NSP DEVELOPER ARRENTAL PROGRAM PROCEDURES
HERA 2301(c)(3)(B) purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed upon, in order to sell, rent, or redevelop such homes and properties;
Phase 1: Property Conveyance, Scope of Work and Contractor Selection
The City will convey the property to the Developer immediately after the acquisition closing. Prior to closing, the Developer may chose to access the property (provided the seller gives permission) in order to complete a thorough Scope of Work. Developer will be given a copy of the City generated Inspection Summary form NSP1-180C-NLV to be used as a reference guide as to the items inspected by the City. In addition to the Inspection Summary, the developer will be provided a copy of the Environmental Review and appraisal conducted on the property along with its Covenants, Conditions and Requirements.
1. City will create a summary outline of repairs required to meet minimum code compliance (if code violations are discovered). Included in the summary outline will be the necessary repairs required to bring the property to HUD minimum property standards and identify property improvements. Also, the assessment of the property will identify key repair and replacement measures which will increase the energy efficiency and home performance of the property. This inspection summary document (form NSP1-180C-NLV) will be compared against the developers own property analysis (NSP1-182-NLV & Home Performance Energy Audit Report) to obtain the necessary scope of work and cost estimates needed to conduct rehabilitation on the property.
FORMS/ DOCUMENTS USED FOR THIS PROCESS:
A: Inspection Summary – NSP1-180C-NLV
B: Scope of Work and Cost Estimate-NSP1-182-NLV
C: Home Performance Energy Audit Report
2. Developer to require that each housing unit is inspected by a Building Performance Analyst/Energy Auditor certified by HERS and RESNET (City will provide list of certified auditors to Developer) to evaluate the energy performance of the building and to determine the energy efficient activities that need to be accomplished in accordance with established program guidelines.
FORMS/DOCUMENTS USED FOR THIS PROCESS:
A: Home Performance Energy Audit Report
B: HomeFree Nevada HERS-BPI list as of 10/2009
3. Developer creates a scope of work and cost estimate to be utilized for property rehabilitation which is determined by the property inspection and energy audits conducted on the site, in accordance with local codes along with City rehabilitation standards. Soliciting several bids alone is not a substitute for preparing an independent cost estimate.
In addition, the developer will prepare a Rehabilitation/Construction draw request schedule to submit, along with the Scope of Work and Cost Estimate (NSP1-182-NLV), Home Performance Energy Audit Report, a preliminary ARResale Unit Project Budget (NSP1-220A-NLV), if applicable, contractor’s agreements, and proof of Non-Debarred status to the City for review and approval. Should the City find it necessary to obtain clarification of the information submitted for approval for property rehabilitation by the developer or need additional information, form NSP1-181-NLV (Request for Additional Information) will be used. Once all submittal requirements have been met, and all approved rehabilitation items have been authorize by City staff, a City approved scope of work along with a Notice to Proceed (NSP1-186-NLV) will be given to the developer. At this time construction contracts can be signed and rehabilitation of the property may commence
NOTE: Developer may select any non-debarred licensed General Contractor that demonstrates competence to undertake construction in conformance with the established Property Rehabilitation Standards and Guidelines. The Developer must verify that selected contractor(s) is not on the debarred list and Developer is to keep on file a certification of non-debarred status (NSP1-120-NLV) of all contractors.
FORMS/DOCUMENTS USED FOR THIS PROCESS:
A. Request for Additional Information - NSP1-181-NLV
B. Scope of Work/Cost Estimate form –NSP1-182-NLV
C. Notice to Proceed – NSP-186-NLV
D. ARResale rehabilitation Document Checklist – NSP1-210-NLV
E. Preliminary ARResale Unit Project Budget (NSP1-220A-NLV)
F. Rehabilitation/Construction Schedule
G. Construction and Draw Request Schedule
H. Home Performance Energy Audit Report
I. CNLV NSP Property Standards and Guidelines
J. NSP Construction Standards Guide
K. Home Performance Standards for Warm Climates
L. Contractor’s Agreements
M. City Approved Scope of Work
N. North Las Vegas Building Code
O. North Las Vegas Planning and Zoning Ordinance
North Las Vegas Building and Planning and Zoning codes may be accesses via the World Wide Web by pasting the following path to your browser at http://library.municode.com/index.aspx?clientId=16023&stateId=28&stateName=Nevada
Phase 2: Rehabilitation Management
The developer will have the responsibility for overseeing the entire rehabilitation process and will periodically (or as requested) provide the City with the necessary progress updates as well as make all necessary requests (e.g. Inspection, financial, administrative) to the City so as to ensure all program activities are carried out in accordance with City of North Las Vegas Neighborhood Stabilization program regulations.
