Loading...
Agenda 08/13/2024 Item #16D 3 (Approve first revision to the HOME -ARP allocation plan)08/13/2024 EXECUTIVE SUMMARY Recommendation to approve the first revision to the HOME-ARP allocation plan as required by the U.S. Department of Housing and Urban Development (HUD). OBJECTIVE: To provide funding for activities that support comprehensive affordable housing for those that are experiencing homelessness and other vulnerable populations. CONSIDERATIONS: On March 11, 2021, President Biden signed the American Rescue Plan Act of 2021 (ARP) into law, which provided over $1.9 trillion in relief to address the continued impact of the pandemic on the economy, public health, state and local governments, individuals, and businesses. To address the need for homelessness assistance and supportive services, Congress appropriated $5 billion in ARP funds to be administered through the HOME Investment Partnership Program (HOME) to perform four (4) activities that must primarily benefit qualifying individuals and families who are homeless, at risk of homelessness, or in other vulnerable populations. These activities include: (1) development and support of affordable housing, (2) tenant -based rental assistance (TBRA), (3) provision of supportive services; and (4) acquisition and development of non -congregate shelter units. On September 22, 2021, Collier County received notice of the HOME-ARP award in the amount of $2,729,078. Collier County was required to prepare and submit a HOME-ARP allocation plan in accordance with the Housing and Urban Development HOME-ARP notice. On December 14, 2021, Agenda Item #16.D.24, the Board of County Commissioners (Board) authorized the County Manager to accept the HOME-ARP grant award and approve the HOME-ARP allocation plan and associated documents for submission to HUD. Once the grant award was accepted, staff completed the necessary planning activities to develop the HOME -ARP allocation plan to include a public hearing and survey to obtain public comment. On February 27, 2023, in accordance with the HOME-ARP Notice, Collier County submitted the HOME-ARP allocation plan to HUD. Upon review, a scrivener’s error was identified in the number of HOME-ARP-assisted units included in the plan. After consultation with HUD, staff was advised to revise the allocation plan production goal to accurately reflect the intended scale and scope of the project to align with the HOME -funded per unit subsidy requirement. The revision on page 19 states, “The County estimates 100 10 of the units will be new affordable rental units that will be produced using HOME-ARP funds.” A notice was published in the Naples Daily News on May 13, 2024. The advertisement identified the 30-day public comment period from May 14, 2024, to June 14, 2024. A public hearing was also held on June 4, 2024, from 9:00 am to 11:00 am. As of the Agenda publication, no public comments were received. Upon approval, staff will submit the revised HOME-ARP allocation plan to Housing and Urban Development (HUD) for their acceptance. FISCAL IMPACT: There is no new Fiscal impact. The Home-ARP funds reside in Housing Grant Fund (1835), Project 33777. GROWTH MANAGEMENT IMPACT: There is no Growth Management impact associated with this Item. LEGAL CONSIDERATIONS: This item involves a very minor scrivener’s error. This item has been reviewed by the County Attorney, is approved for form and legality and requires a majority vote for Board action. -JAK RECOMMENDATION: To approve the first revision to the HOME-ARP allocation plan as required by the U.S. Department of Housing and Urban Development. Prepared By: Tracey Smith, Grants Coordinator II, Community and Human Services Division 16.D.3 Packet Pg. 1139 08/13/2024 ATTACHMENT(S) 1. HOME ARP Allocation Plan Collier County Revision #1 (PDF) 2. HOME ARP Allocation Plan Collier County Original submission (PDF) 3. Collier Public Notice HOME-ARP Allocation Plan revision (PDF) 4. AGRMT 2021 09-20 HOME ARP M21-UP120217 - HUD (PDF) 5. [LINKED} Notice CPD-21-10 Requirements for the Use of Funds in the HOME-ARP Program (PDF) 6. Affidavit HOME ARP Allocation Plan revision public notice (PDF) 16.D.3 Packet Pg. 1140 08/13/2024 COLLIER COUNTY Board of County Commissioners Item Number: 16.D.3 Doc ID: 29338 Item Summary: Recommendation to approve the first revision to the HOME-ARP allocation plan as required by the U.S. Department of Housing and Urban Development (HUD). Meeting Date: 08/13/2024 Prepared by: Title: – Community & Human Services Name: Tracey Smith 07/01/2024 11:35 AM Submitted by: Title: Manager - Federal/State Grants Operation – Community & Human Services Name: Kristi Sonntag 07/01/2024 11:35 AM Approved By: Review: Community & Human Services Kristi Sonntag CHS Review Completed 07/01/2024 12:00 PM Operations & Veteran Services Jeff Weir OVS Director Review Completed 07/01/2024 4:25 PM Community & Human Services Darrick Gartley Other Reviewer Completed 07/01/2024 6:05 PM Public Services Department Todd Henry Level 1 Department Review Completed 07/24/2024 8:07 AM Corporate Compliance and Continuous Improvement Megan Gaillard Additional Reviewer Completed 07/24/2024 11:23 AM Grants Erica Robinson Level 2 Grants Review Completed 07/25/2024 9:58 AM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 07/25/2024 10:03 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 07/25/2024 1:09 PM Public Services Department Tanya Williams PSD Department Head Review Completed 07/25/2024 5:38 PM Office of Management and Budget Blanca Aquino Luque OMB Reviewer Completed 07/30/2024 4:41 PM Grants Therese Stanley OMB Reviewer Completed 08/02/2024 11:45 AM County Manager's Office Amy Patterson Level 4 County Manager Review Completed 08/07/2024 1:00 PM Board of County Commissioners Geoffrey Willig Meeting Pending 08/13/2024 9:00 AM 16.D.3 Packet Pg. 1141 Collier County, FL HOME-American Rescue Plan Allocation Plan Community and Human Services Division 3339 East Tamiami Trail Health and Public Services Building H, Room 213 Naples, Florida 34112 Office: (239) 252-4228: Website: https://www.colliercountyfl.gov/government/public - services/divisions/community-and-human-services-division July 2024 Revision #1 16.D.3.a Packet Pg. 1142 Attachment: HOME ARP Allocation Plan Collier County Revision #1 (29338 : HOME-ARP First Revision to the Allocation Plan) 2 Table of Contents Introduction .......................................................................................................................... 3 Consultation .......................................................................................................................... 3 Public Participation.............................................................................................................. 10 Needs Assessment and Gaps Analysis................................................................................... 11 HOME-ARP Activities ........................................................................................................... 18 HOME-ARP Production Housing Goals .................................................................................. 19 Preferences ......................................................................................................................... 20 HOME-ARP Refinancing Guidelines ...................................................................................... 20 HOME-ARP Supporting Documentation ................................................................................ 21 16.D.3.a Packet Pg. 1143 Attachment: HOME ARP Allocation Plan Collier County Revision #1 (29338 : HOME-ARP First Revision to the Allocation Plan) 3 HOME-ARP Allocation Plan Participating Jurisdiction: Collier County, Florida Date: 2/14/2023 Introduction In September 2021, the U.S. Department of Housing and Urban Development (HUD) announced the allocation of $2,729,078 to Collier County, Florida for a new grant called the HOME Investment Partnerships Grant American Rescue Plan (HOME-ARP). The purpose of HOME-ARP funds is to provide homelessness assistance and supportive services through several eligible activities. Eligible activities include acquisition and development of non-congregate shelter, tenant based rental assistance, supportive services, HOME-ARP rental housing development, administration and planning, and nonprofit operating and capacity building assistance. HOME-ARP funds must primarily assist people in HOME-ARP "qualifying populations” (QPs), which include: ▪ Sheltered and unsheltered homeless populations ▪ Those currently housed populations at risk of homelessness ▪ Those fleeing or attempting to flee domestic violence or human trafficking ▪ Other families requiring services or housing assistance or to prevent homelessness and t hose at greatest risk of housing instability or in unstable housing situations To receive funding, the County must develop a HOME-ARP Allocation Plan which describes the distribution of HOME-ARP funds and identifies any preferences for eligible activities. This Plan will be submitted and approved by HUD. The development of the HOME-ARP Allocation Plan must also be informed through stakeholder consultation and public engagement. The following is the County’s HOME-ARP Allocation Plan. Consultation Summarize the consultation process: Collier County’s consultation process primarily consisted of the dissemination and feedback received via an online survey and one-on-one discussions. The online stakeholder survey was developed and disseminated in order to capture broad assessments of the community needs and areas for ARP allocation, as well as capturing stakeholders’ direct observational insights and assessments of the unmet needs of QPs. The online survey was open from June 20, 2022 through August 15, 2022. The survey included seven ARP program-specific questions and one open-ended comment for community needs assessment. The survey received 14 respondents, including those representing homeless services providers, Fair Housing agencies, affordable housing developers, 16.D.3.a Packet Pg. 1144 Attachment: HOME ARP Allocation Plan Collier County Revision #1 (29338 : HOME-ARP First Revision to the Allocation Plan) 4 domestic violence advocacy groups, and others. The Continuum of Care (CoC) and three other homeless service providers were consulted with via direct interviews. List the organizations consulted, and summarize the feedback received from these entities. Agency/Org Consulted Type of Agency/Org Method of Consultation Feedback Hunger & Homeless Coalition of Collier County CoC Lead Interview Rental housing development would be the best use of HOME-ARP funds. There is no affordable rental inventory, and the County is not currently addressing the issue. There are several hotel properties that would be good options for conversion to rental housing. The County is also in need of low barrier shelter, specifically for chronically homeless and disabled individuals. St Matthews has a great program, but it does not meet the needs of this population. The County does not have a true low-barrier, Housing First emergency shelter. More accessible mental health services are needed. The County has a great mental health provider, but individuals experiencing homelessness do not have access to services. The county needs a walk-in mental health clinic. The Tenant Based Rental Assistance (TBRA) program that currently exists with HOME funds does not provide assistance to homeless households quickly enough. The Section 8 waitlist currently is seven years long and the Housing Authority isn’t expanding. Collier County Housing Authority Housing Authority Survey The County has a lack of affordable housing and high rental rates and needs to increase inventory of housing units for low-income populations. Acquisition and rehab are the best uses of HOME-ARP funds for rental housing development. David Lawrence Centers for Behavioral Health Continuum of Care Staff/ Member, Homeless Service Provider, Organization Serving People with Disabilities, Veterans' Group, Survey The biggest gaps are low barrier homeless shelters and affordable housing for all. We also need more outreach and prevention services, mental health and addiction services and supports, supportive transitional and permanent housing apartments, group homes, housing for Veterans and seniors, etc. Collier needs more supportive housing, meaning we need affordable housing stock increased WITH supportive services to assist those in the housing to be successful (in the way of case 16.D.3.a Packet Pg. 1145 Attachment: HOME ARP Allocation Plan Collier County Revision #1 (29338 : HOME-ARP First Revision to the Allocation Plan) 5 Behavioral Health Service Provider management, mental health counseling, addiction counseling, etc.). Needs of those struggling with mental health and addiction challenges who are homeless or at risk of homelessness has been further exacerbated by the psychological toll of the pandemic. Cost of rentals are not affordable, and many residents are leaving the area. Plans for these funds need to be coordinated with and alighted with the strategic goals of the local Continuum of Care and other workgroups/focus groups that have been working to address this issue. Collier County - Bayshore/Gateway Triangle - Naples, FL Local Government Agency; Fair Housing Survey Shelters and housing inventory are not complete. There is a need to form a subcommittee to keep a better track of the inventory as well as working with NABOR to provide accurate information with a software system to add or remove properties. Homeless prevention by education and programs to assist with self-sufficiency classes and monthly budgeting classes being offered with some sort of computer training for work Is needed. Without the assistance to teach how to look for jobs and be self-reliant people do not know how to be motivated to search and do the work. Ensuring the population in need, work for the services will bring up their confidence, making them self-accountable and reliable. Providing them with the tools to be self- sufficient through education will help get them the help they need. St Matthews House Homeless Service Provider Interview Collier County has been experiencing an affordable housing crisis since Hurricane Irma in 2017. Rents have been increasing and new rental developments are not affordable to the qualifying populations. A growing subset of the homeless population is persons with disabilities and seniors. Often [Assisted Living Facility] ALF beds are not available for these individuals, and they are not the right fit for the shelter programs. Housing specifically for persons with mental health disorders is also a high need. Affordable rental housing development would be the best use of funds for the County. Conversion of nonresidential building to housing seems like it would be the most efficient, but there is a lack of buildings to convert. The areas where affordable housing development has 16.D.3.a Packet Pg. 1146 Attachment: HOME ARP Allocation Plan Collier County Revision #1 (29338 : HOME-ARP First Revision to the Allocation Plan) 6 been discussed in the past are not close to supportive services and transportation would become an issue. Immokalee Fair Housing Alliance, Inc Low-income Affordable Housing Survey The County needs to provide grants and loans for development of low-income rental housing for families with children born in US even if their parents are not citizens or legal residents. Affordable housing is the missing link to help low-income families escape from exploitation and poverty. 20th Judicial Circuit Legal; Civil Rights Survey We need A LOT of affordable and safe rental units. There are a lot of jobs and opportunities here, but they don't pay enough for people to take those jobs and live locally. I think we should convert commercial property to higher density housing and/or mixed use, so that affordable units could be closer to the jobs and public transportation hubs. We need to utilize some of the struggling strip-mall locations to revitalize them as mixed use, affordable housing, which could include non-congregate shelter housing. It has pained me to see rental assistance come through, only to have landlords evict or non- renew a month or two later. I'm grateful for funds that buy the tenant a bit of time, but it's ultimately wasted money, as there is no return on investment beyond that immediate month. The tenant will still be displaced and has no longer-term solution for having enjoyed the benefit of that rental assistance. We have to use band-aids to stop bleeding, but it's frustrating that there's no lasting benefit from that aid. Nothing is improved by it. Home Base Florida Veteran and Family Care Veteran’s Group Survey Non-profits often provide agility, flexibility and subject matter expertise to respond to issues like these in ways government often can't. Increasing support through public-private partnerships with reporting requirements and grant applications that aren't administratively burdensome are the key to making impactful, long-term impacts within our community. I believe that organizations like Wounded Warriors of Collier County, St Matthews and David Lawrence deserve the lion’s share of the HOME-ARP funds as they are the community leaders making the difference in the lives of 16.D.3.a Packet Pg. 1147 Attachment: HOME ARP Allocation Plan Collier County Revision #1 (29338 : HOME-ARP First Revision to the Allocation Plan) 7 individuals every day. Their ability to address homelessness is largely driven by financial resources or lack of. Government housing is something no government in the world. Subjective Units of Distress Scale (SUDs) and Mental Health go hand in hand with homelessness. Improving access to quality behavioral health should be integral to addressing homelessness. Community Assisted & Supported Living Homeless Service Provider, Organization Serving People with Disabilities Interview Rental housing development is the largest need. Affordable housing stock is the main problem. Our new developments are filled with 100 households in less than 50 days and quickly reach a 2-4 year waiting list. Non-congregate shelter is needed, but shelter is only temporary and finding permanent affordable housing is still an issue. TBRA is not beneficial because tenants are having issues finding units to rent. Supportive services such as mental health treatment, substance abuse treatment, and medical services are also needed, but these services cannot be successful if the person does not have stable housing. Permanent supportive housing and the housing first model are successful. New construction of housing is a better use of funds as opposed to rehab, because it is more sustainable, and the building will last longer. Deals are more difficult now than ever due to rising costs. HOME-ARP should be leveraged with other funding sources, such as SHIP. Collier County Sheriff’s Office Mental Health and Substance Use Survey The biggest gap is inadequate amount of affordable (less than $2000/month) rental houses and apartments. Rental properties that will accept vouchers, etc. for housing are nearly nonexistent. The county needs to support the construction of affordable housing through policy development, and push builders to comply. Collier's supportive services don't have an adequate inventory of affordable housing opportunities to refer clients to. Collier needs more non-congregate housing particularly for Veterans. Habitat for Humanity of Collier County Fair Housing Organization Survey Inventory of affordable homes for purchase (primary method of stabilizing workforce), and inventory of affordable rental units (with long 16.D.3.a Packet Pg. 1148 Attachment: HOME ARP Allocation Plan Collier County Revision #1 (29338 : HOME-ARP First Revision to the Allocation Plan) 8 term affordability periods). Affordable rental housing development is the most significant area of need. HOME funds should be deployed to purchase land and assist in construction costs to ensure affordability in this high cost market. ABLE Academy Organization Serving People with Disabilities Survey The cost of housing, medical services, and therapy services keep rising in our area. Wages for many of the families we serve do not. Our families are in a really hard spot. Especially coming off of COVID, where many families lost income. Collier County Probation Misdemeanor Supervision Survey I see a lack of affordable housing for workers. In an attempt to elevate our community's status, we have ignored housing needs of our vital service workforce, much to our detriment. Acquisition/construction/rehab of affordable properties will enhance community while reducing traffic of would-be commuters. Collier County Child Advocacy Council, Inc. Victims of Child Abuse, Sexual Abuse Survey There’s not enough shelter or affordable housing inventory. Need to develop more affordable housing, and rental units. Also need more case management, specific to helping individuals obtaining housing, help with budgeting, and childcare. The Shelter for Abused Women & Children Domestic Violence Service Provider / Homeless Service Provider Survey Emergency Shelter for survivors is addressed in this community by The Shelter. Funding for additional transitional housing units and funding to maintain those units are needed. Permanent housing units are needed for survivors when they exit emergency shelter or graduate from The Shelter's Transitional Housing Program . Funds are needed for the staff that address the immediate needs of survivors via emergency shelters. These staff members could help survivors attain housing. Additionally, funding to help support the operations of The Shelter's safe havens would be a useful way to address the needs of survivors in Collier County. More affordable rental housing units are needed, and these units need to be designated for victims of domestic violence and human trafficking. Funding could be used for acquiring units. County Emergency Management Disaster- All- hazards concerns Survey Unmet need: Absence of sufficient homeless day-shelter resources for health, hygiene, counseling and severe weather refuge. High priority should be given to homeless families or 16.D.3.a Packet Pg. 1149 Attachment: HOME ARP Allocation Plan Collier County Revision #1 (29338 : HOME-ARP First Revision to the Allocation Plan) 9 those with fragile health conditions. Look at the "tiny-house" as a possible resource where these micro-home parks- have been successfully operated. Wounded Warriors of Collier County, Inc Veterans' Group / Homeless Service Provider Survey Gaps: 1. Low Demand housing - Homeless that St Matthews will not house. 2. Funds available for immediate emergency housing 3. No HUD/VASH vouchers in Collier County 4. Lack of priority by Collier County to provide housing for homeless. Temporary shelters. TBRA: Make funding available to agencies & charities who have direct contact with the individual. Use agencies in Collier County - not Lee and SWFL organizations. For affordable housing, Rehabilitation & acquisition - building takes to long. Cut the red tape with zoning and permitting. Waive fees and processing time. Many seniors are not equipped and experience to use PC and the internet for information and filling out applications. Many are in need for wrap around services. Housing is just the 1st step. 90% of homeless have some level of mental health issues. Some don't won't housing but need services that can be provided by low demand housing, i.e, one or two nights. Youth Haven Homeless Service Provider Interview Youth Haven has a teen transitional housing program, Rob’s Cottage, for youth aged 16-20. There is a lack of affordable housing for youth to transition to when they age out of the program. It can take six months for them to find housing. Many youth are in need of rental assistance as they transition, but they do not qualify for many of the federal rental assistance programs. The need for mental health services is growing, especially with youth. Families can not find access to timely mental health care. There are many job openings in the city, but people can not afford to live in the communities where they work. Geographically accessible affordable housing is needed. The HOME-ARP allocation is not a lot of money to work with, but all eligible activities are needed. As long as the funding is spent quickly, any use will benefit the County. 16.D.3.a Packet Pg. 1150 Attachment: HOME ARP Allocation Plan Collier County Revision #1 (29338 : HOME-ARP First Revision to the Allocation Plan) 10 Public Participation Describe the public participation process, including information about and the dates of the public comment period and public hearing(s) held during the development of the plan: • Notice of 1st public hearing published in Naples Daily News on 07/21/2022 • Public hearing: 8/8/2022 • Notice of public hearing published in Naples Daily News on 01/26/2023 • Public comment period: start date 1/26/2023 end date 02/10/2023 • Public hearing: 2/9/2023 Describe any efforts to broaden public participation: The 2023 Substantial Amendment to the PY2021 Action Plan recognizing new HOME-ARP funding was publicly noticed for a 30-day public comment period in accordance with the Collier County’s Citizen Participation Plan and with HUD regulations. The HOME-ARP Substantial Amendment was advertised in the Naples Daily News on July 21, 2022 and January 26, 2023. The public comment period ran from January 26, 2023 through February 10, 2023. An initial public hearing was held on August 8, 2022 during the planning phase of the Allocation Plan. A second public hearing was held on February 9, 2023 at 9 AM to review the draft Substantial Amendment to the 2021 Annual Action Plan. One public comment was received during the advertising period. In addition to the public notice and public comment period, Collier County requested key stakeholders in the community to participate in the online survey and/or direct interviews. Key stakeholders included representatives of social service organizations, homeless services providers, neighborhood associations, the CoC, the Housing Authority and other nonprofit organizations. Collier County also posted the public notice and draft HOME-ARP Allocation Plan to the County’s website and published a notice of public hearing in the Naples Daily News. Summarize the comments & recommendations received through the public participation process: Collier County received one written submission containing three comments during the public comment period for the amendment of the Action Plan to receive HOME-ARP. No public comments were made during the public hearing. The submitted written comments recommended imposing a residency requirement of two years in order to receive assistance from the HOME-ARP program, working through private developers for the construction or management of housing, and segmentation and targeting of the homeless population. Summarize any comments or recommendations not accepted and state the reasons why: The HOME-ARP funding is intended to support the provision of affordable housin g for qualified populations which already meet significant impediments to housing. Imposing additional restrictions will increase barriers to housing and the County will not explore such residency requirements. The County acknowledges that individuals experiencing homelessness have different needs both from a housing and support service perspective. However, while some activities, such as job training, may be eligible under McKinney -Vento, the support of the development of affordable housing has consistently been identified as a priority need in Collier County. 16.D.3.a Packet Pg. 1151 Attachment: HOME ARP Allocation Plan Collier County Revision #1 (29338 : HOME-ARP First Revision to the Allocation Plan) 11 Needs Assessment and Gaps Analysis Describe the size and demographic composition of qualifying populations within the PJ’s boundaries: Homeless as defined in 24 CFR 91.5 The CoC releases an annual Point-in-Time (PIT) Count that includes valuable data for addressing the needs of residents who are experiencing homelessness. The 2020 Naples/ Collier County CoC PIT count data was used to capture the most recent and relevant ho meless population data due to alterations in methodology during the 2021 count to mitigate the effects of the COVID -19 pandemic. According to the 2020 PIT count, White/ Caucasian residents are the largest demographic of people experiencing homelessness. Just over 78% of people experiencing homelessness are White/ Caucasian, 14% are Black or African American, and the remainder are American Indian or Alaskan Native, Asian, or multi-racial. 30% percent of overall homeless are Hispanic/ Latino. 62% of homeless individuals identify as Male. 78% are over the age of 24 and 21% being under the age of 18, mostly in households with other adults. About 13% were reported as chronically homeless. 127 individuals reported having a mental illness, 155 reported having a s ubstance use disorder, 27 are veterans, 10 are unaccompanied youth, and 95 are victims of domestic violence. Homeless Needs Inventory and Gap Analysis Table Homeless Current Inventory Homeless Population Gap Analysis Family Adults Only Vets Family HH (at least 1 child) Adult HH (w/o child) Vets Victims of DV Family Adults Only # of Beds # of Units # of Beds # of Units # of Beds # of Beds # of Units # of Beds # of Units Emergency Shelter 92 28 140 140 0 Transitional Housing 54 20 144 144 6 Sheltered Homeless 52 270 2 76 Unsheltered Homeless 7 142 25 19 Current Gap +87 -11 -131 -131 Data Sources: 1. Point in Time Count (PIT); 2. Continuum of Care Housing Inventory Count (HIC); 3. Consultation Populations At-risk of Homelessness as defined in 24 CFR 91.5 HUD defines those at risk of homelessness as individuals and families who have an income at or below 30% of the area median income (AMI), do not have sufficient resources or support networks to prevent them from becoming homeless, or live with instability. Using HUD's 2014 - 16.D.3.a Packet Pg. 1152 Attachment: HOME ARP Allocation Plan Collier County Revision #1 (29338 : HOME-ARP First Revision to the Allocation Plan) 12 2018 Comprehensive Housing Affordability Strategy (CHAS) data, the county has 12,075 households with incomes at or below 30% AMI, (over 8% of all County households). Forty-eight percent of these households are renter households. Households at-risk of homelessness include an estimated 21,785 households who are extremely cost burdened, paying over 50% of their income toward housing and 23,315 who are cost burdened (above 30%, less than 50%). An estimated 15,380 LMI (<=80% AMI) renters are cost burdened at the 30% mark, approximately 11% of total households in the County. The County’s demographic makeup is primarily 84.5% White/ Caucasian and 28% Hispanic or Latino (American Community Survey (ACS) 2016-2020). According to ACS data 20,184 renters in the County were cost burdened between 2016 -2020. Of those renters, 27.7% were over the age of 65. Additionally, according to ACS data, 27.67% (5,585 households) of cost burdened renters earned less than $20,000 betwe en 2016-2020, while only approximately 2,366 rental units offer a gross rent price within the needed range to prevent being cost burden. In other words, there is a lack of about 3,219 affordable rental units for households making under $20,000 a year. Fleeing, or Attempting to Flee, Domestic Violence, Dating Violence, Sexual Assault, Stalking, or Human Trafficking, as defined by HUD in the Notice According to the National Coalition Against Domestic Violence 37.9% of women and 29.3% of men in Florida experience intimate partner physical violence, intimate partner sexual violence and/or intimate partner stalking in their lifetimes. Statistics from the Florida Department of Law Enforcement document that there was a total of 1,686 domestic violence offenses with 668 arrests in Collier County during 2019.There is no data available regarding size and demographics of victims of human trafficking. The State of Florida reported 738 human trafficking cases in 2020. Other populations requiring services or housing a ssistance to prevent homelessness and other populations at greatest risk of housing instability, as defined by HUD in the Notice There is a large overlap between those at-risk of homelessness (above data) and households in need of assistance to prevent homelessness or at greatest risk of housing instability. Lack of affordability is the primary issue highlighted in data and consultation. Of the extremely cost burdened, 4,160 are renting households who are also in the extremely low-income range (<=30%) and are considered at greatest risk of housing instability. While there is insufficient data sources that match the exact definition of QP #4, we can glean general demographics and need from looking at the County’s poverty levels. Poverty is often a direct correlation as it relates to households requiring housing assistance to prevent homelessness or to those being at-risk of housing instability. According to ACS, there are 41,222 (11% of County) residents below the poverty level, of which 26% are under 18 year s old and 48.8% of those in poverty are above the age of 60. Of those living under the poverty level, an estimated 32,823 are White, 3,701 are Black or African American, 231 are Asian, 19,059 are Latino, and 2,438 are mixed race. There are more females (21,459) under the poverty level than males (19,763). 16.D.3.a Packet Pg. 1153 Attachment: HOME ARP Allocation Plan Collier County Revision #1 (29338 : HOME-ARP First Revision to the Allocation Plan) 13 Describe the unmet housing and service needs of qualifying populations : Homeless as defined in 24 CFR 91.5 The primary unmet need is the availability of units for residents experiencing homelessness. In particular, there is a need for approximately 130 beds for people who do not have children. Further, there is a shortage of homeless shelter units for families. During our consultation, many respondents highlighted the need for additional affordable housing within the County. As well as the need for supportive services. Stakeholders highlighted the following unmet service needs for the homeless population: case management, housing counseling, mental health services, supportive housing, and additional outreach services. It was also noted that there is an absence of sufficient homeless day-shelter resources for health, hygiene, counseling and severe weather refuge. Of note, many of the stakeholders highlighted a growing senior and disabled homeless population and no shelter that meets their needs, access to mental health services is a huge issue. Populations At-risk of Homelessness as defined in 24 CFR 91.5 The unmet needs for the populations at risk of homelessness include sufficient stock of available, affordable rental units and resources for rental or utility deposit assistance. Ultimately, there is a lack of inventory of affordable homes for purchase (primary method of stabilizing workforce), inventory of affordable rental units (with long term affordability periods). More development of affordable rental housing units would help ease the financial burden faced by many . More affordable, supportive transitional and permanent housing apartments, group homes, housing for Veterans and seniors, etc. would benefit the County. Housing counseling, mental health services, and legal aid/ landlord mediation for eviction proceedings were highlighted during our consultation as service needs for the at -risk of homelessness and greatest risk of housing insecurity. Further, ACS estimates 54% of the County’s renters are costs burdened (paying over 30% of income to housing costs). This amounts to a little over 20,637 households who are cost burdened. Lack of affordable housing inventory and a persistent affordability gap challenge both populations recovering from homelessness and those households at risk of homelessness or housing instability. Those at-risk of homeless or housing instability often need short -term subsidies such as mortgage/rent assistance to avoid foreclosure or eviction, as well as utility assistance to avoid shutoff or security deposits to allow new rental contracts. Supportive services such as housing or financial counseling, landlord mediation for eviction proceedings will also benefit these groups. Fleeing, or Attempting to Flee, Domestic Violence, Dating Violence, Sexual Assault, Stalking, or Human Trafficking, as defined by HUD in the Notice According to the 2022 Domestic Violence Counts Report for Florida conducted by the National Network to End Domestic Violence victims of domestic violence made 31 requests for shelter, housing, and other supportive services that providers could not provide. With approximately 90% of these unmet requests being for housing and emergency shelter. There is one organization in Collier County that provides emergency shelter and supportive services to victims of domestic and sexual violence and human trafficking, there are not enough beds available to meet the 16.D.3.a Packet Pg. 1154 Attachment: HOME ARP Allocation Plan Collier County Revision #1 (29338 : HOME-ARP First Revision to the Allocation Plan) 14 needs of victims in the area. Funding for additional transitional housing units and funding to maintain those units are needed. Permanent housing units are needed for survivors when they exit emergency shelter or graduate from The Shelter's Transitional Housing Program . Other populations requiring services or housing assistance to prevent homelessness and other populations at greatest risk of housing instability, as defined by HUD in the Notice The unmet needs for the populations needing assistance to prevent homelessness or at risk of greater housing instability mirror those from above, including rental payment assistance or utility deposit assistance and development of affordable rental housing units. Housing counseling, mental health services, and homeless prevention were highlighted during our consultation as service needs for those at greatest risk of housing insecurity. Healthcare assistance greatly benefits those at-risk of housing instability who are also disabled or elderly. Identify and consider the current resources available to assist qualifying populations, including congregate and non-congregate shelter units, supportive services, TBRA, and affordable and permanent supportive rental housing: There are multiple organizations providing services in Collier County, such as homeless assistance providers, victim service providers, nonprofit organizations, public housing agencies, mental health agencies and government-based organizations. Many social service agencies in Collier County provide benefits to homeless individuals and families to address homelessness. These organizations provide many services to their clientele, including but not limited to counseling, case management, life skills training, financial literacy classes, and victim advocacy, all of which help residents to develop the skills and knowledge to transition into permanent housing or independent living and to maintain steady employment. The goal of providing supportive services is self-sufficiency. The Collier County Housing Authority (CCHA) has been committed to providing safe, decent, and affordable housing to low-income residents in Collier County since 1966. The CCHA administers a number of programs, such as the Farm Worker Housing, the Housing Choice Voucher Program, and the Family Self-Sufficiency Program, to promote self -sufficiency and economic opportunity for local residents. These programs are income based and the eligibility requirements are set by HUD. The CCHA owns and manages four public housing developments: 276 units of low -income housing in Farm Worker Village, 315 units of farm labor housing also in Farm Worker Village, 30 units of farm labor housing known as Collier Village, and a 192-bed dormitory known as Horizon Village. In addition, CCHA serves an over 3,100 persons through the administration of the Section 8 rental assistance program and Family Self Sufficiency Program to provide s upport services to low, elderly, disabled, and homeless persons living in Collier County. Collier County partners with the Hunger & Homeless Coalition of Collier County to address the needs individuals and families experiencing homelessness or at risk of homelessness. The Hunger & Homeless Coalition of Collier County is a working group whose mission is to “support the planning, delivery and coordination of high-quality services to the hungry, homeless, and those at risk of homelessness in our community.” The group also works to provide programs and 16.D.3.a Packet Pg. 1155 Attachment: HOME ARP Allocation Plan Collier County Revision #1 (29338 : HOME-ARP First Revision to the Allocation Plan) 15 services related to housing, mental and physical health, nutrition, clothing, and education. According to the 2021 Housing Inventory Count, the Coalition has 91 Rapid Re -Housing beds. The Shelter for Abused Women and Children in Naples is the only domestic violence center in Naples. Additionally, the organization is Collier County’s official service provider for human trafficking victims, as ratified by Collier County Commissioners and Collier County Sheriff’s O ffice in 2016. Its services include emergency shelter (where stays average 29 days) and a transitional housing program (where residents can live for up to 2 years). The organization currently has two emergency shelters. The Beau Venturi Home, located in Naples, is a 60-bed emergency shelter serving victims of domestic violence. The Shelley Stayer Shelter, also a 60-bed emergency shelter, was built in 2020 in Immokalee to serve victims of domestic violence and human trafficking. Other services include a confidential hotline, safety planning, counseling and support groups in English and Spanish, court advocacy and assistance with daily needs such as food, clothing, toiletries, and household items. St. Matthew’s House operates several facilities in Collier County, including emergency and transitional housing in Naples, an emergency shelter in Immokalee (Immokalee Friendship House), and transitional supportive apartments for persons with substance abuse or mental health needs. Other services include a food pantry, thrift store, counseling and case management, and access to referrals for medical, mental health, and substance abuse needs through partnerships with other organizations in Collier County. Youth Haven is a 24-hour residential shelter for children removed from their homes due to abuse, neglect, or abandonment. In addition to a 23-bed emergency shelter, Youth Haven offers a child and family counseling center, in-home parenting classes, case management, and a teen drop-in center with showers, laundry facilities, and meals. Typical length of stays range from 45 to 60 days until children are placed in foster care or with a relative. Providence House provides a faith-based, transitional housing and self-sufficiency program for motivated women with young children who are homeless or at risk of being homeless. These women lack the long-term support necessary to acquire the assets foundational to reestablishing their families. The two-year accountability program not only encourages the development of self - efficacy, but it also provides women and their children with resources that they need to become independent. Providence House also offers case managemen t, life skills training, and counseling referrals. Wounded Warriors assists with the needs of Veterans and their families, with the focus on education, housing, and mental health. Wounded Warriors of Collier County is dedicated to ending Veteran homelessness in Collier County by employing various housing models. Its Alpha House is a transitional living facility for Veterans struggling with mental health and/or substance abuse issues. Additionally, it operates the Bravo House, a long-term supportive housing program. It is a three-bedroom home serving Veterans with fixed incomes. 16.D.3.a Packet Pg. 1156 Attachment: HOME ARP Allocation Plan Collier County Revision #1 (29338 : HOME-ARP First Revision to the Allocation Plan) 16 The Jewish Family & Children Services (JFCS) provides services to Veterans and their families through a client-centric approach. JFCS provides care for Veterans to maintain self-sufficiency and facilitates solutions to living a healthy lifestyle with a support system. Through the Operation Military Assistance Program (OMAP), Veterans are able to gain the assistance needed to obtain or maintain permanent housing, removing the barriers to living a stable, comfortable, and more satisfying life. According to the 2021 Housing Inventory Count, JFCS has 19 SSVF Rapid Re-Housing beds dedicated to Veteran families. Collier County will continue to increase its efforts to implement anti-poverty strategies for the citizens of Collier. The County will strive to increase its efforts in assisting homeowners and renters with housing rehabilitation and renovation of affordable housing to decrease the financial burden on low-to-moderate-income persons. Collier County will actively work to address the need for more decent and affordable housing by continuing to prioritize the investment of funds into all its housing programs. In the interest of preserving affordable housing, the County will continue to support the use of HOME program funds for activities such as: down- payment assistance, land acquisition, TBRA, and single/multifamily acquisitions and rehabilitation. Additionally, the County will continue to utilize CDBG program funds to rehabilitate owner-occupied homes. Identify any gaps within the current shelter and housing inventory as well as the service delivery system: As noted above, the primary gap in the shelter and housing inventory is the availability of beds for households without children. There are only approximately 314 beds available and nearly 412 residents who occupy or need a bed. Additionally, on the 2021 Housing Inventory Chart, there are 64 permanent supportive housing beds for households without children and 0 permanent supportive housing beds for families with children. The availability of housing units does not meet the needs of the qualifying population. There is a need for quality affordable housing units of multiple sizes in neighborhoods throughout the County. The renter vacancy rate in 2019 was 7.14% with those rates estimated to be much lower since the pandemic. Low-income renters are at the greatest risk of being unable to find affordable units, particularly extremely low-income households. There is also a gap in emergency shelter and permanent housing assistance for individuals and families that are fleeing domestic violence. The County has emergency shelter beds that remain fully occupied with no permanent housing beds (permanent supportive housing, other permanent housing, rapid rehousing) dedicated to the population. Identify the characteristics of housing associated with instability and an increased risk of homelessness if the PJ will include such conditions in its definition of “other populations” as established in the HOME-ARP Notice: Collier County recognizes the definition of Other Populations set forth by HUD in the CPD Notice (Families Requiring Services or Housing Assistance to Prevent Homelessness or At Greatest Risk of Housing Instability). The criteria related to these categories include househo lds/persons who 16.D.3.a Packet Pg. 1157 Attachment: HOME ARP Allocation Plan Collier County Revision #1 (29338 : HOME-ARP First Revision to the Allocation Plan) 17 are (1) extremely low-income with a severe cost burden, or households with (2) an annual income that is less than or equal to 50% of the area median income meet one of the following conditions from paragraph (iii) of the “At risk of homelessness” definition established at 24 CFR 91.5. No further characteristics of housing instability have been defined in the C ounty’s Consolidated Plan; thus the County will use the criteria listed in first six conditions listed in the “At risk of homelessness” definition established at 24 CFR 91.5 Identify priority needs for qualifying populations: The analysis above and consultation with key stakeholders have identified the following priority needs: 1. Development of Affordable Rental Housing 2. Rental assistance 3. Supportive Services (McKinney-Vento Supportive Services, Housing Counseling Services) Explain how the level of need and gaps in its shelter and housing inventory and service delivery systems based on the data presented in the plan were determined: To determine the level of need and gaps Collier County looked at both qualitative and quantitative measures. Data from the US Census, CHAS, 2020 CoC Point in Time Count, and 2020 Housing Inventory Count were used in partnership with feedback and on-the-ground insights from key stakeholders in the area. The takeaways from data analysis and stakeholder input were incorporated into the needs assessment. 16.D.3.a Packet Pg. 1158 Attachment: HOME ARP Allocation Plan Collier County Revision #1 (29338 : HOME-ARP First Revision to the Allocation Plan) 18 HOME-ARP Activities Describe the method for soliciting applications for funding and/or selecting developers, service providers, subrecipients and/or contractors and whether the PJ will administer eligible activities directly: The County expects to administer programs directly. Once the County has received the full HOME-ARP grant award from HUD, the County will conduct a Request for Proposals for a specified period of time to make it a more competitive process in awarding these funds. During that time any organization, developer, subrecipient, or Community Housing Development Organization (CHDO) is eligible to apply. At the close of the application period, all applications received will be reviewed for completeness, eligibility, and their ability to deliver on the priority needs identified within this plan. Each applicant will also be reviewed for their abil ity to carry out the project meeting all eligibility criteria. Award(s) will be made based on the applicant’s project scope as it pertains to the outlined priority needs in this plan as well as the applicant’s familiarity with utilizing federal funding an d ability to comply with all federal and local requirements. If any portion of the PJ’s HOME-ARP administrative funds were provided to a subrecipient or contractor prior to HUD’s acceptance of the HOME-ARP Allocation Plan because the subrecipient or contractor is responsible for the administration of the PJ’s entire HOME-ARP grant, identify the subrecipient or contractor and describe its role and responsibilities in administering all of the PJ’s HOME-ARP program: The County will administer the program. The County has not yet expended any of the HOME-ARP administrative funds. Use of HOME-ARP Funding Funding Amount Percent of the Grant Statutory Limit Supportive Services $0 Acquisition and Development of Non- Congregate Shelters $0 Tenant Based Rental Assistance (TBRA) $0 Development of Affordable Rental Housing $2,319,717 Non-Profit Operating $0 0% 5% Non-Profit Capacity Building $0 0% 5% Administration and Planning $409,361 15 % 15% Total HOME-ARP Allocation $ 2,729,078 Additional narrative, if applicable: Development of Affordable Rental Housing Collier County will allocate $2,319,717 (85%) of its allocation to the development of affordable rental housing. The County will seek to maximize use of funds by leveraging with other sources of funding as available. Please see further information on page 20 in the Housing Goals section. 16.D.3.a Packet Pg. 1159 Attachment: HOME ARP Allocation Plan Collier County Revision #1 (29338 : HOME-ARP First Revision to the Allocation Plan) 19 Administration Fifteen percent of the allocation is set aside for costs of overall HOME-ARP program management, coordination, monitoring, and evaluation. Expenditures may include salaries, wages, and related costs of the county’s staff and/or administrative services performed under third party contracts or agreements. Describe how the characteristics of the shelter and housing inventory, service delivery system, and the needs identified in the gap analysis provided a rationale for the plan to fund eligible activities: After reviewing the gap analysis for shelter and affordable housing availability, as well as analyzing local capacity and other sources of funding as it relates to community needs, the County identified eligible activities that will assist individuals and families of the most vulnerable qualified populations. The gap analysis shows that there is a need to increase the supply of affordable housing as a means to increase availability of permanent supportive housing and provide opportunities for LMI households who are at-risk of homelessness or housing instability. Developing affordable rental housing was highlighted by stakeholders as the top priority and these efforts work as a more permanent solution to assist the QPs. Despite the need for rental assistance also being identified as a top County need, the County determined the one-time HOME-ARP allocation was best used as a long-term capital investment, hence, the bulk of funding going toward developing affordable rental housing. Furthermore, Supportive Services and TBRA programs can be more difficult to run, given the relative size of the grant and available operating or administration dollars to support potential subrecipients. HOME-ARP Production Housing Goals Estimate the number of affordable rental housing units for qualifying populations that the PJ will produce or support with its HOME-ARP allocation: Collier County is in the process of planning an affordable housing project that will produce an estimated 250 total units. The County estimates 100 10 of these units will be new affordable rental units that will be new affordable rental units that will be produced using HOME-ARP funds. Describe the specific affordable rental housing production goal that the PJ hopes to achieve and describe how it will address the PJ’s priority needs: The primary goal will be to help address the lack of affordable housing in the county and to assist as many QP households as possible with rental assistance and supportive services. By adding affordable rental units to the housing stock, Collier County aims for the HOME-ARP allocation to offer a long-term solution that contributes to the overall goal of reducing homelessness and housing instability for the most vulnerable populations. 16.D.3.a Packet Pg. 1160 Attachment: HOME ARP Allocation Plan Collier County Revision #1 (29338 : HOME-ARP First Revision to the Allocation Plan) 20 Preferences Identify whether the PJ intends to give preference to one or more qualifying populations or a subpopulation within one or more qualifying populations for any eligible activity or project: • Preferences cannot violate any applicable fair housing, civil rights, and nondiscrimination requirements, including but not limited to those requirements listed in 24 CFR 5.105(a). • PJs are not required to describe specific projects to which the preferences will apply. Collier County will not provide preferences to any population or subpopulation HOME-ARP Refinancing Guidelines The County does not intend to use HOME-ARP funds to refinance existing debt secured by multifamily rental housing. 