General Program Administrative Requirements · Web viewThe replacement unit must meet all required NYS and/or Local Code requirements as applicable for the type of replacement to

MOBILE & MANUFACTURED HOME REPLACEMENT PROGRAM (MMHR)

2016 State Program Year Funds

Administrative PlanManufactured Home Replacement

This Administrative Plan (Plan) describes the policies and procedures that must be followed by a Local Program Administrator (LPA) in the implementation of its State funded MMHR Program. The Plan is set up in three general sections: Administrative Requirements, Project Requirements and Financial Management Requirements.

This Plan contains State requirements as well as proposed LPA procedures for the administration of an MMHR Program.

LPAs customize this Plan through responding to questions that are inserted within the document in italics, annotated with a “Q” bullet in front of each question.

The responses to the questions are a scored factor in the LPAs application for MMHR funds.

Office of Community Renewal (OCR) approval of the responses submitted in this Plan is required prior to contract execution. Changes to this Plan are subject to prior approval by OCR.

Policies and procedures contained in this Plan, as approved at contract execution by the OCR, must be followed and will be enforceable along with all aspects of the contract.

12016 MMHR State Program Year Funds

Contents1 General Program Administrative Requirements.................................................................4

1.1 Use of Funds...............................................................................................................4

1.1.1 Eligible Activity......................................................................................................4

1.1.2 Program Budget....................................................................................................5

1.1.3 Program Schedule................................................................................................6

1.1.4 Staffing..................................................................................................................7

1.1.5 Eligible Project Costs, Project Soft Costs and Administrative Costs.....................7

1.1.6 Homeowner Eligibility............................................................................................7

1.1.7 Equal Employment Opportunity – Minority and Women Owned Business Enterprises (MWBE).............................................................................................7

1.1.8 Conflict of Interest.................................................................................................8

1.2 Written Agreements, Regulatory Term & Legal Documents........................................8

1.3 Recordkeeping..........................................................................................................10

1.4 Reporting...................................................................................................................10

1.4.1 Quarterly & Final Reports....................................................................................10

1.5 LPA Monitoring..........................................................................................................11

1.5.1 Project Records..................................................................................................11

1.5.2 Post-Completion Monitoring................................................................................12

1.6 OCR Monitoring of LPAs...........................................................................................13

2 Project Requirements.......................................................................................................14

2.1 Eligibility.....................................................................................................................14

2.1.1 Project Assistance Limits....................................................................................14

2.1.2 Eligible Forms of Ownership...............................................................................14

2.1.3 Ineligible Forms of Ownership.............................................................................14

2.1.4 Income eligibility..................................................................................................14

2.1.5 Feasibility of Assistance......................................................................................15

2.2 Property Eligibility......................................................................................................15

2.2.1 Property Type.....................................................................................................15

2.3 Property Standards....................................................................................................15

2.3.1 Lead Based Paint (LBP)......................................................................................16

2.3.2 Accessibility, Reasonable Accommodations and Modifications..........................17


2.4 Scope of Work & Cost Estimate................................................................................17

2.5 Environmental Review...............................................................................................17

2.6 Project Set up and Completion..................................................................................18

2.7 Insurance Requirements............................................................................................18

2.8 Procurement..............................................................................................................19

2.9 Construction Contracts..............................................................................................20

2.10 Construction Management.........................................................................................20

2.10.1 Inspections..........................................................................................................20

2.10.2 Final Code Inspection.........................................................................................21

2.11 Relocation..................................................................................................................21

3 Financial Management Requirements..............................................................................22

3.1 Disbursements...........................................................................................................22

3.2 Recaptured Funds.....................................................................................................23

3.3 Contract Closeout......................................................................................................23


1 General Program Administrative Requirements

1.1 Use of Funds

1.1.1 Eligible Activity

a. Provide an existing homeowner of a dilapidated mobile or manufactured home with the replacement of that home with a new manufactured, modular or site built home.

b. The unit to be replaced must be sited on land owned by the homeowner.

c. The property must be the primary residence of the homeowner.

