CHAPTER 19 ‑ DIVISION OF COMMUNITY ASSISTANCE
SUBCHAPTER 19S ‑ HOME REGULATIONS
SECTION .0100 ‑ GENERAL PROVISIONS
04 NCAC 19S .0101 OVERVIEW AND PURPOSE
(a) Overview: Created under the National Affordable
Housing Act of 1990, the Home Investment in Affordable Housing (HOME) Program
is designed to expand the supply of decent, safe, and sanitary housing
(especially rental housing) for low‑income Americans by strengthening the
ability of states and local governments to design and implement affordable
housing strategies.
(b) Purpose: The HOME program provides funds to States and
local governments for acquisition, rehabilitation, new construction of
affordable housing and tenant based rental assistance. The program is designed
to effect a partnership between the unit of local government and the developer
of the affordable housing. A special set‑aside of the HOME funds is
required to be available to qualifying non‑profit community housing
development organizations. Funds are targeted to low and very low income
persons and assisted units must remain affordable in accordance with specific
regulatory requirements.
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 30, 1992.
04 NCAC 19S .0102 DEFINITIONS
The definitions in 24 CFR 92.2 are hereby incorporated by
reference except as specifically provided for and written in this Rule:
(1) "Act" means National Affordable Housing
Act.
(2) "Applicant" means an agency that has or will
submit an application to the Department requesting HOME program funds.
(3) "Department" means the Department of
Economic and Community Development.
(4) "Home Regulations" means the HOME
Investment in Affordable Housing Program Regulations found at 24 CFR Part 92.,
as amended.
(5) "New construction" means housing units as
defined in 24 CFR 92.208‑210.
(6) "Recipient" means an agency that has been
awarded an authorization of HOME funds by the State.
(7) "Secretary" means the Secretary of the
Department of Economic and Community Development.
(8) "State" means the State of North
Carolina.
(9) "State recipient" means a unit of general
local government designated by the State to receive HOME funds.
(10) "Non‑profit housing organizations"
means private, non‑profit housing organization that is tax‑exempt
under section 501(c) of the Internal. Revenue Code.
(11) "Affordable" means meeting the
qualifications specified in 24 CFR 92 Subpart F for affordable housing.
History Note: Filed as a Temporary Adoption Eff. July
17, 1992 for a period of 180 days or until the
permanent rule becomes effective, which ever is sooner;
Authority G.S. 143B‑10; 143B‑431; 24 C.F.R.
Part 92;
Eff. November 30, 1992.
04 NCAC 19S .0103 WAIVER
The Secretary may waive any requirements of this Subchapter
not required by the National Affordable Housing Act of 1990 whenever it is
determined that undue hardship to recipients or beneficiaries will result from
applying the requirement. Each waiver must be in writing and must be supported
by documentation of the pertinent facts.
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 30, 1992.
04 NCAC 19S .0104 ELIGIBLE APPLICANTS
Eligible applicants are all units of general local
government, and community housing development organizations as defined under
section 92.2 of the HOME regulations.
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 2, 1992.
04 NCAC 19S .0105 AMENDMENTS ADOPTED BY REFERENCE
All referenced federal and state laws, statutes, and rules
in this Subchapter are hereby adopted by reference to include any later
amendments. These are:
(1) National Affordable Housing Act of 1990
(2) 24 CFR Part 92
(3) HOME Investment in Affordable Housing Program
Regulations
(4) National Environmental Policy Act of 1969 (NEPA)
(5) 24 CFR Part 58
(6) Community Development Act of 1974
(7) North Carolina Environmental Policy Act (SEPA)
(8) G.S. 113A‑1
(9) Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970 (URA)
(10) P.L. 91‑646
(11) 24 CFR Part 24
(12) Davis Bacon Act (40 U.S.C. 276a‑276a‑5)
(13) Contract Work Hours at Safety Standards Act (42 CFR
327‑333)
(14) Lead‑Based Paint Poisoning Prevention Act (42
U.S.C. 482)
(15) 24 CFR Part 85
(16) OMB Circular A‑110
(17) OMB Circular A‑87
(18) OMB Circular A‑122
(19) 24 CFR Part 44
(20) OMB Circular A‑133
(21) G.S. 159‑34
(22) 44 CFR Part 60
(23) OMB Circular A‑128
Copies of these documents can be obtained from the Division
of Community Assistance, 1307 Glenwood Avenue, Raleigh, NC 27605, at a cost of
ten cents ($.10) per page.
History Note: Filed as a Temporary Adoption Eff. July
17, 1992 for a period of 180 days or until the
permanent rule becomes effective, which ever is sooner;
Authority G.S. 143B‑10; 143B‑431; 24 C.F.R.
Part 92;
Eff. November 2, 1992.
