Final Application Best Practices Section 523 Self-Help Housing Technical Assistance Prepared by NCALL Research October 2007, last updated 3/09 Free Template from www. brainybetty. com
Throughout this slide presentation, NCALL’s recommended “best practices” will be notated with a *BP. Free Template from www. brainybetty. com 2
A. Introduction Free Template from www. brainybetty. com
What Now? You should have: n An approved Pre-application (need and capacity exists) n First group of participants ready to close their loans n House and site plans (approved by RD) n Cost estimates n Land n Prepared staff *BP By the time the Final Application is approved you should be one month away from beginning construction onfrom homes. Free Template the www. brainybetty. com 4
n Allow 6 months to complete Final Application What’s Covered? n n n Items needed for Final Application Helpful tips on accomplishing these items Some things to do while grant is getting approved Free Template from www. brainybetty. com 5
RD’s Expectations from grantees: § Operate within RD’s regulations § Carry out the responsibilities of the Grant Agreement including: § Recruiting low and very-low income applicants and applicants from substandard housing § Building the number of homes proposed § Building the houses in a timely manner § Keeping program costs within the required limit § Ensuring that participants work on each others’ homes § Setting up an acceptable accounting system Free Template from www. brainybetty. com 6
n n n A working relationship with Rural Development is critical NCALL is available throughout the process *BP Use NCALL as a resource ANYTIME assistance is needed! Free Template from www. brainybetty. com 7
B. Final Application Format Free Template from www. brainybetty. com
Required Format n n The format of the application is very important Rural Development requires that the information be in a specific order A three-ring binder with table of contents and tabbed sections must be included Tabs must correspond with item numbers on RD checklist Free Template from www. brainybetty. com 9
*BP An organization can drastically reduce its chances of error by having someone that did not put the Final Application together recheck the Final Application for completion and accuracy before copying and mailing it to Rural Development. Free Template from www. brainybetty. com 10
Application Processing Through Grant Closing Checklist (RD AN 4387) n n RD’s checklist Refer to the Final Application Manual for actual checklist Free Template from www. brainybetty. com 11
NCALL’s Final Application Review Checklist n n n Checklist NCALL uses to review applications It is has more detail and will help with assembling the application and meeting all of the requirements See Guide for actual checklist Free Template from www. brainybetty. com 12
1. Standard Form 424, version 2 n Standard Form 424, v. 2, “Application for Federal Assistance” and Intergovernmental Review Response 1994. 410 (e) n n n First thing that reviewers see, sample in Manual Provides RD will all of the pertinent information about the project – how many homes, time period, area, funding Must be complete Free Template from 13 www. brainybetty. com
*BP n There are many outdated or incorrect forms out there. Use the correct form! To ensure that you are using the most recent, accurate form, you can: 1. 2. Contact the State or Area RD office Go to www. hudclips. org or NCALL’s website, www. ncall. org Free Template from www. brainybetty. com 14
Intergovernmental Review n n n Intergovernmental review established to foster partnership through coordination of Federal funding Include response from SPOC, may be on A-95 Not every state has a SPOC, refer to Guide for list Free Template from www. brainybetty. com 15
1 b. Survey on Ensuring Equal Opportunity for Applicants n n This form helps to ensure that the government is fairly distributing grant funds Complete this required form and include it in your application Free Template from www. brainybetty. com 16
2. Waiting List of Participants Waiting list should include: n Information on potential applicants are interested in participating in the self-help program Names, addresses, number of persons in household and total annual income is required n Date of initial contact not required but helpful for marketing & recruitment (See sample form in Guide) *BP Aim to have at least twice as many potential participants as would be needed to complete the grant Free Template from 17 n n www. brainybetty. com
3. Proof of Qualified Participants n n Proof is required that participants in the first group have qualified for assistance or been determined “eligible” by RD Proof will be letters from RD Free Template from www. brainybetty. com 18
What Has to Happen for DE letters to be issued: Full application must be processed and reviewed ü Household income is verified ü Credit history is checked ü All other eligibility requirements met ü Loan Originator determines payment subsidy and maximum loan amount Free Template issued 19 ü Letter of eligibility is from ü www. brainybetty. com
§ *BP Include a cover page to this section § Narrative should include number of families in the first group, list of family names, total cost estimates, total 502 loan amount and other loan/grant information that will be used for the participant Free Template from www. brainybetty. com 20
