Attachment I. Accessibility Modifications Program (AMP) Guidelines

Transcription

1 Attachment I. Accessibility Mdificatins Prgram (AMP) Guidelines Cntents: 1: Prgram Descriptin 2: Member Participatin and Registratin 3: Funding - Use, Limits, and Availability 4: Member Requirements 5: Recipient Requirements 6: Accessibility Mdificatins Requirements 7: Eligible Prperty Types 8: Disbursement Prcess 9: Pst-Disbursement Dcumentatin Requirements 10: Mnitring, Reprting, and Dcumentatin 11: Incme Guidelines (see Attachment D) 100 P age

2 1: Prgram Descriptin The Accessibility Mdificatins Prgram (AMP) is part f the Hmewnership Initiatives Prgrams ffering. AMP prvides funding fr accessibility mdificatins and minr hme rehabilitatin fr eligible senir hmewners r wner-ccupied husehlds with a persn(s) with a permanent disability. Eligible husehlds must have husehld incmes at r belw 80% f the area median incme. The maximum subsidy that can be requested per husehld is $12,000. The minimum subsidy that can be requested per husehld is $1,000. AMP may be amended at any time with input frm the Federal Hme Lan Bank f Indianaplis (the Bank ) Cuncil and apprval by the Bank Bard. Funding annuncements may be revked by the Bard withut ntice. The Bank als reserves the right t reallcate funds amng prgrams t meet prgram demand and t ensure utilizatin f all funds. 2: Member Participatin Requirements Institutins that are current Members f and eligible t brrw frm the Bank may participate in AMP. The Bank des nt accept applicatins frm institutins with pending applicatins fr membership in the Bank. A list f eligible Members may be btained frm a directry at A. Registratin: All Members must sign and submit a Hmewnership Initiatives Master Agreement and Registratin and Certificatin Frm, Members will be respnsible fr all terms and cnditins cntained in the Hmewnership Initiatives Master Agreement and Registratin and Certificatin Frm, including, but nt limited t, the requirements utlined in this dcument. B. Training: All NEW users f the prgram will be required t participate in training that will prvide infrmatin and instructins n prgram guidelines, disbursements, and dcumentatin requirements. NEW users are defined as thse Members wh have never participated in the prgram r thse wh have nt received a disbursement in the prir tw years. At a minimum, either the Primary r Secndary cntact is required t participate in the training. C. Submitting Disbursement Requests: Upn apprval f the Hmewnership Initiatives Master Agreement, and Registratin and Certificatin Frm and cmpletin f required training, Members will receive a Starter Kit with all f the infrmatin and frms needed t start requesting disbursements. 3: Funding - Use, Limits, and Availability AMP funds may nly be used t pay fr apprved eligible mdificatin/repair csts unless therwise nted. AMP funds cannt be used t pay fr fees charged by Members r spnsrs fr prviding the subsidy t a hmewner. The rate f interest, pints, fees, and any ther charges fr all lans that are made fr the prject in cnjunctin with the AHP subsidy shall nt exceed a reasnable market rate f interest, pints, fees, and ther charges fr lans f similar maturity, terms and risk. Each participating Member will be limited t $300,000 in annual AMP funds, unless such limit is waived by the Bard. Hmewnership Initiatives Prgrams funding will be annunced in the spring. Funds will be made available n a first-cme first-served basis until all funds are exhausted. Thrughut the prgram year, the remaining amunt f funds available will be published n the Bank s Web site at least bi-weekly. 101 P age