04 NCAC 19S .0106 ACTS AND REGULATIONS ADOPTED BY
REFERENCE
In addition to the provisions of this Subchapter all
applicants and recipients of HOME funds must comply with all applicable
provisions of the current Federal HOME Investment Partnerships Program
Regulations as published in the Federal Register at 24 CFR Part 92., as amended
and Title II of the Cranston‑Gonzalez National Affordable Housing Act of
1990, as amended. Copies of these sections of federal law and regulation are
available for public inspection from the Department.
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 2, 1992.
SECTION .0200 ‑ ELIGIBLE AND PROHIBITED ACTIVITIES
04 NCAC 19S .0201 ELIGIBLE ACTIVITIES AND COSTS
This Subchapter adopts by reference as eligible activities
and costs those activities and costs described in the National Affordable
Housing Act as amended under Section 212(a) and (b), and in 24 CFR 92.205‑206
incorporated in Rule .0106 of this Subchapter.
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 2, 1992.
04 NCAC 19S .0202 PROHIBITED COSTS
All activities not defined as eligible in Rule .0201 shall
be considered ineligible for assistance under this Subchapter. Specific
ineligible uses are listed in the National Affordable Housing Act as amended
under Section 212(c), and in 24 CFR 92.214.
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 30, 1992.
SECTION .0300 - THRESHOLD FOR DIRECT HUD PARTICIPATION
04 NCAC 19S .0301 PARTICIPATION THRESHOLD AMOUNT
During the initial HOME program year, if a unit of general
local government has a formula allocation under 24 CFR 92.50 that is equal to
or greater than five hundred thousand dollars ($500,000) and less than seven
hundred and fifty thousand dollars ($750,000) then the State will authorize HUD
to transfer an amount of State HOME funds such that the sum of the amounts
transferred or made available are equal to or greater than the difference
between the unit of general local government's formula allocation and seven
hundred and fifty thousand dollars ($750,000). The State may require that the
unit of general local government financially participate in providing the
amount of funds necessary to ensure that the unit becomes a HUD participating
jurisdiction.
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 2, 1992.
SECTION .0400 ‑ HOME PROGRAM FUNDING DISTRIBUTION
04 NCAC 19S .0401 DISTRIBUTION OF FUNDS
(a) The Department shall designate specific dates for
submission of HOME program applications under each category. Grant application
submission dates will be announced by the Division at least 30 days before the
date applications are due.
(b) In cases where the Department makes a procedural error
in the application selection process that, when corrected, would result in
awarding a score sufficient to warrant a HOME aware, the Department may
compensate that applicant with an award of funds in the next funding cycle.
(c) Applicants can apply for funding under the program
categories of Housing Projects Category, HOME Consortia Category or, the
Community Housing Development Organization Category.
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 30, 1992.
04 NCAC 19S .0402 SIZE AND USE OF HOME AWARDS MADE TO
RECIPIENTS
(a) There is no minimum amount which applicants may request
or be awarded. Awards made to any one recipient shall not exceed the following
amount in each category:
(1) Housing Project Category Unlimited;
(2) Consortia Category ‑ One Million
Dollars ($1,000,000);
(3) Community Housing Development Organization
Category Unlimited.
(b) Awards to specific recipients will be provided in
amounts commensurate with the size of the applicant's program. In determining
appropriate amounts, the Department may consider an applicant's need, proposed
activities, and ability to carry out the proposed activities.
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 2, 1992.
04 NCAC 19S .0403 PROGRAM CATEGORY ALLOCATION
(a) HOME funds received by the State each year and
available for award after reservations of funds under this Subchapter have been
allocated, will be reserved for each program category as follows: at least fifteen
percent of the funds will be reserved for awards under the Community Housing
Development Organization program. Up to fifty percent of the funds will be
available for the Consortia Category. The remaining funds will be distributed
to applicants that have applied for funds under the Housing Projects Category.
(b) If applicants fail to request the full amount of the
set‑aside in any category or if the Department is unable (for any reason
including lack of applicant administrative capacity) to distribute the full
amount of the set‑aside then the remaining funds may be distributed to
projects of the other categories.
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 2, 1992.
04 NCAC 19S .0404 GENERAL APPLICATION REQUIREMENTS
(a) Applicants shall submit applications in order to be
considered for funding. Selection of applications for funding will be based
primarily on information contained in the application; thus applications must
contain sufficient information for the Department to rate them against the
selection criteria. In addition, information from any source may be considered
which regards the eligibility of the applicant or application, the legality or
feasibility of proposed activities, the applicant's compliance with application
procedures specified in this Subchapter, or the accuracy of the information
presented in the application. All applicants shall address their projects to
one of the grant categories listed in Rule .0402 of this Section.
(b) Applications shall demonstrate that projects proposed
for assistance with HOME funds will meet the project requirements specified in
24 CFR 92.250‑258.
(c) Applications must be received by the Departmental administrative
offices in Raleigh before 5:00 p.m. on the submission date or sent by mail and
postmarked on the submission date.
(d) The applicant shall certify to the Department that it
will comply with all applicable Federal and State laws, Regulations, Rules and
Executive Orders.
