(3) Number of units.

(4) Whether family or elderly.

(5) If HUD-insured, applicable section of National Housing Act and FHA Case Number.

(6) If public housing, name of administering Housing Authority.

d. List all other projects, other than HUDassisted projects, which are presently owned and/or managed by the owner. For each such project, list:

(1) Name and location of project.
(2) Dates owned and/or managed.

(3) Number of units.

(4) Whether family or elderly.

(5) Whether administered and/or subsidized by any agency of State or local government, and, if so, name and address of such agency.

e. Give a brief description of the owner's firm, including organizational structure, and a brief description of the owner's organizational arrangements for management of the proposed project, including supervisory relationships, lines of authority, number of personnel in the supervisory, maintenance and clerical categories, and qualifications of key personnel. Include any special factors deemed relevant to management of the proposed project.

f. Give a brief description of procedures to be used in managing the proposed project with regard to the following functions:

(1) Leasing and tenant selection procedures.

(2) Rent collections.

(3) Accounts and records.

(4) Maintenance and management services.

(5) Evictions.

g. Provide a statement that the owner will provide all management and maintenance services required by the LHA in the Developer's Packet, or the Rehabilitation Program Packet, as appropriate, and provide a list of those services.

h. If a management agent is to be used, explain organizational relationship between owner and management agent, and specific types of management functions to be performed by each.

3. Information on management agent.

If a management agent is to be used, the following shall be submitted over the signature of such agent:

(a) a statement providing all of the information required to be provided by the owner in items 2a through 2g above;

(b) a statement that the management agent has reviewed the preliminary plans for the proposed project and concurs in them from a management standpoint; and

(c) a copy of the written commitment of the management agent that he has contracted or will contract with the owner to perform the management duties.

4. A statement by the owner and the management agent, if any, that neither one has any identity of interest with the LHA.

APPENDIX VI-LHA REVIEW CHECKLIST FOR FINAL PROPOSALS SUBSTANTIAL REHABILITATION

Name of Local Housing Authority

Project Number

Firm Name

Date Received

Location of Proposed Housing

Total No. of Units in Proposal

This LHA has determined that this Final Proposal meets all of the requirements listed below:

1. Location. The location of the housing is in conformance with the requirements contained in § 1276.209 of the section 23 Substantial Rehabilitation Program Handbook and with any special requirements contained in the Rehabilitation Program Packet.

2. Adequacy of rehabilitation. a. It appears that the property can be rehabilitated so that upon completion, the housing will meet the requirements of the Rehabilitation Program Packet and the Section 23 Substantial Rehabilitation Program Handbook.

b. The rehabilitation that is proposed will satisfy the standards set forth in the Rehabilitation Program Packet and the section 23 Substantial Rehabilitation Program Handbook.

c. The services of a registered architect will be utilized for the preparation of final working drawings and specifications or the nature and extent of the rehabilitation are such that the services of a registered architect are not necessary.

3. Rents and term of contract. a. The rents to owner, plus reasonable allowances for tenant-purchased utilities, result in gross rents at or below the maximum gross rents approved by HUD.

b. The proposed rents to owner are reasonable in accordance with § 1276.103 (e) (ii) of the Substantial Rehabilitation Program

Handbook.

c. The term of the Contract is approvable in accordance with § 1276.103 (f) (2) of the Substantial Rehabilitation Program Handbook.

4. Credentials of the rehabilitator and/or owner. a. The ability of the rehabilitator and/or owner as evidenced by experience in the rehabilitation of housing or in related fields is acceptable.

b. There is no identity of interest between the owner and the LHA.

5. Management capability. a. The owner (i) has the necessary experience and/or qualifications to carry out the required management and maintenance activities and has submitted acceptable evidence of his ability to do so; or (ii) proposes to contract with a

management agent and such agent has the necessary experience and/or qualifications, and does not have an identity of interest with the LHA; or (iii) proposes to contract with the LHA for management, maintenance, or operation of the housing and has demonstrated that adequate management, maintenance and operation services are not otherwise available in the focality:

b. The management submission (if required) contained in the proposal meets all requirements of Appendix V of the section 23 Substantial Rehabilitation Program

Handbook.

6. Equal opportunity requirements. a. The owner has submitted an Affirmative Fair Housing Marketing Plan, if required.

b. The required Title VI Assurance and any required Executive Order 11246 certifications have been submitted.

