2012 KY Affordable Housing Conference

1. 2012 KY Affordable Housing Conference • Homeownership Project Management 101: Demystifying Homeownership Project Management • Speakers: Jennifer Oberlin & Jack Holbrook

2. Goals • Broad overview of programs offered through Homeownership Project Management and when to use them • Discuss common errors in paperwork • Discuss the Environmental Review Process • Answer questions

3. Requirements of Attendees • Ask questions! • Participate

4. Unproductive Jack = no bueno

5. 2 main sources of funding Competitive GAP First Come, First Served pots of money Replenished each year, no guarantee Admin setup on a per unit basis No Developer Fee • Awarded amount • 2 years • Admin on entire project • Developer Fee

6. Competitive Pool • Homebuyer or Homeowner Rehab • Online application • Yearly application usually comes out late fall / early winter • Scored versus other submitted applications

7. Ideal Agency for Competitive Funding • Strong performer • Clear plan • Other funding sources lined up

8. Tips when applying • Read the guidelines • Request technical assistance • Review before submitting

9. Gap Pool • 1 time application • Auto renewing • Homebuyer or Homeowner Rehab • 2 pots of money, AHTF & HOME • Funds are first come first served • Can not have more than 2 units open at a time • Can not do more than 6 units in a funding year • 180 days to complete units

10. 2 types of Gap Pool Members • Smaller agencies that do not require the funding found in the Competitive Application • Larger agencies that have reached the end of a competitive cycle and wish to do additional units until next competitive round begins

11. Gap Funding HOME AHTF 60% AMI and below No Environmental Review 5% Admin comes out of project costs Deed Restriction Only • 80% AMI and below • Environmental Review Required • 5% Admin in addition to project costs • Mortgage, Note, & Deed Restriction

12. Common rules for all funding • Must submit setup and receive activity number PRIOR to working on a unit • For new construction Plans & Specs need to be approved PRIOR to construction • At least 20% of all units per project will be inspected • PCR required within 14 days of final draw

13. MBE / WBE

14. MBE / WBE MBE Section WBE Section

15. MBE / WBE Must Equal What is applicable

16. MBE / WBE

17. Kentucky Housing Corporation The Environmental Review Process for HOME Funded Initiatives

18. Environmental Review Process • Goals of Environmental Review • Ensure that environmental concerns are identified and addressed before a project is undertaken • Promote the health and safety of residents, neighborhoods, and communities • Protect land, air and water

19. Environmental Review Process • What is NEPA? • National Environmental Policy Act of 1969 • Basic national charter for protection of environment • Established Council on Environmental Quality (CEQ) • Federal agencies implement NEPA with their own regulations

20. Environmental Review Process • For HUD programs under 24 CFR part 58, KHC assumes the role of the responsible federal official in the environmental decision making process.

21. Environmental Review Process • Environmental Review Record • A well organized written record of the environmental review process and resulting determinations.

22. Environmental Review Process • Levels of Environmental Review • Exemption • Categorical Exclusion • Environmental Assessment • Environmental Impact Statement

23. Environmental Review Process • Exempt Activities • Exempt from NEPA and related laws and authorities • Activities which by their nature are unlikely to have environmental effects

24. Environmental Review Process • Exempt Activities • Studies, planning documents • Administrative, management activities • Public Service activities • Engineering and design costs

25. Environmental Review Process • Categorical Exclusions • Activities that do not have a significant impact on the environment and therefore do not require an Environmental Assessment or Environmental Impact Statement under NEPA

26. Environmental Review Process • Categorical Exclusions Not Subject to Part 58.5 activities • Rental Assistance • Down Payment Assistance • Operating Costs • Developer Fees

27. Environmental Review Process • Categorical Exclusions Subject to Part 58.5 activities • Acquisition • Rehabilitation of housing • Individual actions on up to four-family dwelling • Individual action on five or more housing units on scattered sites more than 2,000 feet apart

28. Environmental Review Process • Categorical Exclusions Subject to Part 58.5 activities • Complete a Statutory Checklist • Document compliance with 58.6 (Flood Insurance, Coastal Barrier, Clear Zones) • If compliance is NOT triggered : Project converts to exempt • Document the determination in writing • Place all documents in the ERR

29. Environmental Review Process NEW COMPONENT TO STATUTORY CHECKLIST! In June we were notified by HUD that we must consult with Indian tribes in Review of HUD activities that are covered by 24 CFR Part 58. The environmental review process.

30. Environmental Review Process If a HUD-assisted project may affect historic properties of significance to federally-recognized tribes, grantees must consult with them to identify such properties, evaluate potential project impacts and avoid, minimize or mitigate adverse impacts.