3 4: Member Requirements Members must prvide funds nly t hmewners wh meet the incme guidelines as described in Attachment D f the current Affrdable Husing Prgram Implementatin Plan (Plan). The Member is respnsible fr cmpliance with all applicable laws, regulatins and with this Plan. Members must enrll each husehld in a Bank Hmewnership Initiatives Prgram. The enrllment date is defined by the Bank as the date n which the Member issues a qualificatin r ther such lan cmmitment r enrlls the husehld in a Bank Hmewnership Initiatives Prgram. Members must submit a disbursement request t the Bank within 30 days after enrllment f the husehld int a Bank Hmewnership Initiatives Prgram. Members must cnfirm that the recipient wners have wned the prperty in fee-simple fr at least 6 mnths prir t enrllment. N additinal persns may have been in title t the prperty during the 6- mnth perid ther than the children f the hmewner wh are n title fr estate planning purpses. A husehld being qualified under the disabled husehld type, as defined belw, may be granted an exceptin t this requirement. Members must ensure that prpsed csts are reasnable based n the lcal market. Members must ensure that rehabilitatin/mdificatin wrk perfrmed meets the requirements utlined in the Accessibility Mdificatins Requirements sectin f this dcument. Fr prperties that include a hme-based business, Members must certify that the grant funds will nt be used t cver csts t rehabilitate areas f the hme exclusively designated fr business use. Members must cmply with Bank requirements t prvide cpies f rehabilitatin clsing statements, evidence f csts and ther dcumentatin as described in this dcument. Members must maintain prject files with all applicable infrmatin fr all grant recipients. Members shuld exercise due diligence in qualifying AMP husehlds and are advised t btain the fllwing items fr review prir t submitting a request t the Bank t ensure that the funds will be prvided t husehlds stable in their financial affairs. Verificatin that legal title is vested in applicant(s) nly (except when the hmewner s children are n title fr estate planning purpse). A title search, which will prvide infrmatin n utstanding liens and prperty tax infrmatin, t ensure the hmewner is nt in default n bligatins that culd affect hme retentin. Credit reprts t prvide infrmatin n credit bligatins that culd affect hme retentin. Hmewner s insurance verificatin t ensure that the hme is prperly insured. Pictures f hme r areas t be repaired/replaced prir t cmmencement f wrk. Member must certify that the hmebuyer(s) and the prpsed transactin meet all eligibility requirements fr AMP funds. 5: Recipient Requirements Recipients f AMP funds must meet all f the fllwing requirements: Is a husehld meeting ne r mre f the fllwing types: Type A a husehld whereby all members are age 62 years r lder r, 102 P age

4 Type B a husehld whereby all members are age 62 years r lder, r age 17 r yunger whereby the husehld members age 62 r lder is the dcumented guardian(s) f a husehld member(s) age 17 r yunger; r Type C a husehld with a member(s) f any age with a permanent disability and currently receives Scial Security Disability Insurance (SSDI) r Supplemental Security Incme (SSI) benefits r reasnably equivalent state r federal funded permanent disability benefits. Dcumentatin shuld supprt payment f benefits fr at least 60 days. Permanent disability may als be verified thrugh a third party prfessinal wh cmpletes the Permanent Disability Verificatin Frm. The age requirement(s) must be met and dcumented at the time f enrllment. Husehlds must reside in Michigan r Indiana. Recipients must have husehld incme that is equal t r less than 80% f the area median incme (AMI) adjusted fr family size as published annually by HUD (see the Bank s Web site fr current AMI charts). Recipients existing mrtgage bligatin fr the subject prperty must be current and paid as agreed. Recipient must sign an affidavit acknwledging their apprval f the cntractr being used fr repairs. AMP funds may nly be used t prvide assistance t rehabilitate an wner-ccupied residence. Hmebased business rehabilitatin is nt an eligible stand-alne use under the AMP. Fr eligible husehlds whse hme-based business is als lcated in the husing unit r n the prperty, AMP funds may be used if the primary purpse f the prpsed rehabilitatin is t rehabilitate and prvide general benefit t the residence. Prpsed rehabilitatin that will nly benefit the area f the hme exclusively designated fr business use is nt an eligible use under the AMP. This plicy applies whether r nt the incme generated frm the business activity is the primary r secndary surce f incme t the husehld. Recipients must prvide all dcumentatin t the Member as required fr participatin in the prgram. In any five (5) year perid, recipients cannt receive, fr the same prperty, mre than ne Bank grant f any kind, r mre than ne grant frm any Federal Hme Lan Bank, unless prir grants have been repaid r retentin perid has expired. Applicants may nt be students with part-time r n incme while in schl wh rdinarily wuld have a reasnable prspect fr a substantial increase in incme exceeding the AHP incme eligibility limit upn entering the wrkfrce full-time. In determining an applicant s eligibility, the Bank will cnsider factrs including, but nt limited t, the applicant s current student status, number f hurs currently enrlled, anticipated date f graduatin and field f study. Supprting dcumentatin will be required. 6: Accessibility Mdificatins Requirements Eligible repairs must address accessibility needs f the hme t assist with aging in place and independent living. Subsidy may nly be used fr repairs t the livable space f the hme, unless therwise nted. Where applicable, rehabilitatin and repair f systems and materials must be f similar quality, like and style. The Bank may exercise discretin in determining if repairs are eligible fr funding. When pssible, mdificatins shuld cmply with Americans with Disabilities Act (ADA) r Universal Design specificatins. Members must execute a certificatin f cst reasnableness and maintain cpies f all bids btained t supprt the prpsed wrk. Any exceptins t the fllwing list f eligible mdificatins and/r repairs must be pre-apprved by the Bank. Wrk perfrmed r cmpleted prir t enrllment may nt be paid fr with AMP funds. The hmewner may nt cmplete any f the apprved rehabilitatin funded by AMP. 103 P age