(e) Applicants shall comply with program guidelines issued
by the Department for the purpose of administering the HOME program.
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 2, 1992.
SECTION .0500 ‑ COMMUNITY HOUSING DEVELOPMENT
ORGANIZATION CATEGORY
04 NCAC 19S .0501 DEFINITION
The Community Housing Development Organization (CHDO)
Program funds are available to eligible private non‑profit organizations
that meet both the definition of a nonprofit organization and the definition of
a Community Housing Development Organization as both are defined in Section
92.2 of the HOME Regulations (24 CFR Part 92.).
(1) All eligible activities may be carried out by CHDOs
to accomplish the purposes under this Subchapter.
(2) CHDO program funds will be distributed on a
competitive basis and projects will be evaluated against other CHDO project
proposals.
(3) The allocation of funds is made available to this
category as established in Rule .0403 of this Subchapter will be available for
a period of 18 months (or other time period established by HUD) after the
allocation of funds is made to the State from HUD in accordance with federal
regulations at 24 CFR Part 92.300(a).
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 2, 1992.
04 NCAC 19S .0502 ELIGIBILITY REQUIREMENTS
Applications for CHDO program funds must show that:
(1) CHDO funds will be invested only in housing to be
developed, sponsored, or owned by the Community Housing Development
Organization.
(2) The CHDO applicant meets the requirements of Rule
.0501 of this Section.
(3) The CHDO has received written approval from the
Department that the organization meets the Community Housing Development
Organization (CHDO) definition under 24 CFR Part 92.2.
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 2, 1992.
04 NCAC 19S .0503 SELECTION CRITERIA
Programs and individual projects will be evaluated and rated
based upon but not limited to the following:
(1) Project feasibility,
(2) Project appropriateness,
(3) Need for the project funds,
(4) Capacity to carry out the project,
(5) Project viability,
(6) Project affordability,
(7) Project benefit,
(8) Market conditions,
(9) Project technical assistance/education,
(10) Geographic distribution.
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 2, 1992.
SECTION .0600 ‑ HOME CONSORTIA CATEGORY
04 NCAC 19S .0601 DEFINITION
A consortium of geographically contiguous units of general
local government, non‑profit housing development organizations or state
agencies may submit an application to the Department requesting HOME funds to
carry out activities consistent with the purpose of this Subchapter and the
HOME Program Regulations at 24 CFR Part 92.
(1) Consortia applicants must submit to the Department
on the prescribed forms a HOME Program Consortia funding request. Applications
for Consortia funding will be requested and received on an annual basis.
(2) Eligible activities are those activities that are
otherwise eligible under this Subchapter and at 24 CFR Part 92.205.
(3) Applicants must provide to the Department evidence
that all parties to the consortium have executed a cooperation agreement among
its members authorizing one member unit of general local government to act in a
representative capacity for all members for purposes of this Subchapter and providing
that the representative member assumes overall responsibility for ensuring that
the consortiums HOME program is carried out in compliance with all applicable
state and federal regulations including requirements concerning a Comprehensive
Housing Affordability Strategy.
(a) The agreement must not contain a provision
for veto or other restriction that would allow any party to the agreement to
obstruct the implementation of the approved Comprehensive Housing Affordability
Strategy.
(b) The agreement must be accompanied by
authorizing resolutions from the governing body of each member or other
acceptable evidence that the chief executive officer is authorized to sign the
agreement. The agreement must be signed by the chief executive officer of each
member.
(c) The agreement must contain, or be
accompanied by, a statement from the lead entity's counsel that the terms and
provisions of the agreement are fully authorized under State and local law and
that the agreement provides full legal authority for the consortium to
undertake or assist in undertaking housing activities for the HOME program.
(d) The term of the agreement must cover the
period necessary to carry out all activities that will be funded by HOME funds
and that the entities which join the consortium are required to remain in the
consortium for the entire period. The agreement cannot contain a provision for
termination or withdrawal by any party to the agreement.
(e) If any new entities join the consortium, the
consortium must notify the Department within 30 days.
(f) If the consortium includes a CDBG
Entitlement City as the lead entity, the consortium will be considered to have
sufficient administrative capability to carry out the HOME program. If this is
not the case the consortium must demonstrate relevant experience in
successfully administering programs similar to the HOME program to the
satisfaction of the Department.
(g) Consortia members may include agencies and
organizations which are not units of general local government; only a unit of general
local government is eligible to represent the consortia as required in
Subparagraph (3) of this Rule.
(4) Applicants must have the capacity to administer the
HOME program. The Department may examine the following areas to determine
capacity:
(a) Audit and monitoring findings on previous
HOME programs, and the applicant's fiscal accountability as demonstrated in
other state or federal programs or local government financial reports; and
(b) The rate of expenditure of funds and
accomplishments in previously funded CDBG programs. Applicants that show a
lack of capacity will not be rated or funded.
