Pre-Application Best Practices Training
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Transcript of Pre-Application Best Practices Training
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Pre-Application Best Practices Training
Prepared by NCALL Research, Inc.Updated February 2009
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Throughout this slide presentation, NCALL’s
recommended “best practices” will be denoted with a *BP.
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Introduction
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What’s the Difference Between a Pre-Application and a Final Application?
Pre-Application’s purpose, to demonstrate: Need for the self-help program in an area(s) Organizational capability Organizational eligibility
If approved, organization can begin working on the 523 Application
Preparing the 523 Pre-Application can take up to one year
*BP RD does not reimburse for funds expended before the grant period begins!
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Organizations must pay for:$ The cost of developing the 523 Pre-
Application$ Feasibility study$ Program and organizational development$ Preparing the 523 Pre-Application
*BP Seek other funds or raise funds from other sources
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Rural Development
Four office levels National Office
Develops policy, interacts with Congress, approves applications
State Office Allocates 502 funds based on a state formula,
approves smaller grants Area Office
Responsible for the 523 grant Local Office
Makes and monitors the 502 loans, co-signer for checking accounts, construction inspections
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RD provides administrative and loan funds
Expects grantees to carry out grant agreement
*BP A grantees working relationship with RD is critical to the success of the program
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NCALL and You
NCALL is available throughout the application process and in administering the self-help program
*BP Use us as a resource anytime assistance is needed
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B. Pre-Application Format
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Required Format
The pre-application: Format is very important Is required by RD to be in a specified order Must be submitted in a three-ring binder
with table of contents and tabbed sections *BP Use NCALL’s Pre-App checklist as
your guide
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1a. Standard Form 424, “Application for Federal Assistance, Version 2”
First form that the reviewer of your application will see
It should provide RD with: How many homes to be built During what period of time In what areas With what funds
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These blank forms can be obtained from: State or Area RD office NCALL Research, Inc. Whitehouse.gov/omb/grants/sf424.pdf *BP Want it fillable? Go to www.hudclips.org
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1b. Survey on Ensuring Equal Opportunity for Applicants
This survey helps to ensure that the government is fairly distributing grant funds
See Guide for sample
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2. Intergovernmental Review Submittal
Intergovernmental Review, State Point of Contact (SPOC) List fosters intergovernmental partnership and strengthens federalism
For list of appropriate contacts, see Guide or visit www.whitehouse.gov/omb/grants/spoc.pdf.
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3. Previous Experience
RD requires that the organization have the financial, legal, and administrative capacity to carry out the responsibilities of the Grant Agreement
vs.
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*BP A narrative statement about the organization’s previous experience and capacity to carry out the Grant Agreement is required. It may include: Summaries of previous and current RD funded
programs Summaries of previous and current other programs Description of current capabilities Experience or capability of relevant staff and Board
members Objectives of the organization
One must be “Production of affordable housing”
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4. Evidence of Organization
A copy of the provisions of state law under which the corporation was organized, or an accurate reference to the provisions organized under
Articles of Incorporation (certified, signed and dated) Bylaws (certified, signed and dated) Board list (5+, names, addresses, titles) Certificate of Incorporation 501(c)(3) certificate Evidence of good standing from Secretary of State If another organization is a member of your
organization – its name, address and principal business
If not formally organized, submit proposed documents
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5. Authorized Representative of Applicant
Provide the name, address and official position of the applicant’s representative that is authorized to act for the applicant and work with RD
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6. Information About Sponsor
A sponsor is an organization that must have the background, experience and financial ability to help your organization in applying for the 523 Grant and in carrying out the responsibilities of the Grant Agreement
A written agreement must be shown to RD A narrative of sponsor’s experience and
capabilities is required (same organizational information as required in Section 3)
If no sponsor, indicate “Not Applicable”
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7. Current Financial Statement
A financial statement is required and should be prepared by an accountant (or sponsor’s accountant), and must be no more than 12 months old
It must be dated and signed by the Executive Director or Board President
Specific nature of assets and liabilities must be identified
An audit may be used in lieu of financial statement
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8. Narrative Statement
The narrative statement should begin with a short paragraph that summarizes:How many homes are being plannedWhat area they will be builtHow much grant funds are being requestedWhat time period is planned (usually 24
months but can be less)NARRATIVE
STATEMENT
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A description of the area to be served is needed *BP Include maps, population and housing
statistics *BP Collect current data, include only what
supports the need Sources: U.S. Census, State Housing
Finance Authority, local government housing plan, area housing authorities, area Board of Realtors
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Include housing conditions and why families need self-help housing *BP Analyze your data for comprehension.
