Exhibit 1 - Agreement — Alameda City Council, October 18, 2022 (part 1 of 2)

Five Keys Schools and Programs 1 Version 12-01-21

SERVICE PROVIDER AGREEMENT

This SERVICE PROVIDER AGREEMENT (“Agreement”) is entered into this ___ day of _________________ 2022 (“Effective Date”), by and between the CITY OF ALAMEDA, a municipal corporation (“the City”), and FIVE KEYS SCHOOL AND PROGRAMS, a California non-profit 501(c)(3) corporation, whose address is 70 Oak Grove Street, San Francisco, CA 94107 (“Provider”), in reference to the following facts and circumstances:

RECITALS
A. The City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of the City.

B. The City is in need of the following services: Temporary and permanent supportive housing for some of the City’s most vulnerable residents. City staff issued an RFP on August 5, 2021 and after a submittal period of twenty-eight (28) days received five (5) of timely submitted proposals.

Staff reviewed the proposals, interviewed qualified firms and selected the service provider that best meets the City’s needs.

C. Provider possesses the skill, experience, ability, background, certification and knowledge to provide the services described in this Agreement on the terms and conditions described herein.

D. The City and Provider desire to enter into an agreement for interim supportive housing for some of the City’s most vulnerable residents, upon the terms and conditions herein.

AGREEMENT

NOW, THEREFORE, in consideration of the forgoing, which are incorporated herein by reference, and for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the City and Provider agree as follows:

1. TERM:

The term of this Agreement shall commence on the 1 st day of February 2023, and shall terminate on the 31st day of January 2028, unless terminated earlier as set forth herein.

2. SERVICES TO BE PERFORMED:

Provider agrees to do all necessary work at its own cost and expense, to furnish all labor, tools, equipment, materials, except as otherwise specified, and to do all necessary work included in Exhibit A as requested. Provider acknowledges that the work plan included in E xhibit A is tentative and does not commit the City to request Provider to perform all tasks included therein.

3. CO MPENSATION TO PROVIDER :
a. By the 7th day of each month, Provider shall submit to the City an invoice for the total amount of work done the previous month. Pricing and accounting of charges are to be according to the fee schedule as set forth in Exhibit B and incorporated herein by this reference .

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Extra work must be approved in writing by the City Manager or their designee prior to performance and shall be paid on a Time and Material basis as set forth in Exhibit B. b. Compensation for work done under this Agreement, shall not exceed as follows:

FY 22-23 total compensation shall not exceed $807,839.

FY 23-24 total compensation shall not exceed $2,016,272.

FY 24-25 total compensation shall not exceed $2,096,923.

FY 25-26 total compensation shall not exceed $2,180,800.

FY 26-27 total compensation shall not exceed $2,268,032.

FY 27-28 total compensation shall not exceed $1,375,978.

Total five-year compensation shall not exceed $10,745,844 Use of contingency shall be for items of work outside the original scope and requires prior written authorization by the City.

4. TIME IS OF THE ESSENCE:

Provider and the City agree that time is of the essence regarding the performance of this Agreement.

5. STANDARD OF CARE:

Provider agrees to perform all services hereunder in a manner commensurate with the prevailing standards of like professionals or service providers, as applicable, in the San Francisco Bay Area and agrees that all services shall be performed by qualified and experienced personnel who are not employed by the City.

6. INDEPENDENT PARTIES:

Provider hereby declares that Provider is engaged as an independent business and Provider agrees to perform the services as an independent contractor. The manner and means of conducting the services and tasks are under the control of Provider except to the extent they are limited by statute, rule or regulation and the express terms of this Agreement. No civil service status or other right of employment will be acquired by virtue of Provider ’s services. None of the benefits provided by the City to its employees, including but not limited to unemployment insurance, workers’ compensation plans, vacation and sick leave, are available from the City to Provider, its employees or agents. Deductions shall not be made for any state or federal taxes, FICA payments, PERS payments, or other purposes normally associated with an employer -employee relationship from any compensation due to Provider. Payments of the above items, if required, are the responsibility of Provider.

7. IMMIGRATION REFORM AND CONTROL ACT (IRCA):

Provider assumes any and all responsibility for verifying the identity and employment authorization of all of its employees performing work hereunder, pursuant to all applicable IRCA or other federal, or state rules and regulations. Provider shall indemnify, defend, and hold the City harmless from and against any loss, damage, liability, costs or expenses arising from any noncompliance of this provision by Provider.

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8. NON-DISCRIMINATION:

Consistent with the City’s policy and state and federal law that harassment and discrimination are unacceptable conduct, Provider and its employees, contractors, and agents shall not harass or discriminate against any job applicant, City employee, or any other person on the basis of any kind of any statutorily (federal, state or local) protected class, including but not limited to: race, religious creed, color, national origin, ancestry, disability (both mental and physical) including HIV and AIDS, medical condition (e.g. cancer), genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, pregnancy, political affiliation, military and veteran status or legitimate union activities. Provider agrees that any violation of this provision shall constitute a material breach of this Agreement.

9. HOLD HARMLESS:
a. To the fullest extent permitted by law, Provider shall indemnify, defend (with counsel acceptable to the City) and hold harmless the City, its City Council, boards, commissions, officials, employees, agents and volunteers (“Indemnitees”) from and against any and all loss, damages, liability, obligations, claims, suits, judgments, costs and expenses whatsoever, including reasonable attorney ’s fees and costs of litigation (“Claims”), arising from or in any manner connected to Provider’s performance of its obligations under this A greement or out of the operations conducted by Provider even if the City is found to have been negligent. If the Claims filed against Indemnitees alleg e negligence, recklessness or willful misconduct on the part of Provider, Provider shall have no right of reimbursement against Indemnitees for the costs of defense even if negligence, recklessness or willful misconduct is not found on the part of Provider.

Provider shall not have any obligations to indemnify Indemnitees if the loss or damage is found to have resulted solely from the negligence or the willful misconduct of the City. The defense and indemnification obligations of this Agreement are undertak en in addition to, and shall not in any way be limited by, the insurance obligations contained in this Agreement. b. As to Claims for professional liability only, Provider’s obligation to defend Indemnitees (as set forth above) is limited as provided in California Civil Code Section 2782.8. c. Provider’s obligation to indemnify, defend and hold harmless Indemnities shall expressly survive the expiration or early termination of this Agreement.

10. I NSURANCE :
a. On or before the commencement of the terms of this Agreement, Provider shall furnish the City’s Risk Manager with certificates showing the type, amount, class of operations covered, effective dates and dates of expiration of insurance coverage in compliance with Sections

10.b. (1) through (4) Such certificates, which do not limit Provider ’s indemnification, shall also contain substantially the following statement:
“Should any of the above insurance covered by this certificate be canceled or coverage reduced before the expiration date thereof, the insurer affording coverage shall provide thirty (30) days’ advance written notice to the City of Alameda. Attention: Risk Manager.” DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA Five Keys Schools and Programs 4 Version 12-01-21
Provider shall maintain in force at all times during the performance of this Agreement all appropriate coverage of insurance required by this Agreement with an insurance company licensed to offer insurance business in the State of California with a current A.M. Be st’s rating of no less than A:VII or Standard & Poor’s Rating (if rated) of at least BBB unless otherwise acceptable to the City. Provider shall deliver updated insurance certificates to the City at the address described in Section 17.f. prior to the expi ration of the existing insurance certificate for the duration of the term of Agreement. Endorsements naming the City, its City Council, boards, commissions, officials, employees, agents, and volunteers as additional insured shall be submitted with the insurance certificates.
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Provider Initials
b. C
OVERAGE REQUIREMENTS:

Provider shall maintain insurance coverage and limits at least as broad as:
(1) W orkers ’ Compensation:

Statutory coverage as required by the State of California. (2) L iability :

Commercial general liability coverage in the following minimum limits:

Bodily Injury: $1,000,000 each occurrence
$2,000,000 aggregate - all other
Property Damage: $1,000,000 each occurrence
$2,000,000 aggregate
If submitted, combined single limit policy with per occurrence limits in the amounts of $2,000,000 and aggregate limits in the amounts of $4 ,000,000 will be considered equivalent to the required minimum limits shown above. Additional Insured Endorsement naming the City, its City Council, boards, commissions, officials, employees, agents, and volunteers is required. (3)
Automotive:

Comprehensive automobile liability coverage (any auto) in the following minimum limits:

Bodily injury: $1,000,000 each occurrence
Property Damage: $1,000,000 each occurrence
or
Combined Single Limit: $2,000,000 each occurrence
Additional Insured Endorsement naming the City, its City Council, boards, commissions, officials, employees, agents, and volunteers is required.

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(4) Sexual Misconduct Liability:

S exual misconduct liability coverage in the following minimum limit:
$1,000,000 each occurrence
c. SUBROGATION WAIVER:

Provider hereby agrees to waive rights of subrogation that any insurer of Provider may acquire from Provider by virtue of the payment of any loss. Provider agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether the City has received a waiver of subrogation endorsement from the insurer. The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City for all work performed by Provider, its employees, agents and subcontractors.

d. F AILURE TO SECURE :

If Provider at any time during the term hereof should fail to secure or maintain the foregoing insurance, the City shall be permitted to obtain such insurance in Provider’s name or as an agent of Provider and shall be compensated by Provider for the costs of the insurance premiums at the maximum rate permitted by law and computed from the date written notice is received that the premiums have not been paid.
e. ADD ITIONAL INSUREDS:

The City, its City Council, boards, commissions, officials, employees, agents, and volunteers shall be named as additional insured(s) under all insurance coverages, except workers’ compensation and professional liability insurance. The naming of an additional insured shall not affect any recovery to which such additional insured would be entitled under this policy if not named as such additional insured. An additional insured named herein shall not be held liable for any premium, deductible portion of any loss, or expense of any nature on this policy or any extension thereof. Any other insurance held by an additional insured shall not be required to contribute anything toward any loss or expense covered by the insurance provided by this policy.

Additional Insured coverage under Provider’s policy shall be primary and non- contributory and will not seek contribution from the City’s insurance or self -insurance. Any available insurance proceeds broader than or in excess of the specified minimum insurance coverage requirements and/or limits shall be available to the additional insured(s).

E. SUFFICIENCY OF INSURANCE:

The insurance limits required by the City are not represented as being sufficient to protect Provider. Provider is advised to consult Provider ’s insurance broker to determine adequate coverage for Provider. The coverage and limits shall be (1) the minimum coverage and limits specified in this Agreement; or (2) the broader coverage and maximum limits of the coverage carried by or available to Provider; whichever is greater.

11. CONFLICT OF INTEREST:

Provider w arrants that it is not a conflict of interest for Provider to perform the services required by this Agreement. Provider may be required to fill out a conflict of interest form if the DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA

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services provided under this Agreement require Provider to make certain governmental decisions or serve in a staff capacity as defined in Title 2, Division 6, Section 18700 of the California Code of Regulations.

12. PROHIBITION AGAINST TRANSFERS:
a. Provider shall not assign, sublease, hypothecate, or transfer this Agreement, or any interest therein, directly or indirectly, by operation of law or otherwise, without prior written consent of the City Manager. Provider shall submit a written request for consent to transfer to the City Manager at least thirty (30) days in advance of the desired transfer. The City Manager or their designee may consent or reject such request in their sole and absolute discretion. Any attempt to do so without said consent shall be null and void, and any assignee, sublessee, hypothecate or transferee shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer. However, claims for money against the City under this Agreement may be assigned by Provider to a bank, trust company or other financial institution without prior written consent. b. The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock, membership interest, partnership interest, or the equivalent, which shall result in changing the control of Provider, shall be construed as an assignment of this Agreement.

Control means fifty percent or more of the voting power of Provider.

13. APPROVAL OF SUB-PROVIDERS:
a. Only those persons and/or businesses whose names and resumés are attached to this Agreement shall be used in the performance of this Agreement. However, if after the start of this Agreement, Provider wishes to use sub-providers, at no additional costs to the City, then Provider shall submit a written r equest for consent to add sub- providers including the names of the sub - providers and the reasons for the request to the City Manager at least five (5) days in advance. The City Manager may consent or reject such requests in their sole and absolute discretion. b. Each sub -provider shall be required to furnish proof of workers ’ compensation insurance and shall also be required to carry general, automobile and professional liability insurance (as applicable) in reasonable conformity to the insurance carried by Provider. c. In addition, any tasks or services performed by sub- providers shall be subject to each provision of this Agreement. Provider shall include the following language in their agreement with any sub-provider: “Sub-providers hired by Provider agree to be bound to Provider and the City in the same manner and to the same extent as Provider is bound to the City.” d. The requirements in this Section 13 shall not apply to persons who are merely providing materials, supplies, data or information that Provider then analyzes and incorporates into its work product.

14. P ERMITS AND LICENSES :

Provider, at its sole expense, shall obtain and maintain during the term of this Agreement, all appropriate permits, certificates and licenses, including a City business license that may be required in connection with the performance of the services and tasks hereunder.

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15. REPORTS:
a. Each and every report, draft, work product, map, record and other document produced, prepared or caused to be prepared by Provider pursuant to or in connection with this Agreement shall be the exclusive property of the City.
b. No report, information or other data given to or prepared or assembled by Provider pursuant to this Agreement shall be made available to any individual or organization by Provider without prior approval of the City Manager or their designee. c. Provider shall, at such time and in such form as City Manager or their designee may require, furnish reports concerning the status of services and tasks required under this Agreement.

16. RECORDS:
a. Provider shall maintain complete and accurate records with respect to the services, tasks, work, documents and data in sufficient detail to permit an evaluation of Provider’s performance under the Agreement , as well as maintain books and records related to sales, costs, expenses, receipts and other such information required by the City that relate to the performance of the services and tasks under this Agreement (collectively the “Records”). b. All Records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Provider shall provide free access to the Records to the representatives of the City or its designees during regular business hours upon reasonable prior notice. The City has the right to examine and audit the Records , and to make copies or transcripts therefrom as necessary, and to allow inspection of all proceedings and activities related to this Agreement. Such Records, together with supporting documents, shall be kept separate from other documents and records and shall be maintained by Provider for a period of three (3) years after receipt of final payment.
c. If supplemental examination or audit of the R ecords is necessary due to concerns raised by the City’s preliminary examination or audit of records, and the City ’s supplemental examination or audit of the records discloses a failure to adhere to appropriate internal financial controls, or other breach of this Agreement or failure to act in good faith, then Provider shall reimburse the City for all reasonable costs and expenses associated with the supplemental examination or audit.

17. NOTICES:
a. All notices shall be in writing and delivered: (i) by hand; or (ii) sent by registered, express, or certified mail, with return receipt requested or with delivery confirmation requested from the U.S. postal service; or (iii) sent by overnight or same day courier service at the party’s respective address listed in this Section.
b. Each notice shall be deemed to have been received on the earlier to occur of : (x) actual delivery or the date on which delive ry is refused ; or (y) three (3) days after notice is deposited in the U.S. mail or with a courier service in the manner described above (Sundays and City holidays excepted).

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c. Either party may, at any time, change its notice address (other than to a post office box address) by giving the other party three (3) days prior written notice of the new address. d. All notices, demands, requests, or approvals from Provider to the City shall be addressed to the City at:

City of Alameda
Community Development Department
950 West Mall Square, Room 205
Alameda, CA 94501
ATTENTION: Lois Butler
Ph: (510) 747-6894
e. All notices, demands, requests, or approvals from the City to Provider shall be addressed to Provider at:

Five Keys School and Programs
70 Oak Grove Street
San Francisco, CA 94107
ATTN: Steve Good
Ph: (415) 734-3311
f. All updated insurance certificates from Provider to the City shall be addressed to the City at:

City of Alameda
Community Development Department
950 West Mall Square, Room 205
Alameda, CA 94501
ATTENTION: Annie Cox
Ph: (510) 747- 6893
Email: [email protected]

18. SAFETY:
a. Provider will be solely and completely responsible for conditions of all vehicles owned or operated by Provider , including the safety of all persons and property during performance of the services and tasks under this Agreement . This requirement will apply continuously and not be limited to normal working hours. In addition, Provider will comply with all s afety provisions in conformance with U.S. Department of Labor Occupational Safety and Health Act, any equivalent state law, and all other applicable federal, state, county and local laws, ordinances, codes, and any regulations that may be detailed in other parts of the Agreement. Where any of these are in conflict, the more stringent requirement s will be followed. Provider’s failure to thoroughly familiarize itself with the aforementioned safety provisions will not relieve it from compliance with the obligations and penalties set forth herein. b. Provider will immediately notify the City within 24 hours of any incident of death, serious personal injury or substantial property damage that occurs in connection with the performance of this Agreement. Provider will promptly submit to the City a written report of all DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA

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incidents that occur in connection with this Agreement. This report must include the following information: (i) name and address of injured or deceased person(s); (ii) name and address of Provider’s employee(s) involved in the incident; (iii) name and address of Provider’s liability insurance carrier; (iv) a detailed description of the incident; and (v) a police report.

19. TERMINATION:
a. In the event Provider fails or refuses to perform any of the provisions hereof at the time and in the manner required hereunder, Provider shall be deemed in default in the performance of this Agreement . If such default is not cured within two (2) business days after receipt by Provider from the City of written notice of default, specifying the nature of such default and the steps necessary to cure such default, the City may thereafter immediately terminate the Agreement forthwith by giving to Provider written notice thereof. b. The foregoing notwithstanding, the City shall have the option, at its sole discretion and without cause, of terminating this Agreement by giving seven (7) days’ prior written notice to Provider as provided herein.
c. Upon termination of this Agreement either for cause or for convenience, each party shall pay to the other party that portion of compensation specified in this Agreement that is earned and unpaid prior to the effective date of termination. The obligation of the parties under this Section 19.c. shall survive the expiration or early termination of this Agreement.

20. ATTORNEYS’ FEES:

In the event of the bringing of any action or suit by a party hereto against an other party hereto by reason of any breach of any covenants, conditions, obligation or provision arising out of this Agreement, each party shall bear all of its own costs and expenses of the action or suit, including but not limited to attorney’s fees, experts’ fees, court costs and all other costs of litigation. No party hereto, regardless of whether it is a prevailing party in the action or suit, shall be entitled to recover any such fees and costs from another party hereto.

21. HEALTH AND SAFETY REQUIREMENTS:

Provider acknowledges that the City shall have the right to impose , at the City’s sole discretion, requirements that it deems are necessary to protect the health and safety of the City employees, residents, and visitors. Provider agrees to comply with all such requirements, including, but not limited to, mandatory vaccinations, the use of personal protective equipment (e.g. masks), physical distancing, and health screenings. Provider also agrees to make available to the City, at the City’s request, records to demonstrate Provider’s compliance with this Section. [See Certification of Compliance attached.]

22. COMPLIANCE WITH ALL APPLICABLE LAWS:

During the term of this Agreement, Provider shall keep fully informed of all existing and future state and federal laws and all municipal ordinances and regulations of the City of Alameda which affect the manner in which the services or tasks are to be performed by Provider, as well as all such orders and decrees of bodies or tribunals having any jurisdiction or authority over the same. Provider shall comply with all applicable laws, state and federal and all ordinances, rules and regulations enacted or issued by the City.

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23. CONFLICT OF LAW:

This Agreement shall be interpreted under, and enforced by the laws of the State of California without regard to any choice of law rules which may direct the application of laws of another jurisdiction. The Agreement and obligations of the parties are subject to all valid laws, orders, rules, and regulations of the authorities having jurisdiction over this Agreement (or the successors of those authorities). Any suits brought pursuant to this Agreement shall be filed with the courts of the County of Alameda, State of California.

24. WAIVER:

A waiver by the City of any breach of any term, covenant, or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained herein, whether of the same or a different character.

25. INTEGRATED CONTRACT:

Subject to the language of Section 30, the Recitals and exhibits are a material part of this Agreement and are expressly incorporated herein. This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties hereto, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions hereof. Any modification of this Agreement will be effective only by written execution signed by both the City and Provider.

26. CAPTIONS:

The captions in this Agreement are for convenience only, are not a part of the Agreement and in no way affect, limit or amplify the terms or provisions of this Agreement.

27. COUNTERPARTS:

This Agreement may be executed in any number of counterparts (including by fax, PDF , DocuSign, or other electronic means), each of which shall be deemed an original, but all of which shall constitute one and the same instrument.

28. SIGNATORY:

By signing this A greement, signatory warrants and represents that they executed this Agreement in their authorized capacity and that by their signature on this Agreement, they or the entity upon behalf of which they acted, executed this Agreement.

29. CONTROLLING AGREEMENT:

In the event of a conflict between the terms and conditions of this Agreement ( as amended, supplemented, restated or otherwise modified from time to time) and any other terms and conditions wherever contained, including, without limitation, terms and conditions included within exhibits, the terms and conditions of this Agreement shall control and be primary.

30. NO
NDISCRIMINATION – FEDERAL REQUIREMENTS :

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a. Provider certifies and agrees that it will not discriminate against any employee or applicant for employment because of race, color, religion, national origin, ancestry, sex, age, or condition or physical or mental handicap (as defined in 41 C.F.R. Section 60- 741, et seq.), in accordance with requirement of state or federal law. Provider shall take affirmative action to ensure that qualified applicants are employed and that employees are treated during employment without regard to race, color, religion, national origin, ancestry, sex, age, or condition of physical or mental handicap in accordance with requirements of state and federal law. Such shall include, but not be limited to, the following:

A. Employment upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation.

B. Selection for training, including interns and apprentices. (i) Provider agrees to post in conspicuous places in each of Provider’ s facilities providing services hereunder, available and open to employees and applicants for employment, notices setting forth the provisions of this nondiscrimination clause. (ii) Provider shall, in all solicitations or advertisements for employees placed by or on behalf of Provider, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, national origin, ancestry, sex, age, or condition of physical or mental handicap, in accordance with requirements of state and federal law. (iii) Provider shall send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding a notice advising the labor union or workers ’ representative of Provider’ s commitments under this paragraph.
(iv) Provider certifies and agrees that it will deal with its subcontractors, bidders, or vendors without regard to race, color, religion, national orig in, ancestry, sex, age, or condition of physical or mental handicap, in accordance with requirement of state and federal law. (v) In accordance with applicable state and federal law, Provider shall allow duly authorized county, state and federal representative s access to its employment records during regular business hours in order to verify compliance with the anti-discrimination provisions of this paragraph. Provider shall provide such other information and records as such representatives may require in order to verify compliance with the anti- discrimination provisions of this paragraph.
b. If the City finds that any of the provisions of this paragraph have been violated, the same shall constitute a material breach of Agreement upon which the City may determine to cancel, terminate, or suspend this Agreement. The City reserves the right to determine independently that the anti -discrimination provisions of this Agreement have been violated. In addition, a determination by the California Fair Employment Practices Commission or the Federal Equal Employment Opportunity Commission that Provider has violated state and federal anti - discrimination laws shall constitute a finding by the City that Provider has violated the anti - discrimination provisions of Agreement.

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c. The parties agree that in the event Provider violates any of the anti-discrimination provisions of this paragraph, the City shall be entitled, at its option, to the sum of $500.00 pursuant to California Civil Code Section 1671 as liquidated damages in lieu of canceling, terminating, or suspending this Agreement.
d. Provider hereby agrees that it will comply with Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. Section 794), all requirements imposed by the applicable regulations, and all guidel ines and interpretations issued pursuant thereto, to the end that no qualified handicapped person shall, on the basis of handicap, be excluded from participation in, be denied the benefits of, or otherwise be subjected to discrimination under any program or activity of Provider receiving Federal Financial Assistance. In addition, Provider shall comply with the Uniform Federal Accessibility Standards, and Provider, Engineer, or Architect responsible for any design, construction or alteration shall certify compliance with those Standards. e. Provider’s attention is directed to laws, including but not limited to:

A. CIVIL RIGHTS/EQUAL OPPORTUNITY
(i) Civil Rights Act of 1964. Under Title VII of the Civil Rights Act of 1964, no person shall, on the grounds of race, sex, religion, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance. (ii) Section 109 of the Housing and Community Development Act of 1974. No person in the United States shall, on the grounds of race, color, national origin, or sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with funds made available under this title. (iii) Section 109 of the Act further provides that any prohibition against discrimination on the basis of age under the Age Discrimination Act of 1975 (42 U.S.C. 6101 et seq.) or with respect to an otherwise qualified handicapped individual as provided in Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) shall also apply to any program or activity funded in whole or in part with funds made available pursuant to the Act.

B. PROGRAM ACCESSIBILITY FOR INDIVIDUALS WITH

DISABILITIES
This Agreement is subjec t to laws and regulations concerning the rights of otherwise qualified individuals with handicaps for equal participation in, and benefit from federally assisted programs and activities, including but not limited to:
(i) Americans with Disabilities Act of 1990 (ADA) (28 C.F.R. 35).

Title II, Subpart A of the Americans with Disabilities Act of 1990 applies to all publicly funded activities and programs. Provider shall also comply with the public accommodations requirements of Title III of the ADA, as applicable.
(ii) Nondiscrimination on the Basis of Handicap (24 C .F.R. 8). These regulations, which implement Section 504 of the Rehabilitation Act of 1973, as amended, and as DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA

Five Keys Schools and Programs 13 Version 12-01-21
cited in Section 109 of the Housing and Community Development Act, apply to all federally assisted activities and programs and are implemented through the regulations at 24 C.F.R. 8. (iii) Architectural Barrier Act of 1968. Any building or facility, excluding privately owned residential structures, designed, constructed, or altered with federal funds, shall comply with the Uniform Federal Accessibility Standards, 1984 (41 C.F.R. 3) and the Handicapped Accessibility Requirements of the State of California Title 24. The Consultant, Engineer or Architect responsible for such design, construction or alter ation shall certify compliance with the above standards.
(iv) In resolving any conflict between the accessibility standards cited in paragraphs (i), (ii) and (iii) above, the more stringent standard shall apply.

31. RESTRICTIONS ON LOBBYING – FEDERAL REQUIREMENT:

This Agreement is subject to 24 C.F.R. 87 which prohibits the payment of Federal funds to any person for influencing or attempting to influence, any public officer or employee in connection with the award, making, entering into, extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or agreement.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA Five Keys Schools and Programs 14 Version 12-01-21
IN WITNESS WHEREOF, the parties have each caused this Agreement to be duly executed on its behalf as of the Effective Date.

IVE KEYS SCHOOLS AND PROGRAMS CITY OF ALAMEDA
a California nonprofit public benefit corporation a municipal corporation Steve Good Nancy Bronstein
Executive Director Interim City Manager
R

ECOMMENDED FOR APPROVAL
Delia Ginorio
Treasurer
L isa Nelson Maxwell
Community Development Director
AP
PROVED AS TO FORM:

City Attorney
L en Aslanian
Assistant City Attorney
DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA

Certification of Compliance
With the City of Alameda’s Vaccination Requirement
The City of Alameda (“City”) requires all individuals who perform work for the City to be fully vaccinated1 against COVID-19. All service providers and contractors for the City must sign the following statement certifying compliance with this requirement.

By signing below, I certify that all of our personnel who are performing work for the City are fully vaccinated against COVID-19. I also acknowledge that the City reserves the right to review any relevant records to demonstrate our compliance with this requirement.

I declare under penalty of perjury that the foregoing is true and correct.

FIVE KEYS SCHOOLS AND PROGRAMS Date:______________________ __________________________________
By: Steve Good
Its: Chief Executive Officer
1 For the purposes of this Certification of Compliance, an individual is considered to be fully vaccinated if two weeks have passed since their second dose in a 2-dose series (such as the Pfizer or Moderna vaccines) or if two weeks have passed since receiving their single-dose vaccine (such as Johnson & Johnson’s Janssen vaccine).

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C 9/29/2022
DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA Exhibit A
Scope of Services to be provided by Five Keys Schools and Programs (“Provider”) at Dignity Village, 2350 5th Street, City of Alameda

I. Purpose

Five Keys Schools and Programs will provide property management, operations, and support services for Dignity Village. The goals of these services are: to provide Dignity Village residents with barrier removal case management and housing navigation services so that they can obtain permanent housing; to promote community building and tenant participation in pro-social activities; and to maintain a safe, supportive, and stable environment that fosters independence.

II. Served Population

The Provider shall serve currently homeless adults, including couples, and families who fall within the shelter’s target guest ratio of 80% chronically homeless individuals, 20% homeless individuals, and five set aside beds for youth, unless otherwise specified by the City of Alameda. An adult is defined as an individual 18 years old or older without the custody of minors below 18 years of age. Couples consist of two adult individuals who are married, in a domestic partnership, or who can provide documentation of an established partnership. Families are defined as adults and their dependent children.

III. Referral and Prioritization

All residents will be referred by the Alameda County Coordinated Entry System (CES), whose intake process assesses potential residents to determine housing need and prioritizes placement in its Homeless Management Information System (HMIS) based on criteria such as health vulnerability, homelessness history, and housing barriers.

Five Keys will work with CES staff and Alameda service providers to ensure that individuals experiencing homelessness in Alameda City are prioritized for placement at Dignity Village. Five Keys will ensure newly admitted guests match CES assessment criteria, are enrolled in HMIS, and follow program funding program guidelines as determined by 24 CFR Part 578.3.

IV. Description of Services

The below deception of services is for 1) Support Services and 2) Property Management:

1) The Provider shall provide Support Services to program participants who reside in up to 47 units at Dignity Village during the term of this contract. Support Services shall be available to all tenants of the building. Support Services shall include, but are not limited to the following:

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA A. Outreach: The Provider shall actively engage with participants to provide information about available Support Services and invite them to participate. Outreach methods shall include in-person interactions, written messages, phone calls, voicemail, and emails, as available and appropriate to reach individual participants.

B. Intake and Assessment: The Provider shall coordinate the initial intake with incoming residents referred by CES. Housing navigators shall attempt to coordinate with an incoming participant’s current Case Manager(s) (e.g., for those who are currently receiving services from other providers) to ensure a warm hand-off and transition into interim housing. This may include an exchange of information about challenges the participant is experiencing and/or and current services being accessed in the community. New arrivals will be provided with an orientation of services available on site.

C. Housing-Focused Case Management: The Provider’s Housing Navigators shall provide client-centered, intensive case management for participants to establish housing goals, develop Individualized Service Plans, and track progress toward achieving those goals. The Provider shall document case management meetings, engagement, and status of participants to ensure they are receiving the support they need to obtain permanent housing.

Housing Navigators will follow Housing First principles, including those outlined in the California Department of Housing and Community Development’s Housing First Guidance Checklist created for the Homekey Round 2. The Provider offers immediate housing for individuals sent to us through coordinated entry and provides them a recovery based safe housing environment that promotes self-determination and choice for each person. The Provider offers individual support as well as developing community within the program to encourage social engagement among the residents/guests.

D. Benefits Advocacy and Assistance: The Provider shall assist participants with obtaining or maintaining benefits. The Provider shall provide referrals for and solve problems preventing a participant’s enrollment in county, state, and federal benefits programs. The Provider may help participants identify, apply for, and establish appointments for available services such as cash aid, food programs, medical, mental health clinics, and/or in-home support.