d. The new replacement unit, if a manufactured home, must be installed according to the Manufactured Home Construction and Safety Standards at 24 CFR Part 3280, Federal HOME Program Permanent Foundation Requirements at 24 CFR Part 92.251(e) and HTFC Design Guidelines as applicable upon completion.

e. The replacement unit must meet all required NYS and/or Local Code requirements as applicable for the type of replacement to be performed (manufactured, modular or site built) at completion.

f. All replacement units (manufactured, modular or site built) shall be Energy Star Rated for energy efficiency.

g. The cost of demolition and removal of the dilapidated unit is an eligible use of program funds.

h. Rehabilitation of a manufactured home unit is not an eligible activity.

i. The home must continue to be owned and occupied by the applicant household as defined by the forms of ownership identified in Section 2.2.4 of this Plan throughout the Period of Affordability (POA).

Q1. Respond in the order of the question, please tell us: what your agency plans to do with MMHR funds, what type of housing will be replaced (manufactured, modular or site built) with these funds, who are your partners, what other funds are in the program, describe your specific interaction with the applicant, describe what is already in place to begin the program, describe any unique features of program design and


describe what will make your agency successful in completing the program within 3 years.Answer limited to 6400 characters

Q2. Describe the priority household type(s), including special needs or other target populations that your program will assist.Answer limited to 500 characters

1.1.2 Program Budget

The Program Budget is approved prior to contract execution and is included as an attachment to the contract and this Plan. It is enforceable along with all contract provisions. The budget must be in compliance with the MMHR Program Budget Policy. A budget is created using the MMHR Budget Worksheet available on the HCR Program website at http://www.nyshcr.org/Funding/.

A. The total budget cannot be exceeded. MMHR funds will not be disbursed over the amount originally approved.

B. A variation from the budget in any line item by more than 10% requires OCR prior approval. Offsetting decreases to MMHR funds from another line item is required.

C. Reimbursement for amounts over any line item will be withheld until approved by OCR.

D. Requests for budget revisions should be submitted to the LPAs assigned Program Manager.

E. Requests for reimbursement must include a status of line items against the program budget.

Q3. In detail, please describe what type of replacement will be performed (manufactured, modular or site built) and reason for choice.Answer limited to 800 characters

Q4. Describe the total amount of State MMHR funds to be invested per unit.Answer limited to 400 characters

Q5. Describe the total hard costs to replace the unit.Answer limited to 400 characters


http://www.nyshcr.org/Funding/

Q6. Describe the demolition process for the unit to be replaced, including addressing lead based paint and/or asbestos. Describe where and how you will dispose of the unit. Answer limited to 400 characters

1.1.3 Program Schedule

A. The Program Schedule is approved prior to contract execution and is included as an attachment to the contract and this Plan. It is enforceable along with all other contract provisions.

B. The Schedule contains progress milestones that the LPA must report on a quarterly basis to OCR. Failure to achieve milestones could result in suspension of funds, increased monitoring and possible required changes to program administration. Changes to the quarterly milestones that need to be met require OCR approval.

C. The term of the contract is 3 years (12 quarters) from the date of execution of the contract.

D. Requests for extended time to complete the program must be approved by OCR.

Q7. Complete the following 12 quarter plan for unit production:

Period Estimated # of applicants qualified for assistance

Estimated # of units in process

Estimate # of units completed

Estimate total MMHR expenditures

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 5 Quarter 6 Quarter 7 Quarter 8 Quarter 9Quarter 10Quarter 11Quarter 12TOTALS


1.1.4 Staffing

Q8. Identify staff (by name and title) to be paid with MMHR administrative or project delivery funds and describe their experience (within the last 3 years) of working with a manufactured, modular or site built home replacement program.Answer limited to 3000 characters

1.1.5 Eligible Project Costs, Project Soft Costs and Administrative Costs

A. Administrative costs are costs that the LPA incurs in order to administer or manage its overall MMHR program. LPAs will be able to access 7.5% of their award for eligible administration costs. Consultants hired to administer the program on behalf of an LPA must be paid with administrative funds.

Project soft costs are costs incurred by the LPA that implement and deliver a specific MMHR assisted unit. Project soft costs are required to be tied to a specific address and are added into the per unit total of MMHR funds invested in the unit. Costs charged as project soft costs may not be charged to Administration.