16.D.3.a Packet Pg. 1161 Attachment: HOME ARP Allocation Plan Collier County Revision #1 (29338 : HOME-ARP First Revision to the Allocation Plan) 21 HOME-ARP Supporting Documentation 16.D.3.a Packet Pg. 1162 Attachment: HOME ARP Allocation Plan Collier County Revision #1 (29338 : HOME-ARP First Revision to the Allocation Plan) Ner BxtluS{emx PARTOFTHE USA TODAY NETWORK Published Daily Naples, FL 34110 CC HOUSINGHUMAN VETE RAN SERV 3299 TAMIAMI TRL E STETOO NAPLES, FL 34112 Affidavit of Publication STATE OF WSCONSIN COUNTY OF BROWN Before the undersigned they serve as the authority, personally appeared said legal clerk who on oath says that he/she serves as Legal Clerk of the Naples Daily News, a daily newspaper published at Naples, in Collier County, Florida; distributed in Collier and Lee counties of Florida, that the attached copy of the advertising was published in said newspaper on dates listed. Affianl further says that the said Naples Daily News is a newspaper published at Naples, in said Collier County, Florida, and that the said newspaper has heretofore been continuously published in said Collier County, Florida; distributed in Collier and Lee counties of Flor:ida, each day and has been entered as second class mail matler at the post office in Naples, in said Collier Counly, Florida, for a period of one year nexl preceding the first publication of the attached copy of advertisement; and afllant further says that he has neither paid nor promised any person, or corporation any discount, rebate, commission or refund for the purpose of securing this advertisement for publication in said newspaper issue(s) dated or by publication on the newspaper's website, if authorized, on lssue(s) dated; 07 121 I 2022 Subscribed and sworn to before on July 21 ,2022: of Wl q commission expires Publication Cost: $1,456.00 Ad No: 0005342594 Cuslomer No: 1304214 PO #: f of Affidavilsl This is not an invoice NANICY H[YIiMANI f,la3t:ifi Public Stn'in oI Wist;onsin 16.D.3.a Packet Pg. 1163 Attachment: HOME ARP Allocation Plan Collier County Revision #1 (29338 : HOME-ARP First Revision to the Allocation Plan) PUBLIC I'lOTl(Er HOMt-AftP Allcxation flan Public Hearing Published on: ,luly 21, 201? nnd Hum$n $) il cJevelop- nnunl Ad,tion OurinS the devclopmeflt ol the HOME-ARF Allo,cation Plun, [ht' County intencls 1o empltusir* the frrllowtrq tang,r ol auivitie: to ,cduce hort€l€3r$e$i ond in(roala houring stcbillty: I l.lSMEASf Hestol HEUllng, {production or pteservaliort of a{- fordablp housing). Acqulsilion end Developnunt of Non-Congragatx Sheher Unit Arllslin(e can be rnnde lor pensont t'rith rlirabilities or requrr€- menls lor Spanirh rpe,rkiftg r€trdents upon requeet by calling {ollier CounE Hurnan Serul<i:r. 119.152.8S99. Topic; Tims: HOME-ARP Corn munity Vi nu?l Publi( H€aring August 0, 2022, 9:30 a.m. Easlern Time (U5 and frnada) .A n9 AVISO PI.]BLIIO: publica del Plsn de Asign;rcion HOlttE-ARP Publirado el: 2 I dr lulio del 1022 anrj lor funding, ol for $$9l3t6n(C vre!8r 727 70759?prrvd=5Xh m SXli\rXJ 3 eX 0759 870177 Ptrblish I tirrle \rlth Lrgal Noti(es on lhur5d.ly, July 21, Organizat'ions er firnrr re<king inlorm&lion. le(hni(al asslttan(e vrit'h lhs ipflli(at;on. or havin$ .rrry quettiont rllay (ontrct Tracey Smith aI lI9-?52.14)8 ot *mall al lra(ey,Jrtrith*(olli(r(s untyf{,qov. (ollicr (ounlf il an Equsl Opt)orl{rnil} [rnptsyl'1. {,:llier (or-rnV ronwlier with the Foir Hourinq A(r (4? u,5.c, 3600, et seq) ond '[ollirr (orrnty Iair l-lousirrq Ordlnance 92-9. [t*tei 3:01? Audiencia El D€partamento dp s€rviti,ls Comunitarioi y Humao(}i del nocd fo{ .uusl €n Psr- a,3l 16.D.3.a Packet Pg. 1164 Attachment: HOME ARP Allocation Plan Collier County Revision #1 (29338 : HOME-ARP First Revision to the Allocation Plan) <ondarjrr de Colllfi (CH5) zrtr dosarrollando una enmienda ,ujtan(isl a ru plor dc J((ldr )nual dcl .)iio filcsl ?O2! paro lrr<lrrir el uro de fondos rn lor siguiente! plogramas dtl Deplrt.rrnrnlo de Vivicnda y Dcsarrolio Urbnno'dc-tos ErtJdog Urtidos (U.5. Deponm€nt of Houllnq rnd Urbilri Drveloprhrnt. HUD). olthhrdos al ?0 (h iunio de 2022 paro COBG (3100.000), HOME (Sr,442,5S0), .sHrP (tr,880,472). E5G (52t.r08). y para ia*t,0?8,00 6torgod& en fantlot l{OME.ARP. {orno ie ha dicho, el rondado d$ col,iEr ha recjbldo $2.7J3.07Srn Iondor HOME-ARP. El condado Fuede lleusr a cabo determi- nadas actividader, entrs las que re incluyen: a) administretlvar y de planifitation, bl de slquiler de viviendar HOME-AftP, r) de eyuda El alquiler birrada en el inquilino. d) dH senritis: dr apoyo, y e) de adquirician y dB$rrrollo ds .llbprguet no.colerti- vo4. llursnt* el derarrollo del Pl.rn de Asignacion IIOME--ARF, el rondaclo pretentj+ hacar hincapid en l-: siguiente garna de tcti- vrdades para reducir la falta de vivienda y aumrmar la elrahilidad da Ia rnirma; err virtud dlr a?t}]g tlB de IO21 .Viviendas de alquiler HOME-ARP tprodu<cidn o conserva(ion de vi'riendas asequibles) rAdquisicidn y desarrollo de unidades de albergue no mlectiuar ion se endls al Plsn Collier. t9 tltl dc de dc I'lora: Publi(Jr una vr-rz con ovigos lcaolcs rl Jutyat julio 21, 702? COUAL IIOUSINC OPPONTUHIIY La audienci'r Priblica se celebrarn el hrne, I de agosto de 20?t. a lar 9;30 r1e ld nrafiarro tn la rdld Human Rerorrr(er Troinlnq Roon\ ubkn{ia en iJ03 Tornranri Traial E;rl (Humf,n Rerqurcei Brrllding 8) y a lrdv€i cle.Zoorn err el siguierRe enlace- Se aniln; f n(are(rda rn ente a p3 rtlfl r)rr. tt puede proportiofiar arirtenri<r s ld$ per$onas ton dirq6pad. dades o rYqrrititoi DBrts lqi residentes dt habh hilpan*, previa rolicitud. llanrando ol Del)drtorlrrrrtr) dF 9*rvieiol Humaniri del Condado,Je (ollier. 2j9-251-8999 Terra: Audienci,r pirbli(a v;r(u.rl de la conrunidad de HOME-ARP HorD; B de Agosto del 2022, 9:30 a.rn,, hora del este {E[, UU, y Canada) Urrine .r la reunir\n de Zooni https:I/uro!rYeb.roonr.u5/j/1892 7 27 7 07S9?1twd=SXhrn SXTiWXJ3eX 2Wbf nlltrUp6L2dQUI09 ldrntiti{aciDn f)ora tll evento: 1t927277 0?5! todigo de atceso: 820'177 L.ri or0onle,r<iorrcs o riarprt,,at qrre tldr$que11 irrloru*atidrt, nsiltcnclt_. tkni(a psra li^ iolir-itud-,o.ltrrg.rn al-(tunit dudn pueden dlrigirse a Tr.rccT 9nrirh .rl 21P.25).1418 o por {arreo clr(trdni{o t t,odry.gmith&{Dllicil.ou11 tyfl.0ov q{J* 3* u que I - 16.D.3.a Packet Pg. 1165 Attachment: HOME ARP Allocation Plan Collier County Revision #1 (29338 : HOME-ARP First Revision to the Allocation Plan) e con HUD ptsra veri{i(ar el (illimo dfa real rtel periodo de obie(idn. Pub Date: )vl,l Zl,2O2?;1,53d2504 16.D.3.a Packet Pg. 1166 Attachment: HOME ARP Allocation Plan Collier County Revision #1 (29338 : HOME-ARP First Revision to the Allocation Plan) ~n plts iaily Nttull PART OF THE.USA TODAY NE.TWORK Published Daily Naples, FL 34110 CC HOUSINGHUMAN VETE RAN SERV 3299 TAMIAMI TRL E STE700 NAPLES, FL 34112 Affidavit of Publication STATE OF WISCONSIN C OUNTY OF BROWN Before the undersigned they serve as the authority, personally appeared said legal clerk who on oath says that he/she serves as Legal Clerk of the Naples Daily News, a daily newspaper published at Naples, in Collier County, F lo rid a ; distrib u te d in C o llie r an d Le e co u n tie s of F lo rid a ; th a t th e att ache d co p y of the ad ve rt isin g w as pu b lish e d in sa id ne w sp a p e r on da te s liste d . A ffi a n t furt he r sa ys tha t th e sa id N a p le s D a ily N e w s is a ne w sp a p e r pu b lish e d at N a p le s, in sa id C o llie r C o u n ty, F lo rid a , an d th a t the sa id ne w sp a p e r ha s he retofo re be e n co n tin u o u sly pu b lish e d in sa id C o llie r C o u n ty, F lo rid a ; distrib ute d in C o llie r an d Le e co un tie s of F lo rid a , ea ch da y an d ha s be e n e n te re d as se co n d cl a ss m a il m a tt e r at th e po st offi ce in N a p le s, in sa id C o llie r C o u n ty, F lo rid a , fo r a pe rio d of on e ye a r ne xt pre ce d in g the first pu b licatio n of th e att ache d co p y of ad ve rt ise m e n t; an d affia nt furt he r sa ys th a t he ha s ne ith e r pa id no r pro m ise d an y pe rso n , o r co rpo ratio n an y disco u n t, re b a te , co m m issio n or re fun d fo r the p u rp o se of se cu rin g th is ad ve rt ise m e nt fo r pu b licatio n in sa id ne w sp a p e r issue (s) da te d o r by p u b licatio n o n th e ne w sp a p e r's w e b site , if au th o rize d , o n lssue(s) dated: 01/26/2023 ----,.~~ ---- S u b scrib e d an d sw o rn to be fo re o n Ja n u a ry 26 , 2 0 2 3 : M y co m m issio n exp ire s NANCY HEYRMAN Notary Public State of Wisconsin P u b licatio n C o st: $889.00 A d N o : 00 0 5 5 7 0 4 8 3 C u sto m e r N o : 13 0 4 2 14 P O #: # of A ffi d a vits 1 This is not an invoice 16.D.3.a Packet Pg. 1167 Attachment: HOME ARP Allocation Plan Collier County Revision #1 (29338 : HOME-ARP First Revision to the Allocation Plan) PU B LI C N O TIC E CO UI ER CO UNTY ., FL O RI D A PU BLI C: COMMtNT l>EIUOD & f>UBLrC HEARING HOME INVESTMENT PARTNERSHIPS PROGRAM AMERICAN RESCUE PLAN (HOME-ARP) NOnc:E is givM that coUier County was awarded Si, 729,0713 in HOME~Ame(kan Re.scue Plan (~ROME-ARP~) . funds In a O• ,ne•tirt'le allocation from the U.S. Department of urba,n, Hoo$ing and oevelopm4lnt ("HUD~). federal HOME•ARP fun,ding was created to assist individuals or households who are expedendng homelessness, at risk of homelessness, Md other vulnerable pcpulations, b)' prov,ding affordable housing, rental assistance, iupportive services., and MrHongtegate shelter, to reduce :homele-sSotiess and increase housing stability. The HOME-ARP Al- locatlon Plan ( "the Pli'ln ") de fin!!$ the use of the HOME·ARP ?rant fonds to address these needs within the. HUD-approYed el- 1~ih1e activitles. The County will make fonds ,available for activl- ties once the HOME-ARP Allocation Plan's assodatad consults- tion, p.ublic partrdpatio.n process1 and HUD appro.val haw been completed through the substa ntial amendment of the PY 2021 Annual Action Plan. A draft of Cotlier Counfy's HOME-ARP Alloc~ron Plan will be avallabte for a tS-0ay puhlic comment period. Nottce is also 9tv- en that a public hearing will be held to allow the public to re- view and make comments. Citizens can v1ew the draft Plan from Jam,1ary 2ij1 2iJ23 to ~bn,1- .ary 10., 2023 at the Community and Human Sgn,1ces Division of- fice .it 3339 Eart Tarnierni Trail, Health and Publk Services Build- ing H, Room 213 Naples, Florida 34112, and rt can also be viewed and downloaded from the County's website https://ww w. co 11 i er co 1,1 n t y f I.go Y / 91 over nm en tt pub Ii c - s e rv i c es/di vis i o ns/c om m un ity-a n d-h u ma n-s erv i ce s- divisionlhousing-program~gran4. 1PubHc comments regarding the drc,ft HOME-ARP Allocation P1;_in can be submitted by m;iil, de'1ivered to the .iddress ebove or vi.i email at hQU$inginfo@l:ollierw,u ntyfl.gov . IPubli~ He.irir:ig: .A publi,c; he.iring wm be held to review. and d~ cuss the draft Pl;in on February 9, 202i, at 9:00 a.m,-H:00 a.m. at Community and Human servlces onices at 3339 E Tarntarnl Trail, Building H, 3rd Floor, Naple$ FL 34112. Collier County will consider .iny commems oi- view~ of citizens received in writing or orally at the publi,;; hearing in preparing the Plan. tFor forth er information, please contact the Community and Hu- :man Services Dillision at (239) 2 52-4228, A(;(.es>ibility; Collief" CotHl;t}' dc;>e~ not dimiminate on the t>asis of disability in the admission to, . ac,ess to, or operations of pro- grams, services., or .ictivitie$, induding the put>lic; partidpation ii>roc~. Ass istance can include, but 1s not limited to, assistance for non-English speaking persons and for ttiose who require a :sign language interpreter, If you require sr.edal aid or sel"lice-s as atldressed in the Americans with Disab1litie$ Act or require :som eone to translate or sign, please contact ttie Communlty & Human Service1; office at (239} 252-4228. Arrangements for assis- tance should be made through the Collier County Commtmlty and Human Ser\llces Division at leacst 1ive. (5) wor1c:i ng days prior to the public hearing. Residents are encouraged to attend and ,participate. For additfonal . information contact Lisa Carr at {239} 252•2339 or lisa,carr@-colliercountyfLgov. AVISO PUBUCO CONDAOO OE COLLIER, FLORIDA P£RiOOO OE COMENTARIPS p(m1cos Y AUOIENCIA PLIBLICA PROGRAMA OE ASOCIACION PARA LA INVERSt¢N EN VIVIENOA Pl.AN OE R.ESCATE ESTADOUNIOENSE (HOME-ARP) ~ INFORMA que el condado de Collier recibi6 $2, 72!},078 en fondos del Plan de roseate estadounfdcms-e HOME {HOME-Amer- ican Rl!'Seue Pfan, HOME•AFtf>) en una aslgnacl6n (mica del :Oepartamento de VMenda y D~rrnUo Urba no de los EE. Ul..1. {I-lousing and Urba n Development, HUD). Los fondos federales HOME•.ARP se aearon para ayudar a fas personas o a las famlllas .que se encuentran sin hogar, en riesgo do quedar541 sin hogar y a otras pobtaclones vulne,rables, propordontsndoles vlvie,ndas as<!Qulbles, aslstenc.la para el alquller, servldos de apoyo y ,illojamiento no colectlvo, con el fJn de reducir la cantldad de personas sin hogar y aumentar la establlidad dtl' la vlvlenda, . El Plan de aslgnacl6n. HOME-ARP {'el Plan") define el USO de los fondos de la subvenci6n HOME-ARI" para ahordar estas ne<:esl• dades dentro de las attMdades elegibles aprobadas por el HUD. El (ondado pondra a disposld6n los fondos para las actMdades una vez que se haya cornpletado la conwlta a.sodada al Plan d@ asignad6n HOME•.ARP , el pr<Xeso de partklp,acl6n, publka y la aprobaci6n del HUD a traves de la emnienda susttindtil del Plan de Acci6n Anual l'Y 2021. IJr'I borrador del Plan de asigriad6n HOME-ARP del condado d@ <:olller estata disponible pa.rti un periodo de l'.'.omenttirios _publicos de 15 dfas .. Tambien se informa que ~e celehr.1ra una .iudlenda, publica para permitir que el publico examine fti 1propuesta y rea lice tomenta rlos. Los dudadanos pueden aa:eder a.I borrador di:!I pti'ln de9de el 26 de enero de 2023 hasta el 10 de febrero de 2023 en la .ofidna <ie la Division ~e ~ervl~ios S°.~unitaflos '/ Humana.s. ubic~d~ en 33.39 East Tam1arm Trad, Ed1ftao H de 5alud y Ser1.r1c1os Pubhcos, '.Sala 2.13 Naples, Florida 34112, 'i fambien se puede ver y descargar de la pagina web del condado https:1/w',W,l .coll:iereou ·n,tyfl .gov/governme ntfp ublk-se rvices/divisions/commu niW-and- human-services-di~•isiorl/hQusi ng-prograrns/grants. Los comentarfos de! publico sobre. el !)toyecto del Plan de .isignaci6n HOME-ARP pueden enYia.rse por Correo, a la diretdon arrit>a indicada, o por correo eleroonico a la siguiente <iire:ci6rl ho~inginfo@rnlliercour1tyfLgov . . . . , Aud1encia publica: se celebrara una aud1enc1a publ1ca para rP11is;ir V ;m;,Jj7;,r Pl hnrr,trlr,r nPI P'i,m pf (I ,fp fpl,r,,rn ,Ip ;,o:n 16.D.3.a Packet Pg. 1168 Attachment: HOME ARP Allocation Plan Collier County Revision #1 (29338 : HOME-ARP First Revision to the Allocation Plan) de la$ 9:00 a. m. a ~las 11 :()()~a. m. en~ laji. (>ndna$ de k~, .. rdo$ -co'. rnunltarlos y Humanos en 3339 E Tamiarni Trall, Edifi<;io H, ;L• piso, Naple!; FL 34112. El: condado de Collier tendril en cuenta 10$ comemanos y opiniones de 1-0$ dudadanos retibidos por escrtto o en forrna oral en la audianda pubhca cuando se pre- [Pare el plan. Para obtener mas inforrnaclon, i;om u niquese con la Divi~i(i.n d·e Ser.°"k .. io·s· .Com .. uni.t.i rios 'i Humanos II.a. mando .ii (239) 252-4228. Ao::esibilid.id: el condado de C::Qllier no c;l~crimina por motives ode di$,;ap.icidad en I;, admf$i6n, acceso 1,1 operadcnes de pr09r.i- mas, servicics o ectividades, incluldo el prcceso de particlpacion :p(lbli,;a, t.i o3$!Stencia puede induir, entre OtrD$, aii:iten<ia parn ;p,ersonas que no hablan ingl~ y pere las que requieren un interprete de lengu<1Je de $ei'ias. S1 necesita ayuda Q servkios es- :peciales come se aboorda en la Le>' de Erndounidenses con Dis- capaeidades o si necesita que alguien tradu.«a o un interprete ode lenlluaje de senas., comuniquese ,;on .la ofo:ina de Servkios Comun1tarios >' Hum.ino~ Uamando al (239) 252-4228. Se deben lh.icer ;irreglos para fe(ibir asistenda a traYe$ de la Oivisl6n de Servicios Cornun itari05' y Ht1 mano$ del Conda do de Col I ier al me- if10$ cinco (5} dia$ h.i biles ante$ de l;i avdiencia p(lblic,;a. Se invita a [05 residentes a asistir y participar. Para obtener mas inforrnad6n, CQmuniquese con llsa Carr 11.imarido al (239) 2'52- 2339 o emlbiend o a lfsa.nm@<omercountyfl.gov, ,Pubtlate: Jan, 26, 2023 #5S70483 16.D.3.a Packet Pg. 1169 Attachment: HOME ARP Allocation Plan Collier County Revision #1 (29338 : HOME-ARP First Revision to the Allocation Plan) Collier County, FL HOME-American Rescue Plan Allocation Plan Public Comment Recommendations regarding Allocation Plan Respectfully submitted by: Richard Forman, richard@hvgllc.com Dated: February 9th, 2023 16.D.3.a Packet Pg. 1170 Attachment: HOME ARP Allocation Plan Collier County Revision #1 (29338 : HOME-ARP First Revision to the Allocation Plan) 2 Conclusions Collier County should enact a strong approach towards affordable housing and homelessness as without intervention, policies or procedures, the problem is going to grow. There are three (3) recommendations, and they are detailed and supported below: • RESIDENCY REQUIREMENTS: The County needs to prioritize the needs of established residents. It is a waste of valuable resources to provide assistance or allocation of affordable housing units to recent arrivals. Currently, residents who have been in Collier County for 2 years or longer have no greater priority than does someone that arrived in our County on Thursday of last week. This is wrong and priority should be established for our community. In fact, by providing housing support for recent arrivals, the County might in fact be encouraging homeless to migrate here. • PRIVATE DEVELOPMENT: PUBLIC SUPPORT The County government should not be the position of building or managing housing stock. If any housing stock is to be created it should be done so by private developers. The role of the County should be to incentivize, support and otherwise develop policy recommendations that can be put into place by private developers. The County should not put itself in a position to operate or develop housing as it will inevitably be done far less efficiently, more politicized and ultimately a strain on our public resources. • SEGMENTATION: I recognize that this hearing is mostly about homelessness or those at risk of homelessness, however, as it relates to affordable housing/homelessness, it is important to segment the population. There are several segments of the population that fall under the affordable housing/homeless umbrella (see below). It is important that the County treat these segments differently. There is not one-size-fits-all approach towards homelessness and affordable housing and policy decisions should be made in light of these different segments. If we segment and exclude the homeless population that is either youth, mental health issues, substance abuse issues we are left with a very small population of about 127 individuals who are homeless (and not subject to one of the other groups listed above). For these individuals, we need to focus on career training, budgeting, self empowerment and how to secure a job that pays enough for them to afford suitable housing. 16.D.3.a Packet Pg. 1171 Attachment: HOME ARP Allocation Plan Collier County Revision #1 (29338 : HOME-ARP First Revision to the Allocation Plan) 3 Residency Requirements Collier County is a desirable place to live. Many residents have worked hard to afford the ability to live in this community. I think it’s important to understand that there is no universal “right” to live in Collier. Everyone would quickly agree that this perspective doesn’t make sense. The County has many desirable attributes including cleanliness, no personal income taxes, great schools, low crime rate, excellent parks and great weather. Those desirable attributes are well known and it is one of the reason that our County continues to grow in popularity. According to the Census Bureau, the population of Collier County grew to 385,980 (July 1, 2021) from 375,752 (April 1, 2020)1. This is an increase of 10,228 people or 2.7% over a fifteen (15) month period which represents an annualized growth rate 2.2%. To put that growth rate into perspective the overall growth in Florida is 1.9%2 and the overall growth rate of the US Population is 0.4%3. Collier County is growing at a rate that is almost six (6) times faster than the population of the United States. I’m sure that most of the people that moved to Collier County can support themselves, but for those that can’t, they should not be a burden from day one In-County vs. Out-of-County In most states, there is a public college option that provides discounts to in-state residents. For Florida, the residency requirement for higher education is twelve (12) months4. It is reasonable to beneficiaries of affordable housing benefits also have a residency requirement. I don’t know what is a reasonable amount of time, but I do think that citizens that have lived here and been a part of the community and most likely were contributors to the tax base should be given priority over new transients. As it turns out most of the people moving to Collier County moved from other parts of Florida 1 https://www.census.gov/quickfacts/colliercountyflorida 2 Census Bureau, 2022 reporting, https://www.census.gov/library/stories/2022/12/florida-fastest-growing-state.html 3 https://www.census.gov/newsroom/press-releases/2022/2022-population-estimates.html 4 https://www.floridashines.org/residency-for-in-state-tuition 16.D.3.a Packet Pg. 1172 Attachment: HOME ARP Allocation Plan Collier County Revision #1 (29338 : HOME-ARP First Revision to the Allocation Plan) 4 According to the Federal Reserve Bank of St Louis (FRED) the unemployment rate of Collier County peaked in march of 2020. However, since August of 2021, the unemployment rate dropped to 4.0% and has stayed below 4.0% since that time.5 Having no unemployment is a bad condition for the economy. Having no unemployment indicates that there will be an extreme pressure on rising wages, almost uncontrollable. The BLS (Bureau of Labor Statistics) considers full employment at the level of unemployment which does not created wage pressures greater than the rate of inflation. Bloomberg reports that the 6 “U.S. Federal Reserve economists currently put this so-called natural rate of unemployment at between 4.1 percent and 4.7 percent.” 5 https://fred.stlouisfed.org/series/FLCOLL0URN 6 https://www.bloomberg.com/quicktake/full-employment 16.D.3.a Packet Pg. 1173 Attachment: HOME ARP Allocation Plan Collier County Revision #1 (29338 : HOME-ARP First Revision to the Allocation Plan) 5 Figure 1 - Unemployment rate in Collier County, Source St. Louis Fed Given that Collier County is already at full employment, and that 98% of people that are looking or want a job have one and this situation has existed for well over a year we should discount the issue of COVID as a reason for unaffordable housing. As with all situations, of course there will be exceptions. However, in the aggregate on a community wide basis we should be thinking about solutions that are county-wide and not based upon unique, one-off situations. When we are thinking about the small cohort of individuals who are homeless the research shows that there are about 127 individuals based upon the PIT survey (excluding vets, youth, domestic abuse, substance abuse and mental disorder). I would surmise that they are unable to secure and retain a job that is able to pay enough to support their housing needs. This happens to be a very small cohort on a county wide basis. Private Development, Public Support Under no circumstances should Collier County own and/or operate its own housing program. Throughout this county, there is not one municipality that has done it right. The worst landlord in NYC is the NYC Housing Authority. The worst landlord in Chicago is the Chicago Housing Authority. Most, if not all, municipalities are unable to successful build or operate public housing. A quick sampling of some of these issues are detailed below: 16.D.3.a Packet Pg. 1174 Attachment: HOME ARP Allocation Plan Collier County Revision #1 (29338 : HOME-ARP First Revision to the Allocation Plan) 6 • “The public housing agency reportedly collected just 65% of the rent it charged during the 12 months leading up to December — the lowest in NYCHA’s (the New York City Housing Authority) history.”7 • Tracey Scott, the CHA’s (Chicago Housing Authority) chief executive, was barraged with complaints about poor building conditions, questions about the agency’s deal to lease land to the Chicago Fire soccer team and concerns about its vacant units amid the city’s homeless crisis. 8 • “The U.S. Department of Housing and Urban Development took possession of the Slidell Housing Authority (New Orleans, LA) — which administers federally funded affordable housing programs for the city —after finding the agency in “substantial default”.9 • “The city of Annapolis has asked a federal judge to consider placing its troubled public housing authority in receivership”.10 There are scores of examples of failed implementation of public housing managed by municipalities. I think it would be wise for Collier County to avoid this foreseeable problem. Public-Private Partnership A better solution is to figure out how to incentivize and motivate and assist private developers in developing and managing affordable housing. Developing real estate is challenging. It is unrealistic to assume that the government can do so more efficiently or effectively than can a private market oriented developer. Developers are not the problem Whenever the topic of affordable housing comes up, there is often the thread of accusation and vilification of landlords, landowners and developers. I find this intriguing because it seems to be 7 https://nypost.com/2023/01/24/nycha-rent-collection-crashes-to-record-low/ 8 https://blockclubchicago.org/2023/01/25/aldermen-residents-blast-public-housing-leader-at-city-council-hearing/ 9 https://lailluminator.com/2023/01/11/federal-government-takes-over-slidell-housing-authority/ 10 https://www.capitalgazette.com/maryland/annapolis/ac-cn-haca-annapolis-lawsuits-20221031- epqb4brhp5e43gdplt6h2ifrgq-story.html 16.D.3.a Packet Pg. 1175 Attachment: HOME ARP Allocation Plan Collier County Revision #1 (29338 : HOME-ARP First Revision to the Allocation Plan) 7 unique. When the restaurants increase prices, we don’t accuse restauranteurs of price gouging. Developers and landlords are not much different than employees. Both groups are trying to maximize the value of their assets (landlords) or time (employees). When a tight labor market materializes, and an employee asks for a raise, is this considered price gouging? Unlikely. Typically, entities or people ask for more money when either, or both (a) their costs are going up due to inflationary pressure or (b) there is a supply constraint and their asset or labor is worth more than they are currently getting in the market. Either way, pricing is subject to market forces. Housing is no different. Housing is like any other good/service (albeit a lot more fundamental to our health and happiness than is a luxury good). It would be wise for Collier County to engage and partner with for-profit developers Homeless and Affordable Housing Segmentation • As it relates to those different segments, there are a lot of comorbidity or multiple issues which affect people’s ability to afford housing. o Homeless/affordability challenged segmentation § Mental health issues – treatment required, not a housing or economic issue, per se. In the 2020 PIT count there were 127 individuals with mental illness, which represents 31% of the Adult homeless population11 § Substance abuse – treatment required, not a housing or economic issue, per se. In the 2020 PIT count there were 155 individuals with a substance use disorder, which represents 38% of the Adult homeless population.12 § The balance of the homeless (excluding vets, youth and victims of domestic abuse) are about 127 individuals. I would classify them as 11 This is based upon the Homeless Needs Inventory and Gap Analysis Table, Data Sources 1 from HOMEARP Allocation. This data excludes vets, youth and victims of domestic abuse. 12 ibid. 16.D.3.a Packet Pg. 1176 Attachment: HOME ARP Allocation Plan Collier County Revision #1 (29338 : HOME-ARP First Revision to the Allocation Plan) 8 underemployed or underpaid – for this segment, programs should focus on training and self sufficiency o Seniors on a fixed income who have no employment nor ability to secure employment o Civil servants/Heroes (EMS, Fireman, Deputy Sheriffs, Hospital personnel, etc.) who are gainfully employed o Workers for private employers who are presumably underpaid or not paid enough and therefore qualify for affordable housing based upon their income levels. ******* Other comments; COVID I think it is time to stop attributing problems in our economy or in our population to COVID. Not only did the government spend unheralded sums of money to mitigate the economic impact of COVID, more importantly, the county is now at more than fully employment and there are too many jobs chasing too many employees. This dynamic has existed in Collier County for the past 1-2 years and I think it is implausible that someone that is both willing and capable cannot find suitable well-paying employment in today’s market. I’m not negating the massive toll that domestic abuse, substance abuse, or mental disorders exacts upon the affected; In this section, I’m trying to discuss the segment of the population that is not afflicted by these problems. Unlike most of the US, Collier County remained, for the most part, open during COVID. Our businesses were open, our stores were open and most importantly our schools were open. While I’m sure there are exceptions, for the most part, employees in Collier County should have remained relatively unscathed due to COVID. I think that using COVID as a reason for homelessness (again exdclusive absue, disorder, youth, etc.) or loss of housing (today) is a specious argument. 16.D.3.a Packet Pg. 1177 Attachment: HOME ARP Allocation Plan Collier County Revision #1 (29338 : HOME-ARP First Revision to the Allocation Plan) Collier County, FL HOME-American Rescue Plan Allocation Plan Community and Human Services Division 3339 East Tamiami Trail Health and Public Services Building H, Room 213 Naples, Florida 34112 Office: (239) 252-4228: Website: https://www.colliercountyfl.gov/government/public - services/divisions/community-and-human-services-division 16.D.3.b Packet Pg. 1178 Attachment: HOME ARP Allocation Plan Collier County Original submission (29338 : HOME-ARP First Revision to the Allocation Plan) 2 Table of Contents Introduction .......................................................................................................................... 3 Consultation .......................................................................................................................... 3 Public Participation.............................................................................................................. 10 Needs Assessment and Gaps Analysis................................................................................... 11 HOME-ARP Activities ........................................................................................................... 18 HOME-ARP Production Housing Goals .................................................................................. 19 Preferences ......................................................................................................................... 20 HOME-ARP Refinancing Guidelines ...................................................................................... 20 HOME-ARP Supporting Documentation ................................................................................ 21 16.D.3.b Packet Pg. 1179 Attachment: HOME ARP Allocation Plan Collier County Original submission (29338 : HOME-ARP First Revision to the Allocation Plan) 3 HOME-ARP Allocation Plan Participating Jurisdiction: Collier County, Florida Date: 2/14/2023 Introduction In September 2021, the U.S. Department of Housing and Urban Development (HUD) announced the allocation of $2,729,078 to Collier County, Florida for a new grant called the HOME Investment Partnerships Grant American Rescue Plan (HOME-ARP). The purpose of HOME-ARP funds is to provide homelessness assistance and supportive services through several eligible activities. Eligible activities include acquisition and development of non-congregate shelter, tenant based rental assistance, supportive services, HOME-ARP rental housing development, administration and planning, and nonprofit operating and capacity building assistance. HOME-ARP funds must primarily assist people in HOME-ARP "qualifying populations” (QPs), which include: ▪ Sheltered and unsheltered homeless populations ▪ Those currently housed populations at risk of homelessness ▪ Those fleeing or attempting to flee domestic violence or human trafficking ▪ Other families requiring services or housing assistance or to prevent homelessness and t hose at greatest risk of housing instability or in unstable housing situations To receive funding, the County must develop a HOME-ARP Allocation Plan which describes the distribution of HOME-ARP funds and identifies any preferences for eligible activities. This Plan will be submitted and approved by HUD. The development of the HOME-ARP Allocation Plan must also be informed through stakeholder consultation and public engagement. The following is the County’s HOME-ARP Allocation Plan. Consultation Summarize the consultation process: Collier County’s consultation process primarily consisted of the dissemination and feedback received via an online survey and one-on-one discussions. The online stakeholder survey was developed and disseminated in order to capture broad assessments of the community needs and areas for ARP allocation, as well as capturing stakeholders’ direct observational insights and assessments of the unmet needs of QPs. The online survey was open from June 20, 2022 through August 15, 2022. The survey included seven ARP program-specific questions and one open-ended comment for community needs assessment. The survey received 14 respondents, including those representing homeless services providers, Fair Housing agencies, affordable housing developers, 16.D.3.b Packet Pg. 1180 Attachment: HOME ARP Allocation Plan Collier County Original submission (29338 : HOME-ARP First Revision to the Allocation Plan) 4 domestic violence advocacy groups, and others. The Continuum of Care (CoC) and three other homeless service providers were consulted with via direct interviews. List the organizations consulted, and summarize the feedback received from these entities. Agency/Org Consulted Type of Agency/Org Method of Consultation Feedback Hunger & Homeless Coalition of Collier County CoC Lead Interview Rental housing development would be the best use of HOME-ARP funds. There is no affordable rental inventory, and the County is not currently addressing the issue. There are several hotel properties that would be good options for conversion to rental housing. The County is also in need of low barrier shelter, specifically for chronically homeless and disabled individuals. St Matthews has a great program, but it does not meet the needs of this population. The County does not have a true low-barrier, Housing First emergency shelter. More accessible mental health services are needed. The County has a great mental health provider, but individuals experiencing homelessness do not have access to services. The county needs a walk-in mental health clinic. The Tenant Based Rental Assistance (TBRA) program that currently exists with HOME funds does not provide assistance to homeless households quickly enough. The Section 8 waitlist currently is seven years long and the Housing Authority isn’t expanding. Collier County Housing Authority Housing Authority Survey The County has a lack of affordable housing and high rental rates and needs to increase inventory of housing units for low-income populations. Acquisition and rehab are the best uses of HOME-ARP funds for rental housing development. David Lawrence Centers for Behavioral Health Continuum of Care Staff/ Member, Homeless Service Provider, Organization Serving People with Disabilities, Veterans' Group, Survey The biggest gaps are low barrier homeless shelters and affordable housing for all. We also need more outreach and prevention services, mental health and addiction services and supports, supportive transitional and permanent housing apartments, group homes, housing for Veterans and seniors, etc. Collier needs more supportive housing, meaning we need affordable housing stock increased WITH supportive services to assist those in the housing to be successful (in the way of case 16.D.3.b Packet Pg. 1181 Attachment: HOME ARP Allocation Plan Collier County Original submission (29338 : HOME-ARP First Revision to the Allocation Plan) 5 Behavioral Health Service Provider management, mental health counseling, addiction counseling, etc.). Needs of those struggling with mental health and addiction challenges who are homeless or at risk of homelessness has been further exacerbated by the psychological toll of the pandemic. Cost of rentals are not affordable, and many residents are leaving the area. Plans for these funds need to be coordinated with and alighted with the strategic goals of the local Continuum of Care and other workgroups/focus groups that have been working to address this issue. Collier County - Bayshore/Gateway Triangle - Naples, FL Local Government Agency; Fair Housing Survey Shelters and housing inventory are not complete. There is a need to form a subcommittee to keep a better track of the inventory as well as working with NABOR to provide accurate information with a software system to add or remove properties. Homeless prevention by education and programs to assist with self-sufficiency classes and monthly budgeting classes being offered with some sort of computer training for work Is needed. Without the assistance to teach how to look for jobs and be self-reliant people do not know how to be motivated to search and do the work. Ensuring the population in need, work for the services will bring up their confidence, making them self-accountable and reliable. Providing them with the tools to be self- sufficient through education will help get them the help they need. St Matthews House Homeless Service Provider Interview Collier County has been experiencing an affordable housing crisis since Hurricane Irma in 2017. Rents have been increasing and new rental developments are not affordable to the qualifying populations. A growing subset of the homeless population is persons with disabilities and seniors. Often [Assisted Living Facility] ALF beds are not available for these individuals, and they are not the right fit for the shelter programs. Housing specifically for persons with mental health disorders is also a high need. Affordable rental housing development would be the best use of funds for the County. Conversion of nonresidential building to housing seems like it would be the most efficient, but there is a lack of buildings to convert. The areas where affordable housing development has 16.D.3.b Packet Pg. 1182 Attachment: HOME ARP Allocation Plan Collier County Original submission (29338 : HOME-ARP First Revision to the Allocation Plan) 6 been discussed in the past are not close to supportive services and transportation would become an issue. Immokalee Fair Housing Alliance, Inc Low-income Affordable Housing Survey The County needs to provide grants and loans for development of low-income rental housing for families with children born in US even if their parents are not citizens or legal residents. Affordable housing is the missing link to help low-income families escape from exploitation and poverty. 20th Judicial Circuit Legal; Civil Rights Survey We need A LOT of affordable and safe rental units. There are a lot of jobs and opportunities here, but they don't pay enough for people to take those jobs and live locally. I think we should convert commercial property to higher density housing and/or mixed use, so that affordable units could be closer to the jobs and public transportation hubs. We need to utilize some of the struggling strip-mall locations to revitalize them as mixed use, affordable housing, which could include non-congregate shelter housing. It has pained me to see rental assistance come through, only to have landlords evict or non- renew a month or two later. I'm grateful for funds that buy the tenant a bit of time, but it's ultimately wasted money, as there is no return on investment beyond that immediate month. The tenant will still be displaced and has no longer-term solution for having enjoyed the benefit of that rental assistance. We have to use band-aids to stop bleeding, but it's frustrating that there's no lasting benefit from that aid. Nothing is improved by it. Home Base Florida Veteran and Family Care Veteran’s Group Survey Non-profits often provide agility, flexibility and subject matter expertise to respond to issues like these in ways government often can't. Increasing support through public-private partnerships with reporting requirements and grant applications that aren't administratively burdensome are the key to making impactful, long-term impacts within our community. I believe that organizations like Wounded Warriors of Collier County, St Matthews and David Lawrence deserve the lion’s share of the HOME-ARP funds as they are the community leaders making the difference in the lives of 16.D.3.b Packet Pg. 1183 Attachment: HOME ARP Allocation Plan Collier County Original submission (29338 : HOME-ARP First Revision to the Allocation Plan) 7 individuals every day. Their ability to address homelessness is largely driven by financial resources or lack of. Government housing is something no government in the world. Subjective Units of Distress Scale (SUDs) and Mental Health go hand in hand with homelessness. Improving access to quality behavioral health should be integral to addressing homelessness. Community Assisted & Supported Living Homeless Service Provider, Organization Serving People with Disabilities Interview Rental housing development is the largest need. Affordable housing stock is the main problem. Our new developments are filled with 100 households in less than 50 days and quickly reach a 2-4 year waiting list. Non-congregate shelter is needed, but shelter is only temporary and finding permanent affordable housing is still an issue. TBRA is not beneficial because tenants are having issues finding units to rent. Supportive services such as mental health treatment, substance abuse treatment, and medical services are also needed, but these services cannot be successful if the person does not have stable housing. Permanent supportive housing and the housing first model are successful. New construction of housing is a better use of funds as opposed to rehab, because it is more sustainable, and the building will last longer. Deals are more difficult now than ever due to rising costs. HOME-ARP should be leveraged with other funding sources, such as SHIP. Collier County Sheriff’s Office Mental Health and Substance Use Survey The biggest gap is inadequate amount of affordable (less than $2000/month) rental houses and apartments. Rental properties that will accept vouchers, etc. for housing are nearly nonexistent. The county needs to support the construction of affordable housing through policy development, and push builders to comply. Collier's supportive services don't have an adequate inventory of affordable housing opportunities to refer clients to. Collier needs more non-congregate housing particularly for Veterans. Habitat for Humanity of Collier County Fair Housing Organization Survey Inventory of affordable homes for purchase (primary method of stabilizing workforce), and inventory of affordable rental units (with long 16.D.3.b Packet Pg. 1184 Attachment: HOME ARP Allocation Plan Collier County Original submission (29338 : HOME-ARP First Revision to the Allocation Plan) 8 term affordability periods). Affordable rental housing development is the most significant area of need. HOME funds should be deployed to purchase land and assist in construction costs to ensure affordability in this high cost market. ABLE Academy Organization Serving People with Disabilities Survey The cost of housing, medical services, and therapy services keep rising in our area. Wages for many of the families we serve do not. Our families are in a really hard spot. Especially coming off of COVID, where many families lost income. Collier County Probation Misdemeanor Supervision Survey I see a lack of affordable housing for workers. In an attempt to elevate our community's status, we have ignored housing needs of our vital service workforce, much to our detriment. Acquisition/construction/rehab of affordable properties will enhance community while reducing traffic of would-be commuters. Collier County Child Advocacy Council, Inc. Victims of Child Abuse, Sexual Abuse Survey There’s not enough shelter or affordable housing inventory. Need to develop more affordable housing, and rental units. Also need more case management, specific to helping individuals obtaining housing, help with budgeting, and childcare. The Shelter for Abused Women & Children Domestic Violence Service Provider / Homeless Service Provider Survey Emergency Shelter for survivors is addressed in this community by The Shelter. Funding for additional transitional housing units and funding to maintain those units are needed. Permanent housing units are needed for survivors when they exit emergency shelter or graduate from The Shelter's Transitional Housing Program . Funds are needed for the staff that address the immediate needs of survivors via emergency shelters. These staff members could help survivors attain housing. Additionally, funding to help support the operations of The Shelter's safe havens would be a useful way to address the needs of survivors in Collier County. More affordable rental housing units are needed, and these units need to be designated for victims of domestic violence and human trafficking. Funding could be used for acquiring units. County Emergency Management Disaster- All- hazards concerns Survey Unmet need: Absence of sufficient homeless day-shelter resources for health, hygiene, counseling and severe weather refuge. High priority should be given to homeless families or 16.D.3.b Packet Pg. 1185 Attachment: HOME ARP Allocation Plan Collier County Original submission (29338 : HOME-ARP First Revision to the Allocation Plan) 9 those with fragile health conditions. Look at the "tiny-house" as a possible resource where these micro-home parks- have been successfully operated. Wounded Warriors of Collier County, Inc Veterans' Group / Homeless Service Provider Survey Gaps: 1. Low Demand housing - Homeless that St Matthews will not house. 2. Funds available for immediate emergency housing 3. No HUD/VASH vouchers in Collier County 4. Lack of priority by Collier County to provide housing for homeless. Temporary shelters. TBRA: Make funding available to agencies & charities who have direct contact with the individual. Use agencies in Collier County - not Lee and SWFL organizations. For affordable housing, Rehabilitation & acquisition - building takes to long. Cut the red tape with zoning and permitting. Waive fees and processing time. Many seniors are not equipped and experience to use PC and the internet for information and filling out applications. Many are in need for wrap around services. Housing is just the 1st step. 90% of homeless have some level of mental health issues. Some don't won't housing but need services that can be provided by low demand housing, i.e, one or two nights. Youth Haven Homeless Service Provider Interview Youth Haven has a teen transitional housing program, Rob’s Cottage, for youth aged 16-20. There is a lack of affordable housing for youth to transition to when they age out of the program. It can take six months for them to find housing. Many youth are in need of rental assistance as they transition, but they do not qualify for many of the federal rental assistance programs. The need for mental health services is growing, especially with youth. Families can not find access to timely mental health care. There are many job openings in the city, but people can not afford to live in the communities where they work. Geographically accessible affordable housing is needed. The HOME-ARP allocation is not a lot of money to work with, but all eligible activities are needed. As long as the funding is spent quickly, any use will benefit the County. 16.D.3.b Packet Pg. 1186 Attachment: HOME ARP Allocation Plan Collier County Original submission (29338 : HOME-ARP First Revision to the Allocation Plan) 10 Public Participation Describe the public participation process, including information about and the dates of the public comment period and public hearing(s) held during the development of the plan: • Notice of 1st public hearing published in Naples Daily News on 07/21/2022 • Public hearing: 8/8/2022 • Notice of public hearing published in Naples Daily News on 01/26/2023 • Public comment period: start date 1/26/2023 end date 02/10/2023 • Public hearing: 2/9/2023 Describe any efforts to broaden public participation: The 2023 Substantial Amendment to the PY2021 Action Plan recognizing new HOME-ARP funding was publicly noticed for a 30-day public comment period in accordance with the Collier County’s Citizen Participation Plan and with HUD regulations. The HOME-ARP Substantial Amendment was advertised in the Naples Daily News on July 21, 2022 and January 26, 2023. The public comment period ran from January 26, 2023 through February 10, 2023. An initial public hearing was held on August 8, 2022 during the planning phase of the Allocation Plan. A second public hearing was held on February 9, 2023 at 9 AM to review the draft Substantial Amendment to the 2021 Annual Action Plan. One public comment was received during the advertising period. In addition to the public notice and public comment period, Collier County requested key stakeholders in the community to participate in the online survey and/or direct interviews. Key stakeholders included representatives of social service organizations, homeless services providers, neighborhood associations, the CoC, the Housing Authority and other nonprofit organizations. Collier County also posted the public notice and draft HOME-ARP Allocation Plan to the County’s website and published a notice of public hearing in the Naples Daily News. Summarize the comments & recommendations received through the public participation process: Collier County received one written submission containing three comments during the public comment period for the amendment of the Action Plan to receive HOME-ARP. No public comments were made during the public hearing. The submitted written comments recommended imposing a residency requirement of two years in order to receive assistance from the HOME-ARP program, working through private developers for the construction or management of housing, and segmentation and targeting of the homeless population. Summarize any comments or recommendations not accepted and state the reasons why: The HOME-ARP funding is intended to support the provision of affordable housin g for qualified populations which already meet significant impediments to housing. Imposing additional restrictions will increase barriers to housing and the County will not explore such residency requirements. The County acknowledges that individuals experiencing homelessness have different needs both from a housing and support service perspective. However, while some activities, such as job training, may be eligible under McKinney -Vento, the support of the development of affordable housing has consistently been identified as a priority need in Collier County. 16.D.3.b Packet Pg. 1187 Attachment: HOME ARP Allocation Plan Collier County Original submission (29338 : HOME-ARP First Revision to the Allocation Plan) 11 Needs Assessment and Gaps Analysis Describe the size and demographic composition of qualifying populations within the PJ’s boundaries: Homeless as defined in 24 CFR 91.5 The CoC releases an annual Point-in-Time (PIT) Count that includes valuable data for addressing the needs of residents who are experiencing homelessness. The 2020 Naples/ Collier County CoC PIT count data was used to capture the most recent and relevant ho meless population data due to alterations in methodology during the 2021 count to mitigate the effects of the COVID -19 pandemic. According to the 2020 PIT count, White/ Caucasian residents are the largest demographic of people experiencing homelessness. Just over 78% of people experiencing homelessness are White/ Caucasian, 14% are Black or African American, and the remainder are American Indian or Alaskan Native, Asian, or multi-racial. 30% percent of overall homeless are Hispanic/ Latino. 62% of homeless individuals identify as Male. 78% are over the age of 24 and 21% being under the age of 18, mostly in households with other adults. About 13% were reported as chronically homeless. 127 individuals reported having a mental illness, 155 reported having a s ubstance use disorder, 27 are veterans, 10 are unaccompanied youth, and 95 are victims of domestic violence. Homeless Needs Inventory and Gap Analysis Table Homeless Current Inventory Homeless Population Gap Analysis Family Adults Only Vets Family HH (at least 1 child) Adult HH (w/o child) Vets Victims of DV Family Adults Only # of Beds # of Units # of Beds # of Units # of Beds # of Beds # of Units # of Beds # of Units Emergency Shelter 92 28 140 140 0 Transitional Housing 54 20 144 144 6 Sheltered Homeless 52 270 2 76 Unsheltered Homeless 7 142 25 19 Current Gap +87 -11 -131 -131 Data Sources: 1. Point in Time Count (PIT); 2. Continuum of Care Housing Inventory Count (HIC); 3. Consultation Populations At-risk of Homelessness as defined in 24 CFR 91.5 HUD defines those at risk of homelessness as individuals and families who have an income at or below 30% of the area median income (AMI), do not have sufficient resources or support networks to prevent them from becoming homeless, or live with instability. Using HUD's 2014 - 16.D.3.b Packet Pg. 1188 Attachment: HOME ARP Allocation Plan Collier County Original submission (29338 : HOME-ARP First Revision to the Allocation Plan) 12 2018 Comprehensive Housing Affordability Strategy (CHAS) data, the county has 12,075 households with incomes at or below 30% AMI, (over 8% of all County households). Forty-eight percent of these households are renter households. Households at-risk of homelessness include an estimated 21,785 households who are extremely cost burdened, paying over 50% of their income toward housing and 23,315 who are cost burdened (above 30%, less than 50%). An estimated 15,380 LMI (<=80% AMI) renters are cost burdened at the 30% mark, approximately 11% of total households in the County. The County’s demographic makeup is primarily 84.5% White/ Caucasian and 28% Hispanic or Latino (American Community Survey (ACS) 2016-2020). According to ACS data 20,184 renters in the County were cost burdened between 2016 -2020. Of those renters, 27.7% were over the age of 65. Additionally, according to ACS data, 27.67% (5,585 households) of cost burdened renters earned less than $20,000 betwe en 2016-2020, while only approximately 2,366 rental units offer a gross rent price within the needed range to prevent being cost burden. In other words, there is a lack of about 3,219 affordable rental units for households making under $20,000 a year. Fleeing, or Attempting to Flee, Domestic Violence, Dating Violence, Sexual Assault, Stalking, or Human Trafficking, as defined by HUD in the Notice According to the National Coalition Against Domestic Violence 37.9% of women and 29.3% of men in Florida experience intimate partner physical violence, intimate partner sexual violence and/or intimate partner stalking in their lifetimes. Statistics from the Florida Department of Law Enforcement document that there was a total of 1,686 domestic violence offenses with 668 arrests in Collier County during 2019.There is no data available regarding size and demographics of victims of human trafficking. The State of Florida reported 738 human trafficking cases in 2020. Other populations requiring services or housing a ssistance to prevent homelessness and other populations at greatest risk of housing instability, as defined by HUD in the Notice There is a large overlap between those at-risk of homelessness (above data) and households in need of assistance to prevent homelessness or at greatest risk of housing instability. Lack of affordability is the primary issue highlighted in data and consultation. Of the extremely cost burdened, 4,160 are renting households who are also in the extremely low-income range (<=30%) and are considered at greatest risk of housing instability. While there is insufficient data sources that match the exact definition of QP #4, we can glean general demographics and need from looking at the County’s poverty levels. Poverty is often a direct correlation as it relates to households requiring housing assistance to prevent homelessness or to those being at-risk of housing instability. According to ACS, there are 41,222 (11% of County) residents below the poverty level, of which 26% are under 18 year s old and 48.8% of those in poverty are above the age of 60. Of those living under the poverty level, an estimated 32,823 are White, 3,701 are Black or African American, 231 are Asian, 19,059 are Latino, and 2,438 are mixed race. There are more females (21,459) under the poverty level than males (19,763). 