administrative fee

(10) Summary of description of Section 811 PRA program including applicant and the State

Health and Human Service/Medicaid agencies partnership

(11) Description of the Eligible Applicant’s program(s) that will be used to award Section

811 PRA funds.

NOTE: Co-Applicants, if any, must also provide information as identified in (1) to (6) above.

b. Part II. Inter-Agency Partnership Agreement. The formalized agreement between the

Eligible Applicant and State Health and Human Services/Medicaid agencies is called the Inter-

Agency Partnership Agreement as described in III.C.2.b.

c. Part III. Narrative Response to Factors for Award. The total narrative response cannot

exceed the equivalent of 40 single-sided standard 8-1/2 x 11” pages total in 12 point font, not

including attachments. Submitting pages in excess of the page limit will not disqualify an

application. However, HUD will not consider or review the information on any excess pages,

and if there is key information on those pages, the application may fail to meet a threshold

requirement.

d. Part IV. General Applications Requirements and Certifications. A list of supporting

documents and forms in the following order found in the instruction download.

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(1) SF424_Application_for_Federal_Assistance. Eligible Applicants must include the nine

digit ZIP code (ZIP code plus four digits) associated with the applicant address in box 8d of

the SF424. Also, be sure to provide a program name in Line 11 of the SF424 and use the

same project name in all references to the application as the information will pre-populate the

other forms contained in the application download package.

(2) SFLLL_Disclosure_of_Lobbying_Activities. Applicants must submit the SFLLL. If an

Applicant does not perform lobbying activities using federal funds, insert “Not Applicable” in

Line Item 10. Note that federally recognized Indian tribes are not required to submit this

form (see the General Section).

(3) HUD2880_Applicant_Recipient_Disclosure_Update_Report titled “HUD Applicant

Recipient Disclosure Report” on Grants.gov.

(4) HUD-92239-PRA Budget is a HUD form budget template, and includes budget lines that are

allowable items under this Program. This budget includes the projected per unit use of PRA

funds for the period of this initial funding which is for five years. Applicants should use

separate sheets for each of the proposed program years along with a summary sheet. If

applicants are projecting properties with PRA Demo units with occupancy commencing in

Year 2, for example, annual budget sheets should be included for Years 2-6.

(5) HUD2993_Acknowledgment_of_Application_Receipt, for applicants submitting paper

applications only (see Section IV.C. below)

(6) HUD96011_Facsimile_Trasnsmittal (“Facsimile Transmittal Form” on Grants.gov). The

form must be submitted with your application and it will be also used as the coversheet for

subsequent facsimile(s) sent for your application. If you are not faxing any documents at the

time of application submission, you must still complete the facsimile transmittal form. In the

section of the form titled “Name of Document Transmitting,” enter the words “Nothing

Faxed with this Application.” Complete the remaining highlighted fields and enter the

number “1” in the section of the form titled “How many pages (including cover) are being

faxed?” You must move the form to the right side of the Grants.gov application to open and

complete the form. Forms on the right side of the application get uploaded as part of your

application submission with the forms getting embedded ID numbers. The embedded ID

numbers allow HUD to match your faxes to your application submission. Please refer to the

General Section for a detailed discussion. NOTE: HUD will not accept entire

applications submitted by fax. If you submit the application entirely by fax, it will be

disqualified. Please carefully read General Section (See General Section IV.B. instructions

on faxing documents.

e. Part V. Attachments (including Supporting Documents, Commitments Letters, and

Letters of Intent.

5. Outline of Application Content. An outline of the application content can be found in

Appendix A which can also be used as a checklist of the submission requirements for a complete

application.

26

6. Timely Receipt Requirements. The application deadline is 11:59:59 p.m. eastern time on

May 5, 2014. Applications must be received by Grants.gov no later than 11:59:59 p.m. eastern

time on the application deadline date. Following receipt the application will go through a

validation process. If the application fails the Grants.gov validation process, it will be rejected

by the Grants.gov system. Please see the FY 2013 General Section for instructions on timely

receipt, including actions to take if the application is rejected. Eligible Applicants should

carefully read the section titled “INSTRUCTIONS ON HOW TO DOWNLOAD AN

APPLICATION PACKAGE AND APPLICATION INSTRUCTIONS” in the General Section.

The section contains information on using Adobe Reader, HUD’s timely receipt requirements

and grace period policy, and other pertinent information.

From time to time HUD may issue a technical correction to its NOFAs. To ensure that

applicants receive notification of any technical corrections to this NOFA, applicants are advised

to sign up for the email notification service when they download the application and instructions

for this NOFA from Grants.gov, so that if HUD modifies this NOFA, they will be notified of any

changes posted to Grants.gov.

7. Funding Restrictions. Administrative costs are limited to no more than eight (8) percent of

the annual Section 811 PRA award.

8. Intergovernmental Review. Not applicable to this program.

9. Other Submission Requirements. None.

10. Waiver of Electronic Application Requirement. Eligible Applicants must follow the

electronic application instructions included in the General Section, unless granted a waiver for

cause to the required electronic application requirement. The request for a waiver must provide a

justification for cause in accordance with HUD’s waiver policy of 24 CFR 5.1005. Eligible

Applicants requesting a waiver must submit the request in writing no later than 15 days prior to

the application deadline date. The letter must be addressed to Carol J. Galante, Assistant

Secretary for Housing, Federal Housing Commissioner at the address below. The waiver can be

submitted via email:

Department of Housing and Urban Development

451 Seventh Street SW, Room 6230

Washington, DC 20410

ATTN: Aretha M. Williams, Housing Assistance and Grant

Administration,

Multifamily Housing Division

PRADemowaivers@hud.gov

Paper applications will not be accepted from applicants that have not been granted a waiver. If

an applicant is granted a waiver, the approval notice will provide instructions for application

submission and receipt requirements. All applications in paper format must have received a

waiver to the electronic application requirement and must be received no later than 3:59:59 p.m.

27

eastern time on the application deadline date to allow scanning of any packages in accordance

with HUD Security procedures.

V. APPLICATION REVIEW INFORMATION

A. Rating Points. Points are assigned to each of five factors identified below. Eligible

Applicants should review the factors carefully and respond specifically to each factor. Since

project locations are not identified prior to award, bonus points under the EZ/EC/RC-II or the

Preferred Sustainable Status Bonus Points are not included in this NOFA.

B. Rating Criteria. The maximum number of points to be awarded for the Section 811 PRA

program is 100.

1. Rating Factor 1: Applicant’s and State Health and Human Service/Medicaid Agencies’

Relevant Experience, Capacity, and Readiness (up to 23 total points). The applicant and the

State Health and Human Services/Medicaid Agency must each demonstrate its ability, capacity,

and readiness to undertake the proposed activities, use its award successfully, and maintain

compliance with its grant terms. The Eligible Applicant must submit a detailed Capability

Statement that describes the Eligible Applicant’s, Co-applicant’s, and/or contractor’s experience.

a. Applicant’s Relevant Experience, Capacity, Readiness (up to 13 points).

(1) Leadership and Key Staff Experience (up to 2 points). Describe the Eligible Applicant

and any other housing agencies participating in this program. Outline the specific tasks that each

will undertake and be responsible for managing. Identify and describe the Eligible Applicant’s

leadership team integral to implementation of the program Describe the roles and

responsibilities of other key staff responsible for this program. Include appropriate staffing

including a specific description of how many Full Time Equivalents (FTEs) staff from which

agencies will be tasked with operationalizing this program.

(2) General Experience (up to 6 points). Eligible Applicants should demonstrate recent

(within five years) and relevant experience directly related to the financing of affordable rental

multifamily housing and asset management of a portfolio of affordable multifamily housing

units, particularly experience funding permanent supportive housing. The principal tasks that the

Applicant must address include, but are not limited to: reviewing applications for funding,

underwriting and awarding Section 811 PRA funds, negotiating and executing RACs, assuring

project monitoring and compliance with all of the PRA program requirements including

monitoring project owners for compliance in providing decent, safe and sanitary housing to

assisted PRA residents. If the Lead Applicant is partnering with another housing agency as a

co-applicant, a joint letter, agreement or MOU must be included. As applicable, the Eligible

Applicant may also describe the experience of one or more entities with whom the applicant has

partnered or contracted, or proposes to contract with to provide services as required under this

NOFA. Experience information for this entity relative to the role it will play in the effort should

also be included.

28

There are significant Section 811 PRA and HUD program requirements outlined in

Section III.C.3, such as Davis Bacon Labor Standards, Lead-Based Paint, Environmental

Requirements, for example. Describe experience in managing programs with a portfolio of

projects with similar program requirements. Outline how the Eligible Applicant currently

monitors for program compliance during construction and operation. Describe the Eligible

Applicants’ and Co-Applicants’ capacity and readiness to successfully implement proposed

activities including necessary financial resources, technical expertise, reporting systems and

other experience associated with proposed activities. To receive maximum points, Eligible

Applicants must demonstrate substantial experience overseeing a permanent housing program

that targets vulnerable populations who will best benefit from affordable housing with

community-based long term services and supports.

In the case of Eligible Applicants and partnering agencies that have received awards from

other federal programs, HUD reserves the right to contact officials from the appropriate federal

agency or other agencies to determine whether the applicant is in compliance with current or

prior award agreements, and to take such information into consideration in rating this factor.

In this narrative, provide a brief description of each of the affordable multifamily rental housing

program(s) that the Eligible Applicant is responsible for managing including the number of

projects awarded over the last three years, total amount and type of subsidy funding or financing

provided, number of units in the project, number of units assisted (if different from total units in

project). Specify the supportive housing programs included or identify the number of supportive

housing units funded. In Section V. Attachments (Programs Managed) Provide a list projects (1)

awarded funding along with the amount of funding and number of units, and (2) closed over the

last three years as an attachment in Section V. Attachments ( of your application.

(3). Experience Managing Section 8 Project-based Rental Assistance programs utilizing

HUD’s Tenant Rental Assistance Certification System (TRACS) (up to 5 points). This

section must include a detailed description of the Eligible Applicant’s and/or Co-Applicant’s

experience administering HUD Multifamily project-based Section 8 programs. Grantees will be

required to ensure that tenant data is entered into HUD’s Tenant Rental Assistance Certification

System (TRACS) in the administration of the Section 811 PRA program. Experience must

include examples of managing a portfolio of affordable multifamily housing units that

specifically includes a HUD Multifamily project-based Section 8 program. This experience can

include serving as a Traditional Contract Administrator (TCA), or as a Performance-Based

Contract Administrator (PBCA), or a third party contractor with extensive experience managing

project-based Section 8 programs. If TCA or PBCA experience is included, dates of experience

and whether the experience is current must be included to earn points. The Eligible Applicant

must describe actual experience performing tasks relating to the administration of a project-based

Section 8 program utilizing TRACS. Eligible Applicants who lack TRACS experience must

state in the application that they agree to contract with another entity such as a Performance-

based Contract Administrator, Traditional Contract Administrator or a private entity that has

such experience. This section must identify the entity if it is not the Eligible Applicant and

outline the experience described above. A letter of intent or MOU must be included. Eligible

Applicants may substitute PBCAs or other contractor at a later date after award with HUD

approval.

29

(4) Past Noncompliance (up to -5 points). If Eligible Applicants have previously received

funding through any HUD program, HUD will consider and may deduct points for an

applicant (or its affiliates) that has a documented history of non-compliance with: 1)

maintaining sufficient financial resources (up to -3 points); and/or 2) inadequate reporting

systems or ongoing failure to report timely (up to -2 points) as measured by the terms of that

program funding. HUD will also take into account additional criteria in evaluating an

applicant’s past performance as outlined in the General Section V.e and III.A above.

b). State Health and Human Service/Medicaid Agencies’ Relevant Experience and

Capacity (up to 10 points)

(1) General Experience (up to 5 points). The State Health and Human Services/Medicaid

agencies that are parties to this grant application will also need to include its management staff

and key staff responsible for their program administration in this partnership. Describe the State

Health and Human Service/Medicaid agencies’ capacity to successfully implement proposed

activities including necessary financial resources, technical expertise, reporting systems and

other experience associated with proposed activities. The state should demonstrate its

experience providing long-term services and supports network to vulnerable populations living

in or transitioning to the community. Eligible Applicants must demonstrate that they have a

sufficient home and community based services infrastructure including the capacity to conduct

person-centered needs assessments, providing adequate services and supports, and conduct

program monitoring. Evidence may include descriptions of long-term services and supports

programs under the CMS Money Follows the Person (MFP) Rebalancing Demonstration

Program, Medicaid State Plan, 1915(c) or 1915(i) waiver programs or programs specifically

designed to divert or delay individuals from entering institutions.

(2) Experience with Supportive Housing and working with housing providers (up to 5

points). The state health and human services/Medicaid agencies should demonstrate experience

transitioning individuals from institutions or from homelessness into affordable housing in the

community with access to supportive services. This description should include a discussion of

how the state health and human service/Medicaid agencies have worked with state housing

agencies or other affordable housing programs. Evidence may include experience with the CMS

MFP Rebalancing Demonstration or other similar efforts to integrate affordable housing with

community-based long term supports and services. Include a discussion on the role of the

housing providers.

2. Rating Factor 2: Need/Using housing as a platform for improving of life (Policy Priority)

(up to 5 points). Describe and document how this funding will address a specific need for

housing for extremely low-income persons with disabilities who are eligible for services from

Medicaid or another similar program in the Eligible Applicant’s state. In addition to statistical

data to quantify the need related to the target population(s), describe how this funding will

address a specific issue or issues or fill a gap in a state’s existing continuum of services for

persons with disabilities, such as a particular program issue that the state has been attempting to

solve beyond its basic need for affordable housing for persons with disabilities. For example,

this funding may assist a state seeking to transition persons from institutional care into integrated

housing or working to ensure that persons at risk of institutionalization remain in community-

30

based settings in accordance with the Supreme Court’s Olmstead v. L.C. decision. Programs

designed in response to Olmstead-related litigation or enforcement, e.g., settlement agreement,

court order, or consent decree, or designed to complement a State’s voluntary affirmative

Olmstead planning and implementation efforts that are clearly outlined, with implementation

underway evidenced by significant progress such as financial commitments or new governance

structures or numbers of persons with disabilities transitioned into the community will earn

maximum points. Points will be provided based on how the state has been directing resources or

partnership efforts to address a particular goal relative to the need for this type of subsidy or how

this specific gap financing will enable the state to accomplish a specific program initiative or

Olmstead-related objective. Eligible Applicants should describe what structural changes are

being made in the way the health & human service/Medicaid agency partners connect with

housing resources. For example, what changes are being made within the states service delivery

system that will be supported by the award of these PRA funds and how will that assist the state

in meeting Olmstead related obligations. Additional documentation can be provided in the

attachments.

3. Rating Factor 3. Soundness of Approach/Implementation Plan (up to 45 total points).

This factor focuses on the Eligible Applicant’s PRA program design and operation, management

and oversight, the integration of services provided by the State Health and Human

Service/Medicaid Agency or agencies and the timely implementation of the state’s program.

HUD is seeking high quality and effective programs. The applicant must demonstrate how its

PRA program will work to stimulate, support, and advance the availability of integrated housing

for persons with disabilities in a timely manner. Eligible Applicants should briefly discuss these

in the context of existing state analysis of Impediments as a component of the States

Consolidated Plan, Transportation plans, and any other existing state or regional development

plans and how determinations will be made in relation to those plans.

Working in partnership with the State Health and Human Services/Medicaid agency, the

applicant should include the specific financing and development programs that will be included

in the program, the number of units that will be provided, and the amount of the HUD Section

811 PRA funds requested.

a. The Implementation Plan – Program Description (up to 20 points of the total 45 points).

Applicants should submit a plan that outlines and describes the proposed state PRA program.

The Implementation Plan shall be based upon and specifically reference the formal agreement

between the Eligible Applicant and the State Health and Human Service Agency/Medicaid

agency described in Section III.C.3.b.2 (ii). It should incorporate and expand upon the specific

elements of the agreement including a detailed description of the target populations and method

of outreach and referral and the agreement must incorporate the commitment to the specific roles

and responsibilities.

HUD seeks well-defined, high quality and sound programs and will consider the extent to which

the Eligible Applicant thoroughly describes their program plan. The Eligible Applicant will earn

fewer points for failure to address all of the criteria below. The specific details of the PRA

Implementation Plan for your state program must include the following as a part of the plan:

31

(1) PRA Program Funding Structure (up to 7 points). Specify what development and/or

financing program(s) will be used to create and/or develop PRA units (State Housing Trust

funds, 4% and 9% LIHTC, tax-exempt financing, etc.). Include a detailed description of the

program(s) identified including program requirements and procedures used for awarding

funding. Eligible Applicants should demonstrate that key State housing policies, particularly the

Low Income Housing Tax Credit Qualified Allocation Plan and Consolidated Plan, but also local

jurisdictions’ capital financing strategies (e.g. localities with HOME, CDBG and other capital

funds etc.), and local Continuum of Care planning, 10 Year Plans, etc., reflect a commitment to

support the program proposed in the PRA application. Eligible Applicants that evidence the

existence of set-asides, incentives or significant competitive priorities in their primary housing

production programs that result in the integration of PRA units in multifamily projects, such as

the Low-Income Housing Tax Credit Qualified Allocation Plan (QAP), or have similar

program(s) designed to integrate supportive housing units in newly developed and substantially

rehabilitated multifamily projects and can commit to include this PRA program will receive

more points in this section. Eligible Applicants with no existing programs but include a strong

commitment to implement set-asides, incentives or other significant competitive priorities for

this PRA program may also be considered for more points. In Section V. Attachments (Program

Funding) of the application, include a list of multifamily rental housing properties approved and

closed in the last two (2) years in these programs with the number of total units, affordable

housing units, and permanent supportive housing units.

(2) Type and Quality of Projects (up to 3 points). Grantee’s State PRA programs can include

a range of properties including new construction, substantially rehabilitated, and existing

properties. Specify what range/type of properties will be included and how the applicant will

ensure that each will be high quality and well-managed properties.

(3) Project Selection Criteria (up to 5 points). Provide the project selection criteria that will

be used for this program and how it will be implemented. Eligible Applicants are not required to

identify specific projects for which PRA funds will be allocated, but must provide sufficient

justification for how projects will be selected including any special qualifications or program

requirements. If the Eligible Applicants will include existing properties, HUD is particularly

interested in the criteria that grantees will use to select existing properties. Programs that solely

fund projects where the Eligible Applicant has existing oversight or funding will receive 3 of the

5 points. Describe how owners and developers will be informed of this availability of funding

and how the Eligible Applicants state program will be structured to ensure participation.

(4) Calculation of PRA funds (up to 3 points). Specify how PRA funds requested were

calculated including assumptions used in the calculation. The projected number and type of

PRA units must be provided on a per year basis. Eligible Applicants must identify what will be

used for establishing initial rents as well as annual rent adjustments and any other assumptions

used in projecting the amount of PRA funds required. In no circumstance may the initial RAC

rent level exceed the applicable Section 8 Fair Market Rent, unless such rent level is

substantiated by a market study that has been prepared in accordance with the requirements of a

state housing agency or of Chapter 9 of HUD’s Section 8 Renewal Guide

(see http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh/mfhsec8) as

approved by HUD – see Section III.C.3 Program Requirements. Rents can only be adjusted

32

annually based upon 1) HUD’s Operating Cost Adjustment Factor (OCAF), or 2) other operating

cost index proposed by the applicant and approved by HUD. Since this award includes funding

for the first five years, applicants should carefully prepare this budget. Eligible Applicants

should use one of the following data sets to determine the expected average tenant payment: a)

the average tenant payment in the Section 811 PRAC program, available as Appendix B, or b)

the average state median income also available on HUD’s website at

http://www.huduser.org/portal/datasets/il/il12/IncomeLimitsBriefingMaterial_FY12_v2.pdf.

Average tenant payment in the Section 811 PRA program should have very similar if not the

same tenant income characteristics as tenants in the 811 PRA program. In addition to the budget

above, applicants can propose to use a different average tenant payment and include a second

budget, however, a justification with appropriate documentation must be included, and HUD will

determine which budget is acceptable. Eligible Applicants must identify what funds will be

available if costs exceed federal PRA funding.

(5) Program Administrative Costs (up to 2 points). In addition to the detailed budget

provided, provide a narrative with appropriate justification for the use of grant funded

administrative costs requested for this 5 year funding period. Also include the authority and/or

sources for paying for these costs over and above the percentage requested from the PRA funds.

b. Integration of Services (up to 20 points of 45 points).

(1) Management and Coordination of Services (up to 10 points). This must include a

description of the supportive services, the entity or agency responsible for the overall integration

effort, how the services will be provided and how tenants will access those services, whether

new or existing programs, and demonstrate Eligible Applicant’s understanding that participation

in these services are voluntary.

Description of how ongoing housing program management and management of services will be

handled between agencies and the strategy for feedback and continuous improvement of the

Program during its operation; provide specifics regarding operational details relative to the

commitment of services. Describe how the housing staff will interact with the service providers.

HUD is interested in understanding how services will be coordinated throughout the state.

Describe what staff and agency that will be managing the outreach, referrals, and waiting lists to

successfully identify and refer prospective tenants to owners/management agents of these

supportive housing units in a timely and efficient manner, particularly if the state program

includes several targeted populations. Identify how staff will be assigned to efficiently work

with owners/management agents of PRA units throughout the state and how they will be

managed. Specify how dispute resolution between residents and owners/management agents will

be managed, tracked, and reported, particularly how a range of program/service needs will be

addressed within one multifamily property.

(2) Systems in Place (up to 10 points). Describe the information technology systems and

associated staffing structures that you currently have in place or will be putting in place to track,

monitor, and oversee the implementation of this program. Specifically, how will you: (1) assign

33

the entities responsible for outreach to the various Target Populations/sub-populations; (2)

manage waiting lists; (3) communicate with owners/property managers of PRA Demo units; (4)

track the referral process (e.g. how many applicants are actually referred to one available PRA

Demo unit, and how are they sequenced and tracked); and (5) synchronize the referral process

with a unit-tracking system identifying available new and/or turnover units in each locality with

PRA Demo units. If available, please describe the software system you are using and provide

representative screen shots. Describe how performance measures for each program component

will be tracked. Describe the staff and/or contract support that is expected to develop the IT

infrastructure if such does not exist at this time.

c. Program Implementation Schedule (up to 5 points of 45 points). HUD is seeking

programs that create a system of developing and integrating 811 PRA units in the multifamily

production, development or finance program. HUD also seeks to fund programs that will be able

to commence immediately after grant award and proceed in a timely manner. HUD will evaluate

applications on this rating factor based on a clear identification of all of the milestones that need

to be accomplished to develop this program based upon the Implementation Plan submitted,

along with the projected time to award PRA funding to projects, execute PRA contracts and

occupy units. Include a schedule that outlines the occupancy goals annually based upon fiscal

year. Describe the methodology used to determine unit occupancy goals in the schedule. The

schedule should project the number of units to be funded per quarter and per year. Fiscal years

should be used. Specify the number of units to be funded per year over the 5-year funding

period for this grant. Consistent with the detailed PRA budget described above, if units are

occupied in Year 2 of the program, the Implementation Schedule will extend to Year 6 to allow

for the full 5 years of funding per unit in the program. This schedule will be incorporated into

the Agreement with HUD.

Points will be assigned based upon the specificity of the schedule as outlined above and the

percentage of the total number of requested units occupied in the 48 months from the execution

of the Cooperative Grant Agreements.

Units Projected to be Occupied

Within 48 Months Points

100% of Units Occupied 5 Points

80% of Units Occupied Up to 4 points

60% of Units Occupied Up to 3 points

Note: Programs funds not utilized as outlined in the Implementation Plan and Schedule may be

subject to recapture or deobligation as described in 24 CFR part 85.43.

4. Rating Factor 4: Leveraging (up to 20 total points).

a. Cost-Effective Use of PRA Funds (up to 10 points).

34

HUD is seeking approaches to reduce the per-unit PRA amount in order to increase the number

of PRA assisted units. As described in III.C.3, Program Requirements, Eligible Tenant’s

contribution to rent shall be 30% of annual income, and unit rents cannot exceed HUD’s Fair

Market Rents (FMR) unless such rent level is substantiated by a market study as described in

section III.C.3.h above. Eligible Applicants will earn points based on representations that initial

rents on PRA assisted units will be established for the program based upon a rent structure that

reduces the actual per unit amount of subsidy. Specify how rents will be restricted, whether due

to other program requirements such as LIHTC, HOME or as a consequence of use agreements or

other regulatory restrictions placed on properties as a consequence of receiving PRA funds.

Points will be earned based upon a representation that rents in the PRA program will be set at

levels equivalent to a specific percentage of Area Median Income (AMI). If applicants proposed

a mix of percentages, as follows:

Table 1

Rents set at levels affordable to households at 50% of AMI 6 points

Rents set at levels affordable to households at 45%-49% of AMI 7 points

Rents set at levels affordable to households at 40%-44% of AMI 8 points

Rents set at levels affordable to households at 35%-39% of AMI 9 points

Rents set at levels affordable to households at 30%-34% of AMI 10 points

If an applicant’s proposed rent structure is a mix of AMI percentages, the points earned will be a

prorated average.