B. Eligible costs are described in the MMHR Budget Policy. The program budget must adhere to the policy. The policy and MMHR budget worksheet are available on the HCR website at http://www.nyshcr.org/Funding/.

C. Administrative costs paid with MMHR funds may not be charged to the owner or included in the owner’s deferred payment loan (DPL). Only include hard and soft costs in the amount of the DPL.

1.1.6 Homeowner Eligibility

A. At the time of application, document that the homeowner:i. Owns the property

ii. Is current on property taxes & fees owed to the municipality

iii. Maintains adequate and has current on homeowner’s and/or flood insurance as necessary and premiums are paid up to date.

•1.1.7 Equal Employment Opportunity – Minority and Women owned Business

Enterprises (MWBE).

A. EEO/MWBE and Affirmative Action Policy: under Article 15A of the New York State Executive Law, all award recipients and their contractors are required to comply with



the Equal Employment Opportunity provisions of Section 312 of that Article. All contractors and awardees are required to make affirmative efforts to ensure that New York State Certified Minority and Women-Owned Business Enterprises are afforded opportunities for meaningful participation in projects through inclusion on the list of contractors funded by HTFC pursuant to Section 313 of the Article.

B. Please visit NYS Empire State Development’s Division of Minority & Women Business Development website for a directory of certified Minority and Women-Owned Businesses: http://www.esd.ny.gov/MWBE.html.

1.1.8 Conflict of Interest

A. No person(s) who exercises or has exercised any functions or responsibilities with respect to the activities being assisted with MMHR funds or who is or was in a position to participate in the decision-making process or gain inside information related to MMHR assisted-activities may obtain a financial interest or financial benefit from a MMHR assisted activity or have a financial interest in any contract, subcontract, or agreement with respect to the MMHR assisted activity, or the proceeds from such activity, either for themselves or those with whom they have business or immediate family ties during their tenure or for one year thereafter.

A. Further, no officer, employee, agent, or consultant of a covered person or entity may occupy a MMHR assisted affordable housing unit in the Program.

B. Exceptions: requests for exceptions to this policy must be submitted to the OCR in advance of selection. Upon written request, exceptions may be granted by the OCR on a case-by-case basis. In the request to the OCR, the LPA must disclose the full nature of the conflict, submit proof that the disclosure has been made public and also provide a legal opinion stating that there would be no violation of State or Local law if the exception were granted.

1.2 Written Agreements, Regulatory Term & Legal Documents

A. All households receiving assistance must execute a written agreement for MMHR assistance with the LPA and Contractor. This agreement must include details for the homeowner regarding the amount of assistance, what that assistance will pay for, the regulatory and/or deferred payment loan (DPL) terms and conditions and a schedule for completion. The template for this agreement must be approved by OCR at contract execution. This agreement must be executed with the homeowner, LPA and contractor, prior to setting up a unit to be assisted with MMHR funds.


http://www.esd.ny.gov/MWBE.html

B. Financial assistance to the homeowner shall be one hundred percent (100%) grants in the form of a DPL. Homeowners will execute a ten (10) year declining balance lien in the form of a note and mortgage, duly filed at the County Clerk’s office where the project is located.

C. No interest or repayments will be required on the DPL unless the property is sold or transferred before the regulatory term expires. In such cases, funds will be recaptured from the proceeds of the sale of the home, on a declining balance basis, unless an income eligible immediate family member accepts ownership of and resides in the home for the remainder of the regulatory term. The principal balance of the DPL will be reduced by 1/10th, on each anniversary date of when the DPL was executed. No interest or repayments will be required on the DPL unless the property is sold or transferred before the regulatory term expires.

D. LPAs must secure the MMHR funds invested by placing a deferred payment loan (DPL) against the property for a 10 year period, regardless of the amount of MMHR funds invested. LPAs must use the OCR provided DPL to secure the MMHR investment, no other forms will be accepted. The template for the DPL will be made available to LPAs at contract execution.