16.D.3.b Packet Pg. 1189 Attachment: HOME ARP Allocation Plan Collier County Original submission (29338 : HOME-ARP First Revision to the Allocation Plan) 13 Describe the unmet housing and service needs of qualifying populations : Homeless as defined in 24 CFR 91.5 The primary unmet need is the availability of units for residents experiencing homelessness. In particular, there is a need for approximately 130 beds for people who do not have children. Further, there is a shortage of homeless shelter units for families. During our consultation, many respondents highlighted the need for additional affordable housing within the County. As well as the need for supportive services. Stakeholders highlighted the following unmet service needs for the homeless population: case management, housing counseling, mental health services, supportive housing, and additional outreach services. It was also noted that there is an absence of sufficient homeless day-shelter resources for health, hygiene, counseling and severe weather refuge. Of note, many of the stakeholders highlighted a growing senior and disabled homeless population and no shelter that meets their needs, access to mental health services is a huge issue. Populations At-risk of Homelessness as defined in 24 CFR 91.5 The unmet needs for the populations at risk of homelessness include sufficient stock of available, affordable rental units and resources for rental or utility deposit assistance. Ultimately, there is a lack of inventory of affordable homes for purchase (primary method of stabilizing workforce), inventory of affordable rental units (with long term affordability periods). More development of affordable rental housing units would help ease the financial burden faced by many . More affordable, supportive transitional and permanent housing apartments, group homes, housing for Veterans and seniors, etc. would benefit the County. Housing counseling, mental health services, and legal aid/ landlord mediation for eviction proceedings were highlighted during our consultation as service needs for the at -risk of homelessness and greatest risk of housing insecurity. Further, ACS estimates 54% of the County’s renters are costs burdened (paying over 30% of income to housing costs). This amounts to a little over 20,637 households who are cost burdened. Lack of affordable housing inventory and a persistent affordability gap challenge both populations recovering from homelessness and those households at risk of homelessness or housing instability. Those at-risk of homeless or housing instability often need short -term subsidies such as mortgage/rent assistance to avoid foreclosure or eviction, as well as utility assistance to avoid shutoff or security deposits to allow new rental contracts. Supportive services such as housing or financial counseling, landlord mediation for eviction proceedings will also benefit these groups. Fleeing, or Attempting to Flee, Domestic Violence, Dating Violence, Sexual Assault, Stalking, or Human Trafficking, as defined by HUD in the Notice According to the 2022 Domestic Violence Counts Report for Florida conducted by the National Network to End Domestic Violence victims of domestic violence made 31 requests for shelter, housing, and other supportive services that providers could not provide. With approximately 90% of these unmet requests being for housing and emergency shelter. There is one organization in Collier County that provides emergency shelter and supportive services to victims of domestic and sexual violence and human trafficking, there are not enough beds available to meet the 16.D.3.b Packet Pg. 1190 Attachment: HOME ARP Allocation Plan Collier County Original submission (29338 : HOME-ARP First Revision to the Allocation Plan) 14 needs of victims in the area. Funding for additional transitional housing units and funding to maintain those units are needed. Permanent housing units are needed for survivors when they exit emergency shelter or graduate from The Shelter's Transitional Housing Program . Other populations requiring services or housing assistance to prevent homelessness and other populations at greatest risk of housing instability, as defined by HUD in the Notice The unmet needs for the populations needing assistance to prevent homelessness or at risk of greater housing instability mirror those from above, including rental payment assistance or utility deposit assistance and development of affordable rental housing units. Housing counseling, mental health services, and homeless prevention were highlighted during our consultation as service needs for those at greatest risk of housing insecurity. Healthcare assistance greatly benefits those at-risk of housing instability who are also disabled or elderly. Identify and consider the current resources available to assist qualifying populations, including congregate and non-congregate shelter units, supportive services, TBRA, and affordable and permanent supportive rental housing: There are multiple organizations providing services in Collier County, such as homeless assistance providers, victim service providers, nonprofit organizations, public housing agencies, mental health agencies and government-based organizations. Many social service agencies in Collier County provide benefits to homeless individuals and families to address homelessness. These organizations provide many services to their clientele, including but not limited to counseling, case management, life skills training, financial literacy classes, and victim advocacy, all of which help residents to develop the skills and knowledge to transition into permanent housing or independent living and to maintain steady employment. The goal of providing supportive services is self-sufficiency. The Collier County Housing Authority (CCHA) has been committed to providing safe, decent, and affordable housing to low-income residents in Collier County since 1966. The CCHA administers a number of programs, such as the Farm Worker Housing, the Housing Choice Voucher Program, and the Family Self-Sufficiency Program, to promote self -sufficiency and economic opportunity for local residents. These programs are income based and the eligibility requirements are set by HUD. The CCHA owns and manages four public housing developments: 276 units of low -income housing in Farm Worker Village, 315 units of farm labor housing also in Farm Worker Village, 30 units of farm labor housing known as Collier Village, and a 192-bed dormitory known as Horizon Village. In addition, CCHA serves an over 3,100 persons through the administration of the Section 8 rental assistance program and Family Self Sufficiency Program to provide s upport services to low, elderly, disabled, and homeless persons living in Collier County. Collier County partners with the Hunger & Homeless Coalition of Collier County to address the needs individuals and families experiencing homelessness or at risk of homelessness. The Hunger & Homeless Coalition of Collier County is a working group whose mission is to “support the planning, delivery and coordination of high-quality services to the hungry, homeless, and those at risk of homelessness in our community.” The group also works to provide programs and 16.D.3.b Packet Pg. 1191 Attachment: HOME ARP Allocation Plan Collier County Original submission (29338 : HOME-ARP First Revision to the Allocation Plan) 15 services related to housing, mental and physical health, nutrition, clothing, and education. According to the 2021 Housing Inventory Count, the Coalition has 91 Rapid Re -Housing beds. The Shelter for Abused Women and Children in Naples is the only domestic violence center in Naples. Additionally, the organization is Collier County’s official service provider for human trafficking victims, as ratified by Collier County Commissioners and Collier County Sheriff’s O ffice in 2016. Its services include emergency shelter (where stays average 29 days) and a transitional housing program (where residents can live for up to 2 years). The organization currently has two emergency shelters. The Beau Venturi Home, located in Naples, is a 60-bed emergency shelter serving victims of domestic violence. The Shelley Stayer Shelter, also a 60-bed emergency shelter, was built in 2020 in Immokalee to serve victims of domestic violence and human trafficking. Other services include a confidential hotline, safety planning, counseling and support groups in English and Spanish, court advocacy and assistance with daily needs such as food, clothing, toiletries, and household items. St. Matthew’s House operates several facilities in Collier County, including emergency and transitional housing in Naples, an emergency shelter in Immokalee (Immokalee Friendship House), and transitional supportive apartments for persons with substance abuse or mental health needs. Other services include a food pantry, thrift store, counseling and case management, and access to referrals for medical, mental health, and substance abuse needs through partnerships with other organizations in Collier County. Youth Haven is a 24-hour residential shelter for children removed from their homes due to abuse, neglect, or abandonment. In addition to a 23-bed emergency shelter, Youth Haven offers a child and family counseling center, in-home parenting classes, case management, and a teen drop-in center with showers, laundry facilities, and meals. Typical length of stays range from 45 to 60 days until children are placed in foster care or with a relative. Providence House provides a faith-based, transitional housing and self-sufficiency program for motivated women with young children who are homeless or at risk of being homeless. These women lack the long-term support necessary to acquire the assets foundational to reestablishing their families. The two-year accountability program not only encourages the development of self - efficacy, but it also provides women and their children with resources that they need to become independent. Providence House also offers case managemen t, life skills training, and counseling referrals. Wounded Warriors assists with the needs of Veterans and their families, with the focus on education, housing, and mental health. Wounded Warriors of Collier County is dedicated to ending Veteran homelessness in Collier County by employing various housing models. Its Alpha House is a transitional living facility for Veterans struggling with mental health and/or substance abuse issues. Additionally, it operates the Bravo House, a long-term supportive housing program. It is a three-bedroom home serving Veterans with fixed incomes. 16.D.3.b Packet Pg. 1192 Attachment: HOME ARP Allocation Plan Collier County Original submission (29338 : HOME-ARP First Revision to the Allocation Plan) 16 The Jewish Family & Children Services (JFCS) provides services to Veterans and their families through a client-centric approach. JFCS provides care for Veterans to maintain self-sufficiency and facilitates solutions to living a healthy lifestyle with a support system. Through the Operation Military Assistance Program (OMAP), Veterans are able to gain the assistance needed to obtain or maintain permanent housing, removing the barriers to living a stable, comfortable, and more satisfying life. According to the 2021 Housing Inventory Count, JFCS has 19 SSVF Rapid Re-Housing beds dedicated to Veteran families. Collier County will continue to increase its efforts to implement anti-poverty strategies for the citizens of Collier. The County will strive to increase its efforts in assisting homeowners and renters with housing rehabilitation and renovation of affordable housing to decrease the financial burden on low-to-moderate-income persons. Collier County will actively work to address the need for more decent and affordable housing by continuing to prioritize the investment of funds into all its housing programs. In the interest of preserving affordable housing, the County will continue to support the use of HOME program funds for activities such as: down- payment assistance, land acquisition, TBRA, and single/multifamily acquisitions and rehabilitation. Additionally, the County will continue to utilize CDBG program funds to rehabilitate owner-occupied homes. Identify any gaps within the current shelter and housing inventory as well as the service delivery system: As noted above, the primary gap in the shelter and housing inventory is the availability of beds for households without children. There are only approximately 314 beds available and nearly 412 residents who occupy or need a bed. Additionally, on the 2021 Housing Inventory Chart, there are 64 permanent supportive housing beds for households without children and 0 permanent supportive housing beds for families with children. The availability of housing units does not meet the needs of the qualifying population. There is a need for quality affordable housing units of multiple sizes in neighborhoods throughout the County. The renter vacancy rate in 2019 was 7.14% with those rates estimated to be much lower since the pandemic. Low-income renters are at the greatest risk of being unable to find affordable units, particularly extremely low-income households. There is also a gap in emergency shelter and permanent housing assistance for individuals and families that are fleeing domestic violence. The County has emergency shelter beds that remain fully occupied with no permanent housing beds (permanent supportive housing, other permanent housing, rapid rehousing) dedicated to the population. Identify the characteristics of housing associated with instability and an increased risk of homelessness if the PJ will include such conditions in its definition of “other populations” as established in the HOME-ARP Notice: Collier County recognizes the definition of Other Populations set forth by HUD in the CPD Notice (Families Requiring Services or Housing Assistance to Prevent Homelessness or At Greatest Risk of Housing Instability). The criteria related to these categories include househo lds/persons who 16.D.3.b Packet Pg. 1193 Attachment: HOME ARP Allocation Plan Collier County Original submission (29338 : HOME-ARP First Revision to the Allocation Plan) 17 are (1) extremely low-income with a severe cost burden, or households with (2) an annual income that is less than or equal to 50% of the area median income meet one of the following conditions from paragraph (iii) of the “At risk of homelessness” definition established at 24 CFR 91.5. No further characteristics of housing instability have been defined in the C ounty’s Consolidated Plan; thus the County will use the criteria listed in first six conditions listed in the “At risk of homelessness” definition established at 24 CFR 91.5 Identify priority needs for qualifying populations: The analysis above and consultation with key stakeholders have identified the following priority needs: 1. Development of Affordable Rental Housing 2. Rental assistance 3. Supportive Services (McKinney-Vento Supportive Services, Housing Counseling Services) Explain how the level of need and gaps in its shelter and housing inventory and service delivery systems based on the data presented in the plan were determined: To determine the level of need and gaps Collier County looked at both qualitative and quantitative measures. Data from the US Census, CHAS, 2020 CoC Point in Time Count, and 2020 Housing Inventory Count were used in partnership with feedback and on-the-ground insights from key stakeholders in the area. The takeaways from data analysis and stakeholder input were incorporated into the needs assessment. 16.D.3.b Packet Pg. 1194 Attachment: HOME ARP Allocation Plan Collier County Original submission (29338 : HOME-ARP First Revision to the Allocation Plan) 18 HOME-ARP Activities Describe the method for soliciting applications for funding and/or selecting developers, service providers, subrecipients and/or contractors and whether the PJ will administer eligible activities directly: The County expects to administer programs directly. Once the County has received the full HOME-ARP grant award from HUD, the County will conduct a Request for Proposals for a specified period of time to make it a more competitive process in awarding these funds. During that time any organization, developer, subrecipient, or Community Housing Development Organization (CHDO) is eligible to apply. At the close of the application period, all applications received will be reviewed for completeness, eligibility, and their ability to deliver on the priority needs identified within this plan. Each applicant will also be reviewed for their abil ity to carry out the project meeting all eligibility criteria. Award(s) will be made based on the applicant’s project scope as it pertains to the outlined priority needs in this plan as well as the applicant’s familiarity with utilizing federal funding an d ability to comply with all federal and local requirements. If any portion of the PJ’s HOME-ARP administrative funds were provided to a subrecipient or contractor prior to HUD’s acceptance of the HOME-ARP Allocation Plan because the subrecipient or contractor is responsible for the administration of the PJ’s entire HOME-ARP grant, identify the subrecipient or contractor and describe its role and responsibilities in administering all of the PJ’s HOME-ARP program: The County will administer the program. The County has not yet expended any of the HOME-ARP administrative funds. Use of HOME-ARP Funding Funding Amount Percent of the Grant Statutory Limit Supportive Services $0 Acquisition and Development of Non- Congregate Shelters $0 Tenant Based Rental Assistance (TBRA) $0 Development of Affordable Rental Housing $2,319,717 Non-Profit Operating $0 0% 5% Non-Profit Capacity Building $0 0% 5% Administration and Planning $409,361 15 % 15% Total HOME-ARP Allocation $ 2,729,078 Additional narrative, if applicable: Development of Affordable Rental Housing Collier County will allocate $2,319,717 (85%) of its allocation to the development of affordable rental housing. The County will seek to maximize use of funds by leveraging with other sources of funding as available. Please see further information on page 20 in the Housing Goals section. 16.D.3.b Packet Pg. 1195 Attachment: HOME ARP Allocation Plan Collier County Original submission (29338 : HOME-ARP First Revision to the Allocation Plan) 19 Administration Fifteen percent of the allocation is set aside for costs of overall HOME -ARP program management, coordination, monitoring, and evaluation. Expenditures may include salaries, wages, and related costs of the county’s staff and/or administrative service s performed under third party contracts or agreements. Describe how the characteristics of the shelter and housing inventory, service delivery system, and the needs identified in the gap analysis provided a rationale for the plan to fund eligible activities: After reviewing the gap analysis for shelter and affordable housing availability, as well as analyzing local capacity and other sources of funding as it relates to community needs, the County identified eligible activities that will assist individuals and families of the most vulnerable qualified populations. The gap analysis shows that there is a need to increase the supply of affordable housing as a means to increase availability of permanent supportive housing and provide opportunities for LMI households who are at-risk of homelessness or housing instability. Developing affordable rental housing was highlighted by stakeholders as the top priority and these efforts work as a more permanent solution to assist the QPs. Despite the need for rental assistance also being identified as a top County need, the County determined the one-time HOME-ARP allocation was best used as a long-term capital investment, hence, the bulk of funding going toward developing affordable rental housing. Further more, Supportive Services and TBRA programs can be more difficult to run, given the relative size of the grant and available operating or administration dollars to support potential subrecipients. HOME-ARP Production Housing Goals Estimate the number of affordable rental housing units for qualifying populations that the PJ will produce or support with its HOME-ARP allocation: Collier County is in the process of planning an affordable housing project that will produce an estimated 250 total units. The County estimates 100 of these units will be new affordable rental units that will be produced using HOME-ARP funds. Describe the specific affordable rental housing production goal that the PJ hopes to achieve and describe how it will address the PJ’s priority needs: The primary goal will be to help address the lack of affordable housing in the county and to assist as many QP households as possible with rental assistance and supportive services. By adding affordable rental units to the housing stock, Collier County aims for the HOME-ARP allocation to offer a long-term solution that contributes to the overall goal of reducing homelessness and housing instability for the most v ulnerable populations. 16.D.3.b Packet Pg. 1196 Attachment: HOME ARP Allocation Plan Collier County Original submission (29338 : HOME-ARP First Revision to the Allocation Plan) 20 Preferences Identify whether the PJ intends to give preference to one or more qualifying populations or a subpopulation within one or more qualifying populations for any eligible activity or project: • Preferences cannot violate any applicable fair housing, civil rights, and nondiscrimination requirements, including but not limited to those requirements listed in 24 CFR 5.105(a). • PJs are not required to describe specific projects to which the preferences will apply. Collier County will not provide preferences to any population or subpopulation HOME-ARP Refinancing Guidelines The County does not intend to use HOME-ARP funds to refinance existing debt secured by multifamily rental housing. 16.D.3.b Packet Pg. 1197 Attachment: HOME ARP Allocation Plan Collier County Original submission (29338 : HOME-ARP First Revision to the Allocation Plan) 21 HOME-ARP Supporting Documentation 16.D.3.b Packet Pg. 1198 Attachment: HOME ARP Allocation Plan Collier County Original submission (29338 : HOME-ARP First Revision to the Allocation Plan) Ner BxtluS{emx PARTOFTHE USA TODAY NETWORK Published Daily Naples, FL 34110 CC HOUSINGHUMAN VETE RAN SERV 3299 TAMIAMI TRL E STETOO NAPLES, FL 34112 Affidavit of Publication STATE OF WSCONSIN COUNTY OF BROWN Before the undersigned they serve as the authority, personally appeared said legal clerk who on oath says that he/she serves as Legal Clerk of the Naples Daily News, a daily newspaper published at Naples, in Collier County, Florida; distributed in Collier and Lee counties of Florida, that the attached copy of the advertising was published in said newspaper on dates listed. Affianl further says that the said Naples Daily News is a newspaper published at Naples, in said Collier County, Florida, and that the said newspaper has heretofore been continuously published in said Collier County, Florida; distributed in Collier and Lee counties of Flor:ida, each day and has been entered as second class mail matler at the post office in Naples, in said Collier Counly, Florida, for a period of one year nexl preceding the first publication of the attached copy of advertisement; and afllant further says that he has neither paid nor promised any person, or corporation any discount, rebate, commission or refund for the purpose of securing this advertisement for publication in said newspaper issue(s) dated or by publication on the newspaper's website, if authorized, on lssue(s) dated; 07 121 I 2022 Subscribed and sworn to before on July 21 ,2022: of Wl q commission expires Publication Cost: $1,456.00 Ad No: 0005342594 Cuslomer No: 1304214 PO #: f of Affidavilsl This is not an invoice NANICY H[YIiMANI f,la3t:ifi Public Stn'in oI Wist;onsin 16.D.3.b Packet Pg. 1199 Attachment: HOME ARP Allocation Plan Collier County Original submission (29338 : HOME-ARP First Revision to the Allocation Plan) PUBLIC I'lOTl(Er HOMt-AftP Allcxation flan Public Hearing Published on: ,luly 21, 201? nnd Hum$n $) il cJevelop- nnunl Ad,tion OurinS the devclopmeflt ol the HOME-ARF Allo,cation Plun, [ht' County intencls 1o empltusir* the frrllowtrq tang,r ol auivitie: to ,cduce hort€l€3r$e$i ond in(roala houring stcbillty: I l.lSMEASf Hestol HEUllng, {production or pteservaliort of a{- fordablp housing). Acqulsilion end Developnunt of Non-Congragatx Sheher Unit Arllslin(e can be rnnde lor pensont t'rith rlirabilities or requrr€- menls lor Spanirh rpe,rkiftg r€trdents upon requeet by calling {ollier CounE Hurnan Serul<i:r. 119.152.8S99. Topic; Tims: HOME-ARP Corn munity Vi nu?l Publi( H€aring August 0, 2022, 9:30 a.m. Easlern Time (U5 and frnada) .A n9 AVISO PI.]BLIIO: publica del Plsn de Asign;rcion HOlttE-ARP Publirado el: 2 I dr lulio del 1022 anrj lor funding, ol for $$9l3t6n(C vre!8r 727 70759?prrvd=5Xh m SXli\rXJ 3 eX 0759 870177 Ptrblish I tirrle \rlth Lrgal Noti(es on lhur5d.ly, July 21, Organizat'ions er firnrr re<king inlorm&lion. le(hni(al asslttan(e vrit'h lhs ipflli(at;on. or havin$ .rrry quettiont rllay (ontrct Tracey Smith aI lI9-?52.14)8 ot *mall al lra(ey,Jrtrith*(olli(r(s untyf{,qov. (ollicr (ounlf il an Equsl Opt)orl{rnil} [rnptsyl'1. {,:llier (or-rnV ronwlier with the Foir Hourinq A(r (4? u,5.c, 3600, et seq) ond '[ollirr (orrnty Iair l-lousirrq Ordlnance 92-9. [t*tei 3:01? Audiencia El D€partamento dp s€rviti,ls Comunitarioi y Humao(}i del nocd fo{ .uusl €n Psr- a,3l 16.D.3.b Packet Pg. 1200 Attachment: HOME ARP Allocation Plan Collier County Original submission (29338 : HOME-ARP First Revision to the Allocation Plan) <ondarjrr de Colllfi (CH5) zrtr dosarrollando una enmienda ,ujtan(isl a ru plor dc J((ldr )nual dcl .)iio filcsl ?O2! paro lrr<lrrir el uro de fondos rn lor siguiente! plogramas dtl Deplrt.rrnrnlo de Vivicnda y Dcsarrolio Urbnno'dc-tos ErtJdog Urtidos (U.5. Deponm€nt of Houllnq rnd Urbilri Drveloprhrnt. HUD). olthhrdos al ?0 (h iunio de 2022 paro COBG (3100.000), HOME (Sr,442,5S0), .sHrP (tr,880,472). E5G (52t.r08). y para ia*t,0?8,00 6torgod& en fantlot l{OME.ARP. {orno ie ha dicho, el rondado d$ col,iEr ha recjbldo $2.7J3.07Srn Iondor HOME-ARP. El condado Fuede lleusr a cabo determi- nadas actividader, entrs las que re incluyen: a) administretlvar y de planifitation, bl de slquiler de viviendar HOME-AftP, r) de eyuda El alquiler birrada en el inquilino. d) dH senritis: dr apoyo, y e) de adquirician y dB$rrrollo ds .llbprguet no.colerti- vo4. llursnt* el derarrollo del Pl.rn de Asignacion IIOME--ARF, el rondaclo pretentj+ hacar hincapid en l-: siguiente garna de tcti- vrdades para reducir la falta de vivienda y aumrmar la elrahilidad da Ia rnirma; err virtud dlr a?t}]g tlB de IO21 .Viviendas de alquiler HOME-ARP tprodu<cidn o conserva(ion de vi'riendas asequibles) rAdquisicidn y desarrollo de unidades de albergue no mlectiuar ion se endls al Plsn Collier. t9 tltl dc de dc I'lora: Publi(Jr una vr-rz con ovigos lcaolcs rl Jutyat julio 21, 702? COUAL IIOUSINC OPPONTUHIIY La audienci'r Priblica se celebrarn el hrne, I de agosto de 20?t. a lar 9;30 r1e ld nrafiarro tn la rdld Human Rerorrr(er Troinlnq Roon\ ubkn{ia en iJ03 Tornranri Traial E;rl (Humf,n Rerqurcei Brrllding 8) y a lrdv€i cle.Zoorn err el siguierRe enlace- Se aniln; f n(are(rda rn ente a p3 rtlfl r)rr. tt puede proportiofiar arirtenri<r s ld$ per$onas ton dirq6pad. dades o rYqrrititoi DBrts lqi residentes dt habh hilpan*, previa rolicitud. llanrando ol Del)drtorlrrrrtr) dF 9*rvieiol Humaniri del Condado,Je (ollier. 2j9-251-8999 Terra: Audienci,r pirbli(a v;r(u.rl de la conrunidad de HOME-ARP HorD; B de Agosto del 2022, 9:30 a.rn,, hora del este {E[, UU, y Canada) Urrine .r la reunir\n de Zooni https:I/uro!rYeb.roonr.u5/j/1892 7 27 7 07S9?1twd=SXhrn SXTiWXJ3eX 2Wbf nlltrUp6L2dQUI09 ldrntiti{aciDn f)ora tll evento: 1t927277 0?5! todigo de atceso: 820'177 L.ri or0onle,r<iorrcs o riarprt,,at qrre tldr$que11 irrloru*atidrt, nsiltcnclt_. tkni(a psra li^ iolir-itud-,o.ltrrg.rn al-(tunit dudn pueden dlrigirse a Tr.rccT 9nrirh .rl 21P.25).1418 o por {arreo clr(trdni{o t t,odry.gmith&{Dllicil.ou11 tyfl.0ov q{J* 3* u que I - 16.D.3.b Packet Pg. 1201 Attachment: HOME ARP Allocation Plan Collier County Original submission (29338 : HOME-ARP First Revision to the Allocation Plan) e con HUD ptsra veri{i(ar el (illimo dfa real rtel periodo de obie(idn. Pub Date: )vl,l Zl,2O2?;1,53d2504 16.D.3.b Packet Pg. 1202 Attachment: HOME ARP Allocation Plan Collier County Original submission (29338 : HOME-ARP First Revision to the Allocation Plan) ~n plts iaily Nttull PART OF THE.USA TODAY NE.TWORK Published Daily Naples, FL 34110 CC HOUSINGHUMAN VETE RAN SERV 3299 TAMIAMI TRL E STE700 NAPLES, FL 34112 Affidavit of Publication STATE OF WISCONSIN C OUNTY OF BROWN Before the undersigned they serve as the authority, personally appeared said legal clerk who on oath says that he/she serves as Legal Clerk of the Naples Daily News, a daily newspaper published at Naples, in Collier County, F lo rid a ; distrib u te d in C o llie r an d Le e co u n tie s of F lo rid a ; th a t th e att ache d co p y of the ad ve rt isin g w as pu b lish e d in sa id ne w sp a p e r on da te s liste d . A ffi a n t furt he r sa ys tha t th e sa id N a p le s D a ily N e w s is a ne w sp a p e r pu b lish e d at N a p le s, in sa id C o llie r C o u n ty, F lo rid a , an d th a t the sa id ne w sp a p e r ha s he retofo re be e n co n tin u o u sly pu b lish e d in sa id C o llie r C o u n ty, F lo rid a ; distrib ute d in C o llie r an d Le e co un tie s of F lo rid a , ea ch da y an d ha s be e n e n te re d as se co n d cl a ss m a il m a tt e r at th e po st offi ce in N a p le s, in sa id C o llie r C o u n ty, F lo rid a , fo r a pe rio d of on e ye a r ne xt pre ce d in g the first pu b licatio n of th e att ache d co p y of ad ve rt ise m e n t; an d affia nt furt he r sa ys th a t he ha s ne ith e r pa id no r pro m ise d an y pe rso n , o r co rpo ratio n an y disco u n t, re b a te , co m m issio n or re fun d fo r the p u rp o se of se cu rin g th is ad ve rt ise m e nt fo r pu b licatio n in sa id ne w sp a p e r issue (s) da te d o r by p u b licatio n o n th e ne w sp a p e r's w e b site , if au th o rize d , o n lssue(s) dated: 01/26/2023 ----,.~~ ---- S u b scrib e d an d sw o rn to be fo re o n Ja n u a ry 26 , 2 0 2 3 : M y co m m issio n exp ire s NANCY HEYRMAN Notary Public State of Wisconsin P u b licatio n C o st: $889.00 A d N o : 00 0 5 5 7 0 4 8 3 C u sto m e r N o : 13 0 4 2 14 P O #: # of A ffi d a vits 1 This is not an invoice 16.D.3.b Packet Pg. 1203 Attachment: HOME ARP Allocation Plan Collier County Original submission (29338 : HOME-ARP First Revision to the Allocation Plan) PU B LI C N O TIC E CO UI ER CO UNTY ., FL O RI D A PU BLI C: COMMtNT l>EIUOD & f>UBLrC HEARING HOME INVESTMENT PARTNERSHIPS PROGRAM AMERICAN RESCUE PLAN (HOME-ARP) NOnc:E is givM that coUier County was awarded Si, 729,0713 in HOME~Ame(kan Re.scue Plan (~ROME-ARP~) . funds In a O• ,ne•tirt'le allocation from the U.S. Department of urba,n, Hoo$ing and oevelopm4lnt ("HUD~). federal HOME•ARP fun,ding was created to assist individuals or households who are expedendng homelessness, at risk of homelessness, Md other vulnerable pcpulations, b)' prov,ding affordable housing, rental assistance, iupportive services., and MrHongtegate shelter, to reduce :homele-sSotiess and increase housing stability. The HOME-ARP Al- locatlon Plan ( "the Pli'ln ") de fin!!$ the use of the HOME·ARP ?rant fonds to address these needs within the. HUD-approYed el- 1~ih1e activitles. The County will make fonds ,available for activl- ties once the HOME-ARP Allocation Plan's assodatad consults- tion, p.ublic partrdpatio.n process1 and HUD appro.val haw been completed through the substa ntial amendment of the PY 2021 Annual Action Plan. A draft of Cotlier Counfy's HOME-ARP Alloc~ron Plan will be avallabte for a tS-0ay puhlic comment period. Nottce is also 9tv- en that a public hearing will be held to allow the public to re- view and make comments. Citizens can v1ew the draft Plan from Jam,1ary 2ij1 2iJ23 to ~bn,1- .ary 10., 2023 at the Community and Human Sgn,1ces Division of- fice .it 3339 Eart Tarnierni Trail, Health and Publk Services Build- ing H, Room 213 Naples, Florida 34112, and rt can also be viewed and downloaded from the County's website https://ww w. co 11 i er co 1,1 n t y f I.go Y / 91 over nm en tt pub Ii c - s e rv i c es/di vis i o ns/c om m un ity-a n d-h u ma n-s erv i ce s- divisionlhousing-program~gran4. 1PubHc comments regarding the drc,ft HOME-ARP Allocation P1;_in can be submitted by m;iil, de'1ivered to the .iddress ebove or vi.i email at hQU$inginfo@l:ollierw,u ntyfl.gov . IPubli~ He.irir:ig: .A publi,c; he.iring wm be held to review. and d~ cuss the draft Pl;in on February 9, 202i, at 9:00 a.m,-H:00 a.m. at Community and Human servlces onices at 3339 E Tarntarnl Trail, Building H, 3rd Floor, Naple$ FL 34112. Collier County will consider .iny commems oi- view~ of citizens received in writing or orally at the publi,;; hearing in preparing the Plan. tFor forth er information, please contact the Community and Hu- :man Services Dillision at (239) 2 52-4228, A(;(.es>ibility; Collief" CotHl;t}' dc;>e~ not dimiminate on the t>asis of disability in the admission to, . ac,ess to, or operations of pro- grams, services., or .ictivitie$, induding the put>lic; partidpation ii>roc~. Ass istance can include, but 1s not limited to, assistance for non-English speaking persons and for ttiose who require a :sign language interpreter, If you require sr.edal aid or sel"lice-s as atldressed in the Americans with Disab1litie$ Act or require :som eone to translate or sign, please contact ttie Communlty & Human Service1; office at (239} 252-4228. Arrangements for assis- tance should be made through the Collier County Commtmlty and Human Ser\llces Division at leacst 1ive. (5) wor1c:i ng days prior to the public hearing. Residents are encouraged to attend and ,participate. For additfonal . information contact Lisa Carr at {239} 252•2339 or lisa,carr@-colliercountyfLgov. AVISO PUBUCO CONDAOO OE COLLIER, FLORIDA P£RiOOO OE COMENTARIPS p(m1cos Y AUOIENCIA PLIBLICA PROGRAMA OE ASOCIACION PARA LA INVERSt¢N EN VIVIENOA Pl.AN OE R.ESCATE ESTADOUNIOENSE (HOME-ARP) ~ INFORMA que el condado de Collier recibi6 $2, 72!},078 en fondos del Plan de roseate estadounfdcms-e HOME {HOME-Amer- ican Rl!'Seue Pfan, HOME•AFtf>) en una aslgnacl6n (mica del :Oepartamento de VMenda y D~rrnUo Urba no de los EE. Ul..1. {I-lousing and Urba n Development, HUD). Los fondos federales HOME•.ARP se aearon para ayudar a fas personas o a las famlllas .que se encuentran sin hogar, en riesgo do quedar541 sin hogar y a otras pobtaclones vulne,rables, propordontsndoles vlvie,ndas as<!Qulbles, aslstenc.la para el alquller, servldos de apoyo y ,illojamiento no colectlvo, con el fJn de reducir la cantldad de personas sin hogar y aumentar la establlidad dtl' la vlvlenda, . El Plan de aslgnacl6n. HOME-ARP {'el Plan") define el USO de los fondos de la subvenci6n HOME-ARI" para ahordar estas ne<:esl• dades dentro de las attMdades elegibles aprobadas por el HUD. El (ondado pondra a disposld6n los fondos para las actMdades una vez que se haya cornpletado la conwlta a.sodada al Plan d@ asignad6n HOME•.ARP , el pr<Xeso de partklp,acl6n, publka y la aprobaci6n del HUD a traves de la emnienda susttindtil del Plan de Acci6n Anual l'Y 2021. IJr'I borrador del Plan de asigriad6n HOME-ARP del condado d@ <:olller estata disponible pa.rti un periodo de l'.'.omenttirios _publicos de 15 dfas .. Tambien se informa que ~e celehr.1ra una .iudlenda, publica para permitir que el publico examine fti 1propuesta y rea lice tomenta rlos. Los dudadanos pueden aa:eder a.I borrador di:!I pti'ln de9de el 26 de enero de 2023 hasta el 10 de febrero de 2023 en la .ofidna <ie la Division ~e ~ervl~ios S°.~unitaflos '/ Humana.s. ubic~d~ en 33.39 East Tam1arm Trad, Ed1ftao H de 5alud y Ser1.r1c1os Pubhcos, '.Sala 2.13 Naples, Florida 34112, 'i fambien se puede ver y descargar de la pagina web del condado https:1/w',W,l .coll:iereou ·n,tyfl .gov/governme ntfp ublk-se rvices/divisions/commu niW-and- human-services-di~•isiorl/hQusi ng-prograrns/grants. Los comentarfos de! publico sobre. el !)toyecto del Plan de .isignaci6n HOME-ARP pueden enYia.rse por Correo, a la diretdon arrit>a indicada, o por correo eleroonico a la siguiente <iire:ci6rl ho~inginfo@rnlliercour1tyfLgov . . . . , Aud1encia publica: se celebrara una aud1enc1a publ1ca para rP11is;ir V ;m;,Jj7;,r Pl hnrr,trlr,r nPI P'i,m pf (I ,fp fpl,r,,rn ,Ip ;,o:n 16.D.3.b Packet Pg. 1204 Attachment: HOME ARP Allocation Plan Collier County Original submission (29338 : HOME-ARP First Revision to the Allocation Plan) de la$ 9:00 a. m. a ~las 11 :()()~a. m. en~ laji. (>ndna$ de k~, .. rdo$ -co'. rnunltarlos y Humanos en 3339 E Tamiarni Trall, Edifi<;io H, ;L• piso, Naple!; FL 34112. El: condado de Collier tendril en cuenta 10$ comemanos y opiniones de 1-0$ dudadanos retibidos por escrtto o en forrna oral en la audianda pubhca cuando se pre- [Pare el plan. Para obtener mas inforrnaclon, i;om u niquese con la Divi~i(i.n d·e Ser.°"k .. io·s· .Com .. uni.t.i rios 'i Humanos II.a. mando .ii (239) 252-4228. Ao::esibilid.id: el condado de C::Qllier no c;l~crimina por motives ode di$,;ap.icidad en I;, admf$i6n, acceso 1,1 operadcnes de pr09r.i- mas, servicics o ectividades, incluldo el prcceso de particlpacion :p(lbli,;a, t.i o3$!Stencia puede induir, entre OtrD$, aii:iten<ia parn ;p,ersonas que no hablan ingl~ y pere las que requieren un interprete de lengu<1Je de $ei'ias. S1 necesita ayuda Q servkios es- :peciales come se aboorda en la Le>' de Erndounidenses con Dis- capaeidades o si necesita que alguien tradu.«a o un interprete ode lenlluaje de senas., comuniquese ,;on .la ofo:ina de Servkios Comun1tarios >' Hum.ino~ Uamando al (239) 252-4228. Se deben lh.icer ;irreglos para fe(ibir asistenda a traYe$ de la Oivisl6n de Servicios Cornun itari05' y Ht1 mano$ del Conda do de Col I ier al me- if10$ cinco (5} dia$ h.i biles ante$ de l;i avdiencia p(lblic,;a. Se invita a [05 residentes a asistir y participar. Para obtener mas inforrnad6n, CQmuniquese con llsa Carr 11.imarido al (239) 2'52- 2339 o emlbiend o a lfsa.nm@<omercountyfl.gov, ,Pubtlate: Jan, 26, 2023 #5S70483 16.D.3.b Packet Pg. 1205 Attachment: HOME ARP Allocation Plan Collier County Original submission (29338 : HOME-ARP First Revision to the Allocation Plan) Collier County, FL HOME-American Rescue Plan Allocation Plan Public Comment Recommendations regarding Allocation Plan Respectfully submitted by: Richard Forman, richard@hvgllc.com Dated: February 9th, 2023 16.D.3.b Packet Pg. 1206 Attachment: HOME ARP Allocation Plan Collier County Original submission (29338 : HOME-ARP First Revision to the Allocation Plan) 2 Conclusions Collier County should enact a strong approach towards affordable housing and homelessness as without intervention, policies or procedures, the problem is going to grow. There are three (3) recommendations, and they are detailed and supported below: • RESIDENCY REQUIREMENTS: The County needs to prioritize the needs of established residents. It is a waste of valuable resources to provide assistance or allocation of affordable housing units to recent arrivals. Currently, residents who have been in Collier County for 2 years or longer have no greater priority than does someone that arrived in our County on Thursday of last week. This is wrong and priority should be established for our community. In fact, by providing housing support for recent arrivals, the County might in fact be encouraging homeless to migrate here. • PRIVATE DEVELOPMENT: PUBLIC SUPPORT The County government should not be the position of building or managing housing stock. If any housing stock is to be created it should be done so by private developers. The role of the County should be to incentivize, support and otherwise develop policy recommendations that can be put into place by private developers. The County should not put itself in a position to operate or develop housing as it will inevitably be done far less efficiently, more politicized and ultimately a strain on our public resources. • SEGMENTATION: I recognize that this hearing is mostly about homelessness or those at risk of homelessness, however, as it relates to affordable housing/homelessness, it is important to segment the population. There are several segments of the population that fall under the affordable housing/homeless umbrella (see below). It is important that the County treat these segments differently. There is not one-size-fits-all approach towards homelessness and affordable housing and policy decisions should be made in light of these different segments. If we segment and exclude the homeless population that is either youth, mental health issues, substance abuse issues we are left with a very small population of about 127 individuals who are homeless (and not subject to one of the other groups listed above). For these individuals, we need to focus on career training, budgeting, self empowerment and how to secure a job that pays enough for them to afford suitable housing. 16.D.3.b Packet Pg. 1207 Attachment: HOME ARP Allocation Plan Collier County Original submission (29338 : HOME-ARP First Revision to the Allocation Plan) 3 Residency Requirements Collier County is a desirable place to live. Many residents have worked hard to afford the ability to live in this community. I think it’s important to understand that there is no universal “right” to live in Collier. Everyone would quickly agree that this perspective doesn’t make sense. The County has many desirable attributes including cleanliness, no personal income taxes, great schools, low crime rate, excellent parks and great weather. Those desirable attributes are well known and it is one of the reason that our County continues to grow in popularity. According to the Census Bureau, the population of Collier County grew to 385,980 (July 1, 2021) from 375,752 (April 1, 2020)1. This is an increase of 10,228 people or 2.7% over a fifteen (15) month period which represents an annualized growth rate 2.2%. To put that growth rate into perspective the overall growth in Florida is 1.9%2 and the overall growth rate of the US Population is 0.4%3. Collier County is growing at a rate that is almost six (6) times faster than the population of the United States. I’m sure that most of the people that moved to Collier County can support themselves, but for those that can’t, they should not be a burden from day one In-County vs. Out-of-County In most states, there is a public college option that provides discounts to in-state residents. For Florida, the residency requirement for higher education is twelve (12) months4. It is reasonable to beneficiaries of affordable housing benefits also have a residency requirement. I don’t know what is a reasonable amount of time, but I do think that citizens that have lived here and been a part of the community and most likely were contributors to the tax base should be given priority over new transients. As it turns out most of the people moving to Collier County moved from other parts of Florida 1 https://www.census.gov/quickfacts/colliercountyflorida 2 Census Bureau, 2022 reporting, https://www.census.gov/library/stories/2022/12/florida-fastest-growing-state.html 3 https://www.census.gov/newsroom/press-releases/2022/2022-population-estimates.html 4 https://www.floridashines.org/residency-for-in-state-tuition 16.D.3.b Packet Pg. 1208 Attachment: HOME ARP Allocation Plan Collier County Original submission (29338 : HOME-ARP First Revision to the Allocation Plan) 4 According to the Federal Reserve Bank of St Louis (FRED) the unemployment rate of Collier County peaked in march of 2020. However, since August of 2021, the unemployment rate dropped to 4.0% and has stayed below 4.0% since that time.5 Having no unemployment is a bad condition for the economy. Having no unemployment indicates that there will be an extreme pressure on rising wages, almost uncontrollable. The BLS (Bureau of Labor Statistics) considers full employment at the level of unemployment which does not created wage pressures greater than the rate of inflation. Bloomberg reports that the 6 “U.S. Federal Reserve economists currently put this so-called natural rate of unemployment at between 4.1 percent and 4.7 percent.” 5 https://fred.stlouisfed.org/series/FLCOLL0URN 6 https://www.bloomberg.com/quicktake/full-employment 16.D.3.b Packet Pg. 1209 Attachment: HOME ARP Allocation Plan Collier County Original submission (29338 : HOME-ARP First Revision to the Allocation Plan) 5 Figure 1 - Unemployment rate in Collier County, Source St. Louis Fed Given that Collier County is already at full employment, and that 98% of people that are looking or want a job have one and this situation has existed for well over a year we should discount the issue of COVID as a reason for unaffordable housing. As with all situations, of course there will be exceptions. However, in the aggregate on a community wide basis we should be thinking about solutions that are county-wide and not based upon unique, one-off situations. When we are thinking about the small cohort of individuals who are homeless the research shows that there are about 127 individuals based upon the PIT survey (excluding vets, youth, domestic abuse, substance abuse and mental disorder). I would surmise that they are unable to secure and retain a job that is able to pay enough to support their housing needs. This happens to be a very small cohort on a county wide basis. Private Development, Public Support Under no circumstances should Collier County own and/or operate its own housing program. Throughout this county, there is not one municipality that has done it right. The worst landlord in NYC is the NYC Housing Authority. The worst landlord in Chicago is the Chicago Housing Authority. Most, if not all, municipalities are unable to successful build or operate public housing. A quick sampling of some of these issues are detailed below: 16.D.3.b Packet Pg. 1210 Attachment: HOME ARP Allocation Plan Collier County Original submission (29338 : HOME-ARP First Revision to the Allocation Plan) 6 • “The public housing agency reportedly collected just 65% of the rent it charged during the 12 months leading up to December — the lowest in NYCHA’s (the New York City Housing Authority) history.”7 • Tracey Scott, the CHA’s (Chicago Housing Authority) chief executive, was barraged with complaints about poor building conditions, questions about the agency’s deal to lease land to the Chicago Fire soccer team and concerns about its vacant units amid the city’s homeless crisis. 8 • “The U.S. Department of Housing and Urban Development took possession of the Slidell Housing Authority (New Orleans, LA) — which administers federally funded affordable housing programs for the city —after finding the agency in “substantial default”.9 • “The city of Annapolis has asked a federal judge to consider placing its troubled public housing authority in receivership”.10 There are scores of examples of failed implementation of public housing managed by municipalities. I think it would be wise for Collier County to avoid this foreseeable problem. Public-Private Partnership A better solution is to figure out how to incentivize and motivate and assist private developers in developing and managing affordable housing. Developing real estate is challenging. It is unrealistic to assume that the government can do so more efficiently or effectively than can a private market oriented developer. Developers are not the problem Whenever the topic of affordable housing comes up, there is often the thread of accusation and vilification of landlords, landowners and developers. I find this intriguing because it seems to be 7 https://nypost.com/2023/01/24/nycha-rent-collection-crashes-to-record-low/ 8 https://blockclubchicago.org/2023/01/25/aldermen-residents-blast-public-housing-leader-at-city-council-hearing/ 9 https://lailluminator.com/2023/01/11/federal-government-takes-over-slidell-housing-authority/ 10 https://www.capitalgazette.com/maryland/annapolis/ac-cn-haca-annapolis-lawsuits-20221031- epqb4brhp5e43gdplt6h2ifrgq-story.html 16.D.3.b Packet Pg. 1211 Attachment: HOME ARP Allocation Plan Collier County Original submission (29338 : HOME-ARP First Revision to the Allocation Plan) 7 unique. When the restaurants increase prices, we don’t accuse restauranteurs of price gouging. Developers and landlords are not much different than employees. Both groups are trying to maximize the value of their assets (landlords) or time (employees). When a tight labor market materializes, and an employee asks for a raise, is this considered price gouging? Unlikely. Typically, entities or people ask for more money when either, or both (a) their costs are going up due to inflationary pressure or (b) there is a supply constraint and their asset or labor is worth more than they are currently getting in the market. Either way, pricing is subject to market forces. Housing is no different. Housing is like any other good/service (albeit a lot more fundamental to our health and happiness than is a luxury good). It would be wise for Collier County to engage and partner with for-profit developers Homeless and Affordable Housing Segmentation • As it relates to those different segments, there are a lot of comorbidity or multiple issues which affect people’s ability to afford housing. o Homeless/affordability challenged segmentation § Mental health issues – treatment required, not a housing or economic issue, per se. In the 2020 PIT count there were 127 individuals with mental illness, which represents 31% of the Adult homeless population11 § Substance abuse – treatment required, not a housing or economic issue, per se. In the 2020 PIT count there were 155 individuals with a substance use disorder, which represents 38% of the Adult homeless population.12 § The balance of the homeless (excluding vets, youth and victims of domestic abuse) are about 127 individuals. I would classify them as 11 This is based upon the Homeless Needs Inventory and Gap Analysis Table, Data Sources 1 from HOMEARP Allocation. This data excludes vets, youth and victims of domestic abuse. 12 ibid. 16.D.3.b Packet Pg. 1212 Attachment: HOME ARP Allocation Plan Collier County Original submission (29338 : HOME-ARP First Revision to the Allocation Plan) 8 underemployed or underpaid – for this segment, programs should focus on training and self sufficiency o Seniors on a fixed income who have no employment nor ability to secure employment o Civil servants/Heroes (EMS, Fireman, Deputy Sheriffs, Hospital personnel, etc.) who are gainfully employed o Workers for private employers who are presumably underpaid or not paid enough and therefore qualify for affordable housing based upon their income levels. ******* Other comments; COVID I think it is time to stop attributing problems in our economy or in our population to COVID. Not only did the government spend unheralded sums of money to mitigate the economic impact of COVID, more importantly, the county is now at more than fully employment and there are too many jobs chasing too many employees. This dynamic has existed in Collier County for the past 1-2 years and I think it is implausible that someone that is both willing and capable cannot find suitable well-paying employment in today’s market. I’m not negating the massive toll that domestic abuse, substance abuse, or mental disorders exacts upon the affected; In this section, I’m trying to discuss the segment of the population that is not afflicted by these problems. Unlike most of the US, Collier County remained, for the most part, open during COVID. Our businesses were open, our stores were open and most importantly our schools were open. While I’m sure there are exceptions, for the most part, employees in Collier County should have remained relatively unscathed due to COVID. I think that using COVID as a reason for homelessness (again exdclusive absue, disorder, youth, etc.) or loss of housing (today) is a specious argument. 16.D.3.b Packet Pg. 1213 Attachment: HOME ARP Allocation Plan Collier County Original submission (29338 : HOME-ARP First Revision to the Allocation Plan) PUBLIC NOTICE COLLIER COUNTY, FLORIDA PUBLIC COMMENT PERIOD & PUBLIC HEARING HOME INVESTMENT PARTNERSHIPS PROGRAM AMERICAN RESCUE PLAN (HOME-ARP) NOTICE is given that Collier County was awarded $2,729,078 in HOME-American Rescue Plan (“HOME-ARP”) funds in a one-time allocation from the U.S. Department of Urban Housing and Development (“HUD”). Federal HOME-ARP funding was created to assist individuals or households who are experiencing homelessness, at risk of homelessness, and other vulnerab le populations, by providing affordable housing, rental assistance, supportive services, and non - congregate shelter, to reduce homelessness and increase housing stability. The HOME-ARP Allocation Plan ("the Plan") defines the use of the HOME-ARP grant funds to address these needs within the HUD-approved eligible activities. The County will make funds available for activities once the HOME-ARP Allocation Plan’s associated consultation, public participation process, and HUD approval have been completed. The public participation process began when the public notice was published in the Naples Daily News on January 26, 2023, to review the draft of the HOME-ARP Allocation Plan. No comments were received during the public comment period of January 26, 2023 to February 10, 2023. The COUNTY would like to make a revision to the HOME-ARP Allocation Plan due to a scrivener’s error in the number of HOME-ARP assisted units. HUD advised the COUNTY to make the correction in the Allocation Plan. The revision states HOME-ARP funds will assist 10 units. Citizens can view the revised HOME-ARP Allocation Plan from May 14, 2024 to June 14, 2024 at the Community and Human Services Division office at 3339 East Tamiami Trail, Health and Public Services Building H, Room 213 Naples, Florida 34112, and it can also be viewed and downloaded from the County’s website https://www.colliercountyfl.gov/government/public- services/divisions/community-and-human-services-division/housing-programs/grants. Public comments regarding the HOME-ARP Allocation Plan can be submitted by mail, delivered to the address above or via email at Tracey.Smith@colliercountyfl.gov. Public Hearing: A public hearing will be held on June 4, 2024, from 9:00 a.m.-11:00 a.m. at Community and Human Services offices at 3339 E Tamiami Trail, Building H, 3rd Floor, Naples FL 34112 and via Zoom. https://us02web.zoom.us/j/83353962475?pwd=a2U4OTFBZlNjc3hOblJnbk12aGdvUT09 Meeting ID: 833 5396 2475 Passcode: 341392 Accessibility: Collier County does not discriminate on the basis of disability in the admission to, access to, or operations of programs, services, or activities, including the public participation process. Assistance can include, but is not limited to, assistance for non-English speaking persons and for those who require a sign language interpreter. If you require special aid or services as addressed in the Americans with Disabilities Act or require someone to translate or sign, please contact the Community & Human Services office at (239) 252-4228. Arrangements for assistance 16.D.3.c Packet Pg. 1214 Attachment: Collier Public Notice HOME-ARP Allocation Plan revision (29338 : HOME-ARP First Revision to the Allocation Plan) should be made through the Collier County Community and Human Services Division at least five (5) working days prior to the public hearing. Residents are encouraged to attend and participate. For additional information contact Tracey Smith at (239) 252-1428 or Tracey.Smith@colliercountyfl.gov. 16.D.3.c Packet Pg. 1215 Attachment: Collier Public Notice HOME-ARP Allocation Plan revision (29338 : HOME-ARP First Revision to the Allocation Plan) HOME ARP Grant Agreement U.S. Department of Housing and Urban Development Office of Community Planning and Development Title II of the Cranston-Gonzalez National Affordable Housing Act /\ssistancc Listings 1114.239 -HOME Invest ment Partnership s Program 1. Grantee Name and Address 2 . Grant Number (Federal Award Identification Number (FAIN) Collier County M21-UP120217 3301 E Tamiami Trail 3a Tax Identification Number 3b. Unique Entity Identifier (f ormerly DUNS) Naples, FL 34112 596000558 076997790 4 . Appropriation Number 5 . Budget Period Start and End Dale 861/50205 FY 2021 -09/30/2030 6. Previous Obligation (Enter ·o· ror Initial FY allocation) so a . Formula Funds s 7. Current Transaction(+ or-) S2.729.078.00 a. Administrative and Planning Funds Available on Federal Award Date S136.453.90 1i •. 1, i• I ' ' I.,. ,, ' b. Balance of Administrative and Planning Funds $272,907.80 I,, ' C. Balance of Formula Funds $2,319,716.30 8 . Revised Obligation s a. Formula Funds s ,· 9 . Special Conditions (check applicable box) 10. Fodoral Award Dato (HUD Official's Stgnaturo Dato) D Not applicable D Attached 09/20/202 1 11. Indirect Cost Rate· 12. Period of Performance 8dministering Agencl(/De11!. Indirect Co~t Bale _% _% _% _% Dire1.I Cos! Base Date in Box #10 -09/30/2030 • If funding assistance will be used for payment of indirect costs pursuant to 2 CFR 200, Subpart E-Cost Principles, provide the name or the departmenVagency, its indirect cost rate (incl uding if the de minimis rate is charged per 2 § CFR 200.414). and the direct cost base to which lhe rate w ill be applied . Do not include cosl rates for subrecipienls . The HOME-AR P Grant Agreement (lhe "Agreement") between lhe Department of Housing and Urban Development (HUD) and the Grantee is made pursuant to the authority of lhe HOME Investment Partnerships Act (42 U.S.C. 12701 et seq.) and Section 3205 of the American Rescue Plan (P.L. 117-2) (ARP). HUD regulations al 24 CFR part 92 (as may be amended from time to time). the CPD Notice entiUed "Requirements for the Use or Funds in the HOME-American Rescue Plan Program• (HOME-ARP Implementatio n Notice). the Grantee's HOME-ARP allocation plan (as or the date of HU D's approval). and this HOME-ARP Grant Agreement, form HUD-40093a. includi ng any speci al conditions (in accordance wi th 2 CFR 200.208), constitute part of thi s Agreement. HU D's payment of funds under this Agreement is subject to tho Grantee's compliance with HU D's electronic funds transfer and information reporting procedures issued pursuant to 24 CFR 92.502 and the HOME-ARP Implementation Notice. To the extent authorized by HUD regulations at 24 CFR part 92, HUD may, by its execution of on amendment, deobligate funds previously awarded to the Grantee without the Grantee's execution of the amendment or other consent. The Grantee agrees that funds invested in H OME-ARP activi ties under the HOME-ARP Implementation Notice are repayable in accordance wilh the requirements of the HOME-ARP Implementation Notice. The Grantee agrees to assume all of lhe responsibility for environmental review. decision maki ng . and actions. as sp ecified and required in regulation at 24 CFR 92 .352 and 24 CFR Part 58, as well as the HOME-ARP Implementation Notice. The Grantee must comply wilh the applicable requirements al 2 CFR part 200, as amended, that are Incorporated by the program regulations and the HOME-ARP Implementation Notice, as may be amended from time to lime. Where any previous or f uture amendments to 2 CFR part 200 replace or renumber sections _of part 200 t hat are cited specifically in the program regulations or HOME-ARP Implementation Notice. activities carried out under the grant after the effective date of the 2 CFR part 200 amendments will be governed by the 2 CFR part 200 requirements . as replaced or renumbered by lhe part 200 amendments . The Grantee shall comply with requ irements established by l he Of fi ce of Management and Budget (0MB) concerning the Universal Numbe ri ng System and System for Award Management (SAM) requirements in Appendix I to 2 CFR part 200, and the Federal Funding Accounlabilily and Transparency Act (FFATA) in Appendix A lo 2 CFR part 170. Funds rema ining in the grantee's Treasury account after the end of lhe budget period will be cancelled and thereafter not available f0< obligation or expenditure for any purpose. Per 31 U.S .C. 1552, the Grantee shall not incur an obli ati ons to be aid wilh such assistance after the end of lhe Budget Perio d. 13. For the U .S. Department of HUD (Name and Title or Authorized Official) 15. Dale 09/22 /202 1 Ann D . Chavis, CPD Director ' PAS Code HMX Amount S2,729,078.00 Page 1 Zoz / Approved as to fonn and legality -·-------------------------------- 16.D.3.d Packet Pg. 1216 Attachment: AGRMT 2021 09-20 HOME ARP M21-UP120217 - HUD (29338 : HOME-ARP First Revision to the Allocation Plan) 21. Additional Requirements: These additional requirements are attached and incorporated into this Agreement. The Grantee agrees to these additional requirements on the use of the funds in 7 ., as may be amended from time to time by the Secretary. a) As of the Federal Award Date, the Grantee may use up to the amount identified in 7.a. of this Agreement for eligible administrative and planning costs in accordance with the HOME-ARP Implementation Notice. , b) Until the date of HU D's acceptance of the Grantee's HOME-ARP allocation plan, the Grantee agrees that it will not obligate or expend any funds for non-administrative and planning costs, in accordance with the HOME-ARP Implementation Notice. c) In accordance with the HOME-ARP Implementation Notice, as of the date of acceptance by HUD of the Grantee's HOME-ARP allocation plan, HUD shall make the amount identified in line 7. of this Agreement available to the Grantee. d) If the Grantee does not submit a HOME-ARP allocation plan or if the Grantee's HOME-ARP allocation plan is not accepted within a reasonable period of time, as determined by HUD, the Grantee agrees that all costs incurred and HOME-ARP funds expended by the Grantee will be ineligible costs and will be repaid with non-Federal funds. 