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HomeMy WebLinkAbout88281 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 RESOLUTION NO. 81828 A RESOLUTION APPROVING USE OF FISCAL YEAR 1992 HOME INVESTMENT PARTNERSHIP GRANT FUNDS; AND FOR OTHER PURPOSES. M M M 644 WHEREAS, the Board of Directors has approved the Comprehensive Housing Affordability Strategy for fiscal year 1992; and WHEREAS, the City has qualified for a formula grant of One Million One Hundred Thirty -Five Thousand Dollars ($1,135,000) through the United States Department of Housing and Urban Development Under Title II of the National Affordable Housing Act of 1990 (HOME); and WHEREAS, in accordance with federal law and regulations, the City needs to revise the method in which these funds will be spent. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF LITTLE ROCK, ARKANSAS: SECTION 1. The City of Little Rock, Arkansas, authorizes the use of federal FY 1992 HOME Investment Partnership Grant monies in accordance with the program description (Attachment A) and the revised estimate of use of HOME program funds (Attachment B) as attached to this resolution. ADOPTED: December 1, 1992 IM j7AF APPROVED AS TO FORM: Ed# 4W •' R -69 4 -r i ATTACHMENT A' 645 HOME Investment Partnerships Program Description City of Little Rock, Arkansas FY 1992 646 EXECUTIVE SUMMARY The HOME Program of the City of Little Rock will target HOME resources largely in the City's designated revitalization area. It will encourage formation of neighborhood -based Community Housing Development Organizations (CHDOs) and increase of their capacity to develop viable housing production and preservation projects for low- income families. The City's management and its governing board anticipate growing involvement of neighborhood residents in reclamation of neighborhoods and the housing stock in them and consider such involvement essential. The local HOME program is designed to abet that vital process, as well as to increase the supply of housing available to low- income families. The City will utilize HOME funds and all other housing resources to preserve existing housing stock to the fullest extent practical. Conditions of the revitalization area and other transitional, deteriorating, and disinvested neighborhoods are such, however, that revitalization cannot be accomplished without some new construction. Documentation of the need for new construction is on file. The City deems an increase in homeownership in the area to be vital, also, and proposes to use HOME funding for assistance to homeowners and first -time homebuyers. No HOME funds will be used to assist first -time homebuyers, however, until the City has carefully prepared, submitted to HUD and received HUD's approval of the City's plan to assure long -term affordability of the owned units, as required by 24 CFR 92.254. Page 1 of 18 PROPOSED USE OF HOME FUNDS Owner - Occupied Rehabilitation. The City will allocate $500,000 to assist homeowners to rehabilitate their residences. With that allocation the program objective is rehabilitation of 36 owner - occupied units. This form of assistance will be provided only to low- income families in keeping with 24 CFR 92.217, "families" being defined as in 92.2. The investment of HOME funds in owner - occupied rehabilitation assistance will augment a similar activity of the City's Community Development Block Grant program. The principal 647 form of assistance to which HOME Investments Partnerships funds will be applied is a deferred payment, self- amortizing loan (DPL) for a period of five years. The maximum DPL will be $15,000. The City currently has no other form of assistance in use under its CDBG owner - occupied housing assistance programs that is approved for HOME funds investment. However, in order to preserve housing stock in its Revitalization Area and to encourage private sector reinvestment in the Area, the City may use HOME funds for interest - bearing direct loans, noninterest- bearing direct loans, and interest subsidies to leverage other monies. Therefore we estimate use of $400,000 for moderate owner - occupied rehab and $100,000 for substantial rehab (more than $25,000 per unit). An owner - occupied rehab project will be undertaken using HOME funds only if funds available are sufficient to meet Section 8 Housing Quality Standards and correct all City Housing Code deficiencies of the property. Page 2 of 18 648 In keeping with the targeting approach of the City's Comprehensive Housing Affordability Strategy, property eligibility will be limited to the City's designated Neighborhood Revitalization Area bounded on the west by Elm Street, on the east by Interstate 30, on the north by Interstate 630, and on the south by Roosevelt Road. Within the Neighborhood Revitalization Area priority is to be given to two defined target areas in the vicinities of Central