E. The LPA must record the DPL in the Office of the County Clerk in which the unit is located and have the original document returned to the HTFC at the following address:

Housing Trust Fund Corporation (HTFC)Office of Community Renewal – 2016 State MMHRHampton Plaza 4th Floor South38-40 State StreetAlbany, New York 12207

F. The OCR will provide LPAs with an affidavit of exemption at contract execution that will exempt State filing fees for recording the DPL.

G. The DPL must be prepared by the LPA and signed by the homeowner prior to beginning of any construction activities to remove the unit to be replaced.

H. The DPL must be recorded immediately upon completion of construction activities and after final sign off by the homeowner, the contractor and LPA that all work has been completed to satisfaction and the new unit is documented to meet NYS and/or Local Code.

Q9. Describe how the LPA will incorporate the HTFC DPL terms and conditions into the program materials.Answer limited to 600 characters


Q10. Describe the process for ensuring the homeowner understands the DPL terms and conditions.Answer limited to 600 characters

Q11. Explain the schedule and process for the LPA to publicly record the DPL.Answer limited to 600 characters

Q12. Describe what the LPA will do regarding the unrecorded, homeowner-signed DPL, if the MMHR costs change from what was originally agreed to by the homeowner.Answer limited to 600 characters

1.3 Recordkeeping

A. Program files must be kept to document compliance with all of the requirements of the contract and this Plan. The LPA shall retain all applicable administrative and project records to include as applicable: property description and location, copies of written agreements, records regarding project requirements, compliance with property standards and on-going inspections, information about contractors and vendors, invoices and payment records, related correspondence, budgets and a schedule for completion or other information as requested by OCR.

B. The LPA will maintain records of the use of funds pursuant to the contract, submit reports and cooperate with inspections by OCR staff as required.

C. The LPA shall provide to OCR any document, report or information that OCR deems necessary.

D. Representatives of OCR, or their designees may examine any records or information pursuant to the contract

1.4 Reporting

1.4.1 Quarterly & Final Reports

A. LPAs must submit quarterly reports on current progress as compared to the schedule and milestones contained in the contract and this Plan.

B. The quarterly report will be made available at the time of contract execution.


C. At the end of the contract term and upon final completion of all units to be assisted in the program, the LPA will be sent a completion report from their Program Manager detailing the units assisted and funds expended. Any remaining funds not expended will be de-obligated and re-allocated according to the State’s Action Plan. Issuance of this report will terminate the contract and officially close out the program.

1.5 LPA Monitoring

A. The LPA is responsible for ensuring full compliance of every project with MMHR requirements and for monitoring all projects and maintaining records of monitoring as required by the OCR.

During manufactured housing replacement, the LPA must monitor construction activities to ensure implementation of the construction contract and final completion of the replacement unit (manufactured, modular or site built).

1.5.1 Project Records

A. The OCR may monitor the LPA annually through desk reviews and conduct onsite monitoring as needed throughout the contract term.

B. Records demonstrating compliance with MMHR requirements are to be retained in the project file. Required documentation may include the following:

i. Application

ii. Income qualification certification

iii. Scope of work and cost estimate

iv. Procurement of contractors

v. Certificate of construction completion signed by all parties

vi. Progress property inspection reports including final NYS and/or Local Code inspection report

vii. Insurance certificates

viii. Written agreements with homeowner, LPA and contractor

ix. DPL Filing receipts along with copy of the executed HTFC DPL


C. This list is not all-inclusive. Contact your Program Manager for detailed information.

1.5.2 Post-Completion Monitoring

The following provides a summary of the annual monitoring requirements for MMHR assisted owner-occupied housing and is applicable throughout the POA:

A. After replacement, during the 10 year POA, the LPA must monitor to ensure the homeowner still resides in the assisted unit as principal residence.

B. The LPA must notify the OCR if the unit will transfer title during the POA or if the unit will be assumed by an immediate family member.

C. If funds are recaptured from the DPL due to not completing the POA, the LPA must return the recaptured funds to the HTFC within 30 days of receipt to be reallocated for future use in the MMHR Program.