For example:

An Applicant’s Rent Limits for 2013 are:

50% of

AMI

40% of

AMI

30% of

AMI

1BR $1,006 $805 $604

The Applicant’s proposed PRA rent structure is:

1. 20% of the units will have a rent of 30% AMI ($604-1BR rent based on Table 2 above)

2. 80% of the units will have a rent of 40% AMI ($805-1BR rent based on Table 2 above)

Based on the point structure in Table 1, the points earned will be calculated by a prorated

average of the combined mixed percentages:

35

TABLE 3

Rent Structure Calculation Point

Value

40% of the units will have a rent of 30%

AMI

10 points (using 30% AMI) x 40% of

units

4

60% of the units will have a rent of 40%

AMI

8 points (using 40% AMI) x 60% of

units

4.8

TOTAL POINTS EARNED: 8.9 or 9

b. Commitments for Establishment of an Admission Preference (up to 10 points).

Eligible Applicants that provide a commitment from one or more public housing agencies

(PHAs) or other state or local housing agencies to establish an admission preference for a

minimum number of housing vouchers or other rental units specifically for the population

proposed to be targeted under this application will be assigned additional points based on the

following sliding scale:

(1) Eligible Applicants that provide commitments to establish a preference for vouchers or rental

units will be assigned up to 10 points for committing vouchers in an amount up to 50% of the

PRA units requested with one point for providing vouchers in an amount equivalent to 5% of

units and two points for providing vouchers in an amount equivalent to 10% of units, and so

on up to 10 points.

NOTE: For Public Housing Agencies, the commitment cannot include Housing Choice

Vouchers already reserved for non-elderly people with disabilities as part of a PHA’s Non-

elderly Disabled (NED) voucher baseline.

For a list of PHAs with NED vouchers and their NED baselines, please visit HUD’s NED

Voucher webpage at

http://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/programs

/hcv/ned. PHAs can establish an admission preference in their HCV or Public Housing

persons ready to transition from institutions, or for persons at serious risk of

institutionalization. The preference may be limited to a set number of vouchers or units or a

percentage of vouchers or units as they become available. Prior to implementing such

preferences, PHAs must incorporate such a preference in written policies for their HCV

and/or Public Housing programs and may open waiting lists strictly to people to whom the

preference applies.

PHAs can restrict the preference to those referred or approved by a single state agency or to

persons with specific disabilities or diagnoses if it is:

36

(1) a HUD approved remedial action such those put in place by states in response to

Olmstead-related litigation or enforcement actions, including a settlement agreement,

court order or consent decree; or

(2) in response to a public entity’s documented, affirmative Olmstead planning and

implementation efforts.

For purposes of the Section 811 PRA NOFA, approval will be provided as part of the grant

award and subsequent execution of a cooperative agreement. Where PHAs voluntarily agree to

have its preference restricted to persons with specific disabilities or diagnosis limited solely for

the purpose of this Section 811 PRA NOFA, the Office of Public and Indian Housing hereby

waives 24 C.F.R § 982.207(b)(3) for the HCV program, and waives 960.206(b)(3) for the public

housing program, so as to allow select PHAs participating in the 811 PRA NOFA to support the

purpose, goals and statutory intent of this program.

If a PHA, in connection with the eligible applicant’s PRA application under this NOFA, is

proposing to establish an admission preference for persons with specific disabilities or diagnoses,

the following information must be included for HUD’s approval: information on Olmstead

activities in the state, the ratio or number of vouchers subject to the preference, and a time limit

for the preference consistent with the need identified in the 811 PRA application (Rating Factor

2), e.g., a timeframe that aligns with the time period of the relevant consent decree.

Upon HUD’s selection of Eligible Applicants for the Section 811 PRA NOFA, HUD shall advise

these participating PHAs of HUD’s approval of the regulatory waiver(s) by PIH and approval by

the Associate General Counsel for Fair Housing. HUD reserves the right to request clarification

from the PHA on its proposed PHA preference as it relates to this NOFA.

5. Rating Factor 5: Achieving Results, Program Innovation and Evaluation (up to 7

points)

a. Systems Change (up to 5 points). Describe and document the extent to which the system of

producing housing and services for the target population is institutionalized beyond the Section

811 PRA program. For example, Eligible Applicants may describe creative approaches to using

operating subsidy other than the traditional HUD Section 811. Creative approaches may include

requiring set-asides in LIHTC Qualified Allocation Plans (QAP) or other rental housing finance

and development programs or creating other new innovative elements to systematically increase

the production of affordable supportive housing aligned with the PRA program goals of

integrating units into traditional multifamily developments. Unique approaches that have

resulted in system change solutions, such as tracking, targeting and referrals systems that

integrate this program into an existing housing finance program can also be included. Describe

how the system change was or will be integrated into the PRA program management and

operation, as well as the performance measures used to determine effectiveness.

For Eligible Applicants or states that have programs underway, unanticipated outcomes, savings,

successful approaches, or partnerships with developers to increase production should be

included. A description of the mechanism used to evaluate the success should be included.

37

Since one of the goals of this program is the production of new integrated supportive housing

units, points will be based upon how the system change significantly increase the number of

supportive housing units, effectively matching units and tenants can be included.

b. Expand Cross-Cutting Policy Knowledge (Policy Priority - up to 2 points).

Taking successful models to other communities requires quantitative evidence of which policies

work and how they work, and public dissemination of this information. HUD’s experience is

that many local organizations and governments collect administrative data as part of their regular

operations. Policymakers at all levels could benefit from this rich data that HUD’s grantees

collect, and in order to receive the points in this category HUD expects applicants to

demonstrate their willingness to collaborate with policy researchers and program evaluators to

quantify the accomplishments of this program and to increase the overall body of policy

knowledge.

`HUD seeks to fund Grantees that go beyond the specific outcomes of this program to

provide information that informs future policymaking and support knowledge sharing and

innovation by disseminating best practices, encouraging peer learning, publishing data analysis

and research, and helping to incubate and test new ideas. All Grantees must demonstrate the

direct impact of their programs as described in this NOFA. To receive points for this policy

priority, grantees must go beyond these requirements and detail other outcomes to be improved.

Examples might include: reduction in housing and service cost per beneficiary; changes in the

amount and quality of services received by the target populations; integration of the target

population in supportive housing, such as the social interaction of the target populations with

existing multifamily residents; health outcomes, such as changes in well-being; the level of

coordination of housing and health services, such as the coverage of case management or service

coordinators or structural, process, and outcome measures that can capture the level of

integration of services.

To achieve full points, the Eligible Applicant must indicate what administrative data they

and/or partner organizations will collect on primary and secondary outcomes for the target

population, as described in their Implementation Plan. The Eligible Applicants must describe the

extent of data on primary and secondary outcomes made available to policy researchers through

documentation, such as a letter of cooperation, demonstrating a data-sharing agreement. An

example of cross –cutting policy knowledge would be the savings realized when a person with

disabilities moves from an institutional facility to a PRA assisted multifamily property.

Documenting this savings and sharing this knowledge would benefit HUD and policymakers at

all levels.

C. Review and Selection Process

HUD’s selection process is designed to ensure that grants are awarded to Eligible

Applicants that submit the most meritorious applications. HUD will consider the

information submitted by the application deadline date. After the application deadline date,

HUD may not, consistent with its regulations in 24 CFR part 4, subpart B, consider any

unsolicited information that you or any third party may want to provide. HUD may verify

38

information provided application as needed by sending a written request for clarification.

Responses to such inquiries regarding Rating Factors will be required within 5 business days of

receipt.

1. Application Screening

a. HUD will screen each application to determine if:

(1) The eligibility and application requirements outlined in Section III and IV are met.

(2) It is deficient, i.e. contains any Technical Deficiencies; and

(3) It meets the Threshold Requirements in section III.C.2 in the General Section and section IV

in this Program Section of the NOFA.

b. See section III.C.2 of the General Section of this NOFA for information regarding thresholds

and technical deficiencies. All applications must meet all threshold requirements of this NOFA

in order to be rated and ranked. Applicants must demonstrate compliance with the threshold

requirements through the information provided in their application, unless instructed otherwise in

this NOFA. The threshold requirements of this NOFA include certain threshold requirements of

section III.C.2 of the General Section and threshold requirements specific to the Section 811

PRA program. If an application does not meet all threshold requirements, HUD will not

consider the application as eligible for funding and will not rate and rank it. HUD will screen for

technical (not substantive) deficiencies and administer a cure period. Examples of curable

(correctable) technical deficiencies include, but are not limited to, inconsistencies in the funding

request, failure to submit the proper certifications (e.g., form HUD-2880), and failure to submit a

signature and/or date of signature on a certification. The subsection entitled, “Corrections to

Deficient Applications,” in section V.B. of the General Section is incorporated by reference and

applies to this NOFA unless otherwise stated. Clarifications or corrections of technical

deficiencies in accordance with the information provided by HUD must be submitted within

fourteen (14) calendar days (i.e. excluding Saturdays, Sundays and federal holidays) of the date

of the HUD notification. If an applicant does not cure all its technical deficiencies that relate to

threshold requirements within the cure period, HUD will consider the threshold(s) in question to

be failed, will not consider the application as eligible for funding, and will not rate and rank it.

All technical deficiency cure items must be submitted by facsimile using the Facsimile

transmittal form HUD-96011 and inserting in the box for name of the document, Technical

Deficiency or TC, plus the name of the document being faxed. HUD will match the item to the

electronic application so HUD’s official records are complete including all cure items. See the

General Section. Applicants must review and follow documentation requirements provided

in this Thresholds Requirements Section. Required forms, certifications and assurances must

be included in the Section 811 PRA application.

c. Corrections to Deficient Applications – Cure Period. The subsection entitled, “Corrections to

Deficient Applications,” in V.B of the General Section is incorporated by reference and applies

to this NOFA, except that clarifications or corrections of technical deficiencies in accordance

with the information provided by HUD must be submitted within fourteen calendar days (i.e.

39

excluding Saturdays, Sundays and federal holidays) of the date of the HUD notification. For

applications under this NOFA, HUD may contact you regarding the curable thresholds and/or to

ensure proper completion of the required forms.

d. Applications that will not be rated or ranked. HUD will not rate or rank applications that do

not meet the key eligibility thresholds, are deficient at the end of the cure period stated in V.B of

the General Section, or that have not met the thresholds described in III.C.2 of the General

Section of this NOFA and Section III of the Program Section of this NOFA . Such applications

will not be eligible for funding.

All Eligible Applicants are advised to check and maintain their DUNS numbers and CCR

registrations at www.sam.gov so any updates or changes are completed well in advance of

application deadline dates.

All applicants must have an active registration in the Central Contractor Registration (CCR)

system. In July 2012, the CCR was converted to the System for Award Management (SAM)

found at www.SAM.gov. The new SAM website incorporates requirements for Central

Contractor Registration (CCR). See Section IV of the General Section for more information.

For paper applications, the wrong DUNS number on an application will be treated as a technical

deficiency and the applicant will be permitted to provide a corrected SF424 to the location

indicated in the waiver approval within the specified cure period and in accordance with the

notification of the need to cure the application. Failure to correct the deficiency and meet the

requirement to have a DUNS number and active registration in the CCR will render the

application ineligible for funding.

2. Preliminary Rating and Ranking.

a. Rating.

(1) Reviewers will preliminarily rate each eligible application, SOLELY on the basis of

the rating factors described in V.A of this NOFA.

(2) HUD will assign a preliminary score for each rating factor and a preliminary total

score for each eligible application.

(3) The maximum number of points for each application is 100.

b. Ranking. After preliminary review, applications will be ranked in score order.

3. Final Review Panel. A Final Review Panel will:

a. Review the Preliminary Rating and Ranking documentation to:

(1) Ensure that any inconsistencies between preliminary reviewers have been identified

and rectified; and

(2) Ensure that the Preliminary Rating and Ranking documentation accurately reflects the

contents of the application.

b. Assign a final score to each application and rank them in score order; and

40

c. Recommend for selection the most highly rated applications, subject to the amount of

available funding, in accordance with the allocation of funds described in section XXX of this

NOFA.

4. Funding Decisions. Awards will be made based on HUD’s assessment of the Eligible

Applicant’s ability to manage a sustainable permanent affordable housing program for persons

with disabilities that successfully integrates residents into the community and applicant’s ability

to use Section 811 PRA funds in accordance with the rating and ranking points system set forth

in this document. After all eligible applications have been reviewed and scored; HUD will make

award determinations by selecting the highest rated applications. Applications that receive a

minimum score of 75 points or more and meet all of the applicable threshold requirements of the

General Section and this NOFA are eligible for selection. At the discretion of HUD, of grants

awarded, at least half will be new applicants that were not funded in FY 2012 that have received

a minimum score of 75 points or more and meet all of the applicable threshold requirements.

5. Tie Scores. If two or more applications have the same score and there are insufficient funds

to select each application, HUD will select for funding the application(s) with the highest score

for Rating Factor 3 (Implementation Plan) and Rating Factor 4 (Leverage.). If a tie remains,

HUD will select for funding the application(s) with the highest score for Rating Factors 1,

(Experience/Capacity/Readiness), 3, and 4.

6. Limitations on Award Amounts. HUD reserves the right to reduce or adjust the funding

amount based upon:

a. The reasonableness of the overall program relative to the number of units to be produced;

b. The level of funds available for award under the program.

c. If an applicant turns down an award, an award is not made, there are sufficient award

adjustments to make additional awards feasible, or additional funding becomes available through

recaptured funds or through a future appropriation HUD reserves the right to: (a) offer an award

to the next highest rated application(s) in this competition in their ranked order for those

applications scoring 75 points or higher; (b) add remaining or recaptured amount to the funds

that become if available for a future competition; or (c) restore amounts to a funding request that

had been reduced in this competition.

7. Debriefing. For a period of 120 days, beginning 30 days after the final awards for assistance

are publicly announced; HUD will provide a debriefing to a requesting unsuccessful Eligible

Applicant related to that application. A debriefing request must be made in writing or by email

by the applicant's authorized official whose signature appears on the SF424, or his or her

successor in the office and submitted to Lessie Powell Evans, Office of Housing Assistance and

Grant Administration, U.S. Department of Housing and Urban Development, 451 Seventh Street,

SW, Room 6234, Washington, DC 20410 or to PRADemoapplications@hud.gov Information

provided during a debriefing will include, at a minimum, the final score received for each rating

41

factor, final evaluation comments for each rating factor, and the final assessment indicating the

basis upon which the award was provided or denied.

VI. AWARD ADMINISTRATION INFORMATION

A. Preliminary Selection/Notification.

1. HUD will notify all Eligible Applicants as to the outcome of the preliminary selection

process. If an Eligible Applicant is preliminarily selected, HUD’s notice concerning the amount

of the award (based on the approved application) will constitute HUD’s preliminary selection,

subject to negotiation and execution of the award documents by HUD.

2. Successful State Section 811 PRA Program Eligible Applicants will be notified of the

preliminary selection and will receive instructions for proceeding to negotiations. When an

Eligible Applicant is preliminarily selected for an award, HUD will require the Eligible

Applicant's participation in negotiations to determine the specific terms of the Cooperative

Agreement. HUD will follow the negotiation procedures described in the General Section. The

selection is preliminary and does not become final until the negotiation between an Eligible

Applicant and HUD are successfully concluded, the Implementation Plan is approved by HUD,

and the Cooperative Agreement and other award documents are signed and executed. Costs may

be denied or modified if HUD determines that they are not allowable, allocable, and/or

reasonable.

3. As a result of the negotiations, HUD may request the Eligible Applicant to submit revisions to

the Implementation Plan. HUD will request these be delivered by fax using the facsimile

cover page found in your original conditionally approved application and faxed to 800-HUD-

1010 so that the changes can be incorporated into HUD’s official electronic files. Faxed

copies of materials will be attached to Eligible Applicants electronic application file so that

HUD has a complete record of the submission including any changes as a result of

negotiations. Therefore, when faxing materials, the Eligible Applicant must use the form

HUD96011 that was in its electronic submission. Failure to use the form as the cover page to

the faxed material will prevent HUD from being able to recognize the source of the material

and associate it to the correct file.

4. In cases where HUD cannot successfully conclude negotiations with a selected Eligible

Applicant or a selected Eligible Applicant fails to provide HUD with requested information, an

award will not be made to that Eligible Applicant. In this instance, HUD may preliminarily

select and proceed to negotiation with another applicant in accordance with the selection process

identified in Section V.C. of this NOFA. HUD reserves the right to reject an application if

information comes to the attention of HUD that adversely affects an applicant’s eligibility for an

award, adversely affects HUD’s evaluation or scoring of an application, or indicates evidence of

fraud or mismanagement on the part of an applicant.

B. Recapture or Deobligation of Funds. Funds not being utilized in the manner provided or

otherwise contemplated under the final Implementation Plan are subject to recapture or

deobligation by HUD, in HUD’s sole discretion.

42

1. Causes for recapture or deobligation of funding may include, but are not limited to:

a. Failure to meet required deadlines for performance in the Cooperative Agreement which

includes the schedule by Grantee and/or a sub-recipient;

b. Non-performance or improper performance under the terms of the award documents; and

c. Suspension, debarment, or other serious enforcement actions taken against the Grantee, a

recipient or affiliates thereof;

2. If awarded funds are recaptured or deobligated for any reason, HUD reserves the right, in its

sole discretion, to:

a. Award those funds to the next highest-ranking Eligible Applicant on the list of qualified

applications received by HUD; and/or

b. Award those funds to other Grantees that have demonstrated high-performance in their

award activity based on timeliness and milestones met under the terms of its approved

Implementation Plan and Grant Documents, and whose award activity offers a clear avenue

for furthering the existing program.

C. Administrative and National Policy Requirements. In addition to the requirements listed

below, please review all requirements in Section III of the General Section.

1. Uniform Relocation Act. Uniform Relocation Act provisions are applicable for the

Section 811 PRA program. . Refer to the General Section III.C.4.i. for more information on

real property acquisition and relocation.

Additional resources and guidance pertaining to real property acquisition and relocation for

HUD-funded programs and projects are available on HUD’s Real Estate Acquisition and

Relocation website at http://www.hud.gov/relocation. You will find on that website links to

applicable laws and regulations, policy and guidance, publications, training resources, and a

listing of HUD contacts if you have questions or need assistance.

2. Section 3. Not applicable to this program.

D. Applicable Reporting Requirements.

1. Quarterly Reporting Requirements. All Grantees must report to HUD quarterly, within 30

days of the end of a calendar quarter (3/31, 6/30, 9/30, and 12/31), in formats approved by HUD.

If there are fewer than 45 days remaining in the quarter in which the HUD documents are signed,

then the first quarterly reports will be due 30 days after the second calendar quarter date

subsequent to the award date. (Note: HUD plans to consolidate and coordinate the reporting

information requested below into online integrated information system during the first year of

the program operation.) Quarterly report requirements are as follows:

a. Expenditure Report. Report on the dollar amount of funds expended to date, Section 811

PRA contracts executed, number of units developed, total number of units in the program

43

(new and existing units), and the amount of funds remaining. The report must provide

information for total dollars expended, federal dollars expended, and non-federal funds

expended. Awardees may be requested to submit sources of funds used on all newly

constructed or renovated units with Section 811 PRA.

b. Program income. Report on Program Income as per applicable program income rules as

stated in the terms and conditions of the award agreement.

2. Annual Reports

a. Annual Management Report. HUD is interested in understanding and reporting on the

effects of the activities conducted under the award on the macro level. Therefore, the fourth

quarterly report for each funding year shall be an annual report and shall include regular

quarterly reporting described above plus the following additional information. The Grantee

will report on:

(1) Report on the status of the milestones in the Implementation Plan, comparing the schedules

for milestone completion and expenditures to actual activity.

(2) The number of units and the number of properties receiving contracts;

(3) Quarterly and annual production goals and results;

(4) Additional tenant and project data not reported in TRACS.

b. Annual Property Reporting Requirements. All Grantees must make the following reports

available to HUD annually on onsite inspections in the format approved by HUD:

(1) Copies of all Section 811 PRA Eligible Tenant files including rent analysis, project rental

assistance, disability status and income certifications;

(2) Report of the physical condition of the property pursuant to periodic physical inspections

pursuant to UPCS (see 24 CFR 5.703).

3. Reporting. A reporting document as selected by HUD will be required for all PRA

Grantees. This reporting system should incorporate most, if not all of the quarterly and annually

reporting requirements. The Logic Model or other reporting requirement will be provided after

selection.

4. Reports Required for Release of HUD Funds. Grantees are required to have HUD approval

before making any withdrawal of funds from the eLOCCS system.

5. General Requirements. Generally federal funds maintain their federal character with regard

to program eligible uses in perpetuity, and continue to remain subject to all annual reporting

requirements. Specifically, after the close of the award period, Grantees with funds remaining in

financing programs will prospectively be required to report basic information on the Program on

44

an annual basis until the funds are either: (1) rolled into another eligible activity; or (2) fully

disbursed through default.

6. Racial and Ethnic Data. If the Grantee is collecting client-level data, HUD requires that

funded recipients collect racial and ethnic beneficiary data. HUD has adopted the Office of

Management and Budget’s Standards for the Collection of Racial and Ethnic Data. In view of

these requirements, the applicant should use HUD27061, Racial and Ethnic Data Reporting Form

(instructions for its use), found on www.hudclips.org or a comparable electronic data system for

this purpose.

7. Compliance with the Federal Funding Accountability and Transparency Act of 2006

(Pub. L.109-282) (Transparency Act), as amended.

(a) Prime Grant Awardee Reporting. Prime recipients of HUD financial assistance are

required to report certain subawards in the Federal Government-wide website www.fsrs.gov or

its successor system.

Starting with awards made October 1, 2010, prime financial assistance awardees receiving funds

directly from HUD were required to report subawards and executive compensation information

both for the prime award and subaward recipients, including awards made as pass-through

awards or awards to vendors, if (1) the initial prime grant award is $25,000 or greater, or the

cumulative prime grant award will be $25,000 or greater if funded incrementally as directed by

HUD in accordance with OMB guidance; and (2) the subaward is $25,000 or greater, or the

cumulative subaward will be $25,000 or greater. For reportable subawards, if executive

compensation reporting is required and subaward recipients’ executive compensation is reported

through the SAM system, the prime recipient is not required to report this information. The

reporting of award and subaward information is in accordance with the requirements of Federal

Financial Assistance Accountability and Transparency Act of 2006, as amended by section 6202

of Public Law 110-252, hereafter referred to as the “Transparency Act”, and OMB Guidance

issued to the Federal agencies on September 14, 2010 (75 FR 55669) and in OMB Policy

guidance. The prime awardee will have until the end of the month plus one additional month

after a subaward or pass-through award is obligated to fulfill the reporting requirement. Prime

recipients are required to report the following information for applicable subawards:

i. Name of entity receiving award;

ii. Amount of award;

iii. Funding agency;

iv. North American Industry Classification System (NAICS) code for contracts/CFDA

program for financial assistance awards;

v. Program source;

vi. Award title descriptive of the purpose of the funding action;

vii. Location of the entity (including Congressional district);

viii. Place of Performance (including Congressional district);

ix. Unique identifier of the entity and its parent; and

x. Total compensation and names of top five executives.

45

For the purposes of reporting into the FFATA Subaward Reporting System (FSRS) reporting

site, the unique identifier is the DUNS number the entity has obtained from Dun and Bradstreet

and, for prime awardees, the DUNS number registered in SAM as required by HUD regulation

24 CFR 5.1004. This information will be displayed on a public government website pursuant to

the Transparency Act.

(b) Prime Grant Awardee Executive Compensation Reporting. Prime awardees must

also report in the government-wide website the total compensation and names of the top five

executives in the prime awardee organization if:

(i) More than 80 percent of the annual gross revenues are from the Federal Government, and

those revenues are greater than $25 million annually; and

ii) Compensation information is not readily available through reporting to the Securities

Exchange Commission (SEC).

(c) Subaward Executive Compensation Reporting. Prime grant awardees must also

report in the government-wide website the total compensation and names of the top five

executives in the subawardee if:

(i) More than 80 percent of the annual gross revenues are from the Federal Government,

and those revenues are greater than $25 million annually; and

(ii) This required compensation information is not readily available through reporting to

the SEC. For applicable subawards, if executive compensation reporting is required and

subaward recipients’ executive compensation is reported through the SAM system, the prime

recipient is not required to report this information.

(d) Transparency Act Reporting Exemptions. The Transparency Act exempts any

subawards less than $25,000 made to individuals and any subawards less than $25,000 made to

an entity whose annual expenditures are less than $300,000. Subawards with a cumulative total

of $25,000 or greater are subject to subaward reporting beginning the date the subaward total

award amount reaches $25,000. The Transparency Act also prohibits reporting of any

classified information. Any other exemptions to the requirements must be approved by the

Office of Management and Budget.

w. Compliance with Section 872 of the Duncan Hunter National Defense Authorization Act

for Fiscal Year 2009 (Pub. L. 110-417), hereafter referred to as “Section 872”. Section 872

requires the establishment of a government-wide data system – the Federal Awardee

Performance and Integrity Information System (FAPIIS) - to contain information related to the

integrity and performance of entities awarded federal financial assistance and making use of the

information by federal officials in making awards. OMB is in the process of issuing regulations

regarding federal agency implementation of Section 872 requirements. A technical correction to

this General section may be issued when such regulations are promulgated.