High School and Rockefeller Elementary School and to any designated Model Block lying outside the two defined target areas. (A map of the Neighborhood Revitalization Area and the two target areas is attached as Appendix A.) Acquisition: First -Time Homebuver Assistance. The City estimates $200,000 of HOME funds will be needed to assist low- income first -time homebuyers to purchase homes. First -time homebuyer assistance will be limited to the Neighborhood Revitalization Area (Appendix A) and designated Model Blocks elsewhere. Assistance to buy in Model Blocks outside the Revitalization Area can be for purchase of existing homes only, i.e. homes for which a certificate of occupancy was issued at least a year before the assisted purchase. The assistance will consist of HOME subsidies in the form of either DPLs or grants or both with a subsidy mechanism to enforce the principal residence requirement and resale restrictions (resale only to a low- income buyer at an affordable price, yet with fair return to the original buyer). The exact form of assistance and compliance mechanism must be worked out and submitted at a later date, but it will include a grant for a portion of the first -time Page 3 of 18 649 homebuyer's down payment. In order to target resources a graduated level of subsidy is planned, as follows: 1. Anywhere within the Revitalization Area, a maximum subsidy (downpayment /closing cost assistance and additional assistance combined) of $10,000 or 25% of fair market value, whichever is less. 2. Within Target Area #1 and Target Area #2, a maximum subsidy of $15,000 or 33 1/3% of fair market value, whichever is less. 3. Within a Model Block, a maximum subsidy of $20,000 or 50% of market value, whichever is less. Rental Unit Rehabilitation Assistance. The HOME Investment Partnership Act gives primary attention to expansion of the supply of affordable rental housing. Little Rock's CHAS has assistance to rental units as a priority, but puts notably more emphasis on homeownership. Accordingly, the City plans to carry out a rental housing program using HOME funds, but expects to use a relatively small portion of its first (FY 1992) HOME grant for that purpose. Another important reason for starting small in our HOME rental housing activity is the markedly different and somewhat onerous administrative requirements of HOME program regulations concerning rental assistance. The City needs to produce and preserve more affordable rental units, but needs planning time before allocating HOME funds to the purpose on a large scale. Page 4 of IS • • 650 The City has other resources available for assistance to affordable rental housing, including uncommitted Rental Rehab funds and Section 108 loan funds for use by nonprofit Community Development Corporations, should they develop rental projects with technical assistance from the Local Initiatives Support Corporation. At present, however, few CDCs in Little Rock have the capability of developing or managing sound rental projects. Therefore, we expect to need only enough of the first years HOME funds to effect some site control for project planning purposes and, perhaps to rehabilitate a few single - family rental structures in Model Blocks. Accordingly, we estimate use of only $175,000 of FY 1992 HOME funds for rental unit assistance. In this first year the City plans to fund only nonprofits (not necessarily CHDOs) to do rental projects. The subsidy limits will be deep, up to $40,000 per unit, and activities limited to the Revitalization Area with the intention of treating severely distressed properties not suitable for home ownership. Rehabilitation for Homeownership. We estimate that $125,000 of the HOME Investment Partnership funds may be needed for substantial rehabilitation of properties for sale to first -time homebuyers. Again, the City anticipates that this form of assistance will be utilized particularly by CHDOS, although the City may itself acquire and rehabilitate and resell distressed properties in the two target areas of the Neighborhood Revitalization Area. Page 5 of 18 M 651 New Construction. The City proposes to use HOME Investment Partnerships monies for new construction in its Revitalization Area and estimates that $135,000 will be needed to assist new construction by either the City or CHDOs for specific projects. The City will not use HOME funds to assist new construction intended for long -term operation as rental property. Some new construction clearly will be required, however, both for immediate sale to first -time homebuyers and for lease by potential first -time homebuyers under a rental - purchase plan. A large number of vacant lots in the Neighborhood Revitalization Area and the number of structures so badly deteriorated as to be economically infeasible to rehabilitate make it impossible to induce reinvestment and revitalization of