n n If RD 502 loan does not cover complete building costs, include narrative indicating how gap will be covered If additional loans, advise RD’s local office n n Additional debt = increased debt to income ratios Proof will be needed that these funds have been secured Free Template from www. brainybetty. com 21
4. Lot Options for First Group n Land for the first group must be in control n n Purchase agreements Copy of deed if owned Option agreements Include a narrative identifying number in first group, how land is controlled, by whom, when it will be purchased and where it is located Free Template from www. brainybetty. com 22
n n Controlling land in a timely manner is critical One of the worse things that can happen is applicants are ready to build, full-time staff are hired and subs are scheduled – but there is no land! Free Template from www. brainybetty. com 23
n n n Often grantees need interim financing to obtain land Control land by purchasing or entering into an option agreement See sample of Option to Purchase Real Estate in Guide Caution!! 523 Grant funds CANNOT be used to option or purchase land. Free Template from www. brainybetty. com 24
5. Evidence of Lot Availability n n Evidence of lot availability for remaining groups is required Lists of available lots, maps and prices are required Include a narrative summarizing what land is available, whether site development is required, timeframe for completion More information on land is available in the “Land” section at the end of the manual Free Template from www. brainybetty. com 25
6. House Plans, Specs, Detailed Cost Estimates n n n Certified house plans are required for EVERY model that will be built during the grant period Specifications are required for every model and for every family in the first group Detailed cost estimates are required Free Template from www. brainybetty. com 26
House Plans n Certified house plans are required for EVERY model that will be built during the grant period n A complete set consists of plans and blueprints which have been certified by an architect or engineer licensed in your state CERTIFIED! Free Template from www. brainybetty. com 27
n Blueprints need to include the following views with mechanicals noted: Foundation plan Q Floor plan Q Cross section Q Front and rear elevations Q Right and left side elevations Q n n Average cost per set is $500 -$700 Include a statement of the square footage of livable space for each plan Free Template from www. brainybetty. com 28
n Codes and Standards n n n 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 Free Template from www. brainybetty. com 29
n There are several ways to obtain house plans: n Local Building Supplier n House Plan Book n Rural Development n NCALL n Other Self-Help Providers n Software – Cheap Architect Free Template from www. brainybetty. com 30
n Cost of Obtaining House Plans n n 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 Free Template from www. brainybetty. com 31
n Standardize plans n Limit selections to three basic plans n n n 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 Free Template from www. brainybetty. com 32
Choose plans based on what is in demand by surveying the target area and participants’ affordability!! *BP Free Template from www. brainybetty. com 33
n After participants choose a particular house design, copies of the blue prints go to: ? ? RD in the 502 application Local building official when applying for a building permit Construction supervisor Participant file in the grantee’s office Free Template from www. brainybetty. com 34
Developing Specifications n n n After selecting house plans, develop a specification sheet Use Form RD 1924 -2, “Description of Materials” One spec sheet should be used for each participant in the first group Free Template from www. brainybetty. com 35
n n The “Description of Materials” Form 1924 -2 can be located at www. rurdev. usda. gov/ regs/forms/1924 -02. pdf. Contact NCALL or the local RD office if you need assistance Material identification should be detailed Attach additional sheets if necessary and manufacturer’s specification sheets for equipment and/or special materials Free Template from www. brainybetty. com 36
The design must meet RD’s requirements which include: R R RD’s Thermal Performance Standards (1924 -A, Exhibit D) RD’s guidelines for affordability No income producing facilities No swimming pool Free Template from www. brainybetty. com 37
n n n Inspect every spec sheet for accuracy and completeness If questions arise, the specs and plans submitted to RD will be used by the RD building inspector Use the Guide for Inspection of Construction of Dwellings and Buildings Construction supervisor responsible for completing the specs submitted in each loan application The State and the RD State Architect must Free and from 38 approve the plans Template specifications www. brainybetty. com
Cost Estimates n n n One of an agency’s primary responsibilities is to accurately estimate the cost of each participant’s home before it is built These cost estimates must be accurate, they eventually become the participant’s 502 mortgage Avoid making estimates that are unrealistically low Free Template from www. brainybetty. com 39