What does it show? Growth? Substandard housing? Income qualifications? Vacant rentals? Cost of housing?
A need occurs when very low and low income families want their own homes but adequate, affordable housing is not available to them!
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*BP Prove affordability! Estimate the cost of the self-help homes to
the participants Give estimate of monthly principle,
interest, taxes, insurance (PITI) payments and total debt ratios
Compare this figure to the cost of homes in the area
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Provide evidence of low-income families willing to contribute labor Document names, addresses, number in
household, total annual incomes and date of contact
*BP NCALL recommends that organizations obtain at least twice as many potential participants and would be needed to complete the grant
*BP Include a statement on the list that the participants have had the program explained to them and are interested in participation and providing required own labor
See sample form in Guide
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Evidence of community support is required Include letters of support from local
officials, individuals and community organizations *BP Develop and distribute brochures or
fact sheets. Develop a relationship with the media. Know the benefits and drawbacks of the program. You will be asked!
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Benefits of community support:Help organization with leveraging
additional dollars for incorporation and start up
Provide needed political support from town and county governments
Help create a positive self-help housing image
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Sources of community support: Those in need of improved housing Town and county governments Churches/religious groups Civic organizations Social service agencies Other nonprofits General public Business/industry sectors Media
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9. Outreach Plan for Very Low Income
A plan is required of how you propose to reach the very low income families It is important to reach families that are living in
housing that is deteriorated, dilapidate, over crowded or lacking in adequate plumbing
VLI- Minimum of 40% of total families building in program must be VLI
Develop a marketing strategy that will reach and recruit the families needed for your program
Very Low Income (VLI) – 50% of area median income or below
Low Income (LI) – Between 51 – 80% of area median income
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10. Budget Information – Non Construction
SF – 424A Budget Narrative Method of TA Costs
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Proposed budget must be on form SF-424A, “Budget Information (Non-Construction Programs)” Use the example in Guide to complete this
form or go to www.hudclips.org *BP Also include a detailed budget and a
budget narrative This will come in handy when completing the
Final Application
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Authorized expenses: Personnel salaries Reasonable office expenses and supplies Employment benefit costs Purchase or lease of power tools Insurance Reasonable fees for training Consultant and legal fees Annual audits
Prohibited use of funds: Paying for labor on the houses Purchasing real estate or building materials for the
families Paying any debts, expenses or costs to the participants Any lobbying activities prohibited in OMB Circular A-122
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See Guide for:$ SF 424A (rev. 7/97) and instructions$ *BP Preliminary Budget Preparation Guide$ *BP Budget Worksheet$ *BP Sample Budget Narrative
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National Self-Help Housing Directors Association (NSHHDA) An organization consisting of self-help
housing grantees across the nation unified by voice and cause
Annual dues are required to join the association and are allowable under the Section 523 Self-Help Housing Grant
Dues help to lobby Congress for increased funding and improved laws to assist the cause of rural housing
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Current annual dues for NSHHDA:523 Grant Amount Dues0 - $200,000 $200$200,001 - $500,000 $300$500,001 - $1,000,000 $400Over $1 million $500
*BP Don’t forget to add this expense into your budget!