D. The LPA must notify OCR of any expected sales of MMHR assisted units or non-compliance with residency requirements related to the HTFC DPL throughout the POA.

i. The LPA must assist the OCR to work with MMHR assisted households when requesting refinancing, subordination, request for payment and satisfactions of the HTFC DPL.

ii. A 10 year POA applies to all units assisted with MMHR funds, regardless of the amount of MMHR funds invested in the unit.

iii. The MMHR funds must be recaptured if the MMHR assisted unit is not occupied by the homeowner as principal resident during the POA. The homeowner written agreement must document the recapture provisions.

iv. The HTFC DPL must be used to secure the MMHR investment and replaces the LPA with the HTFC as the mortgagee.

E. The original recorded DPL document is to be returned to:

Housing Trust Fund Corporation (HTFC)Office of Community Renewal – 2016 State MMHR ProgramHampton Plaza 4th Floor South38-40 State StreetAlbany, New York 12207


F. LPA requirements for continued affordability monitoring:

i. Annually, the LPA must verify that the owner continues to reside in the MMHR assisted unit throughout the POA. The LPA must annually mail a letter to the homeowner requesting verification that the home is occupied by the MMHR assisted applicant. The mailing envelope must include the following: “Address Correction Requested/Do Not Forward”.

ii. The Homeowner’s Insurance policy must include the HTFC as a loss payee/additional insured during the POA.

iii. Annual documentation of principal residency and insurance requirements must be maintained in the project file.

1.6 OCR Monitoring of LPAs

A. HCR/OCR will monitor the LPA annually through desk audits, review of quarterly reports and may conduct risk based, on-site monitoring, as needed throughout the contract term.

i. LPAs are required to send in quarterly reports documenting program progress. The data from the quarterly reports will be used to inform the OCR if an LPA is at risk of not completing the program under budget and on time. Programs determined to be at high risk that are not performing successfully will be monitored more frequently and may require on-site monitoring.

ii. Other Monitoring of LPAs includes: routine processing of disbursement requests and other paperwork submitted to the OCR provides additional opportunities to monitor program activities.

iii. Requests for reimbursement are examined to ensure that reimbursement is only for approved program expenditures. The program will pay disbursements on a cost incurred expense basis, meaning that if the cost has occurred, the LPA may invoice the program.

iv. If a disbursement request does not have proper back up documentation or if the information submitted is problematic, the disbursement request is returned to the LPA for correction.


2 Project Requirements

2.1 Eligibility

A. Eligible costs are those permitted by the MMHR Program Budget Policy available on the HCR website at http://www.nyshcr.org/Funding/ and as approved by OCR at contract execution. Please review the policy for specific eligible and in-eligible costs.

2.1.1 Project Assistance Limits

D. MMHR funds provided to any owner-occupied MMHR replacement unit may not exceed $100,000 per unit, inclusive of all costs.

2.1.2 Eligible Forms of Ownership

A. The LPA must document that the assisted household owns the sub-standard manufactured unit and that it is sited on land owned by the homeowner.

B. The ownership interest may be subject only to mortgages or other liens or instruments securing debt on the property or any other restrictions or encumbrances that do not impair the good and marketable nature of title to the ownership interest.

2.1.3 Ineligible Forms of Ownership

A. Right to possession under a contract for deed, installment contract, or land contract (pursuant to which the deed is not given until the final payment is made) is not ownership.

Q13. Describe the legal documents the LPA will require of the homeowner to verify ownership.Answer limited to 600 characters

2.1.4 Income eligibility

A. All households assisted must be under 80% of area median income for the county in which the project is located, as calculated by the United States Department of Housing and Urban Development.

B. Income certifications must signed and dated by the LPA and homeowner.

2.1.5 Feasibility of Assistance

A. Before committing funds to a project, the LPA must ensure that no more MMHR funds are invested than needed to provide quality, affordable, and financially viable housing.



i. The LPA must ensure that all sources are firmly committed and the costs are necessary and reasonable.

ii. The owner is reasonably expected to be able to handle all existing obligations with respect to ownership including mortgage(s), property taxes, insurance and maintenance throughout the POA.