7. Employment and business opportunities in project area. a. An affirmative action plan for utilization of businesses in, or owned in substantial part by persons residing in, the project area has been submitted.

b. The proposal includes information with regard to the number of trainee and employment positions to be filled by lower income project area residents as required by regulations issued pursuant to Section 3 of the Housing and Urban Development Act of 1968.

8. Relocation. a. The estimate of relocation payments submitted with the proposal is accepted.

b. The proposal indicates that the rehabilitator and/or owner is/are fully cognizant of HUD relocation requirements under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 and will meet those requirements.

c. Full funding of relocation payments involved will be provided by: (1) the rehabilitator and/or owner; or (ii) other commitments believed to be satisfactory to HUD.

9. Other. a. The proposal meets all requirements of the Rehabilitation Program Packet and the section 23 Substantial Rehabilitation Program Handbook.

b. Special comments, if any:

This Proposal has been approved by the Department of Housing and Urban Development (HUD) and by this Authority.

Should you decide to proceed with this undertaking, you will be expected to complete the rehabilitation, in a manner acceptable to this Authority and HUD, in compliance with: (a) the requirements of the Rehabilitation Program Packet and your Final Proposal, (b) all applicable State and local laws, codes, ordinances, and regulations as modified by any waivers obtained from the appropriate officials; and (c) the appropriate HUD Minimum Design Standards for Rehabilitation for Residential Properties.

If you accept this Notification, an Annual Contributions Contract (ACC) will be executed by this Authority and HUD; however, if final working drawings and specifications are to be prepared by a registered architect, the ACC will be executed following your submission to this authority not later than

5 a certification by the architect that the working drawings and specifications have been completed and that they meet the requirements of (a), (b) and (c) of the immediately preceding paragraph. Following execution of the ACC, an "Agreement to Enter into Housing Assistance Payments Contract" (Agreement) will be executed by you and this Authority which Agreement shall be

1 Insert total number of units to be rehabilitated.

2 Insert location of units. If units are to be rehabilitated and leased at more than one location, all such locations should be listed and units and rent summaries prepared for each such location.

3 Insert number of units to be contracted for by the LHA for purposes of making housing assistance payments on behalf of eligible low-income families occupying such units.

If the proposal was negotiated in accord with 1276.204 (a) of the section 23 Substantial Rehabilitation Program Handbook, clause (a) should read "(a) your Final Proposal."

5 Insert date by which the architect's certification is to be sent to the Housing Authority.

in accordance with the form of Agreement prescribed by HUD.

[Insert the following if the rehabilitation will require the displacement of occupants.]

The amount of relocation payments under the Uniform Relocation Assistance and Real Property Acquisition Policies Act calculated by this Authority, and approved by HUD, is If you accept this Notification

and as a condition to this Authority's entering into an Agreement with you, (1) you will be required to place this amount in an escrow account under the terms of which payments may be made only upon presentation of written authorization by the LHA for the purpose of meeting relocation costs or (2) HUD will have to be satisfied that other commitments have been made for the funding of such payments.

Your acceptance of this Notification constitutes a certification and agreement that (a) there will not be made any assignment, conveyance, or any other form of transfer of the property, or any interest therein, without the prior written consent of the Authority and HUD, except to a financial institution for the purpose of obtaining financing (an assignment to a limited partnership of which you are the general partner shall not be considered an assignment for this purpose), and (b) no rehabilitator or owner shall be substituted for those named in the proposal without the written consent of the Authority and HUD.

Please indicate your acceptance of this Notification by signing in the space provided and returning two copies to this office within ten days of the date of this Notification. Yours truly,

Housing Authority

By

Accepted:

Title

Date

NOTE.-Appendix IX, which relates to internal HUD processing procedures, is not included herein, but does appear in the HUD Substantial Rehabilitation Program Handbook.

APPENDIX X-ANNUAL CONTRIBUTIONS
CONTRACT

This Annual

day

Contributions Contract (ACC) is entered into as of the ---. of 19_-, by and between the United States of America (herein called the "Government"), pursuant to the United States Housing Act of 1937 (42 U.S.C. 1401, et seq., which Act as amended to the date of this ACC is herein called the "Act") and the Department of Housing and Urban Development Act (42 U.S.C. 3521), and (herein called the "Local Authority"), which is organized and existing under the laws of the State of

and is a "public housing agency" as defined in the Act. In consideration of the mutual

covenants hereinafter set forth, the parties hereto agree as follows:

0.1 Project or projects. The Local Authority is undertaking to provide decent, safe, and sanitary housing for families of low income (further defined as "Family" or "Families" in section 2.2) in privately owned accommodations pursuant to section 23 of the Act by means of Housing Assistance Payments Contracts ("Contracts") with the persons or entities having the legal right to lease or sublease such housing ("Owners”). Such undertaking may involve an agreement for the use of housing to be constructed ("New Construction”), an agreement for the use of existing housing to be substantially rehabilitated ('Substantial Rehabilitation"), or the use of existing housing without substantial rehabilitation ("Existing Housing"). In each instance, the type of housing and the number and sizes of dwelling units with respect to which a certain maximum Annual Contributions commitment is made shall constitute a Project hereunder and shall be identified by a stated Project number.

0.2 Part I and Part II of this annual contributions contract. (a) Certain provisions of this ACC, principally those which are specifically applicable to a designated Project, are contained in Part I. Separate forms of Part I are used for different types of Projects (i.e., New Construction, Substantial Rehabilitation, and Existing Housing). A separate Part I, on the applicable form thereof, has been executed with respect to each Project hereunder, and each such Part I, so executed, constitutes a part of this ACC.

(b) The remaining provisions of this ACC, which are applicable to all Projects hereunder, are contained in Part II, which, although not separately executed, constitutes a part of this ACC.

0.3 Fiscal Year. Except for the first Fiscal Year of each Project, there shall be one Fiscal Year for all Projects hereunder. Such established Fiscal Year shall be the 12-month period ending of each calendar

year. The first Fiscal Year for each Project shall be as provided in the Part I applicable to such Project.

The Local Authority shall, to the maximum extent feasible, enter into an Agreement and Contract in accordance with the numbers and sizes of units specified above, but the Local Authority shall not enter into any Agreement or Contract or take any other action which will result in a claim for a total Annual Contribution in respect to the Project in excess of the maximum amount stated in section 1.3(a).

1.2 Authorization of actions by local authority. (a) In order to carry out the Project, the Local Authority is authorized to (1) enter into an Agreement, (ii) enter into a Contract, (iii) make housing assistance payments on behalf of Families, and (iv) take all other necessary actions all in accordance with the forms, conditions and requirements prescribed or approved by the Government; Provided, however, that neither the Local Authority nor the Government shall assume any obligation beyond that provided in the form of Agreement, and in the Contract, approved by the Government.

(b) The Contract shall bear the written approval of the Government.

(c) The Contract shall be for an initial term of not more that five years with provision for renewal for subsequent terms of not more than five years each, but in no event shall the term of the Contract, with respect to any unit, exceed 15 years, subject to the maximum 17 year limitation in Section 1.5.

(d) The Contract may provide for periodic adjustments in the rents chargeable by the Owner; Provided, however, that any such provision shall specify that such adjustments are subject to the following clause:

Limitation. The LHA will make housing assistance payments in increased amounts commensurate with rent adjustments or renegotiations under this Section, but not in excess of the amount available with respect to the unit or units under the Contract out of the maximum total amount of annual contributions payable under section 1.3(b) (1) of Part I of the ACC for all dwelling units under that ACC Part I. No commitment is made by the LHA or the Government that such maximum total amount of annual contributions will be increased by reason of any such rent adjustments or renegotiations. However, the Owner may select eligible Families in light of this limitation so that his total receipts (Family rents and housing assistance payments) would be commensurate with the adjusted or renegotiated rents.

1.3 Annual contributions. (a) Notwithstanding any other provisions of this ACC (other than paragraph (c) of this Section) or any provisions of any other contract between the Government and the Local Authority, the Government shall not be obligated to make any Annual Contributions or any other payment in respect to the Project in excess of $------; Provided, however, that this amount shall be reduced commensurate with any reduction in the number of units under the Housing Assistance Payments Contract or pursuant to any other provisions of this ACC.

(b) Subject to the maximum dollar limitation in paragraph (a) of this section, the Government shall pay Annual Contributions to the Local Authority in respect to the Project in an amount equal to the sum of the following:

(1) The amount of housing assistance payments payable during the Fiscal Year (see section 1.4) by the Local Authority pursuant to the Contract, as authorized in section 1.2 of this ACC.

(2) The allowance, in the amount approved by the Government, for security and utility deposits.

(3) The allowance, in the amount approved by the Government, for preliminary costs of administration.

(4) The allowance, in the amount approved by the Government, for the regular costs of administration.