4. Rehabilitation activities will include construction oversight by the Developer. City is to be notified of pre-construction meetings and reserves the right to participate in those meetings and conduct routine site visits. A Status Report will be submitted by the developer at monthly or as requested, to the City detailing the individual progress of each property. All Rehab Activity will be inspected by the City as needed. Project monitoring will be conducted via desk top or “on-site” by City staff so as to ensure program compliance and identify any issues relating to the program process and to assist in creating a solution as needed. Developer may request, as desired, an intermediate progress inspection by the City to ensure rehabilitation work timeline+ is kept so as to avoid project delays.
FORMS/DOCUMENTS USED FOR THIS PROCESS:
A. NSP Intermediate Inspection Request form – NSP1-188-NLV
B. ARResale/ARRental Monthly Status Report – NSP-240-NLV
5. City is interested in any change orders between the contractor and Developer. If the change order reflects a change in the authorized scope of work, it will require City approval prior to implementing the change.
FORM/DOCUMENTS USED FOR THIS PROCESS:
A. Change Order Request form - NSP-187-NLV
B. Revised Scope of Work/Cost Estimate form –NSP1-182-NLV
6. When construction and rehabilitation is complete, Developer will schedule a punch list inspection with the NSP Program Administrator. In addition, an inspection by a Building Performance Analyst/Energy Auditor (certified by HERS and RESNET) will also be scheduled. A list of items to be corrected will be provided to the Developer and the contractor. Until punchlist items are corrected to the satisfaction of the Developer and the inspector, and required permits are issued, and the receipt of the revised Home Performance Energy Audit Report, the Developer will not be allowed to proceed to property disposition.
7. The City will progress pay the rehabilitation expenses upon receipt of the required documentation and Request for Payment forms; requests should not be submitted more often than twice monthly. Advances on work will not be approved. The City may retain 10% until the project is complete (disposition of the property).
8. Upon completion and prior to final payment, contractor shall provide Developer all warranties, as-built drawings, operation manuals, guarantees and release of liens.
As part of NSP1 requirements, the developer must be in compliance with Section 3 of the Department of Housing and Urban Development Act of 1968.
FORMS/DOCUMENTS USED FOR THIS PROCESS:
A. A cover letter requesting reimbursement on Developer letterhead. Please indicate the dollar amount of request in this letter.
B. A completed Request for Payment form (NSP1-231-NLV) with progress narrative.
C. Contractor’s invoice with percentage of work completed.
D. Copies of checks and cancelled checks for payments made (front & back). In the case of wire transfers copy of the wire transfer entry and wire transfer receipt conformation.
E. NSP1 Rehabilitation Punchlist- NSP1-183-NLV
F. ARResale Project Completion Certification and Request for Inspection –
NSP1-236-NLV
G. Final Home Performance Energy Audit Report
H. HUD 2516 – Contract and Subcontract Activity
Phase 3: Property Rent-Up and Property Management
Once rehabilitation is complete, outreach efforts will be underway. NSP acquired properties will be rented to qualified households that are at or below 50% of the area median income as required by the NSP 1 program.
13. Outreach – The Developer will develop and implement an affirmative marketing plan which will be made available to a broad spectrum of the community with particular emphasis on traditionally under-served populations. Particular outreach should be made available to those households living in public housing and mobile home communities. The Developer will make every reasonable effort to advertise the rental properties to qualified households through various means of promotion. It is NSP1 program policy to admit qualified applicants only.
The City of North Las Vegas requires that the Developer ensure that all families who express an interest in housing assistance are given an equal opportunity to apply, and are treated in a fair and consistent manner.