the neighborhood without investment in new construction. (A fuller justification for the use of HOME funds for new construction is on file.) Our estimated use of HOME funds by category of eligible activity is shown in the tabulation below: Activity /Category Total $ Rental $ Owner $ New Construction $ 135,000 $ 0 $135,000 Substantial Rehab 325,000 100,000 225,000 Other Rehab 450,000 50,000 400,000 Acquisition 225,000 25,000 200,000 Tenant Assistance 0 0 0 Totals $1,135,000 $175,000 $960,000 Page 6 of 18 M • � 652 COMMUNITY HOUSING DEVELOPMENT ORGANIZATIONS AND HOME The HOME Investment Partnerships Program provides a timely and welcome stimulus to the City of Little Rock to encourage and assist Community Housing Development Organizations (CHDOs) and to residents of the City's low- income neighborhoods to form them and build capacity for housing development. Non - profit community development corporations have not formed and functioned in Little Rock and Arkansas to the extent they have in older industrial areas and larger population centers. The City will reserve $175,000 of its FY 1992 HOME funds for investment in housing to be developed, sponsored, or owned by CHDOs, conformably to 24 CFR 92.300 and 92.301. No greater portion of the City's HOME funds will be reserved from the first year's grant because of the 18- month and 24 -month deadlines, respectively, for commitment of funds to specific CHDOs and to specific projects, but the City's commitment to work with and through CHDOs for housing development is much greater than that minimal allocation might suggest. The City has already obtained a $1.8 million Section 108 loan guarantee for housing development and preservation activities and has set aside $1 million of that for gap financing of projects developed, sponsored, or owned by non - profit community development corporations which will be formed or will receive technical assistance or both from the Local Initiatives Support Corporation (LISC). LISC itself has committed $750,000 and that has been matched by $750,000 from local private sector sources. That is a total of $1.5 million for technical assistance, site control, technical services, and other pre- Page 7 of 18 construction project costs of CHDOs or other community development corporations (CDCs). Thus, a total of $2.5 million is already earmarked (in addition to the HOME set - aside) to assist housing development by neighborhood- based, non - profit corporations in Little Rock. Given that relatively little housing development capacity exists at present among local community organizations, that is a level of available project funding assistance which means no practical limitation of resources for the purpose during a two -year time frame. The City will identify, certify as CHDOs, and enter into � M 653 written agreements with low- income neighborhood -based non - profit corporations to carry out housing development projects within their neighborhoods. The projects may involve acquisition, substantial rehabilitation, or new construction of both rental properties and properties for sale to low- income homebuyers. Due to their neighborhood base the CHDOs will be well- suited to undertake as projects the redevelopment of small single - family residential areas. The City anticipates that projects of that kind will be most attractive and suitable as initial efforts for CHDOs. For that reason no reservation of FY 1992 HOME funds will be made for CHDOs to use in moderate rehab of owner- occupied or investment properties or multifamily CHDO -owned rental properties. (Should a CHDO need funding to develop a multifamily rental property, the City could use some of the other resources mentioned above for the purpose.) CHDOS will be able to offer rental purchase plans to first -time homebuyers and provide community support to cope with social problems and personal Page 8 of 18 654 problems, all of which is difficult or impossible for City government. The City will certify as CHDOs non - profit corporations that are neighborhood -based in one of the planning districts identified in the City's Comprehensive Housing Affordability Strategy (CHAS) as transitional, deteriorating, or disinvested and will allocate to them HOME and other funding for projects in the neighborhood. "Neighborhood- based" means that a majority of the governing board of the CHDO must be residents of the planning district in which it will develop, sponsor, or own housing. CHDOs must meet as well the requirements for a community housing development organization defined in 24 CFR 92.2 and 92.300. The City will provide funding for only one project for any one CHDO out of the FY 1992 HOME grant. "Project" is defined in 24 CFR 92.2 as "a site or an entire building ... or two or more buildings, together with the site or sites on which the building or buildings is located, that are under common