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11. Determination of TA Grant Amount
Maximum TA Amount Calculation is required A letter from RD identifying what the EVMH is
for proposed counties TA Cost is the technical assistance (TA)
cost per house and is a guide that RD uses to estimate reasonable cost of a self-help program TA cost = Total grant amount / # of houses
organization proposes to build Example: $228,000 / 12 homes = $19,000
maximum TA cost per house
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Method A: The Equivalent Value of Modest Housing (EVMH) x 15% x Number of Homes Proposed = Maximum TA Budget
$________ x .15 x _____ = $_____________
Example:EVMH = $115,500 x .15 = $17,325 (TA per
home) x 12 homes = $207,900 (amount of grant request)
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Method B: EVMH – Average mortgage - $1,000 = Maximum TA cost per house (This can only be used by experienced grantees or those who know what their mortgages will be.)Example: $128,000-$105,000-$1,000=$22,000
Method C: Amount established by the State Director to accomplish a particular goal
*BP Use worksheet on page 83 to calculate maximum per unit TA amount
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*BP Do a realistic budget before determining your TA grant amount to see if your budget is truly realistic and falls within RD’s guidelines
The TA Grant amount depends on organization’s experience and capacity
Maximum amount for any grant period will be limited to a certain TA cost per house
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12. Preliminary Land Survey
Proof of available lots *BP Include at least the minimum amount of
lots for the Pre-Application Use MLS listings or deeds if the land is
already owned *BP Include narrative detailing expected cost
and anticipated development Maps showing local and regional area
are also required
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During Final Application, you will need to show RD proof of control of lots or access to suitable building sites as defined by RD
The more work that you do now, the less that you will have to do later
*BP Land is a scarce resource; suitable land even more scarce. Many programs have failed or gotten off to a rough start due to land delays. Work closely with RD to find possible lots.
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*BP Subdivisions are time consuming, come with many delays and have too many unknown variables. If possible, find developed lots for your first grant.
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13. Other Applicant Activities & Indirect/Direct Cost
List all of the other activities that the organization is engaged in and expects to continue Include brief description of the programs and
organizations role in them Indirect cost rate or direct cost allocation plan
required Document the indirect cost rate or the lack thereof If an organization has never obtained an indirect
cost rate, grantee must submit the indirect or direct cost policy with the 523 pre-application
Prepare proposal for submission to DOI for approval DOI will not review proposal until grant is approved
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Indirect Cost Mechanism used by federal government Recommended when shared costs become
impractical to be charged directly to various funding sources
Direct Cost Allocation Used by single funded organizations or those
which can track costs consistently
RD has a contract with Department of Interior’s National Business Center to approve cost policies
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Cognizant agency Usually the largest federal funding source of an
organization Acts on behalf of all other federal agencies in approving an
organization’s indirect cost rate or direct cost allocation plan
RD has contracted with the Department of Interior’s National Business Center (DOI)
DOI may help design and will have to approve the cost plan Indirect cost rate is proposed to the cognizant agency and
then an agreement is reached If the USDA RD 523 grant is the largest federal funding
source, the indirect cost rate proposal and/or cost allocation plan needs to be submitted to DOI
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*BP When comparing which method to use, consider the time and money required to achieve the greater degree of accuracy, avoiding inconsistent costing
*BP Expedite application processing by: Including a cover letter stating that your
organization currently receives funds from USDA RD Include the most recent audited financial
statements Need more information or sample forms? Go
to: http://www.nbc.gov/icsprep.html
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*BP Remember teamwork, if assistance is needed in developing a plan, contact NCALL, RD or the DOI for help
See Guide for Sample Allocation of Shared Costs Using a Direct Cost Allocation System
See Guide for Sample Allocation of Shared Costs Using a Indirect Cost Rate System
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14. Pre-Development Grant Assistance Request
Pre-Development Funds Purpose is to provide funds to develop a
523 final grant application Available once for a defined area (for
existing or potential grantees) Requesting organization must lack the
financial resources necessary to develop the final application
Grants are for up to $10,000 for up to six months
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If requesting pre-development funds include: Brief narrative identifying the need, amount
of funds needed and projected time period Budget You may request up to $10,000 for up to 6
months If not requesting pre-developing funds
include: Include a sentence to that effect in the pre-
application
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If funding is available and the pre-application is reviewed and approved, the RD State Director may approve the request
Pre-development grant is not figured in the TA cost per unit
Detailed accounting records of these funds must be maintained
Authorized and prohibited uses of pre-development funds same as those of 523 grant
*BP See Guide for sample request
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15. HUD Fair Housing Marketing Plan 935.2B (8/2006)
Affirmative Far Housing Marketing Plan HUD Form 935.2b, required for self-help
program Follow instructions Use accurate information Marketing plan designed to attract those