E. Referrals and Coordination of Services: The Provider shall help participants identify and access services available within the community that meet specific needs or support progress toward identified goals. This may include providing information about services, calling to help establish appointments, assisting with applications, providing appointment reminders, following up/checking in with participants regarding the process, and, as necessary, re-referral. The Provider shall also communicate and coordinate with outside service providers and mental health clinics to support existing linkages that participants may have. The Provider shall provide service coordination for guests in collaboration with community-based case managers and county medical staff, county mental health staff, and substance use treatment programs, as applicable.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA

F. Wellness Checks: The Provider shall conduct wellness checks to assess a participant’s safety when there is a reason to believe the participant is at immediate and substantial risk due to a medical and/or psychiatric emergency.

H. Support Groups, Social Events and Organized Activities:
1) The Provider shall provide participants with opportunities to participate in organized gatherings for peer support, to gain information from presenters and each other, to form social connections with other participants and staff, or to celebrate significant individual, holiday, and community events. These events may be planned with or based on input from participants and shall be held on site at least once per week. The Provider shall post and provide participants with a monthly calendar of events. When appropriate, events should be open to all Dignity Village residents.
2) The Provider shall conduct monthly community meetings for participants during which participants may discuss concerns and program ideas with the Provider. 3) The Provider shall provide appropriate programming for the population served, including access to college and career counseling, and access to Five Keys’ high school programming.

I. Security:
1) The Provider shall provide conflict-resolution and de-escalation services to ensure the safety of all on site.
2) The Provider shall conduct safety checks upon each entry to ensure weapons are not brought into the housing facility and only people who are authorized to do so may enter the property.
3) The Provider shall maintain emergency contacts for residents and maintain a resident incident report log.
4) Security services shall be provided seven (7) days per week, 24 hours per day at Dignity Village.

J. Laundry, Transportation, Meals:
1) The Provider shall provide laundry facilities for linens and personal clothing of residents.
2) The Provider shall provide a minimum of two meals per day, including one hot meal and additional snacks.
3) The Provider shall oversee and coordinate resident transportation as needed.

K. Supervision: The Provider shall ensure that on-site Support Services staff have access to bi-monthly case conferencing and ongoing supervision. This allows staff to provide appropriate housing-focused case management, counseling and referral services to participants with emerging and ongoing mental health issues.

L. Exit Planning and After-Care Services: If a participant is moving out of Dignity Village, the Provider shall outreach to the participant to engage in exit planning and support the participant’s successful transition out of the program. The exit plan shall DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA depend on the participant’s needs and preferences but may include establishing a link to outpatient case management as well as access to services in the community. The Provider shall provide and/or coordinate aftercare services following a participant’s exit from the program for up to 90 days or as indicated by participant need.

2) The Provider shall provide Property Management to tenants residing in 47 units. Property Management services shall include, but are not limited to, the following:

A. Building Service Payment: The Provider shall set up and manage utility accounts and services related to the property, including but not limited to communications, alarms/security, fire alarm monitoring, garbage, water, and pest control.

B. Building Maintenance: The Provider shall maintain the facility in sanitary and operable condition, post protocol and forms for resident requests for maintenance or repairs, and respond to requests in a timely manner. Building maintenance shall include the following services:
1) Janitorial services in common areas, offices, and any shared-use restroom and shower facilities;
2) Regular removal of garbage/trash from designated trash areas and maintenance of these areas as clean and functional;
3) Pest control services, as needed;
4) Maintenance and repair of facility systems, plumbing, electrical, safety issues; 5) Building security, and;
6) Preparation of units for resident move-in and move-out.

C. Front Desk Coverage: The Provider shall provide front desk coverage 24 hours per day, seven days a week.

V. Location and Time of Services

The Provider shall provide support services at the Dignity Village, located at 2350 5th Street, Alameda, CA. The Provider shall provide supportive services Monday through Friday, during posted business hours. The Provider may also provide services evenings and weekends, and at other times when necessary to best serve participants.

The Provider shall provide property management services 24 hours per day, seven days a week, at Dignity Village.

VI. Service Requirements

A. Language and Interpretation Services; Recognition of Specific Populations’ needs:
1) The Provider shall ensure that interpreter and translation services are available to address the needs of those within the served population who primarily speak language(s) other than English.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 2) The Provider will ensure site staff are trained in trauma-informed, culturally sensitive approaches; de-escalation strategies; and needs of LGBTQ+ individuals, seniors, and people with mental health, mobility, or cognitive disabilities.
3) Residents with disabilities will have equitable access to living spaces, communal areas, and emergency exits, with features such as ramps, doorknobs, lights, and table heights retrofitted to ensure compliance with ADA. The Provider helps guests access wheelchairs or other needed medical equipment, and/or repair services.

B. Health Screening and Certifications: The Provider shall obtain and maintain all required staff health screenings and certifications required by law.

C. Substance Use Disorder, and Physical and Mental Health Supports: The Provider will work with partners to provide screenings for guests in need of physical health support, and make referrals for guests desiring support for Substance Use Disorder. The Provider will screen guests for need of Mental Health Support services.

1) The Provider will staff the site with a 1.0 FTE mental health professional to ensure residents are receiving needed health care, to connect with county service providers, and to assist with crisis interventions. 2) The Provider will make referrals for mental health services to county service providers and county contractors. Alameda County Behavioral Health Care Services offers linkages to mental health support through its ACCESS Program, for mental health and substance use services. Medi-Cal Managed Care Plans (MCPs) and Primary Care Providers (PCP) provide mental health services for mild to moderate impairments. Those with moderate-severe impairment will receive specialty mental health services through ACBHCS. The county behavioral health program also offers the I-HOT (In-Home Outreach Team) that provides engagement and linkage for people with severe mental illness at their place of residence.
3) The Provider will partner with Alameda County Behavioral Health Services, along with a number of county agencies, to support access to substance use treatment services for clients. The Provider will connect people to programs based on an individual’s specific needs and circumstances. The Provider values harm reduction and self- determination in connecting clients to substance use services and will support a client to find a program that best meets their needs, whether it is in-patient, outpatient, one- time, or ongoing.
4) The Provider will partner with Alameda County Healthcare for the Homeless (ACHCH) Shelter Health, which brings services including health screenings, assessment and connecting patients with appropriate services and care. In addition, the Provider will work to enroll all eligible guests in Medical/Medicare health insurance plans with primary care doctors and other medical services as needed. In the case of a guest experiencing an emergency, 911 will be called.

ACHCH uses partner organizations for primary care, including Trust Health Center, LifeLong Medical Care, La Clinicia de la Raza, Eastmont Wellness, DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA Highland Wellness, Hayward Wellness, Bay Area Community Health Center, Axis Community Health, and Newark Wellness. For dental coverage, ACHCH works with OnSite Dental Foundation, LA Clinica de la Raza, and Highland Hospital Dental Clinic.
5) Five Keys will establish formal collaborations with Alameda-based government and non-profit service providers, to increase access to resources for guests on and off-site. Five Keys will reach out to the following organizations to explore partnership and collaboration: Alameda Boys & Girls Club; Alameda Family Services; Alameda Fire Department; Alameda Point Collaborative; Building Futures for Women and Children; Christ Episcopal Church; Dine & Connect; Operation Dignity; Village of Love.

D. Case Conferences: The Provider shall initiate and participate in individual case conferences and team coordination meetings with Alameda County Housing and Community Development Department homeless service providers, as needed, to coordinate and collaborate regarding participants’ progress.

E. Grievance Procedure: The Provider shall establish and maintain a written Grievance Procedure for participants, which shall include the following elements, as well as others that may be appropriate to the services:

1) The name or title of the person or persons authorized to make a determination regarding the grievance;
2) The opportunity for the aggrieved party to discuss the grievance with those who will be making the determination;
3) The amount of time required for each step, including when a participant can expect a response

The Provider shall, at program entry, review and provide a copy of this procedure, and any amendments, to each participant and obtain a signed copy of the form from the participant, which must be maintained in the participant’s file. Additionally, the Provider shall post the policy at all times.

F. Feedback, Complaint and Follow-up Policies: The Provider shall provide means for participants to provide input into the program, including the effectiveness and satisfaction. Feedback methods shall include:

1) A written process informing the participants on how to request services, submit complaints or provide feedback. Feedback forms will be available at the front desk and can be submitted anonymously. Feedback will be tracked in a database and reviewed by the Site Manager, Five Keys; Deputy Director of Guest Services, and other involved personnel. When participants provide their name on feedback forms, staff will respond directly to the person submitting a feedback form.
2) A written bi-annual survey, in which participants can participate anonymously, will be offered to participants to gather feedback, satisfaction, and assess the DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA effectiveness of services and systems within the program. The Provider shall offer assistance to participants regarding completion of the survey if the written format presents any problem. Questions include topics such as the quality of sleeping facilities, cleanliness, interactions with staff, sense of safety, quality and quantity of meals, and case management services.
3) The Provider will hold monthly community meetings during which guests and staff are able to provide feedback and offer suggestions. 4) Five Keys’ Deputy Director of Guest Services will oversee all responses to guest feedback, and coordinate with supervisors to address suggestions or concerns.

G. City Communications, Trainings and Meetings: The Provider shall keep The City of Alameda informed of program operations and comply with City of Alameda policies including, but not limited to:

1) Regular communication to City of Alameda about the implementation of the program;
2) Attendance at all meetings as required by the City of Alameda.

H. Coordination with Other Service Providers: The Provider shall maintain a good working relationship with other service providers involved in program operations to ensure communication and coordination that supports program goals.

1) The Provider will extend services available to Five Keys Schools and Programs program participants to Dignity Village residents. These programs include:
a) Participation in Five Keys’ High School diploma and GED prep, adult basic education, digital literacy, Career Technical Education, college and career counseling programs that link students to on-campus counseling and support programs within the Peralta College system, including College of Alameda. b) Connections to Five Keys’ employment partners, including Firebrand Artisan Bread in Alameda, which provides workforce training and employment; and Cypress Mandela Training Center.
c) Referrals to other service providers, such as Bay Area Legal Aid, Bay Area Community Services-BACS (case management, emergency financial assistance, supportive services, and legal representation), The Open House List for Bay Area LGBTQ+ Seniors, Berkeley Food & Housing Project, Catholic Charities (rent deposit support), Elevate Community Center (legal and financial assistance); Fremont Family Resource Center which provides free online financial navigation to all Alameda County residents; East Bay SPCA; Alameda Boys & Girls Club; Alameda Family Services; Alameda Food Bank; Alameda Point Collaborative; Building Futures for Women and Children; Alameda Fire Department, Christ Episcopal Church; Dine & Connect; Operation Dignity; Village of Love.

2) The Provider will establish service relationships with Alameda County Behavioral Health, Alameda County Healthcare for the Homeless, and other county service providers.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA

3) Five Keys will reach out to College of Alameda to establish a partnership MOU for outreach to Dignity Village for enrollment opportunities and for Five Keys’ high school students to have dual enrollment opportunities.

I. Disaster and Emergency Response Plan: The Provider shall develop and maintain an Agency Disaster and Emergency Response Plan and train all employees regarding the provisions of the plan.

J. Staff training: The Provider will provide all on-site staff with training aligned with Housing First, Person-Centered Practice, Trauma-Informed Care, and Equal Access/Racial Equity at the time of onboarding, and during annual professional development sessions.

K. Good Neighbor Policies: The Provider shall maintain a good relationship with the neighborhood by:

1) Collaborating with neighbors and relevant city agencies to ensure that neighborhood concerns about the facility are heard and addressed; 2) Providing written materials to the surrounding neighborhood that includes instructions for contacting program staff to resolve issues that do not require emergency services;
3) Maintaining a 24-hour telephone number that can be used by the community to report issues;
4) Having management staff available to respond to neighbors within 24 hours, if reasonable, or sooner, if urgent;
5) Having a representative of Provider attend all appropriate neighborhood meetings;
6) Setting behavioral expectations for site participants, including standards for their pets; active discouragement of loitering in the area surrounding the building; and promptly addressing problems with participants, as needed; 7) Providing daily cleaning – staff to ensure the perimeter and immediate surrounding area is clean and safe;
8) Participating in any and all community engagement activities, meeting, groups, advisory meetings, including problem solving around issues that may arise; 9) Reporting to City regarding community concerns and how they are addressed; and
10) Forming an Advisory Group, led by Site Manager. Advisory Group will include neighborhood residents and local businesses, the greater Alameda Community, partner agencies, people who have experienced homelessness, and City of Alameda officials. The Advisory Group will meet quarterly to review the operations and provide input and feedback from an external perspective to help inform program practices and consider impact on the surrounding community.

Minutes will be taken and shared with all Advisory Group members. Discussions will influence the way services are delivered at Dignity Village, and the way the site engages with the community.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA

L. Record Keeping and Reporting: The Provider shall maintain confidential participant files that document the services and supportive work provided for the purpose of tracking and reporting objectives and outcomes. The Provider shall provide resident tracking and submit any special or additional reports and documentation requested by City or County financial or program monitors. The Provider shall comply with applicable reporting and documentation requirements of county, state, and federal agencies as a condition of funding.

Any information shared between the Provider and other providers about the served population shall be communicated in a secure manner, with appropriate release of consent forms and in compliance with Health Insurance Portability and Accountability Act (HIPAA) and privacy guidelines.

M. Site Staffing: The Provider will provide at the following staffing:
• Site Manager 1.0 FTE
• Housing Navigator/Case Manager 2.85 FTE
• Ambassadors 7.4 FTE
• Activities Coordinator 1.0 FTE
• Janitor 1.4 FTE
• Contracted Mental Health Specialist 1.0 FTE
DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA Dignity Village HomeKey
Supportive Services Budget
Provided By Five Keys Schools and Programs
9/26/2022*
2/1/2023 -
6/30/2023
7/1/2023 -
6/30/2024
7/1/2024-
6/30/2025
7/1/2025 -
6/30/2026
7/1/2026 -
6/30/2027
7/1/2027-
1/31/2028
2/1/2023-
1/31/2028
TOTAL INCOME 807,847$ 2,016,282$ 2,096,933$ 2,180,810$ 2,268,037$ 1,375,936$ 10,745,844$

EXPENDITURES
TOTAL SALARIES AND BENEFITS 442,433$ 1,104,312$ 1,148,484$ 1,194,424$ 1,242,201$ 753,602$ 5,885,455$

OPERATING
Total Utilities 35,167$ 87,776$ 91,287$ 94,939$ 98,736$ 59,900$ 467,804$ Total Supplies $ 13,654 33,995$ 35,355$ 36,769$ 38,240$ 23,233$ 181,245$ Total Contracts 20,167$ 50,336$ 52,349$ 54,443$ 56,621$ 34,350$ 268,267$ Garbage and Trash Removal 10,667$ 26,624$ 27,689$ 28,797$ 29,948$ 18,169$ 141,893$ HVAC Maintenance 6,250$ 15,600$ 16,224$ 16,873$ 17,548$ 10,646$ 83,141$ Misc Operating/Unit Turns 24,479$ 61,100$ 63,544$ 66,086$ 68,729$ 41,696$ 325,634$ Property and Liability Insurance 2,917$ 7,280$ 7,571$ 7,874$ 8,189$ 4,968$ 38,799$ Total Other Supportive Services 178,667$ 445,952$ 463,790$ 482,342$ 501,635$ 304,325$ 2,376,711$ TOTAL OPERATING EXPENDITURES 291,966$ 728,663$ 757,810$ 788,122$ 819,647$ 497,287$ 3,883,494$ INDIRECT COST 73,440$ 183,297$ 190,629$ 198,255$ 206,185$ 125,089$ 976,895$ TOTAL EXPENDITURES (Salaries and Operating) $ 807,839 2,016,272$ 2,096,923$ 2,180,800$ 2,268,032$ 1,375,978$ 10,745,844$ *as described in further in that certain Supportive Services Budget Provide by Five Keys dated 9/26/22.

Exhibit B
DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA Attachment A
Core Principles
Housing First
According
to the webinar Core Principles of Housi ng First and Rapid Re-Housing issued by HUD and the Unites States In teragency Council on Homelessness (USICH), the Housing First approach is based on the following principles:

1. Housing is safe and affordable;

2. All people can achieve housing stability in permanent housing; supports may look different;

3. Everyone is “housing ready”; and

4. Improved quality of life, health, mental health, and employm ent can be achieved through housing.

Harm Reduction
Harm reduction policies, procedur es, and practices aim to reduc e the negative consequences of behaviors that are detrimental to the participant’s health and well-being (i.e., abuse of drugs and/or alcohol, failure to be medicati on compliant, engaging in crimin al activity, prostitution, choosing to sleep outside, etc.). In housing settings, harm reduction is intended to prevent a participant’s loss of housing and/or termination from the program based solel y on his or her inability to stop engaging in harmful behaviors.

Programs incorporating a harm reduction model must utilize all interventions possible, short of termination from the program, to enable the participant to reduce or minimize their risky behaviors, while at the same time assisting them to move into and become s tabilized in permanent housing.

Harm reduction is not intended to prevent the termination of a participant whose actions or behavior constitute a threat to the safety of other participants and staff. Organizations must develop a set of policies and procedures to be implemented in the event of such behavior on the part of a participant.

Trauma-Informed Care
Trauma-informed care requires that every part of the program’s design and operation be approached with an understanding of trauma and the impact it ha s on those receiving services.

Traumatic experiences can impact how clients receive services p rovided and the environment in which those services are delivered.

Establishing a safe and supportive environment are principal aspects of trauma-informed care. To do so, a program must ensure th at all staff receive training on traumatic stress and its impact, as well as the relationship between trauma and mental health, subs tance use, and homelessness.

Training should detail how working with trauma survivors can impact staff, and how these issues can impact their work. Staff training in crisis management may include learning how to help clients identify triggers, express their feelings safely, use healthy c oping skills, in addition to helping clients develop safety and self-care plans prior to a crisis.

Cultural Competency, Racial Equity, and Inclusivity
This program must consider cultural and linguistic competency, racial equity, gender inclusivity, DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA and other intersecting factors in addressing the needs of popul ations to be served. Subpopulation identities may include, but are not limited to, race and ethnicity, gender and gender identity, sexual orientation, economic class, age, family status, language spoken and understood, physical and mental disabilities, living situation, etc. Proposers must demonstrate the capacity to accommodate special populations within the proposer’s general population (i.e., youth, LGBT, disabled clients, veterans, victims of domestic v iolence) throughout all levels o f the organization, from organizational vision and mission statement, to policy implemen tation, and to service delivery procedures and philosophies. The Safe Parking Program requires, at a minimum, effective communication, including, among other things, the provision of service and information in appropriate language, at appropria te educational and literacy levels, and in the context of the individual’s cultural identity.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA

November xx, 2021
Version: 2.0
Coronavirus State and Local Fiscal Recovery Funds
Compliance and Reporting Guidance
1 ted ieethe due
ADD cover page
August 15, 2022
Version: 4.2
Attachment B
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Coronavirus State and Local Fiscal Recovery Funds
Guidance on Recipient Compliance and Reporting
Responsibilities
On March 11, 2021, the American Rescue Plan Act was signed into law, and established the Coronavirus State Fiscal Recovery Fund and Coronavirus Local Fiscal Recovery Fund, which together make up the Coronavirus State and Local Fiscal Recovery Funds (“SLFRF”) program. This program is intended to provide support to State, territorial, local, and Tribal governments in responding to the economic and public health impacts of COVID-19 and in their efforts to contain impacts on their communities, residents, and businesses.

In May 2021, Treasury published the interim final rule (“IFR”) describing eligible and ineligible uses of SLFRF, as well as other program requirements. The initial versions of this Compliance and Reporting guidance reflected the IFR and its eligible use categories. On January 6, 2022, the U.S. Department of the Treasury (“Treasury”) adopted the final rule implementing the SLFRF program. The final rule became effective on April 1, 2022. Prior to the final rule effective date, the IFR remained in effect; funds used consistently with the IFR while it was in effect were in compliance with the SLFRF program.

However, recipients could choose to take advantage of the final rule’s flexibilities and simplifications ahead of the effective date. Recipients may consult the Statement Regarding Compliance with the Coronavirus State and Local Fiscal Recovery Funds Interim Final Rule and Final Rule for more information on compliance with the IFR and the final rule.

To support recipients in complying with the final rule, this reporting guidance reflects the final rule and provides additional detail and clarification for each recipient’s compliance and reporting responsibilities under the SLFRF program, and should be read in concert with the Award Terms and Conditions, the authorizing statute, the final rule, other program guidance including the Final Rule FAQs, and other regulatory and statutory requirements, including regulatory requirements under the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance” or 2 CRF Part 200), and 2021 SLFRF Compliance Supplement – Technical Update and 2022 SLFRF Compliance Supplement. Please see the Assistance Listing in SAM.gov under assistance listing number (formerly known as CFDA number) 21.027 for more information.

Please Note: This guidance document applies to the SLFRF program only and does not change or impact reporting and compliance requirements for the Coronavirus Relief Fund (“CRF”) established by the CARES Act.

This guidance includes two parts:

Part 1: General Guidance
This section provides an orientation to recipients’ compliance responsibilities and Treasury’s expectations and recommends best practices where appropriate under the SLFRF program.

A. Key Principles……………………..……………………………………………………. P. 4
B. Statutory Eligible Uses…………………………………………………………………. P. 4 C. Treasury’s Final Rule……………………………………………………….………… P. 5 D. Uniform Guidance (2 CFR Part 200)……………..…………………………………… P. 7 E. Award Terms and Conditions………………………………...………………………... P. 11 Coronavirus State and Local Fiscal Recovery Funds
Compliance and Reporting Guidance
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Part 2: Reporting Requirements
This section provides information on the reporting requirements for the SLFRF program.

A. Interim Report…...…………………………………………………………………...…. P. 16 B. Project and Expenditure Report…………….…………………………………...……. P. 17 C. Recovery Plan Performance Report..………………..……………………….….…… P. 34 Appendix 1: Expenditure Categories…………………………………………………….…… P. 42 Appendix 2: Evidenced-Based Intervention Additional Information…………………….…. P. 47 Appendix 3: Expenditure Categories under the Interim Final Rule……………………….. P. 48 OMB Control Number: 1505-0271
OMB Expiration Date: 04/30/2025

PAPERWORK REDUCTION ACT NOTICE
The information collected will be used for the U.S. Government to process requests for support. The estimated burden for the collections of information included in this guidance is as follows: 30 minutes for Title VI Assurances, 2 hours per response for the Interim Report, 6 hours per response for the Project and Expenditure Report and 100 hours per response for the Recovery Plan Performance Report (if applicable). Comments concerning the accuracy of this burden estimate and suggestions for reducing this burden should be directed to the Office of Privacy, Transparency and Records, Department of the Treasury, 1500 Pennsylvania Ave., N.W., Washington, D.C. 20220. DO NOT send the form to this address. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid control number assigned by OMB.

Coronavirus State and Local Fiscal Recovery Funds
Compliance and Reporting Guidance
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Part 1: General Guidance
This section provides an orientation on recipients’ compliance responsibilities and Treasury’s expectations and recommended best practices where appropriate under the SLFRF program.

Recipients under the SLFRF program are the eligible entities identified in sections 602 and 603 of the Social Security Act as added by section 9901 of the American Rescue Plan Act of 2021 (the “SLFRF statute”) that receive an SLFRF award. Subrecipients under the SLFRF program are entities that receive a subaward from a recipient to carry out the purposes (program or project) of the SLFRF award on behalf of the recipient.

Recipients are accountable to Treasury for oversight of their subrecipients in accordance with 2 CFR 200.332, including ensuring their subrecipients comply with the SLFRF statute, SLFRF Award Terms and Conditions, Treasury’s interim final rule and final rule, applicable federal statutes, regulations, and reporting requirements.

A. Key Principles
There are several guiding principles for developing your own effective compliance regimes:
 Recipients and subrecipients are the first line of defense and responsible for ensuring the SLFRF award funds are not used for ineligible purposes, and there is no fraud, waste, or abuse associated with their SLFRF award;
 Many SLFRF-funded projects respond to the COVID-19 public health emergency and meet urgent community needs. Swift and effective implementation is vital, and recipients must balance facilitating simple and rapid program access widely across the community and maintaining a robust documentation and compliance regime;
 Treasury encourages recipients to use SLFRF-funded projects to advance shared interests and promote equitable delivery of government benefits and opportunities to underserved communities, as outlined in Executive Order 13985, On Advancing Racial Equity and Support for Underserved Communities Through the Federal Government; and
 Transparency and public accountability for SLFRF award funds and use of such funds are critical to upholding program integrity and trust in all levels of government, and SLFRF award funds should be managed consistent with Administration guidance per Memorandum M-21-20 and Memorandum M-20-21.

B. Statutory Eligible Uses
As a recipient of an SLFRF award, your organization has substantial discretion to use the award funds in the ways that best suit the needs of your constituents – as long as such use fits into one of the following four statutory categories:

1. To respond to the COVID-19 public health emergency or its negative economic impacts;

2. To respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible workers of the recipient that are performing such essential work, or by providing grants to eligible employers that have eligible workers who perform essential work;

3. For the provision of government services, to the extent of the reduction in revenue of such recipient due to the COVID–19 public health emergency, relative to revenues collected in the most recent full fiscal year of the recipient prior to the emergency; or

4. To make necessary investments in water, sewer, or broadband infrastructure.

Treasury adopted an interim final rule in May 2021 and the final rule on January 6, 2022 to implement these eligible use categories and other restrictions on the use of funds under the SLFRF Coronavirus State and Local Fiscal Recovery Funds
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program. The final rule took effect on April 1, 2022, and the interim final rule remained in effect until that time, although recipients could choose to take advantage of the final rule’s flexibilities and simplifications prior to April 1, 2022. Recipients may consult the Statement Regarding Compliance with the Coronavirus State and Local Fiscal Recovery Funds Interim Final Rule and Final Rule for more information on compliance with the interim final rule and the final rule.

It is the recipient’s responsibility to ensure all SLFRF award funds are used in compliance with the program’s requirements. In addition, recipients should be mindful of any additional compliance obligations that may apply – for example, additional restrictions imposed upon other sources of funds used in conjunction with SLFRF award funds, or statutes and regulations that may independently apply to water, broadband, and sewer infrastructure projects. Recipients should ensure they maintain proper documentation supporting determinations of costs and applicable compliance requirements, and how they have been satisfied as part of their award management, internal controls, and subrecipient oversight and management.

C. Treasury’s Final Rule
Treasury’s final rule details recipients’ compliance responsibilities and provides additional information on eligible and restricted uses of SLFRF award funds and reporting requirements.

1. Eligible and Restricted Uses of SLFRF Funds. As described in the SLFRF statute and summarized above, there are four enumerated eligible uses of SLFRF award funds. As a recipient of an award under the SLFRF program, your organization is responsible for complying with requirements for the use of funds. In addition to determining a given project’s eligibility, recipients are also responsible for determining subrecipient’s or beneficiaries’ eligibility, and must monitor subrecipients’ use of SLFRF award funds.

To help recipients build a greater understanding of eligible uses, Treasury’s final rule establishes a framework for determining whether a specific project would be eligible under the SLFRF program, including some helpful definitions. For example, Treasury’s final rule establishes:
 A framework for determining whether a project responds to the COVID-19 public health emergency or its negative economic impacts;
 Definitions of “eligible employers,” “essential work,” “eligible workers,” and “premium pay” for cases where premium pay is an eligible use;
 The option to select between a standard amount of revenue loss or complete a full revenue loss calculation of revenue lost due to the COVID-19 public health emergency;  A framework for necessary water and sewer infrastructure projects that aligns eligible uses with projects that are eligible under the Environmental Protection Agency’s Drinking Water and Clean Water State Revolving Funds along with certain additional projects, including a wider set of lead remediation and stormwater infrastructure projects and aid for residential wells; and
 A framework for necessary broadband projects that allows for projects that are designed to provide service of sufficient speeds to eligible areas, as well as an affordability requirement for providers that provide service to households.

Treasury’s final rule also provides more information on important restrictions on use of SLFRF award funds, including that recipients other than Tribal governments may not deposit SLFRF funds into a pension fund; and recipients that are States or territories may not use SLFRF funds to offset a reduction in net tax revenue resulting from the recipient’s change in law, regulation, or administrative interpretation. In addition, recipients may not use SLFRF funds directly to service debt, satisfy a judgment or settlement, or contribute to a “rainy day” fund. Recipients should refer to Treasury’s final rule for more information on these restrictions.

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Treasury’s final rule outlines that funds available under the “revenue loss” eligible use category (sections 602(c)(1)(C) and 603(c)(1)(C) of the Social Security Act) generally may be used to meet the non-federal cost-share or matching requirements of other federal programs. However, the final rule notes that SLFRF funds may not be used as the non-federal share for purposes of a state’s Medicaid and CHIP programs because the Office of Management and Budget (“OMB”) has approved a waiver as requested by the Centers for Medicare & Medicaid Services pursuant to 2 CFR 200.102 of the Uniform Guidance and related regulations. If a recipient seeks to use SLFRF funds to satisfy match or cost-share requirements for a federal grant program, it should first confirm with the relevant awarding agency that no waiver has been granted for that program, that no other circumstances enumerated under 2 CFR 200.306(b) would limit the use of SLFRF funds to meet the match or cost-share requirement, and that there is no other statutory or regulatory impediment to using the SLFRF funds for the match or cost-share requirement. SLFRF funds beyond those that are available under the revenue loss eligible use category may not be used to meet the non-federal match or cost-share requirements of other federal programs, other than as specifically provided for by statute. For example, the Infrastructure Investment and Jobs Act provides that SLFRF funds may be used to meet the non-federal match requirements of authorized Bureau of Reclamation projects and certain broadband deployment projects.

2. Eligible Costs Timeframe. Your organization, as a recipient of an SLFRF award, may use SLFRF funds to cover eligible costs that your organization incurred during the period that begins on March 3, 2021 and ends on December 31, 2024, as long as the award funds for the obligations incurred by December 31, 2024 are expended by December 31, 2026. Costs for projects incurred by the recipient State, territorial, local, or Tribal government prior to March 3, 2021 are not eligible, as provided for in Treasury’s final rule.

Recipients may, in certain circumstances, use SLFRF award funds for the eligible use categories described in Treasury’s final rule for costs incurred prior to March 3, 2021.

Specifically,
a. Public Health/Negative Economic Impacts: Recipients may use SLFRF award funds to provide assistance to households, small businesses, and nonprofits to respond to the public health emergency or negative economic impacts of the pandemic – such as rent, mortgage, or utility assistance – for costs incurred by the beneficiary (e.g., a household) prior to March 3, 2021, provided that the recipient State, territorial, local or Tribal government did not incur the cost of providing such assistance prior to March 3, 2021. b. Premium Pay: Recipients may provide premium pay retrospectively for work performed at any time since the start of the COVID-19 public health emergency. Such premium pay must be “in addition to” wages and remuneration already received and the obligation to provide such premium pay must not have been incurred by the recipient prior to March 3, 2021. c. Revenue Loss: Recipients have broad discretion to use funds for the provision of government services to the extent of reduction in revenue. While calculation of lost revenue is based on the recipient’s revenue in the last full fiscal year prior to the COVID-19 public health emergency, use of funds for government services must be forward looking for costs incurred by the recipient after March 3, 2021.
d. Investments in Water, Sewer, and Broadband: Recipients may use SLFRF award funds to make necessary investments in water, sewer, and broadband infrastructure. Recipients may use SLFRF award funds to cover costs incurred for eligible projects planned or started prior to March 3, 2021, provided that the project costs covered by the SLFRF award funds were incurred by the recipient after March 3, 2021.