22. Special Conditions Page 2 of 2 form HUD-400938r, • ~ 16.D.3.d Packet Pg. 1217 Attachment: AGRMT 2021 09-20 HOME ARP M21-UP120217 - HUD (29338 : HOME-ARP First Revision to the Allocation Plan) LocaliQ Florida GANNETT PO Box 631244 Cincinnati, OH 45263-1244 AFFIDAVIT OF PUBLICATION Ann LoBosco Cc Housinghuman Veteran Serv 3299 Tamiami TRL E # 700 Naples FL 34112-5749 S TATE O F WISCONSIN, COUNTY OF BROWN Before the undersigned authority personally appeared, who on oath says that he or she is the Legal Advertising Representative of the Naples Daily News, a newspaper published in Collier County, Florida; that the attached copy of advertisement, being a Legal Ad in the matter of Govt Public Notices, was published on the publicly accessible website of Collier and Lee Counties, Florida, or in a newspaper by print in the issues of, on: 05/13/2024 Affiant further says that the website or newspaper complies with all legal requirements for publication in chapter 50, Florida Statutes. Subscribed and sworn to before me, by the legal clerk, who is personally known to me, on 05/13/2024 __ > _ __,_,-:-;;:;:::=a-- My commission expires Publication Cost: Order No: Customer No: PO#: THIS IS NOT AN INVOICE! $766.50 10168575 1125695 # of Copies: 1 Please do not use this form for payment remittance. NANCY HEYRMAN Notary Public State of Wisconsin Page 1 of 2 16.D.3.f Packet Pg. 1218 Attachment: Affidavit HOME ARP Allocation Plan revision public notice (29338 : HOME-ARP First Revision to the Allocation Plan) Page 1 of 1 EQUAL HOUSING OPPORTUN1ITY PUBLIC NOTICE COLLIER COUNTY, FLORIDA PUBLIC COMMENT PERIOD & PUBLIC HEARING HOME INVESTMENT PARTNERSHIPS PROGRAM AMERICAN RESCUE PLAN (HOME-ARP) NOTICE ls given that Collier County was awarded $2,729,078 In HOME-American Rescue Pion {"HOME-ARP"} funds In a one-time allocatlon from the U.S. Department of Urban Housing and Development ("HUD"). Federal HOME- ARP funding was created to assist individuals or households who are experiencing homelessness, at risk of homeless- ness, and other vulnerable populations, by providing affordable housing, rental assistance, supportive services, and non-congregate shelter, to reduce hom elessness and increase housing stability, The HOME-ARP Allocation Pion (Nthe Plan") defines the use of the HOME-ARP grant funds to address these needs within the HUD-approved eligible activities. The County will make funds available for activities once the HOME-ARP Allocation Plan's associated consultation, public participation process, and HUD approval have been completed. The public participation process began when the public notice was published in the Naples Daily News on January 26, 2023, to review the draft of the HOME-ARP Allocation Plan. No comments were received during the public comment period of January 26, 2023 to February 1 o, 2023. The COUNTY would like to make a revision to the HOME-ARP Allocation Plan due to a scrivener's error In the number of HOME-ARP assisted units. HUD advised the COUNTY to make the correction in the Allocation Plan. The revision states HOME-ARP funds wlll assist 10 units. Citizens can view the revised HOME-ARP Allocation Plan from May 14, 2024 to June 14, 2024 at the Community and Human Services Division office at 3339 East Tamiaml Trail, Health and Public Services Building H, Room 213 Naples, Florida 34112, and it can also be viewed and downloaded from the County's website https://www.colliercountyfl.gov/government/public-services/divisions/community-and-humon-services-division/h ous- Jng-programs/grants. Public comments regarding the HOME-ARP Allocation Pion can be submitted by mail, delivered to the address above or via email at Tracey,Smith@colllercountyfl.gov. Public Hearing: A public hearing will be held on June 4, 2024, from 9:00 a.m.-11:00 a.m. at Community and Human Services offices at 3339 E Tamlami Trail, Building H, 3rd Floor, Naples FL 34112 and via Zoom. https://us02web.zoom.us/J/83353962475?pwd=a2U4OTFBZINlc3hOblJnbkl2aGdvUT09 Meeting ID: 833 5396 2475 Passcode: 341392 Accesslbttltv: Collier County does not discriminate on the basis of disability in the admission to, access to, or opera- tions of programs, services, or activities, including the public participation process. Assistance can include, but is not llmlted to, assistance for non-English speaking persons and for those who require a sign language Interpreter. If you require special old or services as addressed In the Americans with Disabilities Act or require someone to trans- late or sign, please contact the Community & Human Services office at (239) 252-4228. Arrangements for ossts- tance should be made through the Collier County Community and Human Services Division at least five (5) working days prior to the public hearing. Residents are encouraged to attend and participate. For additional information contact Tracey Smith at (239) 252-1428 or Tracev.Smith@colllercountyfl,gov. No.10168575 May 13, 2024 16.D.3.f Packet Pg. 1219 Attachment: Affidavit HOME ARP Allocation Plan revision public notice (29338 : HOME-ARP First Revision to the Allocation Plan) LocaliQ Florida GANNETT PO Box 631244 Cincinnati, OH 45263-1244 AFFIDAVIT OF PUBLICATION Ann LoBosco Cc Housinghuman Veteran Serv 3299 Tamiami TRL E # 700 Naples FL 34112-5749 STATE OF WISCONSIN, COUNTY OF BROWN Before the undersigned authority personally appeared, who on oath says that he or she is the Legal Advertising Representative of the Naples Daily News, a newspaper published in Collier County, Florida; that the attached copy of advertisement, being a Legal Ad in the matter of Govt Public Notices, was published on the publicly accessible website of Collier and Lee Counties, Florida, or in a newspaper by print in the issues of, on: 05/13/2024 Affiant further says that the website or newspaper complies with all legal requirements for publication in chapter 50, Florida Statutes. Subscribed and sworn to before me, by the legal clerk, who is personally known to me, on 05/13/2024 ---w--;--::=z.11--- My commission expires Publication Cost: Order No: Customer No: PO#: THIS IS NOT AN INVOICE! $819.00 10168588 1125695 # of Copies: 1 Please do not use this form for payment remittance. NANCY HEYRMAN Notary Public State of Wisconsin Page 1 of 2 16.D.3.f Packet Pg. 1220 Attachment: Affidavit HOME ARP Allocation Plan revision public notice (29338 : HOME-ARP First Revision to the Allocation Plan) Page 1 of 1 EQUAL HOUSING OPPO'RTUNITY AVISO POBLICO CONDADO DE COLLIER, FLORIDA PERIODO DE COMENTARIOS POBLICOS Y AUDIENCIA POBLICA PROGRAMA DE ASOCIACIONES PARA INVERSION EN VIVI ENDA (HOME) PLAN DE RESCATE ESTADOUNIDENSE (HOME-ARP) Se I NFORMA que el condado de Collier recibl6 $2,729,078 en fondos del Plan de rescate estadounidense HOME (HOME-American Rescue Plan, HOME-ARP) en una ostsnoclon (mica del Departamento de Vlvlenda y Desarrollo Urbano de las EE. UU. (Housing and Urban Development, HUD). Los tondos federales HOME-ARP se crearon para ovudar a las personas o a las famlllas que se encuentran sin hogar, en riesgo de quedarse sin hoscr v a otras pobla- ciones vulnerables, proporclon6ndoles vivlendas osequlbles, asistencia para el alquller, servicios de opovo v aloiamiento no colectlvo, con el fin de reduclr la cantidad de personas sin hosor y aumentar la establlldod de la vivienda. El Plan de ostsnocton HOME-ARP <•el Plun") define el uso de las fondos de la subvenci6n HOME-ARP para abordar estas necesldades dentra de las actlvldades elegibles aprabadas par el HUD. El candada pondr6 a disposici6n las fondos para las actlvidades una vez que se hove completado la consulta asaciada al Plan de aslgnoci6n HOME-ARP, el procesa de partlclpoci6n publlco y la aprobaci6n del HUD. El eroceso de participoci6n Pllbllca comenz6 cuando se public6 el aviso pUblico en el Naples Daily News el 26 de enero de 2023, para revisar el borrador del Plan de asignacl6n HOME-ARP. No se recibleron comentarias durante el periodo de comentarlos pllbllcos del 26 de enero de 2023 al 10 de febrero de 2023. El CONDADO desea hacer una revisl6n del Plan de aslgnacl6n HOME-ARP debido a un error de un escribano en la cantldad de unldades aslstldas par HOME-ARP. El HUD recomend6 al CONDADO que hlctera la correccl6n en el Plan de asignacl6n. La revisi6n establece que con las fondos HOME-ARP se ayudar6 a 10 unldades. Los cludadanos pueden ver el Plan de aslgnacl6n HOME-ARP revlsado a partir del 14 de mayo de 2024 hasta el 14 de Iunto de 2024 en la oficina de la Divisi6n de Servicios Humanos y Comunitarios (Community and Human Services Division) ubicada en 3339 East Tamlaml Trail, Ediflcio H de Salud y Servicios PUblicos, Sala 213 Naples, Florida 34112, y tomblen se puede very descorscr desde la pQglna web del condado. https://www.colliercountyfl.gov/government/public-services/divlsions/community-and-human•servlces-dlvlslon/hous- ing-programs/grants. Los comentarios del publlco sabre el Plan de asignaci6n HOME-ARP pueden enviarse par correo, a la dlreccl6n arrlba lndlcada, o por correo electr6nlco a Tracey.Smlth@calllercountyfl.gov. Audlencla pllbllca: se llevara a cabo una audlencia pUbllca el 4 de Iunlo de 2024, de las 9:00 a. m. a las 11 :00 a. m. en las oficinos de Servicios Comunitarios y Humanos en 3339 E Tomiomi Trail, Edlficio H, 3.0 pfso, Naples FL 34112. htlps://us02web.zoom.us/i/83353962475?pwd=a2U4OTFBZINic3hOblJnbkl2aGdvUT09 ID de la reuni6n: 833 5396 2475 C6dlgo de entrada: 341392 Acceslbllldad: el condado de Collier no dlscrlmino par motives de dlscapacidad en la admlsi6n, acceso u operaclones de erosrcmos. servlclos o actividades, incluido el proceso de participaci6n publlco. La asistencio puede incluir, entre otros, osistenclo para personas que no hablan ingles y para las que requleren un interprete de lenguaie de sefias. Si neceslta ayudo o servlcios especioles coma se obordo en la Ley de Estadounidenses con Discopacldodes o sl necesita que olguien traduzca o un interprete de lenguaje de sei\as, comuniquese con la oficina de Servicios Comunitarlos Y Humanos llamando al (239) 252-4228. Se deben hacer orreglos para reclblr aslstencio a troves de la Divisi6n de Servi- cios Comunltarios y Humanos del condado de Collier al menos clnco (5) dias h6biles antes de la audiencio pUblica. Se Invite a las resldentes a asistir y participar. Pora obtener m6s lnformaci6n, comunfquese con Tracey Smith al (239) 252-1428 o escrlblendo a Tracey .Sm ith@col I iercountyfl .gov. Na. 10168588 May 13, 2024 16.D.3.f Packet Pg. 1221 Attachment: Affidavit HOME ARP Allocation Plan revision public notice (29338 : HOME-ARP First Revision to the Allocation Plan) U.S. Department of Housing and Urban Development Community Planning and Development Special Attention of: CPD Division Directors All HOME Coordinators All HOME Participating Jurisdictions Notice: CPD-21-10 Issued: September 13, 2021 Expires: This NOTICE is effective until it is amended, superseded, or rescinded Cross Reference: 24 CFR Part 92 Subject: Requirements for the Use of Funds in the HOME-American Rescue Plan Program Table of Contents I. PURPOSE ........................................................................................................................ 2 II. BACKGROUND .............................................................................................................. 2 III. ESTABLISHMENT OF HOME-ARP REQUIREMENTS ......................................... 2 IV. QUALIFYING POPULATIONS, TARGETING AND PREFERENCES ................. 3 V. HOME-ARP ALLOCATION PLAN ........................................................................... 12 VI. ELIGIBLE ACTIVITIES ............................................................................................. 18 A. Administration and Planning .................................................................................... 18 B. HOME-ARP Rental Housing..................................................................................... 20 C. Tenant-Based Rental Assistance (TBRA) ................................................................. 38 D. Supportive Services .................................................................................................... 42 E. Acquisition and Development of Non-Congregate Shelter ..................................... 55 F. Nonprofit Operating and Capacity Building Assistance ......................................... 67 VII. OTHER FEDERAL REQUIREMENTS ..................................................................... 68 VIII. PROGRAM ADMINISTRATION .............................................................................. 75 IX. PERFORMANCE REVIEWS ...................................................................................... 95 X. FINDING OF NO SIGNIFICANT IMPACT ............................................................. 97 Appendix – Waivers and Alternative Requirements for HOME Investment Partnerships Program – American Rescue Plan (HOME-ARP) Nitiatl Tier2st I. PURPOSE This Notice establishes requirements for funds appropriated under section 3205 of the American Rescue Plan Act of 2021 (P.L. 117-2) (“ARP”) for the HOME Investment Partnerships Program (HOME) to provide homelessness assistance and supportive services. II. BACKGROUND On March 11, 2021, President Biden signed ARP into law, which provides over $1.9 trillion in relief to address the continued impact of the COVID-19 pandemic on the economy, public health, State and local governments, individuals, and businesses. To address the need for homelessness assistance and supportive services, Congress appropriated $5 billion in ARP funds to be administered through HOME to perform four activities that must primarily benefit qualifying individuals and families who are homeless, at risk of homelessness, or in other vulnerable populations. These activities include: (1) development and support of affordable housing, (2) tenant-based rental assistance (TBRA), (3) provision of supportive services; and (4) acquisition and development of non-congregate shelter units. The program described in this notice for the use of the $5 billion in ARP funds is the HOME-American Rescue Plan or “HOME-ARP.” ARP defines qualifying individuals or families as those that are (1) homeless, as defined in section 103(a) of the McKinney-Vento Homeless Assistance Act, as amended (42 U.S.C. 11302(a)) (“McKinney-Vento”); (2) at risk of homelessness, as defined in section 401 of McKinney-Vento; (3) fleeing, or attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking; (4) part of other populations where providing supportive services or assistance would prevent a family’s homelessness or would serve those with the greatest risk of housing instability; or (5) veterans and families that include a veteran family member that meet the criteria in one of (1)-(4) above. ARP authorized HUD to allocate HOME-ARP funds to states, units of general local government, insular areas, and consortia of units of general local government that qualified for an allocation of HOME funds in Fiscal Year (FY) 2021, pursuant to section 217 of the Cranston-Gonzalez National Affordable Housing Act of 1990, as amended (42 U.S.C. 12701 et seq.) (“NAHA”). On April 8, 2021, HUD allocated HOME-ARP funds to 651 grantees using the HOME formula established at 24 CFR 92.50 and 92.60. The HOME-ARP allocation amounts can be found here. III. ESTABLISHMENT OF HOME-ARP REQUIREMENTS ARP provides funds for homelessness and supportive services assistance under the HOME statute of Title II of NAHA (42 U.S.C. 12721 et seq.) and authorizes the Secretary of HUD to waive or specify alternative requirements for any provision of NAHA or regulation for the administration of the HOME-ARP program, except requirements related to fair housing, civil rights, nondiscrimination, labor standards, and the environment, upon a finding that the waiver 3 or alternative requirement is necessary to expedite or facilitate the use of HOME-ARP funds. Pursuant to ARP, the per-unit cost limits (42 U.S.C. 12742(e)), commitment requirements (42 U.S.C. 12748(g)), matching requirements (42 U.S.C. 12750), and set-aside for housing developed, sponsored, or owned by community housing development organizations (CHDOs) (42 U.S.C. 12771) in NAHA do not apply to HOME-ARP funds. This Notice describes the requirements applicable to a participating jurisdiction’s (PJ’s) use of HOME-ARP funds. Consolidated plan requirements for HOME are in title I of NAHA and 24 CFR part 91. HOME program regulations are in 24 CFR part 92. Except as described in ARP and this Notice, HOME statutory and regulatory provisions apply to a PJ’s use of HOME-ARP funds. Sections I-IX of this Notice describe the HOME-ARP requirements imposed on a PJ for the use of HOME-ARP funds to assist the qualifying populations through HOME-ARP projects or activities. The Appendix describes the waivers and alternative requirements imposed on PJs for the use of HOME-ARP funds and is included in any reference to “this Notice.” Specific citations in the Notice shall mean the statute or regulation cited, as may be revised by the Appendix to this Notice. PJs and insular areas must comply with all applicable statutory, regulatory, and alternative requirements, as described in this Notice, including the Appendix. IV. QUALIFYING POPULATIONS, TARGETING AND PREFERENCES ARP requires that funds be used to primarily benefit individuals and families in the following specified “qualifying populations.” Any individual or family who meets the criteria for these populations is eligible to receive assistance or services funded through HOME-ARP without meeting additional criteria (e.g., additional income criteria). All income calculations to meet income criteria of a qualifying population or required for income determinations in HOME- ARP eligible activities must use the annual income definition in 24 CFR 5.609 in accordance with the requirements of 24 CFR 92.203(a)(1). A. Qualifying Populations 1. Homeless, as defined in 24 CFR 91.5 Homeless (1), (2), or (3): (1) An individual or family who lacks a fixed, regular, and adequate nighttime residence, meaning: (i) An individual or family with a primary nighttime residence that is a public or private place not designed for or ordinarily used as a regular sleeping accommodation for human beings, including a car, park, abandoned building, bus or train station, airport, or camping ground; (ii) An individual or family living in a supervised publicly or privately operated shelter designated to provide temporary living arrangements (including congregate shelters, transitional housing, and hotels and motels paid for by charitable organizations or by federal, state, or local government programs for low-income individuals); or 4 (iii) An individual who is exiting an institution where he or she resided for 90 days or less and who resided in an emergency shelter or place not meant for human habitation immediately before entering that institution; (2) An individual or family who will imminently lose their primary nighttime residence, provided that: (i) The primary nighttime residence will be lost within 14 days of the date of application for homeless assistance; (ii) No subsequent residence has been identified; and (iii) The individual or family lacks the resources or support networks, e.g., family, friends, faith-based or other social networks needed to obtain other permanent housing; (3) Unaccompanied youth under 25 years of age, or families with children and youth, who do not otherwise qualify as homeless under this definition, but who: (i) Are defined as homeless under section 387 of the Runaway and Homeless Youth Act (42 U.S.C. 5732a), section 637 of the Head Start Act (42 U.S.C. 9832), section 41403 of the Violence Against Women Act of 1994 (42 U.S.C. 14043e-2), section 330(h) of the Public Health Service Act (42 U.S.C. 254b(h)), section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 2012), section 17(b) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(b)), or section 725 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11434a); (ii) Have not had a lease, ownership interest, or occupancy agreement in permanent housing at any time during the 60 days immediately preceding the date of application for homeless assistance; (iii) Have experienced persistent instability as measured by two moves or more during the 60-day period immediately preceding the date of applying for homeless assistance; and (iv) Can be expected to continue in such status for an extended period of time because of chronic disabilities, chronic physical health or mental health conditions, substance addiction, histories of domestic violence or childhood abuse (including neglect), the presence of a child or youth with a disability, or two or more barriers to employment, which include the lack of a high school degree or General Education Development (GED), illiteracy, low English proficiency, a history of incarceration or detention for criminal activity, and a history of unstable employment; 2. At risk of Homelessness, as defined in 24 CFR 91.5 At risk of homelessness: (1) An individual or family who: 5 (i) Has an annual income below 30 percent of median family income for the area, as determined by HUD; (ii) Does not have sufficient resources or support networks, e.g., family, friends, faith- based or other social networks, immediately available to prevent them from moving to an emergency shelter or another place described in paragraph (1) of the “Homeless” definition in this section; and (iii) Meets one of the following conditions: (A) Has moved because of economic reasons two or more times during the 60 days immediately preceding the application for homelessness prevention assistance; (B) Is living in the home of another because of economic hardship; (C) Has been notified in writing that their right to occupy their current housing or living situation will be terminated within 21 days after the date of application for assistance; (D) Lives in a hotel or motel and the cost of the hotel or motel stay is not paid by charitable organizations or by federal, State, or local government programs for low- income individuals; (E) Lives in a single-room occupancy or efficiency apartment unit in which there reside more than two persons or lives in a larger housing unit in which there reside more than 1.5 people per room, as defined by the U.S. Census Bureau; (F) Is exiting a publicly funded institution, or system of care (such as a health-care facility, a mental health facility, foster care or other youth facility, or correction program or institution); or (G) Otherwise lives in housing that has characteristics associated with instability and an increased risk of homelessness, as identified in the recipient's approved consolidated plan; (2) A child or youth who does not qualify as “homeless” under this section, but qualifies as “homeless” under section 387(3) of the Runaway and Homeless Youth Act (42 U.S.C. 5732a(3)), section 637(11) of the Head Start Act (42 U.S.C. 9832(11)), section 41403(6) of the Violence Against Women Act of 1994 (42 U.S.C. 14043e-2(6)), section 330(h)(5)(A) of the Public Health Service Act (42 U.S.C. 254b(h)(5)(A)), section 3(l) of the Food and Nutrition Act of 2008 (7 U.S.C. 2012(l)), or section 17(b)(15) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(b)(15)); or (3) A child or youth who does not qualify as “homeless” under this section but qualifies as “homeless” under section 725(2) of the McKinney-Vento Homeless Assistance Act (42 6 U.S.C. 11434a(2)), and the parent(s) or guardian(s) of that child or youth if living with her or him. 3. Fleeing, or Attempting to Flee, Domestic Violence, Dating Violence, Sexual Assault, Stalking, or Human Trafficking, as defined by HUD. For HOME-ARP, this population includes any individual or family who is fleeing, or is attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human trafficking. This population includes cases where an individual or family reasonably believes that there is a threat of imminent harm from further violence due to dangerous or life-threatening conditions that relate to violence against the individual or a family member, including a child, that has either taken place within the individual’s or family’s primary nighttime residence or has made the individual or family afraid to return or remain within the same dwelling unit. In the case of sexual assault, this also includes cases where an individual reasonably believes there is a threat of imminent harm from further violence if the individual remains within the same dwelling unit that the individual is currently occupying, or the sexual assault occurred on the premises during the 90-day period preceding the date of the request for transfer. Domestic violence, which is defined in 24 CFR 5.2003 includes felony or misdemeanor crimes of violence committed by: 1) A current or former spouse or intimate partner of the victim (the term “spouse or intimate partner of the victim” includes a person who is or has been in a social relationship of a romantic or intimate nature with the victim, as determined by the length of the relationship, the type of the relationship, and the frequency of interaction between the persons involved in the relationship); 2) A person with whom the victim shares a child in common; 3) A person who is cohabitating with or has cohabitated with the victim as a spouse or intimate partner; 4) A person similarly situated to a spouse of the victim under the domestic or family violence laws of the jurisdiction receiving HOME-ARP funds; or 5) Any other person against an adult or youth victim who is protected from that person's acts under the domestic or family violence laws of the jurisdiction. Dating violence which is defined in 24 CFR 5.2003 means violence committed by a person: 1) Who is or has been in a social relationship of a romantic or intimate nature with the victim; and 2) Where the existence of such a relationship shall be determined based on a consideration of the following factors: a. The length of the relationship; b. The type of relationship; and c. The frequency of interaction between the persons involved in the relationship. 7 Sexual assault which is defined in 24 CFR 5.2003 means any nonconsensual sexual act proscribed by Federal, Tribal, or State law, including when the victim lacks capacity to consent. Stalking which is defined in 24 CFR 5.2003 means engaging in a course of conduct directed at a specific person that would cause a reasonable person to: 1) Fear for the person’s individual safety or the safety of others; or 2) Suffer substantial emotional distress. Human Trafficking includes both sex and labor trafficking, as outlined in the Trafficking Victims Protection Act of 2000 (TVPA), as amended (22 U.S.C. 7102). These are defined as: 1) Sex trafficking means the recruitment, harboring, transportation, provision, obtaining, patronizing, or soliciting of a person for the purpose of a commercial sex act, in which the commercial sex act is induced by force, fraud, or coercion, or in which the person induced to perform such act has not attained 18 years of age; or 2) Labor trafficking means the recruitment, harboring, transportation, provision, or obtaining of a person for labor or services, through the use of force, fraud, or coercion for the purpose of subjection to involuntary servitude, peonage, debt bondage, or slavery. 4. Other Populations where providing supportive services or assistance under section 212(a) of NAHA (42 U.S.C. 12742(a)) would prevent the family’s homelessness or would serve those with the greatest risk of housing instability. HUD defines these populations as individuals and households who do not qualify under any of the populations above but meet one of the following criteria: (1) Other Families Requiring Services or Housing Assistance to Prevent Homelessness is defined as households (i.e., individuals and families) who have previously been qualified as “homeless” as defined in 24 CFR 91.5, are currently housed due to temporary or emergency assistance, including financial assistance, services, temporary rental assistance or some type of other assistance to allow the household to be housed, and who need additional housing assistance or supportive services to avoid a return to homelessness. (2) At Greatest Risk of Housing Instability is defined as household who meets either paragraph (i) or (ii) below: (i) has annual income that is less than or equal to 30% of the area median income, as determined by HUD and is experiencing severe cost burden (i.e., is paying more than 50% of monthly household income toward housing costs); 8 (ii) has annual income that is less than or equal to 50% of the area median income, as determined by HUD, AND meets one of the following conditions from paragraph (iii) of the “At risk of homelessness” definition established at 24 CFR 91.5: (A) Has moved because of economic reasons two or more times during the 60 days immediately preceding the application for homelessness prevention assistance; (B) Is living in the home of another because of economic hardship; (C) Has been notified in writing that their right to occupy their current housing or living situation will be terminated within 21 days after the date of application for assistance; (D) Lives in a hotel or motel and the cost of the hotel or motel stay is not paid by charitable organizations or by Federal, State, or local government programs for low-income individuals; (E) Lives in a single-room occupancy or efficiency apartment unit in which there reside more than two persons or lives in a larger housing unit in which there reside more than 1.5 persons reside per room, as defined by the U.S. Census Bureau; (F) Is exiting a publicly funded institution, or system of care (such as a health-care facility, a mental health facility, foster care or other youth facility, or correction program or institution); or (G) Otherwise lives in housing that has characteristics associated with instability and an increased risk of homelessness, as identified in the recipient's approved consolidated plan Veterans and Families that include a Veteran Family Member that meet the criteria for one of the qualifying populations described above are eligible to receive HOME-ARP assistance. B. Use of Funds to Benefit Qualifying Populations ARP states that funds must be used to primarily benefit the qualifying populations through the four eligible activities: (1) TBRA, (2) development and support of affordable housing, (3) provision of supportive services; and (4) acquisition and development of non-congregate shelter (NCS) units. Recognizing the urgent needs of individuals and families in qualifying populations, HUD is requiring that:  100% of HOME-ARP funds used by a PJ for TBRA, supportive services, and acquisition and development of non-congregate shelter units must benefit individuals and families in qualifying populations. Individuals and families in qualifying populations may be assisted by one or more of the HOME-ARP eligible activities, consistent with the requirements in this Notice.  Not less than 70 percent of affordable rental housing units acquired, rehabilitated, or constructed with HOME-ARP funds by a PJ must be occupied by households in the qualifying populations. Units that are not restricted to occupancy by qualifying populations are subject to income targeting and rent requirements established under the 9 HOME-ARP Rental Program rules and are only permitted in projects with rental units restricted for occupancy by qualifying populations. HUD recognizes that, because many households in the qualifying populations are unable to pay rents sufficient to cover unit operating costs, PJs and project owners should attempt to obtain Federal or state project-based rental subsidies, if available. Since project-based rental subsidies can be difficult to secure, additional flexibility may be necessary to structure and underwrite projects so that they remain both affordable and financially viable. HUD is providing PJs with additional flexibilities in Section VI.B. to structure and underwrite HOME-ARP rental projects so they remain financially viable during the minimum compliance period. One of these flexibilities is permitting up to 30 percent of HOME-ARP rental housing units funded by a PJ to be occupied by low-income households. PJs are encouraged to use this flexibility only when it is required to facilitate development of a HOME-ARP rental project. PJs must determine and document that households meet the definition of a qualifying population or, for the portion of HOME-ARP rental units not restricted to these populations, that households are low-income. C. Preferences Among Qualifying Populations, Referral Methods, and Subpopulations 1. Preferences ARP establishes the qualifying populations that are eligible for assistance with HOME-ARP funds. A PJ may establish reasonable preferences among the qualifying populations to prioritize applicants for HOME-ARP projects or activities based on the PJ’s needs and priorities, as described in its HOME-ARP allocation plan. For example, a PJ may set a preference among qualifying individuals and families for a HOME-ARP non-congregate shelter for individuals and families who are homeless; fleeing or attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking; and veterans and families with a veteran family member that meet the criteria of one of these prior qualifying populations, consistent with its HOME-ARP allocation plan. The PJ must comply with all applicable fair housing, civil rights, and nondiscrimination requirements, including but not limited to those requirements listed in 24 CFR 5.105(a) when applying preferences through its referral methods. Persons who are eligible for a preference must have the opportunity to participate in all HOME-ARP activities of the PJ in which they are eligible under this Notice, including activities that are not separate or different, and cannot be excluded because of any protected characteristics or preferential status. Targeted assistance: If HOME-ARP funds are used for TBRA, the PJ may establish a preference for individuals with special needs or persons with disabilities among the HOME- ARP qualifying populations. Within the qualifying populations, participation may be limited to persons with a specific disability only, if necessary, to provide effective housing, aid, benefit, or services that would be as effective as those provided to others in accordance with 24 CFR 8.4(b)(1)(iv). The PJ may also provide a preference for a specific category of individuals with disabilities (e.g., persons with HIV/AIDS or chronic mental illness) within the qualifying 10 populations only if the specific category is identified in the PJ’s HOME-ARP allocation plan as having unmet need and the preference is needed to narrow the gap in benefits and services received by such persons. 2. Referral Methods for Projects or Activities A PJ may use the referral methods described below to administer HOME-ARP assistance to qualifying individuals and families. Regardless of the referral method used by the PJ, HUD holds the PJ responsible for determining and documenting that beneficiaries meet the definition of a qualifying population or, for the portion of HOME-ARP rental units not restricted to qualifying populations, that beneficiaries are low-income. A PJ may use the coordinated entry or coordinated entry process (CE) of a continuum of care (CoC) for referrals for projects and activities as described below. Under 24 CFR 578.3, a CE is a centralized or coordinated process designed to coordinate program participant intake assessment and provision of referrals within a defined area. HUD requires each CoC to establish and operate a CE with the goal of increasing the efficiency of local crisis response systems and improving fairness and ease of access to resources, including mainstream resources. A PJ may permit a CoC CE to collect information and documentation required to determine whether an individual or family meets the criteria of a HOME-ARP qualifying population at any point in the coordinated entry process, (i.e., after or concurrently with the assessment and intake processes) as long as that information is not used to rank a person for HOME-ARP assistance other than as specified by the preferences or method of prioritization established by the PJ, in accordance with HOME-ARP requirements. If the PJ uses CE, the PJ cannot require HOME- ARP victim service providers to use the CE but may permit them to do so. The PJ must comply with all applicable nondiscrimination and equal opportunity laws and requirements listed in 24 CFR 5.105(a) and any other applicable fair housing and civil rights laws and requirements when using the following referral methods: i. Use of Expanded CE in HOME-ARP Under this referral method, a PJ may use a CE established by a CoC operating within its boundaries for one or more projects or activities if the CE accepts all HOME-ARP qualifying populations eligible for those activities or projects, in accordance with the preferences and prioritization, if any, established or approved by the PJ in its HOME-ARP allocation plan and imposed through the PJ’s written agreements. Before using a CoC’s CE, PJs should consider whether the CE covers the same service area as the HOME-ARP project or activity that would use that CE. At a minimum, the PJ must establish policies and procedures that describe the relationship of the geographic area(s) served by the project or activity to the geographic area(s) covered by the CoC CE and address how the CE will provide access and implement uniform referral processes in situations where a project’s geographic area(s) is broader than the geographic area(s) covered by the CE. 11 The PJ must require a project or activity to use CE along with other referral methods (as provided in section ii below) or to use only a project/activity waiting list (as provided in section iii below) if: 1. the CE does not have a sufficient number of qualifying individuals and families to refer to the PJ for the project or activity; 2. the CE does not include all HOME-ARP qualifying populations; or, 3. the CE fails to provide access and implement uniform referral processes in situations where a project’s geographic area(s) is broader than the geographic area(s) covered by the CE. ii. Use of CE with Other Referral Methods The PJ may use a CoC CE with additional referrals from outside organizations or project- specific waiting lists consistent with HOME-ARP requirements. If using this referral method, the PJ must establish or approve any preferences or prioritization criteria applied by a CoC CE or other referral sources. The PJ may also use a waiting list to receive referrals from a CoC CE and other referral agencies for a project or activity, where a CoC CE or referral agency refers an applicant that is placed on the waiting list for that project or activity in chronological order. If applicable, a PJ must establish policies and procedures for applying a PJ’s established preferences and method of prioritization, if any, when accepting direct referrals from a CoC CE and other referral agencies and must document that such the policies and procedures were followed for each applicant served. iii. Use of a Project/Activity Waiting List The PJ may establish a waiting list for each HOME-ARP project or activity. All qualifying individuals or families must have access to apply for placement on the waiting list for an activity or project. Qualifying individuals or families on a waiting list must be accepted in accordance with the PJ’s preferences, if any, consistent with this Notice or, if the PJ did not establish preferences, in chronological order, insofar as practicable. 3. Limiting Eligibility to Subpopulations PJs must follow all applicable fair housing, civil rights, and nondiscrimination requirements, including but not limited to those requirements listed in 24 CFR 5.105(a). This includes, but is not limited to, the Fair Housing Act, Title VI of the Civil Rights Act, section 504 of Rehabilitation Act, HUD’s Equal Access Rule, and the Americans with Disabilities Act, as applicable. HOME-ARP rental housing or NCS may be limited to a specific subpopulation of a qualifying population identified in Section IV.A. of this Notice, so long as admission does not discriminate against any protected class under federal nondiscrimination laws in 24 CFR 5.105 (e.g., the housing may be limited to homeless households and at risk of homelessness households, 12 veterans and their families, victims of domestic violence, dating violence, sexual assault, stalking or human trafficking and their families). Recipients may limit admission to or provide a preference for HOME-ARP rental housing or NCS to households who need the specialized supportive services that are provided (e.g., domestic violence services). However, no otherwise eligible individuals with disabilities or families including an individual with a disability who may benefit from the services provided may be excluded on the grounds that they do not have a particular disability. Consistent with the statutory authority under ARP, HOME-ARP NCS may be converted to permanent housing under the CoC program or used as shelters under the ESG program, when all program and fair housing and nondiscrimination requirements are met. As such, HOME-ARP NCS may need to limit eligibility to households that are homeless and/or at risk of homelessness if the shelter will be converted to permanent housing under the CoC program or used as an emergency shelter in the ESG program. V. HOME-ARP ALLOCATION PLAN PJs develop annual action plans as part of their application for HOME funding. To receive its HOME-ARP funds, a PJ must engage in consultation and public participation processes and develop a HOME-ARP allocation plan that meets the requirements established in this section of the Notice and submit it to HUD as a substantial amendment to its Fiscal Year 2021 annual action plan. HUD is using the waiver and alternative requirement authority provided by ARP to establish requirements for the HOME-ARP allocation plan in this Notice. The HOME-ARP allocation plan must describe how the PJ intends to distribute HOME-ARP funds, including how it will use these funds to address the needs of HOME-ARP qualifying populations. A PJ’s HOME-ARP allocation plan must include:  A summary of the consultation process and results of upfront consultation;  A summary of comments received through the public participation process and a summary of any comments or recommendations not accepted and the reasons why;  A description of HOME-ARP qualifying populations within the jurisdiction;  An assessment of unmet needs of each qualifying population;  An assessment of gaps in housing and shelter inventory, homeless assistance and services, and homelessness prevention service delivery system;  A summary of the planned use of HOME-ARP funds for eligible activities based on the unmet needs of the qualifying populations;  An estimate of the number of housing units for qualifying populations the PJ will produce or preserve with its HOME-ARP allocation; and  A description of any preferences for individuals and families in a particular qualifying population or a segment of a qualifying population. All the above required elements of the HOME-ARP allocation plan shall be part of the FY 2021 annual action plan for purposes of the HOME-ARP program. Consequently, PJs are not required to amend their consolidated plans. 13 A. Consultation Before developing its HOME-ARP allocation plan, a PJ must consult with agencies and service providers whose clientele include the HOME-ARP qualifying populations to identify unmet needs and gaps in housing or service delivery systems. In addition, a PJ should use consultation to determine the HOME-ARP eligible activities currently taking place within its jurisdiction and potential collaborations for administering HOME-ARP. This consultation will provide a basis for the PJ’s strategy for distributing HOME-ARP funds for eligible activities to best meet the needs of qualifying populations. At a minimum, a PJ must consult with the CoC(s) serving the jurisdiction’s geographic area, homeless and domestic violence service providers, veterans’ groups, public housing agencies (PHAs), public agencies that address the needs of the qualifying populations, and public or private organizations that address fair housing, civil rights, and the needs of persons with disabilities. State PJs are not required to consult with every PHA or CoC within the state’s boundaries; however, local PJs must consult with all PHAs (including statewide or regional PHAs) and CoCs serving the jurisdiction. In its plan, a PJ must describe its consultation process, list the organizations consulted, and summarize the feedback received from these entities. B. Public Participation PJs must provide for and encourage citizen participation in the development of the HOME-ARP allocation plan. Before submitting the HOME-ARP allocation plan to HUD, PJs must provide residents with reasonable notice and an opportunity to comment on the proposed HOME-ARP allocation plan of no less than 15 calendar days. The PJ must follow its adopted requirements for “reasonable notice and an opportunity to comment” for plan amendments in its current citizen participation plan. In addition, PJs must hold at least one public hearing during the development of the HOME-ARP allocation plan prior to submitting the plan to HUD. For the purposes of HOME-ARP, PJs are required to make the following information available to the public:  The amount of HOME-ARP funds the PJ will receive.  The range of activities the PJ may undertake. A PJ must consider any comments or views of residents received in writing, or orally at a public hearing, when preparing the HOME-ARP allocation plan. In its plan, a PJ must describe its public participation process, including any efforts made to broaden public participation. In its plan, the PJ must also include a summary of comments and recommendations received through the public participation process and any comments or recommendations not accepted and the reasons why. Throughout the HOME-ARP allocation plan public participation process, the PJ must follow its applicable fair housing and civil rights requirements and procedures for effective communication, accessibility and reasonable accommodation for persons with disabilities and providing meaningful access to participation by limited English proficient (LEP) residents that are in its current citizen participation plan as required by 24 CFR 91.105 and 91.115. 14 C. HOME-ARP Allocation Plan Requirements The HOME-ARP allocation plan must describe the distribution of HOME-ARP funds and the process for soliciting applications and/or selecting eligible projects. The plan must also identify any preferences being established for eligible activities or projects. However, PJs are not required to identify specific projects that will be funded in the HOME-ARP allocation plan. 1. Needs Assessment and Gaps Analysis: A PJ must evaluate the size and demographic composition of qualifying populations within its boundaries and assess the unmet needs of those populations. In addition, a PJ must identify any gaps within its current shelter and housing inventory as well as the service delivery system. A PJ should use current data, including point in time count, housing inventory count, or other data available through CoCs, and consultations with service providers to quantify the individuals and families in the qualifying populations and their need for additional housing, shelter, or services. A PJ should identify and consider the current resources available to assist qualifying populations, including congregate and non-congregate shelter units, supportive services, TBRA, and affordable and permanent supportive rental housing. A PJ must consider the housing and service needs of qualifying populations, including but not limited to:  Sheltered and unsheltered homeless populations;  Those currently housed populations at risk of homelessness;  Other families requiring services or housing assistance to prevent homelessness; and  Those at greatest risk of housing instability or in unstable housing situations. A PJ should include data in its HOME-ARP allocation plan that describes the qualifying populations. In addition, a PJ must include a narrative description that:  Identifies the characteristics of housing associated with instability and an increased risk of homelessness if the PJ will include such conditions under HUD’s definition of “other populations” as established in Section IV.A.4.2.ii.G. of this Notice.  Identifies the PJ’s priority needs for qualifying populations; and,  Explains how the PJ determined the level of need and gaps in its shelter and housing inventory and service delivery systems. 2. HOME-ARP Activities: The HOME-ARP allocation plan must describe how a PJ will distribute HOME-ARP funds in accordance with its priority needs. The plan must describe the PJ’s method for soliciting applications for funding and/or selecting developers, service providers, subrecipients and/or contractors and whether the PJ will administer eligible activities directly. If the PJ will provide any portion of its HOME-ARP administrative funds to a subrecipient or contractor prior to HUD’s acceptance of the PJ’s HOME-ARP allocation plan because the subrecipient or contractor is responsible for the administration of the PJ’s entire HOME-ARP grant, the plan must identify the subrecipient or contractor and describe its role and responsibilities in administering all of the PJ’s HOME-ARP program. PJs must indicate in the HOME-ARP allocation plan the amount of HOME-ARP funding that is planned for each eligible HOME-ARP activity type, including administrative and 15 planning activities. In addition, a PJ must demonstrate that any planned funding for nonprofit organization operating assistance, as described in Section VI.F, nonprofit capacity building, and administrative costs is within HOME-ARP limits. PJs must also include a narrative description about how the characteristics of its shelter and housing inventory, service delivery system, and the needs identified in the PJ’s gap analysis provided a rationale for its plan to fund eligible activities. 3. HOME-ARP Production Housing Goals: The HOME-ARP allocation plan must estimate the number of affordable rental housing units for qualifying populations that a PJ will produce or support with its HOME-ARP allocation. The plan must also include a narrative about the specific affordable rental housing production goal that the PJ hopes to achieve and describe how it will address the PJ’s priority needs. 4. Preferences: The HOME-ARP allocation plan must identify whether the PJ intends to give preference to one or more qualifying populations or a subpopulation within one or more qualifying populations for any eligible activity or project. For example, PJs may include a preference for:  homeless individuals and families as defined in the ESG and CoC programs;  individuals with special needs or persons with disabilities among qualifying individuals and families;  a specific category of qualifying individuals and families (e.g., chronically homeless as defined in 24 CFR 91.5). PJs are not required to describe specific projects to which the preferences will apply in the HOME-ARP allocation plan. However, a PJ must explain how the use of a preference or method of prioritization will address the unmet need or gap in benefits and services received by individuals and families in the qualifying population or category of qualifying population, consistent with the PJ’s needs assessment and gap analysis. The PJ must also describe how it will still address the unmet needs or gaps in benefits and services of the other qualifying populations that are not included in a preference through the use of HOME- ARP funds. Preferences cannot violate any applicable fair housing, civil rights, and nondiscrimination requirements, including but not limited to those requirements listed in 24 CFR 5.105(a). The PJ must comply with all applicable nondiscrimination and equal opportunity laws and requirements listed in 24 CFR 5.105(a) and any other applicable fair housing and civil rights laws and requirements when establishing preferences or methods of prioritization. 5. HOME-ARP Refinancing Guidelines: If a PJ intends to use HOME-ARP funds to refinance existing debt secured by multifamily rental housing that is being rehabilitated with HOME-ARP funds, it must state its refinancing guidelines in accordance with 24 CFR 92.206(b)(2). The guidelines must describe the conditions under with the PJ will refinance existing debt for a HOME-ARP rental project. At a minimum, the guidelines must:  Establish a minimum level of rehabilitation per unit or a required ratio between rehabilitation and refinancing to demonstrate that rehabilitation of HOME-ARP rental housing is the primary eligible activity. 16  Require a review of management practices to demonstrate that disinvestment in the property has not occurred; that the long-term needs of the project can be met; and that the feasibility of serving qualified populations for the minimum compliance period can be demonstrated.  State whether the new investment is being made to maintain current affordable units, create additional affordable units, or both.  Specify whether the required compliance period is the minimum 15 years or longer.  State that HOME-ARP funds cannot be used to refinance multifamily loans made or insured by any federal program, including CDBG. 6. Substantial Amendments to the HOME-ARP Allocation Plan: PJs must make a substantial amendment to the HOME-ARP allocation plan for changes in the method of distributing funds; to carry out an activity not previously described in the plan; or, to change the purpose, scope, location, or beneficiaries of an activity, including new preferences not previously described in the plan. In addition, the requirements for substantial amendments at 24 CFR 92.63 apply to the HOME-ARP allocation plan for insular areas. PJs are not required to make a substantial amendment to describe individual projects selected for funding if the eligible activity is included in the PJ’s plan. PJs must make the proposed substantial amendment public and provide for a 15-day public comment period prior to submission. Upon completion of the public comment period, PJs must submit substantial amendments to HUD in accordance with the process for submitting the HOME-ARP allocation plan as described in Section V.D. 7. Certifications and SF-424: PJs must submit the required certifications in accordance with the requirements in this Notice, including the following: a. Affirmatively Further Fair Housing; b. Uniform Relocation Assistance and Real Property Acquisition Policies Act and Anti- displacement and Relocation Assistance Plan; c. Anti-Lobbying; d. Authority of Jurisdiction; e. Section 3; and, f. HOME-ARP specific certification that a PJ will only use HOME-ARP funds consistent with ARP and the HOME-ARP Notice for eligible activities and eligible costs. PJs must also submit the SF-424, SF-424B, and SF-424D with the HOME-ARP allocation plan. D. Submission and Review Process 1. HOME-ARP Submission and the eCon Planning Suite: Upon completion of the HOME- ARP allocation plan, a PJ must submit the HOME-ARP allocation plan to HUD. To submit the HOME-ARP allocation plan, PJs must follow the process in IDIS to make an amendment to the Fiscal Year (FY) 2021 annual action plan. Once the FY 2021 annual action plan is reopened, a PJ must upload a Microsoft Word or PDF version of the plan as an attachment next to the “HOME-ARP allocation plan” option on the AD-26 screen (for 17 PJs whose FY. 2021 annual action plan is a Year 2-5 annual action plan) or the AD-25 screen (for PJs whose FY 2021 annual action plan is a Year 1 annual action plan that is part of the 2021 consolidated plan), unless instructed by HUD to follow a different submission procedure. PJs are not required to make any other edits to the FY 2021 annual action plan or applicable consolidated plan screens in the eCon Planning Suite. For more information on how to upload an attachment in the eCon Planning Suite, PJs can refer to the eCon Planning Suite Desk Guide. 