VII. OTHER INFORMATION

A. Further Information and Technical Assistance. Before the application deadline date, HUD

25

46

staff may provide general guidance and technical assistance about this NOFA. However, staff is

not permitted to assist in preparing the application. Also, following selection of applicants, but

before awards are announced, staff may assist in clarifying or confirming information that is a

prerequisite to the offer of an award. An applicant may contact Lessie Powell Evans, Section

811 PRA Program, Office of Housing Assistance and Grant Management, Department of

Housing and Urban Development, 451 Seventh Street, SW, Room 6234, Washington, DC 20410,

telephone 202-402-3390 (this is not a toll-free number). This number can be accessed via TTY

by calling the toll-free Federal Relay Service Operator at 800-877-8339. For technical support

for downloading an application or electronically submitting an application, please call

Grants.gov help desk at 800-518-GRANTS (this is a toll-free number) or send an email to

support@grants.gov.

B. Paperwork Reduction Act Statement. The Paperwork Reduction Act of 1995 (44 U.S.C.

3501-3520) is applicable to the information collection requirements in this Notice, OMB control

number 2502-0608. In accordance with the Paperwork Reduction Act, HUD may not consider or

sponsor, and a person is not required to respond to, a collection of information unless the

collection displays a valid OMB control number.

C. “Close Out” of Financing Programs Only. Grantees may end or reduce funding at any time

as long as any remaining funds are returned to HUD.

D. Environmental. A Finding of No Significant Impact (FONSI) with respect to the

environment has been made for this NOFA in accordance with HUD regulations at 24 CFR part

50, which implement section 102(2)(C) of the National Environmental Policy Act of 1969 (42

U.S.C. 4332(2)(C)). The FONSI will be posted at HUD’s funds available page at

http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/grants/fundsavail

under the Project Rental Assistance (PRA) Program.

[FR-5700-N-28]

47

Appendix A

HUD’s Fiscal Year (FY) 2013 Notice of Funding Availability (NOFA) for

Section 811 Project Rental Assistance Program

Outline of Application Content. This outline of the application content can also be used as a

checklist of the submission requirements for a complete application.

Application Content

Part I – Abstract/Summary 3-5 pages

Part II – Housing Agency and State Health and Human Services/Medicaid agencies must

have Partnership Agreement (there are no page limitations for Part II)

Part III – Narrative Response to Factors for Award – maximum 45 pages

Rating Factor 1. Applicants and State Health and Human Service Agency and the

state Medicaid Agency’ Relevant Experience – up to 23 points (suggested 6 pages maximum)

A. Applicant’s Relevant Experience, Capacity, and Readiness - up to 13 of 23 points

B. State Health and Huma Services/Mediciaid Agencies’ Relevant Experience and

Capacity – up to 10 of 23 points

Rating Factor 2. Need/Using Housing as a Platform for Improving Life (up to 5

points) (suggested 4 pages maximum)

Rating Factor 3. Soundness of Approach/Implementation Plan – up to 45 points

(suggested 25 pages maximum)

A. The Implementation Plan - Description of Applicant’s PRA Demo Program – up

to 20 of 45 points (suggested 9 pages)

B. Management and Oversight of the PRA Demo funds – up to 10 of 45 points

(suggested 5 pages)

C. Integration of Services – up to 20 of 45 points (suggested 6 pages)

48

D. Program Implementation Schedule – up to 5 of 45 points (suggested 2 pages)

Rating Factor 4. Leverage – up to 20 points (suggested 5 pages maximum)

A. Cost Effective Use of PRA Funds – up to 10 points

B. Commitments for Establishment of an Admission Preference (up to 10 points)

Rating Factor 5. Achieving Results, Program Innovation and Evaluation – up to 7

points (suggested 5 page maximum)

Part IV – General Applications Requirements and Certifications

(a) SF424_Application_for Federal_Assistance

(b) SF424 Supplement Survey on Equal Opportunity for Applicants titled “Faith Based EEO

Survey” (SF424SUPP) on Grants.gov (optional submission)

(c) SFLLL_Disclosure_of_Lobbying_Activities

(d) HUD2880_Applicant_Recipient_Disclosure_Update_Report titled “HUD Applicant

Recipient Disclosure Report” on Grants.gov

(e) HUD424CB_Detailed_Budget

(f) HUD2993_Acknowledgment_of_Application_Receipt, for applicants submitting paper

applications only

(g) HUD96011_Facsimile_Trasnsmittal (“Facsimile Transmittal Form” on Grants.gov)

Part V. Attachments including Supporting Documents, Commitment Letters and Letters of

Intent.

Page 1 of 9

MEMORANDUM OF UNDERSTANDING For administering the provisions of the HUD Section 811 Project Rental Assistance Program

WHEREAS, the Ohio Housing Finance Agency (hereinafter referred to as OHFA), the Ohio Department of

Medicaid (hereinafter referred to as ODM), the Ohio Department of Developmental Disabilities (hereinafter referred to as DODD), and the Ohio Department of Mental Health and Addiction Services (hereinafter referred to as ODMHAS) have come together to partner and to make an application for the Department of Housing and Urban Development Section 811 Project Rental Assistance Grant (hereinafter referred to as 811 PRA); and

WHEREAS, the agencies listed above have agreed to enter into a partnership agreement in which OHFA will be

the lead agency and named applicant and the other agencies will be partners for the Section 811 Project Rental Assistance Program application; and

WHEREAS, Ohio Revised Code 121.17 states the directors of departments shall devise a practical and working

basis for co-operation and co-ordination of work and for the elimination of duplication and overlapping functions; and

WHEREAS, the partners herein desire to enter into a Memorandum of Understanding setting forth the services

to be provided by the partners; and WHEREAS, the application prepared and approved by the partners is to be submitted to the Department of

Housing and Urban Development on or before May 5, 2014;

I. PURPOSE OF MEMORANDUM OF UNDERSTANDING

a. Purpose: The purpose of this Memorandum of Understanding (MOU) is to provide information about the relationship between the above mentioned partners regarding their respective roles, duties, obligations and responsibilities for implementation of the Section 811 Project Rental Assistance Program. This MOU is also intended to contribute to a cooperative and mutually beneficial relationship between the above mentioned partners, to coordinate resources to prevent duplication and ensure the effective and efficient delivery of housing and services, and to establish joint processes and procedures that will enable partners to integrate the current service delivery system resulting in a seamless and comprehensive array of both housing and service resources for Medicaid participants across Ohio. Partners to this document propose to coordinate and perform the activities and services described herein within the scope of legislative requirements governing the partner’s respective programs, services and agencies.

b. Term: This MOU is designed to serve as a record of the relationship of the signatories from April

25, 2014, through June 30, 2015, unless modified by the partners. The MOU will be renewed for each State Fiscal Year biennium period based on annual reviews and subsequent modification and/or amendment until the program ceases. The Term for each partner will commence upon the date of that partner’s signature.

II. INTRODUCTION/BACKGROUND

a. Background: On March 4, 2014, the U.S. Department of Housing and Urban Development published a Notice of Funding Availability (NOFA) for HUD’s Fiscal Year (FY) 2013 Section

Page 2 of 9

811 Project Rental Assistance Program. The NOFA announces the availability of funding to identify, stimulate, and support innovative state-level partnerships and strategies that will transform and increase affordable and permanent supportive housing for extremely low income people with disabilities. The Project Rental Assistance option within Section 811 was authorized by Congress through the Frank Melville Supportive Housing Investment Act of 2010, which modernized and reinvigorated this important HUD supportive housing program. Through this supportive housing program, HUD is seeking to support State Housing and Health and Human Service/Medicaid agency collaborations that have or will result in increased access to affordable housing units combined with access to appropriate and voluntary supports and services. As stated in the NOFA, many states have already developed partnerships to address this need, and HUD is seeking to support these efforts and incentivize additional states to develop similar collaborative efforts. HUD also intends the Section 811 Project Rental Assistance Program to inform future supportive housing policy making and is encouraging states to use Section 811 Project Rental Assistance Program funding to “incubate and test” replicable, systems-level supportive housing innovations that go beyond the basic requirements of the NOFA.

III. PARTNERS TO THE MEMORANDUM OF UNDERSTANDING

a. Partners and Their Roles: The NOFA clearly identifies the Eligible Applicant as “Any housing agency currently allocating LIHTC under Section 42 of the Internal Revenue Service Code of 1986 (IRC) or any state housing or state community development agency allocating and overseeing assistance under the HOME Investment Partnerships Act (HOME) and/or a similar federal or state program.” Additionally, the Eligible Applicant “must have a formal partnership with the State Health and Human Services/Medicaid agencies”. The following list outlines the partners involved in the Section 811 Project Rental Assistance Program:

i. OHFA is the housing agency that currently allocates Low Income Housing Tax Credits (LIHTC) under Section 42 of the Internal Revenue Service Code of 1986.

ii. ODM is the Single State Medicaid and health and human service agency for the state of Ohio, and will operate as the Medicaid agency as outlined in the Section 811 Project Rental Assistance Program.

iii. DODD has been delegated the authority to administer the 1915(c) waivers by ODM for individuals with Development Disabilities, and also provides oversight for the county Developmental Disability Boards (hereinafter referred to as DD Boards).

iv. ODMHAS oversees Ohio Alcohol, Drug Addiction, and Mental Health Boards (hereinafter referred to as ADAMH Boards).

IV. DESCRIPTION OF IDENTIFIED POPULATION: Following is a description of the individuals who

may qualify for Section 811 Project Rental Assistance Program housing: a. HOME Choice Consumers: Individuals aged 18-62 who qualify for HOME Choice shall be

eligible for housing under the Section 811 Project Rental Assistance Program. Pursuant to OAC §5101:3-51-02, these individuals:

i. Must continuously reside in a NF, ICF-IID, RTF and/or hospital, or a combination thereof, for a period of not less than ninety consecutive days, and in accordance with the federally-approved protocol and federal guidance. If the hospital is an institution for mental diseases, the individual must be under age twenty-one.

ii. Must be receiving Medicaid benefits for inpatient services furnished by the institutional setting prior to discharge from the NF, ICF-IID, RTF or hospital.

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iii. Must have an institutional level of care as defined in rule 5101:60-3-08 of the Administrative Code.

iv. Must be determined eligible for Ohio Medicaid in accordance with OAC 5160:1-1 through 5160:1-6.

v. May be enrolled on an ODM- or DODD-administered HCBS waiver. vi. Must have available housing in a qualified residence in the community prior to leaving

the institutional setting. vii. Must agree to participate in the HOME choice demonstration program by signing an

ODM-approved HOME choice demonstration program informed consent form. viii. Must participate in the development and implementation of an all services plan, service

plan or individual service plan (ISP) if the individual is enrolled on an ODM- or DODD-administered HCBS waiver, respectively, or a non-waiver HOME choice service plan if the individual is not enrolled on an HCBS waiver.

ix. Must accept the all services plan, service plan, ISP or non-waiver HOME choice service plan, as appropriate, by signing and dating the plan.

x. Must agree to participate in quality management and evaluation activities during the individual’s tenure in the HOME choice demonstration program, and for up to one year after completion of the HOME choice demonstration period.

b. Non-HOME Choice Waiver Consumers: Individuals aged 18-62 who are currently served by one of Ohio’s 1915(c) Home and Community Based Waivers, but do not meet the requirements of HOME Choice as outlined in IV.A.1.i-iii shall be eligible for housing under the Section 811 Project Rental Assistance Program. These include the Individual Options waiver, Level One Waiver, Ohio Home Care Waiver, Transitions DD Waiver, and SELF-Waiver.

c. Non-HOME Choice ADAMH Board Consumers: Individuals aged 18-62 who are currently served by an ADAMH board in Ohio, but do not meet the requirements of HOME Choice as outlined in IV.A.1.i-iii shall be eligible for housing under the Section 811 Project Rental Assistance Program.

d. Other Population Considerations: i. Geography: Based on owner participation and the availability of appropriate units, Ohio

intends on making PRA funding available according to the following distribution: 1. Sixty Percent (60%) of the total allocation of funding will go to housing

developed in the following eight (8) counties: a. Lucas County b. Cuyahoga County c. Summit County d. Stark County e. Mahoning County f. Franklin County g. Montgomery County h. Hamilton County

2. Forty Percent (40%) of the total allocation of funding will go to housing developed in the remaining eighty (80) counties comprising a balance of the state for setting-aside units for Section 811 Project Rental Assistance Program funding.

V. PARTNER RESPONSIBILITES FOR Section 811 Project Rental Assistance Program GRANT: a. OHFA will:

i. Facilitate the selection of 811 units: 1. Conduct program marketing and outreach to owners and agents;

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2. Issue an Invitation to Apply with specific selection criterion including considerations for geographic location, owner capacity, compliance history, program and population experience;

3. Select Owners and Agents that meet or exceed selection criterion in an Invitation to Apply;

4. Establish and maintain a system for linking eligible households with available units;

5. Review, process, and transfer rental payments to owners for eligible tenants residing in units set-aside by the owner as supportive housing for persons with disabilities.

ii. Provide technical assistance to Owners/Agents regarding management of Section 811 Project Rental Assistance Program units.

iii. Monitor Owners/Agents for compliance with: 1. 811 Project Rental Assistance Program use restrictions; 2. Fair housing and related regulations; and 3. Cross-cutting federal regulations such as Davis Bacon, Lead-based paint, and

environmental requirements. iv. Assist with disputes between assisted residents and Owner/Agents v. Coordinate with the other partners to the MOU to ensure appropriate service coordination

and integration vi. Complete all financial reports as required by HUD

vii. Evaluate the effect of the Section 811 Project Rental Assistance Program by measuring outcomes for Owners and Agents.

b. ODM will: i. Provide the coordination of housing and services of individuals in the Section 811

Project Rental Assistance Program: 1. ODM will receive and track referrals from HOME Choice, the Ohio Home Care

Waiver, as well as from DODD and ODMHAS; 2. ODM will then coordinate with OHFA to identify eligible units near a consumer;

and 3. ODM will notify the appropriate local case manager of the available unit, and will

facilitate the initial contact between case manager and Owner/Agent. ii. Support HOME Choice Transitional Coordinators and Case Managers in the Ohio Home

Care Waiver program in initial screening of referrals to ensure the following: 1. That consumers have the appropriate amount of services in their service package; 2. That consumers are capable of community living; and 3. That consumers are interested in pursuing Section 811 Project Rental Assistance

Program housing. iii. Provide Technical Assistance and guidance to Transitional Coordinators in the HOME

Choice program as well as Case Managers, CPST workers, and SSAs in the HOME Choice and other respective waiver programs related to housing and transitional assistance into Section 811 Project Rental Assistance Program units.

iv. Provide outreach and referral to potential tenants that are eligible through the Ohio Home Care Waiver and HOME Choice as described by Section VI in this MOU.

v. Evaluate the effect of the Section 811 Project Rental Assistance Program by measuring outcomes for consumers.

vi. In proportion to ODM clients served, subsidize OHFA operating expenses that exceed the 8% administrative fee;

vii. Cooperate with program evaluations undertaken by OHFA and/or HUD by providing information and data as allowed under state and federal laws.

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c. DODD will: i. Aid DD Boards in initial screening of referrals to ensure the following:

1. That consumers have the appropriate amount of services in their service package; 2. That consumers are capable of community living; and 3. That consumers are interested in pursuing Section 811 Project Rental Assistance

Program housing. ii. Provide Technical Assistance and guidance to DD Boards related to housing and

transitional assistance into 811 units. iii. Refer consumers eligible for Section 811 Project Rental Assistance Program housing to

ODM for coordination of housing and services. iv. Continue to develop community housing programs and services to avoid the

institutionalization of individuals living with their aging caregivers. v. In proportion to ODODD clients served, subsidize OHFA operating expenses that exceed

the 8% administrative fee; vi. Cooperate with program evaluations undertaken by OHFA and/or HUD by providing

information and data as allowed under state and federal laws. d. ODMHAS will:

i. Aid ADAMH Boards in initial screening of referrals to ensure the following: 1. That consumers have the appropriate amount of services in their service package; 2. That consumers are capable of community living; and 3. That consumers are interested in pursuing Section 811 Project Rental Assistance

Program housing. ii. Provide Technical Assistance and guidance to ADAMH Boards to housing and

transitional assistance into Section 811 Project Rental Assistance Program units. iii. Refer consumers eligible for Section 811 Project Rental Assistance Program housing to

ODM for coordination of housing and services. iv. In proportion to ODMHAS clients served, subsidize OHFA operating expenses that

exceed the 8% administrative fee; v. Cooperate with program evaluations undertaken by OHFA and/or HUD by providing

information and data as allowed under state and federal laws. VI. METHODS OF OUTREACH AND REFERRAL: Outreach to, and referral, of eligible clients will be

conducted using the current infrastructure available from the Ohio HOME Choice program and other waiver and board systems:

a. Outreach Methods For Eligible Populations:

i. Outreach for HOME Choice Consumers and Ohio Home Care Wavier participants: After the receipt of funding from HUD and the completion of the Invitation to Apply process by OHFA:

1. ODM will notify HOME Choice Transition Coordinators, HOME Choice case managers, and Ohio Home Care Case Managers of the availability of units within the county in which they provide service;

2. HOME Choice Transition Coordinators, HOME Choice case managers, and Ohio Home Care Case Managers will notify current HOME Choice consumers in the process of transitioning of Section 811 Project Rental Assistance Program units available in their region; and

3. HOME Choice Transition Coordinators, HOME Choice case managers, and Ohio Home Care Case Managers will subsequently notify new consumers about the availability of units, and the potential of entering a waitlist should all of the Section 811 Project Rental Assistance Program units be leased.

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ii. Outreach for Non-HOME Choice and DD Board Waiver Consumers: After the receipt of funding from HUD and the completion of the Invitation to Apply process by OHFA:

1. ODM will notify DODD who will in turn notify the Boards of Developmental Disabilities about the availability of Section 811 Project Rental Assistance Program units;

2. DD Boards will then notify Consumers within their systems about available units in their county; and

3. DD Boards will subsequently notify new consumers about the availability of units, and the potential of entering a waitlist should all of the Section 811 Project Rental Assistance Program units be leased.

iii. Outreach for Non-HOME Choice ADAMH Consumers: After the receipt of funding from HUD and the completion of the Invitation to Apply process by OHFA:

1. ODM will notify ODMHAS who will in turn notify ADAMH Boards about the availability of Section 811 Project Rental Assistance Program units;

2. ADAMH Boards will then notify Consumers within their systems about available units in their county; and

3. ADAMH Boards will subsequently notify new consumers about the availability of units, and the potential of entering a waitlist should all of the Section 811 Project Rental Assistance Program units be leased.

b. Outreach Methods to Owners/Agents i. To ensure owners and agents are aware of the Section 811 Project Rental Assistance

Program, OHFA will publish a notice of the funding availability on the OHFA web site and in Agency communications such as the Agency Update newsletter; Agency staff will conduct outreach to individual owners and agents that qualify to participate in the program based on the Invitation to Apply developed by OHFA. In addition, OHFA staff will work with industry stakeholder groups.

ii. OHFA will relay information to all Owner/Agents, outlining program requirements through regular e-mails, newsletter articles, quarterly meetings, and other means.

c. Referral Methods For Eligible Populations: i. HOME Choice Referrals:

1. If the individual is a HOME Choice consumer, referrals will come from the Transition Coordinator into the HOME Choice program. The HOME Choice program will then ensure that the Medicaid and Non-Medicaid service needs (hereinafter referred to as a service package) are in place and sufficient to cover an individual’s needs. After service package review, the referral will be sent to ODM’ Section 811 Project Rental Assistance Program housing coordinator.

2. After the referral has been made to the ODM 811 housing coordinator, he or she will make contact with a property manager who has received Section 811 Project Rental Assistance Program funding. The property manager will provide the ODM 811 housing coordinator the lease agreement and subsequent paperwork required for residency. After review, the ODM 811 housing coordinator will then refer the necessary paperwork to the originating referral source for final processing. The referral process will be completed when the ODM 811 housing coordinator receives confirmation from the property manager that the consumer successfully leased the unit, and the originating referral source confirms that services have commenced for the consumer.

ii. ODM-Administered Waiver Referrals: 1. If the individual is receiving services through the Ohio Home Care Waiver,

referrals will come from the responsible case management agency to ODM. ODM will then ensure that an individual’s service package is in place and

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sufficient to cover an individual’s needs. After service package review, the referral will be sent to ODM’s 811 housing coordinator.

2. After the referral has been made to the ODM 811 housing coordinator, he or she will make contact with a property manager who has received 811 units. The property manager will provide the ODM 811 housing coordinator the lease agreement and subsequent paperwork required for residency. After review, the ODM 811 housing coordinator will then refer the necessary paperwork to the originating referral source for final processing. The referral process will be completed when the ODM 811 housing coordinator receives confirmation from the property manager that the consumer successfully leased the unit, and the originating referral source confirms that services have commenced for the consumer.

iii. DD Boards and DODD-Administered Waiver Referrals: 1. If the individual is receiving services through a Board of Developmental

Disabilities, referrals will go from the Board of Developmental Disabilities to DODD. DODD will then ensure than an individual’s service package is in place and sufficient to cover an individual’s needs. After service package review, the referral will be sent to ODM’s 811 housing coordinator

2. After the referral has been made to the ODM 811 housing coordinator, he or she will make contact with a property manager who has received Section 811 Project Rental Assistance Program funding. The property manager will provide the ODM 811 housing coordinator the lease agreement and subsequent paperwork required for residency. After review, the ODM 811 housing coordinator will then refer the necessary paperwork to the originating referral source for final processing. The referral process will be completed when the ODM 811 housing coordinator receives confirmation from the property manager that the consumer successfully leased the unit, and the originating referral source confirms that services have commenced for the consumer.

iv. ODMHAS Referrals: 1. If the individual is receiving services through an ADAMH board, referrals will go

from the ADAMH board to ODMHAS. ODMHAS will then ensure that an individual’s service package is in place and sufficient to cover an individual’s needs. After service package review, the referral will be sent to ODM’s 811 housing coordinator.

2. After the referral has been made to the ODM 811 housing coordinator, he or she will make contact with a property manager who has received 811 units. The property manager will provide the ODM 811 housing coordinator the lease agreement and subsequent paperwork required for residency. After review, the ODM 811 housing coordinator will then refer the necessary paperwork to the originating referral source for final processing. The referral process will be completed when the ODM 811 housing coordinator receives confirmation from the property manager that the consumer successfully leased the unit, and the originating referral source confirms that services have commenced for the consumer.

d. Referral Methods For Owners/Agents i. OHFA will contact all Tax Credit Owners and Agents with projects within the last five

(5) years to notify them of an Invitation to Apply. This Invitation will include criteria including geographic location, owner capacity, compliance history, program and population experience.

e. Other Outreach And Referral Considerations

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i. OHFA will coordinate a statewide waiting list of housing units, while ODM will coordinate a statewide waiting list of consumers. Persons will be housed based on when they are entered on the waiting list and unit location preference.

ii. Owners and agents will be required to maintain a waiting list based on submissions of eligible applications from qualified households which will be referred to OHFA. The owner must ensure all relevant fair housing and related housing program requirements are followed in administering the waiting list.

iii. Owners will be required to use HUD’s Enterprise Income Verification (EIV) System to verify the income of all program participants.

iv. OHFA will require owners and agents to provide a quarterly report on the status of program units. Such reporting is in addition to the TRACs submission required in the NOFA.

VII. GENERAL PROVISIONS

a. Entire Understanding: This Memorandum of Understanding, together with the application for

Section 811 Project Rental Assistance Program funding submitted on or before May 5, 2014, constitutes the entire understanding of the Section 811 Project Rental Assistance Program between the partners listed herein.

b. Amending the MOU: This MOU may be amended or updated as deemed necessary by any of the partners mentioned in Section III.a upon mutual agreement.

c. Continuous Improvement: All partners mentioned in the MOU will participate in a process of program review and continuous improvement to offer the best possible services and seize opportunities for further collaboration. To assure that services are responsive to the needs of the community, partners will survey a random sampling of consumers to obtain feedback on satisfaction. All partners will participate in the ongoing development and improvement procedures, policies and operational management regarding the 811 Project Rental Assistance Program. All partners will be part of a joint planning process that will continuously review the needs of the eligible population and refine service and housing delivery based upon those needs.

d. Information Sharing and Confidentiality: All partners mentioned in Section III.a agree that any information protected under applicable sections of the Ohio Revised Code and/or federal law, will be disclosed or used only in accordance with applicable law, and only for the purposes set forth in this MOU and authorized by law, and will not be re-released to anyone except as allowed by all applicable sections of the Ohio Revised Code or any federal law which governs release of the information.

Signature Page Follows: Remainder of page intentionally left blank

Exhibit 4 of the Cooperative Agreement

GRANTEE PROGRAM DESCRIPTION Changes in information below must be reported in writing to HUD. Grantee may notify HUD of changes in all sections except in III and IV Leveraging where HUD approval must be obtained for changes.

I. General Information.

a. Grantee Name: Ohio Housing Finance Agency

b. Total Grant Amount: $11,991,399

i. Rental Assistance: $11,103,147

ii. Administrative Costs: $ 888,252

c. Total Number of Assisted Units: 485

d. Primary Grantee Contact Individual:

i. Name: Sean Thomas, Chief of Staff

ii. Address: 57 E. Main St., Columbus, OH 43215

iii. Phone: (614)644-5772

iv. Email: sthomas@ohiohome.org

II. Medicaid Agency and any other State Level Service Provider.

Ohio Department of Medicaid

Ohio Department of Developmental Disabilities

Ohio Department of Mental Health & Addiction Services

III. Leveraging/NOFA Rating Factor 4a Commitment to provide units below the FMR:

Program rent levels will be set at no greater than 50% of the AMGI.

