Current through Reg. 50, No. 13; March 28, 2025
(a) Commitment or Reservation of Funds. The
Administrator must submit true and correct information, certified as such, with
a request for the Commitment of Funds as described in paragraphs (1) - (12) of
this subsection:
(1) Head of Household name
and address of housing unit for which assistance is being requested;
(2) A budget that includes the amount of
Activity funds specifying the acquisition cost, construction costs, contractor
fees, and developer fees, as applicable. A maximum of five percent of hard
construction costs for contingency items, proposed Match to be provided,
evidence that Activity Cost limitations are not exceeded, and evidence that any
duplication of benefit is addressed;
(3) Verification of environmental
clearance;
(4) A copy of the
Household's intake application on a form prescribed by the
Department;
(5) Certification of
the income eligibility of the Household signed by the Administrator and all
Household members age 18 or over, and including the date of the income
eligibility determination. All documentation used to determine the income of
the Household must be provided;
(6)
Project cost estimates, construction contracts, and other construction
documents necessary, in the Department's sole determination, to ensure
applicable property standard requirements will be met at completion;
(7) Identification of Lead-Based Paint (LBP)
if site remediation is needed;
(8)
Executed sales contract and documentation that the first lien mortgage meets
the eligibility requirements;
(9)
Evidence that the housing unit will be located outside the 100-year floodplain;
(10) If applicable, documentation
to address or resolve any potential conflict of interest, Identity of Interest,
duplication of benefit, or floodplain mitigation;
(11) Appraisal, which includes post
construction improvements; and
(12)
Any other documentation necessary to evidence that the Activity meets the
program requirements.
(b) Construction Loan closing. The
Administrator must submit the documents described in paragraphs (1) - (2) of
this subsection, with a request for the preparation of loan closing with the
request for the Commitment of Funds:
(1) A
title commitment to issue a title policy that evidences the property will
transfer with no tax lien, child support lien, mechanic's or materialman's lien
or any other restrictions or encumbrances that impair the good and marketable
nature of title to the ownership interest and that the definition of
Homeownership will be met. The effective date of the title commitment must be
no more than 60 days prior to the date of project submission. Commitments that
expire prior to execution of closing must be updated at closing and must not
have any adverse changes in order to close; and
(2) Within 90 days after the loan closing
date, the Administrator must submit to the Department the original recorded
deed of trust and transfer of lien, if applicable. Failure to submit these
documents within 90 days after the loan closing date will result in the
Department withholding payment for disbursement requests.
(c) Disbursement of funds. The Administrator
must comply with the requirements described in paragraphs (1) - (11) of this
subsection, for a request for disbursement of funds to reimburse eligible costs
incurred. Submission of documentation related to the Administrator compliance
with requirements described in paragraphs (1) - (11) of this subsection may be
required with a request for disbursement:
(1)
For construction costs, an interim construction binder advance endorsement not
older than the date of the last disbursement of funds or 45 days, whichever is
later. For release of retainage a down date endorsement to the mortgagee policy
issued to the homebuyer dated at least 40 days after the Construction
Completion Date;
(2) If required or
applicable, a maximum of 50 percent of Direct Activity Costs for an Activity
may be drawn before providing evidence of Match. Thereafter, each Administrator
must provide evidence of Match, including the date of provision, in accordance
with the percentage of Activity funds disbursed;
(3) Property inspections, including
photographs of the front, back, and side elevations of the housing unit and at
least one picture of each of the kitchen, family room, each bedroom and each
bathroom with date and property address reflected on each photo. The inspection
must be signed and dated by the inspector and Administrator or
Developer;
(4) Certification that
its fiscal control and fund accounting procedures are adequate to assure the
proper disbursal of, and accounting for, funds provided, no Person that would
benefit from the award of HOME funds has provided a source of Match or has
satisfied the Applicant's cash reserve obligation or made promises in
connection therewith; that each request for disbursement of HOME funds is for
the actual cost of providing a service and that the service does not violate
any conflict of interest provisions;
(5) Original, executed, legally enforceable
loan documents containing remedies adequate to enforce any applicable
affordability requirements. Original documents must evidence that such
agreements have been recorded in the real property records of the county in
which the housing unit is located and the original documents must be returned,
duly certified as to recordation by the appropriate county official;
(6) Expenditures must be allowable and
reasonable in accordance with federal, state, and local rules and regulations.
The Department shall determine the reasonableness for expenditures submitted
for reimbursement. The Department may request Administrator or Developer to
make modifications to the disbursement request and is authorized to modify the
disbursement procedures set forth herein and to establish such additional
requirements for payment of HOME funds to Administrator or Developer as may be
necessary or advisable for compliance with all Program Requirements;
(7) Table funding requests must be submitted
to the Department with complete documentation no later than 14 days prior to
the anticipated loan closing date. Such a request must include a draft
settlement statement, title company payee identification information, the
Administrator or Developer's authorization for disbursement of funds to the
title company, request letter from title company to the Comptroller of Public
Accounts with bank account wiring instructions, and invoices for costs being
paid at closing;
(8) Include the
withholding of ten percent of hard construction costs for retainage. Retainage
will be held until at least 40 days after the Construction Completion
Date;
(9) For final disbursement
requests, submission of documentation required for Activity completion
reports;
(10) The final request for
disbursement must be submitted to the Department with support documentation no
later than 60 days after the termination date of the Contract in order to
remain in compliance with Contract and eligible for future funding. The
Department shall not be obligated to pay for costs incurred or performances
rendered after the termination date of a Contract; and
(11) For costs associated with insurance
policies, including title policies and homeowner's insurance policies, charged
as Activity costs, evidence of payment of the cost must be submitted with the
retainage request.