(5) All applicants must submit certifications as
prescribed by the Department.
(6) State recipients must enter into an agreement
between the Department and the State recipient which sets forth the full
administrative responsibilities that the State recipient will have in carrying
out its HOME program.
History Note: Filed as a Temporary Adoption Eff. July
17, 1992 for a period of 180 days or until the permanent rule becomes
effective, whichever is sooner;
Authority G.S. 143B‑10; 143B‑431; 24 C.F.R.
Part 92;
Eff. November 2, 1992.
04 NCAC 19S .0602 ELIGIBILITY REQUIREMENT
Applications for funds under this category must show that:
(1) Applications must address and be in compliance with
all program requirements and project requirements.
(2) The designated lead entity for the Consortium must
meet the definition of a State Recipient as defined at 24 CFR Part 92.2.
(3) The lead entity has the legal authority to carry
out all activities proposed in the application for funding.
History Note: Filed as a Temporary Adoption Eff. July
17, 1992 for a period of 180 days or until the
permanent rule becomes effective, which ever is sooner;
Authority G.S. 143B‑10; 143B‑431; 24 C.F.R.
Part 92;
Eff. November 2, 1992.
04 NCAC 19S .0603 SELECTION CRITERIA
Programs and individual projects will be evaluated and rated
based upon but not limited to the following:
(1) Project feasibility
(2) Project appropriateness
(3) Need for the project funds
(4) Capacity to carry out the project
(5) Project viability
(6) Project affordability
(7) Project benefit
(8) Market conditions
(9) Project Technical Assistance/Education
(10) Geographic distribution.
History Note: Filed as a Temporary Adoption Eff. July
17, 1992 for a period of 180 days or until the
permanent rule becomes effective, which ever is sooner;
Authority G.S. 143B‑10; 143B‑431; 24 C.F.R.
Part 92;
Eff. November 2, 1992.
SECTION .0700 ‑ HOUSING PROJECT CATEGORY
04 NCAC 19S .0701 DEFINITION
The Housing Development Project category is designed to
direct HOME funds to assist housing projects being carried out by units of
general local government and private non‑profit housing development
organizations. All eligible HOME program activities may be undertaken under
this category.
(1) Applications for funding must be designed to
address specific projects that could begin within six months of the project
award date and could reasonably be completed within a 24 month period or less
from the date of award.
(2) Housing Development Project funds shall be
distributed to eligible applicants on a competitive basis.
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 2, 1992.
04 NCAC 19S .0702 ELIGIBILITY REQUIREMENTS
Applications for funds under this category must show that:
(1) Applications must address and be in compliance with
all program requirements and project requirements under Subchapter E and F of
24 CFR Part 92.
(2) All applications shall include letters of interest
for commitments of funds from sources other than the HOME program and shall
include documentation that these funds are currently available for the proposed
project.
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 2, 1992.
04 NCAC 19S .0703 SELECTION CRITERIA
Programs and individual projects will be evaluated and rated
based upon but not limited to the following:
(1) Project feasibility,
(2) Project appropriateness,
(3) Need for the project funds,
(4) Capacity to carry out the project,
(5) Project viability,
(6) Project affordability,
(7) Project benefit,
(8) Market conditions,
(9) Project technical assistance/education,
(10) Geographic distribution.
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 2, 1992.
04 NCAC 19S .0704 PRELIMINARY AWARDS
The Department shall announce preliminary grant awards after
review and evaluation of HOME project category applications. A grant agreement
shall not be issued by the Department to a recipient until a commitment with the
developer has been executed and approved by the Department. The commitment
shall incorporate project specific implementation reflecting key project
elements.
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 2, 1992.
SECTION .0800 - RESERVED
FOR FUTURE CODIFICATION
SECTION .0900 - RESERVED
FOR FUTURE CODIFICATION
SECTION .1000 ‑ COMPLIANCE REQUIREMENTS
04 NCAC 19S .1001 EQUAL OPPORTUNITY AND FAIR HOUSING
No person shall on the grounds of race, color, national
origin, religion or sex be excluded from participation in, be denied the
benefit of, or be subjected to discrimination under any program or activity
funded in whole or in part with funds available under this Subchapter.
Recipients shall meet the requirements specified in 24 CFR 92.350, incorporated
in Rule .0106 of this Subchapter. These requirements also prohibit
discrimination based on age or handicap; require compliance with the Fair
Housing Act which prohibits discrimination in housing on the grounds of race,
color, religion, sex, national origin, handicapping condition or familial
status; promote opportunities for training and employment for low‑income
persons in the jurisdiction or area in which the project is located; promote
contracting for work with business concerns located in or owned by persons
residing in the same area as the project; encourage use of minority and women's
business enterprises including the establishment of an outreach program to such
entities; and affirmatively further fair housing.
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 2, 1992.