IV. Leveraging/NOFA Rating Factor 4b Number State or Federal Housing Vouchers or Units

Committed: Three Housing Authorities have agreed to establish an admission preference for

persons eligible for 811 assistance and have set aside 95 Housing Choice Vouchers (Columbus

50, Portage Co. 25, and Wayne Co. 20), subject to contingencies outlined in their commitment

letters.

V. Target Population. See Interagency Partnership Agreement, Exhibit 3

a. Home Choice Consumers: Individuals between 18 years of age or older and less than 62 years

of age at the time admission into the property shall be eligible. Pursuant to OAC §5101:3-51-02,

these individuals:

i. Must continuously reside in a NF, ICF-IID, RTF and/or hospital, or a combination

thereof, for a period of not less than ninety consecutive days, and in accordance with the

federally-approved protocol and federal guidance. If the hospital is an institution for

mental diseases, the individual must be under age twenty-one.

ii. Must be receiving Medicaid benefits for inpatient services furnished by the

institutional setting prior to discharge from the NF, ICF-IID, RTF or hospital.

iii. Must have an institutional level of care as defined in rule 5101:60-3-80 of the OAC;

iv. Must be determined eligible for Ohio Medicaid in accordance with OAC 5160:1-1

through 5160:16.)

v. May be enrolled on an ODM- or ODODD-administered HCBS waiver.

vi. Must have available housing in a qualified residence in the community prior to

leaving the institutional setting.

vii. Must agree to participate in the HOME Choice demonstration program by signing an

ODM-approved HOME Choice demonstration program informed consent form.

viii. Must participate in the development and implementation of an all services plan,

service plan or individual service plan (ISP) if the individual is enrolled on and ODM- or

ODODD administered HCBS waiver, respectively, or a non-waiver HOME Choice

service plan if the individual is not enrolled on an HCBS waiver.

ix. Must accept the all services plan, service plan, ISP or non-waiver HOME Choice

service plan, as appropriate, by signing and dating the plan.

x. Must agree to participate in quality management and evaluation activities during the

individual’s tenure in the HOME Choice demonstration program, and for up to one year

after completion of the HOME Choice demonstration period.

b. Non-HOME Choice Waiver Consumers: Individuals between 18 years of age or older and

less than 62 years of age at the time of admission into the property who are currently served by

one of Ohio’s 1915(c) Home and Community Based Waivers, but do not meet the requirement of

HOME Choice as outline in IV. A. 1. i-iii shall be eligible for housing under the Section 811

Project Rental Assistance Program. These include the Individual Options waiver, Level One

Waiver, Ohio Home Care Waiver, Transitions DD Waiver, and SELF-Waiver.

c. Non-HOME Choice ADAMH Board Consumers: _Individuals between 18 years of age or_

older and less than 62 years of age at the time of admission into the property served by an

ADAMH board in Ohio, but do not meet the requirements of HOME Choice as outlined by IV. A.

1. i-iii shall be eligible for housing under the Section 811 Project Rental Assistance Program.

d. Other Population Considerations:

i. Geography: Based on owner participation and the availability of appropriate units, Ohio

intends to make PRA funding available according to the following distribution:

1.Sixty Percent (60%) of the total allocation of funding will go to housing developed in the

following eight (8) counties:

a. Lucas County

b. Cuyahoga County

c. Summit County

d. Stark County

e. Mahoning County

f. Franklin County

g. Montgomery County

h. Hamilton County

2. Forty Percent (40%) of the total allocation of funding will go to housing developed in the

remaining eighty (80) counties comprising a balance of the state for setting-aside units for Section

811 Project Rental assistance Program funding.

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Exhibit 5 of the Cooperative Agreement

PROGRAM GUIDELINES

FOR THE SECTION 811 PROJECT RENTAL ASSISTANCE DEMONSTRATION (811 PRA) PROGRAM

Part A—Summary and Applicability

§ PRA.101 General

§ PRA.102 Definitions

Part B- Grantee Requirements

§ PRA.201 Cooperative Agreement

§ PRA.202 Grantee’s Default under the Cooperative Agreement

§ PRA.203 Inter-Agency Partnership Agreement

§ PRA.204 Use Agreement

§ PRA.205 Rental Assistance Contract (RAC)

§ PRA.206 Administrative Costs

§ PRA.207 Approved Rent and Rent Adjustments

§ PRA.208 Executive Order 13166

§ PRA.209 Compliance with Fair Housing and Civil Rights Laws

§ PRA.210 Affirmatively Furthering Fair Housing

§ PRA.211 Effective Communication

§ PRA.212 Barrier Free/Accessibility Requirements for Units, Buildings, and Facilities, Including Public and Common Use Areas

§ PRA.213 Davis Bacon Labor Standards

§ PRA.214 Energy and Water Conservation

§ PRA.215 Environmental Requirements and Environmental Assurance

§ PRA.216 Coastal Barrier Resources Act

§ PRA.217 Lead-based paint

§ PRA.218 Program Income

§ PRA.219 Procurement of Recovered Materials

§ PRA.220 HUD’s Electronic Line of Credit Control System

§ PRA.221 Tenant Rental Assistance Certification System (TRACS)

§ PRA.222 Uniform Administrative Requirements

§ PRA.223 Grantee duty to ensure Owner requirements are satisfied

Part C—Rental Assistance Contract

§ PRA.301 Rental Assistance Contract (RAC)

§ PRA.302 Term of the RAC

§ PRA.303 Leasing to Eligible Tenants

§ PRA.304 Supportive Services

§ PRA.305 Limitations on Assisted Units

§ PRA.306 Grantee Program Administration

§ PRA.307 Housing Standards for Assisted Units

§ PRA.308 Default by Owner

§ PRA.309 Default by Grantee

§ PRA.310 Notice Upon Contract Expiration

§ PRA.311 Financing

Part D—Owner Requirements

§ PRA.401 Use Agreement

§ PRA.402 Responsibilities of the Owner

§ PRA.403 Selection and Admission of Eligible Tenants

§ PRA.404 Overcrowded and Under Occupied Units

§ PRA.405 Uniform Physical Construction Standards

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§ PRA.406 Reviews During Management Period

§ PRA.407 Barrier Free/Accessibility Requirement for Units, Buildings, and Facilities, Including Public and Common Use Areas

§ PRA.408 Compliance with Fair Housing and Civil Rights Laws

§ PRA.409 Tenant Organization Rights

§ PRA.410 Effective Communication

§ PRA.411 Executive Order 13166

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Part A— Applicability

§ PRA.101 General.

The purpose of the Section 811 Project Rental Assistance program, as authorized under the Frank Melville

Supportive Housing Investment Act of 2010, is to provide Extremely Low Income Persons with Disabilities and

Extremely Low Income households with at least one Person with Disabilities with decent, safe and sanitary

rental housing through the use of Rental Assistance Payments to Owners. The Section 811 Project Rental

Assistance program guidelines are applicable only to the Assisted Units, as defined in below. Grantee and

Owners must comply with these guidelines without modification, unless approved by HUD.

§ PRA.102 Definitions.

Refer to Exhibit 1 of the Cooperative Agreement for the definitions.

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Part B- Grantee Requirements

§ PRA.201 Cooperative Agreement.

Grantee must execute a Cooperative Agreement (HUD-93205-PRA) with HUD. The terms of the Cooperative

Agreement include the work to be performed and any special conditions or requirements. Grantee shall not

modify the Cooperative Agreement without the written consent of HUD.

§ PRA.202 Grantee’s Default under the Cooperative Agreement.

In the event of a default, as defined by the Cooperative Agreement, HUD may exercise all remedies as outlined

in the Agreement including but not limited to terminating the Cooperative Agreement and/or assuming all or

some of the RACs.

§ PRA.203 Inter-Agency Partnership Agreement (IPA). As defined in the Cooperative Agreement and

included as Exhibit 3 to the Cooperative Agreement.

§ PRA.204 Use Agreement.

The Grantee shall be responsible for ensuring the Grantee-approved Use Agreement (HUD-92238-PRA) is

recorded by the Owner consistent with local law. Grantee is responsible for enforcing the provisions of the Use

Agreement against the Owner, subject to the exception below and any other applicable HUD administrative

guidance and requirements.

If Congress fails to appropriate funds adequate to meet the future financial needs of the Cooperative Agreement

and or the Cooperative Agreement is terminated, HUD will not require Grantee to enforce any Use Agreements

on Eligible Multifamily Properties covered under a RAC. Under such a circumstance, and in accordance with

the Cooperative Agreement, HUD will allow Grantee or Grantee’s designee to continue to enforce or terminate

such Use Agreements at the Grantee’s or Grantee’s designee’s discretion.

§ PRA.205 Rental Assistance Contract (RAC).

(a) Grantee or Grantee’s designee must execute a Rental Assistance Contract (HUD-92235-PRA and HUD-

92237-PRA), in the form prescribed by HUD with Owners pursuant to the requirements set forth in the

Cooperative Agreement.

If Congress fails to appropriate funds adequate to meet the future financial needs of the Cooperative Agreement,

or the Cooperative Agreement is terminated, then HUD will permit Grantee or Grantee’s designee to continue

or terminate the RAC, at the Grantee or Grantee’s designee’s discretion.

§ PRA.206 Administrative Costs.

Administrative costs are allowable at a rate of no more than 8 (eight) percent of the amount awarded unless

modified with HUD consent in accordance with the Cooperative Agreement. These funds may be used for

planning and other costs associated with developing and operating the Section 811 PRA program, including

infrastructure and technology needed to operate the program and costs incurred after applicant’s receipt of an

Award Letter from HUD and before the execution of the Cooperative Agreement. The costs can include both

direct and indirect costs. If a Grantee includes administrative costs in their budget as a direct cost, they cannot

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charge these costs as part of their indirect cost rate as well, and should instruct their auditor or the government

auditor setting the rate of the availability and use of the administrative costs as described in the NOFA.

§ PRA.207 Approved Rent and Rent Adjustments. The initial RAC gross rent may not exceed the applicable or Fair Market Rent (FMR) level as determined by HUD,

unless such rent level is substantiated by a market study that has been prepared in accordance with the requirements

of a state housing agency or of Chapter 9 of HUD’s Section 8 Renewal Guide, or as approved by HUD. Rents can

only be adjusted annually based upon: (1) HUD’s Operating Cost Adjustment Factor (OCAF), (2) other operating

cost index approved by HUD as has been adopted by the Grantee for purposes of subsidizing affordable housing, or

(3) approval by HUD.

§ PRA.208 Executive Order 13166. Executive Order 13166, “Improving Access to Services for Persons with Limited English Proficiency (LEP)”, seeks

to improve access to federally assisted programs and activities for individuals who, as a result of national origin, are

limited in their English proficiency. Grantee obtaining federal financial assistance from HUD shall take reasonable

steps to ensure meaningful access to their programs and activities to LEP individuals.

§ PRA.209 Compliance with Fair Housing and Civil Rights Laws.

Grantee must comply with all applicable fair housing and civil rights requirements in 24 CFR 5.105(a), including,

but not limited to, the Fair Housing Act; Title VI of the Civil Rights Act of 1964; Section 504 of the Rehabilitation

Act of 1973; Title II of the Americans with Disabilities Act; and Section 109 of the Housing and Community

Development Act of 1974. Grantee must also comply with HUD’s Equal Access to Housing in HUD Programs

Regardless of Sexual Orientation or Gender Identity requirements. See HUD’s Equal Access rules at 24 C.F.R.

§§ 5.100, 5.105(a)(2), 5.403 and HUD’s final rule published in the Federal Register at 77 Fed. Reg. 5662,

“Equal Access to Housing in HUD Programs Regardless of Sexual Orientation or Gender Identity.”

If the Grantee is in a state or jurisdiction that has also passed a law or laws proscribing discrimination in housing

based upon sexual orientation or gender identity, or a law or laws proscribing discrimination in housing based on

lawful source of income, the Grantee and its subrecipients must comply with those laws of the states or localities in

which the programs or activities are conducted;

In addition, in executing this Cooperative Agreement, Grantee certifies that they will comply with the requirements

of the Fair Housing Act, Title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, and

Title II of the Americans with Disabilities Act.

Grantee shall refer to Handbook 4350.3 REV-1, chapter 2 for further guidance.

§ PRA.210 Affirmatively Furthering Fair Housing.

Under Section 808(e)(5) of the Fair Housing Act, HUD has a statutory duty to affirmatively further fair

housing. HUD requires the same of its funding recipients. Grantees will be required to certify that they will

affirmatively further fair housing, and each grantee must establish an affirmative fair housing marketing plan

for its state PRA program, and require other participating agencies and owners to follow its plan if responsible

for marketing PRA-Assisted Units. Grantees must adopt affirmative marketing procedures for their Section 811

PRA program. Affirmative marketing procedures consist of actions to provide information and otherwise

attract eligible persons to the program regardless of race, color, national origin, religion, sex, disability, or

familial status, who are not likely to apply to the program without special outreach. Grantees must

affirmatively further fair housing by selecting projects for participation that offer access to appropriate services,

accessible transportation, and commercial facilities to ensure greater integration of persons with disabilities in

the broader community. Grantees must require owners of Eligible Multifamily Properties to adopt actions and

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procedures to ensure that the Assisted Units are dispersed and integrated within the property. Grantees must

keep records describing actions taken to affirmatively market the program, annually assess the success of their

affirmative marketing activities, and make any necessary changes to their affirmative marketing procedures as a

result of the evaluation. Grantees must follow the methods of outreach and referral and program waiting list

policies, as described in Grantee’s application and as approved by HUD. All methods of outreach and referral

and management of the program waiting list must be consistent with fair housing and civil rights laws and

regulations, and affirmative marketing requirements.

§ PRA.211 Effective Communications.

Grantee must ensure that all communications are provided in a manner that is effective for persons with hearing,

visual, and other communications-related disabilities consistent with Section 504 of the Rehabilitation Act of

1973(see 24 CFR § 8.6) and the Americans with Disabilities Act.

§ PRA.212 Barrier Free/Accessibility Requirements for Units, Buildings, and Facilities, Including Public

and Common Use Areas.

Grantee is subject to Section 504 of the Rehabilitation Act of 1973 and implementing regulations at 24 CFR

part 8 and Title II of the Americans with Disabilities Act and implementing regulations at 28 CFR part 35.

Covered multifamily dwellings as defined in 24 CFR part 100 must also meet the design and construction

requirements of the Fair Housing Act and 24 CFR part 100. However, Assisted Units can consist of a mix of

accessible units for those persons with physical disabilities and non-accessible units for those persons without

physical disabilities.

§ PRA.213 Davis Bacon Labor Standards. All laborers and mechanics (other than volunteers under the conditions set out in 24 CFR part 70) employed by

contractors and subcontractors in the construction (including rehabilitation) of housing with 12 or more units assisted

under this NOFA, Exhibit 2 shall be paid wages at rates not less than those prevailing in the locality, as determined

by the Secretary of Labor in accordance with the Davis-Bacon Act (40 U.S.C. 3141 et seq.). Contracts involving

employment of laborers and mechanics shall be subject to the provisions of the Contract Work Hours and Safety

Standards Act (CWHSSA)(40 U.S.C 3701 et seq.). Owners of Eligible Multifamily Properties, contractors and

subcontractors must comply with all related rules, regulations, and requirements. Grantee shall be responsible for

ensuring inclusion of appropriate contract provisions, monitoring to ensure compliance, and correction of violations

in accordance with HUD guidance. Projects where construction is fully complete before an application is submitted

to the Grantee to receive assistance under the 811 PRA program are not subject to Davis-Bacon or CWHSSA

requirements. In accordance with U.S. Department of Labor regulations at 29 CFR 1.6(g), if a project is approved by

Grantee to receive 811 PRA funds after a contract for construction of the project has been awarded (or after the

beginning of construction where there is no contract award) but before completion of construction, the state housing

agency shall require that the wage determination effective on the date of award (or beginning of construction) be

incorporated into the construction contract retroactively to the date of award or beginning of construction. Grantee

may, however, request the HUD Office of Labor Relations to seek approval from the U.S. Department of Labor for

the incorporation of a wage determination to be effective on the date of the state housing agency’s approval of 811

PRA funds for the project. Such approval may be granted only where there is no evidence of intent to apply for the

federal assistance for the project prior to contract award or start of construction.

§ PRA.214 Energy and Water Conservation

Grantees are required to build to a higher standard by incorporating components of sustainable building in PRA

developments. At a minimum, energy efficiency strategies and water conservation appliances and fixtures must

be incorporated in the design, construction, and operation of all new construction and substantial (gut)

rehabilitation projects when such projects apply for PRA funding.

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(a) Energy Efficiency. Owners of new construction and substantial rehabilitation low-rise (up to 3 stories)

Eligible Multifamily Properties must meet the requirements of EPA’s ENERGY STAR Qualified Homes. Mid-

Rise & High Rise developments (4 or more stories) must meet the requirements of the ENERGY STAR

Qualified Multifamily High Rise Buildings. Any state energy code requirements will take precedence over

ENERGY STAR specifications when the state code approximates or exceeds that standard.

(b) Water Conservation Fixtures. Installation of water-conserving fixtures is required in all new and

substantially rehabilitated developments (i.e. resource efficient plumbing and appliances such as low flow

showerheads and faucet and high efficiency toilets). The materials used should be the most current WaterSense

or a greater water efficiency product. More information is available at www.epa.gov/owm/water-efficiency.

§ PRA.215 Environmental Requirements and Environmental Assurance.

(a) As HUD does not approve program funding for specific activities or projects of the Grantees, it will not

perform environmental reviews on such activities or projects. However, to ensure that the tenets of HUD

environmental policy and the requirements of applicable statutes and authorities are met, Grantees will be

required to implement the following analyses and determinations for specific program activities and projects.

The environmental tenets apply to both existing and new projects per the requirements below. Existing

properties that are currently HUD-assisted or HUD-insured and that will not engage in activities with physical

impacts or changes beyond routine maintenance activities or minimal repairs are not required to comply with

the environmental tenets. If, at the time that a project applies for PRA assistance, the project is under

construction or being rehabilitated, the project shall be subject to the environmental review requirements

applicable to new construction or rehab if the work has not progressed beyond a stage of construction where

modifications can be undertaken to avoid the adverse environmental impacts addressed by the requirement.

Citations to authorities in the following paragraphs are for reference only; to the extent that property standards

or restrictions on the use of properties stated in the following paragraphs are more stringent than provisions of

the authorities cited, the requirements stated in the following paragraphs shall control:

(1) Site Contamination (24 CFR 50.3(i)). It is HUD policy that all properties for use in HUD assisted

housing be free of hazardous materials, contamination, toxic chemicals and gases, and radioactive

substances, where a hazard could affect the health and safety of occupants or conflict with the intended

utilization of the property (24 CFR 50.3(i)(1)). Therefore, projects applying for assistance shall:

(a) Assess whether the site (i) is listed on an EPA Superfund National Priorities or CERCLA list or

equivalent State list; (ii) is located within 3,000 feet of a toxic or solid waste landfill site; (iii) has

an underground storage tank other than a residential fuel tank; or (iv) is known or suspected to be

contaminated by toxic chemicals or radioactive materials. If none of these conditions exist, a

letter of finding certifying these findings must be submitted and maintained in the site’s

environmental record. If any of these conditions exist, the grantee must provide an ASTM Phase

I Environmental Site Assessment (ESA) in accordance with ASTM E 1527-05 (or the most

recent edition); OR

(b) Provide a Phase I ESA in accordance with ASTM E 1527-05 (or the most recent edition).

Note: A Phase I ESA, which complies with these standards, and was prepared within the Phase I ESA

continuing viability timeframe for the acquisition of the property or a real estate transaction

(construction, rehabilitation, or refinancing) for the property, will be deemed acceptable.

If a Phase I ESA is conducted and the Phase I ESA identifies RECs, a Phase II ESA in accordance with

ASTM E 1903-11 (or the most recent edition) shall be performed. Any hazardous substances and/or

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petroleum products that are identified at levels that would require clean-up under State policy shall be so

cleaned up in accordance with the State’s clean-up policy. Risk-Based Corrective Actions are permitted

if allowed for under a State’s clean-up policy.

(2) Historic Preservation (16 U.S.C. 470 et seq.).

(a) As the various States, Territories, Tribes and municipalities have established historic

preservation programs to protect historic properties within their jurisdiction, all work on

properties identified as historic by the State, Territory, Tribe, or Municipality, as applicable,

must comply with all applicable State, territorial, and tribal historic preservation laws and

requirements and, for projects affecting locally designated historic landmarks or districts, local

historic preservation ordinance and permit conditions.

(b) In addition, all work on properties listed on the National Register of Historic Places, or which the

Grantee knows are eligible for such listing, must comply with “The Secretary of the Interior’s

Standards for Rehabilitation.” Complete demolition of such properties would not meet the

Standards and is prohibited.

(c) On site discoveries. If archaeological resources and/or human remains are discovered on the

project site during construction, the recipient must comply with applicable State, tribal, or

territory law, and/or local ordinance (e.g., State unmarked burial law).

(3) Noise (24 CFR Part 51, Subpart B - Noise Abatement and Control). All activities and projects involving

new construction shall be developed to ensure an interior noise level of 45 decibels (dB) or less. In this

regard, and using the day-night average sound level (Ldn), sites not exceeding 65 dB of environmental

noise are deemed to be acceptable; sites above 65 dB require sound attenuation in the building shell to

45 dB; and sites above 75 dB shall not have noise sensitive outdoor uses (e.g. picnic areas, tot lots,

balconies or patios) situated in areas exposed to such noise levels.

(4) Airport Clear Zones (24 CFR Part 51, Subpart D - Siting of HUD Assisted Projects in Runway Clear

Zones at Civil Airports and Clear Zones and Accident Potential Zones at Military Airfields). No

activities or projects shall be permitted within the “clear zones” or the “accident potential zones” of

military airfields or the “runway protection zones” of civilian airports.

(5) Coastal Zone Management Act (16 U.S.C. 1451 et seq.). Activities and projects shall be consistent with

the appropriate state coastal zone management plan. Plans are available from the local coastal zone

management agency.

(6) Floodplains (Executive Order 11988; Flood Disaster Protection Act (42 U.S.C. 4001-4128). No new

construction activities or projects shall be located in the mapped 500-year floodplain or in the 100-year

floodplain according to FEMA’s Flood Insurance Rate Maps (FIRM). Existing structures may be

assisted in these areas, except for sites located in coastal high hazard areas (V Zones) or regulatory

floodways, but must meet the following requirements:

(a) The existing structures must be flood-proofed or must have the lowest habitable floor and

utilities elevated above both the 500-year floodplain and the 100-year floodplain.

(b) The project must have an early warning system and evacuation plan that includes evacuation

routing to areas outside of the applicable floodplains.

(c) Project structures in the 100-year floodplain must obtain flood insurance under the National

Flood Insurance Program. No activities or projects located within the 100-year floodplain may

be assisted in a community that is not participating in or has been suspended from the National

Flood Insurance Program.

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(7) Wetlands (Executive Order 11990). No new construction shall be performed in wetlands. No

rehabilitation of existing properties shall be allowed that expands the footprint such that additional

wetlands are destroyed. New construction includes draining, dredging, channelizing, filling, diking,

impounding, and related grading activities. The term wetlands is intended to be consistent with the

definition used by the U.S. Fish and Wildlife Service in Classification of Wetlands and Deep Water

Habitats of the United States (Cowardin, et al., 1977). This definition includes those wetland areas

separated from their natural supply of water as a result of activities such as the construction of structural

flood protection methods or solid-fill road beds and activities such as mineral extraction and navigation

improvements.

(8) Siting of Projects Activities Near Hazardous Operations Handling Conventional Fuels or Chemicals of

an Explosive or Flammable Nature (24 CFR Part 51, Subpart C). Unshielded or unprotected new

construction sites shall be allowed only if they meet the standards of blast overpressure (0.5psi –

buildings and outdoor unprotected facilities) and thermal radiation (450 BTU/ft2 -hr – people, 10,000

BTU/ft2-hr – buildings) from facilities that store, handle, or process substances of explosive or fire

prone nature in stationary, above ground tanks/containers.

(9) Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.). New construction shall not be permitted that

would result in a taking of endangered plant or animal species as listed under the Endangered Species

Act of 1973. Taking includes not only direct harm and killing but also modification of habitat. Maps

for listed species and geographic habitat by state can be found at:

http://ecos.fws.gov/tess_public/StateListing.do?state=all.

(10)Farmland Protection (7 USC 4201 et seq.). New construction shall not result in the conversion of

unique, prime, or otherwise productive agricultural properties to urban uses.

(11) Sole Source Aquifers (Section 1424(e) of the Safe Drinking Water Act of 1974 (42 U.S.C. 201, 300 et

seq., and 21 U.S.C. 349)). Any new construction activities and projects located in federally designated

sole source aquifer areas (SSAs) shall require consultation and review with the U.S. Environmental

Protection Agency (USEPA). Information regarding location and geographic coverage of the 73

federally designated SSAs can be found at:

http://water.epa.gov/infrastructure/drinkingwater/sourcewater/protection/solesourceaquifer.cfm.