“least likely to apply” Special outreach for those groups required Plan approved and monitored by Rural
Development See Form in Guide
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16. Civil Rights Impact Analysis Certification, Form RD 2006-38
2006-P, 2006.754(b) Complete this form and include it in the
application
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17. Compliance Review (Pre-award)
Form RD 400-8 Hold a section for this to be added later
by RD
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18. Self-Help Technical Assistance Grant Pre-Development Agreement
1944-I, Exhibit D Sign and include this form if requesting
Pre-Development Grant Do not date Will be dated when executed by RD
See Guide for Agreement If not requesting Pre-Development
Grant, include this section but write “Not Applicable”
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19. Authorizing Resolution
A resolution must be adopted by the Board of Directors: Authorizing one or more specified persons
are authorized to act on organization’s behalf
It must state that they are able to: Sign the Grant Agreement, 1994-I, Exhibit A Sign Form RD 400-4 “Assurance Agreement” Work with RD on the self-help program
Must include authorized person’s name, title, address
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20. RD Managers’ or Area Managers’ Recommendation
Hold a section for this to be added later by RD
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21. T&MA Contractor’s Review and Recommendation
Hold a section for this to be added later by RD
Required under National Office Contract
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22. OGC Review (if necessary)
If necessary, RD may send organizational documents for OGC for their review
Hold a section for this to be added later by RD
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23. Review Action and Letter of Conditions
Hold a section for this to be added later by RD
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24. Request for Obligation of Funds Form RD
Include this completed form, RD 1940-1 At item 45, on the back, have the
authorized representative sign and date two copies of the form
See Guide for sample
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C. Putting the Pre-Application Together
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Putting the Pre-Application Together
*BP Use the RD Checklist for order and format
*BP Include Table of Contents and tab the sections to make the information easier to locate
*BP Check every page for completeness, signatures and dates (RD will return the pre-application if it is not complete and in order of the Table of Contents)REJECTED PRE-
APPLICATION!
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*BP NCALL recommends that organizations send their pre-application to us first This is considered a “DRAFT” We perform a “DRAFT” review that will give
you feedback on content and completion Make adjustments “Draft” is now an “Official” Pre-Application
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*BP Make three copies of the “Official” Pre-Application Official and two copies goes to RD office
designated to receive the grant application You keep a copy! RD will keep a copy and send NCALL a copy
for review NCALL’s review must be completed within 15
calendar days NCALL’s review letter goes to the State Director
You cannot send or give NCALL a copy!
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Review ProcessThe review process should take 60
days or lessRD does their review only if the
application is complete!RD verifies that a need exists and that
adequate resources will be available for the program
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ApprovalIf complete, State Director requests
approval from National OfficeOnce obligated, AD-622 and Letter of
Conditions issued*BP When you receive notice, notify NCALL
so we can set up future training (forward to us a copy of the grant agreement)
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D. Developing a Self-Help Housing Program / Know the
Program
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Developing a Self-Help Housing Program
*BP Be realistic. Go into the process with your eyes open
*BP Know that this is a lengthy process *BP Recognize the commitment of staff
and board time *BP Be aware that housing is a political
animal and requires community support *BP Don’t expect overnight success *BP Set realistic expectations
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*BP Be committed and serious about developing a self-help programHousing will need to be a priority for youAccountabilities are highStrive to meet time frames setRecognize fiscal responsibilities and
advantages of self-help housing for your organization
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*BP Other ingredients to develop a successful self-help housing program include:Obtain all applicable housing regulationsSubscribe to or request housing
publications such as HAC News, NRHC Legislative Update, NCALL’s Self-Helper
Have access to federal and state registersJoin the mailing list of your state housing
finance agency
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Build a housing resource libraryJoin your state housing coalitionsJoin local and state chapters of NAHRO,
CHRB, etc.Know your local housing marketProvide proper orientations and training of
the program for board and staffVisit another self-help housing
organization
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Program Decisions
*BP Determine the number of homes to build Be very realistic! Consider availability of suitable building
sites Consider need for housing in your selected
area Consider number of persons eligible to
participate
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*BP Determine ways in which to reach very-low income Know your target market This will help you determine methods of
outreach, time needed, manpower necessary and cost
There is more on recruitment later in the training
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*BP Determine staff needs and size Should correlate with number of homes to
be built Traditionally, staff consists of ¾ people:
Executive Director/Project Director Group Coordinator/Loan Packager Secretary/Bookkeeper Construction Supervisor
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Know the Program
*BP RD instructions provide policy, guide, and basis for the program operations. Be familiar with them.