n n n Cost estimates can range from 2% to 3% over, but never under Under estimating the cost of construction may force the participant to seek a second “subsequent” mortgage If the costs are overestimated, the mortgage will be larger than needed and the participant might not get all of their deserved “sweat equity” Free Template from www. brainybetty. com 40
If there is a significant time between the time of actual construction and the time of cost estimates were obtained, update the figures to reflect the current market prices. *BP Free Template from www. brainybetty. com 41
n n There are four types of costs: @ Construction materials @ Subcontracted labor @ Land @ Other variable costs Take-offs help to determine the quantity and quality of construction materials required by a house plan Free Template from www. brainybetty. com 42
Construction Materials n To do a take-off, the Construction Supervisor must: n n n Review the drawings of a single house plan Record the materials that are called for in the drawings Once the take-off is completed, you should have a full listing of all materials (quantity and quality) required Free Template from www. brainybetty. com 43
§ To get the best price, get bids on the materials. Before doing this: The project must be described in detail, including material to be used and quantity Ø Outline the time frame in which materials are needed Ø Set a bidding date deadline Ø Free Template from www. brainybetty. com 44
n n After obtaining the material bids, visit the supplier Meet the salesperson Discuss delivery format, return policy, service area and inquire about credit accounts for the participants Look for discounts for bulk purchases or get a guarantee on prices in advance Free Template from www. brainybetty. com 45
Subcontractors The subcontracted activities are: FExcavations FLicensed electrical work FPlumbing § Use Exhibit B-2 of 1944 -I as a guide § The participants’ construction tasks must equal at least 65% of construction activities n Free Template from www. brainybetty. com 46
n When requesting bids, make sure that you: a a Describe the project, materials and work to be done Outline the requirements and anticipated time frames Make the plans and specs available Set a bidding deadline date Free Template from www. brainybetty. com 47
n After obtaining bids: n n n n Interview the potential subcontractors Ask for and check client references View their past jobs Determine their integrity and timeliness Get a copy of their license and insurance coverage – check the expiration date of both Include the participants in this process, they will be signing the contracts Advise the participants, explain benefits and drawbacks concerning the subcontractors Free Template from www. brainybetty. com 48
n n Prepare a construction contract (samples in the book) and attach the subcontractor bids Participants and subcontractors sign the construction contract Rural Development’s contract is preferred *BP If construction contracts other than RD’s are to be used, get RD Free Template from 49 www. brainybetty. com approval
Land other variable costs § In addition to direct costs, the indirect costs need to be determined § Indirect construction costs include: Ø Ø Ø Land Fees (permits, surveys, closing costs, etc) Appliances and equipment Site improvements (grading, fences, driveways) Landscaping Contingency funds (3 -5%) Free Template from www. brainybetty. com 50
Rural Development Parameters n “Officers, employees or representatives of organization will not solicit or accept gratuities, favors or anything of monetary value from suppliers, contractors or others doing business with your organization. ) – 1944 -I, Exhibit A, Paragraph (o) Free Template from www. brainybetty. com 51
n n “Board members or employees for your organization shall not directly or indirectly participate for financial gain in any transaction involving the organization or the participants. Includes activities of selling real estate, building materials, supplies and services” – 1944 -I, Exhibit A, Paragraph (q) “While contracts are generally awarded to the lowest bidder, alternative policies are common. ” – 1924. 6 (a)(10) & (11) Free Template from 52 www. brainybetty. com
Attachment O of OMB Circular A-110 n In addition to some required application forms, NCALL has included some forms that may help in the management of the self-help program. See Final Application Manual. Free Template from www. brainybetty. com 53
Preparing House Designs A General Flow of Events I. Research Building Standards Determine local building codes n Determine acceptable RD design n II. Select n House Designs Have the house designs approved by RD as early as possible to ensure they meet RD standards *BP Free Template from www. brainybetty. com 54
Get Plans Certified IV. Estimate Costs for Each House Design III. a. b. c. d. Prepare material take-offs Determine which construction jobs to subcontract Issue request for bids, evaluate bids, select suppliers and subcontractors Free Template from www. brainybetty. com 55
V. Involve Individual Families n Each family selects their lot and house plan Prepare House Documents for 502 Dockets VI. n For each family 502 docket, prepare Detailed house plans and specs n Plot plan n Water/waste disposal system (if applicable) n Cost estimate Free Template from n www. brainybetty. com 56
VII. Send Docket to RD for Approval VIII. Send House Documents to Local Officials a. Building permit obtained IX. Construction Free Template from www. brainybetty. com 57