5 A. Eligible Accessibility Mdificatins The fllwing mdificatins are eligible fr funding under AMP: Ramps/zer step entries Handrails Levered dr handles Self-clsing hinges (internal/external drs) Pcket drs r swing hinges Bathrm mdificatins Walk-in/rll-in shwers grab bars rebath - easy entry bath ADA-apprved tilets/drp dwn grab bar Rll-under vanity Lwer level ½ bath cnversins-t eliminate need t g upstairs Kitchen mdificatins Lwering existing cabinets r replacing with ADA-apprved cabinets Lwered and/r rll under ADA-apprved cunters Internal chair and wheelchair lifts Plumbing and electrical mdificatins necessary t relcate laundry facilities t the main level f the hme* Hme mdificatin assessment expenses up t $250, when perfrmed by a certified prfessinal Widened dr-ways Installatin f smke detectrs r carbn mnxide detectrs Universal Design flr cverings Exclusins may apply * Additinal dcumentatin may be required. B. Other Repairs: An amunt, up t 50% f the AMP funds requested, may be used fr NIP deferred maintenance items listed belw: Repair/replacement f existing heating, ventilatin, air cnditining Repair/replacement f existing well/septic system r undergrund prperty sewer system* Repair/replacement f existing water heater Energy cnservatin imprvements - includes repair/replacement f existing: 104 P age

6 Windws Sffit and Fascia Siding Rfing Gutters Dwnsputs Caulking Exterir drs Weather stripping, attic and wall insulatin Electrical replacement f knb-and-tube wiring that prevents a hme frm meeting current cde requirements fr its area * Additinal dcumentatin may be required. C. Ineligible Imprvements: In general, imprvements in functinality/mdernizatin, changes fr eliminatin f bslescence, luxury items, imprvements that d nt becme a permanent part f the prperty, and installatin r repair f items listed belw are nt eligible imprvements. The list is nt all-inclusive and the FHLBI suggests that Members use prudent decisin-making when apprving requested imprvements. 7: Eligible Prperty Types Additins r alteratins fr cmmercial use Prches, detached garages, etc. The finishing f attics, basements, etc. Furniture and appliances Landscaping r tree wrk Fences Rm additins Driveways and sidewalks Awnings and shutters The fllwing prperty types are eligible t receive NIP funding: Owner-ccupied 1-4 family prperties Twnhuses Cndminiums Cperatives Manufactured husing deeded as Real Estate Lease/purchase arrangements and land cntracts are nt eligible wnership structures. All prperties must be titled as real estate and be permanently affixed t a permanent fundatin. 105 P age