Use the internet as needed to look up regulations and information, rurdev.usda.gov /regs/
*BP Know 1944-I! Please refer to the manual for a list of
other regulations to become familiar with
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*BP You can print out the 1944-I and HB-1 3550 but these instructions change often, so we encourage the use of the internet
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Project Planning and Management
Project SH project have a beginning and an end Should be carried out with the intent of meeting
established program goals Costs, time schedule, and objectives are
predetermined Project vs. Organizational
Project decisions approached differently than organizational
Project focuses on specific time and results vs. organizations plan to exist indefinitely
Projects need part-time resources vs. organizations need resources full-time
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*BP Four phases of project management Conceiving and defining – feasibility and
pre-application Planning – final application stage Implementing – grant closing to grant close
out (1-2 years) Completing and evaluating – happens
internally by management and the Board and externally by RD with Final Evaluation
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Planning the Project Planning is crucial in project management Not a to do list Plan transforms work from a series of steps
into a bundle of responsibilities for results A good plan tells you where you are going,
how to get there and how you know that you have arrived
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Planning the Project
Planning Steps Establish project objectives Choose basic strategy for achieving the objective Subdivide project into subunits or steps Design necessary staffing pattern Design cost for each subunit
A good budget’s main function is to monitor the cost and to avoid overruns
You cannot estimate cost until you break down the budget into line-items.
Determine what training is needed for team members
Develop necessary policies and procedures Develop a plan of action
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Participant Recruitment & Program Marketing
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*BP No matter what happens, remember these three rules:
Do not get discouraged Try something new Plan ahead
Introduction
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Developing a Recruitment Plan
Step 1 - Know Your Target Market Where is your targeted market located?
Work, church, home, clubs, PTA, etc. What media reaches them? Radio, TV,
newspaper, etc. Where do they go and when?
Laundromats, gas stations, grocery stores, restaurants, daycare, community events
Who are your community partners? Social service agencies, lenders, rental agencies, realtors
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Ask the people who respond to recruitment efforts
Ask social service agencies
Step Two – Analyze the InformationReview the data collected to determine
where and how to reach most families
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Step Three – Investigate Contact organizations, employers,
churches, radio stations, newspapers, etc.
Get the word out about your program! What are your costs? Are there other
FREE methods available?
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Step Four – Plan and Make Decisions Can you delegate tasks? Do you have to do everything yourself? What are your time frames and dates for
objectives? Cost is also very important. What does your
marketing and advertising budget look like? How can you make your program its most
effective? Refer back to “Recruitment Methods” for
some ideas
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Step Five – Develop a Message Before contacting the media or producing
brochures, know what you want to say The message is not and should not be
intended to tell everything about the program.
All advertisements must have the equal housing opportunity logotype or slogan on
them
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Five elements of a good message:1. Attract Attention – Create interest2. Stress Advantages & Benefits of the
Self-Help Housing Program3. Prove What you Say is True4. Persuade5. Ask for Action
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Attract Attention An “Attention Getter” is needed to
create interest Could be a photo Use of color Exciting statement or question
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Stress Advantages and Benefits Product – the home itself Price – Low cost of the home, Low
interest rate, Families save money Self - Learning skills, improving their
life, becoming independent
Make a list and prioritize the benefits for your potential participants
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Benefits of Self-Help Housing Means different things to different
people Decide which aspects are important
to your targeted market Incorporate these aspects into the
message Do not incorporate too many
benefits
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Sample Chart of Potential Benefits
Product – Stress Advantage
Modern convenient, well built
Energy-efficient Quality materials Maintenance free Designed to meet
your needs Modern
appliances
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Price – Stress Value•House payments based on ability to pay•No down payment•Save money•Affordable financing•Best financing in the country for new construction
Self – Stress Improvements•Sense of accomplishment•Independence•Improving yourself•Doing better for yourself•Security. Happiness.•Better, safer environment for family•Develop construction/maintenance skills
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*BP Prove What You Say Is TrueFour tactics can be used:
1. Testimonials – Past client speaks of benefits
2. Comparative quality – Comparison between self-help home vs. contractor built home 3. Reputation - If your organization has a good reputation in the community, use it 4. Successful Performance – After 1st group is complete, potential families and community members see successful program and nice homes
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Persuade Get the potential participants to grasp
that they can enjoy the benefits and rewards of becoming a successful homeowner
Many think that they cannot be a homeowner
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Ask for Action Call today Coming by our office Attending the community meeting Mail in a coupon, etc. Make it easy Always be prepared
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Newspapers – Both daily and weekly, try free and paid advertising, featured article, ad positioning is critical, classified adds great in some areas, activities announcements
Radio - paid ads, PSAs, talk shows, interviews
Television - featured on the local news, local community forum programs or PSAs
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Recruitment Methods to Try
Recruitment Methods to Try
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Flyers, Posters, Handouts - simple, easy to read, attractive flyers for public distribution in RD offices, stores, laundromats, CAP agencies, social service agencies, community bulletin boards, restaurant, etc.