Construction Contract n Sample of the RD Construction Contract, Form RD 1924 -6, in Tab 5 or: n n n Contact the State or Area RD office www. rurdev. usda. gov NCALL’s website, www. ncall. org Free Template from www. brainybetty. com 58
Guideline for Purchase of Bidding Supplies/Soliciting Subcontractors n A guideline will need to be established (Attachment O–OMB Circular A-110) n Organizations may use their own procurement policies and procedures n They must meet the minimum standards on page 98 in the Guide Free Template from www. brainybetty. com 59
n See samples in Guide of: n n n Cost estimate summary Construction task matrix Self-help family time sheets Free Template from www. brainybetty. com 60
7. Staffing Needs and Hiring Schedule A self-help organization needs: JA good program J A sound budget J A committed Board J Qualified and motivated staff! Free Template from www. brainybetty. com 61
Staffing / Personnel n n Personnel issues include determining staffing needs, developing job descriptions, developing personnel policies and recruiting staff The regulations require: n n n Proposed hiring schedule Availability of prospective employees Board’s signed statement that authorizes the Executive Director to hire the necessary staff Free Template from www. brainybetty. com 62
n n n Rural Development regulations do not allow nepotism in the self-help program Individuals that work for a grantee that are related must disclose the nature of the relationship 1944 -I does not allow relatives working together in the same line of command Free Template from www. brainybetty. com 63
Hiring Schedule n n n A hiring schedule should be included in the Final Application Include all of the positions that will be paid out of the self-help housing grant funds *BP See page 110 for a sample Free Template from www. brainybetty. com 64
Indicate: Ø Which positions are filled Ø The anticipated hiring date of the remaining positions Ø Which positions will be full-time? Part -time? Ø What percentage of their time will be charged to the self-help program Free Template from www. brainybetty. com 65
Availability of Prospective Employees n n To prove the existence of potential candidates, include a resume’ and letter of commitment from the candidate If waiting until grant approval, include a description of how needed staff will be located and a brief report on available personnel in the area Free Template from www. brainybetty. com 66
n Identifying the availability of personnel in the area will require: ü the number of applications received for the job advertised ü a narrative describing the expected hiring process Free Template from www. brainybetty. com 67
Job Description n Job descriptions are required, typical staffing for the self-help program are: n Executive Director/Project Director: n n Group Coordinator/Loan Packager: n n Works directly with the participants, screens, counseling, training, helping them fill out the required forms, etc. Secretary/Bookkeeper: n n Responsible for running and managing the self-help housing program Keeps records for 523 grant funds and 502 participant loan accounts Construction Supervisor: n Free Template Responsible for construction from www. brainybetty. com 68
n n n 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 Free Template from www. brainybetty. com 69
Salary Ranges and Fringe Benefits n n 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)) n n A good salary survey can help establish fair and competitive rates *BP See Guide for sample survey Free Template from www. brainybetty. com 70
8. Authorized Representative of Applicant n Provide the name, address and official position of the applicant’s representative that is authorized to act for the applicant and work with Rural Development Free Template from www. brainybetty. com 71
9. Budget Information – Non Construction Requirements: n 424 -A n Detailed Budget Narrative n RD Letter n Method of TA Cost Free Template from www. brainybetty. com 72
n Authorized expenses: n n n n n 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: n n 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 Free Template from www. brainybetty. com 73
n 424 -A n n n Budget must be on form SF-424 A, “Budget Information (Non. Construction Programs) Complete it using the example in the Guide See NCALL’s website for the most recent version Free Template from www. brainybetty. com 74
n Detailed budget narrative n n n Include a detailed budget See sample in Guide Remember to include funds for NRSHHA dues Include a detailed budget narrative See sample in Guide RD Letter n n n Include a letter from RD identifying the equivalent value of comparable contractor-built 502 homes, less than 12 months Include total square feet and total living area Should include the actual or projected cost of Free 75 an acceptable site Template from development and site www. brainybetty. com
n Method of TA Cost Calculation n Include the calculation of how the total grant amount was calculated Indicate which allowable method was used See sample calculation in Guide Free Template from www. brainybetty. com 76
10. Indirect or Direct Cost Requirements n Transmittal Letter n Response n Proposal Free Template from www. brainybetty. com 77
