Cross-Cutting Federal Regulations: Program Services Division http:// www.tdhca.state.tx.us/program-services/

1. Cross-Cutting Federal Regulations:Program Services Divisionhttp://www.tdhca.state.tx.us/program-services/ March 14, 2013

2. Regulations to Study Today • Relocation • Environmental Clearance • Section 3: Economic Opportunities • Davis-Bacon Labor Standards

3. Cross-Cutting Regulations Overview • “Cross-Cutting” Regulations apply to all federally-funded programs. • Layered fundingthat includes federal money subjects entire project to these regulations. • Congress establishes laws as the basis of Cross-Cutting Regulations

4. Cross-Cutting Regulations Overview (continued) • Failure to comply can: • delayproject approvals and payments or disallowcosts; • stopa project; • preventfuture contract awards. • Program Services Division assists subrecipients to achieve compliance.

5. Program Services Division Overview

6. Relocation:Minimizing Resident Displacement Uniform Relocation Act (URA) and Section 104 (d) http://www.tdhca.state.tx.us/program-services/

7. Relocation: The Main Point • Tenants displaced by federally-funded construction must receive: • Relocation Notification, • Relocation Counseling, and • Relocation Financial Assistance • Failure to comply with the rules can result in: • Substantial, unplanned, out-of-pocket expenses • Delayed environmental clearance for the project

8. Relocation: Must-Do Actions Use TDHCA Relocation Handbook • At time of Application to TDHCA, submit: • Relocation Plan • Relocation Budget • General Information Notice (GIN) • Recognize Initiation of Negotiations (ION) date -- TDHCA Contract Execution

9. Relocation: Must-Do Actions By Time of Application to TDHCA • Issue General Information Notice (GIN) to tenants • Use TDHCA GIN as a guide • Move-In Notice after distribution of GIN • Total Relocation Budget(TDHCA Form) • Moving expenses • Temporary relocation expenses • Permanent relocation expenses

10. Relocation: Must-Do Action -- Budget Expenses must Account for: • Moving Costs • Actual - must represent reasonable estimations • Fixed Rate –Federal Highway Administration (FHWA) formula http://www.fhwa.dot.gov/realestate/fixsch96.htm • Temporary storage of tenants’ possessions

11. Relocation: Must-Do Action -- Budget Temporary Relocation (on-site or off-site) • Utility connections, deposits: electric, gas, telephone, cable, internet • Rent for interim dwelling unit • Hotel and TDHCA food per diem (for periods of less than 30 days) TDHCA Relocation Handbookcontains details

12. Relocation: Must-Do Action -- Budget Permanent Relocation -- Displacement • [URA] Non-refundable security deposit • [104(d)] Pays deposit, refund or not • Rental assistance • Utility connections, deposits: electric, gas, telephone, cable, internet • Down payment assistance: $5,250 lump sum

13. Relocation: Must-Do Actions By Initiation of Negotiations (ION) date (TDHCA Contract Execution) • Complete Household Needs Assessment,for each household determine: • Eligibility to return • Status: Displaced or Non-displaced • Total relocation assistance budget– use TDHCA Household Relocation Budget Assistance Calculator (Excel tool)

14. Relocation: Must-Do Actions By ION date (continued) • Copies and confirmation of delivery: • Notice of Non-displacement (NND) • Notice of Eligibility (NOE) – for Displaced persons • TDHCA Rent roll with relocation benchmarks

15. Relocation: Must-Do Actions By ION Date (continued) • Implement Relocation Plan • Appoint Relocation Coordinator • Identify whatmight affect tenants and when • Identify temporary and permanent units (Decent, Safe, Sanitary) • Estimate all relocation costs – update total project relocation budget • Use URAor104(d)calculations to determine correct relocation assistance

16. Relocation: Timeline Written agreement with TDHCA= ION GIN Distribution Application Submission & Award Household Assessments 90-day or 30-day Notice Distribution Loan Closing and Relocation Begins NND/ NOE Distribution