ownership, management, and financing and are to be assisted with HOME funds, under a commitment by the owner, as a single undertaking under this part. Project includes all the activities associated with the site and building. If there is more than one site associated with a project, the sites must be within a four block area." The limitation of funding to one project per CHDO per year is expressly intended to encourage focusing of CHDO activities for impact on an area of four square blocks or smaller, to discourage scattered activities, and to foster formation and capacity building of several CHDOs. Page 9 of 18 • • 655 The City may make project- specific technical assistance, site control, and seed money loans to CHDOs conformably to 24 CFR 92.301. It may also provide gap financing for CHDO projects on condition that all budgeted and actual expenditures are reasonable and customary and that the loans will be repaid from project income. The balance of such loans will be reduced to the extent that eventual homebuyers or the CHDO itself, as owner, qualify for a form of HOME housing assistance available from the City and meet the terms under which the City offers it. In other words, a CHDO may repay a given amount on a gap financing loan from the City by qualifying project properties and low- income beneficiaries for Little Rock HOME program deferred payment loans or grants in that amount. In addition, the City will consider, through its normal Community Development Block Grant planning process, CDBG public facilities improvements in a multi -site CHDO project area (up to a four square block area). The types of activity and levels of HOME funding anticipated for CHDOs are tabulated below. As funding for CHDO Projects from several sources is anticipated, the total indicated should provide gap financing for 15 to 18 units. Activity New Construction Substantial Rehabilitation Acquisition Total Page 10 of 18 Proposed Allocation $ 60,000 90,000 25,000 $175,000 M 656 OUTREACH TO MINORITY AND WOMEN -OWNED BUSINESSES It is the policy of the City of Little Rock to utilize minority and women -owned businesses (MBE's / WBE's) to the fullest extent possible in carrying out its Community Development Block Grant activities and other housing programs. The City will continue that endeavor in the HOME Investment Partnerships Program and will utilize that program's special features to develop more effective affirmative actions. Steps to be taken include but are not limited to the following: 1. The City will publish at least annually in the Arkansas Democrat- Gazette and the Arkansas State Press (a minority- oriented weekly) a statement of Little Rock's equal opportunity and affirmative action policy as it pertains to housing programs in general and to the HOME program in particular. (See following section on affirmative marketing.) 2. The City will develop, maintain, and update regularly lists of MBE /WBE general contractors. The City will also develop and maintain lists of MBE /WBE specialty contractors, such as plumbers, electricians, landscape gardeners, and roofers. The City will-develop and maintain lists of MBE /WBE firms which supply goods and services related to housing development and construction, including but not limited real estate agencies, legal counsel, appraisal, financial services, investment banking, insurance and bonds, building materials, office supplies, and printing. These lists Page 11 of 18 M M 657 will be supplied to CHDOs, CDCs, contractors, and owners who are applying for assistance under the HOME Investment Partnership program or who enter into contracts or agreements with the city for HOME - assisted projects. 3. The City will require MBE /WBE outreach plans in all written agreements with CHDOs and owners or sponsors of projects other than owner - occupied rehabilitations administered by the City under technical assistance requests. 4. The City will routinely notify MBE /WBE contractors and suppliers by direct mail of all awards or agreements for multi -unit housing projects, including in the notice the nature of the activity or activities, estimated project costs, the number of units to be developed, and the name and address of the owner, manager, or sponsor. 