n Indirect Cost n n n Mechanism used by federal government Recommended when shared costs become impractical to be charged directly to various funding sources Direct Cost Allocation n 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 Free Template from www. brainybetty. com 78
n An approved direct or indirect cost policy must be submitted n n Document the indirect cost rate or the lack thereof If a new policy is needed: Prepare proposal for submission to DOI for approval and include proposal in application n DOI will not review proposal until grant is approved n Free Template from www. brainybetty. com 79
11. Monthly Activities Schedule n n A finalized monthly activity schedule is necessary Monthly activities schedules allow for: @ Setting specific goals @ Identifying time targets @ Identifying person’s responsible for tasks @ Letting everyone know what he/she is suppose to do and whether they are on target or not @ Identifying potential problems and opportunities @ Improving decision-making process @ Focusing on grant activities to results Free Template from www. brainybetty. com 80
n n When planning, estimate a time range instead of a specific date, this keeps your schedule more realistic The four most significant time elements are: *BP n n Duration of each step Earliest time each step may be started Latest time each step may be completed Free Template from www. brainybetty. com 81
n n n It takes everyone’s commitment to implement the SH project The activity schedule should not be created and forgotten Use it to stay on track Adjust if necessary See Guide for samples Free Template from www. brainybetty. com 82
12. Personnel Practices and Procedures n A copy of the most recent personnel policies is required n n n Or new policies for a new organization Must be in compliance with federal, state and local laws that effect employees See Guide for sample personnel policy Free Template from www. brainybetty. com 83
n Personnel forms also need to be included in the application and should include: Time Sheets ü Travel Advance Requests ü Mileage Forms ü Leave Requests ü Employment application ü See Guide for sample from forms Free Template www. brainybetty. com 84
n What are personnel policies? n n A written guide the defines the relationship between the organization and the staff Describes expectations and procedures Must be thorough, specific and legal as well as acceptable by RD Board’s personnel committee should review the plan Free Template from www. brainybetty. com 85
It is strongly recommended that an attorney versed in labor laws review the policies. Check your community for pro bono services to nonprofits. *BP Free Template from www. brainybetty. com 86
n How should personnel policies be written? n n n Keep the sentences short Avoid complex terms Drop all unnecessary words Stay gender-neutral whenever possible How should personnel policies be used? n n To provide guidance to the managers In an orientation of a new employee Free Template from www. brainybetty. com 87
n When should it be revised? n n n Review annually and revise as needed Changes in the laws, regulations, employee benefits, and other areas may prompt a review and revision This responsibility may be given to the Board’s personnel committee or the program staff Ensure that the Board approves them See Guide for Free Template frompolicies sample www. brainybetty. com 88
13. Authorizing Resolution n A resolution must be adopted by the Board of Directors: n n 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 n Sign Form RD 400 -4 “Assurance Agreement” n Work with RD on the self-help program n n Must include authorized person’s name, Free Template from 89 title, addresswww. brainybetty. com
14. Assurance Agreement n n n RD Form 400 -4 Include a signed copy of this form Sample form in Guide Free Template from www. brainybetty. com 90
15. Fidelity Bond Coverage n Read Subpart C of 7 CFR 3015, deals with “Bonding and Insurance” n n n Determine how it applies to you Review it with a lawyer and accountant Complete form RD 440 -24 “Position Fidelity Schedule Bond Declarations” to demonstrate compliance All staff who have authority to make purchases, execute contracts or sign checks should be covered *BP Amount of the coverage should be at least equal to the maximum amount of funds and property the from organization will Free Template have at anytime www. brainybetty. com 91
16. Evidence of Interest Bearing Checking Account and Statement of Repayment of Interest n n Submit a copy of the account agreement of your two-signature interest-bearing checking account Include a signed statement saying that the organization will return, on a quarterly basis, any interest earned in excess of $250 per year n If the grantee is a public body, interest in excess of $100 must be repaid. Free Template from www. brainybetty. com 92
17. Group Agreement (including Exhibit B-2) n n Include a copy of your group agreement It must include Exhibit B-2, indicating the breakdown of construction *BP Each member of the group must read the document or have the document read to him/her, thoroughly understand it, and sign it *BP The enforcement of the membership agreement is key to the success of each group Free Template from 93 www. brainybetty. com
18. Request for Obligation of Funds Form RD n n n 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 Free Template from www. brainybetty. com 94
19. Self-Help TA Grant Agreement n Include a signed, but not dated, copy of the grant agreement Free Template from www. brainybetty. com 95