Any funds not obligated or expended for eligible uses by the timelines above must be returned to Treasury, including any unobligated or unexpended funds that have been provided to subrecipients and contractors as part of the award closeout process pursuant to 2 C.F.R. 200.344(d). For the purposes of determining expenditure eligibility, Treasury’s final rule provides Coronavirus State and Local Fiscal Recovery Funds
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that “incurred” means the recipient has incurred an obligation, which has the same meaning given to “financial obligation” in 2 CFR 200.1.

3. Reporting. Generally, recipients must submit one initial Interim Report, quarterly or annual Project and Expenditure reports which include subaward reporting, and in some cases annual Recovery Plan reports. Treasury’s final rule and Part 2 of this guidance provide more detail around SLFRF reporting requirements.

4. Expenditure Categories. Treasury’s final rule provides greater flexibility and simplicity for recipients to fight the pandemic and support families and businesses struggling with its impacts, maintain vital services amid revenue shortfalls, and build a strong, resilient, and equitable recovery. As such, recipients report on a broader set of eligible uses and associated Expenditure Categories (“EC”), which began with the April 2022 Project and Expenditure Report. Appendix 1 includes the new ECs, as well as a reference to previous ECs used for reporting under the interim final rule.

Assistance Listing
The Assistance Listing for the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) was published May 28, 2021 on SAM.gov under Assistance Listing Number (“ALN”), formerly known as CFDA Number, 21.027.

The assistance listing includes helpful information including program purpose, statutory authority, eligibility requirements, and compliance requirements for recipients. The ALN is the unique 5-digit number assigned to identify a federal assistance listing, and can be used to search for federal assistance program information, including funding opportunities, spending on USASpending.gov, or audit results through the Federal Audit Clearinghouse.

To expedite payments and meet statutory timelines Treasury issued initial payments under an existing ALN, 21.019, assigned to the CRF. If you have already received funds or captured the initial number in your records, please update your systems and reporting to reflect the new ALN 21.027 for the SLFRF program. Recipients must use ALN 21.027 for all financial accounting, subawards, and associated program reporting requirements for the SLFRF awards.

D. Uniform Administrative Requirements
The SLFRF awards are generally subject to the requirements set forth in the Uniform Guidance. In all instances, your organization should review the Uniform Guidance requirements applicable to your organization’s use of SLFRF funds, and SLFRF-funded projects. Additional details about applicability of certain provisions of the Uniform Guidance may be found in:
 SLFRF final rule;
 SLFRF Assistance Listing; and
 SLFRF Final Rule FAQs, including FAQ 4.9, 10.1, and Section 13.

The following sections provide a general summary of your organization’s compliance responsibilities under applicable statutes and regulations, including the Uniform Guidance, as described in the most recent compliance supplement issued by OMB. Note that the descriptions below are only general summaries and all recipients and subrecipients are advised to carefully review the Uniform Guidance requirements and any additional regulatory and statutory requirements applicable to the program.

1. Allowable Activities. Each recipient should review program requirements, including Treasury’s final rule and the recipient’s Award Terms and Conditions, to determine and record eligible uses Coronavirus State and Local Fiscal Recovery Funds
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of SLFRF funds. Per 2 CFR Part 200.303, your organization must develop and implement effective internal controls to ensure that funding decisions under the SLFRF award constitute eligible uses of funds, and document determinations.

2. Allowable Costs/Cost Principles. As outlined in the Uniform Guidance at 2 CFR Part 200, Subpart E regarding Cost Principles, allowable costs are based on the premise that a recipient is responsible for the effective administration of Federal awards, application of sound management practices, and administration of Federal funds in a manner consistent with the program objectives and terms and conditions of the award. Recipients must implement robust internal controls and effective monitoring to ensure compliance with the Cost Principles, which are important for building trust and accountability. Please note that as outlined in Final Rule FAQ 13.15, only a subset of the Uniform Guidance requirements at 2 CFR Part 200 Subpart E (Cost Principles) applies to recipients’ use of funds in the revenue loss eligible use category.

SLFRF funds may be, but are not required to be, used along with other funding sources for a given project. Recipients should note that SLFRF funds available under the “revenue loss” eligible use category generally may be used to meet the non-federal cost-share or matching requirements of other federal programs. If a recipient seeks to use SLFRF funds to satisfy match or cost-share requirements for a federal grant program, the recipient should first confirm with the relevant awarding agency that no waiver has been granted for that program, that no other circumstances enumerated under 2 CFR 200.306(b) would limit the use of SLFRF funds to meet the match or cost-share requirement, and that there is no other statutory or regulatory impediment to using the SLFRF funds for the match or cost-share requirement. For instance, recipients should note that SLFRF funds may not be used as the non-federal share for purposes of a state’s Medicaid and CHIP programs because the OMB has approved a waiver from this provision as requested by the Centers for Medicare & Medicaid Services pursuant to 2 CFR 200.102 of the Uniform Guidance and related regulations.

SLFRF funds beyond those that are available under the revenue loss eligible use category may not be used to meet the non-federal match or cost-share requirements of other federal programs, other than as specifically provided for by statute. As an example, the Infrastructure Investment and Jobs Act provides that SLFRF funds may be used to meet the non-federal match requirements of authorized Bureau of Reclamation projects and certain broadband deployment projects.

Recipients should consult the final rule for further details if they seek to utilize SLFRF funds as a match for these projects.

Treasury’s final rule, program guidance, and the Uniform Guidance outline the types of costs that are allowable, including certain audit costs. For example, per 2 CFR 200.425, a reasonably proportionate share of the costs of audits required by the Single Audit Act Amendments of 1996 are allowable; however, costs for audits that were not performed in accordance with 2 CFR Part 200, Subpart F and the Compliance Supplement are not allowable. Please see 2 CFR Part 200, Subpart E regarding the Cost Principles for more information. a. Administrative costs: Recipients may use funds for administering the SLFRF program, including costs of consultants to support effective management and oversight, including consultation for ensuring compliance with legal, regulatory, and other requirements.1 Further, costs must be reasonable and allocable as outlined in 2 CFR 200.404 and 2 CFR 200.405.

Pursuant to the SLFRF Award Terms and Conditions, recipients are permitted to charge both direct and indirect costs to their SLFRF award as administrative costs as long as they are accorded consistent treatment per 2 CFR 200.403. Direct costs are those that are identified specifically as costs of implementing the SLFRF program objectives, such as 1 Recipients also may use SLFRF funds directly for administrative costs to improve the design and execution of programs responding to the COVID-19 pandemic and to administer or improve the efficacy of programs addressing the public health emergency or its negative economic impacts. 31 CFR 35.6(b)(3)(ii)(E)(3).

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contract support, materials, and supplies for a project. Indirect costs are general overhead costs of an organization where a portion of such costs are allocable to the SLFRF award such as the cost of facilities or administrative functions like a director’s office.23 Each category of cost should be treated consistently in like circumstances as direct or indirect, and recipients may not charge the same administrative costs to both direct and indirect cost categories, or to other programs. If a recipient has a current Negotiated Indirect Costs Rate Agreement (“NICRA”) established with a Federal cognizant agency responsible for reviewing, negotiating, and approving cost allocation plans or indirect cost proposals, then the recipient may use its current NICRA. Alternatively, if the recipient does not have a NICRA, the recipient may elect to use the de minimis rate of 10 percent of the modified total direct costs pursuant to 2 CFR 200.414(f).
b. Salaries and Expenses: In general, certain employees’ wages, salaries, and covered benefits are an eligible use of SLFRF award funds. Please see Treasury’s final rule for details.

3. Cash Management. SLFRF payments made to recipients are not subject to the requirements of the Cash Management Improvement Act and Treasury’s implementing regulations at 31 CFR Part 205 or 2 CFR 200.305(b)(8)-(9).

As such, recipients can place funds in interest-bearing accounts, do not need to remit interest to Treasury, and are not limited to using that interest for eligible uses under the SLFRF award.

4. Eligibility. Under this program, recipients are responsible for ensuring funds are used for eligible purposes. Generally, recipients must develop and implement policies and procedures, and retain records, to determine and monitor implementation of criteria for determining the eligibility of beneficiaries and/or subrecipients. Your organization, and if applicable, the subrecipient(s) administering a program on behalf of your organization, will need to maintain procedures for obtaining information evidencing a given beneficiary, subrecipient, or contractor’s eligibility, including a valid SAM.gov registration (except with respect to individuals or households for which a SAM.gov registration is not required). Implementing risk-based due diligence for eligibility determinations is a best practice to augment your organization’s existing controls.

5. Property Management. Any purchase of real or personal property with SLFRF funds must be consistent with the Uniform Guidance at 2 CFR Part 200, Subpart D, unless stated otherwise by Treasury. For example, as outlined in Final Rule FAQ 13.15, only a subset of the Uniform Guidance requirements at 2 CFR Part 200 Subpart D (Post Federal Award Requirements) applies to recipients’ use of funds in the revenue loss eligible use category. Furthermore, as outlined in Final Rule FAQ 13.16, Treasury has clarified the use and disposition requirements for real and personal property, supplies, and equipment purchased with SLFRF funds.

6. Matching, Level of Effort, Earmarking. There are no matching, level of effort, or earmarking compliance responsibilities associated with the SLFRF award. See Section C.1 (Eligible and Restricted Uses of SLFRF Funds) for a discussion of restrictions on use of SLFRF funds. Please see 2. Allowable Costs/Cost Principles above for information on the use of SLFRF funds for non- Federal match or cost-sharing requirements in other Federal programs.

7. Period of Performance. Your organization should also develop and implement internal controls related to activities occurring outside the period of performance. All funds remain subject to statutory and regulatory requirements that they must be used for costs incurred by the recipient during the period that begins on March 3, 2021, and ends on December 31, 2024, and that award funds for the financial obligations incurred by December 31, 2024 must be expended by December 2 2 CFR 200.413 Direct Costs.
3 2 CFR 200.414 Indirect Costs.

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31, 2026. Any funds not used must be returned to Treasury as part of the award closeout process pursuant to 2 C.F.R. 200.344(d).

8. Procurement, Suspension & Debarment. Recipients are responsible for ensuring that any procurement using SLFRF funds, or payments under procurement contracts using such funds, are consistent with the procurement standards set forth in the Uniform Guidance at 2 CFR 200.317 through 2 CFR 200.327, unless stated otherwise by Treasury. As outlined in Final Rule FAQ

13.15, only a subset of the Uniform Guidance requirements at 2 CFR Part 200 Subpart D (Post Federal Award Requirements) applies to recipients’ use of funds in the revenue loss eligible use category. The procurement standards set forth in the Uniform Guidance at 2 CRF 200.317 through 2 CRF 200.327 are not included in Final Rule FAQ 13.15’s list of applicable Subpart D requirements that apply to recipients’ use of funds in the revenue loss eligible use category.

The Uniform Guidance establishes in 2 CFR 200.319 that all procurement transactions for property or services must be conducted in a manner providing full and open competition, consistent with standards outlined in 2 CFR 200.320, which allows for non-competitive procurements only in certain circumstances. Recipients must have and use documented procurement procedures that are consistent with the standards outlined in 2 CFR 200.317 through 2 CFR 200.320. The Uniform Guidance, pursuant to 2 CFR 180, requires an infrastructure for competitive bidding and contractor oversight, including maintaining written standards of conduct and prohibitions on dealing with suspended or debarred parties. Your organization must ensure adherence to all applicable local, State, and federal procurement laws and regulations.

9. Program Income. Generally, program income includes, but is not limited to, income from fees for services performed, the use or rental of real or personal property acquired under Federal awards, and principal and interest on loans made with Federal award funds. Program income does not include interest earned on advances of Federal funds, rebates, credits, discounts, or interest on rebates, credits, or discounts. Recipients of SLFRF funds should calculate, document, and record the organization’s program income. Additional controls that your organization should implement include written policies that explicitly identify appropriate allocation methods, accounting standards and principles, compliance monitoring checks for program income calculations, and records.

The Uniform Guidance outlines the requirements that pertain to program income at 2 CFR 200.307. Treasury has clarified in its Final Rule FAQs that recipients may add program income to the Federal award. Any program income generated from SLFRF funds must be used for the purposes and under the conditions of the Federal award. Further, Final Rule FAQ 4.9 provides additional information about program income requirements applicable to certain eligible uses, and Final Rule FAQ 13.15 clarifies that only a subset of the Uniform Guidance requirements at 2 CFR 200 Subpart D (Post Federal Award Requirements) applies to recipients’ use of funds in the revenue loss eligible use category. The list of applicable Subpart D requirements in Final Rule FAQ 13.15 does not include the program income requirements in 2 CFR 200.307.

10. Reporting. All recipients of federal funds must complete financial, performance, and compliance reporting as required and outlined in Part 2 of this guidance. Expenditures may be reported on a cash or accrual basis, as long as the methodology is disclosed and consistently applied. Reporting must be consistent with the definition of expenditures pursuant to 2 CFR 200.1. Your organization should appropriately maintain accounting records for compiling and reporting accurate, compliant financial data, in accordance with appropriate accounting standards and principles.

In addition, where appropriate, your organization needs to establish controls to ensure completion and timely submission of all mandatory performance and/or compliance reporting. See Part 2 of this guidance for a full overview of recipient reporting responsibilities.

Consolidated jurisdictions or other types of jurisdictions that received multiple SLFRF allocations Coronavirus State and Local Fiscal Recovery Funds
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(e.g., a county and city with a consolidated government) are only required to file once per reporting period, and such reports will cover the total SLFRF allocations received by the jurisdiction. This includes Non-entitlement units of local government (“NEUs”) and/or Units of general local government located within counties that are not units of general local government. In addition, the total SLFRF allocations across all sources for a given jurisdiction will be used to identify that jurisdiction’s Reporting Tier.

11. Subrecipient Monitoring. SLFRF recipients that are pass-through entities as described under 2 CFR 200.1 are required to manage and monitor their subrecipients to ensure compliance with requirements of the SLFRF award pursuant to 2 CFR 200.332 regarding requirements for pass- through entities.

First, your organization must clearly identify to the subrecipient: (1) that the award is a subaward of SLFRF funds; (2) any and all compliance requirements for use of SLFRF funds; and (3) any and all reporting requirements for expenditures of SLFRF funds.

Next, your organization will need to evaluate each subrecipient’s risk of noncompliance based on a set of common factors. These risk assessments may include factors such as prior experience in managing Federal funds, previous audits, personnel, and policies or procedures for award execution and oversight. Ongoing monitoring of any given subrecipient should reflect its assessed risk and include monitoring, identification of deficiencies, and follow-up to ensure appropriate remediation.

Accordingly, your organization should develop written policies and procedures for subrecipient monitoring and risk assessment and maintain records of all award agreements identifying or otherwise documenting subrecipients’ compliance obligations.

Recipients should note that NEUs are not subrecipients under the SLFRF program. They are SLFRF recipients that report directly to Treasury.

Recipients should also note that subrecipients do not include individuals and organizations that received SLFRF funds as end users. Such individuals and organizations are beneficiaries and not subject to audit pursuant to the Single Audit Act and 2 C.F.R. Part 200, Subpart F.

Many recipients may choose to provide a subaward or contract to other entities to provide services to other end users. For example, a recipient may provide a subaward to a nonprofit to provide homeless services to individuals experiencing homelessness. In this case, the subaward to a nonprofit is based on the services that the recipient intends to provide (assistance to households experiencing homelessness), and the nonprofit is serving as the subrecipient, providing services on behalf of the recipient. Subrecipients are subject to an audit pursuant to the Single Audit Act and 2 CFR part 200, subpart F regarding audit requirements, whereas contractors are not subject to an audit pursuant to the Single Audit Act and 2 CFR part 200, subpart F regarding audit requirements.

Please note that as outlined in Final Rule FAQ 13.14, recipients’ use of funds in the revenue loss eligible use category does not give rise to subrecipient relationships. As a result, subaward reporting is not required for projects in the revenue loss eligible use category.

12. Special Tests and Provisions. From time-to-time, Treasury may issue subregulatory guidance as well as frequently asked questions.

Across each of the compliance requirements above, Treasury has described some best practices for development of internal controls in Table 1 below, with an example of each best practice.

Coronavirus State and Local Fiscal Recovery Funds
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Table 1: Internal controls best practices
Best Practice Description Example
Written policies and
procedures
Formal documentation of
recipient policies and
procedures
Documented procedure for
determining worker eligibility
for premium pay
Written standards of
conduct
Formal statement of
mission, values, principles,
and professional standards
Documented code of
conduct / ethics for
subcontractors
Risk-based due diligence Pre-payment validations
conducted according to an
assessed level of risk
Enhanced eligibility review
of subrecipient with
imperfect performance
history
Risk-based compliance
monitoring
Ongoing validations
conducted according to an
assessed level of risk
Higher degree of monitoring
for projects that have a
higher risk of fraud, given
program characteristics
Record maintenance and
retention
Creation and storage of
financial and non-financial
records.

Storage of all subrecipient
payment information.

E. Award Terms and Conditions
The Award Terms and Conditions of the SLFRF financial assistance agreement sets forth the compliance obligations for recipients pursuant to the SLFRF statute, the Uniform Guidance, Treasury’s final rule, and applicable federal laws and regulations. Recipients should ensure they remain in compliance with all Award Terms and Conditions. These obligations include the following items in addition to those described above:

1. SAM.gov Requirements. All eligible recipients are required to have an active registration with the System for Award Management (“SAM”) (https://www.sam.gov) pursuant to 2 CFR Part 25.

To ensure timely receipt of funding, Treasury has stated that NEUs who have not previously registered with SAM.gov may do so after receipt of the award, but before the submission of mandatory reporting.4

2. Recordkeeping Requirements. Generally, your organization must maintain records and financial documents for five years after all funds have been expended or returned to Treasury, as outlined in paragraph 4.c. of the Award Terms and Conditions. Treasury may request transfer of records of long-term value at the end of such period. Wherever practicable, such records should be collected, transmitted, and stored in open and machine-readable formats.

Your organization must agree to provide or make available such records to Treasury upon request, and to the Government Accountability Office (“GAO”), Treasury’s Office of Inspector General (“OIG”), and their authorized representative in order to conduct audits or other investigations.

3. Single Audit Requirements. Recipients and subrecipients that expend more than $750,000 in Federal awards during their fiscal year will be subject to an audit under the Single Audit Act and its implementing regulation at 2 CFR Part 200, Subpart F regarding audit requirements.5 Note that the Compliance Supplement provides information on the existing, important compliance requirements that the federal government expects to be considered as a part of such audit. For example, the SLFRF Compliance Supplement describes an alternative to the Single Audit for 4 See flexibility provided in https://www.whitehouse.gov/wp-content/uploads/2021/03/M_21_20.pdf . 5 For-profit entities that receive SLFRF subawards are not subject to Single Audit requirements. However, they are subject to other audits as deemed necessary by authorized governmental entities, including Treasury and Treasury’s OIG.

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eligible recipients. Recipients should consult the Compliance Supplement for more information about the alternative compliance examination engagement. The Compliance Supplement is routinely updated, and is made available in the Federal Register and on OMB’s website:
https://www.whitehouse.gov/omb/office-federal-financial-management/ Recipients and subrecipients should consult the Federal Audit Clearinghouse to see examples of Single Audit submissions.

4. Civil Rights Compliance. Recipients of Federal financial assistance from the Treasury are required to meet legal requirements relating to nondiscrimination and nondiscriminatory use of Federal funds. Those requirements include ensuring that entities receiving Federal financial assistance from the Treasury do not deny benefits or services, or otherwise discriminate on the basis of race, color, national origin (including limited English proficiency), disability, age, or sex (including sexual orientation and gender identity), in accordance with the following authorities:

Title VI of the Civil Rights Act of 1964 (Title VI) Public Law 88-352, 42 U.S.C. 2000d-1 et seq., and the Department's implementing regulations, 31 CFR part 22; Section 504 of the Rehabilitation Act of 1973 (Section 504), Public Law 93-112, as amended by Public Law 93-516, 29 U.S.C. 794; Title IX of the Education Amendments of 1972 (Title IX), 20 U.S.C. 1681 et seq., and the Department's implementing regulations, 31 CFR part 28; Age Discrimination Act of 1975, Public Law 94-135, 42 U.S.C. 6101 et seq., and the Department implementing regulations at 31 CFR part 23.

In order to carry out its enforcement responsibilities under Title VI of the Civil Rights Act, Treasury will collect and review information from recipients to ascertain their compliance with the applicable requirements before and after providing financial assistance. Treasury’s implementing regulations, 31 CFR part 22, and the Department of Justice (DOJ) regulations, Coordination of Non-discrimination in Federally Assisted Programs, 28 CFR part 42, provide for the collection of data and information from recipients (see 28 CFR 42.406). Treasury may request that non-tribal recipients submit data for post-award compliance reviews, including information such as a narrative describing their Title VI compliance status. As explained in Treasury FAQ 12.1, the award terms and conditions for Treasury’s pandemic recovery programs, including the SLFRF program, do not impose antidiscrimination requirements on Tribal governments beyond what would otherwise apply under federal law.

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Part 2: Reporting Guidance
There are three types of reporting requirements for the SLFRF program. The report requirements are approved and documented under OMB PRA number - OMB # 1505-0271.  Interim Report: Provide initial overview of status and uses of funding. This is a one-time report.

See Section A, page 16.
 Project and Expenditure Report: Report on projects funded, expenditures, and contracts and subawards equal to or greater than $50,000, and other information. See Section B, page 17.  Recovery Plan Performance Report: The Recovery Plan Performance Report (the “Recovery Plan”) will provide information on the projects that large recipients are undertaking with program funding and how they plan to ensure program outcomes are achieved in an effective, efficient, and equitable manner. It will include key performance indicators identified by the recipient and some mandatory indicators identified by Treasury. The Recovery Plan will be posted on the website of the recipient as well as provided to Treasury. See Section C, page 28.

The reporting threshold is based on the total award amount allocated by Treasury under the SLFRF program, not the funds received by the recipient as of the time of reporting.

States and territories are also required to submit information on their distributions to NEUs. Please refer to Section D for additional details.

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Table 2: Reporting requirements by recipient type
Tier Recipient Interim Report
Project and
Expenditure
Report
Recovery Plan
Performance
Report
1 States, U.S. territories,
metropolitan cities and
counties with a
population that exceeds
250,000 residents
By August 31,
2021 or 60
days after
receiving
funding if
funding was
received by
October 15,
with
expenditures by
category.

Note: NEUs
were not
required to
submit an
Interim Report
By January 31,
2022, and then the
last day of the
month after the end
of each quarter
thereafter
Note: NEUs were
not required to
submit a Project
and Expenditure
Report on January
31, 2022. The first
reporting date for
NEUs was April 30,
2022.

By August 31,
2021 or 60 days
after receiving
funding, and
annually
thereafter by
July 31
2 Metropolitan cities and
counties with a
population below
250,000 residents that
are allocated more than
$10 million in SLFRF
funding, and NEUs that
are allocated more than
$10 million in SLFRF
funding
3 Tribal Governments that
are allocated more than
$30 million in SLFRF
funding
4 Tribal Governments that
are allocated less than
$30 million in SLFRF
funding
By April 30, 2022,
and then annually
thereafter
5 Metropolitan cities and
counties with a
population below
250,000 residents that
are allocated less than
$10 million in SLFRF
funding, and NEUs that
are allocated less than
$10 million in SLFRF
funding
Note: Based on the period of performance, reports will be collected through April 30, 2027. See the specific due dates listed in Sections B and C.

As mentioned above, the total SLFRF allocations across all sources for a given jurisdiction will be used to identify that jurisdiction’s Reporting Tier, beginning in April of 2022. Treasury may reach out to jurisdictions to update Reporting Tiers.

The remainder of this document describes these reporting requirements. User guides describing how and where to submit required reports are posted at www.treasury.gov/SLFRPReporting and updated on a regular basis.

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Comparison to reporting for the CRF
This guidance does not change the reporting or compliance requirements pertaining to the CRF. Reporting and compliance requirements for the SLFRF are separate from CRF reporting requirements. Differences between CRF and SLFRF include:
 Project, Expenditure, and Subaward Reporting: The SLFRF reporting requirements leverage the existing reporting regime used for CRF to foster continuity and provide many recipients with a familiar reporting mechanism. The data elements for the Project and Expenditure Report will largely mirror those used for CRF, with some minor exceptions noted in this guidance. The users’ guide will describe how reporting for CRF funds will relate to reporting for the SLFRF.  Timing of Reports: CRF reports were due within 10 days of each calendar quarter end. For quarterly reporters, SLFRF reporting will be due the last day of the month following the end of the period covered. For annual reporters, SLFRF reporting will be due on an annual schedule (see table in Section B below).  Program and Performance Reporting: The CRF reporting did not include any program or performance reporting. To build public awareness and accountability and allow Treasury to monitor compliance with eligible uses, some program and performance reporting is required for SLFRF.

A. Interim Report
Note: The Interim Reports were submitted under the interim final rule.

States, U.S. territories, metropolitan cities, counties, and Tribal governments were required to submit a one-time interim report with expenditures6 by Expenditure Category covering the period from March 3rd to July 31, 2021, by August 31, 2021 or sixty (60) days after first receiving funding if the recipient’s date of award was between July 15, 2021 and October 15, 2021. The recipient was required to enter obligations7 and expenditures and, for each, select the specific expenditure category from the available options. See Appendix 3 for Expenditure Categories applicable for the Interim Report.

1. Required Programmatic Data
Recipients were also required to provide the following information if they had or planned to have expenditures in the following Expenditure Categories.
a. Revenue replacement (EC 6.18): Key inputs into the revenue replacement formula in the Interim Final Rule and estimated revenue loss due to the Covid-19 public health emergency calculated using the formula in the Interim Final Rule as of December 31, 2020.  Base year general revenue (e.g., revenue in the last full fiscal year prior to the public health emergency)
 Fiscal year end date
 Growth adjustment used (either 4.1 percent or average annual general revenue growth over 3 years prior to pandemic)
 Actual general revenue as of the twelve months ended December 31, 2020 6 For purposes of reporting in the SLFRF portal, an expenditure is the amount that has been incurred as a liability of the entity (the service has been rendered or the good has been delivered to the entity). 7 For purposes of reporting in the SLFRF portal, an obligation is an order placed for property and services, contracts and subawards made, and similar transactions that require payment. 8 See Appendix 3 for the full Expenditure Category (EC) list. Please note that Appendix 3 includes the expenditure categories under the interim final rule, applicable to the Interim Report.

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 Estimated revenue loss due to the Covid-19 public health emergency as of December 31, 2020
 An explanation of how revenue replacement funds were allocated to government services (Note: additional instructions was provided in the user guide) In calculating general revenue and the other items discussed above, recipients should have used audited data if it was available. When audited data was not available, recipients were not required to obtain audited data if substantially accurate figures could be produced on an unaudited basis. Recipients should have used their own data sources to calculate general revenue and did not need to rely on revenue data published by the Census Bureau. Treasury acknowledges that due to differences in timing, data sources, and definitions, recipients’ self- reported general revenue figures may differ from those published by the Census Bureau.

Recipients were permitted to provide data on a cash, accrual, or modified accrual basis, provided that recipients are consistent in their choice of methodology throughout the covered period and until reporting is no longer required. Recipients’ reporting should align with their own financial reporting.

In calculating general revenue, recipients should have excluded all intergovernmental transfers from the federal government. This includes, but is not limited to, federal transfers made via a State to a locality pursuant to the CRF or SLFRF. To the extent federal funds are passed through States or other entities or intermingled with other funds, recipients should have attempted to identify and exclude the federal portion of those funds from the calculation of general revenue on a best-efforts basis.

Consistent with the broad latitude provided to recipients to use funds for government services to the extent of reduction in revenue, recipients were required to submit a description of services provided. This description may be in narrative or in another form, and recipients were encouraged to report based on their existing budget processes and to minimize administrative burden. For example, a recipient with $100 in revenue replacement funds available could indicate that $50 were used for law enforcement operating expenses and $50 were used for pay-go building of sidewalk infrastructure. As discussed in the interim final rule, these services can include a broad range of services but may not be used directly for pension deposits or debt service.

Reporting requirements did not require tracking the indirect effects of Fiscal Recovery Funds, apart from the restrictions on use of Fiscal Recovery Funds to offset a reduction in net tax revenue. In addition, recipients were required to indicate that Fiscal Recovery Funds were not used to make a deposit in a pension fund.

B. Project and Expenditure Report
All recipients are required to submit Project and Expenditure Reports.

Note on NEUs: To facilitate reporting, each NEU will need an NEU Recipient Number. This is a unique identification code for each NEU assigned by the State or territory to the NEU as part of its request for funding.

1. Quarterly Reporting
The following recipients are required to submit quarterly Project and Expenditure Reports:
 States and U.S. territories
 Tribal governments that are allocated more than $30 million in SLFRF funding  Metropolitan cities and counties with a population that exceeds 250,000 residents Coronavirus State and Local Fiscal Recovery Funds
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 Metropolitan cities and counties with a population below 250,000 residents that are allocated more than $10 million in SLFRF funding and NEUs that are allocated more than $10 million in SLFRF funding.

For these recipients, the initial quarterly Project and Expenditure Report covers three calendar quarters from March 3, 2021 to December 31, 2021 and was required to be submitted to Treasury by January 31, 2022. The subsequent quarterly reports will cover one calendar quarter and must be submitted to Treasury by the last day of the month following the end of the period covered. Quarterly reports are not due concurrently with applicable annual reports. Table 3 summarizes the quarterly report timelines:

Table 3: Quarterly Project and Expenditure Report Timeline Report Year Quarter Period Covered Due Date
1 2021 2 – 4 March 3 – December 31 January 31, 2022
2 2022 1 January 1 – March 31 April 30, 2022
3 2022 2 April 1 – June 30 July 31, 2022
4 2022 3 July 1 – September 30 October 31, 2022
5 2022 4 October 1 – December 31 January 31, 2023
6 2023 1 January 1 – March 31 April 30, 2023
7 2023 2 April 1 – June 30 July 31, 2023
8 2023 3 July 1 – September 30 October 31, 2023
9 2023 4 October 1 – December 31 January 31, 2024
10 2024 1 January 1 – March 31 April 30, 2024
11 2024 2 April 1 – June 30 July 31, 2024
12 2024 3 July 1 – September 30 October 31, 2024
13 2024 4 October 1 – December 31 January 31, 2025
14 2025 1 January 1 – March 31 April 30, 2025
15 2025 2 April 1 – June 30 July 31, 2025
16 2025 3 July 1 – September 30 October 31, 2025
17 2025 4 October 1 – December 31 January 31, 2026
18 2026 1 January 1 – March 31 April 30, 2026
19 2026 2 April 1 – June 30 July 31, 2026
20 2026 3 July 1 – September 30 October 31, 2026
21 2026 4 October 1 – December 31 April 30, 2027

2. Annual Reporting
The following recipients are required to submit annual Project and Expenditure Reports:
 Tribal governments that are allocated less than $30 million in SLFRF funding  Metropolitan cities and counties with a population below 250,000 residents that are allocated less than $10 million in SLFRF funding and NEUs that are allocated less than $10 million in SLFRF funding.