2. HUD Review of the HOME-ARP Allocation Plan: The PJ must submit its HOME-ARP allocation plan to HUD for review in accordance with 24 CFR 91.500, as revised by this Notice. Unless instructed otherwise by HUD, the HOME-ARP allocation plan is received by HUD when the SF-424 is submitted electronically, which means that it is uploaded in the eCon Planning Suite as an attachment on AD-25 or AD-26 screen, as applicable, and the action plan status is changed to “Submitted for Review.” HUD will review a PJ’s HOME- ARP allocation plan to determine that it is:  Substantially complete, and  Consistent with the purposes of ARP. HUD may disapprove a PJ’s HOME-ARP allocation plan in accordance with 24 CFR 91.500(b). HUD may also disapprove a HOME-ARP allocation plan or a portion of a plan if HUD determines that the plan is inconsistent with the purposes of ARP or substantially incomplete. A PJ’s plan is inconsistent with ARP if it allocates HOME-ARP funds for uses other than a HOME-ARP eligible activity, as described in this Notice. A PJ’s HOME-ARP allocation plan is substantially incomplete if:  The PJ does not complete the required public participation or consultation or fails to describe those efforts in the plan;  The PJ fails to include the required elements outlined in this Notice, including the amount of HOME-ARP funds for each eligible HOME-ARP activity type;  The PJ fails to identify and describe the responsibilities of the subrecipient or contractor administering all of its HOME-ARP award, if applicable; or,  HUD rejects the PJ’s HOME-ARP certification as inaccurate. In accordance with section 105(c) of NAHA (42 U.S.C. 12705(c)) and 24 CFR 91.500(a), if the PJ’s HOME-ARP allocation plan is not disapproved within 45 days, then the plan is deemed approved 45 days after HUD receives the plan, and HUD shall notify the PJ that the plan is accepted. If HUD determines that the plan is substantially incomplete or that the plan is inconsistent with ARP, HUD will notify the PJ in writing with the reasons for disapproval, in accordance with 24 CFR 91.500(c). If a PJ’s plan is disapproved, the PJ may revise or resubmit the plan for HUD review within 45 days after the first notification of disapproval. HUD will respond to accept or disapprove the resubmitted plan within 30 days of receiving the revisions or resubmission. Once HUD notifies a PJ that the plan is accepted, the PJ must make the final HOME-ARP allocation plan available to the public in accordance with the same requirements in the PJ’s 18 current citizen participation plan that are followed to make the PJ’s adopted consolidated plan and substantial amendments available to the public, including the availability of materials in a form accessible to persons with disabilities, and translated materials in different languages to accommodate LEP persons, upon request. 3. HUD Review of the HOME-ARP Allocation Plan for Insular Areas: In addition to the standards for review described in Section V.D.2, HUD will review an insular area’s HOME- ARP allocation plan in accordance with 24 CFR 92.62. If HUD cannot make a determination based on the information submitted that the HOME-ARP allocation plan complies with HOME-ARP allocation plan requirements, or if the eligible activities described in the plan are not within the insular area’s management capability as demonstrated by past performance in housing and community development programs, HUD will notify the insular area within 30 days of receipt of the HOME-ARP allocation plan that supporting documentation is needed. The insular area will have a mutually agreed upon period to submit the necessary supporting information or to revise the eligible activities in its HOME-ARP allocation plan. VI. ELIGIBLE ACTIVITIES A. Administration and Planning The PJ may expend, for payment of reasonable administrative and planning costs, up to 15 percent of its HOME-ARP allocation. Reasonable administrative and planning costs for the HOME-ARP program include: 1. Reasonable costs of overall HOME-ARP program management, coordination, monitoring, and evaluation. Such HOME-ARP costs include, but are not limited to, necessary expenditures for the following: a. Salaries, wages, and related costs of the PJ’s staff. If a PJ charges costs to this category, the PJ may either include the entire salary and related costs allocable to the HOME-ARP program of each person whose primary responsibilities with regard to the HOME-ARP program involves program administration assignments, or the prorated share of the salary, wages, and related costs of each person whose job includes any program administrative assignments. A PJ may only use one of these two methods. Program administration includes: i. Developing systems and schedules for complying with HOME-ARP program requirements, including systems to prevent a duplication of benefits among beneficiaries of HOME-ARP activities; ii. Developing interagency agreements and agreements with entities receiving HOME-ARP funds; iii. Monitoring HOME-ARP activities for progress and compliance with HOME- ARP program requirements; iv. Preparing HOME-ARP reports and other documents related to the HOME-ARP program for submission to HUD; 19 v. Coordinating the resolution of audit and monitoring findings on HOME-ARP activities; vi. Evaluating HOME-ARP program results against stated objectives in the HOME- ARP allocation plan, and vii. Managing or supervising persons whose primary responsibilities with regard to the HOME-ARP program include such assignments as those described above. b. Travel costs incurred for official business in carrying out the HOME-ARP program. c. Administrative services performed under third party contracts or agreements, including such services as general legal services, accounting services, and audit services. d. Other costs for goods and services required for administering the HOME-ARP program, such as: rental or purchase of equipment, insurance, information systems necessary to track and implement beneficiaries of HOME-ARP activities in accordance with the requirements of this Notice, utilities, office supplies, and rental and maintenance (but not purchase) of office space. e. Costs of administering HOME-ARP TBRA and HOME-ARP supportive services programs. 2. Staff and overhead costs of the PJ directly related to carrying out a HOME-ARP project, in accordance with 24 CFR 92.207(b). 3. The provision of information and other resources to residents and citizen organizations participating in the planning, implementation, or assessment of projects being assisted with HOME-ARP funds. 4. Activities to affirmatively further fair housing (AFFH) in accordance with 24 CFR 5.151 and the PJ’s certification as required under this Notice and 24 CFR 5.152. The AFFH definition in HUD’s Interim Final Rule entitled, “Restoring Affirmatively Furthering Fair Housing Definitions and Certifications” (86 FR 30779, June 10, 2021), as amended, at 24 CFR 5.151, and the AFFH certification requirement, at 24 CFR 5.152, available at https://www.federalregister.gov/documents/2021/06/10/2021-12114/restoring-affirmatively- furthering-fair-housing-definitions-and-certifications. 5. Indirect costs may be charged to the HOME-ARP program under a cost allocation plan prepared in accordance with 2 CFR part 200, subpart E, as amended. 6. Preparation of the HOME-ARP allocation plan as required in this Notice. Preparation includes the costs of public hearing, consultations, and publications. 7. Costs of complying with the applicable Federal requirements in 24 CFR part 92, subpart H. Project-specific environmental review costs may be charged as administrative or project costs in accordance with 24 CFR 92.206(d)(8) and is at the discretion of the PJ. 20 Funds available under the HOME-ARP appropriation for administration and planning may not be used to pay costs attributable to the regular HOME Program. PJs may provide all or a portion of its HOME-ARP administrative funds to subrecipients and contractors that are administering activities on behalf of the PJ (e.g., CoC entity, other non- Federal entity), in accordance with the requirements in this Notice. However, from the obligation date of the HOME-ARP funds in the HOME-ARP Grant Agreement and prior to HUD’s acceptance of the PJ’s HOME-ARP allocation plan, a subrecipient or contractor to the PJ may only incur and expend HOME-ARP funds for eligible administrative and planning costs if the subrecipient or contractor is responsible for the use of the PJ’s entire HOME-ARP award and has executed a HOME-ARP written agreement that complies with 24 CFR 92.504 and this Notice. The PJ must also identify the subrecipient or contractor administering the PJ’s entire HOME-ARP award and describe the subrecipient or contractor’s responsibilities in the PJ’s HOME-ARP allocation plan. All costs must comply with the Cost Principles contained in subpart E of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 CFR part 200, as amended (Uniform Administrative Requirements). Once HUD obligates the HOME-ARP funds, as described in Section VIII.C.2 of this Notice, the PJ may incur and expend up to 5 percent of its HOME-ARP allocation on eligible administrative and planning costs, as described in this section and 24 CFR 92.207. Before HUD’s acceptance of the PJ’s HOME-ARP allocation plan, the PJ is only permitted to incur and expend HOME-ARP funds on eligible administrative and planning costs. If the PJ does not submit a HOME-ARP allocation plan or if the PJ’s plan is not accepted within a reasonable period of time, as determined by HUD, all HOME-ARP administrative and planning costs incurred by the PJ will be ineligible costs and any HOME-ARP funds expended by the PJ must be repaid to the PJ’s HOME Investment Trust Fund Treasury account, in accordance with guidance issued by HUD. Moreover, if the PJ’s HOME-ARP allocation plan does not identify or include a description of the responsibilities of the subrecipient or contractor that is responsible for the PJ’s entire HOME-ARP award, if applicable, the administrative and planning costs incurred or expended by the subrecipient or contractor will also be ineligible and any HOME-ARP funds expended by the PJ’s subrecipient or contractor must be repaid to the PJ’s HOME Investment Trust Fund Treasury account, in accordance with guidance from HUD. B. HOME-ARP Rental Housing HOME-ARP funds may be used to acquire, rehabilitate, or construct affordable rental housing primarily for occupancy by households of individuals and families that meet the definition of one or more of the qualifying populations described in Section IV.A of this Notice (“qualifying households”). Unlike the regular HOME Program, which targets HOME-assisted rental units based on tenant income, 70 percent of all HOME-ARP units will admit households based only upon their status as qualifying households. This complicates the underwriting and operation of projects that include HOME-ARP units. As a result, the requirements for HOME-ARP rental housing provide significant flexibilities to enable HOME-ARP rental projects to remain 21 financially viable and affordable for the qualifying populations throughout the minimum compliance period. Eligible HOME-ARP rental housing includes “housing” as defined at 24 CFR 92.2, including but not limited to manufactured housing, single room occupancy (SRO) units, and permanent supportive housing. Emergency shelters, hotels, and motels (including those currently operating as non-congregate shelter), facilities such as nursing homes, residential treatment facilities, correctional facilities, halfway houses, and housing for students or dormitories do not constitute housing in the HOME-ARP program. However, HOME-ARP funds may be used to acquire and rehabilitate such structures into HOME-ARP rental housing. Developing financially feasible rental housing for qualifying households is challenging in the absence of project-based rental assistance. Most HOME-assisted rental projects rely on tenant rents to cover all or a portion of the debt service and project operating costs. Most HOME-ARP qualifying households will be unable to pay a rent that covers allocated debt service or operating costs, requiring PJs to use other techniques to determine that HOME-ARP units are affordable and that projects containing HOME-ARP units are sustainable throughout the minimum compliance period. PJs are encouraged to work with local PHAs and other state or local agencies to obtain project-based rental assistance for units funded with HOME-ARP. In the absence of such project-based rental assistance, the HOME-ARP units for qualifying households may require substantial capital investment through HOME-ARP and other Federal, state, local, or private sources to eliminate debt service on the units. ARP suspended the maximum per-unit subsidy limit for HOME-ARP units, enabling HOME-ARP funds to pay the entire cost to acquire, rehabilitate and/or construct the HOME-ARP rental units, eliminating the need for the HOME-ARP units to support debt. In mixed-income developments, revenue from market rate or higher income-restricted units may also provide an internal subsidy to cover a portion of the operating costs of HOME-ARP units. To address these challenges and maintain affordability, HUD is using its HOME-ARP statutory authority to:  Establish alternative rent requirements to 24 CFR 92.252(b) and extend an owner’s ability to charge the maximum rent permissible under a rental assistance program (to units occupied by recipients of tenant-based rental assistance (e.g., Housing Choice Vouchers, HOME TBRA, HOME-ARP TBRA).  Establish a minimum compliance period of 15 years for all HOME-ARP rental units irrespective of the amount of subsidy per unit or whether the units are acquired, rehabilitated, and/or newly constructed.  Permit the use of HOME-ARP funds to provide ongoing operating cost assistance or capitalize a project operating cost assistance reserve to address operating deficits of the HOME-ARP units restricted for qualifying households during the compliance period.  Allow not more than 30 percent of the total number of rental units assisted with HOME- ARP funds by the PJ to be restricted to households that are low-income as defined in 24 CFR 92.2 (“low-income households”). These units may only be located in projects containing HOME-ARP units restricted for qualifying households. The HOME-ARP rental units occupied by low-income households must operate under the regulations applicable to HOME rental units at 24 CFR 92.252 (i.e., be occupied by low-income 22 households and bearing a rent not greater than the lesser of a. the Fair Market Rent for existing housing for comparable units in the area, as established by HUD, or b. a rent equal to 30 percent of the adjusted income of a family with annual income at 65 percent of median income for the area, as determined by HUD, with adjustments for the number of bedrooms in the unit). 1. Targeting and Occupancy Requirements: ARP requires HOME-ARP activities to primarily benefit households in the qualifying populations. To improve the feasibility and maintain the long-term viability of projects with HOME-ARP rental units for qualifying households, a PJ may invest HOME-ARP funds in units that are not restricted for occupancy solely for qualifying populations as described in this section. Specifically, participating jurisdictions must comply with the following requirements: a. Targeting: HOME-ARP funds can only be invested in units restricted for qualifying households or low-income households as follows: i. Not less than 70 percent of the total number of rental units assisted with HOME- ARP funds by the PJ must be restricted for occupancy by households that are qualifying households at the time of the household’s initial occupancy; and, ii. Not more than 30 percent of the total number of rental units assisted with HOME- ARP funds by the PJ may be restricted to low-income households. These rental units do not have to be restricted for occupancy by qualifying households, however rental units restricted to low-income households are only permitted in projects that include HOME-ARP units for qualifying households. b. Occupancy Requirements: i. Qualifying Households. Units restricted for occupancy by qualifying households must be occupied by households that meet the definition of a qualifying population at the time of admission to the HOME-ARP unit. A qualifying household after admission retains its eligibility to occupy a HOME-ARP rental unit restricted for qualifying populations, irrespective of the qualifying household’s changes in income or whether the household continues to meet the definition of a qualifying population. As such, a unit restricted for a qualifying household remains in compliance with the HOME-ARP unit restriction as long as the unit is occupied by a qualifying household that met the definition of a qualifying population at the time of admission. ii. Low-Income Households. At initial occupancy, units restricted for low-income households must be occupied by households that meet the definition of low-income in 24 CFR 92.2. If a tenant’s income increases above the applicable low-income limit during the compliance period, the unit will be considered temporarily out of compliance. Noncompliance requires the PJ to take action in accordance with the rent and unit mix requirements in Sections VI.B.15 and VI.B.17 of this Notice, respectively. 23 2. Eligible Activities: A PJ may use HOME-ARP funds for acquisition, construction, and rehabilitation, including reconstruction as defined in 24 CFR 92.2, of affordable rental housing for qualifying and low-income households. Acquisition of vacant land or demolition must be undertaken only with respect to a particular housing project intended to provide HOME-ARP rental housing within the timeframes provided in Section VI.B. of this Notice. A HOME-ARP rental project must meet the definition of project in 24 CFR 92.2. HOME-ARP funds may be used to assist one or more units in a project. Only the eligible development costs of the HOME-ARP units may be charged to the HOME-ARP program. Cost allocation in accordance with 24 CFR 92.205(d)(1) is required if the assisted and non- assisted units are not comparable. After project completion, the number of HOME-ARP units in a project cannot be reduced. During the HOME-ARP minimum compliance period and prior to the end of the HOME-ARP budget period, a PJ may invest additional HOME- ARP funds to provide operating cost assistance but is prohibited from investing additional HOME-ARP funds for capital costs except within the 12 months after project completion. A qualifying household admitted to a HOME-ARP rental unit may still receive HOME-ARP supportive services or TBRA in accordance with the requirements in this Notice. 3. Forms of Assistance: The PJ may invest HOME-ARP funds in accordance with the eligible forms of assistance described in 24 CFR 92.205(b). Each PJ has the right to establish the terms of assistance, subject to the HOME-ARP requirements described in this Notice. 4. Minimum Amount of Assistance: The minimum amount of HOME-ARP funds that must be invested in a rental housing project is $1,000 times the number of HOME-ARP-assisted units in the project as established in 24 CFR 92.205(c). 5. Eligible Costs: HOME-ARP funds may be used to pay for up to 100% of the following eligible costs associated with the acquisition, development, and operation of HOME-ARP rental units: a. Development hard costs – defined in 24 CFR 92.206(a). b. Refinancing – the cost to refinance existing debt secured by a rental project that is being rehabilitated with HOME-ARP funds in accordance with 24 CFR 92.206(b)(2) and the PJ’s HOME-ARP refinancing guidelines, as stated in their HOME-ARP Allocation Plan. c. Acquisition – the costs of acquiring improved or unimproved real property. d. Related soft costs – defined in 24 CFR 92.206(d). e. Relocation costs – as defined in 24 CFR 92.206(f), 24 CFR 92.353, and described in this Notice. f. Costs relating to payment of loans – If the HOME-ARP funds are not used to directly pay a cost specified in this HOME-ARP rental housing section, but are used to pay off a 24 construction loan, bridge financing loan, or guaranteed loan, the payment of principal and interest for such loan is an eligible cost only if: (1) the loan was used for eligible costs specified in this HOME-ARP rental housing section, and (2) the HOME-ARP funds are part of the original financing for the project and the project meets the requirements of this Notice. g. Operating Cost Assistance – A PJ may pay ongoing operating cost assistance or capitalize an operating cost assistance reserve for HOME-ARP-assisted units restricted for occupancy by qualifying populations in a project where the PJ determines in its underwriting that the reserve is necessary to maintain the HOME-ARP units’ long-term operational feasibility. However, HOME-ARP funds cannot be used for both a capitalized operating cost assistance reserve and ongoing payments for operating cost assistance during the minimum compliance period. The allowable amount of the reserve shall not exceed the amount determined by the PJ to be necessary to provide operating cost assistance for HOME-ARP units restricted for occupancy by qualifying populations for the 15-year HOME-ARP minimum compliance period. The operating cost assistance reserve for HOME-ARP units for qualifying households must be held by the project owner in a separate interest-bearing account and sized, based on an analysis of projected deficits remaining after the expected payments toward rent by qualifying households are applied to the units’ share of operating costs. Funds in a capitalized operating cost assistance reserve can only be drawn to address operating deficits associated with HOME-ARP units restricted for occupancy by the qualifying populations. A PJ must use the definition of operating costs in this Notice in its calculation of operating deficits to determine the amount of HOME-ARP funds needed for an operating cost assistance reserve or when providing operating cost assistance. Unexpended operating cost assistance reserve amounts remaining at the end of the minimum compliance period must be returned in accordance with Section VI.B.24 of this Notice. A PJ may provide operating cost assistance to a HOME-ARP rental project to cover an operating deficit associated with HOME-ARP units restricted for occupancy by qualifying households except for when an operating cost assistance reserve is already established for the project. Operating cost assistance committed to a project cannot be provided beyond the HOME-ARP budget period, as described in Section VIII.C.4 of this Notice. Operating costs include costs for administrative expenses, property management fees, insurance, utilities, property taxes, and maintenance of a unit that is designated as a HOME-ARP-assisted unit and required to be occupied by a qualifying household. . Operating costs must be reasonable and appropriate for the area, size, population(s) served, and type of project. Project administrative expenses include payroll costs, which are gross salaries and wages paid to employees assigned to the property, including payroll taxes, employee compensation, and employee benefits; employee education, training, and travel; advertising; and general administrative costs which are costs for goods and services 25 required for administration of the housing, including rental or purchase of equipment, supplies, legal charges, bank charges, utilities, telephone/internet services, insurance, and other administrative costs that are reasonable and customary for the general administration of a rental unit occupied by qualifying populations. HOME-ARP permits the pro-rated staffing costs of a Resident Services Coordinator to be included in the operating costs allocated to a HOME-ARP unit for low-income or qualifying households if such costs are not already paid by another source. Typically, the role of a Resident Services Coordinator is to arrange community activities for residents and link residents to outside service agencies as needed. A property management fee includes the total fee paid to a management agent by the owner for the day-to-day management of a HOME-ARP rental unit restricted for occupancy by qualifying populations. A management agent must cover its costs of supervising and overseeing operations of a HOME-ARP unit out of the fee they receive. A reserve for replacement must be based on the useful life of each major system and expected replacement cost in a HOME-ARP project. Scheduled payments to a reserve for replacement of major systems included in the operating costs allocated to a HOME- ARP unit restricted for a qualifying household may be made from the operating cost assistance reserve. A reserve for replacement allocated to the HOME-ARP units may also be capitalized in the initial year of the minimum compliance period of the HOME- ARP units. HOME-ARP funds cannot be used to both capitalize a reserve for replacement and provide payments to the reserve for replacement from a capitalized operating reserve during the minimum compliance period. Supportive services costs are not eligible operating costs of HOME-ARP units, however, qualifying households occupying HOME-ARP rental units may receive supportive services through the HOME-ARP supportive services eligible activity. 6. Prohibited Activities and Fees: HOME-ARP may not be used for any of the prohibited activities, costs or fees in 24 CFR 92.214, as revised by the Appendix to this Notice. 7. HOME-ARP Funds and Public Housing: HOME-ARP funds must be used in accordance with the requirements in 24 CFR 92.213(a)-(c). 8. Commitment: The affordable housing requirements in the definition of Commitment in 24 CFR 92.2, including the provisions in (2) Commit to a specific local project, apply to rental housing units assisted with HOME-ARP funds. This includes but is not limited to the requirements that the PJ and project owner have an executed legally binding written agreement under which HOME-ARP assistance will be provided to the owner for an identifiable project for which all necessary financing has been secured, a budget and schedule have been established, and underwriting has been completed and under which construction is scheduled to start within 12 months of the agreement date. 9. Maximum Per-Unit Subsidy and Limitations on Costs: The maximum per-unit subsidy established in NAHA does not apply to HOME-ARP units. PJs may pay up to 100 percent of the eligible and reasonable HOME-ARP costs allocated to a HOME-ARP unit, including 26 operating cost assistance associated with units restricted for occupancy by qualifying households. All costs paid by HOME-ARP funds must comply with the requirements of this Notice and the Cost Principles at 2 CFR part 200, subpart E of the Uniform Administrative Requirements, as amended. 10. Underwriting, Subsidy Layering: Before the PJ can commit HOME-ARP funds to a project, it must evaluate the project to determine the amount of HOME-ARP capital subsidy and operating cost assistance necessary to provide quality affordable housing that meets the requirements of this Notice and is financially viable throughout the minimum 15-year HOME-ARP compliance period. The PJ must evaluate the project in accordance with underwriting and subsidy layering guidelines it has developed for HOME-ARP projects. The PJ’s project underwriting must include an in-depth review of underlying project assumptions, development sources and uses, and projected operating income and expenses, and the project’s long-term financial viability to determine the project’s need for HOME- ARP assistance while preventing over-subsidization of the project. HUD anticipates that project developers will rely on Low-Income Housing Tax Credit (LIHTC) financing, HOME funds, Housing Trust Fund grants, project-based vouchers, project-based rental assistance, operating cost reserves, state or local sources, or a combination of these and other resources to create a feasible HOME-ARP project and maintain compliance with HOME-ARP requirements. HOME-ARP units for qualifying households that do not receive a commitment of project-based vouchers or project-based rental assistance may require both deep capital subsidy and operating cost assistance to remain financially sustainable for the minimum 15-year HOME-ARP compliance period. However, the PJ, through its underwriting, must also determine that the HOME-ARP capital and operating subsidies do not result in over-subsidization of the project. To secure HOME-ARP rental units for qualifying households, HOME-ARP funds may be invested in different types of projects, including permanent supportive housing, mixed- finance affordable housing, and market-rate projects. While the viability of the HOME- ARP units is the PJ’s primary concern, it must not limit its underwriting analysis to the HOME-ARP units. The long-term viability of HOME-ARP units is contingent upon the financial health of the entire project. PJs must therefore take a holistic approach to underwriting that examines the overall feasibility of the entire project to determine that the property will be financially sustainable for the duration of the 15-year HOME-ARP compliance period. For projects that will receive operating cost assistance through a capitalized operating cost assistance reserve or on-going operating cost assistance for a specific period, the on-going operating cost assistance or operating cost assistance reserve must be included in the underwriting. Unless placed into an operating cost assistance reserve, operating cost assistance committed to a project for a specific period cannot be provided beyond the budget period, as described in Section VIII.C.4. of this Notice. HOME-ARP units that have commitments for a form of project-based rental assistance must be underwritten with the projected rental assistance and not with operating cost assistance. An operating cost assistance reserve must be sized based on an analysis of projected operating deficits 27 remaining after the expected payments toward rent by qualifying households are applied to the HOME-ARP unit's share of operating costs. While a PJ may offer on-going project operating cost assistance instead of providing an operating cost assistance reserve, it may find this approach makes it more difficult to develop HOME-ARP units. a. Underwriting and Subsidy Layering Guidelines: PJs must develop standardized underwriting guidelines for HOME-ARP rental projects. These guidelines must provide for underwriting that accommodates and is appropriate for different types of projects. For example, a standard market analysis does not provide the necessary data for a project where 100% of the units are restricted as permanent supportive housing for qualifying populations. In contrast, if a mixed-income property relies on rental income from market-rate units to subsidize the operating costs of permanent supportive housing units for which little or no tenant-paid rental income is projected, then a market study confirming that the proposed market rents are achievable is needed to demonstrate the long-term financial viability of the project. PJs with existing HOME rental underwriting standards may use these standards as the foundation for their HOME-ARP underwriting guidelines, but all PJs are required to develop and implement standardized underwriting guidelines for HOME-ARP that require the following: i. An examination of the sources and uses of funds for the project and a determination that costs are necessary and reasonable. In examining a project’s proposed sources and uses, a PJ must determine the amount of HOME-ARP development subsidy required to fill the gap between other committed funding sources and the cost to develop the project. A developer fee is a permitted development cost under the HOME-ARP program, but the PJ must review the fee and determine that it is reasonable. A PJ may set limits on the developer fee and other fees (e.g., asset management fee, property management fee) to be paid by HOME-ARP funds that differ from other funding sources (e.g., LIHTC underwriting standards). ii. An assessment of the current market demand for the proposed project. (1) For HOME-ARP units for qualifying households, a market assessment is not required. Rather, the PJ can demonstrate that there is unmet need among qualifying populations for the type of housing proposed through their gap analysis, CoC data, public housing and affordable housing waiting lists, point- in-time surveys, housing inventory count, or other relevant data on the need for permanent housing for the qualifying populations. (2) For projects containing units restricted for occupancy by low-income households or market-rate households, the PJ must conduct a market assessment in accordance with 24 CFR 92.250(b)(2). A third-party market assessment completed by the developer or another funder meets this requirement, but the PJ must review the assessment and provide a written, dated acknowledgement that it accepts the assessment’s findings and conclusions. The market assessment and the PJ’s written, dated 28 acknowledgement must be retained for recordkeeping purposes. iii. Review of and determination that the developer’s experience and financial capacity are satisfactory based on the size and complexity of the project. When assessing the developer, the PJ must review, at minimum, prior experience with similar projects and the current capacity to develop the proposed project. When determining whether the developer has the financial capacity to undertake the project, the PJ should examine financial statements and audits to determine the developer’s net worth, portfolio risk, pre-development funding, and liquidity. iv. Firm written financial commitments for the project. v. A careful review of the project’s operating budget, including the basis for assumptions, projections of a project’s net operating income, and reasonably expected changes in revenue and expenses during the minimum compliance period, to determine if any HOME-ARP-funded operating cost assistance is necessary and if applicable, an operating cost assistance reserve is sized appropriately. Operating income of the project must be sufficient to cover operating expenses throughout the minimum compliance period. For HOME-ARP units for qualifying households, the proforma or budget projections should include any anticipated ongoing operating cost assistance or draws from an operating cost assistance reserve, if applicable, that will offset operating deficits associated with those units to demonstrate sufficient operating support. (1) If project-based vouchers or project-based rental assistance is or will be awarded, this analysis must include that rental assistance revenue because operating cost assistance cannot be used for units for qualifying households with project-based vouchers or project-based rental assistance. (2) A PJ’s underwriting standards may permit projects to generate reasonable net operating income throughout the minimum compliance period. However, HOME-ARP operating cost assistance may only be used to offset operating deficits, in accordance with the requirements of this Notice. Net operating income resulting from HOME-ARP operating cost assistance is not permitted and must be prohibited in the written agreement between the participating jurisdiction and the owner. vi. An assessment of the project’s overall viability through the minimum compliance period based on the households (i.e., qualifying households, low-income households, market-rate households) it will serve. 11. Property Standards: HOME-ARP rental units must comply with all property standards applicable to rental projects required in 24 CFR 92.251 paragraphs (a) new construction, (b) rehabilitation projects, (c)(1) and (2) acquisition of standard housing, (e) manufactured housing, and (f) on-going property condition standards. 12. Determining Household Income: The PJ must require all HOME-ARP units to be restricted for eligible households (i.e., either qualifying or low-income households) 29 throughout the minimum compliance period. Qualifying households are eligible for admission to HOME-ARP rental units solely by meeting the definition of one of the qualifying populations (i.e., HOME-ARP does not impose income restrictions on units restricted for qualifying populations). If there is no income requirement in the qualifying population’s definition, a PJ is not required to perform an initial determination of household income except as necessary to determine an affordable rental contribution by the qualifying household or to establish eligibility for another funding source in the unit that imposes income restrictions (e.g., LIHTC). Each subsequent year during the compliance period, starting 1 year after initial occupancy, the PJ must use the definition of annual income as defined in 24 CFR 5.609 to examine the income of qualifying households to determine the household’s contribution to rent. For low-income households, the PJ must use the definition of annual income as defined in 24 CFR 5.609 to examine the household’s income at initial occupancy and each subsequent year during the compliance period to determine the household’s ongoing income eligibility and applicable rental contribution. a. Qualifying populations: For purposes of establishing the qualifying household’s rental contribution after initial occupancy, a PJ must examine a HOME-ARP qualifying household’s income using 24 CFR 92.203(a)(1)(i) or (iii), starting 1 year after initial occupancy. Each year during the minimum compliance period, the owner must examine the household’s annual income in accordance with any one of the options in 24 CFR 92.203(a)(1) specified by the PJ. A project owner who re-examines household income through a statement and certification in accordance with 24 CFR 92.203(a)(1)(ii), must examine the income of each household, in accordance with 24 CFR 92.203(a)(1)(i), every sixth year of the compliance period. Otherwise, an owner who accepts the household’s statement and certification in accordance with 24 CFR 92.203(a)(1)(ii) is not required to examine the household’s income unless there is evidence that the household’s written statement failed to completely and accurately state information about the household’s size or income. b. Low-income Households: In accordance with 24 CFR 92.252(h), the income of each low-income household must be determined initially in accordance with 24 CFR 92.203(a)(1)(i), and each year following the initial determination during the minimum compliance period in accordance with any one of the options in 24 CFR 92.203(a)(1) specified by the PJ. An owner who re-examines household income through a statement and certification in accordance with 24 CFR 92.203(a)(1)(ii), must examine the income of each household, in accordance with 24 CFR 92.203(a)(1)(i), every sixth year of the minimum compliance period. Otherwise, an owner who accepts the household’s statement and certification in accordance with 24 CFR 92.203(a)(1)(ii) is not required to examine the household’s income unless there is evidence that the household’s written statement failed to completely and accurately state information about the household’s size or income. c. Households Assisted by Other Programs: Notwithstanding paragraphs (a) and (b), if a family is applying for or living in a HOME-ARP-assisted rental unit, and the unit is assisted by a Federal or State project based rental subsidy then a PJ must accept a public housing agency, section 8 project owner, or CoC recipient or subrecipient’s 30 determination of the family’s annual income and adjusted income under that program’s rules and does not need to obtain source documentation in accordance with 24 CFR 92.203(a)(1) or calculate the annual income of the family. If a family is applying for or living in a HOME-ARP rental unit, and the family is assisted by a Federal tenant-based rental assistance program (e.g. housing choice vouchers) then a PJ may choose to accept the rental assistance provider’s determination of the family’s annual and adjusted income under that program’s rules without need for review under 24 CFR 92.203(a)(1). 13. Rent limitations: This Notice establishes rent limits for HOME-ARP units restricted for qualifying populations and for units that may be restricted for low-income households. a. Units Restricted for Occupancy by Qualifying Households: In no case can the HOME- ARP rents exceed 30% of the adjusted income of a household whose annual income is equal to or less than 50% of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit. HUD will publish the HOME- ARP rent limits on an annual basis. Notwithstanding the foregoing, a unit that receives a Federal or state project-based rental subsidy and is occupied by a qualifying household that pays as a contribution to rent no more than 30 percent of the household’s adjusted income, may charge the rent allowable under the Federal or state project-based rental subsidy program (i.e., the tenant rental contribution plus the rental subsidy allowable under that program). If a household receives tenant-based rental assistance, the rent is the rent permissible under the applicable rental assistance program (i.e., the tenant rental contribution plus the rental subsidy allowable under that rental assistance program). The rent limits for HOME-ARP units for qualifying households include the rent plus the utility allowance established pursuant to Section VI.B.13.d of this Notice. b. Rent limitations – low-income households: HOME-ARP rental units occupied by low- income households must comply with the rent limitations in 24 CFR 92.252(a) (i.e., the lesser of the Fair Market Rent for existing housing for comparable units in the area, as established by HUD, or a rent equal to 30 percent of the income of a family at 65 percent of median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit). Notwithstanding the foregoing, when a household receives a form of Federal tenant-based rental assistance (e.g., housing choice vouchers), the rent is the rent permissible under the applicable rental assistance program (i.e., the tenant rental contribution plus the rent subsidy allowable under the rental assistance program). The rent limits for low-income households apply to the rent plus the utility allowance established pursuant to Section VI.B.13.d of this Notice. c. Rent limitations – Single Room Occupancy (SRO) Units: A HOME-ARP rental project may consist of SRO units. For the purposes of HOME-ARP rental, a SRO unit is defined as a unit that is the primary residence of the occupant(s) and must at least contain sanitary facilities but may also contain food preparation facilities. A project’s 31 designation as a SRO cannot be inconsistent with the building’s zoning and building code classification. If the SRO units have both sanitary and food preparation facilities, the maximum HOME-ARP rent is based on the zero-bedroom fair market rent. If the SRO unit has only sanitary facilities, the maximum HOME-ARP rent is based on 75 percent of the zero-bedroom fair market rent. The rent limits for SRO units must also include the utility allowance established pursuant to Section VI.B.13.d of this Notice. d. Initial Rent Schedule and Utility Allowance: The PJ must establish maximum allowances for utilities and services and update the allowances annually. The PJ may adopt the utility allowance schedule of the PHA. The PJ must review and approve the HOME-ARP rents proposed by the owner, subject to the HOME-ARP rent limitations. For HOME-ARP units where the tenant is paying utilities and services (e.g., trash collection), the PJ must determine that the rent for the unit does not exceed the maximum rent minus the monthly allowance for utilities and services. 14. Tenant Contribution to Rent – Qualifying Households: The PJ must determine that the qualifying household’s contribution to rent is affordable to the qualifying household based on a determination of the household’s income. If the household is receiving project-based or tenant-based rental assistance, the household cannot be required to contribute more towards rent than the amount permitted by the requirements of the applicable rental assistance program (See Section VI.B.13.a of this Notice). If a qualifying household is not receiving project-based or tenant-based rental assistance and cannot contribute any income toward rent, or the contribution is insufficient to cover the unit rent, the project owner may draw from the project’s operating cost assistance reserve if projected rental revenue minus the operating costs of the unit results in a deficit. If an operating cost assistance reserve was not capitalized at project completion:  The PJ may provide ongoing HOME-ARP operating cost assistance to cover the operating deficits associated with units occupied by qualifying households, subject to the requirements in this Notice.  The qualifying household may receive HOME-ARP TBRA to remain housed in the HOME-ARP rental unit or the PJ may offer, in conjunction with a qualifying household’s admittance into a HOME-ARP rental unit, a simultaneous award of supportive services to the qualifying household in accordance with Section VI.D of this Notice. Any provision of supportive services must comply with all requirements of Section VI.D. of the Notice and the PJ’s policies and procedures.  Operating cost assistance, HOME-ARP TBRA, and supportive services funds committed to a project cannot be provided beyond the budget period for the HOME- ARP funds, as described in Section VIII.C.4 of this Notice. 15. Changes in Income and Over-income Households: A household that met the definition of one of the HOME-ARP qualifying populations at initial occupancy and whose annual income at the time of income re-certification is above 32 50 percent of median income for the area but at or below 80 percent of the median income for the area must pay the rent specified in 24 CFR 92.252(a). HOME-ARP-assisted units restricted for low-income households continue to qualify as HOME-ARP rental housing despite a temporary noncompliance caused by increases in the incomes of existing households if actions satisfactory to HUD are taken so that all vacancies are filled in accordance with HOME-ARP requirements until the noncompliance is corrected. A qualifying or low-income household that is not low-income at the time of income re- certification (i.e., whose income is above 80 percent of the median income for the area) must pay rent that complies with the over income regulatory requirements at 24 CFR 92.252(i)(2), which includes requirements applicable to HOME units that also have LIHTC restrictions. 16. Unit Designation: The PJ must determine the number of HOME-ARP units in the project restricted for qualifying households and low-income households, respectively, and whether the units are fixed or floating units at the time of project commitment. The total number of HOME-ARP rental units restricted for occupancy by qualifying households and the total number of HOME-ARP rental units restricted for low-income households must be identified as separate totals in the written agreement. In a project containing HOME-ARP and other units, the PJ must designate fixed or floating HOME-ARP units in accordance with 24 CFR 92.252(j). The PJ must maintain this unit mix throughout the compliance period. 17. Maintaining Unit Mix: At the time of admission to a HOME-ARP rental unit, a household must meet the definition for at least one qualifying population or be determined to be a low- income household, depending on the applicable HOME-ARP restriction on the rental unit to which it is being admitted and in accordance with the written agreement. For HOME-ARP rental units restricted for occupancy by qualifying populations, a household that meets the definition of a qualifying population at the time of admission retains its eligibility to occupy a HOME-ARP rental unit restricted for occupancy by qualifying populations, irrespective of changes in income or whether the household continues to meet the definition of a qualifying population after initial occupancy. As an example, a household that qualifies as “Homeless” at admission does not meet the Homeless definition once the household occupies a HOME-ARP unit but remains a qualifying household and is eligible to remain in a HOME-ARP rental unit restricted for qualifying populations. Income determinations for qualifying households are therefore only for purposes of establishing a qualifying household’s rental contribution as described in Section VI.B.15 of this Notice and not for maintaining continued eligibility in the HOME-ARP program. In a project with floating units, PJs are encouraged but not required to shift the HOME-ARP qualifying population designation to another unit to serve another qualifying household if the household’s income subsequently is certified to be at or above 80 percent AMI and the household no longer meets the definition of any qualifying population. 33 For HOME-ARP rental units restricted for occupancy by low-income households, units will be considered temporarily out of compliance if the household’s income increases above 80 percent of area median income. The requirements for correcting any noncompliance using vacancies or redesignation of units depends on whether the HOME-ARP rental units are fixed or floating and whether other funding sources (e.g., LIHTC) impose income or other restrictions on the units. Please note, in accordance with the requirements in 24 CFR 92.253 and in Section VI.B.19.c, an increase in a tenant’s income does not constitute good cause to evict or refuse to renew a tenant’s lease, regardless of program requirements associated with other funding sources such as LIHTC. In addition, compliance with unit restrictions for low-income households requires adjustment of rents as described in Section VI.B.15 of this Notice. 18. Minimum Compliance Period: HOME-ARP-assisted units must comply with the requirements of this Notice for a minimum period of 15 years, irrespective of the amount of HOME-ARP funds invested in the project or the activity being undertaken. A PJ may impose a longer compliance period but should plan for the project’s financial feasibility for the longer period without HOME-ARP funds. The PJ may not use HOME-ARP funds to provide operating cost assistance, including a capitalized operating cost assistance reserve, to cover deficits during a PJ’s extended compliance period. If a project-based rental assistance Housing Assistance Payments (HAP) contract is awarded to a HOME-ARP rental project, a PJ must impose a minimum compliance period that is the greater of 15 years or the term of the HAP contract. PJs are also encouraged to extend restrictions for occupancy of the HOME-ARP units in accordance with the requirements in this section to match the term of eligible HAP contract renewals. The provisions at 24 CFR 92.252(e)(1)-(4) apply, including the requirement that the PJ must impose the HOME-ARP rental requirements through a deed restriction, covenant running with the land, legally binding agreement restricting the use of the property and recorded on the property in accordance with State recordation laws, or other mechanisms approved by HUD. The chart providing minimum affordability periods based on rental housing activity that is contained in 24 CFR 92.252(e) does not apply. The enforceable restriction must provide that units assisted with HOME-ARP comply with the requirements of this Notice throughout the minimum 15-year compliance period, including: a. Units restricted for qualifying populations must be occupied by households that met the definition of a qualifying population at the time of initial occupancy. The household’s contribution toward rent during this period must be affordable in accordance with Section VI.B.14 of this Notice. The rents for these units must comply with the rent limitations established in this Notice, including the rent provisions specified in 24 CFR 92.252(i)(2) for households whose income increases above 80 percent of area median income and whose contribution to rent complies with the requirements in Section VI.B.15. b. Units available for low-income households must be continuously occupied by households who are income eligible. The rents for these units must comply with the rent 34 limitations established in this Notice, including the rent provisions specified in 24 CFR 92.252(i)(2) for households whose income increases above 80 percent of area median income. c. The units must comply with the ongoing property condition standards of 24 CFR 92.251(f) throughout the compliance period as demonstrated by an on-site inspection within 12 months of project completion and an on-site inspection at least once every three years thereafter as required by 24 CFR 92.504. d. Each household that occupies a HOME-ARP unit has an executed lease that complies with the tenant protections required in Section VI.B.19 of this Notice. 19. Tenant Protections: PJs must verify that each household that occupies a HOME-ARP assisted unit has an executed lease that complies with the tenant protection requirements of this Notice. The lease must be either be between the project owner and the household or between the project owner and a HOME-ARP sponsor with a sublease between the qualifying household and HOME-ARP sponsor. A HOME-ARP sponsor is a nonprofit organization that provides housing or supportive services to qualifying households and facilitates the leasing of a HOME-ARP rental unit to a qualifying household or the use and maintenance of HOME-ARP TBRA by a qualifying household. PJs may permit a HOME- ARP sponsor to lease a HOME-ARP unit from an owner or execute a master lease with the owner of a HOME-ARP project for HOME-ARP units restricted for occupancy by qualifying households. The HOME-ARP sponsor may then sublease the HOME-ARP rental unit to the qualifying household. The sublease between the HOME-ARP sponsor and the qualifying household must comply with the rent limitations and tenant protection requirements of this Notice. a. Lease Requirement: There must be a lease between the qualifying household or the low- income household and the owner of the HOME-ARP-assisted project in accordance with 24 CFR 92.253(a), except that a sublease is permitted if a HOME-ARP sponsor has executed a master lease or lease with the project owner for the leasing of the units restricted for occupancy by qualifying households. b. Prohibited Lease Terms: The lease between the low-income household, qualifying household, or HOME-ARP sponsor and the HOME-ARP project owner or the sublease between the HOME-ARP sponsor and a qualifying household may not contain any of the prohibited lease terms specified in 24 CFR 92.253(b). c. Termination of tenancy: An owner may not terminate the tenancy or refuse to renew the lease of a tenant of a HOME-ARP unit or of a HOME-ARP sponsor with a sublease with a qualifying household except for serious or repeated violation of the terms and conditions of the lease; for violation of applicable Federal, State, or local laws; or for other good cause. Similarly, a HOME-ARP sponsor may not refuse to renew a sublease with a qualifying household except for serious or repeated violation of the terms and conditions of the sublease; for violation of applicable Federal, State, or local laws; or for 35 other good cause. An increase in the tenant’s or sublessee’s income does not constitute good cause. In addition, if HOME-ARP funds were or are used to capitalize an operating cost assistance reserve or there is a current contract for the PJ to provide operating cost assistance to the project, an owner may not terminate the tenancy or refuse to renew the lease of a qualifying household because of the household’s inability to pay rent during the minimum compliance period. A qualifying household’s inability to pay rent shall mean that the qualifying household cannot pay more than 30 percent of the qualifying household’s income toward rent, based on an income determination made by the PJ in the last 30 days. Where there is no capitalized operating reserve or other operating cost assistance to cover the operating deficit for a HOME-ARP unit occupied by a qualifying household, the PJ may assist the qualifying household with HOME-ARP TBRA or supportive services in accordance with the requirements of this Notice. The above tenant protections are necessary as HOME-ARP requires the PJ to perform underwriting that reviews the operating feasibility of units occupied by qualifying households for the 15-year compliance period to determine how HOME-ARP funds may address the potential for qualifying households to have little to no income to contribute toward rent. To terminate or refuse to renew tenancy for any household occupying a HOME-ARP unit, the owner must serve written notice upon the tenant (and the HOME-ARP sponsor if the lease is between an owner and HOME-ARP sponsor) at least 30 days before termination of tenancy, specifying the grounds for the action. In the case of a sublease, to terminate or refuse to renew tenancy of a qualifying household, the HOME-ARP sponsor, in accordance with the policy established by the PJ, must notify the PJ in advance of serving written notice to the qualifying household and must serve written notice upon the qualifying household at least 30 days before termination of tenancy, specifying the grounds for the action. 