04 NCAC 19S .1002 AFFIRMATIVE MARKETING
Recipients must adopt the affirmative marketing procedures
and requirements for HOME‑assisted housing containing five or more
housing units, specified in 24 CFR 92.351 as requirements for participating jurisdictions.
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 2, 1992.
04 NCAC 19S .1003 ENVIRONMENTAL REVIEW
(a) Applicants and recipients shall comply with the
policies of the National Environmental Policy Act of 1969 (NEPA) and all other
applicable provisions of Federal and State law which further the purposes of
such act (as specified in 24 CFR Part 58).
(1) Applicants and recipients shall assume the
responsibilities for environmental review, decision‑making, and other
actions which would otherwise apply to the Secretary, under NEPA in accordance
with section 104(f)(4) of Title I of the Housing and Community Development Act
of 1974, as amended and the implementing regulations at 24 CFR Part 58.
(2) Applicants and recipients shall submit
adequate information prescribed by the Department on the environmental impact
of each project so that the Department can determine project compliance with
the requirements of the North Carolina Environmental Policy Act of 1971 (SEPA)
(G.S. 113A‑1). A determination by the Department that the project
complies with the requirements of SEPA will be made before the Department will
release funds to the recipient.
(3) It is the responsibility of the recipient
to obtain all air pollution and water pollution permits for a HOME program
pursuant to State laws and rules applicable to the provisions of this
Subchapter.
(b) All records and data shall be maintained pursuant to
Rule .1105 of this Subchapter.
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 2, 1992.
04 NCAC 19S .1004 DISPLACEMENT, RELOCATION, AND
ACQUISITION
(a) Recipients shall follow the requirements of the Uniform
Relocation Assistance and Real Property Acquisition policies Act of 1970 (URA)
(P.L. 91‑646) and HUD implementing regulations at 24 CFR Part 24 and 24
CFR Part 92. The following definitions shall apply:
(1) "HUD" means the Department.
(2) "Federal agency" means the
Department.
(3) "State agency" means the
recipient of HOME funds as defined in this Subchapter.
(b) Recipients must ensure that is has taken all reasonable
steps to minimize the displacement of persons (families, individuals,
businesses, nonprofit organizations, and farms) as a result of a HOME‑assisted
project.
(c) Recipients must follow the policies of 24 CFR Part 92.
for temporary relocation.
(d) Recipients may provide relocation payments and
assistance for individuals, families, businesses, nonprofit organizations and
farms displaced by an activity that is not subject to the Uniform Act.
Recipients also may provide relocation payments and other assistance at levels
above those established under the Uniform Act. All such relocation assistance
not required by the Uniform Act must be determined by the recipient to be
appropriate to its HOME program. The recipient shall adopt a written policy
available to the pubic that describes the optional relocation assistance that
it has elected to furnish and provides for equal relocation assistance within
each class of displaced persons.
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 2, 1992.
04 NCAC 19S .1005 LABOR STANDARDS
(a) Recipients must comply with the Davis‑Bacon Act
(40 U.S.C. 276a‑276a‑5) and the Contract Work Hours and Safety
Standards Act (42 CFR 327‑333) and with other Federal laws and
regulations pertaining to labor standards and HUD Handbook 1344.1 (Federal
Labor Standards in Housing and Community Development Programs), as applicable,
for any contract for the construction (rehabilitation or new construction) of
affordable housing with 12 or more units assisted with HOME funds.
(b) A volunteer who receives no compensation or is paid
expenses, reasonable benefits, or a nominal fee to perform volunteer services
and who is not otherwise employed at any time in the construction work is
exempt from the prevailing wage provision of the Davis‑Bacon Act.
(c) Members of an eligible family who provide "sweat
equity" labor in exchange for acquisition of a property for homeownership
or provide such labor in lieu of, or as a supplement to, rent payments are
exempt from the prevailing wage provisions of the Davis‑Bacon Act.
(d) All contracts required to comply with Paragraph (a) of
this Rule must contain labor standards provisions.
(e) As required by 24 CFR 24, a recipient must require
participants in lower tier covered transactions to include the certification
that neither it nor its principals is presently debarred, suspended, proposed
for debarment, declared ineligible, or voluntarily excluded from participation
from the covered transaction in any proposal submitted in connection with the
lower tier transactions. A recipient may rely on the certification, unless it
knows the certification is erroneous.
(f) Recipients shall maintain records regarding compliance
with the laws and regulations cited in this Rule in accordance with Rule .1109
of this Subchapter.
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 2, 1992.
04 NCAC 19S .1006 LEAD‑BASED PAINT
(a) Recipients must comply with the Lead‑Based Paint
Poisoning Prevention Act (42 U.S.C. 4821, et seq.) and 24 CFR Part 35 including
provisions of the above:
(1) prohibiting the use of lead‑based
paint;
(2) requiring elimination of lead‑based
paint hazards; and
(3) requiring notification of the hazards of
lead‑based poisoning to purchasers and tenants of housing constructed
prior to 1978 which was acquired or rehabilitated with HOME assistance.