For these recipients, the initial Project and Expenditure Report covered from March 3, 2021 to March 31, 2022 and was required to be submitted to Treasury by April 30, 2022. The subsequent annual reports will cover one calendar year and must be submitted to Treasury by April 30. Table 4 summarizes the annual report timelines:

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Table 4: Annual Project and Expenditure Report timeline Report Period Covered Due Date
1 March 3, 2021 – March 31, 2022 April 30, 2022
2 April 1, 2022 – March 31, 2023 April 30, 2023
3 April 1, 2023 – March 31, 2024 April 30, 2024
4 April 1, 2024 – March 31, 2025 April 30, 2025
5 April 1, 2025 – March 31, 2026 April 30, 2026
6 April 1, 2026 – December 31, 2026 April 30, 2027

3. Required Information
The following information is required in Project and Expenditure Reports for both quarterly and annual reporting:
a. Projects: Provide information on all SLFRF funded projects. Projects are defined as a grouping of closely related activities that together are intended to achieve a specific goal or are directed toward a common purpose. These activities can include new or existing eligible government services or investments funded in whole or in part by SLFRF funding. For each project, the recipient is required to enter the project name, identification number (created by the recipient), project expenditure category (see Appendix 1), description, and status of completion. Project descriptions must describe the project in sufficient detail to provide an understanding of the major activities that will occur, and must be between 50 and 250 words. Projects should be defined to include only closely related activities directed toward a common purpose. Recipients should review the Required Programmatic Data described in 3.g. below and define their projects at a sufficient level of granularity.

Note: For each project, the recipient is asked to select the appropriate Expenditure Category based on the scope of the project (see Appendix 1). Projects should be scoped to align to a single Expenditure Category. For select Expenditure Categories, the recipient also is asked to provide additional programmatic data (described further below). b. Obligations and Expenditures: Once a project is entered the recipient will be able to report on the project’s obligations and expenditures. Recipients will be asked to report:
 Current period obligation
 Cumulative obligation
 Current period expenditure
 Cumulative expenditure
c. Project Status: Once a project is entered the recipient will be asked to report on project status each reporting period, in four categories:
 Not Started
 Completed less than 50 percent
 Completed 50 percent or more
 Completed
d. Program Income: Recipients should report the program income earned and expended to cover eligible project costs, if applicable.
e. Adopted Budget (States, U.S. territories, metropolitan cities and counties with a population that exceeds 250,000 residents only): Each state, territory and metropolitan city and county with a population that exceeds 250,000 residents will provide the budget adopted for each project by its jurisdiction associated with SLFRF funds. Treasury will use this information to better understand the intended impact, identify opportunities for outreach, and understand the recipient’s progress in program implementation. Treasury is not approving or pre-approving projects or budgets.

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 Recipients will enter the Adopted Budget based on information that exists currently in the recipient’s financial systems and the recipient’s established budget process. Treasury understands that recipients may use different budget processes. For example, a recipient may consider a project budgeted once a legislature has appropriated funds; whereas another recipient may consider a project budgeted at the moment when the funds have been obligated.
 Additional information is provided on the differences between Adopted Budget, Obligations, and Expenditures as part of the user guide posted at www.treasury.gov/SLFRPReporting. f. Project Demographic Distribution (applicable to Public Health and Negative Economic Impact ECs:

EC 1.1-2.37)– Collection began April 2022
Recognizing the disproportionate public health and negative economic impacts of the pandemic on many households, communities, and other entities, recipients must report whether certain types of projects are targeted to impacted and disproportionately impacted communities. Recipients will be asked to respond to the following:
a. What Impacted and/or Disproportionally Impacted population does this project primarily serve? Please select the population primarily served.
b. If this project primarily serves more than one Impacted and/or Disproportionately Impacted population, please select up to two additional populations served.

Recipients will select from the following options:

Public Health
Impacted
 General Public
Disproportionately Impacted
Assistance to
Households
 Low- or-moderate income
households or populations9
 Households that experienced
unemployment
 Households that experienced
increased food or housing insecurity
 Households that qualify for certain
federal programs10
 For services to address lost
instructional time in K-12 schools:
any students that lost access to in-
person instruction for a significant
period of time
 Low-income households and
populations11
 Households and populations
residing in Qualified Census Tracts
 Households that qualify for certain
federal programs12
 Households receiving services
provided by Tribal governments
 Households residing in the U.S.
territories or receiving services from
these governments
9 Low or moderate-income households and communities are those with (i) income at or below 300 percent of the Federal Poverty Guidelines for the size of the household based on the most recently published poverty guidelines by the Department of Health and Human Services (HHS) or (ii) income at or below 65 percent of the Area Median Income for the county and size of household based on the most recently published data by the Department of Housing and Urban Development (HUD).
10 For Impacted households, these programs are Children’s Health Insurance Program (“CHIP”); Childcare Subsidies through the Child Care and Development Fund (“CCDF”) Program; Medicaid; National Housing Trust Fund (“HTF”), for affordable housing programs only; Home Investment Partnerships Program (“HOME”), for affordable housing programs only.
11 Low-income households and communities are those with (i) income at or below 185 percent of the Federal Poverty Guidelines for the size of the household based on the most recently published poverty guidelines by HHS or (ii) income at or below 40 percent of Area Median Income for its county and size of household based on the most recently published data by HUD.
12 For Disproportionately Impacted households, these programs are Temporary Assistance for Needy Families (“TANF”), Supplemental Nutrition Assistance Program (“SNAP”), Free- and Reduced-Price Lunch (“NSLP”) and/or School Breakfast (“SBP”) programs, Medicare Part D Low-Income Subsidies, Supplemental Security Income (“SSI”), Head Start, Special Supplemental Nutrition Program for Women, Infants, and Children (“WIC”), Section 8 Vouchers, Low-Income Home Energy Assistance Program (“LIHEAP”), and Pell Grants.

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Impacted Disproportionately Impacted
 Other households or populations
that experienced a negative
economic impact of the pandemic
other than those listed above
(please specify)
 For services to address educational
disparities, Title I eligible schools13
 Other households or populations
that experienced a disproportionate
negative economic impact of the
pandemic other than those listed
above (please specify)
Assistance to
Small
Businesses
 Small businesses that experienced a
negative economic impact of the
pandemic
 Classes of small businesses
designated as negatively
economically impacted by the
pandemic (please specify)
 Small businesses operating in
Qualified Census Tracts
 Small businesses operated by Tribal
governments or on Tribal lands
 Small businesses operating in the
U.S. territories
 Other small businesses
disproportionately impacted by the
pandemic (please specify)
Assistance to
Non-Profits
 Non-profits that experienced a
negative economic impact of the
pandemic (please specify)
 Classes of non-profits designated as
negatively economically impacted by
the pandemic (please specify)
 Non-profits operating in Qualified
Census Tracts
 Non-profits operated by Tribal
governments or on Tribal lands
 Non-profits operating in the U.S.
territories
 Other non-profits disproportionately
impacted by the pandemic (please
specify)
Aid to Impacted  Travel, tourism, or hospitality sectors N/A Industries (including Tribal development
districts)
 Industry outside the travel, tourism,
or hospitality sectors that
experienced a negative economic
impact of the pandemic (please
specify)
g. Subawards, Contracts, Grants, Loans, Transfers, and Direct Payments: Each recipient shall also provide detailed obligation and expenditure information for any contracts and grants awarded, loans issued, transfers made to other government entities, and direct payments made by the recipient that are equal to or greater than $50,000. As noted in Treasury’s Project & Expenditure User Guides, subaward reporting for funds spent under the revenue loss eligible use category has not been required in past reporting periods. Please note that as outlined in Final Rule FAQ 13.14, Treasury is not collecting subaward data for projects categorized under the revenue loss eligible use category.

Recipients do not need to submit separate monthly subaward reports to FSRS.gov as required pursuant to the 2 CFR Part 170, Appendix A award term regarding reporting subaward and executive compensation, which is included in the SLFRF Award Terms and Conditions. Treasury 13 For educational services and other efforts to address educational disparities, Treasury will recognize Title I eligible schools as disproportionately impacted and responsive services that support the school generally or support the whole school service as eligible. “Title I eligible schools” means schools eligible to receive services under section 1113 of Title I, Part A of the Elementary and Secondary Education Act of 1965, as amended (20 U.S.C. 6313), including schools served under section 1113(b)(1)(C) of that Act.

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will submit this reporting on behalf of recipients using the $50,000 reporting threshold, timing, and data elements discussed in this guidance. If recipients choose to continue reporting to FSRS.gov in addition to reporting directly to Treasury on these funds, they may do so and will be asked to notify Treasury as part of their quarterly submission.

In general, recipients will be asked to provide the following information for each Contract, Grant, Loan, Transfer, or Direct Payment equal to or greater than $50,000:
 Subrecipient identifying and demographic information (e.g., UEI/TIN number and location)  Award number (e.g., Award number, Contract number, Loan number)  Award date, type, amount, and description
 Award payment method (reimbursable or lump sum payment(s))  For loans, expiration date (date when loan expected to be paid in full)  Primary place of performance
 Related project name(s)
 Related project identification number(s) (created by the recipient)  Period of performance start date
 Period of performance end date
 Quarterly obligation amount
 Quarterly expenditure amount
 Project(s)
 Additional programmatic performance indicators for select Expenditure Categories (see below) Aggregate reporting is required for contracts, grants, transfers made to other government entities, loans, and direct payments that are below $50,000. This information will be accounted for by Expenditure Category at the project level. Note that all obligations and expenditures made directly to individuals, regardless of dollar amount, should be included in aggregate reporting.

As required by the 2 CFR Part 170, Appendix A award term regarding reporting subaward and executive compensation, recipients must also report the names and total compensation of their five most highly compensated executives and their subrecipients’ executives for the preceding completed fiscal year if (1) the recipient received 80 percent or more of its annual gross revenues from Federal procurement contracts (and subcontracts) and Federal financial assistance subject to the Transparency Act, as provided by 2 CFR 170.320 (and subawards), and received $25,000,000 or more in annual gross revenues from Federal procurement contracts (and subcontracts) and Federal financial assistance subject to the Transparency Act (and subawards), and (2) if the information is not otherwise public. In general, most SLFRF recipients are governmental entities with executive salaries that are already disclosed, so no additional information would be required to be reported for them. The recipient is responsible for the subrecipients’ compliance with registering and maintaining an updated profile on SAM.gov. h. Civil Rights Compliance: Treasury will request information on recipients’ compliance with Title VI of the Civil Rights Act of 1964, as applicable, on an annual basis. This information may include a narrative describing the recipient’s compliance with Title VI, along with other questions and assurances. This collection does not apply to Tribal governments14 i. Ineligible Activities: Tax Offset Provision (States and territories only): Section 602(c)(2)(A) of the Social Security Act prohibits a State or territory from using SLFRF funds to directly or indirectly offset a reduction in the net tax revenue of the State or territory resulting from a change in law, regulation, or administrative interpretation during the covered period (the “Tax Offset Provision”).

The Final Rule implements the Tax Offset Provision at 31 CFR § 35.8. Violations of the Tax 14 Please note, as explained in Treasury FAQ 12.1, that the award terms and conditions for Treasury’s pandemic recovery programs, including the SLFRF, do not impose antidiscrimination requirements on Tribal governments beyond what would otherwise apply under federal law.

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Offset Provision may be subject to recoupment. The following information is required for Treasury to ensure SLFRF funding is not used for ineligible activities related to the Tax Offset Provision.

For each reporting year, in the quarterly reporting cycle occurring 90 days after the end of the recipient’s fiscal year, States and territories will report certain items related to the Tax Offset Provision, as detailed below. For example, if a recipient’s fiscal year ends June 30, 2022, reporting on the Tax Offset Provision for fiscal year 2022 will be due in October 2022. All States and territories will report on the Tax Offset Provision for fiscal year 2021 in July 2022.

As indicated in the final rule, Treasury is implementing a tiered approach to reporting on the Tax Offset Provision, which is described below. Although Treasury is implementing a tiered approach to reporting, recipients should maintain records to support their compliance with the Tax Offset Provision.

The terms “reporting year,” “baseline,” “covered change,” “covered period,” “net reduction in total spending,” and “tax revenue” are defined in the Final Rule, 31 CFR § 35.3. For purposes of calculating a net reduction in total spending, total spending for the fiscal year ending 2019 should be reported on an inflation-adjusted basis, consistent with the Final Rule. Similarly, for purposes of calculating baseline tax revenue, tax revenue for the fiscal year 2019 should be reported on an inflation-adjusted basis, consistent with the Final Rule.

For purposes of reporting actual tax revenue for the requested fiscal year and baseline tax revenue for the fiscal year ending 2019,15 (a) if available, recipients should report information using audited financials and (b) recipients may provide data on a cash, accrual, or modified accrual basis, but must be consistent in their approach across all reporting periods. Similarly, for purposes of calculating a net reduction in total spending, recipients should report data using audited financials where available.

Recipients will first answer a series of summary questions to determine the tiering of their tax offset reporting:

Summary Questions
 Do you have revenue-reducing covered change(s) to report for the requested fiscal year and for future fiscal years? Yes/No
o If no, recipients have no further reporting requirements in the tax offset section. (Remaining summary questions will be greyed out).
o If yes, recipients will complete part 1 and additional fields.  Is the aggregate value of your revenue-reducing covered change(s) for the requested fiscal year less than the de minimis? Yes/No.
o If yes, recipients will complete parts 1 and 2, and no further reporting is required in the tax offset section. (Remaining summary questions will be greyed out). o If no, recipients will complete parts 1, 2 and additional fields.  Do you have a reduction in net tax revenue for the requested fiscal year, meaning that actual tax revenue for the requested fiscal year is less than baseline tax revenue? Yes/No. o If yes, recipients will complete parts 1, 2, and 3 and additional fields. o If no, recipients will complete parts 1, 2, and 3, and no further reporting is required in the tax offset section. (Remaining summary questions will be greyed out).  Do you have revenue-increasing covered change(s) and/or covered spending cuts to report for the requested fiscal year? Yes/No
o If yes, recipients will complete parts 1, 2, 3, and 4. o If no, recipients will complete the revenue reduction cap.

Reporting Part 1: Revenue-reducing Covered Changes
15 Tax revenue for fiscal year ending 2019 is relevant for calculating the recipient’s baseline.

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 Do you have revenue-reducing covered change(s) to report for the requested fiscal year and for future fiscal years? Yes/No
o If yes, complete grid or upload spreadsheet with the name of each revenue-reducing covered change and the value of the revenue-reducing covered change for the requested fiscal year and for future fiscal years.
o If no, a recipient has no revenue-reducing covered changes to report, no additional reporting is required.
 Enter in the aggregate value of all revenue-reducing covered change(s) for the requested fiscal year.16
Revenue-reducing Covered Changes: Guidance
For each reporting year, a recipient must report the value of covered changes that the recipient predicts will have the effect of reducing tax revenue in a given reporting year (revenue-reducing covered changes), similar to the way it would in the ordinary course of its budgeting process.

The value of these revenue-reducing covered changes may be reported based on estimated values produced by a budget model, incorporating reasonable assumptions, that aligns with the recipient government’s existing approach for measuring the effects of fiscal policies, and that measures relative to a current law baseline. The revenue-reducing covered changes may also be reported based on actual values using a statistical methodology to isolate the change in year- over-year revenue attributable to the covered change(s), relative to the current law baseline prior to the change(s). Estimation approaches should not use dynamic methodologies that incorporate the projected effects of the policies on macroeconomic growth. In general and where possible, reported values should be produced by the agency of the recipient government responsible for estimating the costs and effects of fiscal policy changes. Recipients must maintain records regarding the identification and predicted effects of revenue-reducing covered changes.

Reporting Part 2: Baseline Revenue and De Minimis Threshold  Enter Baseline Revenue:
 Enter in the aggregate value of the revenue-reducing covered change(s) for the requested fiscal year as a percentage of baseline revenue:
 Is the aggregate value of the revenue-reducing covered change(s) for the requested fiscal year less than one percent of baseline revenue? Y/N
o If yes, a recipient’s aggregate value of the revenue-reducing covered changes in the reporting year is less than the de minimis threshold, and no additional reporting is required.

Baseline Revenue: Guidance
Baseline has the meaning defined in the Final Rule, 31 CFR 35.3.

Recipients must determine whether the aggregate value of the revenue-reducing covered changes in the reporting year is less than one percent of baseline revenue (the de minimis threshold).

Reporting Part 3: Actual Tax Revenue and Reduction in Net Tax Revenue  Enter Actual Tax Revenue for the requested fiscal year:
 Enter Reduction in Net Tax Revenue: baseline revenue minus actual tax revenue 16 The final rule defines covered change. “Covered change means a change in law, regulation, or administrative interpretation that reduces any tax (by providing for a reduction in a rate, a rebate, a deduction, a credit, or otherwise) or delays the imposition of any tax or tax increase. A change in law includes any final legislative or regulatory action, a new or changed administrative interpretation, and the phase-in or taking effect of any statute or rule if the phase-in or taking effect was not prescribed prior to the start of the covered period.”
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o If the value of the reduction in net tax revenue is zero or negative (meaning that actual tax revenue is equal to or greater than baseline revenue), no additional reporting is required.

Actual Tax Revenue: Guidance
Actual tax revenue means the tax revenue received by the recipient government in the reporting year. Tax revenue has the meaning defined in the Final Rule, 31 CFR 35.3.

Reduction in Net Tax Revenue: Guidance
The reduction in net tax revenue is equal to baseline revenue minus actual tax revenue in each reporting year. If this value is zero or negative, there is no reduction in net tax revenue.

Reporting Part 4: Revenue-increasing Covered Changes and Covered Spending Cuts  Do you have revenue-increasing covered change(s) and/or covered spending cuts to report for the requested fiscal year? Yes/No.
 If yes, complete grid or upload spreadsheet with the name of each revenue-increasing covered change and the value.
 Enter in the aggregate value of revenue-increasing covered change(s):
 Enter net reduction in total spending for the requested fiscal year:
 Complete grid or upload spreadsheet of specific spending cuts and the corresponding “reporting unit”, including the name of the reporting unit, description of the spending cut, the amount of the reduction in spending in the reporting unit for the reporting year relative to its inflation-adjusted FY 2019 level, the amount of any Fiscal Recovery Funds spent in the reporting unit in the reporting year, and the amount by which the reduction in spending in the reporting unit in the reporting year exceeds the Fiscal Recovery Funds spent in the reporting unit in the reporting year, if at all.
 Enter the aggregate value of covered spending cuts.
 Enter the aggregate value of revenue-increasing covered changes + the aggregate value of covered spending cuts.
 Enter the total value of revenue-reducing covered changes minus the total of (aggregate value of revenue-increasing covered changes + aggregate value of covered spending cuts).  Is the aggregate value of revenue-reducing covered changes minus the total of (aggregate value of revenue-increasing changes + aggregate value of covered spending cuts) negative or equal to zero? (Yes/No)
o If yes, recipients have no further reporting requirements related to the Tax Offset Provision.
o If no, recipients must move on to the calculation of the revenue reduction cap.

Revenue-increasing covered changes: Guidance
If a recipient has revenue-reducing covered changes, the aggregate value of which exceed the de minimis threshold, and its actual tax revenue does not exceed baseline tax revenue, a recipient must report the value of covered changes that have had or that the recipient predicts will have the effect of increasing tax revenue in a given reporting year (revenue-increasing covered changes), similar to the way it would in the ordinary course of its budgeting process.

The value of these revenue-increasing covered changes may be reported based on estimated values produced by a budget model, incorporating reasonable assumptions, that aligns with the recipient’s existing approach for measuring the effects of fiscal policies, and that measures relative to a current law baseline. The revenue-increasing covered changes may also be reported based on actual values using a statistical methodology to isolate the change in year- over-year revenue attributable to the revenue-increasing covered change(s), relative to the current law baseline prior to the change(s). Estimation approaches should not use dynamic methodologies that incorporate the projected effects of the policies on macroeconomic growth.

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In general and where possible, reporting should be produced by the agency of the recipient responsible for estimating the costs and effects of fiscal policy changes. Recipients should maintain records regarding revenue-increasing covered changes and estimates of such changes.

Net reduction in total spending, and tables of specific spending cuts: Guidance Recipients may cut spending in certain areas to pay for revenue-reducing covered changes, up to the amount of the recipient’s net reduction in total spending. To calculate the amount of spending cuts that are available to offset a reduction in tax revenue, the recipient must first consider whether there has been a reduction in total net spending, excluding Fiscal Recovery Funds (net reduction in total spending). As defined in the Final Rule, 35 CFR 35.3, net reduction in total spending is measured as the recipient government’s total spending for a given reporting year excluding Fiscal Recovery Funds, subtracted from its total spending for its fiscal year ending in 2019, adjusted for inflation using the Bureau of Economic Analysis’s Implicit Price Deflator for the gross domestic product of the United States for that reporting year. If that calculation yields a positive value, there has been a net reduction in total spending; if it yields zero or a negative value, there has not been a net reduction in total spending. If there has been no net reduction in total spending, a recipient will have no spending cuts to offset a reduction in net tax revenue.

Next, a recipient must determine and aggregate the value of spending cuts in each “reporting unit.” “Reporting units” are departments, agencies, or authorities of the recipient’s government.

For each reporting unit, the recipient must report (1) the amount of the reduction in spending in the reporting unit for the reporting year relative to its inflation-adjusted FY 2019 level, (2) the amount of any Fiscal Recovery Funds spent in the reporting unit in the reporting year, and (3) the amount by which the reduction in spending in the reporting year exceeds the Fiscal Recovery funds spent in the reporting unit in the reporting year. If a recipient has not spent amounts received from the Fiscal Recovery Funds in a reporting unit, the full amount of the reduction in spending counts as a covered spending cut and may be included in the aggregate value of spending cuts. If the recipient has spent amounts received from the Fiscal Recovery Funds, such amounts generally would be deemed to have replaced the amount of spending cut, and only reductions in spending above the amount of Fiscal Recovery Funds spent on the reporting unit would be eligible to offset a reduction in net tax revenue. Only such amounts above the amount of Fiscal Recovery Funds spent on the reporting unit should be included in the aggregate value of spending cuts.

To align with existing reporting and accounting, the Final Rule considers the department, agency, or authority from which spending has been cut and whether the recipient government has spent amounts received from the Fiscal Recovery Funds on that same department, agency, or authority. Some commenters on the interim final rule argued that the methodology for identifying offsetting spending cuts at the department, agency, or authority level was too restrictive, but as discussed in the final rule, Treasury maintained the approach of requiring this reporting at the department, agency, or authority level. Recipients are encouraged to define reporting units in a manner consistent with their existing budget process and should, to the extent possible, report using the same reporting unit in each reporting year. Spending cuts must be reported relative to FY 2019 spending levels, adjusted for inflation, and excluding Fiscal Recovery Funds from reporting year spending levels.

Recipients should maintain records regarding spending cuts.

Reporting Part 5: Revenue Reduction Cap
The “revenue reduction cap,” together with Part 3, ensures that recipient governments can use organic revenue growth to offset the cost of revenue-reducing covered changes. If, based on the calculations completed so far, a recipient has not yet demonstrated how its revenue-reducing Coronavirus State and Local Fiscal Recovery Funds
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covered changes were offset by non-SLFRF sources, the reporting portal will auto-calculate the revenue reduction cap, which will be the lesser of the following two amounts:
 Reduction in Net Tax Revenue (baseline tax revenue minus actual tax revenue) [pre- populated from Part 3] and
 Aggregate Value of revenue-reducing covered changes minus (total of (aggregate value of revenue-increasing changes + aggregate value of covered spending cuts) [pre-populated from Part 4].
j. Required Programmatic Data (other than infrastructure projects): For all projects listed under the following Expenditure Categories (see Appendix 1), the information listed must be provided in each report.

1. Public Health and Negative Economic Impact (EC 1.1-3.5) - Collection began in April 2022  Brief description of structure and objectives of assistance program(s), including public health or negative economic impact experienced
 Brief description of how a recipient’s response is related and reasonably proportional to a public health or negative economic impact of COVID-19.17 Note: The final rule presumes that all enumerated eligible uses for programs and services, including COVID-19 mitigation and prevention programs and services, are reasonably proportional responses to the harm identified unless a response is grossly disproportionate to the type or extent of harm experienced. Many of the Eligibility Categories encompass multiple specific enumerated eligible uses and may be provided to a variety of populations.

For example, EC 2.13 Healthy Childhood Environments: Services to Foster Youth or Families Involved in Child Welfare System includes a wide array of financial, educational, child development, or health supports, or other supports necessary, including supports for kinship care, and may be provided to foster youth and/or families involved in the child welfare system. Between these two fields above, recipients should provide enough information to identify the type of enumerated eligible use being provided within the EC (e.g., kinship care support services), the public health or economic impact experienced, who the program and/or service is being provided to, and what services are being provided (e.g., respite resources). For enumerated eligible uses, recipients are not required to provide substantive documentation that the response is related and reasonably proportional in the Project and Expenditure Report.

2. Capital Expenditures (EC 1.1-3.5) - Collection began in January 2022, with additional fields required starting in July 2022
 Does this project include a capital expenditure? (Collection began in January 2022)  Total expected capital expenditure, including pre-development costs, if applicable (Collection began in January 2022)
 Type of capital expenditure, based on the following enumerated uses (This field is required beginning July 2022):
 COVID-19 testing sites and laboratories, and acquisition of related equipment  COVID-19 vaccination sites
 Medical facilities generally dedicated to COVID-19 treatment and mitigation (e.g., emergency rooms, intensive care units, telemedicine capabilities for COVID-19 related treatment)
 Temporary medical facilities and other measures to increase COVID-19 treatment capacity, including related construction costs
 Acquisition of equipment for COVID-19 prevention and treatment, including ventilators, ambulances, and other medical or emergency services equipment 17 Please note that capital expenditures are not considered “programs and services” and are not presumed to be reasonably proportional responses to an identified harm except as provided in the final rule.

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 Emergency operations centers and acquisition of emergency response equipment (e.g., emergency response radio systems)
 Installation and improvement of ventilation systems in congregate settings, health facilities, or other public facilities
 Public health data systems, including technology infrastructure  Adaptations to congregate living facilities, including skilled nursing facilities, other long-term care facilities, incarceration settings, homeless shelters, residential foster care facilities, residential behavioral health treatment, and other group living facilities, as well as public facilities and schools (excluding construction of new facilities for the purpose of mitigating spread of COVID-19 in the facility)  Mitigation measures in small businesses, nonprofits, and impacted industries (e.g., developing outdoor spaces)
 Behavioral health facilities and equipment (e.g., inpatient or outpatient mental health or substance use treatment facilities, crisis centers, diversion centers)  Technology and equipment to allow law enforcement to efficiently and effectively respond to the rise in gun violence resulting from the pandemic  Affordable housing, supportive housing, or recovery housing development  Food banks and other facilities primarily dedicated to addressing food insecurity  Transitional shelters (e.g., temporary residences for people experiencing homelessness)
 Devices and equipment that assist households in accessing the internet (e.g., tablets, computers, or routers)
 Childcare, daycare, and early learning facilities
 Job and workforce training centers
 Improvements to existing facilities to remediate lead contaminants (e.g., removal of lead paint)
 Medical equipment and facilities designed to address disparities in public health outcomes (includes primary care clinics, hospitals, or integrations of health services into other settings)
 Parks, green spaces, recreational facilities, sidewalks, pedestrian safety features like crosswalks, streetlights, neighborhood cleanup, and other projects to revitalize public spaces
 Rehabilitations, renovation, remediation, cleanup, or conversions of vacant or abandoned properties
 Schools and other educational facilities or equipment to address educational disparities
 Technology and tools to effectively develop, execute, and evaluate government programs
 Technology infrastructure to adapt government operations to the pandemic (e.g., video-conferencing software, improvements to case management systems or data sharing resources), reduce government backlogs, or meet increased maintenance needs
 Other (please specify)
 For recipients (other than Tribal governments) investing in projects with total expected capital expenditures for an enumerated eligible use of $10 million or more, as well as projects with total expected capital expenditures for an “other” use of $1 million or more, provide a written justification (This field is required beginning July 2022)  For projects with total expected capital expenditures of over $10 million, provide labor reporting as outlined for infrastructure projects on pages 26 and 27 (This field is required beginning July 2022)
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3. Household Assistance (EC 2.1-2.8) – Collection began January 2022:
 Number of households served (by program if recipient establishes multiple separate household assistance programs)

4. Small Business Economic Assistance (EC 1.8, 2.29-2.33) – Collection began April 2022  Number of small businesses served (by program if recipient establishes multiple separate small business assistance programs)

5. Assistance to Non-Profits (EC 1.9, 2.34)- Collection began April 2022  Number of Non-Profits served (by program if recipient establishes multiple separate non- profit assistance programs)

6. Aid to Travel, Tourism, and Hospitality or Other Impacted Industries (EC 1.10, 2.35-2.36) – Collection began April 2022:
 If aid is provided to industries other than travel, tourism, and hospitality (EC 2.36), describe if the industry experienced at least 8 percent employment loss from pre- pandemic levels, or the industry is experiencing comparable or worse economic impacts as the national tourism, travel, and hospitality industries as of the date of the final rule, and rationale for providing aid to the industry
 For each subaward:
o Sector of employer (Note: additional detail, including list of sectors, to be provided in the user guide posted to www.treasury.gov/SLFRP)
o Purpose of funds (e.g., payroll support, safety measure implementation)

7. Education Assistance (EC 2.14, 2.24-.2.27) – Collection began in January 2022:
 The National Center for Education Statistics (“NCES”) School ID or NCES District ID. List the School District if all schools within the school district received some funds. If not all schools within the school district received funds, list the School ID of the schools that received funds. These can allow evaluators to link data from the NCES to look at school- level demographics and, eventually, student performance.18

8. Payroll for Public Health and Safety Employees (EC 3.1) – Collection began in January 2022:
 Number of government FTEs responding to COVID-19 supported under this authority

9. Rehiring Public Sector Staff (EC 3.2) – Collection began in January 2022:
 Number of FTEs rehired by governments under this authority

10. Premium Pay (both Public Sector EC 4.1 and Private Sector EC 4.2) – Collection began in January 2022; additional field began in April 2022
 List of sectors designated as critical to protecting the health and well-being of residents by the chief executive of the jurisdiction, if beyond those included in the final rule (Collection began January 2022)
 Number of workers to be served (Collection began January 2022)  Employer sector for all subawards to third-party employers (i.e., employers other than the State, local, or Tribal government) (Collection began January 2022)  For groups of workers (e.g., an operating unit, a classification of worker, etc.) or, to the extent applicable, individual workers, other than those where the eligible worker receiving premium pay is earning (with the premium pay included) below 150 percent of their residing state or county’s average annual wage for all occupations, as defined by the Bureau of Labor Statistics Occupational Employment and Wage Statistics, whichever is 18 For more information on NCES identification numbers see https://nces.ed.gov/ccd/districtsearch/ (districts) and https://nces.ed.gov/ccd/schoolsearch/ (schools).

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higher, on an annual basis; OR the eligible worker receiving premium pay is not exempt from the Fair Labor Standards Act overtime provisions:
 A brief written narrative justification of how the premium pay or grant is responsive to workers performing essential work during the public health emergency. This could include a description of the essential workers’ duties, health or financial risks faced due to COVID-19, and why the recipient government determined that the premium pay was responsive to workers performing essential work during the pandemic. This description should not include personally identifiable information; when addressing individual workers, recipients should be careful not to include this information. Recipients may consider describing the workers’ occupations and duties in a general manner as necessary to protect privacy (Collection began January 2022)
 Number of workers to be served with premium pay in K-12 schools (Collection began April 2022)

11. Revenue replacement (EC 6.1) – Collection began in August 2021:

As outlined in the final rule, recipients have the option to make a one-time decision to calculate revenue loss according to the formula outlined in the final rule or elect a “Standard Allowance” of up to $10 million, not to exceed the award allocation, to spend on government services throughout the period of performance. The option to make this one-time decision was provided during the April 30, 2022 reporting deadline.