20. Coordinated Entry and Project-Specific Waitlists: In accordance with Section IV.C of this Notice, PJs must determine whether an owner may use a CoC’s CE, a CoC’s CE and other referral sources, or a project-specific waitlist, to select qualifying households for HOME-ARP units restricted for occupancy by qualifying populations. PJs will make this determination on a project-by-project basis. Regardless of which method is selected, in all cases, the PJ must use a project-specific waitlist when selecting households to occupy units restricted for occupancy by low-income households. Any preferences among qualifying households must be disclosed in the HOME-ARP allocation plan through the PJ’s public participation process in accordance with Section V.C. of this Notice. The written agreement between the PJ and the project owner must specify the method the owner must use for selecting qualifying households for admission to HOME-ARP units. a. The owner of a HOME-ARP rental project must adopt and follow written tenant selection policies and criteria for HOME-ARP units that: 36 i. Limits eligibility to households that meet one of the HOME-ARP qualifying populations definitions or low-income households in accordance with HOME- ARP requirements; Preferences for households in one or more of the HOME- ARP qualifying populations must comply with the PJ’s preferences and the PJ’s policies and procedures for applying those preferences, if any, and must not violate nondiscrimination requirements in 24 CFR 92.350. ii. Do not exclude an applicant with a voucher under the section 8 Housing Choice Voucher Program (24 CFR 982), or an applicant participating in HOME, HOME-ARP or other Federal, state or local tenant-based rental assistance program because of the status of the prospective tenant as a holder of such a certificate, voucher, or comparable tenant-based assistance document; iii. Limits eligibility or gives a preference to a particular qualifying population or segment of the qualifying population if permitted in its written agreement with the participating jurisdiction (and only if the limitation or preference is described in the participating jurisdiction's HOME-ARP allocation plan). A preference for households in one or more of the HOME-ARP qualifying populations must comply with the PJ’s determined preference(s) and the PJ’s policies and procedures for applying the preference(s), if any; iv. Any limitation or preference must not violate nondiscrimination requirements in 24 CFR 92.350. If the PJ requires the use of a project-specific waitlist to select qualifying households and/or low-income households for occupancy of HOME- ARP units, provide for the selection of households from a written waiting list in the chronological order of their application, insofar as is practicable; v. Gives prompt written notification to any rejected applicant of the grounds for any rejection; and, vi. Complies with the VAWA requirements as described in 24 CFR 92.359. b. Project-Specific Waitlist – Low-Income Households: A project owner must use a project-specific waitlist to select households to occupy units restricted for occupancy by low-income households in accordance with the tenant selection requirements of 24 CFR 92.253(d). 21. Project Completion and Occupancy: HOME-ARP rental projects must meet the definition of project completion at 24 CFR 92.2. If the PJ fails to complete a project within 4 years of project commitment, it must comply with the terminated project requirements at 24 CFR 92.205(e)(2). If the HOME-ARP units are not occupied by eligible qualifying households or low-income households within six months following project completion, the PJ, as applicable, must submit to HUD information on its efforts to coordinate with a CoC, homeless service providers, social service, and other public agencies to fill units for qualifying households or must submit marketing information and, if appropriate, a marketing plan to fill units for low-income households. The PJ must repay any HOME- ARP funds invested in units that are not rented to eligible qualifying or low-income households within 12 months of project completion. 22. Penalties for Noncompliance: The PJ must repay HOME-ARP funds invested in rental housing that is terminated before completion or otherwise does not comply with initial or ongoing requirements of this Notice during the compliance period, as follows: 37 a. If the noncompliance or termination occurs within the first 10 years of the compliance period, the PJ must repay the entire amount of HOME-ARP funds invested in the project. b. If the noncompliance or termination occurs in years 11 through 15, the repayment amount will be reduced by 20 percent for each year beyond the initial 10-years during which time the project was compliant. Repayment of the HOME-ARP funds is not required if the project owner sells or transfers, either voluntarily or involuntarily, the HOME-ARP project during the compliance period if (1) the HOME-ARP restrictions remain, (2) the project and new project owner continues to comply with all HOME-ARP requirements, and (3) any HOME-ARP funds remaining in a project’s operating cost assistance reserve or reserve for replacement remain with the project and convey upon sale or transfer of the project as a restricted operating cost assistance reserve or reserve for replacement subject to HOME-ARP Notice requirements. 23. Operating Cost Assistance Reserve - Management and Oversight: The PJ must require that any HOME-ARP funds expended for project operating cost assistance reserves are held by the project owner in a separate interest-bearing account. The PJ must require the project owner to request written approval from the PJ prior to disbursing funds from the project operating cost assistance reserve. The PJ must review each requested distribution from the operating cost assistance reserve, including supporting documentation, to determine that the distribution is reasonable and necessary to cover the operating deficit associated with HOME-ARP units occupied by qualifying households. The PJ must, no less than annually, review the operating cost assistance reserve account to determine that the account is appropriately sized based on the projected operating deficits of HOME-ARP units restricted for occupancy by qualifying households. The PJ may require the project owner to enter into a deposit account control agreement for the operating cost assistance reserve where the PJ must approve disbursements from the account. 24. End of Compliance Period and Return of Operating Cost Assistance Reserve: Any unexpended operating cost assistance reserve remaining at the end of the compliance period must be returned as follows: a. If the HOME-ARP rental project will continue to operate in accordance with the HOME-ARP requirements and serve qualifying households beyond the HOME-ARP 15- year compliance period as demonstrated by enforceable restrictions imposed by the PJ, the project can retain the operating cost assistance reserve amount to address any operating deficits associated with the HOME-ARP units occupied by qualifying households. b. If the HOME-ARP project will not continue to operate in accordance with the HOME- ARP requirements and serve qualifying households beyond the 15-year HOME-ARP compliance period and the HOME-ARP grant has expired or is closed out, the remaining operating cost assistance reserve funds must be deposited in the PJ’s local HOME 38 account and recorded as HOME program income receipt in the Integrated Disbursement and Information System (IDIS) and used for eligible costs under 24 CFR part 92. C. Tenant-Based Rental Assistance (TBRA) HOME-ARP funds may be used to provide tenant-based rental assistance to qualifying households (“HOME-ARP TBRA”). In HOME-ARP TBRA, the PJ assists a qualifying household with payments to cover the entire or insufficient amounts that the qualifying household cannot pay for housing and housing-related costs, such as rental assistance, security deposits, and utility deposits. HOME-ARP TBRA assisted households may choose to rent a unit in a HOME-ARP rental project or any other eligible rental unit. HOME-ARP TBRA is a form of rental assistance that is attached to the household and not a particular rental unit. Therefore, the HOME-ARP TBRA assisted household may choose to move to another unit with continued HOME-ARP TBRA as long as the new unit meets the applicable property standards of this Notice. If a HOME-ARP TBRA assisted household chooses to move, the rental assistance contract terminates and a new rental assistance contract for the new unit will be executed according to HOME-ARP TBRA requirements. The HOME-ARP TBRA assisted household must notify the PJ before moving in order to receive continued HOME-ARP TBRA. 1. Tenant Selection: Only individuals and families in the qualifying populations are eligible to receive HOME-ARP TBRA assistance. PJs must perform tenant selection in accordance with Section IV.C of this Notice. The PJ must select qualifying households for HOME- ARP TBRA in accordance with written tenant selection policies and criteria that are based on local housing needs established in the HOME-ARP allocation plan. The PJ must follow written tenant selection policies and criteria that: a. Limit eligibility to households that meet one of the HOME-ARP qualifying populations definitions in accordance with HOME-ARP requirements. Preferences for households in one or more of the HOME-ARP qualifying populations, if any, must comply with the preferences and/or method of prioritization in the PJ’s HOME-ARP allocation plan and the PJ’s policies and procedures for applying such preferences, if any, and must not violate nondiscrimination requirements in 24 CFR 92.350. b. If the PJ selects HOME-ARP TBRA applicants off a waiting list, it must provide for the selection of qualifying households from a written waiting list in accordance with the PJ’s preferences or method of prioritization in the chronological order of their application, insofar as is practicable. c. Give prompt written notification to any rejected applicant of the grounds for any rejection, and d. Comply with the VAWA requirements as described in 24 CFR 92.359. Finally, the PJ may offer, in conjunction with HOME-ARP TBRA assistance, a simultaneous award of services in accordance with Section VI.D of this Notice, and also provide particular types of other nonmandatory services that may be most appropriate for persons with a special need or a particular disability. Any provision of supportive services must comply with all requirements of Section VI.D of the Notice and the PJ’s policies and procedures. 39 2. Tenant Protections: PJs must require and verify that there is an executed lease between the qualifying household that receives HOME-ARP TBRA and the owner of the rental unit or between the owner of the rental unit and a HOME-ARP sponsor with a sublease between the qualifying households and the HOME-ARP sponsor, in accordance with 24 CFR 92.253(a). A HOME-ARP sponsor is a nonprofit organization that provides housing or supportive services to qualifying households and facilitates the leasing of a rental unit to a qualifying household or the use and maintenance of HOME-ARP TBRA by a qualifying household. PJs may permit a HOME-ARP sponsor, as defined in Section VI.B.19, to execute a lease or master lease with a project owner. The HOME-ARP sponsor must then sublease a unit to a qualifying household. The lease between the qualifying household and the rental unit owner or the sublease between the HOME-ARP sponsor and the qualifying household cannot contain any of the prohibited lease terms specified in 24 CFR 92.253(b). 3. Eligible Costs: Eligible costs under HOME-ARP TBRA include rental assistance, security deposit payments, and utility deposit assistance to qualifying households. HOME-ARP funds may be used to pay for up to 100% of these eligible costs. A PJ may use HOME-ARP TBRA funds to provide loans or grants to qualifying households for security deposits for rental units regardless of whether the PJ provides any other HOME-ARP TBRA assistance. The amount of funds that may be provided for a security deposit may not exceed the equivalent of two months’ rent for the unit. Utility deposit assistance is an eligible cost only if rental assistance or a security deposit payment is provided. Costs of inspecting the housing are also eligible as costs of HOME-ARP TBRA. Administration of HOME-ARP TBRA is an eligible cost only if executed in accordance with general management oversight and coordination at 24 CFR 92.207(a), except that the costs of inspecting the housing and determining the income eligibility of the family are eligible project costs under HOME-ARP TBRA. 4. Ineligible Costs: HOME-ARP TBRA may not be used to pay for the homebuyer program as defined at 24 CFR 92.209(c)(2)(iv). 5. Portability of Assistance: A PJ may require the HOME-ARP TBRA assisted household to use HOME-ARP TBRA within the PJ's boundaries or may permit the household to use the assistance outside its boundaries pursuant to 24 CFR 92.209(d). 6. Term of Rental Assistance Contract: The requirements at 24 CFR 92.209(e) defining the term of the rental assistance contract for providing assistance with HOME funds are waived for HOME-ARP TBRA. The PJ must determine the maximum term of the rental assistance contract. The rental assistance contract continues until the end of the rental assistance contract term, as determined by the PJ, or until the lease or sublease is terminated, whichever occurs first. The term of the rental assistance contract may be renewed, subject to the availability of HOME-ARP funds. The term of the rental assistance contract must begin on the first day of the term of the lease or sublease. HOME-ARP TBRA funds cannot be used after the end of the budget period. 7. Maximum Subsidy: The PJ must establish policies for the allowable maximum subsidy, which may differ from the maximum subsidy requirements at 24 CFR 92.209(h). PJs may 40 provide up to 100 percent subsidy for rent, security deposit payments, and utility bills. The PJ must also establish policies for determining any household contribution to rent based on a determination of the qualifying household’s income. 8. Rent Standard: Consistent with 24 CFR 92.209(h)(3), PJs must also establish a rent standard for HOME-ARP TBRA by unit size that is based upon local market conditions or the section 8 Housing Choice Voucher program under 24 CFR part 982. The PJ must determine whether the rent for a HOME-ARP TBRA household complies with the rent standard established by the PJ for the HOME-ARP program and must disapprove a lease if the rent does not meet the PJ’s rent standard for HOME-ARP TBRA. 9. Housing Quality Standards: Housing occupied by a household receiving HOME-ARP TBRA must comply with all housing quality standards required in 24 CFR 982.401 (or successor inspection standards issued by HUD) unless the tenant is residing in a HOME or HOME-ARP unit, in which case the PJ may defer to initial and ongoing inspection standards. 10. Program Operation: The PJ may operate HOME-ARP TBRA itself or may contract with a PHA or other entity with the capacity to operate a rental assistance program. In either case, the PJ or entity operating the program must approve the lease. HOME-ARP TBRA may be provided through an assistance contract with (1) an owner that leases a unit to a qualifying household; (2) the qualifying household, or (3) an owner and the qualifying household in a tri-party contract. In the case of HOME-ARP TBRA provided in coordination with a HOME-ARP sponsor, as described below, the PJ may require that payments be made directly to the HOME-ARP sponsor that will make rental payments to the owner on behalf of the qualifying household or require payments directly to the owner of the unit. 11. HOME-ARP TBRA with a HOME-ARP Sponsor: HOME-ARP TBRA may be provided in coordination with a HOME-ARP sponsor. As defined in Section VI.B.19, a HOME-ARP sponsor is a nonprofit organization that provides housing or supportive services to qualifying households and facilitates the leasing of a HOME-ARP rental unit to a qualifying household or the use and maintenance of HOME-ARP TBRA by a qualifying household. A HOME-ARP sponsor may make rental subsidy payments and a security deposit payment on behalf of a qualifying household. Under HOME-ARP TBRA, a qualifying household may reside in housing leased by a HOME-ARP sponsor if there is a sublease that complies with HOME-ARP lease requirements between the HOME-ARP sponsor and the qualifying household. a. Rental Assistance Contract: There must be a rental assistance contract between the PJ and at least one of the following:  HOME-ARP sponsor;  Qualifying household; or  Owner of the housing. Rental subsidy payments are made on behalf of the HOME-ARP TBRA household pursuant to a rental assistance contract. The rental assistance contract continues until the 41 lease is terminated or the term of the rental assistance contract expires (and is not renewed). Regardless of the role of the HOME-ARP sponsor, the HOME-ARP TBRA household has the right to continued HOME-ARP TBRA assistance if the household chooses to move from the unit. HOME-ARP TBRA funds cannot be used beyond the end of the HOME-ARP budget period. The HOME-ARP sponsor may only receive the TBRA subsidy directly from the PJ on behalf of the qualifying household if the rental assistance contract is between the HOME-ARP sponsor and the PJ or the HOME-ARP sponsor and the PJ have entered into a written agreement as outlined below. The HOME-ARP sponsor must make rental subsidy payments to the owner on behalf of the qualifying household per the terms and conditions of the HOME-ARP TBRA contract or written agreement with the PJ. When the HOME-ARP TBRA assisted household moves to a new unit, the HOME-ARP sponsor is not required to continue its sponsor relationship with the HOME-ARP TBRA assisted household for the new rental unit but may do so with the consent of the HOME- ARP TBRA household. The PJ must establish policies and procedures regarding termination of HOME-ARP TBRA assistance for qualifying households who are absent from the rental unit for a minimum of 60 days and where a HOME-ARP sponsor is leasing the rental unit and subleasing to the qualifying household or providing HOME-ARP TBRA rental subsidy payments on behalf of the household. b. Lease and Sublease: PJs must require and verify that each household that receives HOME-ARP TBRA assistance has an executed lease that complies with the tenant protection requirements of this Notice. The lease agreement may be between the project owner and the HOME-ARP TBRA household, or PJs may permit a HOME-ARP sponsor to execute a lease with an owner for an individual unit or a master lease for more than one unit restricted for occupancy by HOME-ARP TBRA households. If the lease agreement is between the HOME-ARP sponsor and owner, the HOME-ARP sponsor must execute a sublease agreement with a HOME-ARP TBRA household. The sublease between the HOME-ARP sponsor and the HOME-ARP TBRA household must meet the tenant protection requirements of this Notice. c. Written Agreement with HOME-ARP Sponsor: The PJ must enter into a written agreement with the HOME-ARP sponsor if the HOME-ARP TBRA rental assistance contract is not with the HOME-ARP sponsor and the HOME-ARP sponsor will receive the HOME-ARP TBRA subsidy directly from the PJ. The written agreement must specify the requirements for the HOME-ARP sponsor receiving the HOME-ARP TBRA subsidy on behalf of the qualifying household and the HOME-ARP sponsor’s obligation to provide the HOME-ARP TBRA payment to the owner for the unit’s required rent. 12. Project Completion: Project completion for a HOME-ARP TBRA project means the final drawdown has been disbursed for the project. 42 D. Supportive Services HOME-ARP funds may be used to provide a broad range of supportive services to qualifying individuals or families as a separate activity or in combination with other HOME-ARP activities. Supportive services include: a) services listed in section 401(29) of the McKinney- Vento Homeless Assistance Act (“McKinney-Vento Supportive Services”)1 (42 U.S.C. 11360(29)); b) homelessness prevention services , as described in Section VI.D.3. and D.4 below; and c) housing counseling services. 1. Eligible Program Participants: Supportive services may be provided to individuals and families who meet the definition of a qualifying population under Section IV.A of this Notice and who are not already receiving these services through another program. Program participants in other HOME-ARP activities are eligible for supportive services under this Notice in accordance with policies and procedures developed by the PJ. These policies and procedures should identify the length of time that program participants may be served by HOME-ARP TBRA and/or HOME ARP rental housing before they will no longer be eligible as a qualifying population for purposes of this section. 2. Client Selection: HOME-ARP funds may only be used to provide supportive services to individuals or families that meet the definition of a qualifying population in Section IV.A of this Notice. PJs must develop policies and procedures for the selection of program participants for services under this section of the Notice that comply with Section IV.C and this section of this Notice. 3. Eligible Supportive Services under HOME-ARP: There are three categories specifically included as supportive services under HOME-ARP: a. McKinney-Vento Supportive Services: McKinney-Vento Supportive Services under HOME-ARP are adapted from the services listed in section 401(29) of McKinney- Vento. b. Homelessness Prevention Services: HOME-ARP Homelessness Prevention Services are adapted from eligible homelessness prevention services under the regulations at 24 CFR 576.102, 24 CFR 576.103, 24 CFR 576.105, and 24 CFR 576.106, and are revised, supplemented, and streamlined in Section VI.D.4.c.i below. c. Housing Counseling Services: Housing counseling services under HOME-ARP are those consistent with the definition of housing counseling and housing counseling services defined at 24 CFR 5.100 and 5.111, respectively, except where otherwise noted. The requirements at 24 CFR 5.111 state that any housing counseling, as defined in 24 CFR 5.100, required under or provided in connection with any program administered by HUD shall be provided only by organizations and counselors certified by the Secretary under 24 CFR part 214 to provide housing counseling, consistent with 12 U.S.C. 1701x. 1 The Consolidated Appropriations Act, 2021 (P.L. 116-260) enacted changes that renumbered section 401(27) to (29) of McKinney-Vento. 43 HUD-approved Housing Counseling Agencies can be found on HUD’s website at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/hcc. Program requirements and administration under 24 CFR part 214 apply to the provision of HOME-ARP Housing Counseling supportive services except those provisions related to current homeowners do not apply. Eligible HOME-ARP topics under Housing Counseling include but are not limited to the following examples: Rental Housing Counseling Topics (24 CFR 214.300(e)(4)) Pre-Purchase Homebuying Topics (24 CFR 214.300(e)(1)) Homeless Services Topics (24 CFR 214.300(e)(5)) HUD rental and rent subsidy programs Advice regarding readiness and preparation Homeless assistance information regarding emergency shelter Other federal, state, or local assistance Federal Housing Administration insured financing Other emergency services Fair housing Housing selection and mobility Transitional housing Rental search assistance Housing search assistance Referral to local, state, and federal resources (24 CFR 214.300(b)(2)) Landlord tenant laws Fair housing and predatory lending Lease terms Budgeting and credit Rent delinquency Loan product comparison Referrals to local, state, and federal resources Purchase procedures and closing costs Referrals to local, state, and federal resources Housing Counseling surrounding the following topics are ineligible under HOME-ARP:  Resolving or preventing mortgage delinquency, including, but not limited to default and foreclosure, loss mitigation, budgeting, and credit;  Home maintenance and financial management for homeowners, including, but not limited to: Escrow funds, budgeting, refinancing, home equity, home improvement, utility costs, energy efficiency, rights and responsibilities of homeowners, and reverse mortgages. In accordance with 24 CFR 214.300(a)(2), housing counselors must establish an action plan for each participating qualifying individual or family. Additionally, as per 24 CFR 44 214.300(c), housing counselors must also make reasonable efforts to have follow-up communications with participating qualifying individuals, when possible, to assure that the individual or family is progressing toward the housing goal established in the plan, to modify or terminate housing counseling, and to learn and report outcomes. 4. Eligible Costs of Supportive Services for Qualifying Individuals and Families: HOME- ARP funds may be used to pay eligible costs associated with the HOME-ARP supportive services activity in accordance with the requirements in this Notice. Eligible costs that may be paid using HOME-ARP funds are limited to only those identified in Section VI.D.4.c below. Any ineligible costs paid using HOME-ARP funds must be repaid in accordance with the requirements of this Notice. HUD has used its discretion in ARP to include eligible costs for supportive services that are necessary to assist the qualifying populations, prevent homelessness, or to enable qualifying households to obtain and maintain housing. The list of eligible costs associated with McKinney-Vento Supportive Services and Homelessness Prevention Services is in Section VI.D.4.c.i of this Notice. While all qualifying households are eligible to receive supportive services under this activity, the PJ must establish requirements for documenting eligible costs for an individual or family in a qualifying population (as defined in Section IV.A of this Notice) as McKinney-Vento supportive services, homelessness prevention services, or Housing Counseling. If a person is homeless, then the person is eligible to be provided the supportive services as McKinney-Vento supportive services for the costs allowable in Section VI.D.4.c below. If a person is housed and the supportive services are intended to help the program participant regain stability in the program participant’s current permanent housing or move into other permanent housing to achieve stability in that housing then the person is eligible for homelessness prevention services for the costs allowable in Section VI.D.4.c.i below. Housing Counseling services may be provided regardless of whether a person is homeless or currently housed. PJs must document in their files which types of supportive services they wish to offer program participants. If PJs are using a supportive services provider, PJs must document in their written agreements with supportive service providers whether they are authorizing McKinney-Vento supportive services, homelessness prevention services, Housing Counseling services or some combination of the three. Only the supportive services that are authorized in the written agreement with the supportive service provider may be provided to program participants by that supportive service provider and only program participants that are eligible for those supportive services may be served. As such, supportive services providers must demonstrate through their documentation that the individuals served were eligible to receive the supportive services that were authorized under the written agreement in order for those costs to be eligible. 45 Consistent with the requirements in this section, the PJ may set a maximum dollar amount that a program participant may receive for each type of service described in Section VI.D.4.c. below and may also set a maximum period for which a program participant may receive any of the types of assistance or services. a. Oversight of Eligible Costs: All supportive service costs paid for by HOME-ARP must comply with the requirements of this Notice, including requirements in 2 CFR part 200, subpart E, Cost Principles that require costs be necessary and reasonable. If a qualifying household is already receiving the same eligible supportive service or has been approved to receive the same service through another program or provider, the program participant does not have a need for the HOME-ARP service and the costs related to the service do not comply with the Cost Principles. The PJ is responsible for establishing requirements that allow a program participant to receive only the HOME-ARP services needed so there is no duplication of services or assistance in the use of HOME-ARP funds for supportive services. This may include the use of systems such as Homeless Management Information Systems in coordination with local supportive service providers, CoCs, and other nonprofit organizations. b. Direct provision of services: PJs contracting with service providers engaged directly in the provision of services under the HOME-ARP eligible supportive services categories, shall have written agreements or contracts that comply with the requirements of this Notice and, to the extent practicable, enter into agreements or contracts in amounts that cover the actual total program costs and administrative overhead to provide the services contracted. If the services outlined in paragraph c. below are being directly delivered by the PJ or a subrecipient, the following costs are eligible project delivery costs for those services:  the costs of labor or supplies and materials incurred by the PJ or subrecipient in directly providing supportive services to program participants.  the salary and benefit packages of the PJ and subrecipient staff who directly deliver the services. These project delivery costs must be attributable to the identifiable objective of the service delivered, otherwise they are administrative costs of the PJ or subrecipient. c. Eligible Costs: i. Eligible Costs for McKinney Vento Supportive Services and Homelessness Prevention Services: Eligible costs for supportive services under either of these two categories include costs associated with the following services: (A) Child care: The costs of child care for program participants, including providing meals and snacks, and comprehensive and coordinated developmental activities, are eligible. The child care center must be licensed by the jurisdiction in which it operates in order for its costs to be eligible. The following conditions also apply: 46  Children must be under the age of 13 unless the children have a disability.  Children with a disability must be under the age of 18. (B) Education services: The costs of improving knowledge and basic educational skills are eligible costs including:  Instruction or training in consumer education, health education, substance abuse prevention, literacy, English as a Second Language, and General Educational Development (GED).  Screening, assessment, and testing; individual or group instruction; tutoring; provision of books, supplies, and instructional material; counseling; and referral to community resources. (C) Employment assistance and job training: The costs of establishing and/or operating employment assistance and job training programs are eligible, including classroom, online and/or computer instruction, on-the-job instruction, services that assist individuals in securing employment, acquiring learning skills, and/or increasing earning potential. The cost of providing reasonable stipends to program participants in employment assistance and job training programs is also an eligible cost.  Learning skills include those skills that can be used to secure and retain a job, including the acquisition of vocational licenses and/or certificates.  Services that assist individuals in securing employment consist of:  Employment screening, assessment, or testing;  Structured job skills and job-seeking skills;  Special training and tutoring, including literacy training and pre- vocational training;  Books and instructional material;  Counseling or job coaching; and  Referral to community resources. (D) Food: The cost of providing meals or groceries to program participants is eligible. (E) Housing search and counseling services: Costs of assisting eligible program participants to locate, obtain, and retain suitable housing are eligible. Services are:  Development of an action plan for locating housing;  Housing search;  Tenant counseling;  Securing utilities;  Making moving arrangements;  Outreach to and negotiation with owners;  Assistance submitting rental applications and understanding leases;  Assessment of housing for compliance with HOME-ARP requirements for TBRA assistance in Section VI.C of this Notice and financial 47 assistance for short-term and medium-term rental payments provided under Section VI.D.4.c.i.(R) below;  Assistance obtaining utilities; and  Tenant counseling;  Mediation with property owners and landlords on behalf of eligible program participants;  Credit counseling, accessing a free personal credit report, and resolving personal credit issues; and  Payment of rental application fees;  Other Housing counseling costs, as defined in 24 CFR 5.100, funded with or provided in connection with grant funds must be carried out in accordance with 24 CFR 5.111. Please Note: When PJs or subrecipients provide housing services to eligible persons that are incidental to a larger set of holistic case management services, these services do not meet the definition of Housing counseling, as defined in 24 CFR 5.100, and therefore are not required to be carried out in accordance with the certification requirements of 24 CFR 5.111. (F) Legal services: Eligible costs are the fees charged by licensed attorneys and by person(s) under the supervision of licensed attorneys, for advice and representation in matters that interfere with a qualifying individual or family's ability to obtain and retain housing.  Eligible subject matters are child support; guardianship; paternity; emancipation; legal separation; orders of protection and other legal remedies for victims of domestic violence, dating violence, sexual assault, human trafficking, and stalking; appeal of veterans and public benefit claim denials; landlord-tenant disputes; and the resolution of outstanding criminal warrants; landlord/tenant matters, provided that the services must be necessary to resolve a legal problem that prohibits the program participant from obtaining permanent housing or will likely result in the program participant losing the permanent housing in which the program participant currently resides.  Legal services for immigration and citizenship matters and for issues related to mortgages and homeownership are ineligible. Retainer fee arrangements and contingency fee arrangements are prohibited.  Services may include client intake, receiving and preparing cases for trial, provision of legal advice, representation at hearings, and counseling.  Fees based on the actual service performed (i.e., fee for service) are also eligible, but only if the cost would be less than the cost of hourly fees. Filing fees and other necessary court costs are also eligible. If the subrecipient is a legal services provider and performs the services itself, the eligible costs are the subrecipient's employees' salaries and other costs necessary to perform the services. 48 (G) Life skills training: The costs of teaching critical life management skills that may never have been learned or have been lost during the course of physical or mental illness, domestic violence, dating violence, sexual assault, stalking, human trafficking, substance abuse, and homelessness are eligible. These services must be necessary to assist the program participant to function independently in the community. Life skills training includes:  the budgeting of resources and money management, household management, conflict management, shopping for food and other needed items, nutrition, the use of public transportation, and parent training. (H) Mental health services: Eligible costs are the direct outpatient treatment of mental health conditions that are provided by licensed professionals.  Mental health services are the application of therapeutic processes to personal, family, situational, or occupational problems in order to bring about positive resolution of the problem or improved individual or family functioning or circumstances. Problem areas may include family and marital relationships, parent-child problems, or symptom management.  Services are crisis interventions; counseling; individual, family, or group therapy sessions; the prescription of psychotropic medications or explanations about the use and management of medications; and combinations of therapeutic approaches to address multiple problems. (I) Outpatient health services: Eligible costs are the direct outpatient treatment of medical conditions when provided by licensed medical professionals including:  Providing an analysis or assessment of a program participant’s health problems and the development of a treatment plan;  Assisting program participants to understand their health needs;  Providing directly or assisting program participants to obtain and utilize appropriate medical treatment;  Preventive medical care and health maintenance services, including in- home health services and emergency medical services;  Provision of appropriate medication;  Providing follow-up services; and  Preventive and non-cosmetic dental care. (J) Outreach services: The costs of activities to engage qualified populations for the purpose of providing immediate support and intervention, as well as identifying potential program participants, are eligible.  Eligible costs include the outreach worker's transportation costs and a cell phone to be used by the individual performing the outreach.  Costs associated with the following services are eligible: initial assessment; crisis counseling; addressing urgent physical needs, such as providing meals, blankets, clothes, or toiletries; actively connecting and providing people with information and referrals to homeless and 49 mainstream programs; and publicizing the availability of the housing and/or services provided within the PJ’s geographic area. (K) Substance abuse treatment services: Eligible substance abuse treatment services are designed to prevent, reduce, eliminate, or deter relapse of substance abuse or addictive behaviors and are provided by licensed or certified professionals. The costs include:  Program participant intake and assessment;  Outpatient treatment;  Group and individual counseling  Drug testing;  Inpatient detoxification and other inpatient drug or alcohol treatment are ineligible. (L) Transportation: Eligible costs are:  The costs of program participant's travel on public transportation or in a vehicle provided by the PJ or subrecipient to and from medical care, employment, childcare, or other services eligible under this Notice;  Mileage allowance for service workers to visit program participants and to carry out housing inspections;  The cost of purchasing or leasing a vehicle in which staff transports program participants and/or staff serving program participants;  The cost of gas, insurance, taxes, and maintenance for the vehicle;  The costs of PJ or subrecipient staff to accompany or assist program participants to utilize public transportation; and  If public transportation options are not sufficient within the area, the PJ may make a one-time payment on behalf of a program participant needing car repairs or maintenance required to operate a personal vehicle, subject to the following:  Payments for car repairs or maintenance on behalf of the program participant may not exceed 10 percent of the Blue Book value of the vehicle (Blue Book refers to the guidebook that compiles and quotes prices for new and used automobiles and other vehicles of all makes, models, and types);  Payments for car repairs or maintenance must be paid by the PJ or subrecipient directly to the third party that repairs or maintains the car; and  PJs or subrecipients may require program participants to share in the cost of car repairs or maintenance as a condition of receiving assistance with car repairs or maintenance.  The PJ must establish policies and procedures surrounding payments for the cost of gas, insurance, taxes, the one-time payment for car repairs or maintenance described above, and maintenance for vehicles of program participants. Such costs must be limited to program participants with the inability to pay for such costs and who, without such assistance, would not be able to participate in eligible services under this Section VI.D.4.c.i. 50 (M) Case management: The costs of assessing, arranging, coordinating, and monitoring the delivery of individualized services to meet the needs of the program participant(s) are eligible costs. PJs and subrecipients providing these supportive services must have written standards for providing the assistance. Eligible costs are those associated with the following services and activities:  Conducting the initial evaluation, including verifying and documenting eligibility, for individuals and families applying for supportive services;  Counseling;  Developing, securing, and coordinating services;  Using a centralized or coordinated assessment system that complies with the requirements of Section IV.C of the Notice;  Obtaining federal, State, and local benefits;  Monitoring and evaluating program participant progress;  Providing information and referrals to other providers;  Providing ongoing risk assessment and safety planning with victims of domestic violence, dating violence, sexual assault, stalking, and human trafficking;  Developing an individualized housing and service plan, including planning a path to permanent housing stability; and  Conducting re-evaluations of the program participant's eligibility and the types and amounts of assistance the program participant needs. (N) Mediation: HOME-ARP funds may pay for mediation between the program participant and the owner or person(s) with whom the program participant is living, provided that the mediation is necessary to prevent the program participant from losing permanent housing in which the program participant currently resides. (O) Credit repair: HOME-ARP funds may pay for credit counseling and other services necessary to assist program participants with critical skills related to household budgeting, managing money, accessing a free personal credit report, and resolving personal credit problems. This assistance does not include the payment or modification of a debt. (P) Landlord/Tenant Liaison: Costs of liaison services between property managers/owners and program participants are eligible HOME-ARP costs and may include:  Landlord outreach;  Physical inspections and rent reasonable studies as needed to secure units;  Rental application fees and security deposits for clients, in accordance with the financial assistance costs requirements in (R);  Mediation services in (N) for housing issues that may arise between owner, property manager, or other residents and clients; 51  Coordination or assistance with the provision of other HOME-ARP eligible services to assist clients to maintain permanent housing. (Q) Services for special populations: HOME-ARP funds may be used to provide services for special populations, such as victim services, so long as the costs of providing these services are eligible under this section. The term victim services means services that assist program participants who are victims of domestic violence, dating violence, sexual assault, stalking, or human trafficking including services offered by rape crisis centers and domestic violence shelters, and other organizations with a documented history of effective work concerning domestic violence, dating violence, sexual assault, stalking, or human trafficking. (R) Financial assistance costs: HOME-ARP funds may be used to pay housing owners, utility companies, and other third parties for the following costs, as applicable:  Rental application fees: Rental housing application fee that is charged by the owner to all applicants.  Security deposits: A security deposit that is equal to no more than 2 months’ rent. This assistance is separate and distinct from the provision of financial assistance for First and Last Month’s rent provided under this section and cannot be used to duplicate those costs.  Utility deposits: HOME-ARP funds may pay for a standard utility deposit or initiation fee required by the utility company or owner (if owner-paid utilities are provided) for all program participants for the following utilities:  Gas  Electric  Water  Sewer  Utility payments: HOME-ARP funds may pay for up to 24 months of utility payments per program participant, per service, including up to 6 months of utility payments in arrears, per service. A partial payment of a utility bill counts as one month. This assistance may only be provided if the program participant or a member of the same household has an account in his or her name with a utility company or proof of responsibility to make utility payments. Eligible utility services are gas, electric, water, and sewage. No program participant shall receive more than 24 months of utility assistance within any 3-year period.  Moving costs: HOME-ARP funds may pay for moving costs, such as truck rental or hiring a moving company. This assistance may include payment of temporary storage fees for up to 3 months, provided that the fees are accrued after the date the program participant begins receiving assistance under this section of the Notice and before the program participant moves into permanent housing. Payment of temporary storage fees in arrears is not eligible. 52  First and Last month's rent: If necessary to obtain housing for a program participant, HOME-ARP funds may be used to make a pre-payment of the first and last month's rent under a new lease to the owner at the time the owner is paid the security deposit for the program participant’s tenancy in the housing. This assistance must not exceed two month's rent and must be tracked for purposes of determining the total short- and medium-term financial assistance for rent that the program participant may receive. This assistance is separate and distinct from financial assistance for Security Deposits provided under this section and cannot be used to duplicate those costs.  Payment of rental arrears: HOME-ARP funds may be used for a one- time payment for up to 6 months of rent in arrears, including any late fees or charges on those arrears, if necessary for the household to maintain their existing housing or, for those without housing, if necessary to remove a demonstrated barrier to obtaining housing. (S) Short-term and medium-term financial assistance for rent: Subject to the following conditions, a PJ may provide a program participant with short-term or medium-term financial assistance for rent, provided that the total financial assistance provided, including any pre-payment of first and last month’s rent as described above, does not exceed 24 months of rental payments over any 3-year period.  Short-term means up to 3 months.  Medium-term means more than 3 months but not more than 24 months.  The PJ may make rental payments only to an owner with whom the PJ has entered into a financial assistance agreement for rental payment. The financial assistance agreement must set forth the terms under which rental payments will be provided, including the requirements that apply under this Notice. The financial assistance agreement must provide that, during the term of the agreement, the owner must give the PJ a copy of any notice to the program participant to vacate the housing unit or any complaint used under State or local law to commence an eviction action against the program participant. The owner must serve written notice upon the program participant at least 30 days before termination of tenancy specifying the grounds for the action. Each financial assistance agreement that is executed or renewed must comply with the requirements in 24 CFR 92.359.  The PJ must make timely payments to each owner in accordance with the financial assistance agreement. The financial assistance agreement must contain the same payment due date, grace period, and late payment penalty requirements as the program participant's lease. The PJ is solely responsible for paying late payment penalties that it incurs with non- HOME-ARP funds.  Rental payments cannot be provided unless the rent does not exceed the Fair Market Rent established by HUD, as provided under 24 CFR 53 part 888, and complies with HUD's standard of rent reasonableness, as established under 24 CFR 982.507.  Each program participant receiving financial assistance for rental payments must have a legally binding, written lease for the rental unit, unless the assistance is solely for rental arrears. The lease must be between the owner and the program participant. Where the financial assistance is solely for rental arrears, an oral agreement may be accepted in place of a written lease, if the agreement gives the program participant an enforceable leasehold interest under state law and the agreement and rent owed are sufficiently documented by the owner's financial records, rent ledgers, or canceled checks. New leases must have an initial term of 1 year unless a shorter period is agreed upon by the program participant and owner. The lease requirements in 24 CFR 92.359 apply to this financial assistance.  PJs must establish requirements to prevent the provision of short- or medium-term financial assistance for rent for the same period for which a program participant is receiving rental assistance or living in housing provided with ongoing assistance (such as project-based rental assistance or operating subsidies).  If a program participant receiving financial assistance for short- or medium-term rental payments under this section meets the conditions for an emergency transfer under 24 CFR 5.2005(e), HOME-ARP funds may be used to pay amounts owed for breaking a lease to effectuate an emergency transfer. These costs are not subject to the 24-month limit on rental payments. Ineligible costs - Financial assistance cannot be provided to a program participant who is receiving the same type of assistance through other public sources. Financial assistance also cannot be provided to a program participant who has been provided with replacement housing payments under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (42 USC 4601 et seq.) and its implementing regulations at 49 CFR part 24, or Section 104(d) of the Housing and Community Development Act of 1974 (42 USC 5304(d) and its implementing regulations at 24 CFR part 42, during the period of time covered by the replacement housing payments. ii. Eligible Costs Associated with Housing Counseling under 24 CFR 5.100 and 5.111: Costs associated with housing counseling services as defined at 24 CFR 5.100 and 5.111 are eligible under HOME-ARP. As homeowner assistance and related services are not eligible HOME-ARP activities, costs for the provision of services related to mortgages and homeownership to existing homeowners are also not eligible under HOME-ARP. If a program participant is a candidate for homeownership, costs associated with pre-purchase homebuying counseling, education and outreach are eligible under HOME-ARP. Eligible costs are those costs associated with the services listed in 24 CFR part 214 and include, but are not limited to: 54 (A) Staff salaries and overhead costs of HUD-certified housing counseling agencies related to directly providing eligible housing counseling services to HOME-ARP program participants; (B) Development of a housing counseling workplan; (C) Marketing and outreach; (D) Intake; (E) Financial and housing affordability analysis; (F) Action plans that outline what the housing counseling agency and the client will do to meet the client's housing goals and that address the client's housing problem(s); (G) Follow-up communication with program participants. 5. Termination of assistance to program participants: a. Termination of assistance: The PJ may terminate assistance to a program participant who violates program requirements or conditions of occupancy or no longer needs the services as determined by the PJ. Termination under this section does not bar the PJ from providing further assistance at a later date to the same individual or family under this Notice. b. Due process: The PJ must establish policies and procedures for termination of assistance to program participants. In terminating assistance to a program participant, the PJ must provide a formal process that recognizes the rights of individuals receiving assistance under the due process of law. This process, at a minimum, must consist of: i. Providing the program participant with a written copy of the program rules and the termination process before the participant begins to receive assistance; ii. Written notice to the program participant containing a clear statement of the reasons for termination; iii. A review of the decision, in which the program participant is given the opportunity to present written or oral objections before a person other than the person (or a subordinate of that person) who made or approved the termination decision; and iv. Prompt written notice of the final decision to the program participant. During this process, the PJ must provide effective communication and accessibility for individuals with disabilities, including the provision of reasonable accommodations. Similarly, the PJ must provide meaningful access to persons with LEP. 6. Commitment: For supportive services, commitment means that before disbursing any HOME-ARP funds to any entity, the PJ executed a legally binding written agreement that complies with HOME-ARP requirements with the contractor or subrecipient providing the supportive service (that includes the date of the signature of each person signing the agreement). 7. Policies and Procedures: PJs must establish the following policies and procedures in compliance with this notice: 55 a. Tenant selection procedures in accordance with Section IV.C.2 and this section; b. Eligibility of program participants in other HOME-ARP activities for supportive services under Section VI.D.4.c.i above including the length of time that program participants may be served by HOME-ARP TBRA and/or HOME ARP rental housing before they will no longer be eligible as a qualifying population for purposes of this section; c. If the PJ chooses to set maximum amounts and/or maximum periods for assistance or services, the maximum dollar amount that a program participant may receive for each type of service described in Section VI.D.4.c.i above and/or maximum periods for which a program participant may receive any of the types of assistance or services under this section; d. Documentation of eligible costs; e. Requirements that allow a program participant to receive only the HOME-ARP services needed so there is no duplication of services or assistance in the use of HOME-ARP funds for supportive services; f. Payments for the cost of gas, insurance, taxes, the one-time payment for car repairs or maintenance described above, and maintenance for vehicles of program participants; g. Financial assistance for short-term and medium-term rental payments under this Notice, including requirements to prevent a duplication of rental or financial assistance provided to a program participant; h. Housing stability case management; and i. Termination of assistance to program participants. 8. Project Completion: Project completion for a HOME-ARP Supportive Services project means the final drawdown has been disbursed for the project. E. Acquisition and Development of Non-Congregate Shelter A non-congregate shelter (NCS) is one or more buildings that provide private units or rooms as temporary shelter to individuals and families and does not require occupants to sign a lease or occupancy agreement. HOME-ARP funds may be used to acquire and develop HOME-ARP NCS for individuals and families in qualifying populations. This activity may include but is not limited to the acquisition of land and construction of HOME-ARP NCS or acquisition and/or rehabilitation of existing structures such as motels, hotels, or other facilities to be used for HOME-ARP NCS. HOME-ARP funds may not be used to pay the operating costs of HOME- ARP NCS. Consequently, PJs must consider the availability of ongoing operating funds for the HOME-ARP NCS so that the HOME-ARP NCS can remain viable through the restricted use period specified in this Notice. 56 During the restricted use period, HOME-ARP NCS may:  Remain as HOME-ARP NCS in compliance with the requirements of this Notice.  Be used as a non-congregate emergency shelter under the Emergency Solutions Grants (ESG) program (Subtitle B of title IV of the McKinney-Vento Homeless Assistance Act) (42 USC 11371 et seq.), in which case the non-congregate shelter must be operated in compliance with all requirements at 24 CFR part 576 that apply when ESG funds are provided for operating costs or essential services in the shelter. During any period for which ESG funds are provided, the applicable ESG requirements shall govern in the event of any conflict with HOME-ARP requirements.  Be converted to permanent affordable housing according to the requirements established in Section VI.E.11 of this Notice.  Be converted to permanent housing as defined in Subtitle C of title IV of the McKinney- Vento Homeless Assistance Act (42 USC 11381 et seq.) according to requirements of this Notice and 24 CFR part 578. 