(b) Recipients are responsible for testing and abatement
activities.
(c) All construction contracts as described in this Rule
shall contain a provision prohibiting the use of lead‑based paint.
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 2, 1992.
04 NCAC 19S .1007 CONFLICT OF INTEREST
(a) Recipients must comply with the conflict of interest
provisions in 24 CFR 85.36 and OMB Circular A‑110 in the procurement of
property and services, if applicable.
(b) Recipients must comply with Section 92.356 of 24 CFR
Part 92. in all cases not governed by Paragraph (a) of this Rule.
(c) No person described in Paragraph (d) of this Rule who
exercise or have exercised any functions or responsibilities with respect to
activities assisted with HOME funds or who are in a position to participate in
a decisionmaking process or gain inside information with regard to these
activities, may obtain a financial interest or benefit from a HOME assisted
activity; or have an interest in any contract, subcontract, or agreement with
respect, thereto, or the proceeds thereunder, either for themselves or those
with whom they have a family or business ties, during their tenure or for one
year thereafter.
(d) The conflict of interest provisions of Paragraph (c) of
this Rule apply to any person who is an employee, agent, consultant, officer,
or elected official or appointed official of the recipient receiving HOME
funds.
(e) Exceptions to the provisions of Paragraph (c) of this
Rule will be granted on a case‑by‑case basis by HUD in accordance
with 24 CFR 92.356(d) and (e) by submitting a request for determination of the
Department.
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 2, 1992.
04 NCAC 19S .1008 NATIONAL FLOOD INSURANCE PROGRAM
(a) No HOME funds shall be used for acquisition, new
construction, or rehabilitation purposes as defined under section 3(a) of the
Flood Disaster Protection Act of 1973 (P.L. 93‑234) in any area that has
been identified as an area having special flood hazards, unless the recipient
in such an area is participating in the National Flood Insurance Program or
less than a year has passed since FEMA notification regarding such hazards.
(b) Recipients must comply with the Regulations
implementing the Flood Disaster Protection Act of 1973 (44 CFR 60.3), unless
the recipient is participating in the National Flood Insurance Program.
(c) The use of HOME funds governed by this Subchapter for
acquisition, new construction, or rehabilitation shall be subject to the
mandatory purchase of flood insurance requirements of Section 102(a) of the
Flood Disaster Protection Act of 1973 (P.L. 93‑234).
(d) Records of participation in the National Flood
Insurance Program shall be maintained by the recipient pursuant to Rule .1105
of this Subchapter.
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 2, 1992.
04 NCAC 19S .1009 CLEARINGHOUSE REVIEW
(a) Applications for funding under this Subchapter may be
submitted by the Department to the appropriate state clearinghouse agencies.
The state agencies shall have 30 days from the receipt of the application to review
the application and give comments to the Department and the applicant.
(b) Comments containing any findings of inconsistency with
state or local plans, significant adverse urban impact, noncompliance with
environmental laws, failure to provide equal opportunity or other comments that
require a response may result in disapproval or conditional approval of the
application by the Department. Applicants must consider all findings and
submit to the Department a written statement indicating what action they plan
to take as a result of these findings.
(c) Program amendments which must receive Departmental
approval pursuant to Rule .1110 of this Subchapter, may be submitted to
clearinghouse review in accordance with Paragraph (a) of this Rule.
(d) All clearinghouse comments and responses shall be kept
in accordance with Rule .1105 of this Subchapter.
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 2, 1992.
SECTION .1100 ‑ GRANT ADMINISTRATION
04 NCAC 19S .1101 GRANT AGREEMENT
(a) Upon approval of the application by the Department, a
written grant agreement will be executed between the recipient and the
Department. These Rules, the approved application, and any subsequent
amendments to the approved application shall become a part of the grant
agreement.
(b) The grant agreement in its original form and all
modifications thereto shall be maintained by the recipient pursuant to Rule
.1105 of this Section.
(c) The Department may condition the grant agreement until
the recipient demonstrates compliance with all applicable laws and regulations.
(d) Neither HOME nor non‑HOME funds involved in a
project may be obligated nor may any conditioned project activities begin until
the Department releases in writing any and all applicable conditions on the
project. Recipients may incur certain costs prior to release of conditions
with prior Departmental approval for activities that have been approved in
writing.
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 2, 1992.
04 NCAC 19S .1102 METHOD OF ADMINISTRATION
(a) Recipients may delegate to statutorily authorized
subrecipients the responsibility of undertaking or carrying out any specified
HOME projects. All entities so designated under this Paragraph by recipients to
undertake or carry out HOME projects pursuant to this Subchapter shall be
considered subrecipients as defined in 24 CFR 92.2.
(b) This Rule does not apply to recipients in the selection
of subrecipients.
(c) Prior to disbursing funds to any subrecipient or
contractor, the recipient must enter into a written agreement with the entity.
