Capital Fund Guidebook - HUD.gov / U.S. Department of ...

1 Department of Housing and Urban Development Office of public and Indian HousingCapital Fund Guidebook4/1/16 ii | 4/1 Department of Housing and Urban Development Office of public and Indian HousingCapital Fund Guidebook 4/1/16 | iiiTable of ContentsChapter 1 Background and Introduction .. General Overview.. Types of Capital Funds Grants .. History of the public Housing Program ..3 Exhibit Example Opinion Regarding Declaration of Trust ..6 Chapter 2 Eligible Activities and Cost Limits .. Eligible Activities Overview .. Development .. Financing.

2 Modernization and Physical Work .. Soft Costs.. Safety and Security.. Other Costs.. Ineligible Activities.. Cost and Other Limitations..21 Chapter 3 Planning, Annual Submission, and Distribution of Funds .. Overview..26 Capital Fund Program (CFP) Annual Formula Grant Process .. Planning Physical Needs Assessment (PNA).. Planning Energy Audit.. Planning public Hearing.. Planning Pre-Submission Details.. Capital Fund Submission.. Amending the 5-Year Action Plan.. Relationship Between Capital Fund Submission and PHA Plan.. Approval of 5-Year Action Plan.

3 Spreading Capital Fund Grants into LOCCS..36 iv | 4/1 Initial Disbursement of Capital Funds.. Moving to Work (MTW) PHAs..37 Exhibit Capital Fund Submission: PHAs other than MTW PHAs ..40 Exhibit Capital Fund Submission: MTW PHAs ..41 Chapter 4 Capital Fund Formula Calculation .. PIC/IMS Certification .. Unit Count for Formula Calculation .. Computation of Formula Shares .. Faircloth Limit .. High Performer Bonus ..44 Chapter 5 Replacement Housing Factor Grants and Demolition and Disposition Transitional Funding .. Replacement Housing Factor Grants (RHF).

4 RHF Planning Requirements .. Obligation End Date and Expenditure End Date Requirements for RHF Grants . Rejection of RHF Grants .. DDTF .. Transition from RHF to DDTF .. Determining Demolition or Disposition Date ..51 Exhibit Detailed Description of RHF to DDTF Transition ..52 Exhibit Model RHF Plan Submission ..53 Chapter 6 General Program Requirements and Implementation .. Environmental Reviews [Reserved] .. Real Property Acquisition and Relocation .. Wage Rates .. Procurement and Contract Requirements .. Force Account Labor.

5 60 4/1/16 | Contract Administration and Acceptance of Work .. Nondiscrimination and Equal Opportunity Requirements .. Compliance with Physical Standards .. Affordability Requirements ..69 Exhibit Mandatory Contract Clauses ..71 Exhibit Mandatory Contract Clauses all purchases ..72 Exhibit Periodic Part 58 Broad Scope Review of Categorically Excluded CFP Activities ..75 Exhibit Environmental Review Process ..77 Chapter 7 Obligation, Budget Revision, Expenditure, and Closeout .. What is an Obligation? .. Obligation Requirements of Capital Fund Grants.

6 OED Extension .. PHA Reporting .. HUD Monitoring .. Consequences of Noncompliance with the Obligation End Date Penalties and Sanctions .. Types of Budget Revisions .. Budget Revision Procedures .. Expenditure of Capital Fund Grants .. Fiscal Closeout ..92 Exhibit Obligation End Dates and Expenditure End Date ..95 Chapter 8 Emergency, Non-Presidentially Declared Natural Disaster, and Safety and Security Grants .. Overview.. Emergency and Non-Presidentially Declared Natural Disaster Grants.. Eligible and Ineligible Uses: Emergency and Non-Presidentially Declared Natural Disaster Grants.

7 Preliminary Funding: Non-Presidentially Declared Natural Disasters Only ..100 vi | 4/1 Emergency and Non-Presidentially Declared Natural Disaster Grant Applications .. Managing the Emergency and Non-Presidentially Declared Natural Disaster Grant .. Safety and Security Grants .. Eligible and Ineligible Uses: Safety and Security Grants .. Safety and Security Grant Applications .. Obligation and Expenditure of Safety and Security Grants .. Grant Closeout for Emergency and Non-Presidentially Declared Natural Disaster Grants & Safety and Security Grants ..107 Chapter 9 public Housing Development.

8 Methods of public Housing Development.. Development Process Overview.. Sources of Funding For General Program Requirements.. Mixed-Finance Development .. Site Acquisition Proposal .. Development Proposal .. Review of a Development Proposal .. Funding and Disbursements ..127 Exhibit Site Acquisition Checklist ..129 Exhibit Development Proposal Checklist (Non-Mixed-Finance)..131 Exhibit Field Office Responsibilities for Mixed-Finance Projects ..135 Chapter 10 DEMONSTRATION PROGRAMS: RAD AND MTW .. Rental Assistance Demonstration (RAD) .. Procedure for RAD Conversion.

9 Moving to Work (MTW) ..140 Chapter 11 Security Interests and Financing Activities .. Capital Fund Financing Program (CFFP)(24 CFR Part 905, Subpart E) ..143 4/1/16 | Operating Fund Financing Program (OFFP) .. public Housing Mortgage Program (PHMP or Section 30) .. Capital Fund Education and Training Community Facilities (CFCF) Program .. Capital Financing Not Secured By public Housing Property ..156 Exhibit HUD Review Checklist for Section 30 Proposals Related to EPC .. Transactions ..159 Chapter 12 Compliance, Penalties and Sanctions ..163 Appendix 1.

10 Definitions: The following definitions apply to this Guidebook : ..166 Appendix 2. Eligible Activities Chart ..176 Appendix 3. Guide for Registration in SAM ..189 1 | 4/1/16 Chapter 1 Background and General Overview. The Capital Fund Program (CFP) provides financial assistance in the form of grants to public housing agencies (PHAs) to carry out Capital and management activities including those listed in Section 9(d)(1) of the United States Housing Act of 1937 (1937 Act). Capital Fund (CF) grants can also be entered into with resident management corporations (RMCs) (see 24 CFR (h)).