B. Evidence and documentation of this analysis must be maintained in the project file.

2.2 Property Eligibility

2.2.1 Property Type

A. Owner-occupied, dilapidated, sub-standard mobile or manufactured housing unit.

Q14. Describe the LPAs definition of a sub-standard manufactured or mobile housing unit.Answer limited to 200 characters

2.3 Property Standards

A. The LPA shall meet the property standards as applicable for MMHR assisted units to ensure that the housing is decent, safe and sanitary and meets all applicable New York State and/or Local code requirements upon completion.

B. If a manufactured home replacement unit, the LPA must install the unit according to the installer’s specifications, the requirements below and HTFC MMHR Design Guidelines as applicable.

C. The replacement manufactured unit, at a minimum, must meet the following standards:

i. The new unit must meet the Manufactured Home Construction and Safety Standards at 24 CFR Part 3280 (which preempt State and Local codes covering the same aspects of performance for such housing).

ii. Installation must comply with applicable State and Local laws or codes, or in the absence of such laws or codes, the manufacturer’s instructions for installation.

iii. The unit must installed be on a permanent foundation meeting the requirements of 24 CFR 203.43f(c)(i) and HTFC design standards guidelines which require a block or poured permanent foundation rather than a pier foundation.

iv. The unit must be connected to permanent utility hookups.15


v. If the replacement unit is modular or site built, the unit must meet all NYS and or Local Code requirements for new construction.

D. The sub-standard mobile or manufactured unit must be demolished and/ or transported to be disposed of in a disposal/recycling facility that is certified by the NYS Department of Conservation (DEC) to receive, process and recycle and/or dispose of mobile/manufactured home components.

E. In regard to Asbestos Containing Materials (ACM’s), the LPA is not required to remove asbestos prior to disposal of the sub-standard unit if no demolition is necessary, but must ensure disposal of the unit in an NYS Department of Conservation (DEC) accredited disposal facility. The credentialed facility will perform the required techniques for identifying and handling ACM’s as a part of the disposal in their facility.

F. If demolition of the sub-standard unit is necessary, LPA must adhere to the NYS Dept. of Labor Code Rule 56 requirements for asbestos testing and removal prior to disposal.

Q15. Describe the process and schedule to replace the typical substandard unit with a new manufactured home.Answer limited to 500 characters

Q16. List the name of the DEC accredited disposal facility that the LPA or contractor intends to use to dispose of the substandard unit.Answer limited to 200 characters

Q17. Describe temporary relocation and other fees related to relocation (storage) that are expected per unit.Answer limited to 500 characters

2.3.1 Lead Based Paint (LBP)

A. Manufactured home replacement activity does not require a LBP risk assessment or LBP testing for the unit that is being disposed of and/or going to be demolished. The new unit also will not be required to be tested for LBP.

B. The substandard unit to be demolished must be disposed of in a disposal/recycling facility that is certified by the NYS Department of Conservation (DEC) to receive, process and recycle and/or dispose of mobile/manufactured home components.


2.3.2 Accessibility, Reasonable Accommodations and Modifications

A. The LPA must work with any household with accessibility needs to address those needs as part of the scope of work. Accommodations and modifications to address accessibility needs are an eligible cost with MMHR funds.

2.4 Scope of Work & Cost Estimate

A. LPAs must develop a scope of work and cost estimate in sufficient detail to be the basis for inspection to determine compliance with the property standards and manufactured home replacement requirements. The LPA must prepare a written cost estimate for the manufactured home replacement, after determining that costs are reasonable.

Q18. Describe how the scope of work will be prepared, by whom and the per-unit cost to complete.Answer limited to 800 characters

Q19. Describe how the cost estimate will be prepared, by whom and per unit cost to complete.Answer limited to 800 characters

2.5 Environmental Review

A. Prior to the commitment or expenditure of MMHR program funds, the environmental effects of each activity must be assessed in accordance with the State Environmental Quality Review Act (SEQR). LPAs must first submit the MMHR Environmental Compliance Checklist and Program Description Form, and develop appropriate, program-specific environmental review procedures. Both forms, as well as a step-by step guide, the Environmental Compliance Checklist Handbook, are available on the HCR MMHR Program website. After the HTFC Environmental Analysis Unit (EAU) has reviewed the completed Environmental Compliance Checklist and Program Description Form, the LPA will receive a determination letter that provides guidance on how to proceed.