§ PRA.216 Coastal Barrier Resources Act.

The Grantee must adhere to the Coastal Barrier Resources Act which prohibits activities or projects in Coastal

Barrier Resource System (CBRS) units. CBRS units are mapped and available from the Fish and Wildlife

Service at: http://www.fws.gov/CBRA/.

§ PRA.217 Lead Based Paint.

The Lead Safe Housing Rule (specifically 24 CFR 35, subparts B, H and R) applies to project based rental

assistance of pre-1978 housing for persons with disabilities when a child of less than 6 years of age resides or is

expected to reside in such housing. For Eligible Multifamily Properties in which such units will receive an

annual average of more than $5,000 of rental assistance in any year, a lead risk assessment, followed by interim

controls of any lead-based paint hazards identified must be conducted, and a reevaluation must be conducted

every two years during the assistance period. For properties in which such assistance is less than or equal to

$5,000, a visual assessment for deteriorated paint must be conducted during the initial and periodic inspections,

followed by paint stabilization of any deteriorated paint identified. The Environmental Protection Agency’s

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Renovation, Repair and Painting (RRP) Rule also applies to such target housing when renovation, repair or

painting work is conducted; among other requirements, the work, using lead-safe work practices, must be a

conducted or supervised by certified lead renovator working for a certified lead renovation firm when the

amount of work exceeds the RRP Rule’s minor repair and maintenance area threshold. See 40 CFR 745.

§ PRA.218 Program Income.

Grantee must have sufficient knowledge and experience to identify and account for program income as defined

in 24 CFR part 85. All program income including interest earned on any award supported activity (if it

generates program income it has to be accounted for whether it is paid to a Grantee or is used for a program

purpose without passing back to the Grantee) is subject to the terms and conditions of the Cooperative

Agreement and such U.S. Treasury rules as may apply. More specifically, Grantee must document receipt of

program income and how the funds were used.

§ PRA.219 Procurement of Recovered Materials.

State agencies and agencies of a political subdivision of a state that are using assistance under a HUD program

NOFA for procurement, and any person contracting with such an agency with respect to work performed under

an assisted contract, must comply with the requirements of Section 6002 of the Solid Waste Disposal Act, as

amended by the Resource Conservation and Recovery Act.

In accordance with Section 6002, these agencies and persons must procure items designated in guidelines of the

Environmental Protection Agency (EPA) at 40 CFR part 247 that contain the highest percentage of recovered

materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price

of the item exceeds $10,000 or the value of the quantity acquired in the preceding fiscal year exceeded $10,000;

must procure solid waste management services in a manner that maximizes energy and resource recovery; and

must have established an affirmative procurement program for procurement of recovered materials identified in

the EPA guidelines.

§ PRA.220 HUD’s Electronic Line of Credit Control System. Grantee must be eligible to acquire rights and access under HUD's Electronic Line of Credit Control System and/ or

other database system approved by HUD.

§ PRA.221 Tenant Rental Assistance Certification System (TRACS).

Grantee must use software that has the capability to receive tenant’s certification and recertification data (form

HUD 50059) and voucher data (form HUD 52670) electronically from owners. The Grantee must have the

capability to transmit HUD 50059 data to HUD TRACS Tenant System and HUD 52670 data to HUD TRACS

Voucher/Payment System, and to receive return messages transmitted from TRACS.

§ PRA.222 Uniform Administrative Requirements.

All States, Territories, Urban Counties, and Metropolitan cities receiving funds under this NOFA shall be

subject to the requirements of 24 CFR part 85. Non-profit subgrantee shall be subject to the requirements of 24

CFR part 84. Administrative requirements covered by Parts 84 and 85 include, but are not limited to: financial

management system standards, payment standards, allowable costs, non-Federal audit, supplies and

procurement.

§ PRA.223 Grantee duty to ensure Owner requirements are satisfied

Grantee is responsible for ensuring all Owner requirements as may be stated in the 811 PRA statutory authority,

the NOFA, the Cooperative Agreement, including specific Owner requirements under the Program Guidelines,

Rental Assistance Contract and Use Agreement are met at all times. Grantee agrees to monitor Owners in

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accordance with all applicable contractual and HUD statutory requirements and pursue corrective action or

pursue legal remedies against the Owner where appropriate.

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Part C—Rental Assistance Contract § PRA.301 The Rental Assistance Contract (RAC).

(a) Rental Assistance Contract (RAC). The RAC (HUD-92235-PRA and HUD-92237-PRA, in the form

prescribed by HUD, sets forth rights and duties of the Owner and the Grantee with respect to the Eligible

Multifamily Property and the Assisted Units. In the event another entity is designated by the Grantee to

administer the RAC, the Grantee remains responsible for enforcing all provisions of the RAC.

(b) Rental assistance payments to Owners under the RAC. The Rental Assistance Payments are made monthly

by the Grantee upon proper requisition by the Owner. The rental assistance payments made under the RAC

are:

(1) Payments to the Owner to assist Eligible Tenant residing in Eligible Multifamily Properties and

(2) Payments to the Owner for vacant Assisted Units (“vacancy payments”) if the conditions specified in

HUD administrative guidance are satisfied.

(c) Amount of Rental Assistance Payments to Owner.

(1) The amount of the Rental Assistance Payment made to the Owner of an Assisted Unit being leased by

the Eligible Tenant is the difference between the contract rent for the unit and the tenant rent owed by

the Eligible Tenant as determined in accordance with applicable administrative and regulatory

requirements.

(2) If the Grantee program includes vacancy payments, a Rental Assistance Payment may be made to the

Owner for a vacant Assisted Unit that may not exceed 80 percent of the contract rent for up to 60 days

of vacancy, subject to the conditions as may be imposed by HUD administrative guidance. If the Owner

collects any tenant rent or other amount for this period which, when added to this vacancy payment,

exceeds the contract rent, the excess must be repaid as HUD directs.

(d) Payment of utility reimbursement. Where applicable, the Owner will pay a utility reimbursement in

accordance with 24 C.F.R. § 5.632.

§ PRA.302 Term of the RAC.

The term of the RAC shall be for no less than twenty years and subject to appropriations. The RAC may be

renewed based upon the applicable requirements as established by HUD and appropriations.

§ PRA.303 Leasing to Eligible Tenants.

(a) Availability of Assisted Units for Eligible Tenant in the Target Population.

During the term of the RAC, Owner shall make available for occupancy by Eligible Tenants in the Target

Population the total number of Assisted Units committed under the RAC. For purposes of this section, making

units available for occupancy by Eligible Families means that the owner:

(1) Has leased or is making good faith efforts to lease the units to Eligible Tenants, in the Target Population

including informing the Grantee or their designee of a vacancy and holding the unit open for a

reasonable period of time; and

(2) Has not rejected any such applicant family except for reasons permitted under the RAC, the Project

Rental Assistance Program Guidelines or the Grantee-approved tenant selection plan for the PRA units..

Failure on the part of the Owner to comply with this requirement is a violation of the RAC and grounds

for all available legal remedies, including specific performance of the RAC, suspension or debarment

from HUD programs, and reduction of the number of Assisted Units under the RAC.

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(b) Reduction of number of Assisted Units covered by RAC. The Grantee may reduce the

number of Assisted Units covered by the RAC if:

(1) The Owner fails to comply with the requirements of paragraph (a) of this section; or

(2) Grantee determines that the inability to lease Assisted Units to Eligible Families is not a temporary

problem.

(c) Increase in number of Assisted Units covered by RAC. The Grantee may increase the number of the

Assisted Units covered by the RAC if:

(1) The program funding amount with the increased number of assisted units does not exceed the maximum

amount of grant funds awarded in Exhibit 4 of the Cooperative Agreement; and

(2) The owner complies with § PRA.305.

(d) Protections for Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking. Subpart L of 24

CFR part 5 shall apply to the Assisted Units in Eligible Multifamily Properties.

§ PRA.304 Supportive Services.

Eligible Tenant’s participation in supportive services is voluntary and cannot be required as a condition of

admission or occupancy.

§ PRA.305 Limitations on Assisted Units. (a) Eligible Multifamily Properties may only receive Rental Assistance Payments if the housing assisted

does not currently have an existing use restriction for persons with disabilities. Units receiving any form of federal or

state project-based rental assistance for a period of 6 months or longer are ineligible to receive Rental Assistance

Payments, unless such payments are being used to support other units in the building without such restrictions.

Existing units receiving any form of long-term operating housing subsidy within a six-month period prior to

receiving Rental Assistance Payments, such as assistance under Section 8, are ineligible to receive this

assistance.

(b) Units with use agreements requiring housing for persons 62 or older are not be eligible to receive Project

Rental Assistance Payments.

(c) No more than twenty five percent of the total units in Eligible Multifamily Properties can: (1) be provided

Rental Assistance Payments; (2) be restricted to supportive housing for persons with disabilities; or 3) have any

occupancy preference for Persons with Disabilities.

(d) These units must be dispersed throughout the property and must not be segregated to one area of a building

(such as on a particular floor or part of a floor in a building or in certain sections within a project). Owners will

designate the number of units to be set-aside as Assisted Units but the types (e.g., accessible ) and the specific

units numbers (e.g., units 101, 201, etc.) will be flexible depending on the needs of the program and the

availability of the units in the property.

§ PRA.306 Grantee Program Administration.

The Grantee is responsible for the overall management of the award and administration of the Section 811 PRA

funds awarded by HUD. Grantees may contract with third party entities to manage all or a portion of the rent

administration requirements as outlined in Section XIV to a Grantee with the approval from HUD. Grantee

however remains responsible and liable for enforcing all provisions of the RAC and the Cooperative

Agreement.

§ PRA.307 Housing Standards for Assisted Units.

Eligible Multifamily Properties with Assisted Units must comply with:

(a) Applicable State and local laws, codes, ordinances and regulations.

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(b) Smoke detectors —

(1) Performance requirement. After October 30, 1992, each dwelling unit must include at least one battery-

operated or hard-wired smoke detector, in proper working condition, on each level of the unit. If the unit

is occupied by hearing-impaired persons, smoke detectors must have an alarm system, designed for

hearing-impaired persons, in each bedroom occupied by a hearing-impaired person.

(2) Acceptability criteria. The smoke detector must be located, to the extent practicable, in a hallway

adjacent to a bedroom, unless the unit is occupied by a hearing-impaired person, in which case each

bedroom occupied by a hearing-impaired person must have an alarm system connected to the smoke

detector installed in the hallway.

(c) Assisted Units must meet minimum Uniform Physical Condition Standards as more fully described in 24

C.F.R. 5.703.

(d) Accessibility requirements in accordance with the Fair Housing Act and implementing regulations at 24

CFR part 100, Section 504 of the Rehabilitation Act of 1973 and implementing regulations at 24 CFR part 8 and

as applicable, Titles II and III of the Americans with Disabilities Act and implementing regulations at 28 CFR

parts 35 and 36, respectively.

§ PRA.308 Default by Owner.

The RAC will provide:

(a) That if the Grantee determines that the Owner is in default, the Grantee will notify the Owner of the actions

required to be taken to cure the default and of the remedies to be applied by the Grantee, including specific

performance under the RAC, reduction or suspension of rental assistance payments and recovery of

overpayments, where appropriate; and

(b) That if the owner fails to cure the default, the Grantee has the right to terminate the RAC or take other

corrective action.

§ PRA.309 Default by Grantee.

Rights of HUD if the Grantee defaults under RAC. The RAC will provide that, in the event of failure of the

Grantee to comply with the RAC, the Owner will have the right, if he is not in default, to demand that HUD

investigate. HUD will give the Grantee a reasonable opportunity to take corrective action. If HUD determines

that a substantial default exists and the Grantee is unwilling or unable to cure, HUD may, at its discretion, take

all appropriate remedies under the Cooperative Agreement, including but not limited to assuming the Grantee’s

rights and obligations under the RAC.

§ PRA.310 Notice Upon Rental Assistance Contract Expiration.

(a) The Owner will notify each Eligible Family in the Assisted Units, at least 90 days before the end of the RAC

term, of any increase in the amount the family will be required to pay as rent which may occur as a result of its

expiration. If the Contract is to be renewed but with a reduction in the number of units covered by it, this notice

shall be given to each Eligible Family who will no longer be assisted under the Contract.

(b) The notice provided for in paragraph (a) of this section shall be accomplished by:

(1) Sending a letter by first class mail, properly stamped and addressed, to the Eligible Family at its address

at the project, with a proper return address; and

(2) Serving a copy of the notice on any adult person answering the door at the leased dwelling unit, placing

the notice under or through the door, if possible, or else by affixing the notice to the door. Service shall

not be considered to be effective until both required notices have been accomplished. The date on which

the notice shall be considered to be received by the Eligible Family shall be the date on which the owner

mails the first class letter provided for in this paragraph, or the date on which the notice provided for in

this paragraph is properly given, whichever is later.

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(c) The notice shall advise each affected Eligible Family that, after the expiration date of the Contract, the

Eligible Family will be required to bear the entire cost of the rent and that the owner will be free (to the extent

the project is not otherwise regulated by HUD) to alter the rent without HUD or Grantee approval, but subject to

any applicable requirements or restrictions under the lease (HUD-92236-PRA) or under State or local law. The

notice shall also state:

(1) The actual (if known) or the estimated rent which will be charged following the expiration of the

Contract;

(2) The difference between the rent and the Total Tenant Payment toward rent under the Contract; and

(3) The date the Contract will expire.

(d) The owner shall give HUD a certification that families have been notified in accordance with this section

with an example of the text of the notice attached.

§ PRA.311 Financing.

(a) Pledge of RAC. An Owner may pledge, or offer as security for any loan or obligation the RAC, provided that

such financing is in connection with an Eligible Multifamily Property with Assisted Units subject to these

Program Guidelines and approved by Grantee. Any pledge of the RAC or payments there under, will be limited

to the amounts payable under the RAC in accordance with its terms.

(b) Foreclosure and other transfers. In the event of foreclosure, assignment or sale in lieu of foreclosure, or

other assignment or sale of the Eligible Multifamily Property, as may be approved by the Grantee:

(1) The RAC shall be transferred to the new Owner, and

(2) Rental Assistance Payments will continue uninterrupted in accordance with the terms of the RAC.

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Part D—Owner Requirements

§ PRA.401 Use Agreement.

(a) Owners must agree to record a Use Agreement (HUD-92238-PRA) for not less than thirty years, in the form

prescribed by HUD.

(b) During the Use Agreement period, Owners shall make the Grantee’s approved number of Assisted Units

available for occupancy to Eligible Families referred pursuant to the Inter-Agency Partnership Agreement.

§ PRA.402 Responsibilities of Owner.

(a) Marketing and Outreach The Grantee is responsible for identifying the target populations, developing

methods for outreach, and referral and marketing, and maintaining waiting lists for these assisted units as

outlined in the Grantee’s Inter-Agency agreement and NOFA application. Marketing by the Owner, where

applicable (as may be outlined in Grantee’s Cooperative Agreement or Inter-Agency Partnership Agreement),

must be done in accordance with the Grantee’s Affirmative Fair Housing Marketing Plan (HUD-92243-PRA)

and all HUD Fair Housing and Equal Opportunity requirements. The purpose of the Plan and requirements is to

assure that Eligible Families in the same housing market area have an equal opportunity to apply and be

selected for an Assisted Unit regardless of their race, color, national origin, religion, sex, disability or familial

status.

(b) Management and maintenance. The Owner is responsible for all management functions, including

screening of Eligible Applicants in accordance with the Grantee approved tenant selection plan, reexamination

and verification of family income and composition, determination of family rent (total tenant payment, tenant

rent and utility reimbursement), collection of rent, termination of tenancy and eviction, and performance of all

repair and maintenance functions (including ordinary and extraordinary maintenance), and replacement of

capital items. All functions must be performed in accordance with applicable nondiscrimination and equal

opportunity requirements. Owner has tenant selection responsibilities apart from screening only as provided in

the Inter-Agency Agreement.

(c) Contracting for services. The Owner may contract with a private or public entity (except the Grantee) for

performance of the services or duties required in paragraphs (a) and (b) of this section. However, such an

arrangement does not relieve the Owner of responsibility for these services and duties.

(d) Submission of financial and operating statements. The Grantee shall establish control measures with the

Owner to meet the Grantee’s financial requirements of submitting audited annual financial statements that

comply with the requirements of OMB Circular Super Circular.

(e) Use of project funds. Rental Assistance Payments must be used for the benefit of the Assisted

Units.

§ PRA.403 Selection and Admission of Eligible Tenants.

(a) Application. The Owner must accept referrals of Eligible Applicants from the Grantee or their designee for

determining eligibility with the Owner’s Grantee-approved tenant selection plan. Upon request of the

Grantee or HUD, the Owner must furnish copies of all applications to HUD and/or the Grantee.

(b) Determination of eligibility and selection of Eligible Tenants. The Owner is responsible for:

(1) obtaining and verifying information related to Social Security Numbers of Eligible Family members in

accordance with 24 CFR part 5, subpart B. Owner shall refer to Handbook 4350.3 REV-1, chapters 3-3,

B. and C., 3-9, and 3-11, and 3-31 for further guidance;

(2) obtaining and verifying income through the use of Enterprise Income Verification (EIV), pursuant to 24

C.F.R. 5.233(a)(2). Owner shall refer to Handbook 4350.3 REV-1, chapter 3-30 for further guidance;

17

(3) obtaining and verifying information related to income eligibility of Eligible Families in Assisted Units in

accordance with 24 CFR part 5, subpart F. Owner shall refer to Handbook 4350.3 REV-1, chapter 3-30

for further guidance;

(4) preventing crime in the Assisted Units, including the denial of admission to persons engaged in criminal

activity or has certain criminal histories, in accordance with 24 CFR part 5, subpart H. Owner shall

refer to Handbook 4350.3 REV-1, chapter 4-27, E. for further guidance.

(5) complying with protections for victims of domestic violence, dating violence, sexual assault, or stalking,

pursuant to 24 CFR part 5, subpart L; and

(6) complying with all other applicable requirements, including but not limited to the RAC, Project Rental

Assistance Program Guidelines, and any other HUD administrative requirements.

(c) If the Owner determines that an applicant is ineligible on the basis of income or family composition, or

because of failure to meet the disclosure and verification requirements for Social Security Numbers (as

provided by 24 CFR part 5), or because of failure by an applicant to sign and submit consent forms for the

obtaining of wage and claim information from State Wage Information Collection Agencies (as provided by 24

CFR parts 5), or that the Owner is not selecting the applicant for other reasons, the Owner will promptly notify

the applicant and copy the Grantee in writing of the determination and its reasons, and that the applicant has the

right to meet with the Owner (or Owner’s designee) and has the right to request a reasonable accommodation.

The applicant may also exercise other rights if the applicant believes that he or she is being discriminated

against on the basis of race, color, national origin, religion, sex, disability or familial status. Records on

applicants and approved Eligible Families, which provide racial, ethnic, gender and place of previous residency

data required by HUD, must be maintained and retained for three years. Owner shall refer to Handbook 4350.3

REV-1, chapter 4-9 for further guidance on rejecting applicants and denial of rental assistance.

§ PRA.404 Overcrowded and Under Occupied Units.

If the Owner determines that because of change in family size an Assisted Unit is smaller than appropriate for

the eligible family to which it is leased, or that the unit is larger than appropriate, the Owner shall refer to the

Grantee’s written policies regarding family size, unit transfers and waitlist management. Rental Assistance

Payments with respect to the assisted unit will not be reduced or terminated until the eligible family has been

transferred to an appropriate size assisted unit. The Grantee should be notified of any changes in family size.

§ PRA.405 Uniform Physical Conditions Standards.

Owners of Eligible Multifamily Properties with regard to the Assisted Units and related facilities shall comply

with the Physical Condition Standards and Inspection Requirements of 24 CFR part 5, Subpart G, including any

changes in the regulation and related Directives. In addition, the Owner shall comply with HUD’s Physical

Condition Standards of Multifamily Properties of 24 CFR part 200, Subpart P, including any changes in the

regulation and related Directives.

§ PRA.406 Reviews During Management Period.

(a) Prior to occupancy of any Assisted Unit by an Eligible Family, the Eligible Family or their representative

(b) must be given the opportunity to be present for the move-in unit inspection. The inspection of the Assisted

Unit would be completed by both the Owner and the Eligible Family and both shall certify, on a form

prescribed or approved by the Grantee, that they have inspected the Assisted Unit and have determined it to be

Decent, Safe, and Sanitary in accordance with the criteria provided in the form. The Owner shall keep a copy of

this inspection and make part of the lease as an attachment to the lease. If the Eligible Family waives the right

to this inspection, a form prescribed or approved by the Grantee would be signed by the Eligible Family

indicating they have waived this right.

(c) The Owner shall perform unit inspections of the Assisted Units on at least an annual basis to determine

whether the appliances and equipment in the unit are functioning properly and to access whether a component

18

needs to be repaired or replaced. This will ensure that the Owner is meeting its obligation to maintain the

Assisted Units in Decent, Safe, and Sanitary condition.

(d) In addition to annual Owner inspections described in paragraph b above, after the effective date of the RAC,

a physical inspection pursuant to Uniform Physical Condition Standards (UPCS) must also be performed of the

Assisted Units and related facilities at a frequency that conforms to the property’s other existing federal or state

housing programs, but at least every 3 years, and at such other times as may be necessary. If multiple federal or

state housing programs are layered at the property, the frequency of the physical inspection shall be determined

by the most stringent UPCS standard, with a minimum of every 3 years.

(e) In addition:

(1) HUD may review the Grantee’s records as related to the RAC at least annually to determine whether the

Grantee is in compliance with the RAC;

(2) HUD may independently inspect project operations and Assisted Units at any time with reasonable

notice prior to inspection; and

(3) Equal Opportunity reviews may be conducted by HUD at any time.

§ PRA.407 Barrier Free/Accessibility Requirements for Units, Buildings, and Facilities, Including Public

and Common Use Areas.

Owners must meet accessibility requirements of Section 504 of the Rehabilitation Act of 1973 and

implementing regulations at 24 CFR part 8 and as applicable, Title III of the Americans with Disabilities Act

and implementing regulations at 28 CFR part 36. Covered multifamily dwellings as defined in 24 CFR part 100

must also meet the design and construction requirements of the Fair Housing Act. 24 CFR part 100. However,

Assisted Units can consist of a mix of accessible units for those persons with physical disabilities and non-

accessible units for those persons without physical disabilities.

§ PRA.408 Compliance with Fair Housing and Civil Rights Laws Owners must comply with all applicable fair housing and civil rights requirements in 24 CFR 5.105(a), including,

but not limited to, the Fair Housing Act; Title VI of the Civil Rights Act of 1964; Section 504 of the Rehabilitation

Act of 1973; Title III of the Americans with Disabilities Act; and Section 109 of the Housing and Community

Development Act of 1974. Owners must also comply with HUD’s Equal Access to Housing in HUD Programs

Regardless of Sexual Orientation or Gender Identity requirements. See HUD’s Equal Access rules at 24 C.F.R. §§

5.100, 5.105(a)(2), 5.403 and HUD’s final rule published in the Federal Register at 77 Fed. Reg. 5662, “Equal

Access to Housing in HUD Programs Regardless of Sexual Orientation or Gender Identity.”

If the Owner is in a state or jurisdiction that has also passed a law or laws proscribing discrimination in housing

based upon sexual orientation or gender identity, or a law or laws proscribing discrimination in housing based on

lawful source of income, the Owner must comply with those laws of the states or localities in which the programs or

activities are conducted.

§ PRA.409 Tenant Organization Rights Owner shall not impede the reasonable efforts of tenants of the Assisted Units to organize pursuant to 24 CFR part 245, or any successor regulations of 24 CFR part 245, or unreasonably withhold the use of any community room or other available space appropriate for meetings which is part of the mortgaged property when requested by: (i) a resident tenant organization in connection with the representational purposes of the organization; or (ii) tenants seeking to organize or to consider collectively any matter pertaining to the operation of the mortgaged property.

§ PRA.410 Effective Communications

Owners must ensure that all communications are provided in a manner that is effective for persons with hearing,

visual, and other communications-related disabilities consistent with Section 504 of the Rehabilitation Act of

1973 (see 24 CFR § 8.6) and, as applicable, the Americans with Disabilities Act.

19

§ PRA.411 Executive Order 13166 Executive Order 13166, “Improving Access to Services for Persons with Limited English Proficiency (LEP),” seeks

to improve access to federally assisted programs and activities for individuals who, as a result of national origin, are

limited in their English proficiency. Owners shall take reasonable steps to ensure meaningful access to their

programs and activities to LEP individuals.