5. The City's Housing Programs Administrator will have the responsibility to maintain records and make annual reports to the City Manager by way of the Director of Neighborhoods and Planning on MBE /WBE outreach in the City's Housing Programs. The report will include at least the following: (1) A narrative on MBE /WBE outreach actions taken during the quarter Page 12 of 18 • � 658 (2) Statistics on total - participation and MBE /WBE contractor and subcontractor participation in the City's various housing assistance programs during the reporting period (3) The current lists of MBE /WBE contractors and suppliers (4) Plans and recommended changes in the MBE /WBE outreach effort: Page 13 of 1S 659 AFFIRMATIVE MARKETING IN ACCORDANCE WITH THE REGULATIONS OF THE HOME INVESTMENT PARTNERSHIPS PROGRAM (24 CFR 92.361), AND IN FURTHERANCE OF THE CITY OF LITTLE ROCK'S COMMITMENT TO NON - DISCRIMINATION AND EQUAL OPPORTUNITY IN HOUSING, THE CITY OF LITTLE ROCK HAS ESTABLISHED PROCEDURES TO AFFIRMATIVELY MARKET UNITS MADE AVAILABLE FOR RENT OR PURCHASE WITH HOME INVESTMENT PARTNERSHIPS FUNDING. THESE PROCEDURES ARE INTENDED TO FURTHER THE OBJECTIVES OF TITLE VIII OF THE CIVIL RIGHTS ACT OF 1968 AS AMENDED BY THE FAIR HOUSING AMENDMENTS ACT, EXECUTIVE ORDER 11063, AND ALL OTHER APPLICABLE FAIR HOUSING LAWS. THE CITY OF LITTLE ROCK BELIEVES THAT INDIVIDUALS OF SIMILAR ECONOMIC LEVELS IN THE SAME HOUSING MARKET AREA SHOULD HAVE AVAILABLE TO THEM A LIKE RANGE OF HOUSING CHOICES REGARDLESS OF THEIR RACE, COLOR, RELIGION, SEX, NATIONAL ORIGIN, OR HANDICAP. To inform the public about the City's affirmative action policy the City will cause the foregoing statement to be published at least once annually in the Arkansas Democrat - Gazette and the Arkansas State Press. The Equal Housing Opportunity logotype or slogan will be included in all press releases and informational materials for the public. To inform owners the policy statement will be bound in application packets, and owners will be informed of the City's policy on affirmative action in any advertisements or promotional materials. As record- keeping requirements and compliance with fair housing laws will be part of all assistance agreements with Page 14 of 18 M • � 060 owners, the City's policy will be discussed with owners as part of the application process. To inform potential tenants and homebuyers the City will include the policy statement in application packets and will print the Equal Housing Opportunity slogan or logotype on forms and instructions. In addition the City will make available in the HOME administration reception area literature on Fair Housing laws and the rights of minorities and women to equal housing opportunity. Every owner and agency entering into an agreement with the City to fund a project wholly or in part with HOME money must agree to abide by applicable fair housing and equal opportunity laws and regulations, to use a newspaper of general circulation to advertise vacancies or properties available for purchase, to use the Equal Housing Opportunity slogan in advertisements and written announcements, to maintain records on the racial and gender identities of applicants and tenants, and to report such data annually to the City on request. Every CHDO or subrecipient participating in the HOME program and every owner of a project comprised of five or more units to be assisted under the program must develop an- Affirmative Marketing Plan acceptable to the City's Housing Programs Division as meeting requirements of the City and of Federal regulations for the HOME program. This plan is to be incorporated into a legally binding agreement with the City. The Affirmative Marketing Plan must be directed toward obtaining applications Page 15 of 18 � M from persons of the racial group least likely to apply to buy or lease the assisted property and must provide at least the following: 661 1. A written determination of the racial group from which applicants are least likely to come and to which special outreach is to be directed. 2. Whenever more than 50 percent of current tenants of a project are of a minority group or the census block group in which the project is located is more than 51% minority, the owner will a. Use newspapers and other media of general circulation or orientation to advertise units or properties available; and, b. Specify at least two social service agencies which serve both white and non -white clients or religious institutions with majority members to which the owner will send letters informing them approximately when the housing will be available and of the intention to lease or sell on the same terms to both majority and minority applicants. Among such agencies are: Family Service Agency of Central Arkansas, St. Francis House, Inc., Catholic Social Services, Presbyterian Urban Council, Arkansas Conference of Churches and Synagogues, and various churches. Page 16 of 18 LL:1 662 3. Whenever less than 30 percent of the current residents of the project site are of the minority or the immediate vicinity of the site is predominantly populated by persons of the racial majority, the owner will use the Arkansas State Press as well as newspapers of general circulation to advertise availability of assisted units. (Other measures may be taken, of course, such as notification of churches with a predominantly minority membership.) 