B. The LPA will then be responsible for performing and documenting the program’s specific environmental review procedures for each building project or other activity undertaken by completing a building specific Environmental Compliance Checklist. The building specific or activity specific checklists must be submitted to OCR with Project Set ups to formally commit MMHR program funds. The Program Manager assigned by the OCR will also review compliance with these procedures.

•

2.6 Project Set up and Completion

MMHR Project Set Up and Completion forms will be made available to LPAs at contract execution.


A. A project commitment can be made and the project set up when:

i. The unit has received environmental approval

ii. A budget and schedule have been established

iii. The LPA and owner have executed a written agreement that details the terms and conditions for the MMHR assistance.

iv. The construction contract has been let and the work is scheduled to start.

v. The HTFC DPL has been executed.

B. A project is completed when:

i. All construction work has been performed.

ii. The project complies with the required property standards.

iii. The project complies with NYS and/or Local Code requirements.

iv. The homeowner, LPA and Contractor have signed a statement that all construction activity is complete and satisfactory according to program requirements.

v. The final drawdown of MMHR funds has been disbursed for the unit.

vi. The HTFC DPL has been recorded and the documents have been forwarded to HTFC.

2.7 Insurance Requirements

A. As a condition of the award of MMHR funds, LPAs are required to obtain and maintain proper insurance and fidelity bonds. During the term of the contract, the LPA shall take all adequate measures to safeguard against the risk of liability for injuries or death of employees of the LPA, contractors and subcontractors, and any other persons.

B. The LPA shall provide HTFC with a certificate for comprehensive general liability coverage in a minimum amount of one million dollars ($1,000,000) naming the HTFC and the State of New York as additional insured/loss payee.


C. Fidelity bond/crime coverage in an amount of $50,000 naming the HTFC as loss payee, together with certificates for automobile insurance (if applicable), fire insurance, workers’ compensation and disability benefits. The LPA must also extend these insurance requirements to contractors hired under the contract.

D. All insurance certificates shall be with a New York State licensed carrier of insurance rated “A” or higher. At a minimum, copies of the following must be provided to the OCR prior to the execution of any contracts:

A Certificate of General Liability Insurance Workers’ Compensation and Disability Insurance Fire and Casualty Insurance A Fidelity Bond in the amount of $50,000

E. The Housing Trust Fund Corporation (HTFC) must be named as loss payee and/or as additional insured on the homeowner’s insurance policy in accordance with the contract requirements.

2.8 Procurement

A. In a manufactured housing replacement program, there are likely to be contracts let for the construction and installation of the manufactured unit, and perhaps some onsite work with respect to foundations and utilities. This section applies to any contract let for such services.

B. The LPA is the “procurer” that effectively controls the decision of who gets the contract.

C. The LPA must receive a minimum of 3 bids for all procured projects to be paid with MMHR funds and may select the lowest, responsible bid.

D. Labor related contract provisions may be applicable, such as State MWBE requirements.

E. The LPA is responsible to ensure an adequate level of competition in bidding to establish cost reasonableness.

Q20. Describe how the LPA will procure contractors and establish cost reasonableness.Answer limited to 800 characters


2.9 Construction Contracts

A. A contract must be executed with each contractor providing services.

B. The homeowner, LPA and contractor must be signatories to the contract.

The LPA role in the contract is as a third party that is able to perform construction progress inspections, approve payments and mediate disputes.

C. LPAs must hold back 10% of the final payment to the contractor until after final completion of construction work and all required documentation has been submitted.

D. The homeowner, LPA and the contractor must sign off that the work has been completed satisfactorily and meets all program requirements.

E. LPAs must require that all contractors sign a release of lien form for all construction activity completed and paid for with MMHR funds.

2.10 Construction Management

2.10.1 Inspections

A. MMHR construction activity related to the removal and replacement of the sub-standard unit requires progress and final inspections to determine that work was done in accordance with the work scope, contract and property standards.

B. All progress and final payments to contractors must be signed off by the LPAs construction professional, the homeowner and contractor.