S. 811 PRA Budget - Exhibit 6 OHIO - 4-9-15 - st

Trended-OCAF (or other approved) 1.70%

Total

1 2 3 4 5 6 7 8

Fiscal years end 9/30 FY 16 FY 17 FY 18 FY 19 FY 20 FY21 FY 22 FY 23

Number of units under RAC

This period-initial RAC 180 200 70 35 0 0 0 0 485 508 # units in application

Cumulative (under contract this period) 180 380 450 485 485 305 105 35 23 4.53%

Month Year

Rent Contract rent 568$ 6,816$ 6,932$ 7,050$ 7,170$ 7,291$ 7,415$ 7,541$ 7,670$

50 % AMI (calculate blend)

tenant portion (no trend) 216$ 2,586$ 2,586$ 2,586$ 2,586$ 2,586$ 2,586$ 2,586$ 2,586$

HUD Rental Assistance PUPY 4,230$ 4,346$ 4,464$ 4,584$ 4,705$ 4,829$ 4,955$ 5,084$

Estiimated Annual 811 PRA amount 761,400$ 1,651,431$ 2,008,671$ 2,223,026$ 2,282,139$ 1,472,966$ 520,323$ 177,928$ 11,097,885$ Estimated Rental Assistance

887,831$ Administrative costs calculated at 8%

11,985,716$ Rental Assistance plus Administrive

11,991,399$ Amount in application/award

OMB Approval No. 2502-0608 (exp. 02/28/2017)

Page 1 of 2 form HUD-92240-PRA (03/2014)

Exhibit 7 of the Cooperative Agreement

Part I of the

Agreement to Enter into a Section 811 Rental Assistance Contract For use under Section 811 of the National Affordable

Housing Act

PRA Project No.: 811 PRA Contract Number: FHA Project No. (if applicable): This Agreement to Enter into a Section 811 Rental Assistance Contract (Agreement) is entered into between the ____________________________________ (Grantee) and ____________________________________________ __________________________________________________________________________________________________

(Owner). The Owner proposes to complete a housing project or commit an existing housing project, as described in the

approved Application. Upon the acceptable completion of the project, or start-up of the Section 811 Project Rental Assistance

(PRA) Program, the Owner and Grantee will enter into a Section 811 Rental Assistance Contract (Contract) for the purpose of

making assistance payments to enable eligible Very Low-Income Households (Households) to occupy units in the project.

1.1 Significant Dates, Contents, and Scope of Agreement.

(a) Effective Date of Agreement:(mm/dd/yyyy) _______________________.

(b) Contents of Agreement. This Agreement consists of Part I, Part II, and the following exhibits: (1) Exhibit A: Rental Assistance Contract, Part I and II (HUD-92235-PRA and HUD-92237-PRA) to be executed upon

acceptable completion of the project or start-up of the Section 811 PRA Program. (2) Exhibit B: The schedule of Davis-Bacon wage rates, if applicable.

(3) Additional Exhibits: Specify additional exhibits, if any. If none, insert "None."

(c) Scope of Agreement. This Agreement, including the exhibits, whether attached or incorporated by reference,

comprises the entire agreement between the Owner and Grantee with respect to the matters contained in it. Neither

party is bound by any representations or agreements of any kind except as contained in this Agreement, any applicable

regulations, and agreements entered into in writing by the parties which are consistent with this Agreement. Nothing

contained in this Agreement shall create of affect any relationship between Grantee and any contractors or

subcontractors employed by the Owner in the completion of the project.

1.2 Grantee Assurance. The approval of this Agreement by Grantee is an assurance by the Grantee to the Owner that: (a) The faith of the Grantee is solemnly pledged to the payment of rental assistance payments pursuant to the Contract,

and (b) HUD has obligated funds for these payments.

Grantee Owner

Signature Signature

Name Name

Official Title Official Title

Date (mm/dd/yyyy) Date (mm/dd/yyyy)

Page 2 of 2 form HUD-92240-PRA (03/2014)

Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C. 1001, 1010, 1012; 31 U.S.C. 3729, 3802)

Public reporting burden for this collection of information is estimated to average 30 minutes per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. HUD may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number. This information collection is necessary to ensure that viable projects are developed. It is important to obtain information from applicants to assist HUD in determining if nonprofit organizations initially funded continue to have the financial and administrative capacity needed to develop a project and that the project design meets the needs of the residents. The Department will use this information to determine if the project meets statutory requirements with respect to the development and operation of the project, as well as ensuring the continued marketability of the projects. This information is required in order to obtain benefits. This information is considered non-sensitive and no assurance of confidentiality is provided.

OMB Approval No. 2502-0608 (exp. 02/28/2017)

Exhibit 8 of the Cooperative Agreement

Page 1 of 11 form HUD-92235-PRA (03/2014)

Part I of the Rental Assistance Contract

Section 811 Project Rental Assistance (PRA)

U.S. Department of Housing and Urban Development

Office of Housing Federal Housing Commissioner

PRA Project Number:

811 PRA Contract Number: FHA Project Number (if applicable):

This Rental Assistance Contract (RAC) is entered into by and between ___________________________________(Grantee), and _______________________________________________ (Owner Legal Name) for rental assisted units at _______________________________________________________ (Project Name). Statutory and Administrative Authority. Section 811 of the Cranston-Gonzalez National Affordable Housing Act of 1990, 42.U.S.C. 8013, as amended by the Frank Melville Supportive Housing Investment Act of 2010, Pub. L. No. 111-374; the Department of Housing and Urban Development Act, 42 U.S.C. 3531, et seq, and pursuant to the applicable HUD administrative and regulatory requirements. Purpose. The purpose of this Contract is to provide Rental Assistance Payments on behalf of Eligible Families leasing Decent, Safe and Sanitary Assisted Units from the Owner.

1.1 Significant Dates and Other Items; Contents and Scope of Contract.

(a) Effective Date of Contract:_________________________________________________________________,

(b) Fiscal Year. The ending date of each Fiscal Year shall be _________________________________________. ([Insert March 31, June 30, September 30, or December 31, as approved by HUD.) The Fiscal Year for the project shall be the 12-month period ending on this date. However, the first Fiscal Year for the project is the period beginning with the effective date of the Contract and ending on the last day of the Fiscal Year which is not less than 12 months after the effective date. If the first Fiscal Year exceeds 12 months, the maximum total annual rental assistance payment in section 1.1(c) will be adjusted by the addition of the pro rata amount applicable to the period of operation in excess of 12 months.

(c) Maximum Annual Contract Commitment. The maximum annual amount of the commitment for Rental Assistance Payments under this Contract, as identified in Exhibit 1.

(d) Project Address/Description. Include the projects street address, city, county, state and zip code, block and lot number (if known), and any other information necessary to clearly designate the covered project:

(e) Statement of Services, Maintenance and Utilities Provided by the Owner:

(1) Services and Maintenance:

(2) Equipment:

(3) Utilities:

Page 2 of 11 form HUD-92235-PRA (03/2014)

(4) Other:

(f) Contents of Contract. This Contract consists of Part I, Part II and the following Exhibits:

Exhibit 1: Schedule of Assisted Units and Contract Rents. The schedule showing the number of units by size (Contract Units) and their applicable rents (Contract Rents).

Exhibit 2: iREMS Data Record Exhibit 3: Grantee Affirmative Fair Housing Marketing Plan, HUD-92243-PRA Exhibit 4: Use Agreement, HUD-92238-PRA Exhibit 5: Lease, HUD-92236-PRA Exhibit 6: Definitions Exhibit 7. Program Guidelines

Additional exhibits (Specify additional exhibits, if any, such as Special Conditions for Acceptance. If none, insert “None”):

(g) Scope of Contract. This Contract, including the Exhibits, whether attached or incorporated by reference, comprises the entire agreement between the Owner and the Grantee with respect to the matters contained in it. Neither party is bound by any representations or agreements of any kind except as contained in this Contract, any applicable regulations, and agreements entered into in writing by the parties which are not inconsistent with this Contract.

1.2 Term of Contract, Obligation to Operate Project for Full Term.

(a) Term of Contract. The term of this Contract for any unit shall be ______ years. (Note: Minimum contract term is 20 years).

(b) Obligation to Operate Project for Full Term. The Owner agrees to continue operation of the Assisted Units within the

project in accordance with this Contract for the full term specified in paragraph (a).

1.3 Grantee Assurance.

(a) Grantee has or will receive funds from HUD, pursuant to Section 811 of the Cranston-Gonzalez National Affordable Housing Act of 1990, as amended, and subject to appropriations, will provide Rental Assistance Payments for the Assisted Units.

(b) Consistent with the Cooperative Agreement between HUD and the Grantee, Grantee shall provide Rental Assistance

Payments for Assisted Units to the Eligible Multifamily Owner, as identified under this Contract. 1.4 No Recourse Provision.

(a) In the event HUD cancels the Cooperative Agreement with the Grantee or the Grantee cancels the Rental Assistance Contract in accordance with the provisions of the RAC, the Owner agrees that it shall have no financial or legal recourse against the Grantee.

Warning: 18 U.S.C. 1001 provides, among other things, that whoever knowingly and willfully makes or uses a document or writing containing any false, fictitious, or fraudulent statement or entry, in any matter within the jurisdiction of any department or agency of the United States, shall be fined not more than $10,000 or imprisoned for not more than five years, or both.

Page 3 of 11 form HUD-92235-PRA (03/2014)

Signature Page

Name of Owner (Print)

_____________________________________________________________________________________________

_____________________________________________________________________________________________

By: ____________________________________________________________________________________________ Signature of authorized representative Name (Print) ____________________________________________________________________________________ Official Title (Print) ________________________________________________________________________________ Date: _________________________________________

Grantee

By: ____________________________________________________________________________________________ Signature of authorized representative Name (Print) ____________________________________________________________________________________ Official Title (Print) ________________________________________________________________________________ Date: _________________________________________

Page 4 of 11 form HUD-92235-PRA (03/2014)

Exhibit 1 Schedule of Assisted Units and Contract Rents

1

Bedroom Type

Number of Assisted Units

Contract Rent

Utility Allowance

Gross Rent

Maximum Annual Contract Commitment

(Number of Assisted Units x Gross Rent)

Total Maximum Annual Contract Commitment

2: _________________

Total Number of Assisted Units:_________________

Total Number of Non-Assisted Units Restricted to Persons with Disabilities:_________________

Expiration Date of the Unit Restriction above, if applicable:_________________

Total Number of Units at the Property (Assisted + Non-Assisted): _________________

Percent of Assisted Units and other Units Restricted to Persons with Disabilities at the Property 3: _________________

1

This Exhibit must be completed and attached to the Contract at the time the Agreement is executed. It may, however, be amended in accordance with program rules.. 2

The Total Maximum Annual Contract Commitment will amend as rent increases occur in subsequent years or as other contract

adjustments are made. To calculate the adjusted amount, refer to the Number of Assisted Units and Gross Rent identified on the rent schedule (Form HUD-92458).

3 The percentage of Assisted Units AND any other units restricted to people with disabilities MUST NOT exceed 25% of Total Number of Units.

Instructions: This signature box should only be signed by the Owner and Grantee if the schedule of units needs an amendment.

This Exhibit was amended on _______________________ (date) by ___________________________________ (Legal Name of Owner) and _________________________________________ (Grantee) to be EFFECTIVE on _______________________________. Signatures of Authorized Representatives (Sign and Print):

Owner Signature: ____________________________________________ Print Name: ______________________________________

Grantee Signature: ___________________________________________ Print Name: ______________________________________

Page 5 of 11 form HUD-92235-PRA (03/2014)

Exhibit 2

This Exhibit shows the additional fields that will be inputted in the project’s iREMS record.

I. Owner Information.

a. Owner Entity TIN #:______________________________________________________

b. Owner Entity DUNS #: __________________________________________________

c. Owner Legal Structure (e.g., Limited Partnership):______________________________

d. Mortgagor Type (e.g., Non-Profit, Profit Motivated):_____________________________

e. Owner Contact Information:

i. Name of Contact Individual: ________________________________________

ii. Mailing Address: _________________________________________________

iii. Phone: _________________________________________________________

iv. Fax: ___________________________________________________________

v. Email: __________________________________________________________

II. Management Agent Information.

a. Management Agent Legal Name: ___________________________________________

b. Management Agent Address: ______________________________________________

______________________________________________________________________

c. Management Agent TIN #:_________________________________________________

d. Management Agent Effective Date:__________________________________________

e. Management Agent Certification: Start Date End Date

Open Ended Certification Yes No

f. Management Agent Contact Information:

i. Name of Contact Individual: _________________________________________

ii. Mailing Address: __________________________________________________

iii. Phone: __________________________________________________________

iv. Fax: ____________________________________________________________

v. Email: ___________________________________________________________

III. Property Information.

a. Building Type:

Row Townhouse Detached Semi-Detached

Mid-Rise Walk-up/Garden High-Rise/Elevator

b. Building Count (enter numeric value): ________________________________________

Page 6 of 11 form HUD-92235-PRA (03/2014)

c. Unit Types

No. Unit Types One BR Two BR Three BR Four BR 5 BR

Not accessible

Accessible

d. Site Manager Contact Information:

i. Name of Contact Individual: _________________________________________

ii. Mailing Address: __________________________________________________

iii. Phone: __________________________________________________________

iv. Fax: ____________________________________________________________

v. Email: ___________________________________________________________

Page 7 of 11 form HUD-92235-PRA (03/2014)

Exhibit 3

Grantee Affirmative Fair Housing Marketing Plan

Page 8 of 11 form HUD-92235-PRA (03/2014)

Exhibit 4

Executed Use Agreement

Page 9 of 11 form HUD-92235-PRA (03/2014)

Exhibit 5

Lease

Page 10 of 11 form HUD-92235-PRA (03/2014)

Exhibit 6

Definitions

Page 11 of 11 form HUD-92235-PRA (03/2014)

Exhibit 7

Program Guidelines

OMB Approval No. 2502-0607 (exp. 02/28/2017)

Exhibit 9 of the Cooperative Agreement

Page 1 of 16

form HUD-92237-PRA (03/2014)

Part II of the Rental Assistance Contract

Section 811 Project Rental Assistance (PRA)

U.S. Department of Housing and Urban Development

Office of Housing Federal Housing Commissioner

PRA Project Number:

811 PRA Contract Number: FHA Project Number (if applicable):

2.1 OWNER'S RESPONSIBILITIES AND OWNER’S WARRANTIES.

(a) Owner Responsibilities. The owner is responsible for:

(1) Performing all management and rental functions for the contract units.

(2) Enforcing tenant obligations under the lease.

(3) Paying for utilities and housing services (unless paid by the family under the lease).

(4) Collecting from the tenant:

(i) Security Deposit, if applicable.

(ii) The tenant rent.

(iii) Any charge for unit damage by the family allowed by state and federal law.

(b) Owner Warranties.

(1) Legal Capacity. The Owner warrants that it has the legal right to execute this Contract and to lease Assisted Units

covered by this Contract.

(2) Completion of Work. The Owner warrants that the project as described in section 1.1 is Decent, Safe and Sanitary

and, if applicable, that the Assisted Units comply with the terms and conditions of the Agreement to Enter into the

Rental Assistance Contract.

2.2 FAMILIES TO BE HOUSED; GRANTEE ASSISTANCE.

(a) Families to Be Housed. The Assisted Units are to be leased by Eligible Families solely as private dwellings and as

their principal place of residence. (See also section 2.8.) Families to be housed must be consistent with the Grantee’s

Cooperative Agreement, including Grantee’s Program Description (as contained in Exhibit 4 of the Cooperative

Agreement), and Grantee’s Inter-Agency Partnership Agreement (Exhibit 3 of the Cooperative Agreement).

(b) Grantee Assistance.

(1) The Grantee agrees to make Rental Assistance Payments on behalf of Eligible Families for the Assisted Units, to

enable the Eligible Families to lease Decent, Safe, and Sanitary housing pursuant to Section 811 of the Cranston-

Page 2 of 16 form HUD-92237-PRA (03/2014)

Gonzalez National Affordable Housing Act, 42 U.S.C. 8013, as amended by the Frank Melville Supportive Housing

Investment Act of 2010, Pub. L. No. 111-374 and the applicable HUD administrative and regulatory requirements.

(2) If there is a Utility Allowance and if the Utility Allowance exceeds the total Eligible Family contribution, the Owner

shall pay the Eligible Family or the appropriate entity the amount of the excess. The Grantee will pay funds to the

Owner in trust solely for the purpose of making this payment. Any pledge by the Owner of payments properly

payable under this Contract shall not be construed to include payments covered by paragraph (b)(2) of section

2.2.

2.3 MAXIMUM HOUSING ASSISTANCE COMMITMENT; PROJECT ACCOUNT.

(a) Maximum Annual Contract Commitment. The Grantee shall not make any Rental Assistance Payments in

excess of the amount identified in section 1.1(c) and Exhibit 1, Part I of the RAC, unless Grantee, at its discretion,

approves Owner’s request to adjust the amount of Rental Assistance Payments in cases where the Rental

Assistance Payments are inadequate to provide for reasonable operating costs for the Assisted Units.

The Grantee may reduce the amount identified in section 1.1(c) where there is a reduction in the number of

Assisted Units, in the Contract Rents or pursuant to any other provision of this Contract.

2.4 RENTAL ASSISTANCE PAYMENTS TO OWNERS.

(a) Rental Assistance Payments on Behalf of Families.

(1) Rental Assistance Payments shall be paid to the Owner for Assisted Units under lease for occupancy by Eligible

Families in accordance with the Contract as attached in Exhibit 1, Part I of the RAC. The Rental Assistance

Payments will cover the difference between the Contract Rent and that portion of the rent payable by the Eligible

Family as determined in accordance 24 C.F.R. Part 5 and other applicable administrative and regulatory

requirements.

(2) The amount of Rental Assistance Payments payable on behalf of the Eligible Family and the amount of rent

payable by the Eligible Family shall be subject to change by reason of changes in Eligible Family Income, Eligible

Family composition, or pursuant to any HUD regulations or administrative guidance related to the Assisted Units;

or by reason of a change in any applicable Utility Allowance, as approved or required by the Grantee. Any such

change shall be effective as of the date stated in a notification of the change to the Eligible Family, which need not

be at the end of the Lease Term.

(b) Vacancies During Rent-Up. Grantees can determine whether to include payment of vacancies in its Project Rental

Assistance program. If the Grantee decides to provide vacancy payments, for each Assisted Unit that is not leased as

of the effective date of this contract, the Owner is entitled to vacancy payments that may not exceed 80 percent of the

Contract Rent for up to 60 days of vacancy, provided that the: (1) Grantee commences and performs appropriate

feasible actions to fill the vacancy, consistent with Grantee’s PRA program and otherwise complied with section 2.2 of

the Agreement, and (2) the Owner has not rejected any eligible applicants, except for good cause acceptable to the

Grantee.

(c) Vacancies after Rent-Up. If an Eligible Family vacates an Assisted Unit and the Grantee program includes vacancy

payments, the Owner is entitled to Rental Assistance Payments (except as provided in paragraph (d) of this section)

that may not exceed 80 percent of the Contract Rent for up to 60 days of vacancy if the Owner:

(1) Certifies that it did not cause the vacancy by violating the lease, the Contract or any applicable law;

Page 3 of 16 form HUD-92237-PRA (03/2014)

(2) Notified the Grantee of the vacancy or prospective vacancy and the reasons for it immediately upon learning of the

vacancy or prospective vacancy;

(3) Has fulfilled and continues to fulfill the requirements under this Contract; and

(i) Commence and perform appropriate feasible actions to fill the vacancy, consistent with the Grantee’s PRA

program; and

(ii) Has not rejected any eligible applicant, except for good cause acceptable to the Grantee.

(4) Certifies that any eviction of an Eligible Family resulting in a vacancy was carried out in compliance with section

2.9.

(d) Vacancies for Longer than 60 Days. If an Assisted Unit continues to be vacant for more than 60 consecutive days

either during rent-up or after rent-up the Owner shall not be entitled to any additional payments under 2.4(b)-(c).

Grantee and Owner shall comply with any administrative requirements imposed by HUD as related to vacancies for

the Section 811 Project Rental Assistance program.

(e) Grantee Not Obligated for the Eligible Family’s Rent. The Grantee has not assumed any obligation for the amount

of rent payable by any Eligible Family or the satisfaction of any claim by the Owner against any Eligible Family other

than in accordance with section 2.4 of this Contract. The financial obligation of the Grantees is limited to making

Rental Assistance Payments on behalf of Eligible Families in accordance with this Contract.

(f) Owner's Monthly Requests for Payments.

(1) The Owner shall submit monthly requests to the Grantee or as directed by the Grantee for Rental Assistance

Payments. Each request shall set forth: (i) the name of each Eligible Family and the address and/or number of the

unit leased by the Eligible Family; (ii) the address and/or the number of each unit, if any, not leased to Families for

which the Owner is claiming payments; (iii) the Contract Rent as set forth in Exhibit 1, Part I of the RAC for each

unit for which the Owner is claiming payments the Contract Rent as set forth for each unit for which the Owner is

claiming payments as listed in (1) Exhibit 1, Part I of the RAC for the initial years, and (2) the Grantee approved

Rent Schedule (form HUD-92458) for subsequent years; (iv) the amount of rent payable by the Eligible Family

leasing the unit; and (v) the total amount of Rental Assistance Payments requested by the Owner.

(2) Each of the Owner's monthly requests shall contain a certification by it that to the best of its knowledge and belief

(i) the Assisted Units are in Decent, Safe, and Sanitary condition, (ii) all the other facts and data on which the

request for funds is based are true and correct, (iii) the amount requested has been calculated in accordance with

the provisions of this Contract and is payable under the Contract, (iv) none of the amount claimed has been

previously claimed or paid under this Contract, and (v) the Owner has not received and will not receive any

payments or other consideration from the Eligible Family, the Grantee, HUD, or any other public or private source

for the Assisted Unit beyond that authorized in this Contract and the lease.

(3) If the Owner has received an excessive payment, the Grantee, in addition to any other rights to recovery, may

deduct the amount from any subsequent payment or payments.

(4) The Owner's monthly requests for Rental Assistance Payments are subject to penalty under 18 U.S.C. 1001,

which provides, among other things, that whoever knowingly and willfully makes or uses a document or writing

containing any false, fictitious, or fraudulent statement or entry, in any matter within the jurisdiction of any

department or agency of the United States, shall be fined not more than $10,000 or imprisoned for not more than

five years, or both.

Page 4 of 16 form HUD-92237-PRA (03/2014)

2.5 MAINTENANCE, OPERATION AND INSPECTION.

(a) Maintenance and Operation. The Owner agrees to maintain and operate the Assisted Units and related facilities in a

Decent, Safe, and Sanitary condition in accordance with the requirements in 24 CFR part 5, subpart G including the

provision of all the services, maintenance and utilities set forth in section 1.1(e). The Owner also agrees to comply with

the lead-based paint regulations at 24 CFR Part 35. If the Grantee determines that the Owner is not meeting one or

more of these obligations, the Grantee shall have the right to take action under section 2.19(b).

(b) Inspection.

(1) Prior to occupancy of any Assisted Unit by an Eligible Family, the Owner and the Eligible Family must be given the

opportunity to be present for the move-in unit inspection. The inspection of the Assisted Unit would be completed

by both the Owner and the Eligible Family and both shall certify, on a form prescribed or approved by the Grantee,

that they have inspected the Assisted Unit and have determined it to be Decent, Safe, and Sanitary in accordance

with the criteria provided in the form. The Owner shall keep a copy of this inspection and make part of the lease as

an attachment to the lease. If the Eligible Family waives the right to this inspection, a form prescribed or approved

by the Grantee would be signed by the Eligible Family indicating they have waived this right.

(2) The Owner shall perform unit inspections of the Assisted Units on at least an annual basis to determine whether

the appliances and equipment in the unit are functioning properly and to access whether a component needs to be

repaired or replaced. This will ensure that the Owner is meeting its obligation to maintain the Assisted Units in

Decent, Safe, and Sanitary condition.

(3) In addition to annual Owner inspections described in 2.5(b)(2) above, a physical inspection pursuant to Uniform

Physical Condition Standards (UPCS) must also be performed of the Assisted Units and related facilities at a

frequency that conforms to the property’s other existing federal or state housing programs, but at least every 3

years, and at such other times as may be necessary. If multiple federal or state housing programs are layered at

the property, the frequency of the physical inspection shall be determined by the most stringent UPCS standard,

with a minimum of every 3 years.

(c) Units Not Decent, Safe, and Sanitary. If the Grantee notifies the Owner that it has failed to maintain an Assisted Unit

in a Decent, Safe, and Sanitary condition and the Owner fails to take corrective action within the time prescribed in the

notice, the Grantee may exercise any of its rights or remedies under the Contract, including reduction or suspension of

Rental Assistance Payments.

(d) Notification of Abatement. Any reduction or suspension of Rental Assistance Payments shall be effective as

provided in written notification to the Owner. The Owner shall promptly notify the Eligible Family of any such

abatement.

(e) Overcrowded and Underoccupied Units. Where the Grantee determines a unit is larger or smaller than appropriate

for an Eligible Family, the Owner agrees to correct the situation in accordance with PRA Program requirements and

the Grantee’s Tenant Selection Plan in effect at the time of the determination.

(f) Accessibility Requirements. The Owner agrees to maintain the Assisted Units and related facilities in compliance

with the following accessibility requirements as applicable at the time of construction or rehabilitation: HUD Uniform

Physical Condition Standards at 24 CFR 5.703, , section 504 of the Rehabilitation Act of 1973 as implemented by 24

CFR part 8, the design and construction requirements of the Fair Housing Act and HUD’s implementing regulations at

24 CFR part 100.

Page 5 of 16 form HUD-92237-PRA (03/2014)

2.6 FINANCIAL REQUIREMENTS.

(a) The Grantee is required to submit to HUD audited annual financial statements that comply with the requirements of

OMB Circular Super Circular. The Grantee shall establish control measures with the Owner to meet the Grantee’s

financial requirements. The Owner agrees to the Grantee’s control measures.