For recipients electing the “Standard Allowance,” Treasury will presume that up to $10 million, not to exceed the award allocation, in revenue has been lost due to the public health emergency. Recipients are permitted to use that amount to fund “government services.” Please note that electing the standard allowance does not change a recipient’s total allocation. Recipients that elect to use this standard allowance will make this election instead of calculating lost revenue using the formula.

For recipients calculating revenue loss according to the formula, the final rule permits recipients to choose whether to use calendar or fiscal year calculation dates. Recipients must use the same calculation time frame (calendar or fiscal year) throughout the award period.

Recipients calculating lost revenue using the formula should report the following:
 Choice of fiscal or calendar year revenue loss (choice must remain consistent throughout award period)
 General revenue collected over the past 12 months as of the most recent calculation date, as outlined in the final rule.
 Calculated revenue loss due to the Covid-19 public health emergency; and  An explanation of how the revenue replacement funds were allocated to government services (note: additional instructions and/or template provided in the user guide posted at www.treasury.gov/SLFRPReporting).

For information on treatment of future tax changes, please see the Statement Regarding Compliance with the Coronavirus State and Local Fiscal Recovery Funds Interim Final Rule and Final Rule.
k. Required Programmatic Data for Infrastructure Projects (EC 5): For all projects listed under the Water, Sewer, and Broadband Expenditure Categories (see Appendix 1), more detailed project- level information is required. Each project will be required to report expenditure data as described above, but will also report the following information:

1. All infrastructure projects (EC 5) – Collection began in January 2022:

Coronavirus State and Local Fiscal Recovery Funds
Compliance and Reporting Guidance
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 Projected/actual construction start date (month/year)  Projected/actual initiation of operations date (month/year)  Location
 For projects over $10 million (based on expected total cost):
a. A recipient may provide a certification that, for the relevant project, all laborers and mechanics employed by contractors and subcontractors in the performance of such project are paid wages at rates not less than those prevailing, as determined by the U.S. Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code (commonly known as the “Davis-Bacon Act”), for the corresponding classes of laborers and mechanics employed on projects of a character similar to the contract work in the civil subdivision of the State (or the District of Columbia) in which the work is to be performed, or by the appropriate State entity pursuant to a corollary State prevailing-wage-in-construction law (commonly known as “baby Davis-Bacon Acts”). If such certification is not provided, a recipient must provide a project employment and local impact report detailing:
 The number of employees of contractors and sub-contractors working on the project;
 The number of employees on the project hired directly and hired through a third party;
 The wages and benefits of workers on the project by classification; and  Whether those wages are at rates less than those prevailing.19 Recipients must maintain sufficient records to substantiate this information upon request.
b. A recipient may provide a certification that a project includes a project labor agreement, meaning a pre-hire collective bargaining agreement consistent with section 8(f) of the National Labor Relations Act (29 U.S.C. 158(f)). If the recipient does not provide such certification, the recipient must provide a project workforce continuity plan, detailing:
 How the recipient will ensure the project has ready access to a sufficient supply of appropriately skilled and unskilled labor to ensure high-quality construction throughout the life of the project, including a description of any required professional certifications and/or in-house training;
 How the recipient will minimize risks of labor disputes and disruptions that would jeopardize timeliness and cost-effectiveness of the project;  How the recipient will provide a safe and healthy workplace that avoids delays and costs associated with workplace illnesses, injuries, and fatalities, including descriptions of safety training, certification, and/or licensure requirements for all relevant workers (e.g., OSHA 10, OSHA 30);
 Whether workers on the project will receive wages and benefits that will secure an appropriately skilled workforce in the context of the local or regional labor market; and
 Whether the project has completed a project labor agreement. c. Whether the project prioritizes local hires.
d. Whether the project has a Community Benefit Agreement, with a description of any such agreement.

2. Water and sewer projects (EC 5.1-5.18) Required once the project starts:
 National Pollutant Discharge Elimination System (NPDES) Permit Number (if applicable; for projects aligned with the Clean Water State Revolving Fund) (Collection began in January 2022)
19 As determined by the U.S. Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code (commonly known as the “Davis-Bacon Act”), for the corresponding classes of laborers and mechanics employed on projects of a character similar to the contract work in the civil subdivision of the State (or the District of Columbia) in which the work is to be performed.

Coronavirus State and Local Fiscal Recovery Funds
Compliance and Reporting Guidance
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 Public Water System (PWS) ID number (if applicable; for projects aligned with the Drinking Water State Revolving Fund) (Collection began January 2022)  Median Household Income of service area (Collection began in April 2022)  Lowest Quintile Income of the service area (Collection began in April 2022)

3. Broadband projects (EC 5.19-5.21) Collection includes new fields that are required beginning in July 2022 and October 2022:

Overall Project Information
 Confirm that the project is designed to, upon completion, reliably meet or exceed symmetrical 100 Mbps download and upload speeds.
o If the project is not designed to reliably meet or exceed symmetrical 100 Mbps download and upload speeds, explain why not, and
o Confirm that the project is designed to, upon completion, meet or exceed 100 Mbps download speed and between at least 20 Mbps and 100 Mbps upload speed, and be scalable to a minimum of 100 Mbps download speed and 100 Mbps upload speed.  Confirm that the service provider for the project has, or will upon completion of the project, either participated in the Federal Communications Commission (FCC)’s Affordable Connectivity Program (ACP) or otherwise provided access to a broad-based affordability program that provides benefits to households commensurate with those provided under the ACP to low-income consumers in the proposed service area of the broadband infrastructure (applicable only to projects that provide service to households).

Detailed Project Information
 Project technology type(s) (Planned/Actual)
o Fiber
o Coaxial Cable
o Terrestrial Fixed Wireless
o Other (specify)
 Total miles of fiber deployed (Planned/Actual)
 Total number of funded locations served (Planned/Actual) o Total number of funded locations served, broken out by speeds:
 Pre-SLFRF Investment:
 Number receiving 25/3 Mbps or below
 Number receiving between 25/3 Mbps and 100/20 Mbps
 Post-SLFRF Investment (Planned/Actual):
 Number receiving minimum 100/100 Mbps
 Number receiving minimum 100/20 Mbps and scalable to minimum 100/100 Mbps
o Total number of funded locations served, broken out by type (Planned/Actual):
 Residential
 Total Housing Units
 Business
 Community anchor institution
 Speed tiers offered, corresponding non-promotional prices, including associated fees, and data allowance for each speed tier of broadband service (required starting October 2022).

Location-by-Location Project Information
For each location served by a Project, the recipient must collect from the subrecipient or contractor and submit the following information to Treasury using a predetermined file format that will be provided by Treasury on the SLFRF website (required starting October 2022):
 Latitude/longitude at the structure where service will be installed Coronavirus State and Local Fiscal Recovery Funds
Compliance and Reporting Guidance
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 Technology used to offer service at the location
 Location type
o Residential
 If Residential, Number of Housing Units
o Business
o Community anchor institution
 Speed tier at the location pre-SLFRF investment
o 25/3 Mbps or below
o Between 25/3 Mbps and 100/20 Mbps
 Speed and latency at the location post-SLFRF investment o Maximum download speed offered
o Maximum download speed delivered
o Maximum upload speed offered
o Maximum upload speed delivered
o Latency
l. Additional Required Programmatic Data for States, U.S. territories, and metropolitan cities and counties with a population that exceeds 250,000 residents only: As noted in the Recovery Plan section of this guidance, states, U.S. territories, and metropolitan cities and counties with a population over 250,000 are required to provide additional data in the Project and Expenditure report for projects in the following expenditure categories:

1. Use of Evidence (for relevant ECs noted in Appendix 1)—Collection began April 2022  The dollar amount of the total project spending that is allocated towards evidence-based interventions
 Whether a program evaluation of the project is being conducted

2. Household Assistance (EC 2.2, Long-Term Housing Security (EC 2.15-2.16) and Housing Support (EC 2.17-2.18):
 Number of households receiving eviction prevention services (including legal representation)
 Number of affordable housing units preserved or developed

3. Assistance to Unemployed or Underemployed Workers (EC 2.10) and Community Violence Interventions (EC 1.11):
 Number of workers enrolled in sectoral job training programs  Number of workers completing sectoral job training programs  Number of people participating in summer youth employment programs

4. Addressing Educational Disparities (EC 2.24-2.26) and Addressing Impacts of Lost Instructional Time (EC 2.27):
 Number of students participating in evidence-based tutoring programs20

5. Healthy Childhood Environments (EC 2.11-2.14):
 Number of children served by childcare and early learning services (pre-school/pre-K/ages 3-5)
 Number of families served by home visiting
20 For more information on evidence-based tutoring programs, refer to the U.S. Department of Education’s 2021 ED COVID-19 Handbook (Volume 2), which summarizes research on evidence-based tutoring programs (see the bottom of page 20.

Coronavirus State and Local Fiscal Recovery Funds
Compliance and Reporting Guidance
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m. NEU Documentation (NEUs only): Each NEU is also required to provide the following information once its accounts are established in Treasury’s Reporting Portal and prior to the due date for their first Project and Expenditure Report (due April 30, 2022):
 Copy of the signed award terms and conditions agreement (which was signed and submitted to the State as part of the request for funding)
 Copy of the signed assurances of compliance with Title VI of the Civil Rights Act of 1964 (which was signed and submitted to the State as part of the request for funding)  Copy of actual budget documents validating the top-line budget total provided to the State as part of the request for funding
NEU accounts are established in Treasury’s Portal based on information provided by the States or territories, as further described in Section Part 2 D below.

C. Recovery Plan Performance Report
States, territories, and metropolitan cities and counties with a population that exceeds 250,000 residents (i.e., Tier 1 recipients) will also be required to publish and submit to Treasury a Recovery Plan performance report (“Recovery Plan”). Each Recovery Plan must be posted on an easily discoverable webpage on the public-facing website of the recipient by the same date the recipient submits the report to Treasury. Treasury recommends that Recovery Plans be accessible within three clicks or fewer from the homepage of the recipient’s website. Within Treasury’s reporting portal, recipients must upload a link to the publicly available Recovery Plan and provide required data.

The Recovery Plan provides the public and Treasury both retrospective and prospective information on the projects recipients are undertaking or planning to undertake with program funding and how they are planning to ensure program outcomes are achieved in an effective, efficient, and equitable manner. While this guidance outlines some minimum requirements for the Recovery Plan, each recipient is encouraged to add information to the plan that they feel is appropriate to provide information to their constituents on efforts they are taking to respond to the pandemic and promote economic recovery. Each jurisdiction may determine the general form and content of the Recovery Plan, as long as it includes the minimum information required by Treasury. Treasury provided a template (located at www.treasury.gov/SLFRP) but recipients may modify this template as appropriate for their jurisdiction, provided the modified template meets Treasury’s requirements, outlined below. Through the Recovery Plan, recipients may link to public documents, including, but not limited to, legislation, dashboards, survey results, community engagement reports, and equity frameworks to support the Recovery Plan narrative. The Recovery Plan should include key performance indicators identified by the recipient and some mandatory indicators identified by Treasury, as noted below.

The initial Recovery Plan covered the period from the date of award to July 31, 2021 and was required to be submitted to Treasury by August 31, 2021, or 60 days after receiving funding. Thereafter, the Recovery Plan will cover a 12-month period and recipients are required to submit the report to Treasury after the end of the 12-month period by July 31. The Recovery Plan should include both retrospective information covering the time period of the Recovery Plan along with prospective information on future work to be undertaken with SLFRF funds or on the planning that has been undertaken during the covered period. Table 5 summarizes the report timelines:

Table 5 Recovery Plan Timeline
Annual
Report
Period Covered Due Date
1 Award Date – July 31, 2021 August 31, 2021 or 60 days after receiving funding
2 July 1, 2021 – June 30, 2022 July 31, 2022
3 July 1, 2022 – June 30, 2023 July 31, 2023
Coronavirus State and Local Fiscal Recovery Funds
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Annual
Report
Period Covered Due Date
4 July 1, 2023 – June 30, 2024 July 31, 2024
5 July 1, 2024 – June 30, 2025 July 31, 2025
6 July 1, 2025 – June 30, 2026 July 31, 2026
7 July 1, 2026 – December 31, 2026 April 30, 2027
Recovery Plans submitted as part of reporting are used by Treasury, third party organizations, the public, and other stakeholders to obtain a comprehensive understanding of SLFRF’s largest recipients’ planned and actual usage of SLFRF funding, including the jurisdiction’s policy goals, its strategy for achieving them, and specific projects or initiatives underway. Alignment of data reported in Project and Expenditure reports and Recovery Plans is expected by both Treasury and SLFRF’s many stakeholders. Finally, Recovery Plans will be posted publicly by Treasury to provide transparency about how program funds are being used by recipient governments.

The Recovery Plan must include, at a minimum, the following information:

1. Executive Summary
In this section, recipients should provide a high-level overview of the jurisdiction’s intended and actual uses of funding including, but not limited to: the jurisdiction’s strategy, goals, and plan for using Fiscal Recovery Funds to respond to the pandemic and promote economic recovery, key outcome goals, progress to date on those outcomes, and any noteworthy challenges or opportunities identified during the reporting period.

2. Uses of Funds
In this section, recipients should describe in further detail the strategy and goals of their jurisdiction’s SLFRF program, such as how their jurisdiction’s approach would help support a strong and equitable recovery from the COVID-19 pandemic and economic downturn. Recipients should describe how their intended and actual uses of funds will achieve their goals. Given the broad eligible uses of funds established by the final rule and the specific needs of different jurisdictions, recipients should also explain how the funds would support the communities, populations, or individuals in their jurisdiction.

Recipients should describe how their use of funds supports their overall strategy and goals in the following areas:
a. Public Health (EC 1): As relevant, describe how funds are being used to respond to COVID-19, the broader health impacts of COVID-19, and the COVID-19 public health emergency, including community violence interventions and behavioral health. b. Negative Economic Impacts (EC 2): As relevant, describe how funds are being used to respond to negative economic impacts of the COVID-19 public health emergency, including services to households (such as affordable housing, job training, and childcare), small businesses, non- profits, and impacted industries.
c. Public Health-Negative Economic Impact: Public Sector Capacity (EC 3): As relevant, describe how funds are being used to support public sector workforce and capacity, including public sector payroll, rehiring of public sector workers, and building of public sector capacity. d. Premium Pay (EC 4): As relevant, describe the approach, goals, and sectors or occupations served in any premium pay program. Describe how the approach prioritizes low-income workers and/or any particular group of eligible workers.
e. Water, sewer, and broadband infrastructure (EC 5): As relevant, describe the approach, goals, and types of projects being pursued. Where relevant, recipients should note how projects contribute to addressing climate change and/or how projects benefit disadvantaged communities in line with the Justice40 Initiative.21
21 See Executive Order 14008, On Tackling the Climate Crisis at Home and Abroad and the Interim Implementation Guidance for the Justice40 Initiative, OMB M-21-28.

Coronavirus State and Local Fiscal Recovery Funds
Compliance and Reporting Guidance
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f. Revenue Replacement (EC 6): Describe the loss in revenue, including if electing the standard allowance, due to the COVID-19 public health emergency, and how funds have been used to provide government services, including any funds used under revenue loss for non-federal cost- share or matching requirements of other federal programs.

If appropriate, recipients may also include information on their jurisdiction’s use (or planned use) of other federal recovery funds, including other programs under the American Rescue Plan such as Emergency Rental Assistance, the Homeowner Assistance Fund, the Capital Projects Fund, the State Small Business Credit Initiative, and so forth, to provide broader context on the overall approach for pandemic recovery. Jurisdictions may also address use of SLFRF funds in coordination with, or in preparation for, funding available through the Infrastructure Investment and Jobs Act.

3. Promoting equitable outcomes
Treasury encourages uses of funds that advance strong, equitable growth, including economic and racial equity. For the purposes of the SLFRF, equity is described in the Executive Order 13985 On Advancing Racial Equity and Support for Underserved Communities Through the Federal Government, as issued on January 20, 2021.

In this section, recipients should describe, as applicable, their efforts to promote equitable outcomes, including economic and racial equity, and their efforts to design, implement, and measure their SLFRF program and projects with equity in mind.

In describing their efforts to design their SLFRF program and projects with equity in mind, recipients may consider the following:
a. Goals: Are there particular historically underserved, marginalized, or adversely affected groups that recipients intend to serve within their jurisdiction? b. Awareness: How equitable and practical is the ability for residents or businesses to become aware of the services funded by SLFRF?
c. Access and Distribution: Are there differences in levels of access to benefits and services across groups? Are there administrative requirements that result in disparities in ability to complete applications or meet eligibility criteria?
d. Outcomes: How are intended outcomes focused on closing gaps and/or reaching universal levels of service? How is the considering disaggregating outcomes by race, ethnicity, and other equity dimensions where relevant for the policy objective?
In describing their efforts to implement their SLFRF program and projects with equity in mind, recipients may consider the following:
a. Goals and Targets: Please describe how planned or current uses of funds prioritize economic and racial equity as a goal, name specific targets intended to produce meaningful equity results at scale, and include initiatives to achieve those targets. b. Project Implementation: In addition, please explain how the jurisdiction’s overall equity strategy translates into focus areas for SLFRF projects and the specific services or programs offered by the jurisdiction in the following Expenditure Category, as indicated in the final rule.

Negative Economic Impacts (EC 2): assistance to households, small businesses, and non- profits to address impacts of the pandemic, which have been most severe among low-income populations. This includes assistance with food, housing, and other needs; employment programs for people with barriers to employment who faced negative economic impacts from the pandemic (such as residents of low-income neighborhoods, minorities, disconnected youth, the unemployed, formerly incarcerated people, veterans, and people with disabilities); services to provide long-term housing security and housing supports, address educational disparities, or provide child care and early learning services; and other strategies that provide Coronavirus State and Local Fiscal Recovery Funds
Compliance and Reporting Guidance
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impacted and disproportionately impacted communities with services to address the negative economic impacts of the pandemic
The first annual Recovery Plan, due in 2021, was required to describe initial efforts and intended outcomes to promote equity, as applicable. Beginning in 2022, each annual Recovery Plan must provide an update, using qualitative and quantitative data, on how the recipients’ approach achieved or promoted equitable outcomes or progressed against equity goals during the performance period, as applicable. Each jurisdiction should describe any constraints or challenges that impacted project success in terms of increasing equity. In particular, this section should describe the geographic and demographic distribution of funding, including whether it is targeted toward traditionally marginalized communities (recipients may reference the demographic data information in their Project and Expenditure Reports as relevant).

4. Community Engagement
In this section, recipients should describe how their jurisdiction’s planned or current use of funds incorporates community engagement strategies including written feedback through surveys, project proposals, and related documents; oral feedback through community meetings, issue-specific listening sessions, stakeholder interviews, focus groups, and additional public engagement; as well as other forms of input, such as steering committees, taskforces, and digital campaigns that capture diverse feedback from the community. Recipients may describe completed or planned community engagement strategies specifically focused on their SLFRF program and projects or community engagement strategies that included SLFRF among other government programs. Recipients should also describe how community engagement strategies support their equity goals, including engagement with communities that have historically faced significant barriers to services, such as people of color, people with low incomes, limited English proficient populations, and other traditionally underserved groups.

5. Labor Practices
In this section, recipients should describe workforce practices on any infrastructure projects or capital expenditures being pursued. How are projects using strong labor standards to promote effective and efficient delivery of high-quality infrastructure projects while also supporting the economic recovery through strong employment opportunities for workers? For example, report whether any of the following practices are being utilized: project labor agreements, community benefits agreements, prevailing wage requirements, and local hiring.

6. Use of Evidence
In this section of the Recovery Plan, recipients should describe whether and how evidence-based interventions and/or program evaluation are incorporated into their SLFRF program. Recipients may include links to evidence standards, evidence dashboards, evaluation policies, and other public facing tools that are used to track and communicate the use of evidence and evaluation for Fiscal Recovery Funds. Recipients are encouraged to consider how a learning agenda, either narrowly focused on SLFRF or broadly focused on the recipient’s broader policy agenda, could support their overarching evaluation efforts in order to create an evidence-building strategy for their jurisdiction.22 In the Project Inventory section of the Recovery Plan (see Section 8 below), recipients should identify whether SLFRF funds are being used for evidence-based interventions23 and/or if projects are being evaluated through rigorous program evaluations that are designed to build evidence. In the Project Inventory, recipients must briefly describe the goals of the project and the evidence base for the interventions funded by the project. As part of the Project Inventory section, recipients must also specifically identify the dollar amount of the total project spending that is allocated towards evidence- based interventions for each project in the Expenditure Categories noted with an asterisk in Appendix

1. Please note that to increase consistency, the Project and Expenditure report now also includes 22 For more information on learning agendas, please see OMB M-19-23 23 As noted in Appendix 2, evidence-based refers to interventions with strong or moderate levels of evidence.

Coronavirus State and Local Fiscal Recovery Funds
Compliance and Reporting Guidance
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fields for recipients to identify the dollar amount of the total project spending that is allocated to evidence-based interventions and to indicate if a program evaluation of the project is being conducted.

Recipients are encouraged to reference relevant evidence clearinghouses, among other sources, to assess the level of evidence for their interventions and identify evidence-based models that could be applied in their jurisdiction; such evidence clearinghouses include the U.S. Department of Education’s What Works Clearinghouse, the U.S. Department of Labor’s CLEAR, and the Childcare & Early Education Research Connections and the Home Visiting Evidence of Effectiveness clearinghouses from Administration for Children and Families, as well as other clearinghouses relevant to particular projects conducted by the recipient.

Recipients are exempt from reporting on evidence-based interventions in cases where a program evaluation is being conducted. In such cases where a recipient is conducting a program evaluation, recipients must describe the evaluation design, including whether it is a randomized or quasi- experimental design; the key research questions being evaluated; whether the study has sufficient statistical power to disaggregate outcomes by demographics; and the timeframe for the completion of the evaluation (including a link to the completed evaluation if relevant).24 Once the evaluation has been completed, recipients must post the evaluation publicly and link to the completed evaluation in the Recovery Plan. Once an evaluation has been completed (or has sufficient interim findings to determine the efficacy of the intervention), recipients should determine whether the spending for the evaluated interventions should be counted towards the dollar amount categorized as evidence-based for the relevant project.

For all projects, recipients may be selected to participate in a national evaluation, which might, for example, study their project along with similar projects in other jurisdictions that are focused on the same set of outcomes. In such cases, recipients may be asked to share information and data that is needed for the national evaluation.

Appendix 2 contains additional information on evidence-based interventions for the purposes of the Recovery Plan.

7. Performance Report
In this section, recipients should describe how performance management is incorporated into their SLFRF program, including how they are tracking their overarching jurisdictional goals for these funds as well as measuring results for individual projects. The recipient has flexibility in terms of how this information is presented in the Recovery Plan, and may report key performance indicators for each project, or may group projects with substantially similar goals and the same outcome measures. In some cases, the recipient may choose to include some indicators for each individual project as well as crosscutting indicators. Recipients may include links to performance management dashboards, performance management policies, and other public facing tools that are used to track and communicate the performance of Fiscal Recovery Funds. In addition to outlining in this section their high-level approach to performance management, recipients must also include key performance indicators for each SLFRF project in the Project Inventory section (described below in #8).

Performance indicators should include both output and outcome measures. Output measures, such as the number of students enrolled in an early learning program, provide valuable information about the early implementation stages of a project. Outcome measures, such as the percent of students reading on grade level, provide information about whether a project is achieving its overall goals.

Recipients are encouraged to use logic models25 to identify their output and outcome measures. 24 For more information on the required standards for program evaluation, see OMB M-20-12. 25 A logic model is a tool that depicts the intended links between program investments and outcomes, specifically the relationships among the resources, activities, outputs, outcomes, and impact of a program.

Coronavirus State and Local Fiscal Recovery Funds
Compliance and Reporting Guidance
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While the initial Recovery Plan focused heavily on early output goals, recipients should include the related outcome goal for each project and provide updated information on achieving these outcome goals in subsequent annual reports. In cases where recipients are conducting a program evaluation for a project (as described above), the outcome measures in the performance report should be aligned with those being evaluated in the program. As described in the final rule, to support their performance measurement and program improvement efforts, recipients are permitted to use funds to make improvements to data or technology infrastructure and data analytics, as well as perform program evaluations.

While recipients have discretion on the full suite of performance indicators to include, a number of mandatory performance indicators and programmatic data must be included. These are necessary to allow Treasury to conduct oversight as well as understand and aggregate program outcomes across recipients. This section provides an overview of the mandatory performance indicators and programmatic data. This information should be included in the Project Inventory, but this data will also need to be entered directly into the Treasury reporting portal as part of the Project and Expenditure report, as Treasury has added these fields (for Tier 1 recipients only) to the Project and Expenditure report.. Below is a list of required data for each Expenditure Category, where relevant. a. Household Assistance (EC 2.2), Long-Term Housing Security (EC 2.15-2.16) and Housing Support (EC 2.17-2.18):
 Number of households receiving eviction prevention services (including legal representation)  Number of affordable housing units preserved or developed b. Assistance to Unemployed or Underemployed Workers (EC 2.10) and Community Violence Interventions (EC 1.11):
 Number of workers enrolled in sectoral job training programs  Number of workers completing sectoral job training programs  Number of people participating in summer youth employment programs c. Addressing Educational Disparities (EC 2.24-2.26) and Addressing Impacts of Lost Instructional Time (EC 2.27):
 Number of students participating in evidence-based tutoring programs26 d. Healthy Childhood Environments (EC 2.11-2.14):
 Number of children served by childcare and early learning services (pre-school/pre-K/ages 3- 5)
 Number of families served by home visiting
The initial report should have included the key indicators above. Each annual report thereafter should include updated data for the performance period as well as prior period data, and a brief narrative adding any additional context to help the reader interpret the results and understand any changes in performance indicators over time. To the extent possible, Treasury also encourages recipients to provide data disaggregated by race, ethnicity, gender, income, and other relevant factors.

8. Project Inventory
In this section, recipients should list the name and provide a brief description of each SLFRF funded project. Projects are defined as a grouping of closely related activities that together are intended to achieve a specific goal or are directed toward a common purpose. These activities can include new or existing eligible government services or investments funded in whole or in part by SLFRF funding. 26 For more information on evidence-based tutoring programs, refer to the U.S. Department of Education’s 2021 ED COVID-19 Handbook (Volume 2), which summarizes research on evidence-based tutoring programs (see the bottom of page 20.).

Coronavirus State and Local Fiscal Recovery Funds
Compliance and Reporting Guidance
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For each project, recipients should include the project name, funding amount, identification number (the same identification number created by the recipient that matches the identification number used in the quarterly Project and Expenditure Report), project Expenditure Category (see Appendix 1), and a description of the project that includes an overview of the main activities of the project, approximate timeline, primary delivery mechanisms and partners, and intended outcomes. Each jurisdiction should also include a link to the website of the project if available. This information will provide context and additional detail for the information reported quarterly in the Project and Expenditure Report.

For infrastructure projects, where relevant, recipients should describe how the project contributes to addressing climate change and/or advances the Justice40 initiative27 , which sets a target of providing 40 percent of the benefits of certain federal investments, including climate and clean energy investments to disadvantaged communities.

As noted above in section 6, the Project Inventory must also include information about the dollar amount of the total project spending that is allocated towards evidence-based interventions (or describe how projects are being evaluated as noted above). As described above in section 7, the Project Inventory must also contain information about the performance indicators for each project, including both those measures that recipients have defined for each project as well as the mandatory performance indicators defined by Treasury.

Recipients have flexibility in the presentation and format of their Project Inventory, provided it includes the minimum required information. Recipients have the option of downloading a spreadsheet of the information entered into their Project and Expenditure Report to assist them in creating the Project Inventory in their Recovery Plan. However, recipients must ensure that their Project Inventory contains the additional information required by this guidance, including but not limited to information about performance measures and evidence/evaluation for each project. In all cases, recipients must post publicly (and submit to Treasury) a single PDF file of their Recovery Plan, which includes the Project Inventory.

D. Distributions to NEUs
Each state and territory is required to provide regular updates on their NEU distributions as well as their distributions to units of general local government within counties that are not units of general local government. The distribution template generally requests information on whether the local government has (1) received funding; (2) declined funding and requested a transfer to the state under Section 603(c)(4) of the Act; or (3) not taken action on its funding or declined funding.

For NEUs, states and territories should be prepared to report on their information, including the following:
 NEU name
 NEU UEI number
 NEU Taxpayer Identification Number (TIN)
 NEU Recipient Number (a unique identification code for each NEU assigned by the State or territory to the NEU as part of the request for funding)  NEU contact information (e.g., address, point of contact name, point of contact email address, and point of contact phone number)
 NEU authorized representative name and email address
 Initial allocation and, if applicable, subsequent allocation to the NEU (before application of the 75 percent cap)
27 See Executive Order 14008, On Tackling the Climate Crisis at Home and Abroad and the Interim Implementation Guidance for the Justice40 Initiative, OMB M-21-28.

Coronavirus State and Local Fiscal Recovery Funds
Compliance and Reporting Guidance
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 Total NEU reference budget (as submitted by the NEU to the State or territory as part of the request for funding)
 Amount of the initial and, if applicable, subsequent allocation above 75 percent of the NEU’s reference budget which will be returned to Treasury
 Payment amount(s)
 Payment date(s)
States with “weak” minor civil divisions (i.e., Illinois, Indiana, Kansas, Missouri, Nebraska, North Dakota, Ohio, and South Dakota) should also list any minor civil divisions that the state deemed ineligible.

For each eligible NEU that declined funding and requested a transfer to the state under Section 603(c)(4) of the Social Security Act, the state or territory must also attach a form signed by the NEU, as detailed in the Guidance on Distributions of Funds to Non-Entitlement Units of Local Government.

Coronavirus State and Local Fiscal Recovery Funds
Compliance and Reporting Guidance
41 DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA

Appendix 1: Expenditure Categories
Treasury’s final rule provides greater flexibility and simplicity for recipients to fight the pandemic and support families and businesses struggling with its impacts, maintain vital services amid revenue shortfalls, and build a strong, resilient, and equitable recovery. As such, recipients began reporting on a broader set of eligible uses and associated Expenditure Categories (“EC”), starting with the April 2022 Project and Expenditure Report than they did in their interim reports, initial Recovery Plans, and January Project and Expenditure Report. The table below includes the new Expenditure Categories, as well as a reference to previous Expenditure Categories aligned with the interim final rule and used for reporting before this date.