Brochures – can be the best marketing tool used, place in supermarkets, laundromats, restaurants, waiting areas, public service facilities
Direct Mailings - can be expensive, may be more rewarding, church mailings, waiting lists for subsidized rental housing, enlist assistance of social service agencies, AFDC agencies and local employers
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*BP Community Meetings Trade Shows, Human Service Fairs,
Mall Exhibits, Community Fairs - consider time and effort needed
Organizations, Colleges, Trade Schools, Headstart, Migrant Education Centers
Community Action Agencies (CAA) Churches 98
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Local governments – referrals for families, land, grants
Local employees - post brochures on their bulletin board, stuff employee paycheck envelopes, or set up a table in the break/lunch area
Contact members of low-income apartment complexes
Host a tenants’ meeting Ask to distribute letters to persons on waiting
lists for subsidized rental housing Meet with a core group of social service repr.,
brainstorm on how to reach families 99
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*BP Recruitment MethodsTry many options to determine what
works best for youStay in contact with the local mediaTry the classified ads!Radio stations – morning program
usually have a larger target listening areaTV – try to get a local featured interview.
Public service announcements (PSA) are free – use them!
Paper distribution - Flyers, posters, handouts, brochures
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Market Research
Eliminates trial and error in recruitment
Know which methods worked best and are reaching target market
Survey those who have responded to recruitment efforts (See sample in Guide)
Continuously review and revise strategies to keep activities alive
Your goal should be to have “word of mouth” work for you 101
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The News Release
Major vehicle for communicating with the media
Knowing the purpose, design and uses for them can improve your chances of getting published
*BP Send a “thank you” note for any publicity your agency receives
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The following guidelines should be useful: Decide on the message – must be interesting to
target market Select the media – message and intended
audience usually drives which media to use Put it in writing – prepare a properly written
release Mail to the right person Mail by the deadline
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Content of the Release Familiarize yourself with chosen
publication Select information of interest Remember the 5 “W”s – Who, what,
when, where, why …and sometimes how
Be sure that they are all in the story
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News Release TipsKeep it briefWrite in a simple, factual styleAvoid opinionsDon’t make assumptionsBe accurateMake the story interesting
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Structure of a News ReleaseRule #1 - Keep sentences and
paragraphs short and clearRule #2 – Place all facts at the
beginning of the story with quotes
*BP News story sentences should be 16-21 words long. Paragraphs rarely should consist of more than three sentences.