2.7 INITIAL RENTS; RENT ADJUSTMENTS; UTILITY ALLOWANCE.

(a) With respect to the initial rents, Grantee and Owner agrees that in no circumstance may the initial RAC rent level exceed the applicable Section 8 Fair Market Rent (FMR) level as determined by HUD, unless such rent level is substantiated by a market study that has been prepared in accordance with the requirements of a state housing agency, Chapter 9 of HUD’s Section 8 Renewal Guide or as approved by HUD. In cases where the initial RAC rent level exceeds applicable Fair Market Rent, Exhibit 1 shall identify how the initial rent settings were determined, as approved by HUD.

(b) Annual Adjustments.

(1) After initial rent setting made in the first year of the Contract, subsequent rents shall be adjusted annually based

on [CHECK ONE BOX ONLY]:

[ ] HUD’s Operating Cost Adjustment Factor (OCAF).

[ ] other operating cost index as has been adopted by the Grantee for purposes of subsidizing affordable

housing, as approved by HUD and as further described in Exhibit 2.

[ ] other means as may be approved by HUD, and as further described in Exhibit 2.

(2) Upon request from the Owner to the Grantee, Contract Rents will be adjusted on the anniversary date of the

Contract in accordance with this Contract. Within the first year of the Contract and with approval from HUD, the

Owner may request to align their Contract anniversary date with existing federal or state housing programs

layered at the property.

(3) Contract Rents may be adjusted upward or downward, as may be appropriate; however, in no case shall the

annual adjustment result in Contract Rents less than the Contract Rents on the effective date of the Contract.

(c) Funding of Adjustments. Rental Assistance Payments will be made in amounts commensurate with Contract Rent

adjustments under this section up to the maximum amount authorized under section 2.3(a) of this Contract.

(d) Overall Limitation.

Notwithstanding any other provision of this Contract, adjustments after Contract execution shall not result in higher rents

charged for Assisted Units as compared to the unassisted units, as determined by Grantee.

(e) Incorporation of Rent Adjustment. Any adjustment in Contract Rents shall be incorporated into a Rental Schedule

(form HUD-92458) establishing the effective date of the adjustment.

Page 6 of 16 form HUD-92237-PRA (03/2014)

(f) Utility Allowance.

(1) If there is a utility allowance, the utility analysis methodology shall be reviewed and if needed adjusted annually

based on [CHECK ONE BOX ONLY AND ATTACH UTILITY POLICY IN EXHIBIT 2]:

[ ] HUD Multifamily Housing Policy

[ ] Public Housing Authority Policy

[ ] Rural Housing Services (RHS) Policy

[ ] State or Local Housing Agency

[ ] Other means as may be approved by HUD, and as further described in Exhibit 2

2.8 LEASING OF UNITS.

(a) Compliance with Equal Opportunity Requirements. Projects shall be managed and in accordance with all

applicable EEO requirements.

(b) Security Deposits.

(1) The Owner may collect a security deposit from the family.

(2) The Owner must comply with HUD Security Deposit requirements, which may change from time to time, regarding

security deposits from a tenant.

(3) When the family moves out of the contract unit, the Owner, subject to State and local law, may use the security

deposit, including any interest on the deposit, in accordance with the lease, as reimbursement for any unpaid

tenant rent, damages to the unit or other amounts which the family owes under the lease. The Owner must give

the family a written list of all items charged against the security deposit and the amount of each item. After

deducting the amount used as reimbursement to the Owner, the Owner must promptly refund the full amount of

the balance to the family.

(4) If the security deposit is not sufficient to cover amounts the family owes under the lease, the Owner may seek to

collect the balance from the tenant.

(c) Eligibility, Selection and Admission of Families.

(1) The Owner shall be responsible for the screening of Eligible Families, in accordance with a grantee-approved

tenant selection plan, from among those referred to the Owner by Grantee or their designee. Additionally, Owner

shall be responsible for the determination of income eligibility of applicants, computation of the amount of Rental

Assistance Payments on behalf of each selected Eligible Family and of total Eligible Family contributions and

recordkeeping in accordance with applicable HUD regulations and requirements.

(2) The Owner shall not charge any Eligible Family any amount in excess of the total Eligible Family contribution.

Page 7 of 16 form HUD-92237-PRA (03/2014)

(3) The Owner must lease Assisted Units only to Eligible Families. The Owner must inform the Grantee or their

designee of a vacancy and hold the unit open for a reasonable period of time. If no Eligible Tenants are identified

within a reasonable period of time, as determined by the Grantee, the Owner may lease the unit to families which

are not eligible for the PRA Program; this household is not entitled to the benefit of the rental assistance. If the

number of occupied PRA Assisted Units at the property falls below the total number of units listed in Exhibit 1 of

Part I of the RAC, the Owner will designate the next available appropriate unit as an Assisted Unit until the total

number of occupied Assisted Units meets the total number listed in Exhibit 1 of Part I of the RAC.

(4) The Lease entered into between the Owner and the Eligible Family shall be on the form as prescribed by HUD.

(5) (i) The Owner shall make a reexamination of Eligible Family income, composition, and the extent of medical or

other unusual expenses incurred by the Eligible Family at least annually, and appropriate redeterminations

shall be made by the Owner of the amount of Eligible Family contribution and the amount of Rental Assistance

Payment, in accordance with applicable HUD regulations and requirements.

(ii) If an Eligible Family reports a change in income or other circumstances that would result in a

decrease/increase of total Eligible Family contribution between regularly scheduled reexaminations, the Owner,

upon receipt of verification of the change, must promptly make appropriate adjustments in the total Eligible

Family contribution.

(iii) An Eligible Family's eligibility for Rental Assistance Payments continues until the total Eligible Family

contribution equals the total housing expense for the unit it occupies. The termination of availability at this point

will not affect the Eligible Family's other rights under the lease nor preclude resumption of payments as a result

of later changes in income or other circumstances during the term of this Contract.

(6) The Owner shall maintain as confidential all information relating to PRA applicants and Eligible Families, the

disclosure of which would constitute an unwarranted invasion of personal privacy.

(d) Rent Redetermination after Adjustment in Utility Allowance. Consistent with section 2.7 and any HUD

administrative requirements related to Utility Allowance, Owner agrees to adjust the rents of assisted Eligible Families

in cases where there is a Utility Allowance adjustment.

(e) Processing of Applications and Complaints. The Owner shall process applications for admission, notifications to

applicants, and complaints by applicants in accordance with applicable Grantee requirements and shall maintain

records and furnish such copies or other information as may be required by HUD or the Grantee.

(f) Review: Incorrect Payments. In making Rental Assistance Payments to Owners, the Grantee will review the Owner's

determinations under this section. If as a result of reviews, audits or information received by the Grantee, it is

determined that the Owner has received improper or excessive Rental Assistance Payments, the Grantee shall have

the right to deduct the amount of such overpayments from any amounts otherwise due the Owner, or otherwise effect

recovery.

2.9 Termination of Tenancy or PRA Rental Assistance by the Owner.

The Owner agrees not to terminate any tenancy of or assistance on behalf of an assisted Eligible Family except in

accordance with the lease, all applicable HUD regulations and other requirements in effect at the time of the

termination, and any State and local law.

Page 8 of 16 form HUD-92237-PRA (03/2014)

2.10 NONDISCRIMINATION.

(a) General. The Owner shall not in the selection of Eligible Families, in the provision of services, or in any other manner,

discriminate against any person on the grounds of race, color, creed, religion, sex, handicap, familial status, or

national origin.

(b) The Fair Housing Act. The Owner shall comply with all requirements imposed by the Fair Housing Act, which

prohibits discrimination in the sale, rental, financing and advertising of housing on the basis of race, color, religion,

sex, handicap, familial status, or national origin, and any related rules and regulations.

(c) Title VI of the Civil Rights Act of 1964 and Executive Order 11063. The Owner shall comply with all requirements

imposed by Title VI of the Civil Rights Act of 1964, 42 U.S.C. 2000d. et seq.; the HUD Regulations issued thereunder,

24 CFR, Subtitle A, Part 1; the HUD requirements pursuant to these regulations; and Executive Order 11063 and any

regulations and requirements issued thereunder, to the end that, in accordance with that Act, Executive Order 11063,

and the regulations and requirements of HUD, no person in the United States shall, on the grounds of race, color,

creed, or national origin, be excluded from participation in, or be denied the benefits of, the Rental Assistance

Payments Program, or be otherwise subjected to discrimination. This provision is included pursuant to the regulations

of HUD, 24 CFR, Subtitle A, Part 1 issued under Title VI of the Civil Rights Act of 1964, HUD regulations issued

pursuant to Executive Order 11063 and the HUD requirements pursuant to the regulations. The obligation of the

Owner to comply therewith inures to the benefit of the United States of America, HUD, any of which shall be entitled to

invoke any remedies available by law to redress any breach or to compel compliance by the Owner.

(d) Section 504 of the Rehabilitation Act of 1973. The Owner shall comply with all the requirements imposed by section

504 of the Rehabilitation Act of 1973, as amended, and any related rules and regulations. Section 504 provides that

no qualified handicapped person shall, on the basis of handicap, be excluded from participation in, be denied the

benefits of, or otherwise be subjected to discrimination under any program or activity which receives or benefits from

Federal financial assistance. Accordingly, the Owner shall not discriminate against any qualified handicapped person

on the basis of handicap.

(e) Employees of Owner.

(1) In carrying out the obligations under this Contract, the Owner will not discriminate against any employee or

applicant for employment because of race, color, creed, religion, sex, handicap, familial status, or national origin.

The Owner will take affirmative action to ensure that applicants are employed, and that employees are treated

during employment, without regard to race, color, creed, religion, sex, handicap, familial status, or national origin.

Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer;

recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and

selection for training, including apprenticeship.

The Owner agrees to post in conspicuous places, available to employees and applicants for employment, notices to

be provided by HUD setting forth the provisions of this nondiscrimination clause. The Owner will in all solicitations or

advertisements for employees placed by or on behalf of the Owner state that all qualified applicants will receive

consideration for employment without regard to race, color, creed, religion, sex, handicap, familial status, or national

origin.

2.11 COOPERATION IN EQUAL OPPORTUNITY COMPLIANCE REVIEWS.

Page 9 of 16 form HUD-92237-PRA (03/2014)

The Owner and the Grantee agree to cooperate with HUD in the conducting of compliance reviews and complaint

investigations pursuant to or permitted by all applicable civil rights statutes, Executive Orders, and rules and

regulations.

2.12 FLOOD INSURANCE.

Flood insurance is required in areas designated by FEMA’s Flood Insurance Rate Maps as the 100-year floodplain. If

Flood insurance is required, the Owner agrees that the project will be covered, during its anticipated economic or useful

life, by flood insurance under the National Insurance Program in an amount at least equal to its development or project

cost (less estimated land cost) or to the maximum limit of coverage made available with respect to the particular type of

property under the National Flood Insurance Act of 1968, whichever is less.

2.13 CLEAN AIR ACT AND FEDERAL WATER POLLUTION CONTROL ACT.

In compliance with regulations issued by the Environmental Protection Agency (EPA), 40 CFR Part 15, pursuant to the

Clean Air Act, as amended ("Air Act"), 42 U.S.C. 7401, et seq., the Federal Water Pollution Control Act, as amended

("Water Act"), 33 U.S.C. 1251, et seq., and Executive Order 11738, the Owner agrees to:

(a) Not utilize any facility in the performance of this Contract or any nonexempt subcontractor which is listed on the

EPA List of Violating Facilities pursuant to section 15.20 of the regulations;

(b) Promptly notify the Grantee of the receipt of any communication from the EPA indicating that a facility to be

utilized for the Contract is under consideration to be listed on the EPA List of Violating Facilities;

(c) Comply with all the requirements of section 114 of the Air Act and section 308 of the Water Act relating to

inspection, monitoring, entry, reports, and information, as well as all other requirements specified in section 114

of the Air Act and section 308 of the Water Act, and all regulations and guidelines issued thereunder; and

(d) Include or cause to be included the provisions of this Contract in every nonexempt subcontract, and take such

action as HUD may direct as a means of enforcing such provisions.

2.14 REPORTS AND ACCESS TO PREMISES AND RECORDS.

(a) The Owner shall furnish any information and reports pertinent to this Contract as reasonably may be required from

time to time by HUD and the Grantee.

(b) The Owner shall permit HUD and the Grantee or any of their duly authorized representatives to have access to the

premises and, for the purpose of audit and examination, to have access to any books, documents, papers and records

of the Owner that are pertinent to compliance with this Contract, including the verification of information pertinent to

the Rental Assistance Payments.

2.15 DISPUTES.

Page 10 of 16 form HUD-92237-PRA (03/2014)

(a) Grantee’s determinations with respect to the Assisted Units which are consistent with this Agreement and any

applicable HUD requirements will generally not be overturned by HUD. Grantee and Owner are encouraged to

resolve disputes through negotiations and mediation, if necessary. However, in the event a dispute may lead to

potential default by either party resulting from an ambiguity under this Agreement, the Grantee and the Owner may

submit to the HUD a request for clarification of the contract term(s) or utilize an alternative dispute resolution process

agreed to by both parties and implemented consistent with this section of the RAC. Grantee and the Owner shall

explain in writing the underlying facts and the contract term(s) in dispute. HUD shall review inquiry and: (i) agree that

a contract term ambiguity exists and make a final determination on the matter; or (ii) conclude no contract term

ambiguity exists or conclude the dispute is outside the scope of HUD review and make no determination as to the

issue(s) presented.

(b) The decision of the HUD will not be reviewable unless, within 30 calendar days from the date of receipt of the HUD

determination, either party mails or otherwise furnishes to the Secretary of Housing and Urban Development a written

appeal with written justification. Both parties shall proceed diligently with the performance of the Contract and in

accordance with the decision of HUD pending resolution of the appeal.

2.16 INTEREST OF MEMBERS, OFFICERS, OR MEMBERS OF LOCAL GOVERNING BODY, OR OTHER PUBLIC

OFFICIALS:

(a) No person or entity in the following clauses shall have an interest, direct or indirect, in this Agreement or in any

proceeds or benefits arising from it, during his or her tenure or for one year thereafter.

(1) any member or officer of the Grantee, except where his or her interest is as a tenant;

(2) (i) any employee of the Grantee who formulates policy or influences decisions with respect to the PRA project;

(ii) any other employee of the Grantee, except where his or her interest is as a tenant;

(3) any member of the governing body or the executive officer of the locality (city or county) in which the project is

situated;

(4) any member of the governing body or executive officer of the locality (city or county) in which the Grantee was

activated;

(5) any other State or local public official (including State legislators), who exercise any functions or responsibilities

with respect to the PRA project;

(6) any Grantee, where any of its members, officers, or employees has a personal interest in the project (except an

employee who does not formulate policy or influence decisions with respect to the PRA project may have an

interest as a tenant).

(b) Members of the classes described in paragraph (a) who involuntarily acquire an interest in the PRA program or in a

PRA project, or who had acquired prior to the beginning of their tenure any such interest, must disclose any interest or

perspective interest to the Grantee and the HUD Headquarters and may, with appropriate justification, if consistent

with State law, apply through the Grantee for a waiver. The Grantee will review the waiver request and forward their

recommendation to HUD Headquarters.

(c) No person to whom a waiver is granted shall be permitted (in his or her capacity as member of a class described in

paragraph (a) to exercise responsibilities or functions with respect to an Agreement or a Contract executed, or to be

executed, on his or her behalf, or with respect to an Agreement or a Contract to which this person is a party.

(d) The provisions of paragraphs (a) through (c) of this section shall not apply to a utility service if the rates are fixed or

controlled by a governmental agency.

Page 11 of 16 form HUD-92237-PRA (03/2014)

2.17 INTEREST OF MEMBER OR DELEGATE TO CONGRESS.

No member of or delegate to the Congress of the United States of America or resident commissioner shall be

admitted to any share or part of this Contract or to any benefits which may arise from it.

2.18 ASSIGNMENT, SALE OR FORECLOSURE.

(a) The Owner agrees that it has not made and will not make any sale, assignment, or conveyance or transfer in any

fashion, of this Contract, without the prior written consent of Grantee which shall not be unreasonably withheld.

(b) The Owner and the party signing this Contract on behalf of the Owner represent that they have the authority of all of

the parties having ownership interests in the Owner to agree to this provision on their behalf and to bind them with

respect to it.

(c) Except where otherwise approved by Grantee, this Contract shall continue in effect and Rental Assistance Payments

will continue in accordance with the terms of the Contract in the event:

(1) Of assignment, sale, or other disposition of the project or this Contract,

(2) Of foreclosure, including foreclosure by HUD,

(3) Of assignment of the mortgage or deed in lieu of foreclosure,

(4) The Grantee takes over possession, operation or ownership,

2.19 DEFAULTS BY GRANTEE AND/OR OWNER.

(a) Rights of Owner if Grantee Defaults under Contract.

(1) Events of Default. The occurrence of any of the following events constitutes a default:

(i) If the Grantee fails to perform or observe any term or condition of this Contract;

(ii) If the Contract is held to be void, voidable, or ultra vires;

(iii) If the power or right of the Grantee to enter into the Contract is drawn into question in any legal proceeding.

(2) Owner Request for HUD Determination of Default. If the Owner believes that an event as specified in paragraph

(a)(1) has occurred, and the Owner is not in default, the Owner may, within 30 days of the initial occurrence of the

event:

(i) Notify HUD of the occurrence of the event;

(ii) Provide supporting evidence of the default and of the fact that the Owner is not in default; and

(iii) Request HUD to determine whether there has been a default.

(3) HUD Determination of Default and Curing of Default. HUD, after notice to the Grantee giving it a reasonable

opportunity to take corrective action, or to demonstrate that it is not in default, shall make a determination whether

the Grantee is in default and whether the Owner is not in default. If HUD determines that the Grantee is in default

and that the Owner is not, HUD shall take appropriate action to require the Grantee to cure the default. If

necessary for the prompt continuation of the project, HUD may assume the Grantee's rights and obligations under

the Contract. HUD may, subject to appropriations and its ability to recover funds from the Grantee, pay Rental

Assistance Payments with respect to the Assisted Units in accordance with this Contract until reassigned to

another Grantee or returned to the original Grantee under this Agreement. All rights and obligations of the Grantee

assumed by HUD will be returned to the same or another Grantee:

Page 12 of 16 form HUD-92237-PRA (03/2014)

(i) when HUD is satisfied that all defaults have been cured and that the Assisted Units will thereafter be

administered in accordance with all applicable requirements, or

(ii) when the Contract is at an end, whichever occurs sooner.

(4) Enforcement by Owner. The provisions of this paragraph (a) are made for the benefit of the Owner and the

Owner's other assignees, if any, who have been specifically approved by HUD prior to the assignment. These

provisions shall be enforceable by these parties against HUD by suit at law or in equity.

(b) Rights of Grantee and HUD if Owner Defaults under Contract.

(1) Events of Default. A default by the Owner under this Contract shall result if:

(i) The Owner has violated or failed to comply with any provision of, or obligation under, this Contract or of any

Lease, including failure to correct any deficiencies identified by the Grantee in connection with any inspection;

or

(ii) The Owner has asserted or demonstrated an intention not to perform some or all of its obligations under this

Contract or under any Lease.

(2) Grantee Determination of Default. Upon a determination by the Grantee that a default has occurred, the Grantee

shall notify the Owner, , of

(i) The nature of the default,

(ii) The actions required to be taken and the remedies to be applied on account of the default (including actions by

the Owner and/or the lender to cure the default), and

(iii) The time within which the Owner and/or the lender shall respond with a showing that all the required actions

have been taken.

(iv) If the Owner fails to respond or take action to the satisfaction of the Grantee, the Grantee shall have the

right to take corrective action to achieve compliance, in accordance with paragraph (b)(3), or to take other

corrective action to achieve compliance in its discretion, or as directed by HUD.

(3) Corrective Actions. Pursuant to paragraph (b)(2) of this section the Grantee, in its discretion , may take the

following corrective actions:

(i) Bring any action necessary to enforce any obligations of the Owner growing out of the project operation.

(ii) Apply to any court, State or Federal, for specific performance of this Contract, for an injunction against any

violation of the Contract or for such other relief as may be appropriate.

(iii) Reduce or suspend Rental Assistance Payments.

(iv) Recover any overpayments.

(4) HUD Rights.

(i) Notwithstanding any other provisions of this Contract, in the event HUD determines that the Owner is in default

of its obligations under the Contract, HUD shall notify Grantee, who shall take action on behalf of HUD. In the

event that the Grantee does not take appropriate action as determined by HUD, HUD shall have the right, after

notice to the Owner, the trustee, if any, and the Grantee giving them a reasonable opportunity to take

corrective action, to proceed in accordance with paragraph (b)(3).

(ii) In the event HUD takes any action under this section, the Owner and the Grantee hereby expressly agree to

recognize the rights of HUD under this Contract to the same extent as if the action(s) were taken by the

Grantee.

Page 13 of 16 form HUD-92237-PRA (03/2014)

(c) Remedies Not Exclusive and Non-Waiver of Remedies. The availability of any remedy under this Contract, shall

not preclude the exercise of any other remedy under this Contract or under any provisions of law, nor shall any action

taken in the exercise of any remedy be considered a waiver of any other rights or remedies. Failure to exercise any

right or remedy shall not constitute a waiver of the right to exercise that or any other right or remedy at any time.

2.20 LEGAL RELATIONSHIP.

The Owner is not the agent of the HUD. The RAC contract does not create or affect any relationship between HUD

and any lender to the owner or any suppliers, employees, contractors or subcontractors used by the owner in

connection with the implementation of the RAC contract.

Page 14 of 16 form HUD-92237-PRA (03/2014)

Exhibit 1: Initial Rent Setting Methodology, where applicable. [Exhibit 1 is not required if the initial RAC rent level does not exceed the applicable Section 8 Small Area Fair Market Rent or Fair Market Rent (FMR) level as determined by HUD.]

Page 15 of 16 form HUD-92237-PRA (03/2014)

Exhibit 2: Explanation of Rent Adjustments and/or attachment of Utility Allowance Policy Under

Section 2.7, where applicable.

Page 16 of 16 form HUD-92237-PRA (03/2014)

Exhibit 3 Addendum to RAC. As per Cooperative Agreement XI, the Grantee may include an addendum

to the RAC provided that the provisions of the addendum do not conflict with the Agreement.

OMB Approval No. 2502-0608

(exp. 02/28/2017)

Exhibit 10 of the Cooperative Agreement

Page 1 of 5

form HUD-92238-PRA (03/2014)

USE AGREEMENT For Projects Assisted Under the Section 811 Project Rental Assistance Program

This Agreement entered into this _____ day of _____, 20__ by and

between ____________________________ (herein called “Owner") and the

_______________________ (herein called “Grantee"), Witnesseth:

WHEREAS, HUD is directed, pursuant to Section 811 of the Cranston-Gonzalez National Affordable Housing Act (NAHA), as amended by the Frank Melville Supportive Housing Investment Act of 2010, Public Law 111 – 374, to establish the Section 811 Project Rental Assistance Program (“PRA”) to provide project-based rental assistance to persons with disabilities at eligible multifamily projects; and

WHEREAS, in consideration of the Grantee promise to provide

HUD funding to Owner, for the property known as________, located in City, State, more particularly described in the RAC or in a separate development legal description attached as an Exhibit to the Use Agreement, in accordance with HUD requirements related to the PRA Demo, or any successor program, Owner agrees to implement this Use Agreement.

NOW THEREFORE, the parties agree as follows:

Owner, for itself, its successors and assigns, covenants with the Grantee that the Owner will operate a predetermined number of Assisted Units in the Owner’s project in accordance with the Section 811 Project Rental Assistance Program, Rental Assistance Contract (RAC), and HUD PRA Demo requirements, including but not limited to any applicable HUD regulatory, administrative, and contractual requirements, for not less than the thirty years from the date of the Use Agreement. Accordingly, this Use Agreement shall remain in effect until _________________________ [insert expiration date],or until such time as the number of Assisted Units in the RAC has been reduced to zero as approve by the grantee. . Subject to the availability of appropriations and so long as Owner is in compliance with all HUD requirements, including but not limited to this Use Agreement, the Grantee shall provide to the Owner Rental Assistance Payments for units assisted by Section 811 of NAHA (Assisted Units). If

Page 2 of 5

form HUD-92238-PRA (03/2014)

Congress fails to appropriate funds adequate to meet the financial needs of the Assisted Units, HUD will not require the Grantee to enforce the Use Agreement covered under a RAC. Under such a circumstance, HUD will allow Grantee to continue to enforce or terminate the Use Agreement at the Grantee’s discretion.

In the event of a breach or a threatened breach of any of the above covenants and agreements by the Owner, Grantee or HUD shall be entitled to institute legal action to enforce performance and observance of such covenants and agreements and to enjoin any acts which violate such covenants and agreements. HUD may also seek an award of damages and/or other relief as may be appropriate.

Owner, for itself, its successors and assigns, hereby agrees and acknowledges that this Use Agreement shall be recorded in the appropriate land records. With respect to the eligibility requirements for the Assisted Units, Owner will comply with the RAC. Owner will comply with all other PRA Program, or successor program requirements as promulgated by HUD, as appropriate.

With respect to Assisted Units, Owner will comply with the provisions of any Federal, State or local law prohibiting discrimination in housing on the grounds of race, color, religion or creed, sex, handicap, familial status or national origin, including the Fair Housing Act of 1968, as amended.