4. The owner will display the Equal Opportunity logo and /or slogan in all advertising and communications concerning HOME funded projects. The City's Housing Programs Division will collect and keep records of the racial and gender identities of all applicants for assistance, whether successful or unsuccessful, who apply directly to the City. It will require subrecipients, owners, agents, and others through whom HOME assistance may be provided indirectly to keep similar records. The City will keep and will require subrecipients, owners, and other agents to keep copies of advertisements, press releases, letters to fair housing groups and social service agencies, promotional materials, and other documents to demonstrate good faith effort toward affirmative marketing. The City's Housing Programs Administrator will be responsible for an annual assessment of affirmative marketing efforts of the City and of all individuals and agencies which the City has required to implement an affirmative marketing plan as Page 17 of 18 M 963 part of an agreement for HOME program assistance. Results will be tabulated to show total participation, minority participation, female- headed household participation, and participation by persons with disabilities in each project assisted with HOME funds. In addition, a check -form will list all of the actions required as described herein and the records will be examined to determine whether the required actions have or have not been taken in each instance. Where a required action has not been taken or there is no record to document it, the individual or agency will be given 30 days to evidence corrective action and will be required for a period of one year to notify the City when an affirmative action step is taken, such as placement of a vacancy advertisement or the writing of a letter of notice to a fair housing agency. Should no timely corrective actions be taken, the City will disqualify the individual or agency for further participation in the HOME program. A report on the annual assessment of affirmative marketing efforts in the HOME program will be submitted to the City Manager and a copy will be kept on file. organizational Structure The agency responsible for the administration of HOME Investment Partnerships program is: City of Little Rock Housing Programs 615 West Markham, Room 106 Little Rock, AR 72201 Telephone: (501) 371 -6825 Contact: Edwin Stanfield, CDBG Program Administrator Page 18 of 18 APPEND IX A 664 laaJIS LUG 665 CERTIFICATIONS HOME PROGRAM DESCRIPTION In accordance with the Home Investment Partnerships Act and with 24 CFR 92.150 of the Home Investment Partnership Program Rule, the participating jurisdiction certifies that: (a) Before committing any funds to a project, it will evaluate the project in accordance with the guidelines that it adopts for this purpose and will not invest any more HOME funds in combination with other Federal assistance than is necessary to provide affordable housing; (b) If the participating jurisdiction is not on the list published under 24 CFR 92.51 and intends to do new construction to facilitate a neighborhood revitalization program; For each neighborhood revitalization program, 1. Rehabilitation is not the most cost- effective way to meet the participating jurisdictions need to expand the supply of affordable housing within the neighborhood and the participating jurisdictions housing needs, within the neighborhood, cannot be met through rehabilitation of the available housing stock; and 2. The program of new construction is needed to facilitate a neighborhood revitalization program that-emphasizes rehabilitation of substandard housing for rental or homeownership opportunities by low- income and moderate - income families in an area designated by the jurisdiction; 3. The housing is to be located in a low - income neighborhood; 4. The housing is to be developed, owned, or sponsored by a community housing development organization or a public agency; and S. The number of housing units to be constructed with HOME funds does not exceed 20 percent of the total number of housing units in the neighborhood revitalization program that are assisted with HOME funds; unless M � M 606 (a) The housing is to be located in a severely distressed area within the neighborhood with large tracts of vacant land and abandoned buildings; or (b) The housing is to be located in an area within the neighborhood with an inadequate supply of existing housing that can economically be rehabilitated to meet identified housing needs; or (c) The new construction is required to accomplish the neighborhood revitalization program. (c) If the participating jurisdiction is not on the list published under 24 CFR 92.51 and intends to do new construction on the basis of special needs; For each project, 1. Rehabilitation is not the most cost - effective way to expand the supply of afforcfable housing for the special need and the special need cannot be met through rehabilitation of the available housing stock; 2. Based