20. Certification Regarding Drug Free Workplace n n Include a signed and dated AD 1049 See Guide form Free Template from www. brainybetty. com 96
21. Certification Regarding Debarments n n Include a signed and dated AD 1047 See Guide form Free Template from www. brainybetty. com 97
22. Certification Regarding Lobbying n n Include a signed and dated RD 1940 Q, Exhibit A-1 See Guide form Free Template from www. brainybetty. com 98
23. Statement of Compliance n n Include a statement that the organization complies with the requirements of the appropriate 7 CFR 7 CFR establishes uniform requirements for the administration of grants The organization’s authorized representative must sign and date it See sample letter in Guide Free Template from www. brainybetty. com 99
24. Assurances – Non. Construction Programs n n n Complete SF 424 B “Assurances -Non-Construction Programs” Certifies to Rural Development the organization’s accounting system is certifiable by a CPA as meeting the Grant Agreement Signed and dated by authorized representative Free Template from www. brainybetty. com 100
25. RD Managers’ or Area Managers’ Recommendation n Hold a section for this to be added later by RD Free Template from www. brainybetty. com 101
26. T&MA Contractor’s Review and Recommendation n n Hold a section for this to be added later by RD Required under National Office Contract Free Template from www. brainybetty. com 102
27. National Office Review n Hold a section for this to be added later by RD Free Template from www. brainybetty. com 103
C. Putting the Final Application Together Free Template from www. brainybetty. com
n n n Use the Rural Development checklist for order and format Include a Table of Contents and tab the sections *BP Check every page for completeness, signatures and dates *BP Send the application to NCALL first for a draft review Make 2 copies of the application Submit applications in an original and one copy to the designated RD office Free Template from www. brainybetty. com 105
D. Monthly Activities Free Template from www. brainybetty. com
n *BP See Guide for a monthly breakdown of activities to keep on schedule for completing the application Free Template from www. brainybetty. com 107
E. Grant Closing and Drawdowns Free Template from www. brainybetty. com
n Request for Advance or Reimbursement, Form SF-270 n n n Form completed monthly and submitted to the RDM, original and two copies Used to notify RD of the grant funds used during the previous month, the unspent funds on hand, and the projected need for the next month Written justification should be forwarded if amount exceeds the projected need for the next 30 days Must be in the RDM’s office 15 days prior to the beginning of the month If in order, RD will try to have advance check delivered on the first of the next month This is normally the only report of grant expenditures that RD will require during the grant Free Template from 109 period www. brainybetty. com
n Rural Development can establish an electronic transfer for the funds n n They will need the routing and account numbers The first grant draw can be for the month in which the grant was closed, the following month and can include funds for tool and equipment purchases Free Template from www. brainybetty. com 110
F. Land Free Template from www. brainybetty. com
Land Survey Criteria n n 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 n n Public water is preferable Sewer – approved public sewer or septic system n n *BP Public sewer is preferable Site approval – State Director delegate site approval responsibility to appropriate person Free Template from 112 www. brainybetty. com
Land Development n n n n 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 Free Template from 113 www. brainybetty. com
Land Survey Resources n n n n n 7 CFR 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 Free Template from www. brainybetty. com 114
Land Survey Process n Preparing a site search map n n n 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: n n n Topography, flood plains, erosion Access to public roads, vegetation, existing structures Unique features Free Template from www. brainybetty. com 115
n Land analysis form n n n Investigate ownership Check into tax records Assume that every parcel is for sale See Form in Guide Selecting the site n n n n 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 Free Template from www. brainybetty. com 116
Optioning vs. Purchasing n Option agreements n n n Contract between seller and potential buyer Buyer not obligated to buy, seller obligated to sell Options should be between seller and participant See Option language in Guide Purchasing land n n 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 Free Template from www. brainybetty. com 117
n Interim financing n n n 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 Free Template from www. brainybetty. com 118
G. Personnel Issues Free Template from www. brainybetty. com
n n There are many personnel issues that must be handled *BP See the Guide for helpful information on: n n n Developing job descriptions Creating a salary survey Interviewing, selecting, and hiring personnel Free Template from www. brainybetty. com 120
The End Free Template from www. brainybetty. com 121
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