106
FACTSDETAILS
END
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Other Media Tips
When the media calls: Be certain of who is calling and from
where Know the reason for the interview Know your facts or refer him/her to the
right person It is ok to get back with them on
information
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Develop a list of key points Make time for the interview or arrange
to call them back Do not answer questions that would
violate confidentiality rules, legal restrictions, or agency policy
Do not say “no comment”, explain why you cannot comment
Be clear and polite108
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During the Interview Say things that the interviewer will remember Always tell the truth If you do not know the answer, say so...Offer
to get back with them the answer and do so ASAP
Personalize your answers Avoid jargon Only state your agency’s position Rephrase negative or objective questions
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On the Radio Your voice becomes your image Your appearance is still important Maintain good posture, it aids your
voice and appearance Don’t let the microphone intimidate you Practice enunciating your words Practice answering anticipated
questions 110
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Television Appearance Your appearance – Look in the mirror first,
practice minimizing jesters Your attire – Be clean and professionally dressed Avoid certain colors – Ask host what is
appropriate Speak conversationally Follow direction on where to look when
responding to questions Thank the host Ask for a copy
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Land
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Finding the Right Site
Undesirable features: Site in flood plain Steep terrain Forested lands or prime farm lands Site adjacent to or near airports, railroads,
major highways factories, landfills, etc. Soil unsuitable for on-site septic systems Current industrial use Existing easements which would interfere or
restrict the proposed building
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Desirable features: Flat or mildly sloped land Shape and size of land lends itself to housing Existing water and sewer Existing paved roads Correct zoning Accessible to services and public facilities Soil suitable for on-site septic system if necessary Adequate ground water supply for wells Uses of adjacent sites compatible to proposed
project
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Land Survey Criteria
Land must be in a rural area Lot size – can not be subdivided Roads – contiguous to and must have
direct access to a street, maintained road or driveway, must be paved or all weather
Water – approved well or public central water system *BP Public water is preferable
Sewer – approved public sewer or septic system *BP Public sewer is preferable
Site approval – State Director delegate site approval responsibility to appropriate person
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Land Development
Key ingredient to the program Approach the search in an organized and
systematic manner Controlling land is critical Many other activities depend on it Interim financing may be necessary 523 funds may not be used to option or
purchase land *BP Contact RD for ideas on where to look
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Land Survey Resources
7CFR Part 3550 1924-A 1924-C RD Community Development Manager Health Department County or City planner, engineer, or city
planner Soil Conservation Service Soils Book County Court House, Tax Office, Recorder of
Deeds Utility Companies
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Land Survey Process
Preparing a site search map Identify land that is completely ineligible Identify and plot locations with desirable
features Plot drawbacks Talk to county governments or local
universities to help with survey process Windshield survey – review sites for:
Topography, flood plains, erosion Access to public roads, vegetation, existing
structures Unique features
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Land analysis form Investigate ownership Check into tax records Assume that every parcel is for sale Complete form, Attachment 6
Selecting the site Assess suitability of the location Check zoning Look for community facilities Make sure it fits RD guidelines Would you want to live there? Why or why
not? Assess physical characteristics Determine acquisition and development costs
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Optioning vs. Purchasing
Option agreements Contract between seller and potential buyer Buyer not obligated to buy, seller obligated to
sell Options should be between seller and participant See sample Option in Guide See Option language in Guide
Purchasing land Grantees can purchase land for later resale to
participants Can be beneficial when purchasing multiple lots 523 funds cannot be spent for this purpose Interim financing necessary
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Interim financing No single pot of money available Seller financing may be an option AHP, CRA, CDBG, HOME, Housing Trust
Funds HAC Other private corporations or
foundations See NCALL’s Funding Sources Guide for
more information
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E. Monthly Activities Schedule
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*BP See Guide for recommended schedule of activities for preparing the pre-application
E. Monthly Activities Schedule
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Personnel
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Salary Ranges and Fringe Benefits
Develop salary ranges and fringe benefits for each position
Both must be justified as being reasonable in the proposed area (OMB Circular A-112, Attachment B, Paragraph 6(2))
A good salary survey can help establish fair and competitive rates
*BP See Guide for sample survey
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Developing Job Descriptions
See Guide for sample job descriptions *BP We recommend that new grantees
use the traditional SH positions Rural Development needs to be notified
for prior approval prior to hiring changes occurring
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Job descriptions are required, typical staffing for the self-help program are: Executive Director/Project Director:
Responsible for running and managing the self-help housing program
Group Coordinator/Loan Packager: Works directly with the participants, screens, counseling,
training, helping them fill out the required forms, etc. Secretary/Bookkeeper:
Keeps records for 523 grant funds and 502 participant loan accounts
Construction Supervisor: Responsible for construction
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Salary Range and Fringe Benefit Areas of Concern
Job descriptions In order to get a comparable survey, review job description,
not title Concentrate on duties
Suitable agencies Consider size of organization and one with a similar operation Consider geographic and economic similarities
Consider budgetary limitations No matter what the salary survey indicates, the budget may
not be able to afford that amount Consider hiring some part-time staff
Mutual benefit Have personal contact Offer to share results
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Building Standards
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Dwellings financed must provide modest, decent, and sanitary housing
The home must be affordable to the family
Cost cannot exceed RD’s area loan limit Cannot have swimming pool or income
producing facilities Construction must meet the
requirements in 1924-A
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House Plans
Certified house plans will be required, during the final application stage, for EVERY model that will be built during the grant period A complete set consists of plans and blueprints
which have been certified by an architect or engineer licensed in your state
Blueprints need to include the following views with mechanicals noted: Foundation plan Floor plan Cross section Front and rear elevations Right and left side elevations
CERTIFIED!
