Question and Answers June 24, 2010

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Cecilia Lynch
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1 U.S. Department of Housing and Urban Development NSP Open Forum Question and Answers June 24, 2010 Community Planning and Development

2 Moderators and Q and A Format Moderators David Noguera, HUD David.A.Noguera@hud.gov John Laswick, HUD John.A.Laswick@hud.gov Jade Banks, HUD Jade.M.Banks@hud.gov Surabhi Dabir, Enterprise Community Partners sdabir@enterprisecommunity.org it How to ask questions Click the Raise Hand button Provide Name and Organization Click the button again to lower hand after question answered 2

3 Recent FAQ Davis-Bacon applicability 3

4 LABOR STANDARDS DAVIS-BACON Davis-Bacon applies to all construction contracts over $2,000 involving CDBG funds Davis-Bacon is also triggered when an NSP-assisted property contains 8 or more units. A property is defined as 1 or more buildings on an undivided lot or on contiguous lots or parcels, which are commonl y- owned and operated as 1 rental, cooperative or condominium project. Requires workers be paid at least minimum wages provided by Dept of Labor Acquisition, Demolition, and soft costs do not trigger Davis-Bacon

5 DAVIS-BACON IMPLEMENTATION All bids & contracts subject to Davis-Bacon must contain standard clauses on requirements Hold a preconstruction conference to review requirements with contractor Prime or general contractor is responsible for full compliance, including lower tier subs Contract administrator enforces requirements and provides information to contractor and go to the Library

6 DAVIS-BACON CONTD. The above apartment building contains more than 8 units and any rehab above $2k would trigger Davis Bacon

7 DAVIS-BACON CONTD. In the same building, if windows were being installed in only three units for under $2,000 then Davis Bacon would not triggered.

8 DAVIS-BACON CONTD. This four unit apartment would not trigger Davis Bacon

9 DAVIS-BACON CONTD. In most cases, single family homes will not trigger Davis Bacon because they are single residential structures, the exception is explained in the following slides.

10 DAVIS-BACON CONTD. Davis Bacon would not apply to the house, highlighted to the left above, because it s a single residential structure that is owner occupied, as is the house next to it.

However, Davis Bacon would apply if all 8

Even though they are separate residential

11 However, Davis Bacon would apply if all 8 single-family properties, highlighted in red, were owned and operated by the same person. Even though they are separate residential structures, if the y are commonl y owned and operated they would trigger Davis-Bacon.

12 DAVIS-BACON CONTD. The above example shows contiguous residential townhouse structures, but these are individually owned properties, so they would not trigger Davis-Bacon.

13 Recent FAQ on Short Sales Question: Can a property be purchased through a short sale using NSP funds?

14 Recent FAQ on Short Sales Question: For short sales, it takes some time to obtain approval of the sale from all of involved parties (e.g. mortgagee, second deed holder, and mortgage holder). Does HUD require that all lien holders approve the short sale prior to obligating NSP funding?

15 NSP Help/Resources HUD NSP Help ( OR Find a Resource Frequently Asked Questions and Ask a Question Request Assistance Join list serve! Learning Center ( 15

16 Upcoming Webinars FHA Mortgage Insurance Issues June 29, 2pm Program Income, Activity Delivery and General Administration July 1, 2pm DRGR Show Your Progress July 6, 2 pm Continued Affordability and Addressing Technical Issues with Recapture and Resale July 8, 2pm Fair Housing & Equal Opportunity, Section 3 and Section 504 July 13, 2pm

17 Give us your Feedback Answer a few short questions Link: 17

Differences, Procurement and

U.S. Department of Housing and Urban Development Developers and Subrecipients: Differences, Procurement and Other Rules July 24, 2012 2:00 PM EDT Community Planning and Development Purpose of Webinar To