The Expenditure Categories (EC) listed below must be used to categorize each project as noted in Part 2 above. The term “Expenditure Category” refers to the detailed level (e.g., 1.1 COVID-19 Vaccination). When referred to as a category (e.g., EC 1) it includes all Expenditure Categories within that level.
*Denotes areas where recipients must identify the amount of the total funds that are allocated to evidence-based interventions (see Use of Evidence section above for details) ^Denotes areas where recipients must report on whether projects are primarily serving disproportionately impacted communities (see Project Demographic Distribution section above for details)
Expenditure Category EC28 Previous
EC29
1: Public Health
COVID-19 Mitigation & Prevention
COVID-19 Vaccination^ 1.1 1.1
COVID-19 Testing^ 1.2 1.2
COVID-19 Contact Tracing^ 1.3 1.3
Prevention in Congregate Settings (Nursing Homes, Prisons/Jails, Dense Work Sites, Schools, Child care facilities, etc.)*^ 1.4 1.4 Personal Protective Equipment^ 1.5 1.5
Medical Expenses (including Alternative Care Facilities)^ 1.6 1.6 Other COVID-19 Public Health Expenses (including Communications, Enforcement, Isolation/Quarantine)^ 1.7 1.8
COVID-19 Assistance to Small Businesses^ 1.8 -
COVID 19 Assistance to Non-Profits^ 1.9 -
COVID-19 Aid to Impacted Industries^ 1.10 -
Community Violence Interventions
Community Violence Interventions*^ 1.11 3.16
Behavioral Health
Mental Health Services*^ 1.12 1.10
Substance Use Services*^ 1.13 1.11
Other
Other Public Health Services^ 1.14 1.12
Capital Investments or Physical Plant Changes to Public Facilities that respond to the COVID-19 public health emergency - 1.7
2: Negative Economic Impacts
Assistance to Households
Household Assistance: Food Programs*^ 2.1 2.1
28 Under the final rule to be used starting with April 2022 reports 29 Under the interim final rule to be used in Interim Report and January 2022 Project and Expenditure Report Coronavirus State and Local Fiscal Recovery Funds
Compliance and Reporting Guidance
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5 10
15 20
25 30
35 Expenditure Category EC28 Previous
EC29
Household Assistance: Rent, Mortgage, and Utility Aid*^ 2.2 2.2 Household Assistance: Cash Transfers*^ 2.3 2.3
Household Assistance: Internet Access Programs*^ 2.4 2.4 Household Assistance: Paid Sick and Medical Leave^ 2. - Household Assistance: Health Insurance*^ 2.6 -
Household Assistance: Services for Un/Unbanked*^ 2.7 -
Household Assistance: Survivor's Benefits^ 2.8 -
Unemployment Benefits or Cash Assistance to Unemployed Workers*^ 2.9 2.6 Assistance to Unemployed or Underemployed Workers (e.g. job training, subsidized employment, employment supports or incentives)*^ 2. 2.7 Healthy Childhood Environments: Child Care*^ 2.11 3.6
Healthy Childhood Environments: Home Visiting*^ 2.12 3.7 Healthy Childhood Environments: Services to Foster Youth or Families Involved in Child Welfare System*^ 2.13 3.8
Healthy Childhood Environments: Early Learning*^ 2.14 3.1 Long-term Housing Security: Affordable Housing*^ 2. 3.10 Long-term Housing Security: Services for Unhoused Persons*^ 2.16 3.11 Housing Support: Housing Vouchers and Relocation Assistance for Disproportionately Impacted Communities*^ 2.17 -
Housing Support: Other Housing Assistance*^ 2.18 3.12
Social Determinants of Health: Community Health Workers or Benefits Navigators*^ 2.19 3.14
Social Determinants of Health: Lead Remediation*^ 2. 3.15 Medical Facilities for Disproportionately Impacted Communities^ 2.21 - Strong Healthy Communities: Neighborhood Features that Promote Health and Safety^ 2.22 -
Strong Healthy Communities: Demolition and Rehabilitation of Properties^ 2.23 -
Addressing Educational Disparities: Aid to High-Poverty Districts^ 2.24 3.2 Addressing Educational Disparities: Academic, Social, and Emotional Services*^ 2. 3.3
Addressing Educational Disparities: Mental Health Services*^ 2.26 3.4 Addressing Impacts of Lost Instructional Time^ 2.27 -
Contributions to UI Trust Funds^ 2.28 2.8
Assistance to Small Businesses
Loans or Grants to Mitigate Financial Hardship^ 2.29 2.9 Technical Assistance, Counseling, or Business Planning*^ 2.

Rehabilitation of Commercial Properties or Other Improvements^ 2.31 - Business Incubators and Start-Up or Expansion Assistance*^ 2.32 Enhanced Support to Microbusinesses*^ 2.33
Assistance to Non-Profits
Assistance to Impacted Nonprofit Organizations (Impacted or Disproportionately Impacted)^ 2.34 2.10
Aid to Impacted Industries
Aid to Tourism, Travel, or Hospitality^ 2. 2.11
Aid to Other Impacted Industries^ 2.36 2.12
Other
Economic Impact Assistance: Other*^ 2.37 2.13
Household Assistance: Eviction Prevention*^ - 2.5
Education Assistance: Other*^ - 3.5
Coronavirus State and Local Fiscal Recovery Funds
Compliance and Reporting Guidance
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Expenditure Category EC28 Previous
EC29
Healthy Childhood Environments: Other*^ - 3.9
Social Determinants of Health: Other*^ - 3.13
3: Public Health-Negative Economic Impact: Public Sector Capacity General Provisions
Public Sector Workforce: Payroll and Benefits for Public Health, Public Safety, or Human Services Workers 3.1 1.9
Public Sector Workforce: Rehiring Public Sector Staff 3.2 2.14 Public Sector Workforce: Other 3.3 -
Public Sector Capacity: Effective Service Delivery 3.4 7.2 Public Sector Capacity: Administrative Needs 3.5 -
4: Premium Pay
Public Sector Employees 4.1 4.1
Private Sector: Grants to Other Employers 4.2 4.2
5: Infrastructure
Water and Sewer
Clean Water: Centralized Wastewater Treatment 5.1 5.1
Clean Water: Centralized Wastewater Collection and Conveyance 5.2 5.2 Clean Water: Decentralized Wastewater 5.3 5.3
Clean Water: Combined Sewer Overflows 5.4 5.4
Clean Water: Other Sewer Infrastructure 5.5 5.5
Clean Water: Stormwater 5.6 5.6
Clean Water: Energy Conservation 5.7 5.7
Clean Water: Water Conservation 5.8 5.8
Clean Water: Nonpoint Source 5.9 5.9
Drinking water: Treatment 5.10 5.10
Drinking water: Transmission & Distribution 5.11 5.11
Drinking water: Lead Remediation, including in Schools and Daycares 5.12 5.12 Drinking water: Source 5.13 5.13
Drinking water: Storage 5.14 5.14
Drinking water: Other water infrastructure 5.15 5.15
Water and Sewer: Private Wells 5.16 -
Water and Sewer: IIJA Bureau of Reclamation Match 5.17 - Water and Sewer: Other 5.18 -
Broadband
Broadband: “Last Mile” projects 5.19 5.16
Broadband: IIJA Match 5.20 -
Broadband: Other projects 5.21 5.17
6: Revenue Replacement
Provision of Government Services 6.1 6.1
Non-federal Match for Other Federal Programs 6.2 -
7: Administrative
Administrative Expenses 7.1 7.1
Transfers to Other Units of Government 7.2 7.3
Transfers to Non-entitlement Units (States and territories only) - 7.4 Coronavirus State and Local Fiscal Recovery Funds
Compliance and Reporting Guidance
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Treasury has prepared the additional guidance below to support recipients in implementing the new expenditure categories. This table includes only those previous expenditure categories that are changing under the new structure, aligned with the final rule.

January 2022 Expenditure Categories April 2022 Guidance 1: Public Health

1.7 Capital Investments or Physical Plant Changes EC removed, capital expenditures can be to Public Facilities that respond to the COVID- designated in any relevant PH-NEI EC 19 public health emergency (e.g., new hospital wing would be tracked under EC 1.4)

1.8 Other COVID-19 Public Health Expenses EC is 1.7
(including Communications, Enforcement,
Isolation/Quarantine)

1.9 Payroll Costs for Public Health, Safety, and EC is 3.1 Other Public Sector Staff Responding to
COVID-19

1.10 Mental Health Services* EC is 1.12

1.11 Substance Use Services* EC is 1.13

1.12 Other Public Health Services EC is 1.14
2: Negative Economic Impacts

2.5 Household Assistance: Eviction Prevention EC is now included as part of 2.2

2.6 Unemployment Benefits or Cash Assistance to EC is 2.9 Unemployed Workers*

2.7 Job Training Assistance (e.g., Sectoral job- EC is 2.10 training, Subsidized Employment, Employment
Supports or Incentives)*^

2.8 Contributions to UI Trust Funds EC is 2.28

2.9 Small Business Economic Assistance If public-health related (e.g., providing (General)*^ rapid tests for small businesses), EC is

1.8; if related to negative economic
impact eligible use (e.g., grants, technical
assistance, rehabilitation, incubators, or
microbusinesses), EC is 2.29-2.33

2.10 Aid to Nonprofit Organizations* If public-health related (e.g., providing rapid tests for non-profits), EC is 1.9; if
related to negative economic impact (e.g.,
grants to stabilize non-profit budget), EC
is 2.34

2.11 Aid to Tourism, Travel, or Hospitality EC is 2.35

2.12 Aid to Other Impacted Industries EC is 2.36

2.13 Other Economic Support*^ EC is 2.37, re-named Other Economic Impact

2.14 Rehiring Public Sector Staff EC is 3.2
3: Services to Disproportionately Impacted Communities

3.1 Education Assistance: Early Learning*^ EC is 2.14

3.2 Education Assistance: Aid to High-Poverty EC is 2.24 Districts ^

3.3 Education Assistance: Academic Services*^ EC is 2.25, social and emotional services will now be tracked under this EC

3.4 Education Assistance: Social, Emotional, and
Mental Health Services*^
EC is 2.26, if social and emotional
services, EC is 2.25;
Coronavirus State and Local Fiscal Recovery Funds
Compliance and Reporting Guidance
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January 2022 Expenditure Categories April 2022 Guidance

3.5 Education Assistance: Other*^ EC is 2.37, collected under Other Economic Impact

3.6 Healthy Childhood Environments: Child Care*^ EC is 2.11

3.7 Healthy Childhood Environments: Home
Visiting*^
EC is 2.12

3.8 Healthy Childhood Environments: Services to
Foster Youth or Families Involved in Child
Welfare System*^
EC is 2.13

3.9 Healthy Childhood Environments: Other*^ EC is 2.37, collected under Other Economic Impact

3.10 Housing Support: Affordable Housing*^ EC is 2.15

3.11 Housing Support: Services for Unhoused
Persons*^
EC is 2.16

3.12 Housing Support: Other Housing Assistance*^ EC is 2.18

3.13 Social Determinants of Health: Other*^ EC is 2.37, collected under Other Economic Impact

3.14 Social Determinants of Health: Community
Health Workers or Benefits Navigators*^
EC is 2.19

3.15 Social Determinants of Health: Lead
Remediation^
EC is 2.20

3.16 Social Determinants of Health: Community
Violence Interventions*^
EC is 1.11
5: Infrastructure

5.16 Broadband: “Last Mile” projects EC is 5.19

5.17 Broadband: Other projects EC is 5.20
7: Administrative

7.2 Evaluation and Data Analysis EC is 3.4 and has been renamed Effective Service Delivery

7.3 Transfers to Other Units of Government EC is 7.2

7.4 Transfers to Non-entitlement Units (States and
territories only)
To be separately reported as part of
NEU/Non-UGLG module. Refer to Part 2
Section D.

Coronavirus State and Local Fiscal Recovery Funds
Compliance and Reporting Guidance
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Appendix 2: Evidenced-Based Intervention Additional Information What is evidence-based?
For the purposes of the SLFRF, with the exception of investments in educational services (see additional information below), evidence-based refers to interventions with strong or moderate evidence as defined below:

Strong evidence means that the evidence base can support causal conclusions for the specific program proposed by the applicant with the highest level of confidence. This consists of one or more well-designed and well-implemented experimental studies conducted on the proposed program with positive findings on one or more intended outcomes.

Moderate evidence means that there is a reasonably developed evidence base that can support causal conclusions. The evidence base consists of one or more quasi-experimental studies with positive findings on one or more intended outcomes OR two or more non-experimental studies with positive findings on one or more intended outcomes. Examples of research that meet the standards include: well-designed and well-implemented quasi-experimental studies that compare outcomes between the group receiving the intervention and a matched comparison group (i.e., a similar population that does not receive the intervention).

Preliminary evidence means that the evidence base can support conclusions about the program’s contribution to observed outcomes. The evidence base consists of at least one non-experimental study. A study that demonstrates improvement in program beneficiaries over time on one or more intended outcomes OR an implementation (process evaluation) study used to learn about and improve program operations would constitute preliminary evidence. Examples of research that meet the standards include: (1) outcome studies that track program beneficiaries through a service pipeline and measure beneficiaries’ responses at the end of the program; and (2) pre- and post-test research that determines whether beneficiaries have improved on an intended outcome.

For investments in educational services, "evidence-based", consistent with the American Rescue Plan Act, has the meaning in section 8101(21) of the Elementary and Secondary Education Act of 1965, as amended (20 U.S.C. 6301 et seq.). Please see page 16 of this Frequently Asked Questions resource on the Department of Education's Elementary and Secondary School Emergency Relief Programs and Governor's Emergency Education Relief Programs for more information.

Coronavirus State and Local Fiscal Recovery Funds
Compliance and Reporting Guidance
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Appendix 3: Expenditure Categories aligned with the Interim Final Rule 1: Public Health

1.1 COVID-19 Vaccination ^

1.2 COVID-19 Testing ^

1.3 COVID-19 Contact Tracing

1.4 Prevention in Congregate Settings (Nursing Homes, Prisons/Jails, Dense Work Sites, Schools, etc.)*

1.5 Personal Protective Equipment

1.6 Medical Expenses (including Alternative Care Facilities)

1.7 Capital Investments or Physical Plant Changes to Public Facilities that respond to the COVID-19 public health emergency

1.8 Other COVID-19 Public Health Expenses (including Communications, Enforcement, Isolation/Quarantine)

1.9 Payroll Costs for Public Health, Safety, and Other Public Sector Staff Responding to COVID-19

1.10 Mental Health Services*

1.11 Substance Use Services*

1.12 Other Public Health Services
2: Negative Economic Impacts

2.1 Household Assistance: Food Programs* ^

2.2 Household Assistance: Rent, Mortgage, and Utility Aid* ^

2.3 Household Assistance: Cash Transfers* ^

2.4 Household Assistance: Internet Access Programs* ^

2.5 Household Assistance: Eviction Prevention* ^

2.6 Unemployment Benefits or Cash Assistance to Unemployed Workers*

2.7 Job Training Assistance (e.g., Sectoral job-training, Subsidized Employment, Employment Supports or Incentives)* ^

2.8 Contributions to UI Trust Funds

2.9 Small Business Economic Assistance (General)* ^

2.10 Aid to Nonprofit Organizations*

2.11 Aid to Tourism, Travel, or Hospitality

2.12 Aid to Other Impacted Industries

2.13 Other Economic Support* ^

2.14 Rehiring Public Sector Staff
3: Services to Disproportionately Impacted Communities

3.1 Education Assistance: Early Learning* ^

3.2 Education Assistance: Aid to High-Poverty Districts ^

3.3 Education Assistance: Academic Services* ^

3.4 Education Assistance: Social, Emotional, and Mental Health Services* ^

3.5 Education Assistance: Other* ^

3.6 Healthy Childhood Environments: Child Care* ^

3.7 Healthy Childhood Environments: Home Visiting* ^

3.8 Healthy Childhood Environments: Services to Foster Youth or Families Involved in Child Welfare System* ^

3.9 Healthy Childhood Environments: Other* ^

3.10 Housing Support: Affordable Housing* ^

3.11 Housing Support: Services for Unhoused Persons* ^
Coronavirus State and Local Fiscal Recovery Funds
Compliance and Reporting Guidance
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3.12 Housing Support: Other Housing Assistance* ^

3.13 Social Determinants of Health: Other* ^

3.14 Social Determinants of Health: Community Health Workers or Benefits Navigators* ^

3.15 Social Determinants of Health: Lead Remediation ^

3.16 Social Determinants of Health: Community Violence Interventions* ^ 4: Premium Pay

4.1 Public Sector Employees

4.2 Private Sector: Grants to Other Employers
5: Infrastructure

5.1 Clean Water: Centralized Wastewater Treatment

5.2 Clean Water: Centralized Wastewater Collection and Conveyance

5.3 Clean Water: Decentralized Wastewater

5.4 Clean Water: Combined Sewer Overflows

5.5 Clean Water: Other Sewer Infrastructure

5.6 Clean Water: Stormwater

5.7 Clean Water: Energy Conservation

5.8 Clean Water: Water Conservation

5.9 Clean Water: Nonpoint Source

5.10 Drinking water: Treatment

5.11 Drinking water: Transmission & Distribution

5.12 Drinking water: Transmission & Distribution: Lead Remediation

5.13 Drinking water: Source

5.14 Drinking water: Storage

5.15 Drinking water: Other water infrastructure

5.16 Broadband: “Last Mile” projects

5.17 Broadband: Other projects
6: Revenue Replacement

6.1 Provision of Government Services
7: Administrative

7.1 Administrative Expenses

7.2 Evaluation and Data Analysis

7.3 Transfers to Other Units of Government

7.4 Transfers to Non-entitlement Units (States and territories only) Coronavirus State and Local Fiscal Recovery Funds
Compliance and Reporting Guidance
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Revision Log
Version Date Published Summary of changes

1.0 June 17, 2021 Initial publication

1.1 June 24, 2021  Pg. 12, removed references to “summary” level with respect to reporting by Expenditure Categories in the
Interim Report to avoid confusion.
 Pg. 13, revised the coverage period end date for the
Interim Report from June 30, 2021 to July 31, 2021
to align with the IFR.
 Pg. 13, removed references to “summary” level with
respect to reporting by Expenditure Categories in the
Interim Report to avoid confusion.
 Pg. 31, removed references to “summary level” with
respect to Expenditure Categories in Appendix 1 to
avoid confusion.

1.1 September 30,
2021
 Announced the extension in the Project and
Expenditure Report submission date, originally due
on October 31, 2021.

2.0 November 5, 2021  Updated Subrecipient Monitoring section to clarify beneficiaries and recipients.
 Updated references to Interim Final Rule comment
period as comment period is closed.
 Updated reporting tiers, thresholds and timelines in
Part 2 Table 2, Reporting Requirements by recipient
type, as well as Part 2 A and Part 2 B.
 Updated reporting periods for Interim Report and
Project and Expenditure reports.
 Added concept of Adopted Budget to Project and
Expenditure Report data fields.
 Noted phase in of Required Programmatic Data in
the Project and Expenditure Report.
 Removed certain data fields from the Ineligible
Activities: Tax Offset Provision under the Recovery
Plan.
 Separated reporting of NEU Distributions (for States
and territories) from the Interim Report and Project
and Expenditure Reports as information will be
provided on an ongoing basis.

2.1 November 15, 2021  Updated pages 9 and 11 to note that civil rights certification is not applicable to Tribal Governments.

3.0 February 28, 2022  Updated to incorporate reporting updates under the final rule

4.0 June 10, 2022  Updated Recovery Plan guidance to incorporate minor revisions
 Updated language around certain data fields that
were required for April 2022 reporting
 Updated data fields for Ineligible Activities: Tax
Offset Provision for the Project and Expenditure
report
 Updated Broadband data fields

4.1 June 17, 2022  Updated clerical errors in Ineligible Activities: Tax Offset Provision
Coronavirus State and Local Fiscal Recovery Funds
Compliance and Reporting Guidance
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4.2 August 15, 2022  Updated to clarify resources for Uniform Guidance applicability and add a reference to an alternative to
the Single Audit available for eligible recipients
Coronavirus State and Local Fiscal Recovery Funds
Compliance and Reporting Guidance
51 DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA U.S. Department of Housing and Urban Development
Community Planning and Development
Special Attention of:

CPD Division Directors
All HOME Coordinators
All HOME Participating Jurisdictions
Notice: CPD-21-10
Issued: September 13, 2021
Expires: This NOTICE is effective until it is
amended, superseded, or rescinded
Cross Reference: 24 CFR Part 92
Subject: Requirements for the Use of Funds in the HOME-American Rescue Plan Program
Table of Contents
I. PURPOSE ........................................................................................................................ 2 II. BACKGROUND .............................................................................................................. 2 III. ESTABLISHMENT OF HOME-ARP REQUIREMENTS ......................................... 2 IV. QUALIFYING POPULATIONS, TARGETING AND PREFERENCES ................. 3 V. HOME-ARP ALLOCATION PLAN ........................................................................... 12 VI. ELIGIBLE ACTIVITIES ............................................................................................. 18 A. Administration and Planning .................................................................................... 18 B. HOME-ARP Rental Housing..................................................................................... 20 C. Tenant-Based Rental Assistance (TBRA) ................................................................. 38 D. Supportive Services .................................................................................................... 42 E. Acquisition and Development of Non-Congregate Shelter ..................................... 55 F. Nonprofit Operating and Capacity Building Assistance ......................................... 67 VII. OTHER FEDERAL REQUIREMENTS ..................................................................... 68 VIII. PROGRAM ADMINISTRATION .............................................................................. 75 IX. PERFORMANCE REVIEWS ...................................................................................... 95 X. FINDING OF NO SIGNIFICANT IMPACT ............................................................. 97 Appendix – Waivers and Alternative Requirements for HOME Investment Partnerships Program – American Rescue Plan (HOME-ARP)
Nitiatl T ier2st
Attachment C
DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA

I. PURPOSE

This Notice establishes requirements for funds appropriated under section 3205 of the American Rescue Plan Act of 2021 (P.L. 117-2) (“ARP”) for the HOME Investment Partnerships Program (HOME) to provide homelessness assistance and supportive services.

II. BACKGROUND

On March 11, 2021, President Biden signed ARP into law, which provides over $1.9 trillion in relief to address the continued impact of the COVID-19 pandemic on the economy, public health, State and local governments, individuals, and businesses.

To address the need for homelessness assistance and supportive services, Congress appropriated $5 billion in ARP funds to be administered through HOME to perform four activities that must primarily benefit qualifying individuals and families who are homeless, at risk of homelessness, or in other vulnerable populations. These activities include: (1) development and support of affordable housing, (2) tenant-based rental assistance (TBRA), (3) provision of supportive services; and (4) acquisition and development of non-congregate shelter units. The program described in this notice for the use of the $5 billion in ARP funds is the HOME-American Rescue Plan or “HOME-ARP.”

ARP defines qualifying individuals or families as those that are (1) homeless, as defined in section 103(a) of the McKinney-Vento Homeless Assistance Act, as amended (42 U.S.C. 11302(a)) (“McKinney-Vento”); (2) at risk of homelessness, as defined in section 401 of McKinney-Vento; (3) fleeing, or attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking; (4) part of other populations where providing supportive services or assistance would prevent a family’s homelessness or would serve those with the greatest risk of housing instability; or (5) veterans and families that include a veteran family member that meet the criteria in one of (1)-(4) above.

ARP authorized HUD to allocate HOME-ARP funds to states, units of general local government, insular areas, and consortia of units of general local government that qualified for an allocation of HOME funds in Fiscal Year (FY) 2021, pursuant to section 217 of the Cranston-Gonzalez National Affordable Housing Act of 1990, as amended (42 U.S.C. 12701 et seq.) (“NAHA”). On April 8, 2021, HUD allocated HOME-ARP funds to 651 grantees using the HOME formula established at 24 CFR 92.50 and 92.60. The HOME-ARP allocation amounts can be found here.

III. ESTABLISHMENT OF HOME-ARP REQUIREMENTS

ARP provides funds for homelessness and supportive services assistance under the HOME statute of Title II of NAHA (42 U.S.C. 12721 et seq.) and authorizes the Secretary of HUD to waive or specify alternative requirements for any provision of NAHA or regulation for the administration of the HOME-ARP program, except requirements related to fair housing, civil rights, nondiscrimination, labor standards, and the environment, upon a finding that the waiver DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 3 or alternative requirement is necessary to expedite or facilitate the use of HOME-ARP funds.

Pursuant to ARP, the per-unit cost limits (42 U.S.C. 12742(e)), commitment requirements (42 U.S.C. 12748(g)), matching requirements (42 U.S.C. 12750), and set-aside for housing developed, sponsored, or owned by community housing development organizations (CHDOs) (42 U.S.C. 12771) in NAHA do not apply to HOME-ARP funds.

This Notice describes the requirements applicable to a participating jurisdiction’s (PJ’s) use of HOME-ARP funds. Consolidated plan requirements for HOME are in title I of NAHA and 24 CFR part 91. HOME program regulations are in 24 CFR part 92. Except as described in ARP and this Notice, HOME statutory and regulatory provisions apply to a PJ’s use of HOME-ARP funds. Sections I-IX of this Notice describe the HOME-ARP requirements imposed on a PJ for the use of HOME-ARP funds to assist the qualifying populations through HOME-ARP projects or activities. The Appendix describes the waivers and alternative requirements imposed on PJs for the use of HOME-ARP funds and is included in any reference to “this Notice.” Specific citations in the Notice shall mean the statute or regulation cited, as may be revised by the Appendix to this Notice. PJs and insular areas must comply with all applicable statutory, regulatory, and alternative requirements, as described in this Notice, including the Appendix.

IV. QUALIFYING POPULATIONS, TARGETING AND

PREFERENCES

ARP requires that funds be used to primarily benefit individuals and families in the following specified “qualifying populations.” Any individual or family who meets the criteria for these populations is eligible to receive assistance or services funded through HOME-ARP without meeting additional criteria (e.g., additional income criteria). All income calculations to meet income criteria of a qualifying population or required for income determinations in HOME- ARP eligible activities must use the annual income definition in 24 CFR 5.609 in accordance with the requirements of 24 CFR 92.203(a)(1).

A. Qualifying Populations

1. Homeless, as defined in 24 CFR 91.5 Homeless (1), (2), or (3):
(1) An individual or family who lacks a fixed, regular, and adequate nighttime residence, meaning:
(i) An individual or family with a primary nighttime residence that is a public or private place not designed for or ordinarily used as a regular sleeping accommodation for human beings, including a car, park, abandoned building, bus or train station, airport, or camping ground;
(ii) An individual or family living in a supervised publicly or privately operated shelter designated to provide temporary living arrangements (including congregate shelters, transitional housing, and hotels and motels paid for by charitable organizations or by federal, state, or local government programs for low-income individuals); or DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 4 (iii) An individual who is exiting an institution where he or she resided for 90 days or less and who resided in an emergency shelter or place not meant for human habitation immediately before entering that institution;
(2) An individual or family who will imminently lose their primary nighttime residence, provided that:
(i) The primary nighttime residence will be lost within 14 days of the date of application for homeless assistance;
(ii) No subsequent residence has been identified; and
(iii) The individual or family lacks the resources or support networks, e.g., family, friends, faith-based or other social networks needed to obtain other permanent housing; (3) Unaccompanied youth under 25 years of age, or families with children and youth, who do not otherwise qualify as homeless under this definition, but who:
(i) Are defined as homeless under section 387 of the Runaway and Homeless Youth Act (42 U.S.C. 5732a), section 637 of the Head Start Act (42 U.S.C. 9832), section 41403 of the Violence Against Women Act of 1994 (42 U.S.C. 14043e-2), section 330(h) of the Public Health Service Act (42 U.S.C. 254b(h)), section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 2012), section 17(b) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(b)), or section 725 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11434a);
(ii) Have not had a lease, ownership interest, or occupancy agreement in permanent housing at any time during the 60 days immediately preceding the date of application for homeless assistance;
(iii) Have experienced persistent instability as measured by two moves or more during the 60-day period immediately preceding the date of applying for homeless assistance; and
(iv) Can be expected to continue in such status for an extended period of time because of chronic disabilities, chronic physical health or mental health conditions, substance addiction, histories of domestic violence or childhood abuse (including neglect), the presence of a child or youth with a disability, or two or more barriers to employment, which include the lack of a high school degree or General Education Development (GED), illiteracy, low English proficiency, a history of incarceration or detention for criminal activity, and a history of unstable employment;

2. At risk of Homelessness, as defined in 24 CFR 91.5 At risk of homelessness:
(1) An individual or family who:

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 5 (i) Has an annual income below 30 percent of median family income for the area, as determined by HUD;
(ii) Does not have sufficient resources or support networks, e.g., family, friends, faith- based or other social networks, immediately available to prevent them from moving to an emergency shelter or another place described in paragraph (1) of the “Homeless” definition in this section; and
(iii) Meets one of the following conditions:
(A) Has moved because of economic reasons two or more times during the 60 days immediately preceding the application for homelessness prevention assistance; (B) Is living in the home of another because of economic hardship; (C) Has been notified in writing that their right to occupy their current housing or living situation will be terminated within 21 days after the date of application for assistance;
(D) Lives in a hotel or motel and the cost of the hotel or motel stay is not paid by charitable organizations or by federal, State, or local government programs for low- income individuals;
(E) Lives in a single-room occupancy or efficiency apartment unit in which there reside more than two persons or lives in a larger housing unit in which there reside more than 1.5 people per room, as defined by the U.S. Census Bureau; (F) Is exiting a publicly funded institution, or system of care (such as a health-care facility, a mental health facility, foster care or other youth facility, or correction program or institution); or
(G) Otherwise lives in housing that has characteristics associated with instability and an increased risk of homelessness, as identified in the recipient's approved consolidated plan;
(2) A child or youth who does not qualify as “homeless” under this section, but qualifies as “homeless” under section 387(3) of the Runaway and Homeless Youth Act (42 U.S.C. 5732a(3)), section 637(11) of the Head Start Act (42 U.S.C. 9832(11)), section 41403(6) of the Violence Against Women Act of 1994 (42 U.S.C. 14043e-2(6)), section 330(h)(5)(A) of the Public Health Service Act (42 U.S.C. 254b(h)(5)(A)), section 3(l) of the Food and Nutrition Act of 2008 (7 U.S.C. 2012(l)), or section 17(b)(15) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(b)(15)); or
(3) A child or youth who does not qualify as “homeless” under this section but qualifies as “homeless” under section 725(2) of the McKinney-Vento Homeless Assistance Act (42 DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 6 U.S.C. 11434a(2)), and the parent(s) or guardian(s) of that child or youth if living with her or him.

3. Fleeing, or Attempting to Flee, Domestic Violence, Dating Violence, Sexual Assault, Stalking, or Human Trafficking, as defined by HUD.

For HOME-ARP, this population includes any individual or family who is fleeing, or is attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human trafficking. This population includes cases where an individual or family reasonably believes that there is a threat of imminent harm from further violence due to dangerous or life-threatening conditions that relate to violence against the individual or a family member, including a child, that has either taken place within the individual’s or family’s primary nighttime residence or has made the individual or family afraid to return or remain within the same dwelling unit. In the case of sexual assault, this also includes cases where an individual reasonably believes there is a threat of imminent harm from further violence if the individual remains within the same dwelling unit that the individual is currently occupying, or the sexual assault occurred on the premises during the 90-day period preceding the date of the request for transfer.

Domestic violence, which is defined in 24 CFR 5.2003 includes felony or misdemeanor crimes of violence committed by:
1) A current or former spouse or intimate partner of the victim (the term “spouse or intimate partner of the victim” includes a person who is or has been in a social relationship of a romantic or intimate nature with the victim, as determined by the length of the relationship, the type of the relationship, and the frequency of interaction between the persons involved in the relationship); 2) A person with whom the victim shares a child in common; 3) A person who is cohabitating with or has cohabitated with the victim as a spouse or intimate partner;
4) A person similarly situated to a spouse of the victim under the domestic or family violence laws of the jurisdiction receiving HOME-ARP funds; or 5) Any other person against an adult or youth victim who is protected from that person's acts under the domestic or family violence laws of the jurisdiction.