Q21. Describe the progress and final inspection procedure.Answer limited to 600 characters

Q22. Describe the schedule for inspections and when they are required during the process of replacing the unit.Answer limited to 500 characters

Q23. If a manufactured product replacement, describe coordination with the installer of the new unit and required inspections during the replacement process.Answer limited to 500 characters


2.10.2 Final Code Inspection

A. Whether manufactured home replacement, modular or site built construction, the final code inspection must certify completion of the scope of work and that the property meets NYS and/ or Local Code at completion. The code inspection must be performed by the appropriate code official from the municipality where the unit is located. Documentation must include a signed and dated report from the local code official stating that the property is ready for occupancy and meets NYS and/or local Code.

Q25. Please explain the code requirements for MMHR and the progress and final inspection process to demonstrate the unit meets NYS and/or Local Code at completion.Answer limited to 500 characters

2.11 Relocation

A. MMHR is subject to an overall policy of minimizing displacement.

B. Funds shall be made available for relocation assistance to eligible property owners who are unable to voluntarily relocate during the demolition and construction phases of the project.

C. Relocation is an eligible project cost, however the cost of relocation must be included under the cap for per unit assistance.

Q24. Describe any situations where the need for temporary relocation assistance may be anticipated for this program and it’s expected per unit cost.Answer limited to 1000 characters


3 Financial Management Requirements

LPAs must have financial management systems and standards that provide effective control over and accountability for all MMHR funds, property and other assets that:

i. Identify the source and application of funds including records and reports that verify the eligibility, reasonableness and allocation of costs appropriately.

ii. Permit the accurate, complete and timely disclosure of financial results in accordance with OCR reporting requirements.

A. The financial management standards should provide for:

i. Internal Controls – The combination of policies, procedures, job responsibilities, personnel and records that together create accountability in an organization’s financial system and safeguard its cash, property and other assets.

ii. Budget Controls – procedures to compare and control expenditures against approved budgets.

iii. Accounting Records – records that sufficiently identify the source and application of MMHR funds provided.

iv. Cash Management – procedures in place to minimize the amount of time that elapses between receipt of MMHR funds and the actual disbursement of those funds.

Q25. Describe the financial management systems and procedures in place to ensure complianceAnswer limited to 800 characters

Q26. Describe the cost review and disbursement procedures in place to ensure that costs are reasonable and in compliance with the budget.Answer limited to 800 characters

3.1 Disbursements

Disbursement forms will be made available to LPAs at contract execution.

A. The LPA shall not request disbursement of funds under the contract until the funds are needed for payment of incurred, eligible costs. Advances of funds are not permitted.


B. Requests for disbursement of funds will require submission of a certification, signed by the LPAs construction professional, the homeowner and contractor, stating that the work has been satisfactorily completed.

C. The amount of each request shall be limited to the amount needed to pay such costs incurred.

D. OCR will not disburse funds if the LPA is in default of any of the provisions of the contract.

3.2 Recaptured Funds

A. Recaptured funds are derived from the repayment of the HTFC DPL used to secure the MMHR investment. This typically occurs in the event of resale, prepayment, or repayment in the event of noncompliance or default, such as the homeowner no longer residing in the property as principal residence.

All recaptured funds pursuant to the MMHR program received shall be returned to the HTFC within 30 days of receipt by the LPA.

3.3 Contract Closeout

A. A contract is eligible for closeout when:

i. All program funds for the MMHR assisted units have been disbursed.

ii. All units have been reported as completed.

iii. All required reports have been submitted.

B. Any recaptured funds on hand at closeout have been returned to the HTFC.

C. The OCR reserves the right to de-obligate committed MMHR funds for non-compliance with the terms of the contract. All remaining program funds not expended at contract close out will be de-obligated and reallocated for future MMHR eligible activities and/or according to the State’s Action Plan.

D. The LPA is required to maintain all program files and documentation, including financial information throughout the POA.


B. The LPA shall comply with MMHR project close out procedures and verify the grant is 100% complete, with all required project completion reports and/or documentation required by the OCR have been submitted.

C. The LPA must have been monitored with all monitoring findings resolved.

D. OCR will issue a close out letter to the LPA detailing that the project is complete then OCR will officially close out the contract and de-obligate any remaining unexpended funds.