7 8: Disbursement Prcess T request funds, Members must submit the required dcuments fr each husehld as defined in the Starter Kit. During times f nrmal vlume, disbursement requests shuld be reviewed and/r apprved within ten business days. Upn apprval, the funds will be credited t the Member s FHLBI CMS accunt. N substitutins f husehlds will be allwed. The Member must pass the entire amunt f the subsidy t the husehld. Disbursement Recmmendatins The Member has a fiduciary respnsibility when managing AMP funds. The Member shuld take every precautin t prevent fraud and misuse f AMP funds. T d s, it is recmmended that the Member: a) Cnsider establishing an escrw accunt t disburse funds as the wrk is cmpleted. b) Request that the hmewner prvide yu with invices and make checks jintly payable t the cntractr r ther service prvider and the hmewner. c) Take befre and after phts t verify cmpletin f wrk. d) Perfrm prperty inspectins fr each draw f funds. e) Require all wrk be cmpleted by a licensed/bnded cntractr. If wrk is being perfrmed by a related party t the hmewner, ensure that all repairs included in the riginal bid are being cmpleted and funds are being used fr said repairs. 9: Pst-Disbursement Requirements and Dcumentatin Rehabilitatin Clsing All hme mdificatins shuld be cmpleted within 6 mnths f the Bank s disbursement f funds alng with all funds disbursed fr services perfrmed. The Member is respnsible fr managing the prgress and cmpletin f the repair prject. The Bank requires that the Rehabilitatin Clsing Statement (RCS) be cmpleted upn cmpletin f all mdificatins. The frm is available n the Bank s Web site. All csts assciated with each mdificatin must be dcumented. Members must ensure that the apprpriate subsidy amunt received frm the Bank is clearly identified. An itemized descriptin f, and csts assciated with, the hme mdificatins r repairs must be dcumented. Members are required t sign the RCS. 10: Mnitring, Reprting, and Dcumentatin Annually, the FHLBI will request dcumentatin fr a randmly selected sample f husehlds. The dcumentatin requested can include any f the dcuments that Members are required t maintain in their files. Members have 30 days t submit the requested dcumentatin. If dcumentatin is nt received within 30 days, the FHLBI reserves the right t deem the Member t have vilated the terms f the award and debit the Member s CMS accunt fr the apprpriate amunt. The Member will then need t reapply fr funding fr the particular husehld, subject t funding availability. At a minimum, Members shuld maintain the fllwing dcumentatin in their files fr every AMP recipient: (1) Applicatin used t btain husehld infrmatin. (2) A cpy f the disbursement request and all dcumentatin btained and used t qualify the husehld at enrllment (3) Final, fully-executed Rehabilitatin Clsing Statement, executed by bth the hmewner and the Member 106 P age

8 On-Site Mnitring (4) Original bids t supprt the executed Certificatin f Cst Reasnableness (5) Final cst verificatin fr rehabilitatin wrk perfrmed evidenced by cpies f final invices, receipts and cancelled checks r similar frms f payments t the cntractr(s) At the discretin f FHLBI, participating Members may be selected fr mnitring review. During reviews, which are held at the Member s place f business, the FHLBI reviews the Member s plicies and prcedures fr administering AMP and a sampling f the grant recipient files. The FHLBI reserves the right t review all files if sampling indicates cmpliance issues. 11: Incme Guidelines (see Attachment D) All Members must use the incme guidelines as utlined in Attachment D f the current Plan. Husehlds must have incmes at r belw 80% f the median incme fr the area at the time the husehld is accepted fr enrllment by the Member. 107 P age