17. Relocation: Stumbling Blocks • General Information Notice (GIN) • Not provided on time or containing required language • Move-In Notice • Not provided to new tenants moving in after GIN date • Household Assessments • Failed to include all eligible tenants, based on rent roll • Budget • Incomplete, under-estimated eligible/necessary costs • Tenant Rights • Owners failed to inform tenants of their rights • Law allows tenants up to 18 months to claim assistance

18. Relocation: Benefits • Proper planning and implementation of relocation process Minimizes tenant worries and discomfort • Proper procedures help keep construction On-time and on-budget

19. Relocation: Upcoming Training • To be announced… • Watch for list-serve announcement. • If you haven’t already… Join our email list: http://www.tdhca.state.tx.us/

20. Relocation: Staff Contact Carmen A. Roldan URA Specialist Carmen.roldan@tdhca.state.tx.us http://www.tdhca.state.tx.us/program-services/

21. Multifamily Environmental Clearance Protects Owner from Liability and Residents From Hazards http://www.tdhca.state.tx.us/program-services/

22. Environmental: Main Point Must Obtain Environmental Clearance before engaging in “Choice Limiting Action” • Cannot purchase/close on land • Cannot procure services or sign contracts • Must not begin construction on any portion of the project prior to receiving environmental clearance HUD Environmental Review must include the total project, not just the portion funded with federal funds

23. Environmental: Consequences Failure to follow the rules can mean: • Lossof federal funding • Delayof crucial timelines, jeopardizing other funding sources

24. Environmental: Must-Do Actions Phase I Environmental Site Assessment, the preferred methodology is based on the ASTM format and should include vapor intrusion HUD Environmental Review, based on HUD Requirements outlined in 24 CFR Part 58

25. Environmental: Review Types What is The Difference Between:Phase I ESA and HUD Environmental Review? • Phase I: • de factoSuperfund liability insurance policy, for land owner defense (Toxics, Clean-ups) • 5 fundamental tasks: government records review, historical records, site reconnaissance, interviews, documentation and reports • HUD Environmental review meets both NEPA and HUD environmental requirements 25

26. National Historic Preservation Act (1966) Tribal Review Wild and Scenic Rivers Act (1968) Clean Air Act (1970) Coastal Zone Management Act (1972) Noise Control Act (1972) Endangered Species Act (1973) Safe Drinking Water Act (1974) Floodplain Management & Wetland Protection E.O.s (1977) Farmland Protection Policy Act (1981) HUD Environ. Criteria & Standards (1984) Environmental Justice E.O. (1994) HUD Environmental Review laws:

27. Additional HUD Environmental Review Requirements • Flood Disaster Protection Act – flood insurance required • Coastal Barrier Resource Act – no development in coastal area • Airport Runway Clear Zone

28. Environmental Process(Multi-Family)

29. Environmental: Timelines - Yours • Why? • All reviews require supporting documentation that is credible, verifiable and relevant. • Correspondence with a Federal or State agency must allow up to 30 days to provide concurrence &/or comment.

30. HUD Environmental: Levels of Review

31. Environmental Review: Time Lines

32. Environmental:Stumbling Blocks • Applicant does not provide adequate information to their environmental professional or person on their staff who prepares review • Example:a proposed development on a portion of the 100-year floodplain. • Applicant must provide the information required in the 8-step review including: explain why this property was more feasible than other properties in the target market area. Give relevant details of other properties considered and why they were excluded.

33. Environmental:Stumbling Blocks • Applicant omits necessary mitigation measures • In review • In budget • Tenant Relocationand Displacement Plan missing from: • Environmental Justice Elementand/or • Environmental Assessment Checklist • Does not follow TDHCA format • Submits incomplete or partial reviews

34. Environmental:Benefits • A credibleand verifiable review protects investment and limits liability • Enhances reputation and marketability of projects • Protects the quality of life for residents and community

35. Environmental: Conclusion • Missing information delays environmental review andclearance • Choice-limiting actions: Land acquisition or award of construction contracts for any part of project (including infrastructure) prior to environmental clearance, cancels federal funding. • If timelinesare not dealt with realisticallywhen preparing and submitting environmental review, important deadlines may be missed.

36. Environmental: Communication To ensure timely review of environmental clearances: Allquestions or inquiries must be submitted to environmental inbox: environmental@tdhca.state.tx.us To arrange a conference call, submit request through e-mail and provide topics and/or questions prior to scheduling phone call.