Dating violence which is defined in 24 CFR 5.2003 means violence committed by a person:
1) Who is or has been in a social relationship of a romantic or intimate nature with the victim; and
2) Where the existence of such a relationship shall be determined based on a consideration of the following factors:
a. The length of the relationship;
b. The type of relationship; and
c. The frequency of interaction between the persons involved in the relationship.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 7 Sexual assault which is defined in 24 CFR 5.2003 means any nonconsensual sexual act proscribed by Federal, Tribal, or State law, including when the victim lacks capacity to consent.

Stalking which is defined in 24 CFR 5.2003 means engaging in a course of conduct directed at a specific person that would cause a reasonable person to:
1) Fear for the person’s individual safety or the safety of others; or 2) Suffer substantial emotional distress.

Human Trafficking includes both sex and labor trafficking, as outlined in the Trafficking Victims Protection Act of 2000 (TVPA), as amended (22 U.S.C. 7102).

These are defined as:
1) Sex trafficking means the recruitment, harboring, transportation, provision, obtaining, patronizing, or soliciting of a person for the purpose of a commercial sex act, in which the commercial sex act is induced by force, fraud, or coercion, or in which the person induced to perform such act has not attained 18 years of age; or
2) Labor trafficking means the recruitment, harboring, transportation, provision, or obtaining of a person for labor or services, through the use of force, fraud, or coercion for the purpose of subjection to involuntary servitude, peonage, debt bondage, or slavery.

4. Other Populations where providing supportive services or assistance under section 212(a) of NAHA (42 U.S.C. 12742(a)) would prevent the family’s homelessness or would serve those with the greatest risk of housing instability. HUD defines these populations as individuals and households who do not qualify under any of the populations above but meet one of the following criteria:

(1) Other Families Requiring Services or Housing Assistance to Prevent Homelessness is defined as households (i.e., individuals and families) who have previously been qualified as “homeless” as defined in 24 CFR 91.5, are currently housed due to temporary or emergency assistance, including financial assistance, services, temporary rental assistance or some type of other assistance to allow the household to be housed, and who need additional housing assistance or supportive services to avoid a return to homelessness.

(2) At Greatest Risk of Housing Instability is defined as household who meets either paragraph (i) or (ii) below:
(i) has annual income that is less than or equal to 30% of the area median income, as determined by HUD and is experiencing severe cost burden (i.e., is paying more than 50% of monthly household income toward housing costs);

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 8 (ii) has annual income that is less than or equal to 50% of the area median income, as determined by HUD, AND meets one of the following conditions from paragraph (iii) of the “At risk of homelessness” definition established at 24 CFR 91.5:
(A) Has moved because of economic reasons two or more times during the 60 days immediately preceding the application for homelessness prevention assistance; (B) Is living in the home of another because of economic hardship; (C) Has been notified in writing that their right to occupy their current housing or living situation will be terminated within 21 days after the date of application for assistance;
(D) Lives in a hotel or motel and the cost of the hotel or motel stay is not paid by charitable organizations or by Federal, State, or local government programs for low-income individuals;
(E) Lives in a single-room occupancy or efficiency apartment unit in which there reside more than two persons or lives in a larger housing unit in which there reside more than 1.5 persons reside per room, as defined by the U.S. Census Bureau; (F) Is exiting a publicly funded institution, or system of care (such as a health-care facility, a mental health facility, foster care or other youth facility, or correction program or institution); or
(G) Otherwise lives in housing that has characteristics associated with instability and an increased risk of homelessness, as identified in the recipient's approved consolidated plan
Veterans and Families that include a Veteran Family Member that meet the criteria for one of the qualifying populations described above are eligible to receive HOME-ARP assistance.

B. Use of Funds to Benefit Qualifying Populations
ARP states that funds must be used to primarily benefit the qualifying populations through the four eligible activities: (1) TBRA, (2) development and support of affordable housing, (3) provision of supportive services; and (4) acquisition and development of non-congregate shelter (NCS) units. Recognizing the urgent needs of individuals and families in qualifying populations, HUD is requiring that:
 100% of HOME-ARP funds used by a PJ for TBRA, supportive services, and acquisition and development of non-congregate shelter units must benefit individuals and families in qualifying populations. Individuals and families in qualifying populations may be assisted by one or more of the HOME-ARP eligible activities, consistent with the requirements in this Notice.
 Not less than 70 percent of affordable rental housing units acquired, rehabilitated, or constructed with HOME-ARP funds by a PJ must be occupied by households in the qualifying populations. Units that are not restricted to occupancy by qualifying populations are subject to income targeting and rent requirements established under the DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 9 HOME-ARP Rental Program rules and are only permitted in projects with rental units restricted for occupancy by qualifying populations.

HUD recognizes that, because many households in the qualifying populations are unable to pay rents sufficient to cover unit operating costs, PJs and project owners should attempt to obtain Federal or state project-based rental subsidies, if available. Since project-based rental subsidies can be difficult to secure, additional flexibility may be necessary to structure and underwrite projects so that they remain both affordable and financially viable. HUD is providing PJs with additional flexibilities in Section VI.B. to structure and underwrite HOME-ARP rental projects so they remain financially viable during the minimum compliance period. One of these flexibilities is permitting up to 30 percent of HOME-ARP rental housing units funded by a PJ to be occupied by low-income households. PJs are encouraged to use this flexibility only when it is required to facilitate development of a HOME-ARP rental project.

PJs must determine and document that households meet the definition of a qualifying population or, for the portion of HOME-ARP rental units not restricted to these populations, that households are low-income.

C. Preferences Among Qualifying Populations, Referral Methods, and Subpopulations

1. Preferences

ARP establishes the qualifying populations that are eligible for assistance with HOME-ARP funds. A PJ may establish reasonable preferences among the qualifying populations to prioritize applicants for HOME-ARP projects or activities based on the PJ’s needs and priorities, as described in its HOME-ARP allocation plan. For example, a PJ may set a preference among qualifying individuals and families for a HOME-ARP non-congregate shelter for individuals and families who are homeless; fleeing or attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking; and veterans and families with a veteran family member that meet the criteria of one of these prior qualifying populations, consistent with its HOME-ARP allocation plan.

The PJ must comply with all applicable fair housing, civil rights, and nondiscrimination requirements, including but not limited to those requirements listed in 24 CFR 5.105(a) when applying preferences through its referral methods. Persons who are eligible for a preference must have the opportunity to participate in all HOME-ARP activities of the PJ in which they are eligible under this Notice, including activities that are not separate or different, and cannot be excluded because of any protected characteristics or preferential status.

Targeted assistance: If HOME-ARP funds are used for TBRA, the PJ may establish a preference for individuals with special needs or persons with disabilities among the HOME- ARP qualifying populations. Within the qualifying populations, participation may be limited to persons with a specific disability only, if necessary, to provide effective housing, aid, benefit, or services that would be as effective as those provided to others in accordance with 24 CFR

8.4(b)(1)(iv). The PJ may also provide a preference for a specific category of individuals with disabilities (e.g., persons with HIV/AIDS or chronic mental illness) within the qualifying DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 10 populations only if the specific category is identified in the PJ’s HOME-ARP allocation plan as having unmet need and the preference is needed to narrow the gap in benefits and services received by such persons.

2. Referral Methods for Projects or Activities

A PJ may use the referral methods described below to administer HOME-ARP assistance to qualifying individuals and families. Regardless of the referral method used by the PJ, HUD holds the PJ responsible for determining and documenting that beneficiaries meet the definition of a qualifying population or, for the portion of HOME-ARP rental units not restricted to qualifying populations, that beneficiaries are low-income.

A PJ may use the coordinated entry or coordinated entry process (CE) of a continuum of care (CoC) for referrals for projects and activities as described below. Under 24 CFR 578.3, a CE is a centralized or coordinated process designed to coordinate program participant intake assessment and provision of referrals within a defined area. HUD requires each CoC to establish and operate a CE with the goal of increasing the efficiency of local crisis response systems and improving fairness and ease of access to resources, including mainstream resources. A PJ may permit a CoC CE to collect information and documentation required to determine whether an individual or family meets the criteria of a HOME-ARP qualifying population at any point in the coordinated entry process, (i.e., after or concurrently with the assessment and intake processes) as long as that information is not used to rank a person for HOME-ARP assistance other than as specified by the preferences or method of prioritization established by the PJ, in accordance with HOME-ARP requirements. If the PJ uses CE, the PJ cannot require HOME- ARP victim service providers to use the CE but may permit them to do so.

The PJ must comply with all applicable nondiscrimination and equal opportunity laws and requirements listed in 24 CFR 5.105(a) and any other applicable fair housing and civil rights laws and requirements when using the following referral methods:
i. Use of Expanded CE in HOME-ARP

Under this referral method, a PJ may use a CE established by a CoC operating within its boundaries for one or more projects or activities if the CE accepts all HOME-ARP qualifying populations eligible for those activities or projects, in accordance with the preferences and prioritization, if any, established or approved by the PJ in its HOME-ARP allocation plan and imposed through the PJ’s written agreements.

Before using a CoC’s CE, PJs should consider whether the CE covers the same service area as the HOME-ARP project or activity that would use that CE. At a minimum, the PJ must establish policies and procedures that describe the relationship of the geographic area(s) served by the project or activity to the geographic area(s) covered by the CoC CE and address how the CE will provide access and implement uniform referral processes in situations where a project’s geographic area(s) is broader than the geographic area(s) covered by the CE.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 11 The PJ must require a project or activity to use CE along with other referral methods (as provided in section ii below) or to use only a project/activity waiting list (as provided in section iii below) if:

1. the CE does not have a sufficient number of qualifying individuals and families to refer to the PJ for the project or activity;

2. the CE does not include all HOME-ARP qualifying populations; or,

3. the CE fails to provide access and implement uniform referral processes in situations where a project’s geographic area(s) is broader than the geographic area(s) covered by the CE.

ii. Use of CE with Other Referral Methods

The PJ may use a CoC CE with additional referrals from outside organizations or project- specific waiting lists consistent with HOME-ARP requirements. If using this referral method, the PJ must establish or approve any preferences or prioritization criteria applied by a CoC CE or other referral sources. The PJ may also use a waiting list to receive referrals from a CoC CE and other referral agencies for a project or activity, where a CoC CE or referral agency refers an applicant that is placed on the waiting list for that project or activity in chronological order.

If applicable, a PJ must establish policies and procedures for applying a PJ’s established preferences and method of prioritization, if any, when accepting direct referrals from a CoC CE and other referral agencies and must document that such the policies and procedures were followed for each applicant served.

iii. Use of a Project/Activity Waiting List

The PJ may establish a waiting list for each HOME-ARP project or activity. All qualifying individuals or families must have access to apply for placement on the waiting list for an activity or project. Qualifying individuals or families on a waiting list must be accepted in accordance with the PJ’s preferences, if any, consistent with this Notice or, if the PJ did not establish preferences, in chronological order, insofar as practicable.

3. Limiting Eligibility to Subpopulations
PJs must follow all applicable fair housing, civil rights, and nondiscrimination requirements, including but not limited to those requirements listed in 24 CFR 5.105(a). This includes, but is not limited to, the Fair Housing Act, Title VI of the Civil Rights Act, section 504 of Rehabilitation Act, HUD’s Equal Access Rule, and the Americans with Disabilities Act, as applicable.

HOME-ARP rental housing or NCS may be limited to a specific subpopulation of a qualifying population identified in Section IV.A. of this Notice, so long as admission does not discriminate against any protected class under federal nondiscrimination laws in 24 CFR 5.105 (e.g., the housing may be limited to homeless households and at risk of homelessness households, DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 12 veterans and their families, victims of domestic violence, dating violence, sexual assault, stalking or human trafficking and their families).

Recipients may limit admission to or provide a preference for HOME-ARP rental housing or NCS to households who need the specialized supportive services that are provided (e.g., domestic violence services). However, no otherwise eligible individuals with disabilities or families including an individual with a disability who may benefit from the services provided may be excluded on the grounds that they do not have a particular disability.

Consistent with the statutory authority under ARP, HOME-ARP NCS may be converted to permanent housing under the CoC program or used as shelters under the ESG program, when all program and fair housing and nondiscrimination requirements are met. As such, HOME-ARP NCS may need to limit eligibility to households that are homeless and/or at risk of homelessness if the shelter will be converted to permanent housing under the CoC program or used as an emergency shelter in the ESG program.

V. HOME-ARP ALLOCATION PLAN

PJs develop annual action plans as part of their application for HOME funding. To receive its HOME-ARP funds, a PJ must engage in consultation and public participation processes and develop a HOME-ARP allocation plan that meets the requirements established in this section of the Notice and submit it to HUD as a substantial amendment to its Fiscal Year 2021 annual action plan. HUD is using the waiver and alternative requirement authority provided by ARP to establish requirements for the HOME-ARP allocation plan in this Notice. The HOME-ARP allocation plan must describe how the PJ intends to distribute HOME-ARP funds, including how it will use these funds to address the needs of HOME-ARP qualifying populations. A PJ’s HOME-ARP allocation plan must include:
 A summary of the consultation process and results of upfront consultation;  A summary of comments received through the public participation process and a summary of any comments or recommendations not accepted and the reasons why;  A description of HOME-ARP qualifying populations within the jurisdiction;  An assessment of unmet needs of each qualifying population;  An assessment of gaps in housing and shelter inventory, homeless assistance and services, and homelessness prevention service delivery system;  A summary of the planned use of HOME-ARP funds for eligible activities based on the unmet needs of the qualifying populations;
 An estimate of the number of housing units for qualifying populations the PJ will produce or preserve with its HOME-ARP allocation; and
 A description of any preferences for individuals and families in a particular qualifying population or a segment of a qualifying population.

All the above required elements of the HOME-ARP allocation plan shall be part of the FY 2021 annual action plan for purposes of the HOME-ARP program. Consequently, PJs are not required to amend their consolidated plans.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 13 A. Consultation

Before developing its HOME-ARP allocation plan, a PJ must consult with agencies and service providers whose clientele include the HOME-ARP qualifying populations to identify unmet needs and gaps in housing or service delivery systems. In addition, a PJ should use consultation to determine the HOME-ARP eligible activities currently taking place within its jurisdiction and potential collaborations for administering HOME-ARP. This consultation will provide a basis for the PJ’s strategy for distributing HOME-ARP funds for eligible activities to best meet the needs of qualifying populations. At a minimum, a PJ must consult with the CoC(s) serving the jurisdiction’s geographic area, homeless and domestic violence service providers, veterans’ groups, public housing agencies (PHAs), public agencies that address the needs of the qualifying populations, and public or private organizations that address fair housing, civil rights, and the needs of persons with disabilities. State PJs are not required to consult with every PHA or CoC within the state’s boundaries; however, local PJs must consult with all PHAs (including statewide or regional PHAs) and CoCs serving the jurisdiction. In its plan, a PJ must describe its consultation process, list the organizations consulted, and summarize the feedback received from these entities.

B. Public Participation

PJs must provide for and encourage citizen participation in the development of the HOME-ARP allocation plan. Before submitting the HOME-ARP allocation plan to HUD, PJs must provide residents with reasonable notice and an opportunity to comment on the proposed HOME-ARP allocation plan of no less than 15 calendar days. The PJ must follow its adopted requirements for “reasonable notice and an opportunity to comment” for plan amendments in its current citizen participation plan. In addition, PJs must hold at least one public hearing during the development of the HOME-ARP allocation plan prior to submitting the plan to HUD.

For the purposes of HOME-ARP, PJs are required to make the following information available to the public:
 The amount of HOME-ARP funds the PJ will receive.
 The range of activities the PJ may undertake.

A PJ must consider any comments or views of residents received in writing, or orally at a public hearing, when preparing the HOME-ARP allocation plan. In its plan, a PJ must describe its public participation process, including any efforts made to broaden public participation. In its plan, the PJ must also include a summary of comments and recommendations received through the public participation process and any comments or recommendations not accepted and the reasons why.

Throughout the HOME-ARP allocation plan public participation process, the PJ must follow its applicable fair housing and civil rights requirements and procedures for effective communication, accessibility and reasonable accommodation for persons with disabilities and providing meaningful access to participation by limited English proficient (LEP) residents that are in its current citizen participation plan as required by 24 CFR 91.105 and 91.115.

The HOME-ARP allocation plan must describe the distribution of HOME-ARP funds and the process for soliciting applications and/or selecting eligible projects. The plan must also identify any preferences being established for eligible activities or projects. However, PJs are not required to identify specific projects that will be funded in the HOME-ARP allocation plan.

1. Needs Assessment and Gaps Analysis: A PJ must evaluate the size and demographic composition of qualifying populations within its boundaries and assess the unmet needs of those populations. In addition, a PJ must identify any gaps within its current shelter and housing inventory as well as the service delivery system. A PJ should use current data, including point in time count, housing inventory count, or other data available through CoCs, and consultations with service providers to quantify the individuals and families in the qualifying populations and their need for additional housing, shelter, or services. A PJ should identify and consider the current resources available to assist qualifying populations, including congregate and non-congregate shelter units, supportive services, TBRA, and affordable and permanent supportive rental housing. A PJ must consider the housing and service needs of qualifying populations, including but not limited to:
 Sheltered and unsheltered homeless populations;
 Those currently housed populations at risk of homelessness;  Other families requiring services or housing assistance to prevent homelessness; and  Those at greatest risk of housing instability or in unstable housing situations.

A PJ should include data in its HOME-ARP allocation plan that describes the qualifying populations.

In addition, a PJ must include a narrative description that:
 Identifies the characteristics of housing associated with instability and an increased risk of homelessness if the PJ will include such conditions under HUD’s definition of “other populations” as established in Section IV.A.4.2.ii.G. of this Notice.  Identifies the PJ’s priority needs for qualifying populations; and,  Explains how the PJ determined the level of need and gaps in its shelter and housing inventory and service delivery systems.

2. HOME-ARP Activities: The HOME-ARP allocation plan must describe how a PJ will distribute HOME-ARP funds in accordance with its priority needs. The plan must describe the PJ’s method for soliciting applications for funding and/or selecting developers, service providers, subrecipients and/or contractors and whether the PJ will administer eligible activities directly. If the PJ will provide any portion of its HOME-ARP administrative funds to a subrecipient or contractor prior to HUD’s acceptance of the PJ’s HOME-ARP allocation plan because the subrecipient or contractor is responsible for the administration of the PJ’s entire HOME-ARP grant, the plan must identify the subrecipient or contractor and describe its role and responsibilities in administering all of the PJ’s HOME-ARP program.

PJs must indicate in the HOME-ARP allocation plan the amount of HOME-ARP funding that is planned for each eligible HOME-ARP activity type, including administrative and DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 15 planning activities. In addition, a PJ must demonstrate that any planned funding for nonprofit organization operating assistance, as described in Section VI.F, nonprofit capacity building, and administrative costs is within HOME-ARP limits. PJs must also include a narrative description about how the characteristics of its shelter and housing inventory, service delivery system, and the needs identified in the PJ’s gap analysis provided a rationale for its plan to fund eligible activities.

3. HOME-ARP Production Housing Goals: The HOME-ARP allocation plan must estimate the number of affordable rental housing units for qualifying populations that a PJ will produce or support with its HOME-ARP allocation. The plan must also include a narrative about the specific affordable rental housing production goal that the PJ hopes to achieve and describe how it will address the PJ’s priority needs.

4. Preferences: The HOME-ARP allocation plan must identify whether the PJ intends to give preference to one or more qualifying populations or a subpopulation within one or more qualifying populations for any eligible activity or project. For example, PJs may include a preference for:
 homeless individuals and families as defined in the ESG and CoC programs;  individuals with special needs or persons with disabilities among qualifying individuals and families;
 a specific category of qualifying individuals and families (e.g., chronically homeless as defined in 24 CFR 91.5).

PJs are not required to describe specific projects to which the preferences will apply in the HOME-ARP allocation plan. However, a PJ must explain how the use of a preference or method of prioritization will address the unmet need or gap in benefits and services received by individuals and families in the qualifying population or category of qualifying population, consistent with the PJ’s needs assessment and gap analysis. The PJ must also describe how it will still address the unmet needs or gaps in benefits and services of the other qualifying populations that are not included in a preference through the use of HOME- ARP funds.

Preferences cannot violate any applicable fair housing, civil rights, and nondiscrimination requirements, including but not limited to those requirements listed in 24 CFR 5.105(a).

The PJ must comply with all applicable nondiscrimination and equal opportunity laws and requirements listed in 24 CFR 5.105(a) and any other applicable fair housing and civil rights laws and requirements when establishing preferences or methods of prioritization.

5. HOME-ARP Refinancing Guidelines: If a PJ intends to use HOME-ARP funds to refinance existing debt secured by multifamily rental housing that is being rehabilitated with HOME-ARP funds, it must state its refinancing guidelines in accordance with 24 CFR

92.206(b)(2). The guidelines must describe the conditions under with the PJ will refinance existing debt for a HOME-ARP rental project. At a minimum, the guidelines must:

 Establish a minimum level of rehabilitation per unit or a required ratio between rehabilitation and refinancing to demonstrate that rehabilitation of HOME-ARP rental housing is the primary eligible activity.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 16  Require a review of management practices to demonstrate that disinvestment in the property has not occurred; that the long-term needs of the project can be met; and that the feasibility of serving qualified populations for the minimum compliance period can be demonstrated.
 State whether the new investment is being made to maintain current affordable units, create additional affordable units, or both.
 Specify whether the required compliance period is the minimum 15 years or longer.  State that HOME-ARP funds cannot be used to refinance multifamily loans made or insured by any federal program, including CDBG.

6. Substantial Amendments to the HOME-ARP Allocation Plan: PJs must make a substantial amendment to the HOME-ARP allocation plan for changes in the method of distributing funds; to carry out an activity not previously described in the plan; or, to change the purpose, scope, location, or beneficiaries of an activity, including new preferences not previously described in the plan. In addition, the requirements for substantial amendments at 24 CFR 92.63 apply to the HOME-ARP allocation plan for insular areas. PJs are not required to make a substantial amendment to describe individual projects selected for funding if the eligible activity is included in the PJ’s plan. PJs must make the proposed substantial amendment public and provide for a 15-day public comment period prior to submission. Upon completion of the public comment period, PJs must submit substantial amendments to HUD in accordance with the process for submitting the HOME-ARP allocation plan as described in Section V.D.

7. Certifications and SF-424: PJs must submit the required certifications in accordance with the requirements in this Notice, including the following:

a. Affirmatively Further Fair Housing;
b. Uniform Relocation Assistance and Real Property Acquisition Policies Act and Anti- displacement and Relocation Assistance Plan;
c. Anti-Lobbying;
d. Authority of Jurisdiction;
e. Section 3; and,
f. HOME-ARP specific certification that a PJ will only use HOME-ARP funds consistent with ARP and the HOME-ARP Notice for eligible activities and eligible costs.

PJs must also submit the SF-424, SF-424B, and SF-424D with the HOME-ARP allocation plan.

D. Submission and Review Process

1. HOME-ARP Submission and the eCon Planning Suite: Upon completion of the HOME- ARP allocation plan, a PJ must submit the HOME-ARP allocation plan to HUD. To submit the HOME-ARP allocation plan, PJs must follow the process in IDIS to make an amendment to the Fiscal Year (FY) 2021 annual action plan. Once the FY 2021 annual action plan is reopened, a PJ must upload a Microsoft Word or PDF version of the plan as an attachment next to the “HOME-ARP allocation plan” option on the AD-26 screen (for DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 17 PJs whose FY. 2021 annual action plan is a Year 2-5 annual action plan) or the AD-25 screen (for PJs whose FY 2021 annual action plan is a Year 1 annual action plan that is part of the 2021 consolidated plan), unless instructed by HUD to follow a different submission procedure. PJs are not required to make any other edits to the FY 2021 annual action plan or applicable consolidated plan screens in the eCon Planning Suite. For more information on how to upload an attachment in the eCon Planning Suite, PJs can refer to the eCon Planning Suite Desk Guide.

2. HUD Review of the HOME-ARP Allocation Plan: The PJ must submit its HOME-ARP allocation plan to HUD for review in accordance with 24 CFR 91.500, as revised by this Notice. Unless instructed otherwise by HUD, the HOME-ARP allocation plan is received by HUD when the SF-424 is submitted electronically, which means that it is uploaded in the eCon Planning Suite as an attachment on AD-25 or AD-26 screen, as applicable, and the action plan status is changed to “Submitted for Review.” HUD will review a PJ’s HOME- ARP allocation plan to determine that it is:
 Substantially complete, and
 Consistent with the purposes of ARP.

HUD may disapprove a PJ’s HOME-ARP allocation plan in accordance with 24 CFR

91.500(b). HUD may also disapprove a HOME-ARP allocation plan or a portion of a plan if HUD determines that the plan is inconsistent with the purposes of ARP or substantially incomplete. A PJ’s plan is inconsistent with ARP if it allocates HOME-ARP funds for uses other than a HOME-ARP eligible activity, as described in this Notice. A PJ’s HOME-ARP allocation plan is substantially incomplete if:
 The PJ does not complete the required public participation or consultation or fails to describe those efforts in the plan;
 The PJ fails to include the required elements outlined in this Notice, including the amount of HOME-ARP funds for each eligible HOME-ARP activity type;  The PJ fails to identify and describe the responsibilities of the subrecipient or contractor administering all of its HOME-ARP award, if applicable; or,  HUD rejects the PJ’s HOME-ARP certification as inaccurate.

In accordance with section 105(c) of NAHA (42 U.S.C. 12705(c)) and 24 CFR 91.500(a), if the PJ’s HOME-ARP allocation plan is not disapproved within 45 days, then the plan is deemed approved 45 days after HUD receives the plan, and HUD shall notify the PJ that the plan is accepted.

If HUD determines that the plan is substantially incomplete or that the plan is inconsistent with ARP, HUD will notify the PJ in writing with the reasons for disapproval, in accordance with 24 CFR 91.500(c). If a PJ’s plan is disapproved, the PJ may revise or resubmit the plan for HUD review within 45 days after the first notification of disapproval. HUD will respond to accept or disapprove the resubmitted plan within 30 days of receiving the revisions or resubmission.

Once HUD notifies a PJ that the plan is accepted, the PJ must make the final HOME-ARP allocation plan available to the public in accordance with the same requirements in the PJ’s DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 18 current citizen participation plan that are followed to make the PJ’s adopted consolidated plan and substantial amendments available to the public, including the availability of materials in a form accessible to persons with disabilities, and translated materials in different languages to accommodate LEP persons, upon request.

3. HUD Review of the HOME-ARP Allocation Plan for Insular Areas: In addition to the standards for review described in Section V.D.2, HUD will review an insular area’s HOME- ARP allocation plan in accordance with 24 CFR 92.62. If HUD cannot make a determination based on the information submitted that the HOME-ARP allocation plan complies with HOME-ARP allocation plan requirements, or if the eligible activities described in the plan are not within the insular area’s management capability as demonstrated by past performance in housing and community development programs, HUD will notify the insular area within 30 days of receipt of the HOME-ARP allocation plan that supporting documentation is needed. The insular area will have a mutually agreed upon period to submit the necessary supporting information or to revise the eligible activities in its HOME-ARP allocation plan.

VI. ELIGIBLE ACTIVITIES

A. Administration and Planning

The PJ may expend, for payment of reasonable administrative and planning costs, up to 15 percent of its HOME-ARP allocation. Reasonable administrative and planning costs for the HOME-ARP program include:

1. Reasonable costs of overall HOME-ARP program management, coordination, monitoring, and evaluation. Such HOME-ARP costs include, but are not limited to, necessary expenditures for the following:

a. Salaries, wages, and related costs of the PJ’s staff. If a PJ charges costs to this category, the PJ may either include the entire salary and related costs allocable to the HOME-ARP program of each person whose primary responsibilities with regard to the HOME-ARP program involves program administration assignments, or the prorated share of the salary, wages, and related costs of each person whose job includes any program administrative assignments. A PJ may only use one of these two methods. Program administration includes:
i. Developing systems and schedules for complying with HOME-ARP program requirements, including systems to prevent a duplication of benefits among beneficiaries of HOME-ARP activities;
ii. Developing interagency agreements and agreements with entities receiving HOME-ARP funds;
iii. Monitoring HOME-ARP activities for progress and compliance with HOME- ARP program requirements;
iv. Preparing HOME-ARP reports and other documents related to the HOME-ARP program for submission to HUD;
DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 19 v. Coordinating the resolution of audit and monitoring findings on HOME-ARP activities;
vi. Evaluating HOME-ARP program results against stated objectives in the HOME- ARP allocation plan, and
vii. Managing or supervising persons whose primary responsibilities with regard to the HOME-ARP program include such assignments as those described above.

b. Travel costs incurred for official business in carrying out the HOME-ARP program.

c. Administrative services performed under third party contracts or agreements, including such services as general legal services, accounting services, and audit services.

d. Other costs for goods and services required for administering the HOME-ARP program, such as: rental or purchase of equipment, insurance, information systems necessary to track and implement beneficiaries of HOME-ARP activities in accordance with the requirements of this Notice, utilities, office supplies, and rental and maintenance (but not purchase) of office space.

e. Costs of administering HOME-ARP TBRA and HOME-ARP supportive services programs.

2. Staff and overhead costs of the PJ directly related to carrying out a HOME-ARP project, in accordance with 24 CFR 92.207(b).

3. The provision of information and other resources to residents and citizen organizations participating in the planning, implementation, or assessment of projects being assisted with HOME-ARP funds.

4. Activities to affirmatively further fair housing (AFFH) in accordance with 24 CFR 5.151 and the PJ’s certification as required under this Notice and 24 CFR 5.152. The AFFH definition in HUD’s Interim Final Rule entitled, “Restoring Affirmatively Furthering Fair Housing Definitions and Certifications” (86 FR 30779, June 10, 2021), as amended, at 24 CFR 5.151, and the AFFH certification requirement, at 24 CFR 5.152, available at https://www.federalregister.gov/documents/2021/06/10/2021-12114/restoring-affirmatively- furthering-fair-housing-definitions-and-certifications.

5. Indirect costs may be charged to the HOME-ARP program under a cost allocation plan prepared in accordance with 2 CFR part 200, subpart E, as amended.

6. Preparation of the HOME-ARP allocation plan as required in this Notice. Preparation includes the costs of public hearing, consultations, and publications.

7. Costs of complying with the applicable Federal requirements in 24 CFR part 92, subpart H.

Project-specific environmental review costs may be charged as administrative or project costs in accordance with 24 CFR 92.206(d)(8) and is at the discretion of the PJ.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 20 Funds available under the HOME-ARP appropriation for administration and planning may not be used to pay costs attributable to the regular HOME Program.

PJs may provide all or a portion of its HOME-ARP administrative funds to subrecipients and contractors that are administering activities on behalf of the PJ (e.g., CoC entity, other non- Federal entity), in accordance with the requirements in this Notice. However, from the obligation date of the HOME-ARP funds in the HOME-ARP Grant Agreement and prior to HUD’s acceptance of the PJ’s HOME-ARP allocation plan, a subrecipient or contractor to the PJ may only incur and expend HOME-ARP funds for eligible administrative and planning costs if the subrecipient or contractor is responsible for the use of the PJ’s entire HOME-ARP award and has executed a HOME-ARP written agreement that complies with 24 CFR 92.504 and this Notice. The PJ must also identify the subrecipient or contractor administering the PJ’s entire HOME-ARP award and describe the subrecipient or contractor’s responsibilities in the PJ’s HOME-ARP allocation plan.