The agreement must contain provisions required by 24 CFR 92.504(c),
incorporated by reference in Rule .0105 of this Subchapter.
(d) Recipients and subrecipients which are units of local
government must comply with the requirements of OMB Circular A‑87 and 24
CFR 85.6, .12, .20, .22, .26, .35, .36, .44, .51, and .52. Recipients and
subrecipients that are private non‑profit organizations must comply with
the requirements of OMB Circular A‑122 and OMB Circular A‑110,
Attachment B; F; H, paragraph 2; and O.
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 2, 1992.
04 NCAC 19S .1103 AUDIT
(a) Audits must be conducted in accordance with OMB
Circular A‑128 as implemented by 24 CFR Part 44 and OMB Circular A‑133,
as applicable.
(1) The recipient shall provide for an audit of
its HOME funds on an annual basis in accordance with the annual independent
audit procedures set forth in G.S. 159‑34.
(2) A recipient receiving less than twenty five
thousand dollars ($25,000) during a fiscal year may elect to have the funds
audited with funds received in the following fiscal year.
(3) The Audit of HOME funds may be performed in
conjunction with the regular annual independent audit of the recipient and
shall contain an examination of all financial aspects of the HOME program as
well as a review of the procedures and documentation supporting the recipient's
compliance with applicable statutes and regulations.
(4) HOME funds can not be used to pay for the
HOME portion of the audit.
(5) The recipient shall submit a copy of the
Annual Audit Report to the Department, including all information required by
federal and state regulations.
(6) The Department may require separate
closeout audits to be prepared by the recipient.
(7) Work papers and reports shall be maintained
for a minimum of three years from the date of the audit report unless the
auditor is notified in writing by the Department of the need to extend the
retention period. The audit workpapers shall be made available upon request to
the Department and the General Accounting office or its designees.
(8) If during the course of the audit, the
auditor becomes aware of irregularities in the recipient organization the
auditor shall promptly notify the Department and recipient management officials
about the level of involvement. Irregularities include such matters as
conflict of interest, falsification of records or reports, and misappropriation
of funds or other assets.
(b) All records, data, audit reports and files shall be
maintained in accordance with Rule .1105 of this Section.
(c) The provisions of this Rule do not limit the authority
of the Department to make audits of recipients' organizations.
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 2, 1992.
04 NCAC 19S .1104 CLOSEOUT
(a) A recipient may close out HOME funds for an individual
Federal fiscal year when the following criteria have been met:
(1) All funds to be closed out have been drawn
down and expended for completed project costs or funds not drawn down and
expended are to be deobligated by the Department;
(2) The matching funds requirements in Section
92.218 have been met unless waived for the fiscal year by the U.S. Congress;
(3) Project Completion Reports for all projects
using funds to be closed out have been submitted and entered into the
department's financial system in order for the Department to prepare the
Closeout Report;
(4) The recipient has been reviewed and audited
and the Department has determined that all requirements except for
affordability, have been met or all monitoring and audit findings have been
resolved.
(A) The recipient's most recent audit report must be
received by the Department. Even though the audit does not cover all funds to
be closed out, closeout may proceed provided the recipient agrees in its
Closeout Report that unaudited funds will be subject to the recipient's next
single audit and that the recipient may be required to repay the Department any
disallowed costs based on the results of the audit.
(B) The on‑site monitoring of the recipient by the
Department must include verification of the Department's financial system data
reflected in the Closeout Report and reconciliation of any discrepancies
existing between the Department's financial system and the recipient's records.
(b) The Closeout Report contains the final data on funds
and must be signed by the recipient and the Department's designated official.
In addition the report must contain:
(1) A provision regarding unaudited funds,
required by Part(a)(4)(i) of this Rule.
(2) A provision requiring the recipient to
continue to meet the requirement applicable to housing projects for the period
of affordability specified in 24 CFR Part 92.252 or 92.254;
(3) A provision requiring recipients to keep
records demonstrating that the requirements have been met and to repay HOME
funds, as required by 24 CFR 92.503, if the housing fails to remain affordable
for the required period.
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 2, 1992.
04 NCAC 19S .1105 RECORDKEEPING
(a) The Secretary of the Department of Economic and
Community Development, the Secretary of the Department of Housing and Urban
Development, or any of their duly authorized representatives, shall have access
to all books, accounts, records, reports, files, and other papers or property
of recipients or their subgrantees and contractors pertaining to funds provided
under this Subchapter for the purpose of making surveys, audits, examinations,
excerpts and transcripts.
(b) All HOME Program records that are public under G.S. 132
shall be made accessible to interested individuals and groups during normal
working hours.
(c) Financial records, supporting documentation and all
other reports and records required under this Subchapter, and all other reports
pertinent to the HOME Program shall be retained by the recipient for a period
of three years from the date of the closeout of the program, except as follows:
(1) Records must be retained until completion
of the action and resolution of all issues arising from any litigation, claim,
negotiation, audit or other action, or until the end of the regular period,
whichever is later.