on objective data in its annual approved housing strategy, a high priority need for such housing exists in the jurisdiction; and there is not a supply of vacant, habitable, public housing units in excess of normal vacancies resulting from turnovers that could meet the specified need. 3. The HOME funds are used for new construction of one or more of the following: a. Housing for families of five or more persons; b. Housing for persons with disabilities; C. single room occupancy housing; and d. Housing that is necessary to further the desegregation or racial deconcentration of housing within the jurisdiction pursuant to a court - approved settlement agreement, compliance agreement, or voluntary plan approved by HUD if tenant -based assistance is not sufficient to meet the specified need within a reasonable time. (d) If the participating jurisdiction intends to provide tenant - based rental assistance; The use of HOME funds for tenant -based rental assistance is an essential element of the participating jurisdiction's annual approved housing strategy for expanding the supply, 2 i 667 affordability, and availability of decent, safe, sanitary, and affordable housing. (e) The submission of the program description is authorized under State and local law (as applicable), and that it possesses the legal authority to carry out the Home Investment Partnerships (HOME) Program, in accordance with the HOME regulations; (f) It will comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, implementing regulations at 49 CFR part 24 and the requirements of 24 CFR 92.353; (g) It and State recipients, if applicable, will use HOME funds pursuant to its Comprehensive Housing Affordability Strategy (CHAS) approved by HUD and all requirements of 24 CFR Part 92; (h) It will or will continue to provide a drug -free workplace by :. 1. Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the grantee's workplace and specifying the actions that will be taken against employees for violation of such prohibition; 2. Establishing an ongoing drug -free awareness program to inform employees about - (a) The dangers of drug abuse in the workplace; (b) The participating jurisdiction's policy of maintaining a drug -free workplace; (c) Any available drug counseling, rehabilitation, and employee assistance programs; and (d) The penalties that may be imposed upon employees for drug abuse violations occurring. in the workplace; 3. Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph (1); 4. ...Notifying the employee in the statement required by paragraph (1) that, as a condition of employment 3 M M M M � under the grant, the employee will -- (a) Abide by the terms of the statement; and (b) Notify the employee in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than five calendar days after such conviction; 5. Notifying the agency in writing, within ten calendar days after receiving notice under paragraph 4(b) from an employee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, including position title, to every grant officer or other designee on_whose grant activity the convicted employee was working, unless the Federal agency has designated a central point for the receipt of such notices. Notice shall include the identification number(s) of each affected . grant; 6. Taking one of the following actions, within 30 calendar days of receiving notice under paragraph 4(b), with respect to any employee who is so convicted -- (a) Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or (b). Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal State, or local health, law enforcement, or other appropriate agency; 7. Making a good faith effort to continue to maintain a drug -free workplace through implementation of paragraphs 1, 2, 3, 4, 5 and 6. 8. The grantee may insert in the space provided below the sites(s) for the performance of work done in connection with the specific grant: 4 MOO (i) Place of Performance (Street address, city, county, state, zip code) To the best of its knowledge and belief: 1. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress in connection with the awarding of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; 2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence and 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 this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form -LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; and 3. It will require that the language of paragraph (h) of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. 669 Attachment B Revised Estimate of Use of HOME Program Funds Activity /Category New Construction Substantial Rehab Other Rehab Acquisition Sub - Totals Administration Totals Total $ $ 135,000 378,000 450,000 100,000 $1,063,000 72,000 $1,135,000 Rental $ $ 0 100,000 50,000 0 $ 150,000 $ 150,000 owner $ $ 135,000 278,000 400,000 100,000 $ 913,000 $ 913,000 670