Housing Preservation Grant

533 Housing Preservation Grant

Statement of Activities

  1. i58, Inc is requesting funds from the Housing Preservation Grant (HPG) in order to leverage with funds received from the SC State Housing Finance Development Authority Trust Funds in our homeowner assistance program. This will allow for housing preservation of existing homes and provide much needed repairs. The funds will be provided as a forgivable award to those residents within the city limits of Chester. The compliance period will be for twenty (20) years in which the forgiven rate will be five percent (5%) per year over the 20-year time frame.
  2. Applications will be taken on first-come, first served basis. The process of selecting recipients, determining housing preservation needs of the dwelling, performing the necessary work and monitoring/inspecting work performed of these funds will be based on the following:
    • Those homeowners who own and reside in the subject property for a minimum of two (2) years. A photocopy of a legible deed that has been recorded with the Register of Deed that indicates book and page where recorded, date recorded, and office where recorded will need to be provided.
    • Total household income cannot exceed fifty (50%) of the area median income as determine by Housing and Urban Development (HUD). A chart of income limits is available on our website under the Home Repair tab.
    • The rehabilitation of each home will be prioritized and funded according to three types of repairs:
      • Primary Repairs (health and safety related repairs)
      • Ancillary Repairs (associated with a health and safety repair)
      • Supplemental Repairs (those repairs not covered above that are desired by the homeowner.)
    • All rehabilitation will be completed by a licensed General or Residential Contractor who will be required to provide a current and valid contractor’s license along with proof of General Liability insurance and Worker Compensation insurance.
    • Rural Development will review and approve the scope of work to be completed for each project. Upon approval from Rural Development, bids will be requested from contractors with the lowest bid being awarded. The awarded Contractor will be required to complete a detailed work write-up for review and approval by the homeowner, Rural Development, i58, Inc, and SC State Housing Finance and Development Authority Housing Inspector before any work will take place.
    • i58, Inc will be responsible for all aspects of the project that includes verifying and approving the beneficiary to be service, selecting the licensed General or Residential Contractor, coordinating inspections as well as overseeing the rehabilitation of the home.
    • All inspections shall be completed by the City of Chester’s Building Inspector as well as a Housing Inspector from the SC State Housing Finance and Development Authority along with the Rural Development Representative.
  3. i58, Inc will adopt Exhibit F-1 of subpart 1944-N for identifying potential environmental impacts and will work with local environment groups and historical preservation groups (where appropriate) to ensure that environment issues are dealt with in an appropriate manner. Whenever a dwelling requiring an environmental assessment is proposed for HPG assistance, i58, Inc will immediately contact RD for preparation of environmental assessment. i58, Inc will provide assistance in rehabilitation of historical properties in accordance with 7 CFR 1944-673 and RD Instruction 2000-FF Exhibit A.
  4. i58, Inc will adhere to any written standards developed by the SC State Housing Finance and Development Authority, Rural Development, and to all local standards. Those standards are:
    • All work must be in compliance with the International Code Series for residential, plumbing, mechanical, fuel gas, energy conservation, fire, and electrical codes. In addition, all work must meet any local code restrictions.
    • All work performed, whether specified or not, shall be performed and completed in a manner supportable by the manufacturer’s specifications, standard construction practices, and/or recognized building codes.
    • All work performed shall be “finished” work whether expressed or not. For example, if a door unit is specified for a bedroom then that unit shall be finished to match an existing unit whether it is stained/finished or painted. The unit shall have a lockset installed.
    • All materials shall be new, in good condition, and of standard grade.
    • i58, Inc will contact the building code enforcement agency within the locality in which the proposed construction is to be undertaken and have the agency’s building inspector review the work write-ups or plans and specifications prior to submission of the application to ensure that i58, Inc has met locality requirements.
    • A physical on-site repair assessment must be performed prior to the submission of application (if applicable)
    • All work will be done in accordance with CABO
  5. i58, Inc plans for all work to be completed within twelve (12) months of receipt of funds.
  6. The anticipated staffing required for the program will be that of a project manager. This person will ensure that all documents associated with the project are accurately prepared, reviewed and submitted in a timely manner. Additionally, the project manager will oversee the rehabilitation process from beginning to end including but not limited to: preparation of bids for contractors, selection of contractors, submitting all documentation in a timely manner to SC Housing and Rural Development, scheduling all inspections, be on site when all inspections take place, review of documentation for the project, and participate in any project related calls, trips, meetings, etc.