(2) Records regarding project and other federal
requirements applicable to housing assisted with HOME funds must be retained
for three years after the required period of affordability specified in 24 CFR
92.252 or 92.254, as applicable.
(3) Records covering displacements and
acquisition must be retained for at least three years after the date by which
all persons displaced from the property and all persons whose property is
acquired for the project have received the final payment to which they are
entitled.
(d) Recipient must establish and maintain sufficient
records to enable the Department to determine whether the recipient has met the
requirements of 24 CFR 92.508 and all other applicable laws and regulations.
All accounting records shall be supported by source documentation and shall be
in compliance with this Subchapter.
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 2, 1992.
04 NCAC 19S .1106 PERFORMANCE REPORTS
(a) Each recipient must submit management reports on its
HOME Program in such format and at such time as the Department may prescribe.
(b) A recipient must submit an annual performance report on
its HOME activities to the Department at such time as the Department may
prescribe. Single copies of the report must be provided to the pubic upon
request at no charge.
(c) The Annual Performance Report must contain such
information and be in such form as the Department may prescribe, and must
include at least the following:
(1) An analysis of the recipient's efforts to
maximize participation by the private sector;
(2) An assessment of the effectiveness of the
affirmative marketing actions prescribed in Rule .1002 of this Subchapter;
(3) An assessment of the effectiveness of the
recipient's minority outreach program, including an analysis of participation
by minorities and women and entities owned by minorities and women in its HOME
program and, where appropriate, a statement of additional actions planned to
improve performance in the use of minority and women‑owned businesses;
(4) Data on the total number of households
(families and individuals) and business and nonprofit organizations displaced
as a result of investments of HOME funds, including the cost of relocation
payments and the number and cost of real property acquisitions; and
(5) Data on the amount of repayments, interest,
and other return on investment of HOME funds and the use of the funds,
including number assisted and characteristics of tenants and owners.
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 2, 1992.
04 NCAC 19S .1107 PERFORMANCE REVIEWS
(a) A recipient's performance will be reviewed at least
annually in accordance with 24 CFR Part 92.550(a). The Department will rely
primarily on information obtained from the recipient, and, as appropriate, the recipient's
records and reports, findings from on‑site monitoring, audit reports, and
information generated from the recipients's financial system. The Department
may also consider relevant information pertaining to a recipient's performance
gained from other sources, including citizen comments, complaint
determinations, and litigation.
(b) A recipient's performance will be comprehensively
reviewed periodically, as prescribed by the Department, to determine whether
the recipient:
(1) has committed and expended HOME funds as
required by 24 CFR Part 92.500; and
(2) has met the requirement of 24 CFR Part 92,
particularly eligible activities, income targeting, affordability, and matching
requirements.
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 2, 1992.
04 NCAC 19S .1108 CORRECTIVE AND REMEDIAL ACTIONS
(a) The Department will use the procedures of 24 CFR Part
92.551 in conducting the performance review as provided in Rule .1107 of this
Section and in taking corrective and remedial actions.
(b) If the Department determines that a recipient has not
met a requirement of this Subchapter, the recipient will be given notice of
this determination and an opportunity to demonstrate, within 30 days and on the
basis of substantial facts and data that it has done so.
(c) If a recipient fails to demonstrate to the Department's
satisfaction that it has met the requirement, The Department will take
corrective or remedial action in accordance with this Rule or Rule .1109 of
this Section.
(d) The Department will take corrective or remedial actions
designed to prevent a continuation of the deficiency; mitigate, to the extent
possible, its adverse effects or consequences; and prevent its recurrence in
accordance with 24 CFR 92.551(c).
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 2, 1992.
04 NCAC 19S .1109 ADMINISTRATIVE HEARINGS AND SANCTIONS
(a) The Department may impose sanctions specified in 24 CFR
Part 92.552(a)(1) and (2)(i) on a recipient that fails to comply with any
provision of this Subchapter.
(b) A recipient or the Department may commence contested
case hearing procedures pursuant to G.S. 150B and 26 NCAC 3 ‑ Office of
Administrative Hearings, Hearings Division.
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 2, 1992.
04 NCAC 19S .1110 PROGRAM AMENDMENTS
(a) A recipient may amend its HOME program by submitting a
request to the Department for approval in such format as the Department may
prescribe.
(b) Prior approval by the Department is required when:
(1) The recipient proposes to change the
approved budget amount for any activity by more than 10 percent of the total
grant amount.
(2) The recipient proposes to add or delete any
activity or activities, change project locations, or change the scope of the
program or class of beneficiaries of previously approved activities; and
(3) The cumulative effect of smaller changes
involving approved activities exceeds 10 percent of the total grant amount.
(c) All records of program amendments shall be kept on file
in accordance with Rule .1105 of this Section.
History Note: Authority G.S. 143B‑10; 143B‑431;
24 C.F.R. Part 92;
Eff. November 2, 1992.
