Program Requirements

Requirements

The following sets forth Program requirements that must be met by all builders and projects. If another public agency (i.e., the New York State Division of Homes and Community Renewal or Housing Finance Agency) will be the primary funding source, Orange County Development (OCD) will coordinate its review and oversight responsibilities, to the maximum extent possible, with the other funding agency. In any case, OCD will be required to insure compliance with all HOME Regulations.

Project Costs

All project costs must be reasonable. OCD will perform a review of project costs in order to determine reasonableness.

Acquisition Costs

Acquisitions at a market price must be pursuant to arms-length transactions involving unrelated parties and, in any event, must not be in excess of market value as determined by an appraisal in form and substance satisfactory to OCD. Costs for acquisitions involving related parties or parties participating in the project may be disallowed in excess of the original purchase price of the seller or appraised value, whichever is lower. A copy of the appraisal supporting the acquisition price must be submitted to OCD. HOME funds may not be used to refinance existing mortgages.

Underwriting Standards

All projects must be financially feasible. Accordingly, income and expense pro-formas for each project, which demonstrate financial feasibility, must be submitted to and approved by OCD. Supporting documentation, including market studies to justify projected rent levels, must also be submitted, if requested.

Financing Plan

All sources of financing for payment of project costs must be identified. Financing in excess of project costs is prohibited. After selection of projects for funding, OCD must review the final financing plan, including amount to be made, available under the Program, and determine that such financing plan is sufficient and appropriate.

Design Requirements

All plans and specifications must be in compliance with federal, state and local codes and regulations, including HUD Section 8 housing quality standards and, 504 provisions for handicapped accessibility. In addition, all projects should reflect the historic character of their environment in terms of design, scale, size and materials. Applicants are also encouraged to obtain LEED Certifications for new construction projects.

Environmental Requirements

The environmental effects of each project assisted under the Program must be assessed in accordance with the National Environmental Policy Act ("NEPA") and State Environmental Quality Review Act ("SEQRA"). It is anticipated that another private or public agency will have performed these assessments in most cases. If the assessments have been performed by other agencies, OCD will rely upon such assessments to the extent permitted by law and make findings based thereon.

If SEQRA review, but not NEPA review, has been performed, OCD will undertake the NEPA assessment relying upon the SEQRA assessment to the extent permitted by law. Where applicable, lead-based paint hazard inspection and risk assessment will be required by OCD.

Professional Services & Fee

The cost of all professional services must he reasonable, as determined by OCD. OCD will also review the selection of/and contracts with, architects, engineers, attorneys, construction managers, contractors and other consultants in addition to the cost associated with provision of insurance coverage required by OCD.