FORMS/DOCUMENTS USED FOR THIS PROCESS:
A. Affirmative Marketing Plan
14. Intake/Eligibility/Selection Guidelines – The Developer will submit an Intake/Eligibility/Selection Plan outlining, at a minimum, the following areas:
· Qualifications for admission
· Non-economic and suitability eligibility criteria
· Application processing and eligibility determination
· Income limits and determination of rents
· Occupancy guidelines and unit management
· Annual recertification
· Lease and security deposit execution
· Inspections
· Complaints or grievance
· Lease termination and eviction
· Non-discrimination and fair housing policy
· Accessibility – Reasonable Accommodation
FORMS/DOCUMENTS USED FOR THIS PROCESS:
B. Intake/Eligibility/Selection Guidelines
15. Determining Income Eligibility - Technical eligibility of the household will be performed by the Developer’s staff or property management staff and will be performed in accordance with the procedures identified in HUD’s “Technical Guide for Determining Income and Allowances for the HOME Program, Third Edition (HUD-1780-CPD), using the Part 5 definition of annual income. An “Income Eligibility Package” must be completed on each household to include, at a minimum:
· INCOME QUESTIONNAIRE (including, but not limited to, place and length of employment for each person in household 18 years of age or older)
· HOUSEHOLD INCOME DECLARATION FORM
· SOURCE DOCUMENTS USED TO VERIFY INCOME
FORMS/DOCUMENTS USED FOR THIS PROCESS:
A. Technical Guide for Determining Income and Allowances for the HOME Program, Third Edition (HUD-1780-CPD)
16. Income Limits and Determination of Rents – The Neighborhood Stabilization Program regulations require families be at or below 50% of area median income at the time of admission to this program. The minimum income requirement is 30% of area median income (as long as the rent burden does not exceed 50% of monthly income). This is based on affordability and program revenue requirements. HUD’s published Income Limits will be used for this purpose.
Affordable rents are defined as the annual Fair Market Rents (FMR) established by HUD annually, adjusted by the number of bedrooms. Affordable rents must also include a utility allowance which is based on utilities paid by the tenant (not including telephone) and adjusted by the number of bedrooms. Based on the family’s gross annual income, the applicable published HOME Rents schedules minus a utility allowance will apply. The City of North Las Vegas will utilize the Utility Allowance Schedule published annually by the Housing Authority of Clark County.
HUD Income Limits are updated annually; therefore, applicable income limits and rent structures will be posted in designated locations and will be used when determining eligibility and rent amounts.
FORMS/DOCUMENTS USED FOR THIS PROCESS:
A. Current Fair Market Rents - http://www.huduser.org/datasets/fmr.html
B. Current HUD Income Limits - http://www.huduser.org/portal/datasets/pdrdatas.html
C. Income Worksheet – NSP1-410-NLV
D. Income Inclusions and Exclusions – NSP-411-NLV
17. Property Management – The Developer is responsible for management of all residential properties which have been conveyed to the Developer’s organization; however they may procure a management firm. If a management firm is procured, the property management contract must be available for review in the project file. I addition to the contract, a property management procedures manual must be submitted to the Developer for review and must be kept on site with the Developer.
The property management fee will be paid as a percentage of operating income as is standard in the industry. That fee will be 5 percent of the operating income for each property.
The Developer may retain an appropriate amount of operating income for “reserve for replacement” – the amount to be determined on a case-by-case basis. Any other operating income above actual costs is considered program income and must be returned to the City of North Las Vegas.
18. Monthly Reporting - For each property the Developer must submit to the City:
· The developer will generate and submit a summary of all operating income, operating/maintenance expenses including replacement reserve, all management expenses and any net income generated by each property. The Developer should also include a project narrative regarding action taken on each property and any accomplishments achieved.
· NSP1-451-NLV ARRental Tenant Statistics Report.
· A Developer generated program progress and compliance report that outlines the following information:
o Physical occupancy
o Wait List information
o Move-ins, move-outs and turn-around times
o List of all vacant units and their status
o Applications taken
o Customer/client traffic
o Active promotions and advertising
o Resident Recertification’s
o Property inspections
o Lease enforcements
o Non-emergency work orders
o Emergency work orders
o Delinquencies
FORMS/DOCUMENTS USED FOR THIS PROCESS:
A. Summary of Operating Income and Expenses
B. Summary Report of all Actions and Accomplishments
C. NSP1-451-NLV ARRental Tenant Statistics Report.
D. Program Progress and Compliance Report
19. Tenant File Management – The developer will maintain tenant files that will contain, but are not limited to, the following information:
· Initial Occupancy – Application Packet
· Income Certification and Recertification
· Lease Agreements
· Financial and Resident Management Data
· Maintenance Data
· Rent Collection Data
· Lease Enforcement