  7. It is estimated that i58, Inc will assist four (4) very low-income minority and non-minority residents with funds received through the HPG. The funds will be provided as a forgivable award to those residents within the city limits of Chester. The compliance period will be for twenty (20) years in which the forgiven rate will be five percent (5%) per year over the 20-year time frame.
  8. The geographical area to be served by the HPG awarded to i58, Inc will be residents within the city limits of Chester, SC.
  9. The annual estimated budget for the program period based on the financial needs to accomplish the objectives outlined in this proposed along with the schedule of how i58, Inc. will draw the HPG funds are listed below:
    • Construction Cost: ($47,175) Cost designated to rehab four (4) owner-occupied homes once they have been identified and approved. This will be a maximum of $11,793.75 used for each project.
    • Project Management: ($7,325) All of the costs associated with tasks to ensure competent management throughout the entirety of the process are covered here. This will cover oversight of the rehabilitation process from beginning to end including but not limited to: preparation of bids for contractors, selection of contractors, submitting all documentation in a timely manner to SC Housing and Rural Development, scheduling all inspections, be on site when all inspections take place, review of documentation for the project, and participate in any project related calls, trips, meetings, etc.
    • Travel/Equipment/Supplies: ($1,000) Expenses used to cover the travel, equipment, and supplies that are necessary to carry out the functions of the rehabilitation projects.
    • i58, Inc. will draw the awarded funds after each project has been completed and work approved by the SC Housing Inspector and the Rural Development Representative. The estimated schedule for completing the projects after they have been identified and approved for the program will be two (2) project during the 2nd Quarter and two (2) projects during the 3rd Quarter.
    • Estimated amounts per draw will be as listed below:
      • $23,587.50 for construction cost for two (2) rehabilitation projects
      • $ 3,662.50 for project management for two (2) rehabilitation projects
      • $    500.00 for supplies/travel for two (2) rehabilitation projects
      • $27,750.00 total for the 2nd and 3rd Quarter
      • If a rehabilitation project will take more than one month to complete, monthly draws for the work that has been 100% completed will be invoiced for payment.
  10. i58, Inc. will have no addition Federal funding associated with the HPG so there is not indirect cost proposed.
  11. i58, Inc. currently uses Quickbooks Nonprofit Edition accounting system for maintaining financial data.
  12. A file will be maintained for each project in the i58, Inc office. Upon completion of the project, a request for final inspection will be submitted to SC State Housing Finance and Development Authority to determine the quality and effectiveness of the housing preservation measures by following the write-up that was originally approved. Quarterly reports will be submitted relating to the activities during the reporting period to the project’s objectives and analyzing the effectiveness of the program in accordance with 7 CFR 1944.683 (b).
  13. i58, Inc will match HPG funds with SC State Housing Finance and Development Authority Trust Fund Program.  The amount awarded by SC State Housing is $109,000.00. Award letter is attached with the application.
  14. i58, Inc. will have no program income associated with the HPG.
  15. The HPG funds will be utilized as a forgivable loan that will be leveraged with SC State Housing Finance and Development Trust Funds, a compliance period of twenty (20) years will be enforced. Restrictive covenants will be utilized as the award will be forgiven at a rate of five percent (5%) per year over the twenty (20) year period. The HPG funds awarded will also be secured by restrictive covenants for a twenty (20) year period and forgiven at a rate of five percent (5%) per year. In the case of the lost of legal status, any funds not drawn upon will remain the property of Rural Development and outstanding securities that may become available due to breach of convent shall become the property of SC State Housing Finance and Development Trust Fund.
  16. i58 will identify and solve overcrowding problems by following the guidelines provided in 7 CFR 3560.155 subpart E. Should a potential beneficiary have an overcrowding problem, the situation will be reviewed to determine the best of course of action to alleviate the issue.  If HPG funding will be ale to cover the expenses to address this issue, it will be reviewed and approved by all parties involved. If the expenses are too costly for HPG funding, the beneficiary will be advised that the home is not eligible for funding and they will be advised of other options such as rental units with adequate housing needs for the family.
  17. The outreach efforts as outlined in RD Instruction 1944.671(b) will be followed as i58, Inc will work with the local newspaper and government officials to ensure the public is aware of the HPG. The application form used for the program will clearly state, “This is an equal opportunity program. Discrimination is prohibited by Federal Law.”

Please provide any comments you have about the program to leslie@i58helps.org. Comments must be received by May 6th, 2020.