31. Environmental Review Process We have posted the CPD Notice, 12-006 that was issued on June 15, 2012, on the KHC website. It can be found under, Housing Production, Homeownership Production Programs, Reference Material.

32. Environmental Review Process KHC has updated its Unspecified Site Environmental Review Checklist to include a category that ensures that you indicate your consideration of the required Tribes.

33. Environmental Review Process HUD has also developed a Tribal Directory Assessment Tool (TDAT). TDAT is a web-based directory of federally-recognized tribes and their geographic areas of interest. http://egis.hud.gov/tdat/Tribal.aspx

34. Environmental Review Process If you are performing work in a county that a tribe has requested consultation concerning, send them an inquiry either via letter or email that includes the following: • Project Address • Project details • Existing Site Conditions and/or previous site utilization • Longitude and Latitude Coordinates

35. Environmental Review Process The process is similar to the consultation that you do with the State Historic Preservation Office.

36. Environmental Review Process Please note that the Project Set- Ups now also contain an Appendix A: When to Consult Tribes Under Section 106 form that needs to be submitted with the Unspecified Site Environmental Review Checklist.

37. Environmental Review Process • Environmental Assessment • If not exempt or categorical excluded, an Environmental Assessment (EA) is required • Primarily projects that involve new construction, substantial rehabilitation or conversion of uses • EA results in either a Finding of No Significant Impact (FONSI) or Finding of Significant Impact

38. Environmental Review Process • Environmental Assessment Examples • New housing construction (5 or more units) • Infrastructure development • Construction of Public Facilities • Activities that are normally exempt or categorically excluded but have an extraordinary circumstance that requires further review

39. Environmental Review Process • Requires NEPA study • Includes the Statutory Checklist • Studies: • Human Environment • Built Environment

40. Environmental Review Process • Environmental Assessment Clearance • Complete Format II • Make Finding • Publish/Post Combined Notice • Wait 15/18 days • RROF and certifications to HUD • HUD waits 15 days

41. Environmental Review Process • Environmental Impact Statement • Most complicated level of review • Must perform an EIS when a project • Will have potentially significant impact on the human environment • Is of a certain size – e.g., project involves more than 2,500 housing units • EIS is rare for HUD-funded projects

42. Environmental Review Process • KHC must document its determination of exemptions, categorical exclusions, and findings of no significant impact • The KHC certifying officer must sign each of the determinations • HUD has developed recommended formats for each type of review

43. Environmental Review Process • Key Factors: • Integrate the environmental review into overall project planning • Ensure a complete Environmental Review Record • Prepare a written determination of compliance for each review level

44. Environmental Review Process • Key Factors (cont.): • Include appropriate supporting documents for each factor • Initiate special studies • Do not obligate or expend project funds prematurely

45. Environmental Review Process • Unspecified Site Monitoring Strategy • Is a HUD approved written strategy describes the method for the phased environmental review of housing related activities as described in the project description. The sites will be evaluated using the site specific review checklist. The site specific review must be used ONLY for activities described in the attached project description. All documentation for the compliance factors included in the site specific review must be completed prior to committing funds for the individual sites.

46. Environmental Review Process • You will now see conditional Commitment of Funds language in your funding agreements. • Not withstanding any provisions of this agreement the recipient acknowledges that this agreement does not constitute a site approval or commitment of funds to any specific site.  Such approval or commitment of funds may occur only upon the satisfactory completion of an environmental review and receipt of such review and approval by Kentucky Housing Corporation.  • The Recipient agrees that the commitment of any funds to a specific site is conditioned on Kentucky Housing Corporation’s determination that the site is suitable based on the results of a subsequent environmental review. • Recipient further agrees that they will not undertake or commit funds to a specific site or proceed with a choice-limiting activity prior to KHC’s approval of each site.

47. Environmental Review Process • Once you submit your KHC Unspecified Site Environmental Checklist I will review it, and the materials you submitted, and compare it to my own site specific research. • You must submit all the required documentation - for all maps the subject site must be identified. Please make sure the materials are readable.

48. Environmental Review Process • HUD’s new tool for us: Assessment Tools for Environmental Compliance (ATEC) http://www.hud.gov/offices/cpd/environment/atec.cfm

49. Environmental Review Process • HUD’s new tool for us: Assessment Tools for Environmental Compliance (ATEC) http://www.hud.gov/offices/cpd/environment/atec.cfm

50. Environmental Review Process • HUD’s Environmental Planning Division created the Assessment Tools for Environmental Compliance (ATEC), a collection of guidance documents, calculators, checklists, and databases that addresses the “related federal laws and authorities.” ATEC is intended to help grantees meet their compliance responsibilities and complete their environmental review with greater ease and efficiency.