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Local and state building codes set the minimum standards
Local authorities can require additional standards
All house plans must be approved by RD Research building codes for each location
since requirements may vary Each plan must conform to state and local
codes and comply with RD’s standards The dwelling must also be affordable to the
applicant
Codes and Standards
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There are several ways to obtain house plans: Local Building Supplier House Plan Book Rural Development NCALL Other Self-Help Providers Software – Cheap Architect
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Cost of Obtaining House Plans
Take into consideration cost before committing to the house plans
Remember, it costs on average $500 - $700 per set of plans
You owe me $4,200!
YOU
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Limit selections to three basic plans Plans can have varying living areas and varying
number of rooms Cost estimate and use of materials will remain the
same Construction Supervisor and participants will
become familiar with plans Try to standardize the cabinet and kitchen
arrangement House plans should be prepared in advance of
the formation of the first group of participants Only one set needs to be certified original, the
rest can be copies
Standardize Plans
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*BP Choose plans based on what is in Choose plans based on what is in demand by surveying the target area demand by surveying the target area and participants’ affordability!! and participants’ affordability!!
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Fair Housing
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Introduction
The right to fair housing is set by law Training in this area is crucial Effects every staff person in the self-
help program Right to fair housing enforced by formal
complaint process, litigation, testing and monitoring
Lack of knowledge is no excuse
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The Fair Housing Act
Prohibits discrimination because of: Race or color National origin Religion Sex Familial status Handicap / Disability
Covers most housing, definitely federally financed
Law effects sale and mortgage
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Other Applicable Laws
Know that housing laws exist and must be enforced. Such laws include: Title VI of the Civil Rights Act of 1964 Section 504 of the Rehabilitation Act of 1973 Age Discrimination Act of 1975 Title II of the Americans with Disabilities Act Section 109 of the Housing and Community
Development Act of 1974 Title VIII, Title VI Record keeping requirements: racial & ethnic data
((1901.202(g))
Helpful Websites: HUD: http://www.hud.govUSDA: http://www.rurdev.usda.gov
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Affirmative Far Housing Marketing Plan HUD Form 935.2b, required for self-help
program Follow instructions Use accurate information Marketing plan designed to attract those
“least likely to apply” Special outreach for those groups required Plan approved and monitored by Rural
Development
Fair Housing Marketing
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Fair Housing Advertising
To comply with Fair Housing Act requirements must be met No discriminatory or limiting words or
phrases allowed No selective use of media and models
which can lead to discriminatory results Use fair housing policies and practices
All advertising for real estate must contain the equal housing opportunity logotype, statement or slogan
For further details, see Guide
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Equal Housing Opportunity Logotype - Equal Housing Opportunity Slogan
“Equal Housing Opportunity” Equal Housing Opportunity Statement
“We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support affirmative fair housing advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status, or national origin.”
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Participant Selection and the Membership Agreement
*BP Two ways to ensure that all fair housing laws are being followed Consistency Documentation
A person with a disability cannot be denied the right to participate in the Mutual Self-Help Housing Program
RD and grantees are to make reasonable accommodations which allow someone with a disability to participate
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“Participating family” definition allows substitute labor with prior approval by State Director
In reward and corrective action, participants should be treated equally
*BP Follow rules in Membership Agreement, always
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Identifying and Solving Potential Fair Housing Problems
Contact Rural Development or HUD immediately
Use mediation and all available resources
Understand the complaint process Complaints must be filled within one year Either HUD or RD may investigate Try to reach a conciliation agreement If agreement breached, further legal action
taken
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Additional Resources
Various fair housing training materials exist
HUD’s Fair Housing Information Clearinghouse has brochures, videos, PSAs, posters
Rural Development can also provide materials and training
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Stay in Compliance
*BP Review the Affirmative Fair Housing Marketing Plan every quarter to insure compliance
Enforce Fair Housing Advertising requirements
Display Fair Housing Posters as required by RD
Questions should be addressed to State Civil Right’s Coordinator
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The End