1. Admission and Occupancy: HOME-ARP NCS units may only be occupied by individuals or families that meet the criteria for one or more of the qualifying populations as defined in Section IV.A. of this Notice. Where applicable, occupancy of NCS units by qualifying populations must be in accordance with the requirements in Section IV.C of this Notice. The PJ must not allow qualifying populations to be charged occupancy fees or other charges to occupy a HOME-ARP NCS unit unless the PJ determines such fees and charges to be customary and reasonable and the charges comply with 24 CFR 578.77(b). To ensure that access to HOME-ARP NCS by qualifying populations is effectively integrated with other assistance and services, PJs are encouraged to incorporate each HOME-ARP NCS into the CE established by the CoC(s) for the area the NCS is funded to serve, provided that the CE is used in accordance with Section IV.C of this Notice. Whether or not packaged with NCS funding, HOME-ARP supportive services may also be provided as needed to qualifying individuals and families served by the HOME-ARP NCS in accordance with the requirements contained in Section VI.D of this Notice. No individual or family may be denied admission to or removed from a HOME-ARP NCS unit on the basis or as a direct result of the fact that the individual or family is or has been a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking if the individual or family meets the criteria of one of the qualifying populations. 2. Eligible Activities: HOME-ARP funds may be used to acquire and/or rehabilitate or construct HOME-ARP NCS units to serve qualifying populations. Acquisition of vacant land or demolition of existing structures may be undertaken only as part of a HOME-ARP NCS project. HOME-ARP NCS units acquired and/or developed with HOME-ARP funds must meet the requirements of this Notice, i.e., be used as HOME-ARP NCS or used as emergency shelter under ESG for the restricted use period established in Section VI.E.9 of this Notice. 3. Eligible Costs: HOME-ARP funds may be used for actual costs of acquiring NCS or developing HOME-ARP NCS as follows: 57 a. Acquisition Costs: Costs to acquire improved or unimproved real property. b. Demolition Costs: Costs of demolishing existing structures for the purpose of developing HOME-ARP NCS. c. Development Hard Costs: Costs identified in 24 CFR 92.206(a) to rehabilitate or construct HOME-ARP NCS units, except costs must be for meeting the physical standards established in Section VI.E.7 of this Notice. d. Site Improvements: Costs to make improvements to the project site, including installation of utilities or utility connections, and the construction or rehabilitation of laundry, community facilities, on-site management, or supportive service offices. e. Related Soft Costs: Reasonable and necessary costs incurred by the PJ and owner associated with the financing, acquisition, and development of HOME-ARP NCS projects, including costs identified in 24 CFR 92.206(d) with the following exceptions: i. Costs to provide information services such as affirmative marketing to prospective homeowners and tenants are not eligible. ii. Costs of funding an initial operating deficit reserve are not eligible. iii. Costs of project-specific assistance to community housing development organizations, including technical assistance and site control loans or seed money loans as specified in 24 CFR 92.301 are not eligible. f. Replacement Reserve: Costs to capitalize a replacement reserve to pay the reasonable and necessary costs of replacing major systems and their components whose useful life will end during the restricted use period. Major systems include structural support, roofing, cladding, and weatherproofing, plumbing, electrical and HVAC. The costs of replacing major systems must be determined through a Capital Needs Assessment or documented in writing after an inspection by the PJ or PJ-selected contractor to assess the remaining useful life of major systems expected upon completion of the HOME- ARP NCS project. The costs of a replacement reserve must be included in the project budget in the written agreement along with a list of major systems to be replaced with the reserve and projected replacement schedule during the restricted use period (i.e., reserve for replacement analysis). Rehabilitation planned to be completed with HOME- ARP NCS reserve funds at a later date must be included in IDIS as a rehabilitation activity at initial commitment. 4. Prohibited Costs: HOME-ARP funds may not be used to: a. Pay any operating costs of a HOME-ARP NCS project. b. Provide additional HOME-ARP investment in a HOME-ARP NCS project during the restricted use period, except that additional HOME-ARP funds can be invested in the project up to one year after project completion in IDIS for eligible costs. 58 c. Pay costs of a conversion of HOME-ARP NCS as described in Section VI.E.11 of this Notice. d. Provide non-Federal matching contributions required under any other Federal program. e. Provide assistance for uses authorized under section 9 of the U.S. Housing Act of 1937 (42 U.S.C. 1437g) (Public Housing Capital and Operating Funds). f. Provide assistance to eligible low-income housing under 24 CFR part 248 (Prepayment of Low-Income Housing Mortgages). g. Pay for the acquisition of property owned by the PJ, except for property acquired by the PJ with HOME-ARP NCS funds, or property acquired in anticipation of carrying out a HOME-ARP NCS project. h. Pay delinquent taxes, fees, or charges on properties to be assisted with HOME-ARP NCS funds. i. Pay for any cost that is not eligible under this Notice. 5. Commitment: PJs must commit HOME-ARP funds before disbursing funds for a HOME- ARP NCS project. HOME-ARP funds are committed to a HOME-ARP NCS project when the PJ executes a legally binding written agreement that meets the requirements in this Notice. If the project is an acquisition-only activity, the PJ may commit HOME-ARP funds if it reasonably expects the project will be operated as HOME-ARP NCS within 6 months of the date of acquisition. Acquisition-only HOME-ARP NCS projects may be performed when the PJ reasonably determines that the units acquired will not require rehabilitation to meet the property standards in Section VI.E.7 of this Notice. If the project is not in active use as HOME-ARP NCS within 6 months of the acquisition, HUD may require the PJ to submit a schedule for placing the project into operation within a period determined by HUD or may require the PJ to repay the funds to its HOME-ARP Treasury Account. For projects that will involve rehabilitation or new construction with or without acquisition, the PJ may commit HOME-ARP funds if it reasonably expects development to begin within 12 months of the date of commitment. 6. Project Development Due Diligence: HOME-ARP NCS projects must meet the requirements of this Notice for the restricted use period. Consequently, before awarding HOME-ARP funds to a HOME-ARP NCS project, PJs must determine that acquisition and/or development is financially feasible. The PJ is responsible for maintaining continued operation of the NCS in accordance with this Notice throughout the restricted use period. Therefore, the PJ must consider whether the HOME-ARP NCS project has secured or has a high likelihood of securing operating funding because operating costs cannot be paid with HOME-ARP. 59 PJs must assess HOME-ARP NCS projects, including a review of information from the owner and/or developer that demonstrates the project’s financial feasibility throughout the restricted use period. Before awarding funds for HOME-ARP NCS, the PJ must:  Require that the developer submit evidence of appropriate skills and experience related to the development of shelters or similar facilities.  Require the owner to submit evidence of prior experience with operating shelters.  Require an acquisition or development budget, timeline, and sources and uses statement for the acquisition and/or development of the project be submitted for review.  Require the owner to submit a proposed operating budget, including secured sources for operating costs and any operating gap that will require additional assistance. If there is a gap in the operating budget, the PJ should require the owner to submit a plan for securing additional private, local, state, or Federal funding sufficient for successful operation of the project. Before committing funds, PJs should also determine whether the owner intends to continue operating the project as HOME-ARP NCS or emergency shelter NCS under ESG for the entire full restricted use period or plans to convert the HOME-ARP NCS to permanent affordable housing or CoC permanent housing during the restricted use period, once the minimum use period for HOME-ARP NCS established in this section is completed. If a HOME-ARP NCS project owner intends to convert the project to CoC permanent housing or permanent supportive housing during the restricted use period, the PJ is encouraged to pursue partnership and leveraging opportunities with the CoC early in the planning stage of a HOME-ARP NCS project. In such instances, the PJ should consider the physical design needs of an eventual conversion in its evaluation of the HOME-ARP NCS project. 7. Property and Habitability Standards: HOME-ARP NCS projects must meet the minimum HOME-ARP property standards prior to occupancy and the HOME-ARP NCS ongoing property standards throughout the restricted use period as described in this Notice. An “acquisition only” project must meet the HOME-ARP NCS minimum property standards described in paragraph a. below at the time of acquisition. If the project requires rehabilitation or repair to meet the minimum property standards, the project is considered acquisition and rehabilitation irrespective of the source of funds used for the rehabilitation or repair and must meet the NCS rehabilitation standards in paragraph b. below. In addition, PJs must meet the standards required in this Notice for rehabilitation or new construction, as applicable. The PJ must determine that construction contracts and documents describe the work to be completed in adequate detail to establish a basis for inspection to determine that all work was completed to contracted specifications and that the project met the HOME- ARP NCS property standards. Project classification as rehabilitation or new construction is determined by the PJs local code requirements based on specific work to be completed. PJs may also choose to adopt a standard that exceeds the minimum standards described here. The written agreement must impose the HOME-ARP NCS property standards or the PJ’s locally developed standards and require that the PJ or its representatives have access to the property to perform inspections during development and throughout the restricted use period. 60 a. Minimum HOME-ARP NCS Property Standards: All HOME-ARP NCS units and common areas must meet all applicable State and local codes, ordinances, and requirements and the applicable provisions of HUD’s Lead Safe Housing Rules at 24 CFR Part 35. In addition, all HOME-ARP NCS projects must meet the following minimum safety, sanitation, accessibility, and privacy standards: i. Must be structurally sound to protect occupants from the elements and not pose any threat to health and safety of the occupants. ii. Must be accessible in accordance with section 504 of the Rehabilitation Act (29 U.S.C. 794) and implementing regulations at 24 CFR part 8; the Fair Housing Act (42 U.S.C. 3601 et seq.) and implementing regulations at 24 CFR part 100; and Title II of the Americans with Disabilities Act (42 U.S.C. 12131 et seq.) and implementing regulations at 24 CFR part 35, all as applicable. iii. Must provide each individual or family with an acceptable, individual room to sleep which includes adequate space and security for themselves and their belongings. iv. Must have a natural or mechanical means of ventilation. The interior air must be free of pollutants at a level that might threaten or harm the health of occupants. v. Must have a water supply free of contamination. vi. Must have in-unit sanitary facilities that are in proper operating condition and are adequate for personal cleanliness and the disposal of human waste. vii. Must provide necessary heating/cooling facilities in proper operating condition. viii. Must have adequate natural or artificial illumination to permit normal indoor activities and support health and safety. There must be sufficient electrical sources to permit the safe use of electrical appliances. ix. Food preparation areas, if any, must contain suitable space and equipment to store, prepare, and serve food in a safe and sanitary manner. x. Must provide one working smoke detector and one working carbon monoxide detector in each unit. All smoke and carbon monoxide detectors and alarm systems must be designed for hearing-impaired residents. All public areas of the shelter must have at least one working smoke detector and one carbon monoxide detector. There must also be a second means of exiting the building in the event of fire or other emergency. Minimum HOME-ARP NCS Rehabilitation Standards: HOME-ARP NCS rehabilitation projects must meet all applicable State and local codes, ordinances, and requirements , or in the absence of such codes, International Residential Code or the International Building Code (as applicable), and must comply with the Lead Safe Housing Rule at 24 CFR Part 35. Additionally, PJs must consider the remaining useful life of major systems. PJs are encouraged to use a Capital Needs Assessment to determine the reasonable and necessary investment of HOME-ARP funding in rehabilitation projects and expected cost of ongoing replacement needs during the restricted use period. If HOME-ARP funding will capitalize a replacement reserve, the PJ must determine the remaining useful life of major systems through a Capital Needs Assessment or other PJ inspection documented in writing, in accordance with requirements for capitalized replacement reserve costs in VI.E.3. 61 Minimum HOME-ARP NCS New Construction Standards: HOME-ARP NCS projects that are newly constructed must meet all applicable State and local codes, ordinances, and requirements, or in the absence of such codes, the International Residential Code or the International Building Code (as applicable to the type of structure). HOME-ARP funds cannot be used to fund a replacement reserve for newly constructed HOME-ARP NCS. b. On-going Property Standards and Inspections: PJs must develop ongoing inspection procedures to verify that HOME-ARP NCS projects meet the minimum HOME-ARP NCS property standards established in this Notice throughout the restricted use period. A PJ’s inspection procedures must require annual inspections that are applied consistently to all HOME-ARP NCS projects. When deficiencies are identified, a follow-up inspection to verify that deficiencies are corrected must occur within 6 months. The PJ may establish a list of non-hazardous deficiencies for which correction can be verified by third party documentation (e.g., paid invoice or work order) rather than reinspection. If life-threatening deficiencies exist, the owner or operator of the HOME-ARP NCS must correct such deficiencies immediately. In such instances, the PJ must re-inspect to verify the deficiency has been corrected within 14 days. 8. Project Completion: Project Completion for HOME-ARP NCS means:  All necessary title transfer requirements and construction work has been performed;  The project complies with the requirements of this Notice, including the HOME- ARP NCS property standards as evidenced by a final inspection;  The project is actively operating as a HOME-ARP NCS;  Final drawdown of HOME-ARP funds has been disbursed; and  Project completion information is entered into IDIS. All HOME-ARP NCS projects must be completed within 4 years of the date of commitment of the HOME-ARP funds based on the date of the last signature on the written agreement. If the PJ fails to complete a project within 4 years of project completion, it must comply with the terminated project requirements at 24 CFR 92.205(e)(2). HOME-ARP NCS rehabilitation and new construction projects must begin operating as active shelters within 6 months after the date of completion of the construction work. If the HOME-ARP NCS project is not in use within 6 months, HUD may require the PJ to submit a schedule for placing the project into operation as an active shelter within a period determined by HUD or may require the PJ to repay the HOME-ARP funds to its HOME-ARP Treasury Account. 9. Restricted Use Period: HOME-ARP NCS projects must comply with the requirements of this Notice for not less than the restricted use period specified in this Notice. PJs must impose the HOME-ARP NCS requirements through a deed restriction, covenant running with the land, legally binding agreement restricting the use of the property and recorded on the property in accordance with State recordation laws, or other mechanism approved by HUD. The use restriction should not identify that the property is prioritized for victims of domestic violence, dating violence, sexual assault, stalking or human trafficking. This use restriction must require that the property is operated as HOME-ARP NCS or non-congregate emergency shelter under ESG for the required restricted use period except that HOME-ARP 62 NCS projects may be converted to permanent affordable housing or CoC permanent housing after being operated as HOME-ARP NCS for the applicable minimum use period prior to conversion as described in Section VI.E.11. If the HOME-ARP NCS is converted, the PJ must amend its use restriction to reflect the change in requirements for the remainder of the restricted use period. The restricted use period begins at project completion as defined in Section VI.E.8 of this Notice and must be imposed for at least the following periods: a. New Construction: Newly constructed HOME-ARP NCS units must be operated as HOME-ARP NCS units for qualifying populations for a restricted use period of 15 years, regardless of the amount of HOME-ARP funds invested in the project. b. Rehabilitation: HOME-ARP NCS units which receive any amount of HOME-ARP funds for rehabilitation but are not designated as new construction by the PJ’s state or local building code requirements must be operated as HOME-ARP NCS units for qualifying populations for a restricted use period of 10 years. c. Acquisition Only: Units acquired for use as HOME-ARP NCS that do not require rehabilitation for occupancy must serve the qualifying populations for a restricted use period of 10 years. d. PJs may impose longer restricted use periods but must require the project remain financially viable for the extended period. 10. Return of Replacement Reserve: HOME-ARP funds may capitalize a replacement reserve for HOME-ARP NCS projects performing rehabilitation as described in Section VI.E.3 of this Notice. Any unexpended HOME-ARP funds remaining in a project’s replacement reserve at the completion of the restricted use period or upon conversion must be used or returned as follows: a. If the HOME-ARP NCS project will continue to operate in accordance with the HOME- ARP NCS requirements and serve qualifying households beyond the HOME-ARP NCS restricted use period demonstrated by enforceable restrictions imposed by the PJ in accordance with Section VI.E.9, the project can retain the replacement reserve to pay reasonable and necessary costs of replacing major systems and their components. b. If the HOME-ARP NCS project will not continue to operate in accordance with the HOME-ARP NCS requirements because the NCS is being converted to either CoC permanent housing or permanent affordable housing as described in Section VI.E.11 of this Notice and the HOME-ARP grant is still open, the remaining HOME-ARP funds in the replacement reserve must be returned to the PJ’s HOME Investment Trust Fund Treasury account. c. If the HOME-ARP NCS grant has expired or is closed out, any remaining HOME-ARP funds in the replacement reserve must be deposited in the PJ’s local HOME account, 63 recorded as a program income receipt in IDIS and used for eligible costs under 24 CFR part 92. 11. Conversion of Non-Congregate Shelter to Rental Housing: The ARP authorizes the conversion of HOME-ARP NCS units into permanent housing under subtitle C of title IV of McKinney-Vento or permanent affordable housing as described in this section, during the restricted use period. No HOME-ARP funds may be used for conversion. The written agreement between the PJ and the owner of the HOME-ARP NCS project must describe conversion as a possible outcome of the HOME-ARP NCS project; specify the conditions under which conversion will be permitted; and require that the PJ approve any conversion in advance. a. Minimum Use Period: All HOME-ARP NCS projects must be operated as NCS for a minimum period of time prior to conversion. The minimum use period prior to conversion varies based on the original HOME-ARP NCS eligible activity undertaken and the amount of funds invested in the project. If the HOME-ARP NCS project involves rehabilitation, the minimum use period prior to conversion is based on the total cost of the rehabilitation as a percentage of the total appraised value of the improved property. A larger investment for rehabilitation will require operation as HOME-ARP NCS for a longer minimum use period prior to conversion. i. Acquisition Only: HOME-ARP NCS activities not requiring rehabilitation for occupancy must be operated as HOME-ARP NCS for no less than 3 years from project completion prior to conversion. ii. Moderate Rehabilitation: Occurs when an NCS HOME-ARP project requires rehabilitation and the total rehabilitation expenditure from all sources of less than 75 percent of the total appraised value of the improved property. HOME-ARP NCS projects that receive moderate rehabilitation must be operated as HOME-ARP NCS for no less than 5 years from project completion prior to conversion. iii. Substantial Rehabilitation: Occurs when an NCS HOME-ARP project requires rehabilitation and the total rehabilitation expenditure from all sources exceeds 75 percent of the total appraised value of the improved property. HOME-ARP NCS projects that receive substantial rehabilitation must be operated as HOME-ARP NCS for no less than 10 years from project completion before conversion. iv. New Construction: Any HOME-ARP NCS project defined by the PJ’s state or local code requirements as new construction must be operated as HOME-ARP NCS for no less than 10 years from project completion prior to conversion. Requirements for conversions vary depending on the type of conversion, as follows: b. Permanent Affordable Housing: During the HOME-ARP NCS restricted use period but only after the HOME-ARP NCS minimum use period, a PJ may provide written approval to convert the project from HOME-ARP NCS to permanent affordable housing (e.g., affordable multifamily rental housing, transitional housing) in accordance with the requirements prescribed in the PJ’s written agreement with the HOME-ARP NCS owner. 64 The converted permanent affordable housing project must meet the following requirements: i. Additional HOME-ARP Investment: The PJ is prohibited from investing additional HOME-ARP funds to pay for the cost of converting the project from HOME-ARP NCS to permanent affordable housing or to pay for operating the project as permanent affordable housing. However, the PJ must determine that adequate financial resources are committed to the project to bring it into compliance with the property standards of Section VI.B.11 of this Notice and maintain the financial feasibility of the project to be operated as permanent affordable housing for the qualifying populations throughout the remaining restricted use period. If permitting conversion of HOME-ARP NCS into permanent affordable housing, a PJ must develop and evaluate the project in accordance with standardized underwriting guidelines for conversion. At minimum, the PJ’s underwriting guidelines for conversion must include an examination of the sources and uses of funds for the conversion and a careful review of the project’s operating budget, including the assumptions, projections, and reasonably expected increases in expenses throughout the minimum compliance period defined in the section below, to determine that the project will remain financially feasible to serve the qualifying populations for the remainder of the restricted use period. The PJ may assist households living in affordable rental housing units in converted projects by providing HOME-ARP TBRA in accordance with Section VI.C of this Notice or financial assistance services in accordance with Section VI.D.4.c.i.R. ii. Minimum Compliance Period: The minimum compliance period for converted housing is the period that the housing must continue to comply with the requirements of this Notice and is equal to the balance of the HOME-ARP NCS restricted use period. A PJ may impose a longer compliance period but should plan for the project’s financial feasibility for the longer period. The PJ may not use HOME-ARP funds to provide operating assistance, including a capitalized operating reserve, to cover deficits during the minimum or an extended compliance period. The PJ must amend the use restriction for HOME-ARP NCS to reflect the conversion to permanent affordable housing. The provisions for imposing affordability requirements at 24 CFR 92.252(e)(1) through (e)(4) apply to the amended use restriction. In addition, the amended use restriction for the permanent affordable housing must be enforceable to maintain compliance with the requirements of this Notice for the minimum compliance period, including the following: (1) The same number of units that were operated as HOME-ARP NCS for qualifying populations must be restricted for and must be occupied by households that meet the definition of a qualifying population at the time of initial occupancy of the permanent affordable housing. The household’s contribution toward rent during this period must be affordable in accordance with Section VI.E.11 of this Notice. 65 (2) The units must comply with the ongoing property condition standards of 24 CFR 92.251(f) throughout the minimum compliance period as demonstrated by an on-site inspection within 12 months of project completion and an on-site inspection at least once every three years thereafter as required by 24 CFR 92.504(d)(ii). (3) Each household that occupies a HOME-ARP assisted rental unit must have an executed lease that complies with the tenant protections required in Section VI.B.18 of this Notice. iii. Property Standards: For the remaining restricted use period, the PJ must require that project owners maintain the housing as decent, safe and sanitary housing in good repair in accordance with the ongoing property condition standards of 24 CFR 92.251(f) as demonstrated by an on-site inspection at least once every three years in accordance with 24 CFR 92.504(d)(ii). iv. Tenant Contribution to Rent: The PJ must confirm that the qualifying household’s contribution to rent is affordable to the household based on a determination of the household’s income. If the household is receiving project-based or tenant-based rental assistance, it cannot contribute towards rent more than is permitted in accordance with the requirements of the applicable program. If a qualifying household cannot contribute to rent, or the contribution is insufficient to cover the unit rent, the PJ may provide HOME-ARP TBRA or supportive services to assist the qualifying household but may not provide operating cost assistance or fund an operating cost assistance reserve. v. Tenant Protections: Following conversion, each qualifying household that occupies a permanent affordable housing unit must have an executed lease or sublease that complies with the tenant protections requirements of this Notice. (1) Lease Requirement: There must be a lease between the qualifying household and the owner of the permanent affordable housing project or, if there is a sublease with a qualifying household, a lease between a HOME-ARP sponsor and the owner in accordance with 24 CFR 92.253(a). (2) Prohibited Lease Terms: The lease between the qualifying household and the owner, lease between HOME-ARP sponsor and the owner, and sublease between a HOME-ARP sponsor and qualifying household may not contain any of the prohibited lease terms specified in 24 CFR 92.253(b). (3) Termination of tenancy: An owner may not terminate the tenancy or refuse to renew the lease of a qualifying household (or of a HOME-ARP sponsor with a sublease with a qualifying household) in a permanent affordable housing unit except for serious or repeated violation of the terms and conditions of the lease; for violation of applicable Federal, State, or local laws, or for other good cause. An increase in the qualifying household’s income does not constitute good cause. 66 To terminate or refuse to renew tenancy, the owner must serve written notice upon the qualifying household and the HOME-ARP sponsor if the lease is between an owner and HOME-ARP sponsor, specifying the grounds for the action at least 30 days before termination of tenancy. In the case of a sublease, to terminate or refuse to renew tenancy of a qualifying household, the HOME-ARP sponsor, in accordance with the policy established by the PJ, must notify the PJ in advance of serving written notice to the qualifying household and must serve written notice upon the qualifying household at least 30 days before termination of tenancy, specifying the grounds for the action. vi. Coordinated Entry and Project-Specific Waitlists: On a project-by-project basis, the PJ must use the method of tenant selection in Section VI.B.19 of this Notice to select qualifying households for occupancy of permanent affordable housing. vii. Penalties for Noncompliance: The PJ must repay HOME-ARP funds invested in HOME-ARP NCS that was converted to permanent affordable housing if the permanent affordable housing does not comply with initial or ongoing requirements of this Notice during the compliance period. c. CoC Permanent Housing: During the HOME-ARP NCS restricted use period but only after the HOME-ARP NCS minimum use period, a PJ may permit the conversion of a HOME-ARP NCS project to permanent housing or permanent supportive housing under 24 CFR 578.43 (acquisition) and/or 24 CFR 578.45 (rehabilitation) of the CoC program regulations. Conversions may only occur in accordance with the requirements prescribed in the PJ’s written agreement with the HOME-ARP NCS owner. If conversion is approved by the PJ, the HOME-ARP NCS use restrictions must remain in place until the project is approved for CoC funding and the required CoC restrictions are imposed on the property. Conversion to CoC permanent housing or permanent supportive housing may serve the following eligible households as defined in 24 CFR 578.3, subject to any further eligibility conditions that may apply to the use of CoC Program funds to provide rental assistance in the housing or otherwise support the project:  Chronically homeless individuals  Homeless individuals or families PJs are prohibited from investing additional HOME-ARP funds to pay for the cost of converting the project to CoC permanent housing or permanent supportive housing. The CoC designates eligible applicants for grant funds under 24 CFR Part 578, which includes nonprofit organizations, States, local governments, and instrumentalities of State or local governments. For-profit entities are not eligible to apply for CoC grants or to be subrecipients of grant funds. Consequently, if a HOME-ARP NCS project owner intends to convert the project to CoC permanent housing or permanent supportive housing during the restricted use period, the PJ is encouraged to pursue partnership and leveraging opportunities with the CoC early in the planning stage of a HOME-ARP NCS 67 project. Additionally, PJs may provide supportive services or HOME-ARP TBRA to qualifying households that must move because of the conversion. (See Section VII.F.4.b for more information on relocations involving shelter occupants). F. Nonprofit Operating and Capacity Building Assistance A PJ may use up to 5 percent of its HOME-ARP allocation to pay operating expenses of CHDOs and other nonprofit organizations that will carry out activities with HOME-ARP funds. A PJ may also use up to an additional 5 percent of its allocation to pay eligible costs related to developing the capacity of eligible nonprofit organizations to successfully carry out HOME- ARP eligible activities. PJs may award operating expense assistance or capacity building assistance to a nonprofit organization if it reasonably expects to provide HOME-ARP funds to the organization for any of the eligible HOME-ARP activities within 24 months of the award. 1. Eligible Costs a. Operating Expense Assistance: Operating expenses are defined as reasonable and necessary costs of operating the nonprofit organization. These costs include employee salaries, wages and other employee compensation and benefits; employee education, training, and travel; rent; utilities; communication costs; taxes; insurance; equipment, materials, and supplies. HOME-ARP funds used for operating expenses must be used for the “general operating costs” of the nonprofit organization. These operating costs must not have a particular final cost objective, such as a project or activity, or must not be directly assignable to a HOME-ARP activity or project. For example, HOME-ARP funds for operating expenses may not be used for staffing costs to provide supportive services or develop HOME-ARP-rental housing (as operating costs to develop HOME-ARP rental housing are paid for by a developer fee which is a project delivery or soft cost). Because ARP does not permit any HOME-ARP funds to be used to operate a shelter, all costs related to operating a non-congregate shelter (e.g., allocable overhead and staffing costs, insurance, utilities) also cannot be paid with HOME-ARP funds. The actual costs of implementing a specific activity or project, including staff costs to deliver supportive services or administer HOME-ARP TBRA, are considered HOME- ARP project delivery costs or project soft costs and are not eligible costs under Nonprofit Operating and Capacity Building Assistance. HOME-ARP project delivery costs are those allowable costs incurred for implementing and carrying out eligible HOME-ARP projects or activities, such as supportive services. All project delivery costs are allocable to a HOME-ARP project, including direct project and related delivery costs integral to developing the project or providing the activity. HOME-ARP project delivery costs may be paid, if eligible, by HOME-ARP funds provided under a written agreement for the activity or project and must not be paid with nonprofit operating expense or capacity building assistance. 68 b. Capacity Building Assistance: Capacity building expenses are defined as reasonable and necessary general operating costs that will result in expansion or improvement of an organization’s ability to successfully carry out eligible HOME-ARP activities. Eligible costs include salaries for new hires including wages and other employee compensation and benefits; costs related to employee training or other staff development that enhances an employee’s skill set and expertise; equipment (e.g., computer software or programs that improve organizational processes), upgrades to materials and equipment, and supplies; and contracts for technical assistance or for consultants with expertise related to the HOME-ARP qualifying populations. 2. Limitations on Assistance: NAHA and the HOME regulations limit the amount of operating expense assistance that an organization can receive annually. ARP extends this limitation to the capacity building assistance paid with HOME-ARP funds. In any fiscal year, operating assistance provided to a nonprofit organization may not exceed the greater of 50 percent of the general operating expenses of the organization, as described above, for that fiscal year or $50,000. In any fiscal year, capacity building assistance provided to a nonprofit organization may not exceed the greater of 50 percent of the general operating expenses of the organization, as described above, or $50,000. If an organization receives both operating assistance and capacity building assistance in any fiscal year, the aggregate total amount of assistance it may receive is the greater of 50 percent of the organization’s total operating expenses for that fiscal year or $75,000. To implement the above limitations on assistance, HUD has established separate fund types in IDIS for operating expense assistance and capacity building assistance. This will facilitate accurate tracking and ensure that PJs do not exceed the limits established in NAHA and ARP. 3. Commitment of Operating Expense and Capacity Building Assistance: A PJ commits operating expense assistance or capacity building assistance when it enters into a legally binding agreement with the nonprofit organization to provide the assistance. VII. OTHER FEDERAL REQUIREMENTS HOME-ARP funds are federal financial assistance and, therefore, are subject to requirements applicable to such funds. PJs must comply with the following requirements: 24 CFR part 92, subpart H, 92.352 – Environmental review; 92.353 – Displacement, relocation, and acquisition; and 92.355 – Lead-based paint. 69 A. Other Federal Requirements and Nondiscrimination The requirements in 24 CFR 92.350 apply to the HOME-ARP program. PJs must comply with the Federal requirements set forth in 24 CFR part 5, subpart A, including: nondiscrimination and equal opportunity; disclosure requirements; debarred, suspended or ineligible contractors; drug-free work; and housing counseling and the nondiscrimination requirements at section 282 of NAHA. The requirements in section 282 of NAHA are waived in connection with the use of HOME-ARP funds on lands set aside under the Hawaiian Homes Commission Act, 1920 (42 Stat. 108). PJs must also comply with the Violence Against Women Act (VAWA) requirements set forth in 24 CFR 92.359. B. Affirmative Marketing and Minority Outreach The requirements in 24 CFR 92.351 apply to HOME-ARP activities. C. National Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321) and Related Laws The environmental requirements in 24 CFR 92.352 apply to eligible activities under this Notice. The environmental effects of each activity carried out with HOME-ARP funds must be assessed in accordance with the provisions of NEPA and the related authorities listed in HUD's implementing regulations at 24 CFR part 58. The applicability of the provisions of 24 CFR part 58 is based on the HOME-ARP project as a whole (i.e., all individual project activities, such as acquisition and rehabilitation, aggregated according to the requirements at 24 CFR 58.32), not on the type of the cost paid with HOME-ARP funds. In accordance with the provisions in 24 CFR part 58, activities undertaken with HOME-ARP funds are subject to environmental review by a PJ or State recipient. The PJ or State recipient (referred to as the “Responsible Entity” or “RE”) must assume responsibility for environmental review, decision making, and action for each activity that it carries out with HOME-ARP funds, in accordance with the requirements at 24 CFR Part 58. A state PJ must assume responsibility for approval of Requests for Release of Funds and Certification (RROF/C) submitted by State recipients. No funds may be committed to a HOME-ARP activity or project before the completion of the environmental review and approval of the RROF/C, as applicable. Neither a HOME-ARP recipient nor any participant in the development process, including public or private nonprofit or for-profit entities, or any of their contractors, may commit HUD assistance on an activity or project until the environmental review has been completed and HUD or the state has approved the recipient's RROF/C from the RE as applicable. In addition, until the RROF/C have been approved, neither a HOME-ARP recipient nor any participant in the development process may commit non-HUD funds on or undertake a HOME-ARP activity or project if the activity or project would have an adverse environmental impact or limit the choice of reasonable alternatives. Therefore, it is important for REs to begin and complete any required environmental reviews as soon as possible. 70 1. HOME-ARP TBRA and Supportive Services HOME-ARP TBRA and supportive services as defined at 24 CFR 58.35(b) are categorically excluded, not subject to the Federal laws and authorities at 24 CFR 58.5 (CENST) or exempt from review under NEPA. A RE may complete a single CENST review categorized under 24 CFR 58.35(b) for their supportive services program or their HOME-ARP TBRA program where participants choose their own unit and are not restricted to units within a pre-determined specific project site or sites. There is no need to complete reviews for every unit selected by participants. 2. HOME-ARP Rental Housing Acquisition of a structure to be used as HOME-ARP rental housing is categorically excluded, subject to the Federal laws and authorities referenced at 24 CFR 58.5 (CEST) under 24 CFR 58.35(a)(5) (with the possibility of converting to exempt under 24 CFR 58.34(a)(12)) if the structure acquired will be retained for the same use (e.g., residential). Rehabilitation of buildings for residential use with one to four units for HOME-ARP rental housing is CEST under 24 CFR 58.35(a)(3)(i), if the density is not increased beyond four units, and the land use is not changed. Rehabilitation of buildings for use as HOME-ARP multifamily rental housing is CEST under 24 CFR 58.35(a)(3)(ii) only if: 1. the unit density is not changed more than 20 percent; 2. the project does not involve changes in land use from residential to non-residential; and 3. the estimated cost of rehabilitation is less than 75 percent of the total estimated cost of replacement after rehabilitation. Rehabilitation for HOME-ARP rental housing that does not meet the thresholds for multifamily residential buildings listed above requires completion of an Environmental Assessment in accordance with 24 CFR Part 58, Subpart E. An Environmental Assessment is also required for new construction, demolition, acquisition of vacant land for new construction, and acquisition of non-residential structures for demolition and new construction. 3. HOME-ARP NCS HOME-ARP NCS activities are subject to environmental review by the RE under 24 CFR part 58. Acquisition of a structure to be used as HOME-ARP NCS is CEST under 24 CFR 58.35(a)(5) (with the possibility of converting to exempt under 24 CFR 58.34(a)(12)) if the structure acquired will be retained for the same use (e.g., residential). Rehabilitation of a structure for HOME-ARP NCS is CEST if the project meets the thresholds listed at 24 CFR 58.35(a)(3)(i) or (ii). Rehabilitation that does not meet these thresholds requires completion of an Environmental Assessment pursuant to 24 CFR part 58, subpart E. An Environmental Assessment is also required for new construction, demolition, acquisition of vacant land for new construction, and acquisition of non-residential structures for demolition and new construction. HOME-ARP NCS projects which may convert to emergency shelter or permanent housing pursuant to Sec. 3204(a)(4)(B) or (C) of the ARP may complete a single environmental review that covers all proposed HUD funding sources and project activities. Conversion to a program using project-based rental assistance is CEST and requires completion of an environmental review. If conversion or other additional HUD funding sources are proposed after the 71 environmental review has been completed, a CENST review for supplemental assistance under 24 CFR 58.35(b)(7) can be performed if the review is completed by the same RE that conducted the original review and if re-evaluation is not required by 24 CFR 58.47. The PJ or subrecipient, or any contractor of the PJ or subrecipient, may not acquire, rehabilitate, convert, repair, dispose of, demolish, or construct property for a HOME-ARP NCS project, or commit or expend HUD or non-HUD funds for NCS under HOME-ARP, until the RE has completed an environmental review under 24 CFR part 58 and received HUD or state approval of the RROF/C, as applicable. D. Labor Standards The requirements in 24 CFR 92.354 apply to HOME-ARP activities. E. Lead Hazard Control Requirements The Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4821-4846), the Residential Lead- Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851-4856), and implementing regulations at 24 CFR Part 35, subparts A, B, J, K, M, and R apply to HOME-ARP-assisted activities. For HOME-ARP NCS, a project must comply with 24 CFR part 35, Subpart K when the HOME-ARP activity is acquisition only. HOME-ARP NCS projects that involve rehabilitation of pre-1978 facilities, whether the rehabilitation is funded with HOME-ARP or other funds, must comply with the requirements of 24 CFR part 35, Subpart J. F. Uniform Relocation Assistance and Real Property Acquisition Policies Act, Section 104(d), and HOME-ARP Displacement, Relocation and Acquisition Program Requirements HOME-ARP funding is subject to the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 and section 104(d) of the Housing and Community Development Act of 1974, in addition to the Displacement, Relocation and Acquisition regulatory requirements of 24 CFR 92.353. This Notice also includes HOME-ARP program specific relocation requirements applicable to HOME-ARP-assisted projects. PJs must comply with all applicable requirements, as described in this section. 1. Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970: Costs incurred to comply with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, (42 U.S.C. § 4601 et seq.) (URA) are eligible HOME-ARP project costs pursuant to this Notice and 24 CFR 92.206(f). The URA establishes minimum requirements for the acquisition of real property and the displacement of persons from their homes, businesses, or farms as a direct result of acquisition, rehabilitation, or demolition for federally-assisted programs and projects. The URA implementing regulations at 49 CFR part 24 establish: 72  Requirements for the provision of replacement housing assistance, advisory services, and moving costs to persons displaced as a result of a program or project that receives federal financial assistance;  Requirements for acquisitions, including the payment of just compensation pursuant to 49 CFR part 24, subpart B, and provisions for voluntary acquisitions set forth in 49 CFR 24.101.  Minimum requirements for temporary relocation of persons, businesses, or farms as a result of a project or program that receives federal financial assistance. These requirements are found in Appendix A, Section 24.2(a)(9)(ii)(D). Additional HUD URA policy and guidance is available in HUD Handbook 1378. 2. Section 104(d) of the Housing and Community Development Act of 1974: HOME-ARP is HOME funding and subject to the requirements in section 104(d) of the Housing and Community Development Act of 1974, as amended, (42 USC § 5304(d)), (“section 104(d)”) unless waived, as described in this section and Appendix. Costs incurred to comply with section 104(d) requirements are eligible HOME-ARP project costs under 24 CFR 92.206(f). section 104(d) applies to the demolition or conversion, as defined in 24 CFR 42.305, of a lower-income dwelling unit in connection with a HOME or Community Development Block Grant Program (CDBG) assisted activity. section 104(d) includes the following requirements:  A PJ must have a residential anti-displacement and relocation assistance plan (RARAP);  A PJ must provide relocation assistance to displaced lower-income persons; and  A PJ must perform one-for-one replacement of lower-income dwellings demolished or converted to a use other than a lower-income dwelling unit. A lower-income dwelling unit is defined in 24 CFR 42.305 as a dwelling unit with a market rent (including utility costs) that does not exceed the applicable Fair Market Rent (FMR) for existing housing, as defined by HUD. Section 104(d) implementing federal regulations can be found at 24 CFR part 42 Subpart C. HOME-ARP Section 104(d) Waiver / One-for-One Replacement Housing. For purposes of , the one-for-one replacement housing requirements of section 104(d)(2)(A)(i) and (ii) and (d)(3) (42 U.S.C. 5304(d)(2)(A)(i) and (ii) and 42 U.S.C. 5304(d)(3)) and 24 CFR 42.375, lower-income dwelling units shall not include single-room occupancy (SRO) units or residential hotel or motel units in jurisdictions where those units are considered dwelling units under state or local law. All other section 104(d) requirements, including but not limited to the requirement that the PJ have and follow a RARAP, remain in effect. (See 24 CFR 92.353(e) and 24 CFR part 42, subpart C). 3. HOME Program Displacement, Relocation and Acquisition Regulations: In addition to the URA and section 104(d) requirement described above, the HOME program’s Displacement, Relocation and Acquisition regulations at 24 CFR 92.353 also apply to projects funded with HOME-ARP funds. Some of these requirements differ from those 73 of the URA and section 104(d), including but not limited to the expanded temporary relocation protections at 24 CFR 92.353(b) and (c); optional relocation assistance policies in 24 CFR 92.353(d); and the right to return to a building or complex, if feasible, upon completion of a HOME project, in accordance with 24 CFR 92.353(a). PJs must follow these program-specific requirements in HOME-ARP assisted projects. PJs are encouraged to develop optional relocation policies to address individuals that may not be eligible for URA or section 104(d) assistance due to their length of occupancy in a unit, ineligibility of their dwelling unit, or other factors beyond their control. Such policies must be in writing, applied consistently, and must not violate any other federal law or regulation. Costs incurred to comply with 24 CFR 92.353, including optional relocation policies, are eligible HOME-ARP project costs under 24 CFR 92.206(f). 4. Additional HOME-ARP Program Relocation Related Requirements: The following additional HOME-ARP program relocation requirements apply: a. Acquisition and/or rehabilitation of hotels, motels and other non-residential property: In states where hotels and motels are not considered dwelling units or residential property, the acquisition of non-residential property such as hotels and motels for the production of HOME-ARP NCS units or HOME-ARP rental housing will not make a person occupying those properties eligible for relocation assistance under the URA, section 104(d) or 24 CFR 92.353. HOME PJs may provide HOME-ARP assistance, as defined by this Notice, including the provision of HOME-ARP supportive services, HOME-ARP TBRA, the ability to stay in HOME-ARP NCS units, or the ability to rent a HOME-ARP rental unit, if the individuals or families can demonstrate that– i. they have been in continuous residence at the property for 30 or more calendar days, and ii. they are a qualifying household, as defined by this Notice. Any assistance provided pursuant to this section may be provided without regard to any preferences, project-specific waiting lists, or any other form of prioritization the PJ has developed pursuant to this Notice. For purposes of HOME-ARP, costs associated with activities under this provision of the Notice may be charged as either project delivery costs or relocation costs eligible under 24 CFR 92.206(f). b. Conversion of HOME-ARP NCS: If HOME-ARP NCS units are occupied and converted to either permanent housing under CoC or permanent affordable housing as described in Section VI.E.11 of this Notice, persons occupying the shelter would not normally be eligible for relocation assistance under the URA, section 104(d) or 24 CFR 92.353 because they are not displaced from a dwelling unit. However, since the individuals or families occupying such shelter units are already qualifying households under HOME-ARP, HOME PJs may immediately provide such occupants with HOME- ARP assistance, as defined by this Notice, including the provision of HOME-ARP supportive services, HOME-ARP TBRA, the ability to stay in other HOME-ARP 74 NCS units, or the ability to rent a HOME-ARP rental unit. Additionally, the PJ may provide the occupants with assistance for moving costs or advisory services, as appropriate, as HOME-ARP administrative costs or under the HOME-ARP supportive services activity in Section VI.D of this Notice. Any assistance provided pursuant to this section may be provided without regard to any preferences, project-specific waiting lists, or any other form of prioritization the PJ has developed pursuant to this Notice, as the persons occupying the NCS units were already determined to be qualifying households under the HOME-ARP. 5. Persons Ineligible for HOME-ARP Assistance and Ineligible for URA, Section 104(d), or assistance pursuant to 24 CFR 92.353: If a person is required to move as a direct result of a HOME-ARP project and is determined ineligible for HOME-ARP housing assistance under the preceding Section VII.F.4 and also determined ineligible as a displaced person under the URA, section 104(d) or HOME program rules, the PJ may provide such persons advisory services as an eligible HOME-ARP administrative cost, as the PJ determines to be reasonable and necessary. G. Section 3 Economic Opportunities for Low- and Very Low-Income Persons Section 3 requirements established at 24 CFR Part 75 apply to HOME-ARP-assisted projects. H. Conflicts of Interest HOME-ARP is subject to the following conflicts of interest requirements: 1. Conflicts of Interest: PJs, State recipients, and subrecipients engaging in any of the activities defined this Notice shall be subject to the conflicts of interest provisions at 24 CFR 92.356, including but not limited to the conflicts of interest exception process defined in 24 CFR 92.356(d)-(e). Owners and developers of HOME-ARP NCS and HOME-ARP rental housing shall be subject to 24 CFR 92.356(f). 2. Organizational Conflicts of Interest: The provision of any type or amount of HOME- ARP TBRA or supportive services may not be conditioned on an individual’s or family's acceptance or occupancy of a shelter or housing unit owned by the PJ; State recipients; the subrecipient; or a parent, affiliate, or subsidiary of the subrecipient. No subrecipient may, with respect to individuals or families occupying housing owned by the subrecipient, or any parent, affiliate, or subsidiary of the subrecipient, administer financial assistance that includes rental payments, utility deposits, security deposits, or first and last month’s rent provided pursuant to this Notice. All contractors of the PJ, State recipients, or subrecipient must comply with the same requirements that apply to subrecipients under this section. 3. Written Standards of Conduct: PJs, State recipients, and subrecipients must maintain written standards of conduct covering the conflicts of interest and organizational conflicts of interest requirements under this Notice and 2 CFR 200.318. The written standards of conduct must also provide for internal controls and procedures to require a fair and open selection process for awarding HOME-ARP funds pursuant to this Notice. These standards 75 must include provisions on if and how Continuum of Care board members may participate in and/or influence discussions or resulting decisions concerning the competition or selection of an award or other financial benefits made pursuant to the HOME-ARP Notice, including internal controls on when funds may be awarded to the organization that the member represents. 4. Requesting Exceptions to Organizational Conflicts of Interest: Any request for an exception to the organizational conflicts of interest provisions in this Notice shall be in writing and shall be considered by HUD only after the PJ or State recipient has provided the following: a. A written disclosure of the nature of the conflict, accompanied by an assurance that there has been public disclosure of the conflict and a description of how the public disclosure was made; and b. An opinion of the PJ’s or State recipient's attorney that the interest for which the exception is sought would not violate State or local law. 5. Granting Exceptions to Organizational Conflicts of Interest: HUD shall determine whether to grant an exception to the organizational conflicts of interest on a case-by-case basis when it determines that the exception will serve to further the purposes of HOME- ARP. HUD shall consider the following factors, as applicable, in determining whether to grant such an exception: c. Whether the exception would provide a significant cost benefit or an essential degree of expertise to the program or project which would otherwise not be available d. Whether undue hardship will result to the PJ, State recipient, subrecipient or the person affected when weighed against the public interest served by avoiding the prohibited conflict; e. Whether conditioning approval on changes to the PJ, State recipient, or subrecipient’s policies or procedures can adequately address the organizational conflict of interest; and f. Any other factors relevant to HUD’s determination, including the timing of the requested exception. VIII. PROGRAM ADMINISTRATION A. PJ Responsibilities The PJ is responsible for managing the day-to-day operations of its HOME-ARP program, ensuring that HOME-ARP funds are used in accordance with all program requirements and written agreements, and taking appropriate action when performance problems arise. The use of State recipients, subrecipients, or contractors does not relieve the PJ of this responsibility. B. Written Agreement Requirements Before disbursing any HOME-ARP funds to any entity, the PJ must enter into a written agreement with that entity pursuant to 24 CFR 92.504. Similarly, before disbursing any HOME 76 funds to a State recipient, subrecipient, or contractor which is administering all or a part of the HOME-ARP program on behalf of the PJ, the PJ must also enter into a written agreement with that entity that complies with 24 CFR 92.504 and the requirements described below. A written agreement cannot commit to providing HOME-ARP funds after the end of the HOME-ARP budget period. The written agreement must require compliance with the requirements of this Notice. The content of the written agreement will vary depending upon the role the entity is asked to assume or the type of project undertaken. This section details basic requirements by activity and the minimum provisions, in addition to those at 24 CFR 92.504 that must be included in a written agreement. The written agreement provisions in 24 CFR 92.504 that reference the requirements of 24 CFR 92.350, 24 CFR 92.351, and 24 CFR 92.359 are not waived and apply for all HOME-ARP written agreements. 