(c) Subject to the maximum amount stated in paragraph (a) of this section, the Annual Contribution for any Fiscal Year may include such amount as the Government may determine to be necessary to assure that the low-rent character of the Project will be maintained, which amount shall be credited to an account maintained by the Local Authority or the Government as determined by the Government. To the extent funds are available in said account, the Annual Contribution for any Fiscal Year may exceed the maximum amount stated in paragraph (a) of this section by such amount, if any, as may be required for increases reflected in the estimates of required annual contributions applicable to such Fiscal Year as approved by the Government in accordance with section 1.7 below. Any amount remaining in said account, or in the fund authorized for security and utility deposits, after payment of the last Annual Contribution with respect to the Project shall be applied by the Government as a receipt in accordance with section 18 of the Act.

(d) The Government will make periodic payments on account of the Annual Contributions upon requisition therefor by the Local Authority in the form prescribed by the Government. Each requisition shall include certifications by the Local Authority that housing assistance payments have been or will be made only with respect to units which:

(1) are under lease by Families at the time such housing assistance payments are made except as otherwise provided in the Contract; and

(2) the Local Authority has inspected or caused to be inspected, pursuant to section 2.7 of Part II of this ACC, within one year prior to the making of such housing assistance payments.

(e) Following the end of each Fiscal Year, the Local Authority shall promptly pay to the Government, unless other disposition is approved by the Government, the amount, if any, by which the total amount of periodic payments during the Fiscal Year exceeds the total amount of the Annual Contribution

payable for such Fiscal Year in accordance with this Section.

1.4 Fiscal year. The Fiscal Year for the Project shall be the Fiscal Year established by section 0.3 of this ACC; provided, however, that the first Fiscal Year for the Project shall be the period beginning with the commencement of leasing (i.e., the first day of the month in which the first unit is leased by an eligible Family) and ending on the last day of said established Fiscal Year which is not less than 12 months after commencement of such leasing. If the first Fiscal Year exceeds 12 months, the maximum Annual Contribution in section 1.3 (a) may be adjusted by the addition of the pro rata amount applicable to the period of operation in excess of 12 months.

1.5 Term of annual contributions contract. This ACC shall remain in effect so long as the Housing Assistance Payments Contract(s) is (are) in effect; Provided, however, that in no case may this ACC exceed 17 years from the beginning of the first Fiscal Year.

1.6 Federal and local government approvals. (a) The making of this ACC and the undertaking by the Government of the Annual Contributions as herein provided has been duly approved on List No. Annual Contributions Contracts.

for

1.7 Estimates of required annual contributions. The Local Authority shall from time to time submit to the Government estimates of required annual contributions at such times and in such form as the Government may require. All estimates and any revisions thereof submitted under this Section shali be subject to Government approval.

1.8 Affirmative fair housing marketing regulation. The Local Authority shall require the Owner to comply with the Affirmative Fair Housing Marketing Regulation (subject to any exemptions therein), including the submission for Government approval of an Affirmative Fair Housing Marketing Plan and compliance with such approved Plan, as if the Owner were expressly subject to said Regulation.

1.9 Equal employment opportunity. (a) The Local Authority shall incorporate or cause to be incorporated into any contract for construction work, or modification thereof, as defined in the regulations of the Secretary of Labor at 41 CFR Chapter 60, which is to be performed pursuant to this contract, the following Equal Opportunity clause:

Equal Employment Opportunity During the performance of this contract, the contractor agrees as follows:

(1) The contractor will not discriminate against any employee or applicant for employment because of race, color, religion, creed, sex, or national origin. The contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, color, religion, creed, sex, or national origin. Such action shall include, but not be limited to the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the Local Authority setting forth the provisions of this Equal Opportunity clause.

(2) The contractor will in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, creed, sex, or national origin.

(3) The contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided by the Local Authority advising the said labor union or workers' representative of the contractor's commitments under this Section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment.

(4) The contractor will comply with all provisions of Executive Order No. 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor.

(5) The contractor will furnish all information and reports required by Executive Order No. 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the Government and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders.

(6) In the event of the contractor's noncompliance with the Equal Opportunity clause of this contract or with any of the said rules, regulations, or orders, this contract may be cancelled, terminated, or suspended in whole or in part and the contractor may be declared ineligible for further contracts in accordance with procedures authorized in Executive Order No. 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order No. 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor or as otherwise provided by law.

(7) The contractor will include the portion of the sentence immediately preceding Paragraph (1) and the provisions of Paragraphs (1) through (7) in every subcontract or pur