The rent charged for Assisted Units shall not exceed the upper limit of the range shown for such type of unit on a rental schedule approved in writing by Grantee, and shall include the reasonable use of all utilities shown on rental schedule, Notwithstanding any other provision of this Agreement, adjustments after Contract execution shall not result in higher rents charged for Assisted Units as compared to the non-Assisted Units, as determined by Grantee. Any requests for rent adjustments to the Grantee by the Owner shall be consistent with the requirements of the Rental Assistance Contract and all other PRA Program or successor program requirements. Owner shall maintain the premises and equipment, appurtenant thereto,

Page 3 of 5

form HUD-92238-PRA (03/2014)

in good repair, safe and sanitary condition consistent with HUD requirements.

The books and accounts of the operations of the property shall be kept in accordance with the relevant HUD requirements related to the PRAProgram, or any successor program.

.

Owner further covenants and agrees that if Owner conveys title to the project prior to the Use Agreement’s expiration, Owner will prior to transfer of title: (1) confirm the purchaser has been approved by Grantee; the Grantee will ensure the purchaser will operate the project in such a way that it will remain an “Eligible Project” pursuant to 42 U.S.C 8013(b)(3)(C) and (2) require the purchaser to assume the obligations of this Use Agreement and the Rental Assistance Contract.

Owner shall provide to Grantee or HUD, promptly following receipt of a written request from HUD , copies of all business or any other documents regarding the Housing Project, so that Grantee or HUD may evaluate Owner's compliance with the terms of this Agreement. In addition, Owner shall permit Grantee or HUD following notice from Grantee or HUD, to examine the originals of all such documents, at the Project's office during regular business hours.

Owner must certify annually by _________ of each year (insert date within 30 calendar days of the anniversary date of this Agreement or insert date that will align with other program reporting requirements), to the Grantee that it is operating the Project in compliance with this Agreement and, more specifically, that all Assisted Units and non-Assisted Units, as well as the physical structure of the project as a whole, for example grounds and equipment, comply with all applicable codes and requirements of this Agreement or that a remedial program to correct any existing deficiencies has been implemented.

Should any of the above covenants be held invalid in whole or in part, it shall not affect or invalidate the balance of such covenant or any other covenants.

NOW THEREFORE, in consideration of the mutual promises set forth herein, the parties hereto agree as follows:

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form HUD-92238-PRA (03/2014)

In witness whereof, the parties hereto have caused these presents to be executed on their behalf and their seals affixed the day and year written below. WITNESS (Owner) BY _________________________________ ________________________ And Grantee

Page 5 of 5

form HUD-92238-PRA (03/2014)

Attachment 1 ACKNOWLEDGEMENT BY OWNER BEFORE NOTARY: (Complete according to requirements of state of execution.) ACKNOWLEDGEMENT BY COMMISSIONER: STATE OF ___________________) SS:

CITY AND COUNTY OF ___________________)

On this _______________ day of _______________________,

20___, before me ______________________________, a Notary Public

in and for the City and County of ________________,

_____________________, appeared _________________________

to me personally known and known to me to be the duly Authorized Agent

of Owner,________________________________, and the person who

executed the aforesaid instrument bearing the date of __________________,

20___, and acknowledged that he executed the aforesaid instrument for and

on behalf of ______________________________ for the purposes herein.

(NOTARY PUBLIC)

My Commission Expires:______________________________________ ACKNOWLEDGEMENT BY COMMISSIONER:

STATE OF________________________) SS:

CITY AND COUNTY OF _____________)

On this __________________ day of ________________,

20___, before me ___________________________, a Notary

Public in and for the City and County of ____________,

________________, appeared ______________________________

to me personally known and known to me to be the duly Authorized Agent

of the Grantee, and the person who executed the aforesaid instrument

bearing the date of _________________, 20___, and acknowledged that he

executed the aforesaid instrument for and on behalf of the said Grantee for

the purposes herein. ___________________________________________________________

NOTARY PUBLIC) My Commission Expires:_____________________________________

OMB Approval No. 2502-0608

(exp. 02/28/2017)

Page 1 of 10

form HUD-92236-PRA (03/2014)

Exhibit 11 of the Cooperative Agreement

811 PROJECT RENTAL ASSISTANCE LEASE

SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES

This agreement made and entered into this _____(A)________ day of

______________________, 20___, between ________(B)___________________

as LANDLORD, and ___________(C)________________________as Tenant.

WITNESSETH:

WHEREAS, the LANDLORD is a multifamily property receiving federal

project-based rental assistance pursuant to Section 811 of the

Cranston-Gonzalez National Affordable Housing Act, as amended by the

Frank Melville Supportive Housing Act of 2010.

WHEREAS, the LANDLORD has entered into a Rental Assistance Contract

(RAC) with the State Housing Agency (SHA).

WHEREAS, pursuant to a Cooperative Agreement between HUD and the SHA,

the SHA agrees to disburse Section 811 Project Rental Assistance

Program(PRA Program) funds to the Landlord , conditioned on the

LANDLORD limiting occupancy, based upon a SHA agreed specified number

of PRA Program units, to extremely low income persons with

disabilities as defined in Section 811 of the National Affordable

Housing Act and applicable HUD regulations under criteria for

eligibility of TENANTS for admission to assisted units and conditions

of continued occupancy in accordance with the terms and provisions of

the RAC, and

NOW THEREFORE,

1. The LANDLORD leases to the TENANT, and the TENANT leases from

the LANDLORD dwelling unit number ____(D)_____ located at

_____________(E)_______________________ for a term of one year

commencing on the _____ day of ________(F)___________________, 20__,

and ending on the _____ day of _________(G)____________, 20__.

2. The total rent (Contract Rent) shall be $___(H)_______ per

month.

3. The total rent specified in Paragraph 2, above, shall include

the following utilities:

_________(I)_______________ ____________________________

(If the total rent includes all utilities, enter "ALL"; where

TENANTS pay some or all utilities, enter the following additional

paragraph as 3a.)

The total rent stipulated herein does not include the cost of the

following utility service(s), for which the Utility Allowance is

$_(J)___.

____________(K)____________ _____________________________

________________________ _____________________________

OMB Approval No. 2502-0608

(exp. 02/28/2017)

Page 2 of 10

form HUD-92236-PRA (03/2014)

Charges for such service(s) are to be paid directly by the TENANT to

the utility company/companies providing such service(s). If the

Utility Allowance exceeds the required TENANT's share of the total

housing expense per State -approved schedule and criteria, the LANDLORD

shall pay the TENANT the amount of such excess on behalf of the

Government upon receipt of funds from HUD for that purpose.

4. Of the total rent, $___(L)______ shall be payable by or at

the direction of HUD as rental assistance payments on behalf of the

TENANT, and $______(M)______ shall be payable by the TENANT. These

amounts shall be subject to change by reason of changes in

requirements, changes in the TENANT's family income, family composition

or extent of exceptional medical or other unusual expenses in

accordance with HUD-established schedules and criteria; or by reason of

adjustment by SHA of any applicable Utility Allowance. Any such

change shall be effective as of the date stated in a Notice to the

TENANT.

5. The TENANT's share of the rent shall be due and payable on or

before the first day of each month at ______(N)_____________________ to

the LANDLORD, or to such other person or persons or at such places as

the LANDLORD may from time to time designate in writing.

6. A security deposit in an amount equal to one month's total

TENANT payment or $50, whichever is greater, may be collected at the

time of execution of this Agreement. Accordingly, TENANT hereby makes a

deposit of $____(O)______________ against any damage except reasonable

wear done to the premises by the TENANT, his/her family, guests, or

agents; and agrees to pay when billed the full amount of any such

damage in order that the deposit will remain intact. Upon termination

of this Lease, the deposit amount listed in this paragraph is to be

refunded to the TENANT or to be applied to any such damage or any rent

delinquency. The LANDLORD shall comply with all State and local laws

regarding interest payments on security deposits.

7. The LANDLORD shall not discriminate against the TENANT in the

provision of services or in any other manner on the grounds of race,

color, creed, religion, sex, familial status, national origin, or

disability.

8. Unless terminated or modified as provided herein, this

Agreement shall be automatically renewed for successive terms of One

month each at the aforesaid rental, subject to adjustment as herein

provided.

(a) The TENANT may terminate this Agreement at the end of

the initial term or any successive term by giving 30 days written

notice in advance to the LANDLORD. Whenever the LANDLORD has been in

material noncompliance with this Agreement, the TENANT may in

accordance with State law terminate this Agreement by so advising the

LANDLORD in writing.

(b) The LANDLORD's right to terminate this Agreement is

governed by the regulation of the Secretary of HUD at Title 24, Part 5,

Subpart I and Part 247 (herein referred to as the HUD Regulation). The

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form HUD-92236-PRA (03/2014)

HUD Regulation provides that the LANDLORD may terminate this Agreement

only under the following circumstances:

(1) The LANDLORD may terminate effective at the end of

the initial term or any successive term, by giving the TENANT

notification in the manner prescribed in paragraph (g) below that the

term of this Agreement is not renewed and this Agreement is accordingly

terminated. This termination must be based upon either material

noncompliance with this Agreement, material failure to carry out

obligations under any State landlord or tenant act, or criminal

activity that threatens the health, safety, or right to peaceful

enjoyment of their residences by persons residing in the immediate

vicinity of the premises; any criminal activity that threatens the

health or safety of any on-site project management staff responsible

for managing the premises, or any drug-related criminal activity on or

near such premises, engaged in by a resident, any member of the

resident's household or other person under the resident's control; or

other good cause. When the termination of the tenancy is based on

other good cause, the termination notice must be effective at the end

of the lease term, but in no case earlier than 30 days after receipt of

the notice by the TENANT. Where the termination notice is based on

material noncompliance with this Agreement or material failure to carry

out obligations under a State landlord and tenant act, the time of

service shall be in accordance with the previous sentence or State law,

whichever is later.

(2) Notwithstanding subparagraph (1), whenever the

TENANT has been in material noncompliance with this Agreement, the

LANDLORD may, in accordance with State law and the HUD Regulation,

terminate this Agreement by notifying the TENANT in the manner

prescribed in paragraph (g) below.

(c) If the TENANT does not vacate the premises on the

effective date of the termination of this Agreement, the LANDLORD may

pursue all judicial remedies under State or local law for the eviction

of the TENANT, and in accordance with the requirements in the HUD

Regulation.

(d) The term "material noncompliance with this Agreement"

shall, in the case of the TENANT, include (1) one or more substantial

violations of this Agreement, (2) repeated minor violations of this

Agreement which disrupt the livability of the project, adversely affect

the health or safety of any person or the right of any tenant to the

quiet enjoyment of the leased premises and related project facilities,

interfere with the management of the project or have an adverse

financial effect on the project, (3) failure of the TENANT to timely

supply all required information on the income and composition, or

eligibility factors of the TENANT household (including failure to meet

the disclosure and verification requirements for Social Security

Numbers, as provided by 24 CFR Part 5, Subpart B or knowingly providing

incomplete or inaccurate information). Nonpayment of rent or any other

financial obligation due under this Agreement (including any portion

thereof) beyond any grace period permitted under State law shall

constitute a substantial violation. The payment of rent or any other

financial obligation due under this Agreement after the due date but

within any grace period permitted under State law shall constitute a

minor violation.

OMB Approval No. 2502-0608

(exp. 02/28/2017)

Page 4 of 10

form HUD-92236-PRA (03/2014)

(e) The conduct of the TENANT cannot be deemed other good

cause unless the LANDLORD has given the TENANT prior notice that said

conduct shall henceforth constitute a basis for termination of this

Agreement. Said notice shall be served on the TENANT in the manner

prescribed in paragraph (g) below.

(f) The LANDLORD's determination to terminate this Agreement

shall be in writing and shall (1) state that the Agreement is

terminated on a date specified therein, (2) state the reasons for the

LANDLORD's action with enough specificity so as to enable the TENANT to

prepare a defense, (3) advise the TENANT that if he or she remains in

the leased unit on the date specified for termination, the LANDLORD may

seek to enforce the termination only by bringing a judicial action at

which time the TENANT may present a defense, (4) advise the persons

with disabilities have the right to request reasonable accommodations

to participate in the hearing process and (5) be served on the TENANT

in the manner prescribed by paragraph (g) below.

(g) The LANDLORD's termination notice shall be accomplished

by (1) sending a letter by first class mail, cc’ing the SHA and the

individual listed on the Supplement to Application for Federally

Assisted Housing (Form HUD-92006), if any, properly stamped and

addressed, to the TENANT at his/her address at the project, with a

proper return address, and (2) serving a copy of said notice on any

adult person answering the door at the leased dwelling unit, or if no

adult responds, by placing the notice under or through the door, if

possible, or else by affixing the notice to the door. Service shall

not be deemed effective until both notices provided for herein have

been accomplished. The date on which the notice shall be deemed to be

received by the TENANT shall be the date on which the first class

letter provided for in clause (1) herein is mailed, or the date on

which the notice provided for in clause (2) is properly given,

whichever is later.

(h) The LANDLORD may, with the review of the SHA and prior

approval of HUD, modify the terms and conditions of the Agreement,

effective at the end of the initial term or a successive term, by

serving an appropriate notice on the TENANT, together with the tender

of a revised Agreement or an addendum revising the existing Agreement.

Any increase in rent shall, in all cases, be governed by 24 CFR Part

245, and other applicable HUD regulations. This notice and tender

shall be served on the TENANT (as defined in paragraph (g)) at least 30

days prior to the last date on which the TENANT has the right to

terminate the tenancy without being bound by the codified terms and

conditions. The TENANT may accept it by executing the tendered revised

agreement or addendum, or may reject it by giving the LANDLORD written

notice at least 30 days prior to its effective date that he/she intends

to terminate the tenancy. The TENANT's termination notice shall be

accomplished by sending a letter by first class mail, properly stamped

and addressed to the LANDLORD at his/her address.

(i) The LANDLORD may terminate this Agreement for the

following reasons:

Page 5 of 9

form HUD-92236-PRA (03/2014)

1. drug related criminal activity engaged in on or near

the premises, by any TENANT, household member, or guest, and any such

activity engaged in on the premises by any other person under the

tenant’s control;

2. determination made by the LANDLORD that a household

member is illegally using a drug;

3. determination made by the LANDLORD that a pattern of

illegal use of a drug interferes with the health, safety, or right to

peaceful enjoyment of the premises by other residents;

4. criminal activity by a tenant, any member of the

TENANT’S household, a guest or another person under the TENANT’S

control:

(a) that threatens the health, safety, or right to

peaceful enjoyment of the premises by other residents (including

property management staff residing on the premises); or

(b) that threatens the health, safety, or right to

peaceful enjoyment of their residences by persons residing in the

immediate vicinity of the premises;

5. if the TENANT is fleeing to avoid prosecution, or

custody or confinement after conviction, for a crime, or attempt to

commit a crime, that is a felony under the laws of the place from which

the individual flees, or that in the case of the State of New Jersey,

is a high misdemeanor; or

6. if the TENANT is violating a condition of probation

or parole under Federal or State law;

7. determination made by the LANDLORD that a household

member’s abuse or pattern of abuse of alcohol threatens the health,

safety, or right to peaceful enjoyment of the premises by other

residents;

8. if the LANDLORD determines that the tenant, any

member of the TENANT’S household, a guest or another person under the

TENANT’S control has engaged in criminal activity, regardless of

whether the tenant, any member of the tenant’s household, a guest or

another person under the tenant’s control has been arrested or

convicted for such activity.

9. TENANT agrees that the family income, family composition and

other eligibility requirements shall be deemed substantial and material

obligations of his/her tenancy with respect to the amount of rental

he/she will be obligated to pay and his/her right of occupancy, and

that a recertification of income shall be made to the LANDLORD annually

from the date of this lease in accordance with HUD regulations and

requirements.

10. TENANT agrees that the TENANT's share of the monthly rental

payment is subject to adjustment by the LANDLORD to reflect income

changes which are disclosed on any of TENANT's recertification of

Page 6 of 9

form HUD-92236-PRA (03/2014)

income, and TENANT agrees to be bound by such adjustment. LANDLORD

agrees to give 30 days written notice of any such adjustment to the

TENANT, by an addendum to be made a part of this lease, stating the

amount of the adjusted monthly rental which the TENANT will be required

to pay.

11. The TENANT shall not assign this lease, sublet the premises,

give accommodation to any roomers or-lodgers, or permit the use of the

premises for any purpose other than as a private dwelling solely for

the TENANT and his/her family. The TENANT agrees to reside in this

unit and agrees that this unit shall be the TENANT's and his/her

family's only place of residence.

12. TENANT agrees to pay the LANDLORD any rental which should

have been paid but for (a) TENANT's misrepresentation in his/her

initial income certification or recertification, or in any other

information furnished to the LANDLORD or (b) TENANT's failure to supply

income recertification when required or to supply information requested

by the LANDLORD.

13. TENANT for himself/herself and his/her heirs, executors and

administrators agrees as follows:

(a) To pay the rent herein stated promptly when due, without

any deductions whatsoever, and without any obligation on the part of

the LANDLORD to make any demand for the same;

(b) To keep the premises in a clean and sanitary condition,

and to comply with all obligations imposed upon TENANTS under

applicable provisions of building and housing codes materially

affecting health and safety with respect to said premises and

appurtenances, and to save the LANDLORD harmless from all fines,

penalties and costs for violations or noncompliance by TENANT with any

of said laws, requirements or regulations, and from all liability

arising out of any such violations or noncompliance.

(c) Not to use premises for any purpose deemed hazardous by

insurance companies carrying insurance thereon;

(d) That if any damage to the property shall be caused by

his/her acts or neglect, the TENANT shall forthwith repair such damage

at his/her own expense, and should the TENANT fall or refuse to make

such repairs within a reasonable time after the occurrence of such

damage, the LANDLORD may, at his/her option, make such repairs and

charge the cost thereof to the TENANT, and the TENANT shall thereupon

reimburse the LANDLORD for the total cost of the damages so caused,

(e) To permit the LANDLORD, or his/her agents, or any

representative of any holder of a mortgage on the property, or when

authorized by the LANDLORD, the employees of any contractor, utility

company, municipal agency or others, to enter the premises for the

purpose of making reasonable inspections and repairs and replacements,

(f) Not to install a washing machine, clothes dryer, or air

conditioning unit in the apartment without the prior approval of the

LANDLORD; and

Page 7 of 9

form HUD-92236-PRA (03/2014)

(g) To permit the LANDLORD or his/her agents to bring

appropriate legal action in the event of a breach or

threatened breach by the TENANT of any of the covenants

or provisions of this lease.

14. The LANDLORD agrees to comply with the requirement of all

applicable Federal, State, and local laws, including health, housing

and building codes and to deliver and maintain the premises in safe,

sanitary decent condition.

15. The TENANT, by the execution of this Agreement, admits that

the dwelling unit described herein has been inspected by him/her and

meets with his/her approval. The TENANT acknowledges hereby that said

premises have been satisfactorily completed and that the LANDLORD will

not be required to repaint, replaster, or otherwise perform any other

work, labor, or service which it has already performed for the TENANT.

The TENANT admits that he/she has inspected the unit and found it to be

in good and tenantable condition, and agrees that at the end of the

occupancy hereunder to deliver up and surrender said premises to the

LANDLORD in as good condition as when received, reasonable wear and

tear expected.

16. No alteration, addition, or improvements shall be made in or

to the premises without the prior consent of the LANDLORD in writing.

17. Reasonable Accommodations: The LANDORD agrees to provide reasonable

accommodation to an otherwise eligible tenant’s disability, including

making changes to rules, policies, or procedures, and making and paying

for structural alterations to a unit or common areas. The Landlord is

not required to provide accommodations that constitute a fundamental

alteration to the Landlord’s program or which would pose a substantial

financial and administrative hardship. See the regulations at 24 CFR

Part 8. In addition, if a requested structural modification does pose

a substantial financial and administrative hardship, the Landlord must

then allow the tenant to make and pay for the modification in

accordance with the Fair Housing Act.

18. Reasonable Accommodations: The LANDLORD agrees to provide

reasonable accommodation to an otherwise eligible tenant’s disability,

including making changes to rules, policies, or procedures, and making

and paying for structural alterations to a unit or common areas. The

Landlord is not required to provide accommodations that constitute a

fundamental alteration to the Landlord’s program or which would pose a

substantial financial and administrative hardship. See the regulations

at 24 CFR Part 8. In addition, if a requested structural modification

does pose a substantial financial and administrative hardship, the

Landlord must then allow the tenant to make and pay for the

modification in accordance with the Fair Housing Act.

19. TENANT agrees not to waste utilities furnished by the

LANDLORD; not to use utilities or equipment for any improper or

unauthorized purpose, and not to place fixtures, signs, or fences in or

about the premises without the prior permission of the LANDLORD in

writing. If such permission is obtained, TENANT agrees, upon

Page 8 of 9

form HUD-92236-PRA (03/2014)

termination of the lease, to remove any fixtures, signs of fences, at

the option of the LANDLORD, without damage to the premises.

21. This Agreement shall be subordinate in respect to any

mortgages that are now on or that hereafter may be placed against said

premises, and the recording of such mortgage or mortgages shall have

preference and precedence and be superior and prior in lien to this

Agreement, and the TENANT agrees to execute any such instrument without

cost, which may be deemed necessary or desirable to further effect the

subordination of this Agreement to any such mortgage or mortgages and a

refusal to execute such instruments shall entitle the LANDLORD, or the

LANDLORD's assigns and legal representatives to the option of canceling

this Agreement without incurring any expense or damage, and the term

hereby granted is expressly limited accordingly.

22. Failure of the LANDLORD to insist upon the strict performance

of the terms, covenants, agreements and conditions herein contained, or

any of them, shall not constitute or be construed as a waiver or

relinquishment of the LANDLORD's right thereafter to enforce any such

term, covenant, agreement, or condition, but the same shall continue in

full force and effect.

23. In return for the TENANT's continued fulfillment of the terms

and conditions of this Agreement, the LANDLORD covenants that the

TENANT may at all times, while this Agreement remains in effect, have

and enjoy for his/her sole use and benefit the above described

property.

24. Tenant Income Verification: The TENANT must promptly provide

the LANDLORD with any information relating to the amount or

verification of family income in accordance with HUD requirements.

25. Tenants’ rights to organize: LANDLORD agrees to allow TENANT

organizers to conduct on the property the activities related to the

establishment or operation of a TENANT organization set out in

accordance with HUD requirements.

26. Interim recertification:

a. The TENANT agrees to advise the LANDLORD immediately

if any of the following changes occur.

1. Any household member moves out of the unit.

2. Any adult member of the household who was

reported as unemployed on the most recent

certification or recertification obtains employment.

3. The household’s income cumulatively increases by

$200 or more a month.

b. The TENANT may report any decrease in income or any

change in other factors considered in calculating the Tenant’s rent.

Unless the LANDLORD has confirmation that the decrease in income or

change in other factors will last less than one month, the LANDLORD

will verify the information and make the appropriate rent reduction.

Page 9 of 9

form HUD-92236-PRA (03/2014)

However, if the TENANT’S income will be partially or fully restored

within two months, the LANDLORD may delay the certification process

until the new income is known, but the rent reduction will be

retroactive and LANDLORD may not evict the TENANT for nonpayment of

rent due during the period of the reported decrease and the completion

of the certification process. The TENANT has thirty days after

receiving written notice of any rent due for the above described time

period to pay or the LANDLORD can evict for nonpayment of rent.

c. If the TENANT does not advise the LANDLORD of the

interim changes concerning household members or increase in income, the

TENANT may be subject to eviction. The LANDLORD may evict TENANT only

in accordance with the time frames and administrative procedures set

forth in HUD’s regulations, handbooks and instructions on the

administration of multifamily subsidy programs.

d. The TENANT may request to meet with the LANDLORD to

discuss how any change in income or other factors affected his/her rent

or assistance payment, if any. If the TENANT requests such a meeting,

the LANDLORD agrees to meet with the TENANT and explain how the

TENTANT’S rent or assistance payment, if any, was computed.

27. Attachments to the Agreement: The Tenant certifies that

he/she has received a copy of the Agreement and the following

attachments to the Agreement and understands that these attachments are

part of the Agreement.

a. Attachment No. 1 - Owner’s Certification of Compliance

with HUD’s Tenant Eligibility and Rent Procedures, form

HUD-50059

b. Attachment No. 2 - Unit Inspection Report.

c. Attachment No. 3 - House Rules (if any).

d. Attachment No. 4 – Pet Rules (if any).

e. Owner’s Live-in Aide Addendum (if any)

WITNESS:

_____________(P)_________________LANDLORD

_______________

Date By: __________________________

_______________ _____________(P)_________________TENANT

Date

_______________ ______________________________

_______________ ______________________________

Page 10 of 10 form HUD-90105-d

12/2007

Public reporting burden – HUD is not requesting approval of any burden hours

for the model leases since use of leases are a standard business practice in

the housing rental industry. This information is required to obtain benefits.

The request and required supporting documentation are sent to HUD or the HFA

for approval. The lease is a contract between the owner of the project and the

tenant(s) that explains the terms for residing in the unit. Leases are a

standard business practice in the housing rental industry. Owners are required

to use the HUD model lease which includes terms normally covered by leases used

in the housing rental industry plus terms required by HUD for the program under

which the project was built and/or the program providing rental assistance to

the tenants.