37. Environmental: Training Coming Soon • HUD Environmental Review & Clearance Follow-up Training • Updates to Review Requirements • Must-Haves items to complete Clearance process • In-depth discussion of Road Blocks/Project Killers • Floodplain • Noise • Contamination • Formats and Submission Requirements • Expediting your review

38. Environmental Compliance Contact • Cynthia Zbranak, TDHCA • Senior Environmental Specialist • cynthia.zbranak@tdhca.state.tx.us

39. HUD Section 3: Economic Opportunities for Low-Income Residents 24 CFR 135 http://www.tdhca.state.tx.us/program-services/

40. Section 3: Economic Opportunities for Low-Income Residents Main Points • Purpose: create economic opportunities for low-income residents and businesses in the area. • Subrecipients must demonstrate a good faitheffort to hire and train local low-income workers and businesses, even ifno new hires made. • Several Section 3 compliance strategies, involving collaboration, can improve developers’ return on investment while consequently expanding economic opportunities for area residents.

41. Section 3: Economic Opportunities for Low-Income Residents Must-Do Actions • Plan to meet Section 3 goals in overall Project Plan • Section 3 residents: 30% of new hires • Section 3 businesses: 10%construction, 3%other • Collaborateto demonstrate good faith efforts • Agencies that assist workers and small businesses • TrainSection 3 residents • Documentefforts to create economic opportunities • Report:use summary form 60002 (draw workbook) • Retainage draw requirement

42. Section 3: Economic Opportunities for Low-Income Residents Time Frame

43. Section 3: Economic Opportunities for Low-Income Residents Stumbling Blocks • Applicant misses collaborative opportunities • Agencies and organizations that provide free services • Economic development incentives from local governments • Plans not made to meet Section 3 goals: • Worker training • 30% of new hires, 10% of construction contracts, 3% of others • Report form 60002 shows goals not met: jobs, training, contracts. • Narrative gives no explanation of good faith efforts or why they failed.

44. Section 3: Economic Opportunities for Low-Income Residents Consequences of non-compliance • Developer: lost economic opportunities • Incentives, free services, positive public relations • Missed collaborations, poor program performance • Residents and businesses: lost opportunities • Community: resilience and desirability suffers. Developers and contractors that fail to comply with Section 3 risk losing future contract awards to other organizations that do comply.

45. Section 3: Economic Opportunities for Low-Income Residents Benefits of Compliance • Improve public image in the community • Build reputation for creating benefits for residents • Strengthen relationships and reduce risks • Expedite project completion • Increase return on investment • Earn economic development incentives Legal basis: 24 CFR 135 Required documents: Section 3 Clause, Report Form 60002

46. Section 3: Economic Opportunities for Low-Income Residents Program Contact: John Touchet Planner/ Policy Analyst, Cross-Cutting Regulations john.touchet@tdhca.state.tx.us

47. Davis-Bacon Labor Standards Protecting Construction Workers’ Rights http://www.tdhca.state.tx.us/program-services/

48. Labor Standards: Main Points • Federally-funded construction projects must: • Pay prevailing wages – DOL determines by county • Protect workers’ rights, such as • Weekly paycheck • Overtime pay and underpayment restitution • Right to file complaints • Labor laws impose penalties for noncompliance

49. Labor Standards: How Do they Apply? Davis-Bacon and Related Acts (DBRA) thresholds • HOME Program • Construction contract with at least 12 units • Acquisition, resulting in 12 HOME units • Neighborhood Stabilization Program (NSP) • Rental propertywith at least 8 units DBRA triggers other Federal labor laws • Contract Work Hours Safety Standards (CHWWSA) • Copeland Act • Fair Labor Standards Act (FLSA)

50. Labor Standards: Must-Do Actions • Follow TDHCA Pre-construction Guide • Account for Labor Costs in Project Budget • DOL Worker classifications • DOL Wage rates • Labor Standards Officer • Bid Solicitationsmust include Davis-Bacon Wage Requirements for all contracts • Construction Contracts must include Davis-Bacon and HUD Labor Provisions