1. Rental Housing: The PJ must execute a written agreement with the project owner/developer prior to the expenditure of HOME-ARP funds. The written agreement must comply with 24 CFR 92.504 and contain the following additional provisions: a. Use of HOME-ARP funds for Rental Housing: The agreement between the owner/developer must describe the address of the project or legal description of the property if a street address has not be assigned to the property, the use of the HOME- ARP funds and other funds for the project, including the tasks to be performed for the project, a schedule for completing the tasks and the project, and a complete budget, including any HOME-ARP funds used to capitalize an operating cost reserve for qualified HOME-ARP units. These items must be in sufficient detail to provide a sound basis for the PJ to effectively monitor performance under the agreement to achieve project completion and compliance with HOME-ARP requirements. b. Operating Cost Assistance: If the PJ will provide HOME-ARP funds for operating cost assistance, the agreement must specify whether the PJ will provide assistance through periodic payments or capitalize the operating cost assistance reserve based on the operating deficit projected for the 15-year compliance period. If the PJ is providing ongoing assistance, the amount of assistance must be based on the actual operating deficit associated with the HOME-ARP units restricted for occupancy by qualifying households. The written agreement must specify the frequency of operating assistance payments made to the owner (e.g., monthly, quarterly, etc.) and state that the amount of assistance will be equal to the deficit demonstrated and/or incurred. The written agreement may only provide for HOME-ARP funds to be used for operating assistance payments during the budget period defined in Section VIII.C.4 below. If operating cost assistance will be required beyond the budget period, the PJ should capitalize an operating reserve before the expiration of the budget period for HOME-ARP funds in accordance with Section VI.B.23. If the PJ is capitalizing the operating reserve for the 15-year HOME-ARP compliance period, the amount of assistance must be based on the project’s underwriting and the total anticipated operating deficit associated with the HOME-ARP units restricted for occupancy by qualifying households. The written 77 agreement must specify the amount of the capitalized reserve and the restrictions on its use during the minimum compliance period in Section VI.B.18. Net operating income resulting from HOME-ARP operating cost assistance is not permitted and must be prohibited in the written agreement between the participating jurisdiction and the owner. c. Sublease/Master Lease of HOME-ARP Units: If the PJ will permit a project owner to execute a sublease or master lease with a nonprofit organization for HOME-ARP units restricted for occupancy by qualifying households, the agreement must specify the duration of the sublease or master lease, applicable rents, lease requirements and tenant protections. d. On-going compliance: The agreement must require rental housing assisted with HOME- ARP funds to comply with the on-going requirements of Section VI.B of this Notice or require repayment in accordance with Section VI.B.22. e. Property Standards: The agreement must require the housing to meet the property standards required in 24 CFR 92.251 paragraphs (a) new construction, (b) rehabilitation projects, (c)(1) and (2) acquisition of standard housing and (f) on-going property condition standards. f. Records and reports: The agreement must specify the particular records that must be maintained and the information or reports that must be submitted to assist the PJ in meeting its recordkeeping and reporting requirements. The owner/developer of rental housing must annually provide the PJ with information on rents and occupancy of HOME-ARP assisted units to demonstrate compliance with this Notice. If the rental project has floating HOME-ARP units, the project owner/developer must provide the PJ with information regarding unit substitution and filling vacancies so that the project remains in compliance with the HOME-ARP occupancy requirements. The agreement must specify the reporting requirements, (including copies of financial statements) to enable the PJ to determine the financial condition and continued financial viability of the project. g. Enforcement of the agreement: The agreement must provide for a means for the PJ to enforce compliance with HOME-ARP requirements. This means of enforcement may include liens, deed restrictions, covenants running with the land, use restriction, or other mechanism approved by HUD under which the PJ has the right to require specific performance. In addition, the agreement must specify remedies for breach of the provisions of the agreement. h. Request for disbursement of funds: The agreement must specify that the owner/developer may not request disbursement of funds under the agreement until the funds are needed for payment of eligible costs. The owner/developer may request capitalization of a project operating cost assistance reserve for the qualifying units once all necessary title transfer requirements and construction work have been performed. The amount of each request must be limited to eligible costs in the amount needed, as described in Section VI.B.5.g. 78 i. Duration of the agreement: The agreement must be in effect for at least the 15-year HOME-ARP minimum compliance period. j. On-site Inspections and Financial Oversight: The PJ must comply with the on-site inspections and financial oversight requirements of 24 CFR 92.504(d)(1) and (2). In addition, if the PJ will permit the capitalization of a project operating cost assistance reserve, the PJ must, no less than annually, oversee the administration of the operating cost assistance reserve account to verify that the account is appropriately sized and draws from the account are used to cover any deficits associated with units occupied by qualifying households. k. Tenant Selection: The written agreement must contain provisions explaining the method of tenant selection to be used in accordance with the requirements of Section IV.C and VI.B.20 of this Notice. This section must be in sufficient detail to determine which method of tenant selection is being used for the qualifying population (i.e., use of CE, use of CE with other referral methods, or project-specific waiting list), the method of tenant selection for low-income households (See Section VI.B.20.b and 24 CFR 92.253(d)), and any required policies and procedures around the use of a CE or project- specific waiting list. This section must also be in sufficient detail to determine compliance with the PJ’s preferences and/or method of prioritization, if any, as well as all applicable fair housing, civil rights, and nondiscrimination requirements, including but not limited to those requirements listed in 24 CFR 5.105(a). 2. TBRA (subrecipient or contractor): The requirements at 24 CFR 92.504, apply to the use of HOME-ARP funds for TBRA. The written agreement provisions in 24 CFR 92.504 that reference the requirements of 24 CFR 92.350, 24 CFR 92.351, and 24 CFR 92.359 are not waived and still apply for HOME-ARP written agreements. The written agreement must contain the following provisions: a. Use of HOME ARP funds: At a minimum, the written agreement must describe the amount and use of the HOME-ARP funds, the tasks to be performed, or services to be provided. HOME-ARP funds cannot be provided after the end of the HOME-ARP budget period. b. Records and reports: The agreement must specify the particular records that must be maintained and the information or reports that must be submitted to assist the PJ in meeting its recordkeeping and reporting requirements. c. Duration of agreement and disbursement of funds: The agreement must specify the duration of the agreement and state that disbursement of funds under the agreement may not be requested until the funds are needed. d. Compliance with HOME-ARP program requirements: The written agreement must require compliance with HOME-ARP program requirements for the HOME-ARP TBRA activity as outlined in Section VI.C of this Notice. 79 e. Rental assistance contract: There must be a rental assistance contract between the PJ and either the HOME-ARP sponsor, the HOME-ARP TBRA assisted household, or the property owner. The PJ must determine the terms of the rental assistance contract. The rental assistance contract continues until the lease is terminated. If the rental assistance is being provided through a HOME-ARP sponsor, the PJ must determine the term of the rental assistance contract between the PJ and HOME-ARP sponsor. If HOME-ARP TBRA is provided in coordination with a HOME-ARP sponsor, the PJ must enter into a written agreement with the HOME-ARP sponsor if the HOME-ARP TBRA rental assistance contract is not with the HOME-ARP sponsor and the HOME- ARP sponsor will be receiving the HOME-ARP TBRA subsidy directly from the PJ. The written agreement must specify the requirements for the HOME-ARP sponsor receiving the TBRA subsidy on behalf of the HOME-ARP TBRA household and the HOME-ARP sponsor’s obligation to use the HOME-ARP TBRA payment to pay rent for the unit to the property owner or management agent. If HOME-ARP TBRA is provided in coordination with a HOME-ARP sponsor, the sponsor must enter into a sublease with the HOME-ARP TBRA assisted household that must specify the duration of the sublease, applicable rents, lease requirements and tenant protections, all in accordance with the requirements of this Notice. f. Tenant Selection: The written agreement must require the owner to comply with the method of tenant selection determined by the PJ and applicable requirements of Section IV.C and VI.C.1 of this Notice. The written agreement must include a description of the required method of tenant selection for the qualifying populations (i.e., use of CE, use of CE with other referral methods, project-specific waiting list), the method of tenant selection for low-income households (See Section VI.B.20.b and 24 CFR 92.253(d)), and any required policies and procedures around the use of a CE or project-specific waiting list. This section of the written agreement must be in sufficient detail to determine compliance with the PJ’s preferences and/or method of prioritization, if any, as well as all applicable fair housing, civil rights, and nondiscrimination requirements, including but not limited to those requirements listed in 24 CFR 5.105(a). 3. Supportive Services (subrecipient or contractor): The requirements at 24 CFR 92.504, apply to the use of HOME-ARP funds for supportive services. The provisions of the written agreement will depend on the role the entity is asked to assume. At a minimum, the written agreement must contain the following provisions: a. Use of HOME funds: The written agreement must describe the amount and uses of the HOME-ARP funds, the tasks to be performed, the services to be provided, and include a budget. The written agreement cannot agree to provide HOME-ARP funds after the end of the HOME-ARP budget period. b. Records and Reports: The agreement must specify the particular records that must be maintained and the information or reports that must be submitted in order to assist the PJ in meeting its recordkeeping and reporting requirements as required under Section VIII.F of this Notice. 80 c. Duration of the agreement and Disbursement of Funds: The agreement must specify the duration of the agreement, and state that disbursement of funds under the agreement may not be requested until the funds are needed. d. Compliance with HOME-ARP Program Requirements: The written agreement must also require compliance with HOME-ARP program requirements for the HOME-ARP supportive services activity as described in Section VI.D of this Notice. 4. HOME-ARP Non-Congregate Shelter (owner/developer): Written agreements must be executed between the PJ and the owner for all HOME-ARP NCS projects. A legally binding HOME-ARP NCS written agreement must include the date of the signature of each person signing the agreement. PJs are responsible for entering into written agreements before disbursing HOME-ARP funding. Contents of written agreements can vary based on specific needs of the PJ, the owner, and the project. Agreements for the acquisition, development, and rehabilitation of HOME-ARP NCS units must contain the following provisions: a. Use of HOME-ARP funds: The agreement between the PJ and owner must include the address of the project or legal description of the property if a street address has not been assigned to the property, the use of the HOME-ARP NCS funds and other funds for the project, including the tasks to be performed for the project, a schedule for completing the tasks and the project, and a complete budget. These items must be in sufficient detail to provide a sound basis for the PJ to effectively monitor performance under the agreement to achieve project completion and compliance with HOME-ARP requirements. The written agreement cannot agree to provide HOME-ARP funds after the end of the HOME-ARP budget period. b. Habitability and Property Standards: The agreement must require the HOME-ARP NCS project to meet the habitability and property standards as described in Section VI.E.7 of this Notice based on the type of project completed. c. Project Requirements: The agreement must require the HOME-ARP NCS project to meet the project requirements as described in this Notice. d. Other program requirements: The agreement must require the PJ and owner to carry out the project in compliance with the other Federal requirements of 24 CFR 92 subpart H and 24 CFR 92.505. e. Records and reports: The agreement must specify the particular records that must be maintained and the information or reports that must be submitted to assist the PJ in meeting its recordkeeping and reporting requirements. f. Restricted Use Period: The agreement must require the project to meet the Restricted Use Period as described in Section VI.E.9 of this Notice based on project type. g. Enforcement of the agreement: The agreement must provide for a means for the PJ to enforce compliance with HOME-ARP requirements. This means of enforcement may include liens, deed restrictions, covenants running with the land, use restriction, or other 81 mechanism approved by HUD under which the PJ has the right to require specific performance. In addition, the agreement must specify remedies for breach of the provisions of the agreement. h. Plan of Conversion: PJs that intend to allow conversion of HOME-ARP NCS projects to other permanent affordable housing as permitted in this Notice must describe conversion as a possible outcome of the HOME-ARP NCS project; specify the conditions under which conversion will be permitted; and require that the PJ approve the terms and conditions of any conversion before the conversion occurs. i. Additional PJ Conditions and Requirements: PJs may include additional program and project requirements as determined necessary. 5. Non-Profit Operating and Capacity Building: The requirements at 24 CFR 92.504(c)(6), apply to the use of HOME-ARP funds for non-profit operating and capacity building assistance. The written agreement must describe the amounts and uses of HOME-ARP funds for operating expenses or capacity building. If the non-profit organization is not also receiving HOME-ARP funds to carry out a HOME-ARP project, the agreement must provide that the organization is expected to receive funds for a HOME-ARP project within 24 months of the date of receiving the funds for operating or capacity building expenses and must specify the terms and conditions upon which this expectation is based and the consequences of failure to receive funding for a project. When a PJ provides both operating assistance and capacity building assistance to an organization, it must enter into either one written agreement for both types of assistance or separate written agreements for operating expense assistance and capacity building assistance. If a PJ chooses to enter into one written agreement, the PJ must separately identify the scope of assistance, eligible uses and costs, and a budget for each type of funds. C. Grants Management 1. HOME-ARP Grant Agreement: HUD will make HOME-ARP funds available to the PJ pursuant to a HOME-ARP Grant Agreement, consistent with Section VIII.C.2 below. Subject to the provisions of the grant agreement and requirements in this Notice, HUD will obligate HOME-ARP funds to the PJ upon execution of the agreement by both parties. In the grant agreement, the PJ agrees that funds invested in affordable housing under this Notice are repayable if the housing no longer meets the requirements of this Notice during the compliance period or the NCS no longer meets the requirements of this Notice during the restricted use period. The PJ also agrees to assume all responsibility for environmental review, decision making, and actions, as specified and required in regulation at 24 CFR 92.352 and 24 CFR Part 58. The PJ agrees to comply with 24 CFR 92.505 and applicable Uniform Administrative Requirements at 2 CFR part 200, as amended. The PJ agrees to comply with requirements established by the Office of Management and Budget (OMB) concerning the unique entity identifier and System for Award Management (SAM) requirements in Appendix I to 2 CFR part 200, as amended, and the Federal Funding Accountability and Transparency Act (FFATA) in Appendix A to 2 CFR part 170. The PJ 82 agrees to comply with the federal nondiscrimination and equal opportunity requirements at 24 CFR 92.350 and affirmative marketing requirements in 24 CFR 92.351 and the VAWA requirements set forth in 24 CFR 92.359. The HOME-ARP grant is obligated when the HUD Authorized Official signs the memorandum obligating HOME-ARP grants. The HOME-ARP Grant Agreement must be signed by the CPD Field Office Director and counter-signed by the PJ’s authorized signatory. Once the CPD division in the local field office receives the fully executed HOME-ARP Grant Agreement, it will send the agreement to HUD’s CFO Accounting Office for processing. As described in Section VIII.C.2 of this Notice, funds will become available to the PJ in IDIS once HUD’s CFO Accounting Office processes the grant. 2. Access to Administrative Set-aside Funds: Upon issuance of this Notice, HUD will obligate all HOME-ARP grants to PJs through the signing of the HOME-ARP obligating memorandum, after which each HOME-ARP Grant Agreement must be signed by both parties. After obligation, HUD will permit the PJ to use 5 percent of its award for eligible administrative and planning costs under Section VI.A of this Notice. The PJ may not expend any funds for non-administrative and planning costs before the HOME-ARP allocation plan is accepted by HUD as described in Section V.D.2 and 3 of this Notice. HUD will make the remaining HOME-ARP grant funds available to the PJ once HUD accepts the HOME-ARP allocation plan. If the PJ does not submit a HOME-ARP allocation plan or if the PJ’s plan is not accepted within a reasonable period of time, as determined by HUD, any costs incurred or HOME-ARP funds expended by the PJ will be considered ineligible costs and must be repaid with non-Federal funds in accordance with guidance from HUD. 3. HOME-ARP Grant Number: The PJ’s HOME-ARP grant number is similar to its HOME grant number with the exception of the source type code. All HOME-ARP grants have the program identifier “M” and the source year of the grant “21.” The different source type codes are identified in the table below. Source Type Description HOME Source Type Code HOME-ARP Source Type Code HOME Consortium DC DP Metropolitan City MC MP State SG SP Insular Area ST IP Urban County UC UP The unique grantee identifier portion of the grant number will be the same for HOME-ARP grants as it is for HOME grants. See examples of HOME-ARP grant numbers with the different source type codes in the table below. 83 Participating Jurisdiction HOME Grant Number HOME-ARP Grant Number Maryland M21SG240100 M21SP240100 Baltimore M21MC240200 M21MP240200 4. Budget Period: The budget period for HOME-ARP grants begins on the Federal Award Date, which is the date of the HUD Authorized Official’s signature specified on the HOME- ARP Grant Agreement. The budget period for HOME-ARP grants ends on September 30, 2030. The PJ may not expend any HOME-ARP funds after September 30, 2030. After September 30, 2030, any HOME-ARP funds remaining in the PJ’s HOME Investment Trust Fund Treasury account will be cancelled and not available for obligation or expenditure for any purpose (per 31 U.S.C. 1552). 5. Period of Performance: The period of performance for HOME-ARP grants begins on the Federal Award Date, which is the date of the HUD Authorized Official’s signature specified on the HOME-ARP Grant Agreement. The period of performance for HOME-ARP grants ends on September 30, 2030. 6. Audit: Audits of the PJ, State recipients, and subrecipients must be conducted in accordance with 2 CFR part 200, subpart F. 7. Closeout: HOME-ARP funds will be closed out in accordance with 2 CFR part 200, subpart D. The PJ will use HUD’s data system to closeout HOME-ARP grants once all HOME-ARP funds have been expended, all HOME-ARP activities are completed in accordance with the requirements of this Notice, and the proper beneficiary data has been entered. In order to closeout its HOME-ARP grants, the PJ must not have any open CPD monitoring findings or audits related the HOME-ARP funds. HUD will provide closeout guidance and instructions at a later date. D. Applicability of Uniform Administrative Requirements. The requirements of 2 CFR part 200, as amended apply to PJs, State recipients, and subrecipients receiving HOME-ARP funds, except for the following provisions: 2 CFR 200.306, 200.307, 200.308 (not applicable to participating jurisdictions), 200.311 (except as provided in 24 CFR 92.257), 200.312, 200.329, 200.333, and 200.334. The provisions of 2 CFR 200.305 apply as modified by 24 CFR 92.502(c) and this Notice. If there is a conflict between definitions in 2 CFR part 200 and 24 CFR part 92, the definitions in 24 CFR part 92, govern. Moreover, if there is a conflict between the provisions of 2 CFR part 200 and the provisions of this Notice, the provisions of this Notice govern. Where regulations in 24 CFR part 92 refer to specific regulations of 2 CFR part 200 that were or are renumbered or revised by amendments to 2 CFR part 200, the requirements that apply to the 84 use of HOME-ARP funds are the applicable requirements in 2 CFR part 200, as amended, notwithstanding the renumbered regulatory reference. E. Financial Management 1. The HOME Investment Trust Fund: HUD will establish a HOME-ARP Investment Trust Fund Treasury account (Treasury account) for a PJ’s HOME-ARP funds. The Treasury account includes all HOME-ARP funds allocated to the PJ by formula and any HOME-ARP funds repaid by the PJ. The PJ must establish a HOME-ARP Investment Trust Fund local account (local account) as described in 24 CFR 92.500. The PJ may use either a separate local account or, a subsidiary account within its general fund (or other appropriate fund) as the local account. The PJ may not use the same local account for HOME-ARP that it uses for its HOME local account. The local account includes deposits of HOME-ARP funds disbursed from the Treasury account. The local account must be interest-bearing. HUD will reduce or recapture any HOME-ARP funds that are in the Treasury account that are not expended (drawn down) by September 30, 2030. Due to end-of-year financial system closeouts that begin before this date and prevent electronic access to the payment system, requests to draw down the funds must be made at least 7 full business days before this date so that the funds still can be drawn from the Treasury account through IDIS. 2. Program Income: Program Income means gross income received by the PJ generated from the use of HOME-ARP funds during the grant period of performance. This includes, but is not limited to, principal and interest payments from a loan made with HOME-ARP funds, or other income or fees received from project owners in connection with HOME-ARP funds, and interest earned by the PJ on program income before its disposition. Program income earned as a result of the use of HOME-ARP funds is HOME program income and must be used in accordance with the requirements of 24 CFR part 92. All program income must be recorded in IDIS. Program income must be deposited in the PJ’s HOME-ARP local account (unless the PJ allows a State recipient or subrecipient to retain the program income for additional HOME projects pursuant to such terms and conditions in the written agreement and this Notice). The PJ must enter HOME-ARP program income retained by the State recipient or subrecipient as a HOME program income receipt in IDIS and subgrant the program income to the State recipient or subrecipient that retained the program income. The PJ is responsible to report on the use of its program income in IDIS, including program income it allowed a State recipient or subrecipient to retain. 3. Repayments: Any HOME-ARP funds used for costs that are not eligible under this Notice, funds invested in a project that is terminated before completion, either voluntarily or otherwise, or funds invested in HOME-ARP rental housing and NCS that does not meet the requirements in this Notice for the applicable period specified in this Notice must be repaid by the PJ to its Treasury account. If the funds are repaid after September 30, 2030, they will be recaptured by the U.S. Department of Treasury and the PJ will not be able to re-use the 85 funds for eligible HOME-ARP activities. HOME-ARP funds may not be repaid to the PJ’s local account. 4. Integrated Disbursement and Information System (IDIS): The PJ will use IDIS to administer its HOME-ARP funds. The PJ will request disbursements of HOME-ARP funds from its Treasury account and collect and report information on the use of HOME-ARP funds through IDIS. (For purposes of reporting in IDIS, a HOME-ARP project is an activity.) The PJ must report all program income in IDIS. The requirements of 24 CFR 92.502(c)(3) do not apply to HOME-ARP funds. In accordance with this Notice, a HOME-ARP written agreement providing HOME-ARP funds to a project or the CHDO/nonprofit must be signed and dated by: a. the PJ and project owner for HOME-ARP rental and HOME-ARP NCS; b. the PJ and service provider for HOME-ARP supportive services; c. the PJ and landlord, tenant, and/or HOME-ARP sponsor, as applicable, for HOME-ARP TBRA; and, d. the PJ and CHDO/nonprofit organization for HOME-ARP Operating Expenses and Capacity Building Assistance. This must occur before any HOME-ARP funds are disbursed. Federal funds cannot be drawn from the Treasury account in advance of the need to pay an eligible cost. Consequently, HOME-ARP funds cannot be drawn from the U.S. Treasury and placed in escrow or advanced in lump sums to State recipients, subrecipients, project owners, service providers, or landlords or tenants, except funds drawn down for a HOME-ARP rental project for an operating cost assistance reserve or reserve for replacement pursuant to Section VI.B.5.g. of this Notice or a HOME-ARP NCS project for a replacement reserve pursuant to Section VI.E. Once funds are drawn from the PJ’s Treasury account, they must be expended for an eligible HOME-ARP cost within 15 days. Any interest earned within the 15-day period may be retained by the PJ as HOME program income and recorded in IDIS as a program income receipt. Any funds that are drawn down and not expended for eligible costs within 15 days of the disbursement must be returned to HUD for deposit in the PJ's Treasury account. Interest earned after 15 days belongs to the United States and must be remitted to the United States as provided in 2 CFR 200.305(b)(9), except interest amounts up to $500 per year may be retained for the PJ’s administrative expenses. Additional HOME-ARP funds may be committed to a project up to one year after project completion. 86 HUD will govern access to IDIS by other entities participating in the HOME program (e.g., State recipients). Only PJs and State recipients (if permitted by the State) may request disbursement. F. Recordkeeping Each PJ must establish and maintain sufficient records to enable HUD to determine whether the PJ has met the requirements of this Notice. At a minimum, the following records are needed: 1. Program Records: a. Records evidencing that all HOME-ARP funds used by a PJ for TBRA, supportive services, and acquisition and development of non-congregate shelter units benefit individuals and families in qualifying populations. b. Records evidencing that not less than 70 percent of affordable rental housing units acquired, rehabilitated, and/or constructed with HOME funds by a PJ are restricted for occupancy by households in the qualifying populations. c. Records documenting compliance with the 15 percent limitation on administrative and planning costs. d. Records documenting compliance with the 5 percent limitation on CHDO and non-profit operating and capacity building costs. e. The underwriting and subsidy layering guidelines adopted in accordance with Section VI.B.10 of this Notice that support the PJ's HOME-ARP allocation plan certification. f. If existing debt is refinanced for multifamily rehabilitation projects, the HOME-ARP refinancing guidelines established in the HOME-ARP in the HOME-ARP Allocation Plan. g. If HOME-ARP funds are used for TBRA, records supporting the PJ's written selection policies and criteria; supporting documentation for preferences for specific categories of qualifying individuals; and records supporting the rent standard and minimum tenant contribution established in accordance with Section VI.C.7 and 8 of this Notice. h. Confidentiality. i. The PJ’s written policies and procedures for maintaining confidentiality of qualifying households as individuals or families fleeing, or attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking in accordance with Section VIII.H. ii. The PJ’s written policies and procedures for maintaining confidentiality in compliance with the VAWA protections contained in 24 CFR Part 5, Subpart L. 87 2. Project Records: PJs are required to retain the following records for HOME-ARP-assisted projects, as specified by activity type. a. A full description of each project assisted with HOME-ARP funds, including the location (address of project), form of HOME-ARP assistance, and the units, families, or qualifying households assisted with HOME-ARP funds, subject to confidentiality requirements in this Notice. b. The source and application of funds for each project, including supporting documentation in accordance with 2 CFR 200.302; and records to document the eligibility and permissibility of the project costs, including the documentation of the actual HOME-ARP-eligible development costs of each HOME-ARP-assisted unit as defined in this Notice. c. Records (i.e., written agreements) demonstrating compliance with the written agreement requirements in Section VIII.B of this Notice. d. Records (e.g., inspection reports) demonstrating that each HOME-ARP rental project meets the property standards in Section VI.B.11 of this Notice at project completion and through the applicable minimum compliance period. In addition, during a HOME-ARP rental project’s minimum compliance period, records demonstrating compliance with the property standards and financial oversight pursuant to 24 CFR 92.504(d) and the operating cost assistance reserve management and oversight required by Section VI.B.23 of this Notice. e. Records (e.g., inspection reports) demonstrating that each unit occupied by a qualifying household receiving HOME-ARP TBRA, meets the housing quality standards of Section VI.C.9 of this Notice at initial occupancy and throughout the household’s term of assistance. f. Records (e.g., inspection reports) demonstrating that each NCS project meets the property and habitability standards of Section VI.E.7 of this Notice at project completion and throughout the applicable restricted use period. g. Records demonstrating that each qualifying household is eligible for HOME-ARP assistance based on the requirements of the ARP and Section IV of this Notice. h. Records demonstrating that each household qualifying as homeless, records that meet the requirements in 24 CFR 576.500(b)(1), (2), (3), or (4), as applicable (except that youth aged 24 and under must not be required to provide third-party documentation to show they are homeless to receive any shelter, housing, or services for which ESG or CoC Program funds may be used to supplement the HOME-ARP assistance). i. Records demonstrating that each household qualifying as “at risk of homelessness,” records that meet the requirements in 24 CFR 576.500(c)(1) or (2), as applicable, and include the following documentation of annual income: 88 i. Income evaluation form containing the minimum requirements specified by HUD and completed by the recipient or subrecipient; and ii. Source documents for the assets held by the household and income received over the most recent period for which representative data is available before the date of the evaluation (e.g., wage statement, unemployment compensation statement, public benefits statement, bank statement); iii. To the extent that source documents are unobtainable, a written statement by the relevant third party (e.g., employer, government benefits administrator) or the written certification by the recipient's or subrecipient's intake staff of the oral verification by the relevant third party of the income the household received over the most recent period for which representative data is available; or iv. To the extent that source documents and third-party verification are unobtainable, the written certification by the household of the amount of income the household received for the most recent period representative of the income that the household is reasonably expected to receive over the 3-month period following the evaluation. j. Records demonstrating compliance with the household income requirements in accordance with Section VI.B.12 of this Notice for each HOME-ARP rental project. k. Records demonstrating that each HOME-ARP rental and NCS project meets the minimum compliance period or restricted use period described in Sections VI.B.18 and VI.E.9 respectively, of this Notice. l. Records demonstrating that for each HOME-ARP rental housing unit or for each household receiving HOME-ARP TBRA, compliance with the tenant protection requirements of Sections VI.B.19 and VI.C.2, respectively, of this Notice. For HOME- ARP TBRA or rental projects under a master lease, the PJ must retain records demonstrating that a master lease for housing leased by a HOME-ARP sponsor and each sublease between a qualifying household and HOME-ARP sponsor complies with the tenant and participant protections of 24 CFR 92.253 and this Notice. Records must be kept for each household. m. Records demonstrating compliance with the return of the HOME-ARP rental capitalized operating cost assistance reserve and/or the NCS replacement reserve at the end of the compliance or restricted use period in accordance with Sections VI.B.24 and VI.E.10 respectively, of this Notice. n. Records demonstrating that each HOME-ARP rental and each NCS project meets the underwriting and subsidy layering or due diligence requirements of Section VI.B.10 or VI.E.6 of this Notice. o. Records demonstrating that each HOME-ARP rental housing project meets the rent limitations of Sections VI.B.13 and VI.B.15 of this Notice for the 15-year minimum compliance period. Records must be kept for each household assisted. 89 p. Records demonstrating that each multifamily HOME-ARP rental housing project involving rehabilitation with refinancing complies with the refinancing guidelines established in accordance with 24 CFR 92.206(b). q. Records demonstrating that a site and neighborhood standards review was conducted for each HOME-ARP rental housing project involving new construction under Section VI.B of this Notice to determine that the site meets the requirements of 24 CFR 983.57(e)(2) and (e)(3), in accordance with 24 CFR 92.202. r. Records demonstrating that any conversion of HOME-ARP NCS complies with the requirements established by Section VI.E of this Notice, including that conversion of NCS only occurred after the end of the applicable minimum use period defined in Section VI.E.11. s. For all HOME-ARP NCS projects the following documents must be maintained, as applicable: i. Purchase contract, closing documents, settlement statement and title work for acquisitions. ii. Appraisal or other estimation of value to justify acquisition expenditure. iii. Architectural and engineering contracts and completed designs, plans, and specifications for rehabilitation and new construction activities. iv. Invoices, pay requests, and proof of payment for all project expenditures. v. Proof of insurance. vi. Project and program audits. t. For all HOME-ARP Supportive Services projects pursuant to McKinney-Vento or Homelessness Prevention Supportive Services: i. Records, where applicable, demonstrating compliance with the termination of assistance requirement as described in Section VI.D.5 of this Notice. ii. Records of all solicitations of and agreements with subrecipients and contractors, records of all payment requests by and dates of payments made to subrecipients, and documentation of all monitoring and sanctions of subrecipients, as applicable including any findings and corrective actions required. iii. Records of all procurement contracts and documentation of compliance with the procurement requirements in 2 CFR part 200, subpart D, as revised by Section VIII.D of this Notice. iv. Records evidencing the use of the written procedures required under Section VI.D.2 and records evidencing compliance with Section IV.C.2 of this Notice. 90 v. Records of all leases, subleases, and financial assistance agreements for the provision of rental payments, documentation of payments made by the PJ to owners, HOME-ARP sponsor, or qualifying households for the provision of financial assistance for rental payments, and supporting documentation for these payments, including dates of occupancy by qualifying individuals and families. vi. Records that document the monthly allowance for utilities (excluding telephone) used to determine compliance with the rent restriction. vii. Records of the types of services provided under the PJ’s program and the amounts spent on these services. viii. Records demonstrating subrecipient compliance with the recordkeeping requirements in Section VIII.F of this Notice. u. For all HOME-ARP Housing Counseling Services projects as defined in 24 CFR part 5, each participating housing counseling agency must maintain a recordkeeping and reporting system in accordance with 24 CFR 214.315 and 24 CFR 214.317. The system must permit HUD to easily access all information needed for a performance review. v. For all HOME-ARP-assisted nonprofit operating expense and capacity building assistance activities: i. Records concerning the use of funds for nonprofit operating expense and capacity building assistance must be maintained to enable HUD to determine whether the PJ has met the requirements of Section VI.F of this Notice. ii. Written agreements between the PJ and the nonprofit organization providing nonprofit operating expense assistance or capacity building assistance must be retained for five years after the agreement terminates. 3. Financial records: a. Records, in accordance with 2 CFR 200.302, identifying the source and application of HOME-ARP funds. Identification must include, as applicable, the Assistance Listing program title and number (formerly Catalogue of Federal Domestic Assistance), Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. b. Records concerning the HOME-ARP Investment Trust Fund Treasury account and local account required to be established and maintained by this Notice, including deposits, disbursements, balances, supporting documentation and any other information required by IDIS. c. Records identifying the source and application of program income and repayments. d. Records demonstrating adequate budget control and other records required by 2 CFR 200.302, including evidence of periodic account reconciliations. 91 4. Program administration records: a. Records demonstrating compliance with the written agreements required by Section VIII.B of this Notice. b. Records demonstrating compliance with the applicable uniform administrative requirements required by Section VIII.D of this Notice. c. Records documenting required inspections, monitoring reviews and audits, and the resolution of any findings or concerns. 5. Records concerning other Federal requirements: a. Equal opportunity and fair housing records. i. Data on the extent to which each racial and ethnic group, and single-headed households by gender of household head) have applied for, participated in, or benefited from, any program or activity funded in whole or in part with HOME- ARP funds. ii. Documentation that the PJ submitted a certification that it will affirmatively further fair housing consistent with HUD’s Interim Final Rule entitled Restoring Affirmatively Furthering Fair Housing Definitions and Certifications (86 FR 30779, June 10, 2021) (codified at 24 CFR 5.151 and 5.152;), available at https://www.federalregister.gov/documents/2021/06/10/2021-12114/restoring- affirmatively-furthering-fair-housing-definitions-and-certifications. iii. Records demonstrating compliance with the nondiscrimination and equal opportunity requirements of 24 CFR 92, Subpart H. b. Affirmative marketing and MBE/WBE records. i. Records demonstrating compliance with the affirmative marketing procedures and requirements of 24 CFR 92.351 and this Notice. ii. Documentation and data on the steps taken to implement the jurisdiction's outreach programs to minority-owned (MBE) and female-owned (WBE) businesses including data indicating the racial/ethnic or gender character of each business entity receiving a contract or subcontract of $25,000 or more paid, or to be paid, with HOME-ARP funds; the amount of the contract or subcontract, and documentation of participating jurisdiction's affirmative steps to assure that minority business and women's business enterprises have an equal opportunity to obtain or compete for contracts and subcontracts as sources of supplies, equipment, construction, and services. c. Records demonstrating compliance with the environmental review requirements of 24 CFR 92.352, 24 CFR part 58, and this Notice including flood insurance requirements. 92 d. Records demonstrating compliance with the requirements of 24 CFR 92.353 and the provisions of Section VII.F of this Notice regarding displacement, relocation, and real property acquisition, including but not limited to: i. project occupancy lists identifying the name and address of all persons occupying the real property on the date described in 24 CFR 92.353(c)(2)(i)(A), moving into the property on or after the date described in 24 CFR 92.353(c)(2)(i)(A), and occupying the property upon completion of the project; ii. lists of all individuals or families occupying hotels and motels and other nonresidential properties acquired, rehabilitated, and/or demolished and newly constructed to become HOME-ARP NCS or HOME-ARP rental housing that qualify for assistance under this Notice as members of a qualifying population, as well as records indicating whether such persons were assisted by the HOME- ARP program by the PJ following the closure of the nonresidential properties because of HOME-ARP activities iii. lists of all individuals or families occupying HOME-ARP NCS that were converted during the required use period that qualify for assistance under this Notice, as well as records indicating whether moving costs or advisory services were provided as part of HOME-ARP administrative costs or under the HOME- ARP supportive services activity in Section VI.D of this Notice, and records indicating whether such persons were assisted by the HOME-ARP program by the PJ following the conversion of the HOME-ARP NCS units. iv. Documentation that the PJ has and followed a RARAP in accordance with 24 CFR 92.353 and 24 CFR 42.325. e. Records demonstrating compliance with the labor requirements of 24 CFR 92.354, including contract provisions and payroll records. f. Records demonstrating compliance with the lead-based paint requirements of 24 CFR part 35, subparts A, B, J, K, M and R, as applicable. g. Records supporting compliance with conflict of interest requirements in 24 CFR 92.356, as revised by Section VII.H of this Notice, as well as documentation of any exceptions granted by HUD or a state PJ, as applicable, to the conflict of interest provisions in 24 CFR 92.356, as revised by Section VII.H of this Notice. h. Records demonstrating compliance with debarment and suspension requirements in 2 CFR part 2424. i. Records concerning intergovernmental review, as required by 24 CFR 92.357. j. Records of emergency transfers requested under 24 CFR 5.2005(e) and 24 CFR 92.359 pertaining to victims of domestic violence, dating violence, sexual assault, or stalking, including data on the outcomes of those requests. 93 k. Documentation of actions undertaken to meet the requirements of 24 CFR part 75 which implements section 3 of the Housing Development Act of 1968, as amended (12 U.S.C. 1701u). 6. State Recipients and Subrecipients: A PJ that distributes HOME-ARP funds to State recipients or subrecipients must require the State recipients or subrecipients to keep the records required by paragraphs 1. program records, 2. project records, 3. financial records, 4. program administration records, and 5. records concerning other federal requirements of Section VIII.F of this Notice, and such other records as the PJ determines to be necessary to enable the PJ to carry out its responsibilities under this Notice. The PJ need not duplicate the records kept by the State recipients or subrecipients. The PJ must keep records concerning its annual review of the performance and compliance of each State recipient and subrecipient as required under 24 CFR 92.504(a). 7. Period of record retention: All records pertaining to HOME-ARP funds must be retained for five years, except as provided below. a. For HOME-ARP rental housing projects, records may be retained for five years after the project completion date; except that records of individual tenant income verifications, project rents and project inspections must be retained for the most recent five-year period, until five years after the affordability period terminates. b. For HOME-ARP TBRA projects, records must be retained for five years after the period of rental assistance terminates. c. Written agreements must be retained for five years after the agreement terminates. d. Records covering displacements and acquisition must be retained for five 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 in accordance with 24 CFR 92.353. e. If any litigation, claim, negotiation, audit, monitoring, inspection, or other action has been started before the expiration of the required record retention period records must be retained until completion of the action and resolution of all issues which arise from it, or until the end of the required period, whichever is later. 8. Access to records: The PJ must provide citizens, public agencies, and other interested parties with reasonable access to records, consistent with applicable state and local laws and any other applicable grant conditions from other federal grant programs regarding privacy and obligations of confidentiality. The PJ, subrecipient, contractor, or owner may create a program participant identifier code or number that can be used on a file and maintained internally, in such a way that the number itself does not inadvertently identify the program participant, (i.e., no use of initials, date of birth, or other pieces of information that might suggest the identity of the program participant). The “key” or “cypher” for the program participant identifier code would itself be confidential and would not leave the provider. In the circumstance of HUD programs, the 94 Unique Personal Identification Number which is generated within the comparable database could be used with auditors to identify records of services to distinct individuals, subject to the below requirement. HUD and the Comptroller General of the United States, any of their representatives, have the right of access to any pertinent books, documents, papers, or other records of the PJ, state recipients, and subrecipients, in order to make audits, examinations, excerpts, and transcripts. If a provider of services or operator of an NCS is subject to state or local laws or other federal grant programs that require that HUD not be given access to records detailing PII of victims, then auditors or evaluators may be given access to representative files without any sharing of individual identifying information. G. Reporting and Performance Reports. The PJ must submit reports in a format and at such time as prescribed by HUD. In addition, HUD and Office of the Inspector General (OIG) staff must be given access, upon reasonable notice, to all information related to the selection, award, and use of HOME-ARP funds. Each PJ must enter the required HOME-ARP data elements timely in IDIS. 1. For HOME-ARP rental activities under Section VI.B of this Notice, the PJ must enter complete project completion information when it completes the activity in IDIS, except the assisted units can be marked vacant until they are occupied by eligible households. 2. For HOME-ARP NCS activities under Section VI.E of this Notice, the PJ must enter complete project completion information when it completes the activity in IDIS. In addition, the PJ must report the disposition of any HOME-ARP-assisted NCS activity that is converted to another eligible use at the time of conversion. 3. For HOME-ARP TBRA activities under Section VI.C of this Notice, the PJ must report beneficiary information in IDIS at the time assistance is provided. 4. For HOME-ARP Supportive Services activities under Section VI.D of this Notice, the PJ must report in IDIS quarterly, by the 30th day after the end of each calendar quarter, on the number of homeless and not homeless households assisted with supportive services and housing counseling, including the race and ethnicity, household size, and household type of the households assisted. HUD will issue guidance about reporting on HOME-ARP activities in the PJ’s consolidated annual performance and evaluation report (CAPER) required under 24 CFR 91.520, at a later date. H. Confidentiality Requirements 1. All entities assisted by HOME-ARP funds must develop, implement, and maintain written procedures to require that – 95 a. All records containing personally identifying information of any individual or family who applies for and/or receives HOME-ARP assistance will be kept secure and confidential; b. The address or location of any NCS or HOME-ARP rental housing exclusively for individuals fleeing or attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking will not be made public, except as necessary where making the address or location public does not identify occupancy of the NCS or HOME-ARP rental housing, when necessary to record use restrictions or restrictive covenants in accordance with Section VI.B or VI.E, or with written authorization of the person or entity responsible for the operation of the NCS or HOME-ARP rental housing; and c. The address or location of any program participant that is a fleeing or attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking will not be made public, except as provided under a privacy policy of the PJ consistent with state and local laws and any other grant conditions from other federal grant programs regarding privacy and obligations of confidentiality. 2. Documenting status of a qualifying population that is fleeing or attempting to flee domestic violence, dating violence, stalking, sexual assault, or human trafficking: a. If an individual or family qualifies because the individual or family is fleeing or attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking then acceptable evidence includes an oral or written statement by the qualifying individual or head of household seeking assistance that they are fleeing that situation. An oral statement may be documented by either – i. a written certification by the individual or head of household; or ii. a written certification by a victim service provider, intake worker, social worker, legal assistance provider, health-care provider, law enforcement agency, legal assistance provider, pastoral counselor, or an intake worker in any other organization from whom the individual or family sought assistance. The written documentation need only include the minimum amount of information indicating that the individual or family is fleeing or attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking and need not include any additional details about the conditions that prompted the individual or family to seek assistance. IX. PERFORMANCE REVIEWS HUD will review the performance of each PJ in carrying out its responsibilities for the use of HOME-ARP funds and its compliance with the requirements of this Notice. Such reviews may take the form of remote or on-site monitoring, review of IDIS data or reports, assessment of documents requested from the PJ, subrecipient, or other entity carrying out HOME-ARP activities, and inquiries resulting from external audit reports, media reports, citizen complaints, 96 or other sources of relevant information. HUD may also review a PJ’s timely use of HOME- ARP funds for eligible activities, including the progress of expenditures for individual projects or activities, the requirement to place a project in service in accordance with requirements in this Notice, and compliance of HOME-ARP rental housing and NCS with the 4-year deadline for completing projects. If HUD preliminarily determines that a PJ has not met a requirement of this Notice or an applicable requirement of the HOME regulations at 24 CFR Part 92, HUD will communicate its determination in writing and provide the PJ with the opportunity to demonstrate, based on substantial facts, documentation, and data, that it has done so. HUD may extend any time period it provided to the PJ to demonstrate its compliance if upon request of the PJ, HUD determines that is it infeasible for the PJ to provide a full response within the prescribed period. If the PJ fails to demonstrate to HUD's satisfaction that it has met the requirement, HUD will take corrective or remedial action in accordance with this section or 24 CFR 92.552. A. Corrective and Remedial Actions Corrective or remedial actions for a performance deficiency (e.g., failure to meet a provision of this Notice or an applicable provision of 24 CFR Part 92) will be designed to prevent a continuation of the deficiency; mitigate, to the extent possible, its adverse effects or consequences; and prevent its recurrence. HUD may impose corrective or remedial actions including but not limited to the following: 1. HUD may instruct the PJ to submit and comply with proposals for action to correct, mitigate and prevent a performance deficiency, including: a. Preparing and following a schedule of actions for carrying out the affected activities, consisting of schedules, timetables, and milestones necessary to implement the affected activities; b. Establishing and following a management plan that assigns responsibilities for carrying out the remedial actions; c. Canceling or revising activities likely to be affected by the performance deficiency, before expending HOME-ARP funds for the activities; d. Reprogramming HOME-ARP funds that have not yet been expended from affected activities to other eligible activities; e. Reimbursing its HOME-ARP grant in any amount not used in accordance with the requirements of this Notice; f. Suspending disbursement of HOME-ARP funds for affected activities; and g. Establishing procedures to ensure compliance with HOME-ARP requirements. 97 2. HUD may also: a. Change the method of payment from an advance to a reimbursement basis and may require supporting documentation to be submitted for HUD review for each payment request before payment is made; b. Determine the PJ to be high risk and impose special conditions or restrictions on the use of HOME-ARP funds in accordance with 2 CFR 200.208; and c. Take other remedies that may be legally available, including remedies under 2 CFR 200.339 and 200.340. B. Sanctions The requirements at 24 CFR 92.552 apply to HOME-ARP funds, except that the provision at 24 CFR 92.552(a)(2)(iv) related to failure to comply with matching contribution requirements shall not apply. X. FINDING OF NO SIGNIFICANT IMPACT A Finding of No Significant Impact (FONSI) with respect to the environment has been made in accordance with HUD regulations at 24 CFR part 50, which implement section 102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)). The FONSI is available for inspection at HUD's Funding Opportunities web page at: https://www.hud.gov/program_offices/spm/gmomgmt/grantsinfo/fundingopps.