All costs must comply with the Cost Principles contained in subpart E of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 CFR part 200, as amended (Uniform Administrative Requirements).

Once HUD obligates the HOME-ARP funds, as described in Section VIII.C.2 of this Notice, the PJ may incur and expend up to 5 percent of its HOME-ARP allocation on eligible administrative and planning costs, as described in this section and 24 CFR 92.207. Before HUD’s acceptance of the PJ’s HOME-ARP allocation plan, the PJ is only permitted to incur and expend HOME-ARP funds on eligible administrative and planning costs.

If the PJ does not submit a HOME-ARP allocation plan or if the PJ’s plan is not accepted within a reasonable period of time, as determined by HUD, all HOME-ARP administrative and planning costs incurred by the PJ will be ineligible costs and any HOME-ARP funds expended by the PJ must be repaid to the PJ’s HOME Investment Trust Fund Treasury account, in accordance with guidance issued by HUD. Moreover, if the PJ’s HOME-ARP allocation plan does not identify or include a description of the responsibilities of the subrecipient or contractor that is responsible for the PJ’s entire HOME-ARP award, if applicable, the administrative and planning costs incurred or expended by the subrecipient or contractor will also be ineligible and any HOME-ARP funds expended by the PJ’s subrecipient or contractor must be repaid to the PJ’s HOME Investment Trust Fund Treasury account, in accordance with guidance from HUD.

B. HOME-ARP Rental Housing

HOME-ARP funds may be used to acquire, rehabilitate, or construct affordable rental housing primarily for occupancy by households of individuals and families that meet the definition of one or more of the qualifying populations described in Section IV.A of this Notice (“qualifying households”). Unlike the regular HOME Program, which targets HOME-assisted rental units based on tenant income, 70 percent of all HOME-ARP units will admit households based only upon their status as qualifying households. This complicates the underwriting and operation of projects that include HOME-ARP units. As a result, the requirements for HOME-ARP rental housing provide significant flexibilities to enable HOME-ARP rental projects to remain DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 21 financially viable and affordable for the qualifying populations throughout the minimum compliance period.

Eligible HOME-ARP rental housing includes “housing” as defined at 24 CFR 92.2, including but not limited to manufactured housing, single room occupancy (SRO) units, and permanent supportive housing. Emergency shelters, hotels, and motels (including those currently operating as non-congregate shelter), facilities such as nursing homes, residential treatment facilities, correctional facilities, halfway houses, and housing for students or dormitories do not constitute housing in the HOME-ARP program. However, HOME-ARP funds may be used to acquire and rehabilitate such structures into HOME-ARP rental housing.

Developing financially feasible rental housing for qualifying households is challenging in the absence of project-based rental assistance. Most HOME-assisted rental projects rely on tenant rents to cover all or a portion of the debt service and project operating costs. Most HOME-ARP qualifying households will be unable to pay a rent that covers allocated debt service or operating costs, requiring PJs to use other techniques to determine that HOME-ARP units are affordable and that projects containing HOME-ARP units are sustainable throughout the minimum compliance period. PJs are encouraged to work with local PHAs and other state or local agencies to obtain project-based rental assistance for units funded with HOME-ARP. In the absence of such project-based rental assistance, the HOME-ARP units for qualifying households may require substantial capital investment through HOME-ARP and other Federal, state, local, or private sources to eliminate debt service on the units. ARP suspended the maximum per-unit subsidy limit for HOME-ARP units, enabling HOME-ARP funds to pay the entire cost to acquire, rehabilitate and/or construct the HOME-ARP rental units, eliminating the need for the HOME-ARP units to support debt. In mixed-income developments, revenue from market rate or higher income-restricted units may also provide an internal subsidy to cover a portion of the operating costs of HOME-ARP units.

To address these challenges and maintain affordability, HUD is using its HOME-ARP statutory authority to:
 Establish alternative rent requirements to 24 CFR 92.252(b) and extend an owner’s ability to charge the maximum rent permissible under a rental assistance program (to units occupied by recipients of tenant-based rental assistance (e.g., Housing Choice Vouchers, HOME TBRA, HOME-ARP TBRA).
 Establish a minimum compliance period of 15 years for all HOME-ARP rental units irrespective of the amount of subsidy per unit or whether the units are acquired, rehabilitated, and/or newly constructed.
 Permit the use of HOME-ARP funds to provide ongoing operating cost assistance or capitalize a project operating cost assistance reserve to address operating deficits of the HOME-ARP units restricted for qualifying households during the compliance period.  Allow not more than 30 percent of the total number of rental units assisted with HOME- ARP funds by the PJ to be restricted to households that are low-income as defined in 24 CFR 92.2 (“low-income households”). These units may only be located in projects containing HOME-ARP units restricted for qualifying households. The HOME-ARP rental units occupied by low-income households must operate under the regulations applicable to HOME rental units at 24 CFR 92.252 (i.e., be occupied by low-income DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 22 households and bearing a rent not greater than the lesser of a. the Fair Market Rent for existing housing for comparable units in the area, as established by HUD, or b. a rent equal to 30 percent of the adjusted income of a family with annual income at 65 percent of median income for the area, as determined by HUD, with adjustments for the number of bedrooms in the unit).

1. Targeting and Occupancy Requirements: ARP requires HOME-ARP activities to primarily benefit households in the qualifying populations. To improve the feasibility and maintain the long-term viability of projects with HOME-ARP rental units for qualifying households, a PJ may invest HOME-ARP funds in units that are not restricted for occupancy solely for qualifying populations as described in this section. Specifically, participating jurisdictions must comply with the following requirements:

a. Targeting: HOME-ARP funds can only be invested in units restricted for qualifying households or low-income households as follows:
i. Not less than 70 percent of the total number of rental units assisted with HOME- ARP funds by the PJ must be restricted for occupancy by households that are qualifying households at the time of the household’s initial occupancy; and,

ii. Not more than 30 percent of the total number of rental units assisted with HOME- ARP funds by the PJ may be restricted to low-income households. These rental units do not have to be restricted for occupancy by qualifying households, however rental units restricted to low-income households are only permitted in projects that include HOME-ARP units for qualifying households.

b. Occupancy Requirements:

i. Qualifying Households. Units restricted for occupancy by qualifying households must be occupied by households that meet the definition of a qualifying population at the time of admission to the HOME-ARP unit. A qualifying household after admission retains its eligibility to occupy a HOME-ARP rental unit restricted for qualifying populations, irrespective of the qualifying household’s changes in income or whether the household continues to meet the definition of a qualifying population.

As such, a unit restricted for a qualifying household remains in compliance with the HOME-ARP unit restriction as long as the unit is occupied by a qualifying household that met the definition of a qualifying population at the time of admission.

ii. Low-Income Households. At initial occupancy, units restricted for low-income households must be occupied by households that meet the definition of low-income in 24 CFR 92.2. If a tenant’s income increases above the applicable low-income limit during the compliance period, the unit will be considered temporarily out of compliance. Noncompliance requires the PJ to take action in accordance with the rent and unit mix requirements in Sections VI.B.15 and VI.B.17 of this Notice, respectively.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 23 2. Eligible Activities: A PJ may use HOME-ARP funds for acquisition, construction, and rehabilitation, including reconstruction as defined in 24 CFR 92.2, of affordable rental housing for qualifying and low-income households. Acquisition of vacant land or demolition must be undertaken only with respect to a particular housing project intended to provide HOME-ARP rental housing within the timeframes provided in Section VI.B. of this Notice. A HOME-ARP rental project must meet the definition of project in 24 CFR 92.2.

HOME-ARP funds may be used to assist one or more units in a project. Only the eligible development costs of the HOME-ARP units may be charged to the HOME-ARP program.

Cost allocation in accordance with 24 CFR 92.205(d)(1) is required if the assisted and non- assisted units are not comparable. After project completion, the number of HOME-ARP units in a project cannot be reduced. During the HOME-ARP minimum compliance period and prior to the end of the HOME-ARP budget period, a PJ may invest additional HOME- ARP funds to provide operating cost assistance but is prohibited from investing additional HOME-ARP funds for capital costs except within the 12 months after project completion.

A qualifying household admitted to a HOME-ARP rental unit may still receive HOME-ARP supportive services or TBRA in accordance with the requirements in this Notice.

3. Forms of Assistance: The PJ may invest HOME-ARP funds in accordance with the eligible forms of assistance described in 24 CFR 92.205(b). Each PJ has the right to establish the terms of assistance, subject to the HOME-ARP requirements described in this Notice.

4. Minimum Amount of Assistance: The minimum amount of HOME-ARP funds that must be invested in a rental housing project is $1,000 times the number of HOME-ARP-assisted units in the project as established in 24 CFR 92.205(c).

5. Eligible Costs: HOME-ARP funds may be used to pay for up to 100% of the following eligible costs associated with the acquisition, development, and operation of HOME-ARP rental units:

a. Development hard costs – defined in 24 CFR 92.206(a).

b. Refinancing – the cost to refinance existing debt secured by a rental project that is being rehabilitated with HOME-ARP funds in accordance with 24 CFR 92.206(b)(2) and the PJ’s HOME-ARP refinancing guidelines, as stated in their HOME-ARP Allocation Plan.

c. Acquisition – the costs of acquiring improved or unimproved real property.

d. Related soft costs – defined in 24 CFR 92.206(d).

e. Relocation costs – as defined in 24 CFR 92.206(f), 24 CFR 92.353, and described in this Notice.

f. Costs relating to payment of loans – If the HOME-ARP funds are not used to directly pay a cost specified in this HOME-ARP rental housing section, but are used to pay off a DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 24 construction loan, bridge financing loan, or guaranteed loan, the payment of principal and interest for such loan is an eligible cost only if: (1) the loan was used for eligible costs specified in this HOME-ARP rental housing section, and (2) the HOME-ARP funds are part of the original financing for the project and the project meets the requirements of this Notice.

g. Operating Cost Assistance – A PJ may pay ongoing operating cost assistance or capitalize an operating cost assistance reserve for HOME-ARP-assisted units restricted for occupancy by qualifying populations in a project where the PJ determines in its underwriting that the reserve is necessary to maintain the HOME-ARP units’ long-term operational feasibility. However, HOME-ARP funds cannot be used for both a capitalized operating cost assistance reserve and ongoing payments for operating cost assistance during the minimum compliance period. The allowable amount of the reserve shall not exceed the amount determined by the PJ to be necessary to provide operating cost assistance for HOME-ARP units restricted for occupancy by qualifying populations for the 15-year HOME-ARP minimum compliance period.

The operating cost assistance reserve for HOME-ARP units for qualifying households must be held by the project owner in a separate interest-bearing account and sized, based on an analysis of projected deficits remaining after the expected payments toward rent by qualifying households are applied to the units’ share of operating costs. Funds in a capitalized operating cost assistance reserve can only be drawn to address operating deficits associated with HOME-ARP units restricted for occupancy by the qualifying populations. A PJ must use the definition of operating costs in this Notice in its calculation of operating deficits to determine the amount of HOME-ARP funds needed for an operating cost assistance reserve or when providing operating cost assistance.

Unexpended operating cost assistance reserve amounts remaining at the end of the minimum compliance period must be returned in accordance with Section VI.B.24 of this Notice.

A PJ may provide operating cost assistance to a HOME-ARP rental project to cover an operating deficit associated with HOME-ARP units restricted for occupancy by qualifying households except for when an operating cost assistance reserve is already established for the project. Operating cost assistance committed to a project cannot be provided beyond the HOME-ARP budget period, as described in Section VIII.C.4 of this Notice.

Operating costs include costs for administrative expenses, property management fees, insurance, utilities, property taxes, and maintenance of a unit that is designated as a HOME-ARP-assisted unit and required to be occupied by a qualifying household. .

Operating costs must be reasonable and appropriate for the area, size, population(s) served, and type of project.

Project administrative expenses include payroll costs, which are gross salaries and wages paid to employees assigned to the property, including payroll taxes, employee compensation, and employee benefits; employee education, training, and travel; advertising; and general administrative costs which are costs for goods and services DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 25 required for administration of the housing, including rental or purchase of equipment, supplies, legal charges, bank charges, utilities, telephone/internet services, insurance, and other administrative costs that are reasonable and customary for the general administration of a rental unit occupied by qualifying populations. HOME-ARP permits the pro-rated staffing costs of a Resident Services Coordinator to be included in the operating costs allocated to a HOME-ARP unit for low-income or qualifying households if such costs are not already paid by another source. Typically, the role of a Resident Services Coordinator is to arrange community activities for residents and link residents to outside service agencies as needed.

A property management fee includes the total fee paid to a management agent by the owner for the day-to-day management of a HOME-ARP rental unit restricted for occupancy by qualifying populations. A management agent must cover its costs of supervising and overseeing operations of a HOME-ARP unit out of the fee they receive.

A reserve for replacement must be based on the useful life of each major system and expected replacement cost in a HOME-ARP project. Scheduled payments to a reserve for replacement of major systems included in the operating costs allocated to a HOME- ARP unit restricted for a qualifying household may be made from the operating cost assistance reserve. A reserve for replacement allocated to the HOME-ARP units may also be capitalized in the initial year of the minimum compliance period of the HOME- ARP units. HOME-ARP funds cannot be used to both capitalize a reserve for replacement and provide payments to the reserve for replacement from a capitalized operating reserve during the minimum compliance period.

Supportive services costs are not eligible operating costs of HOME-ARP units, however, qualifying households occupying HOME-ARP rental units may receive supportive services through the HOME-ARP supportive services eligible activity.

6. Prohibited Activities and Fees: HOME-ARP may not be used for any of the prohibited activities, costs or fees in 24 CFR 92.214, as revised by the Appendix to this Notice.

7. HOME-ARP Funds and Public Housing: HOME-ARP funds must be used in accordance with the requirements in 24 CFR 92.213(a)-(c).

8. Commitment: The affordable housing requirements in the definition of Commitment in 24 CFR 92.2, including the provisions in (2) Commit to a specific local project, apply to rental housing units assisted with HOME-ARP funds. This includes but is not limited to the requirements that the PJ and project owner have an executed legally binding written agreement under which HOME-ARP assistance will be provided to the owner for an identifiable project for which all necessary financing has been secured, a budget and schedule have been established, and underwriting has been completed and under which construction is scheduled to start within 12 months of the agreement date.

9. Maximum Per-Unit Subsidy and Limitations on Costs: The maximum per-unit subsidy established in NAHA does not apply to HOME-ARP units. PJs may pay up to 100 percent of the eligible and reasonable HOME-ARP costs allocated to a HOME-ARP unit, including DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 26 operating cost assistance associated with units restricted for occupancy by qualifying households. All costs paid by HOME-ARP funds must comply with the requirements of this Notice and the Cost Principles at 2 CFR part 200, subpart E of the Uniform Administrative Requirements, as amended.

10. Underwriting, Subsidy Layering: Before the PJ can commit HOME-ARP funds to a project, it must evaluate the project to determine the amount of HOME-ARP capital subsidy and operating cost assistance necessary to provide quality affordable housing that meets the requirements of this Notice and is financially viable throughout the minimum 15-year HOME-ARP compliance period. The PJ must evaluate the project in accordance with underwriting and subsidy layering guidelines it has developed for HOME-ARP projects.

The PJ’s project underwriting must include an in-depth review of underlying project assumptions, development sources and uses, and projected operating income and expenses, and the project’s long-term financial viability to determine the project’s need for HOME- ARP assistance while preventing over-subsidization of the project. HUD anticipates that project developers will rely on Low-Income Housing Tax Credit (LIHTC) financing, HOME funds, Housing Trust Fund grants, project-based vouchers, project-based rental assistance, operating cost reserves, state or local sources, or a combination of these and other resources to create a feasible HOME-ARP project and maintain compliance with HOME-ARP requirements. HOME-ARP units for qualifying households that do not receive a commitment of project-based vouchers or project-based rental assistance may require both deep capital subsidy and operating cost assistance to remain financially sustainable for the minimum 15-year HOME-ARP compliance period. However, the PJ, through its underwriting, must also determine that the HOME-ARP capital and operating subsidies do not result in over-subsidization of the project.

To secure HOME-ARP rental units for qualifying households, HOME-ARP funds may be invested in different types of projects, including permanent supportive housing, mixed- finance affordable housing, and market-rate projects. While the viability of the HOME- ARP units is the PJ’s primary concern, it must not limit its underwriting analysis to the HOME-ARP units. The long-term viability of HOME-ARP units is contingent upon the financial health of the entire project. PJs must therefore take a holistic approach to underwriting that examines the overall feasibility of the entire project to determine that the property will be financially sustainable for the duration of the 15-year HOME-ARP compliance period.

For projects that will receive operating cost assistance through a capitalized operating cost assistance reserve or on-going operating cost assistance for a specific period, the on-going operating cost assistance or operating cost assistance reserve must be included in the underwriting. Unless placed into an operating cost assistance reserve, operating cost assistance committed to a project for a specific period cannot be provided beyond the budget period, as described in Section VIII.C.4. of this Notice. HOME-ARP units that have commitments for a form of project-based rental assistance must be underwritten with the projected rental assistance and not with operating cost assistance. An operating cost assistance reserve must be sized based on an analysis of projected operating deficits DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 27 remaining after the expected payments toward rent by qualifying households are applied to the HOME-ARP unit's share of operating costs. While a PJ may offer on-going project operating cost assistance instead of providing an operating cost assistance reserve, it may find this approach makes it more difficult to develop HOME-ARP units.

a. Underwriting and Subsidy Layering Guidelines: PJs must develop standardized underwriting guidelines for HOME-ARP rental projects. These guidelines must provide for underwriting that accommodates and is appropriate for different types of projects.

For example, a standard market analysis does not provide the necessary data for a project where 100% of the units are restricted as permanent supportive housing for qualifying populations. In contrast, if a mixed-income property relies on rental income from market-rate units to subsidize the operating costs of permanent supportive housing units for which little or no tenant-paid rental income is projected, then a market study confirming that the proposed market rents are achievable is needed to demonstrate the long-term financial viability of the project.

PJs with existing HOME rental underwriting standards may use these standards as the foundation for their HOME-ARP underwriting guidelines, but all PJs are required to develop and implement standardized underwriting guidelines for HOME-ARP that require the following:
i. An examination of the sources and uses of funds for the project and a determination that costs are necessary and reasonable. In examining a project’s proposed sources and uses, a PJ must determine the amount of HOME-ARP development subsidy required to fill the gap between other committed funding sources and the cost to develop the project.

A developer fee is a permitted development cost under the HOME-ARP program, but the PJ must review the fee and determine that it is reasonable. A PJ may set limits on the developer fee and other fees (e.g., asset management fee, property management fee) to be paid by HOME-ARP funds that differ from other funding sources (e.g., LIHTC underwriting standards).

ii. An assessment of the current market demand for the proposed project. (1) For HOME-ARP units for qualifying households, a market assessment is not required. Rather, the PJ can demonstrate that there is unmet need among qualifying populations for the type of housing proposed through their gap analysis, CoC data, public housing and affordable housing waiting lists, point- in-time surveys, housing inventory count, or other relevant data on the need for permanent housing for the qualifying populations.
(2) For projects containing units restricted for occupancy by low-income households or market-rate households, the PJ must conduct a market assessment in accordance with 24 CFR 92.250(b)(2). A third-party market assessment completed by the developer or another funder meets this requirement, but the PJ must review the assessment and provide a written, dated acknowledgement that it accepts the assessment’s findings and conclusions. The market assessment and the PJ’s written, dated DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 28 acknowledgement must be retained for recordkeeping purposes.

iii. Review of and determination that the developer’s experience and financial capacity are satisfactory based on the size and complexity of the project. When assessing the developer, the PJ must review, at minimum, prior experience with similar projects and the current capacity to develop the proposed project. When determining whether the developer has the financial capacity to undertake the project, the PJ should examine financial statements and audits to determine the developer’s net worth, portfolio risk, pre-development funding, and liquidity.

iv. Firm written financial commitments for the project.

v. A careful review of the project’s operating budget, including the basis for assumptions, projections of a project’s net operating income, and reasonably expected changes in revenue and expenses during the minimum compliance period, to determine if any HOME-ARP-funded operating cost assistance is necessary and if applicable, an operating cost assistance reserve is sized appropriately. Operating income of the project must be sufficient to cover operating expenses throughout the minimum compliance period. For HOME-ARP units for qualifying households, the proforma or budget projections should include any anticipated ongoing operating cost assistance or draws from an operating cost assistance reserve, if applicable, that will offset operating deficits associated with those units to demonstrate sufficient operating support.
(1) If project-based vouchers or project-based rental assistance is or will be awarded, this analysis must include that rental assistance revenue because operating cost assistance cannot be used for units for qualifying households with project-based vouchers or project-based rental assistance. (2) A PJ’s underwriting standards may permit projects to generate reasonable net operating income throughout the minimum compliance period. However, HOME-ARP operating cost assistance may only be used to offset operating deficits, in accordance with the requirements of this Notice. Net operating income resulting from HOME-ARP operating cost assistance is not permitted and must be prohibited in the written agreement between the participating jurisdiction and the owner.

vi. An assessment of the project’s overall viability through the minimum compliance period based on the households (i.e., qualifying households, low-income households, market-rate households) it will serve.

11. Property Standards: HOME-ARP rental units must comply with all property standards applicable to rental projects required in 24 CFR 92.251 paragraphs (a) new construction, (b) rehabilitation projects, (c)(1) and (2) acquisition of standard housing, (e) manufactured housing, and (f) on-going property condition standards.

12. Determining Household Income: The PJ must require all HOME-ARP units to be restricted for eligible households (i.e., either qualifying or low-income households) DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 29 throughout the minimum compliance period. Qualifying households are eligible for admission to HOME-ARP rental units solely by meeting the definition of one of the qualifying populations (i.e., HOME-ARP does not impose income restrictions on units restricted for qualifying populations). If there is no income requirement in the qualifying population’s definition, a PJ is not required to perform an initial determination of household income except as necessary to determine an affordable rental contribution by the qualifying household or to establish eligibility for another funding source in the unit that imposes income restrictions (e.g., LIHTC). Each subsequent year during the compliance period, starting 1 year after initial occupancy, the PJ must use the definition of annual income as defined in 24 CFR 5.609 to examine the income of qualifying households to determine the household’s contribution to rent. For low-income households, the PJ must use the definition of annual income as defined in 24 CFR 5.609 to examine the household’s income at initial occupancy and each subsequent year during the compliance period to determine the household’s ongoing income eligibility and applicable rental contribution.

a. Qualifying populations: For purposes of establishing the qualifying household’s rental contribution after initial occupancy, a PJ must examine a HOME-ARP qualifying household’s income using 24 CFR 92.203(a)(1)(i) or (iii), starting 1 year after initial occupancy. Each year during the minimum compliance period, the owner must examine the household’s annual income in accordance with any one of the options in 24 CFR

92.203(a)(1) specified by the PJ. A project owner who re-examines household income through a statement and certification in accordance with 24 CFR 92.203(a)(1)(ii), must examine the income of each household, in accordance with 24 CFR 92.203(a)(1)(i), every sixth year of the compliance period. Otherwise, an owner who accepts the household’s statement and certification in accordance with 24 CFR 92.203(a)(1)(ii) is not required to examine the household’s income unless there is evidence that the household’s written statement failed to completely and accurately state information about the household’s size or income.

b. Low-income Households: In accordance with 24 CFR 92.252(h), the income of each low-income household must be determined initially in accordance with 24 CFR

92.203(a)(1)(i), and each year following the initial determination during the minimum compliance period in accordance with any one of the options in 24 CFR 92.203(a)(1) specified by the PJ. An owner who re-examines household income through a statement and certification in accordance with 24 CFR 92.203(a)(1)(ii), must examine the income of each household, in accordance with 24 CFR 92.203(a)(1)(i), every sixth year of the minimum compliance period. Otherwise, an owner who accepts the household’s statement and certification in accordance with 24 CFR 92.203(a)(1)(ii) is not required to examine the household’s income unless there is evidence that the household’s written statement failed to completely and accurately state information about the household’s size or income.

c. Households Assisted by Other Programs: Notwithstanding paragraphs (a) and (b), if a family is applying for or living in a HOME-ARP-assisted rental unit, and the unit is assisted by a Federal or State project based rental subsidy then a PJ must accept a public housing agency, section 8 project owner, or CoC recipient or subrecipient’s DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 30 determination of the family’s annual income and adjusted income under that program’s rules and does not need to obtain source documentation in accordance with 24 CFR

92.203(a)(1) or calculate the annual income of the family. If a family is applying for or living in a HOME-ARP rental unit, and the family is assisted by a Federal tenant-based rental assistance program (e.g. housing choice vouchers) then a PJ may choose to accept the rental assistance provider’s determination of the family’s annual and adjusted income under that program’s rules without need for review under 24 CFR 92.203(a)(1).

13. Rent limitations: This Notice establishes rent limits for HOME-ARP units restricted for qualifying populations and for units that may be restricted for low-income households.

a. Units Restricted for Occupancy by Qualifying Households: In no case can the HOME- ARP rents exceed 30% of the adjusted income of a household whose annual income is equal to or less than 50% of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit. HUD will publish the HOME- ARP rent limits on an annual basis.

Notwithstanding the foregoing, a unit that receives a Federal or state project-based rental subsidy and is occupied by a qualifying household that pays as a contribution to rent no more than 30 percent of the household’s adjusted income, may charge the rent allowable under the Federal or state project-based rental subsidy program (i.e., the tenant rental contribution plus the rental subsidy allowable under that program). If a household receives tenant-based rental assistance, the rent is the rent permissible under the applicable rental assistance program (i.e., the tenant rental contribution plus the rental subsidy allowable under that rental assistance program).

The rent limits for HOME-ARP units for qualifying households include the rent plus the utility allowance established pursuant to Section VI.B.13.d of this Notice.

b. Rent limitations – low-income households: HOME-ARP rental units occupied by low- income households must comply with the rent limitations in 24 CFR 92.252(a) (i.e., the lesser of the Fair Market Rent for existing housing for comparable units in the area, as established by HUD, or a rent equal to 30 percent of the income of a family at 65 percent of median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit). Notwithstanding the foregoing, when a household receives a form of Federal tenant-based rental assistance (e.g., housing choice vouchers), the rent is the rent permissible under the applicable rental assistance program (i.e., the tenant rental contribution plus the rent subsidy allowable under the rental assistance program). The rent limits for low-income households apply to the rent plus the utility allowance established pursuant to Section VI.B.13.d of this Notice.

c. Rent limitations – Single Room Occupancy (SRO) Units: A HOME-ARP rental project may consist of SRO units. For the purposes of HOME-ARP rental, a SRO unit is defined as a unit that is the primary residence of the occupant(s) and must at least contain sanitary facilities but may also contain food preparation facilities. A project’s DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 31 designation as a SRO cannot be inconsistent with the building’s zoning and building code classification.

If the SRO units have both sanitary and food preparation facilities, the maximum HOME-ARP rent is based on the zero-bedroom fair market rent. If the SRO unit has only sanitary facilities, the maximum HOME-ARP rent is based on 75 percent of the zero-bedroom fair market rent. The rent limits for SRO units must also include the utility allowance established pursuant to Section VI.B.13.d of this Notice.

d. Initial Rent Schedule and Utility Allowance: The PJ must establish maximum allowances for utilities and services and update the allowances annually. The PJ may adopt the utility allowance schedule of the PHA.

The PJ must review and approve the HOME-ARP rents proposed by the owner, subject to the HOME-ARP rent limitations. For HOME-ARP units where the tenant is paying utilities and services (e.g., trash collection), the PJ must determine that the rent for the unit does not exceed the maximum rent minus the monthly allowance for utilities and services.

14. Tenant Contribution to Rent – Qualifying Households: The PJ must determine that the qualifying household’s contribution to rent is affordable to the qualifying household based on a determination of the household’s income. If the household is receiving project-based or tenant-based rental assistance, the household cannot be required to contribute more towards rent than the amount permitted by the requirements of the applicable rental assistance program (See Section VI.B.13.a of this Notice). If a qualifying household is not receiving project-based or tenant-based rental assistance and cannot contribute any income toward rent, or the contribution is insufficient to cover the unit rent, the project owner may draw from the project’s operating cost assistance reserve if projected rental revenue minus the operating costs of the unit results in a deficit. If an operating cost assistance reserve was not capitalized at project completion:
 The PJ may provide ongoing HOME-ARP operating cost assistance to cover the operating deficits associated with units occupied by qualifying households, subject to the requirements in this Notice.
 The qualifying household may receive HOME-ARP TBRA to remain housed in the HOME-ARP rental unit or the PJ may offer, in conjunction with a qualifying household’s admittance into a HOME-ARP rental unit, a simultaneous award of supportive services to the qualifying household in accordance with Section VI.D of this Notice. Any provision of supportive services must comply with all requirements of Section VI.D. of the Notice and the PJ’s policies and procedures.  Operating cost assistance, HOME-ARP TBRA, and supportive services funds committed to a project cannot be provided beyond the budget period for the HOME- ARP funds, as described in Section VIII.C.4 of this Notice.

15. Changes in Income and Over-income Households:

A household that met the definition of one of the HOME-ARP qualifying populations at initial occupancy and whose annual income at the time of income re-certification is above DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 32 50 percent of median income for the area but at or below 80 percent of the median income for the area must pay the rent specified in 24 CFR 92.252(a).

HOME-ARP-assisted units restricted for low-income households continue to qualify as HOME-ARP rental housing despite a temporary noncompliance caused by increases in the incomes of existing households if actions satisfactory to HUD are taken so that all vacancies are filled in accordance with HOME-ARP requirements until the noncompliance is corrected.

A qualifying or low-income household that is not low-income at the time of income re- certification (i.e., whose income is above 80 percent of the median income for the area) must pay rent that complies with the over income regulatory requirements at 24 CFR

92.252(i)(2), which includes requirements applicable to HOME units that also have LIHTC restrictions.

16. Unit Designation: The PJ must determine the number of HOME-ARP units in the project restricted for qualifying households and low-income households, respectively, and whether the units are fixed or floating units at the time of project commitment. The total number of HOME-ARP rental units restricted for occupancy by qualifying households and the total number of HOME-ARP rental units restricted for low-income households must be identified as separate totals in the written agreement. In a project containing HOME-ARP and other units, the PJ must designate fixed or floating HOME-ARP units in accordance with 24 CFR

92.252(j). The PJ must maintain this unit mix throughout the compliance period.

17. Maintaining Unit Mix: At the time of admission to a HOME-ARP rental unit, a household must meet the definition for at least one qualifying population or be determined to be a low- income household, depending on the applicable HOME-ARP restriction on the rental unit to which it is being admitted and in accordance with the written agreement.

For HOME-ARP rental units restricted for occupancy by qualifying populations, a household that meets the definition of a qualifying population at the time of admission retains its eligibility to occupy a HOME-ARP rental unit restricted for occupancy by qualifying populations, irrespective of changes in income or whether the household continues to meet the definition of a qualifying population after initial occupancy. As an example, a household that qualifies as “Homeless” at admission does not meet the Homeless definition once the household occupies a HOME-ARP unit but remains a qualifying household and is eligible to remain in a HOME-ARP rental unit restricted for qualifying populations. Income determinations for qualifying households are therefore only for purposes of establishing a qualifying household’s rental contribution as described in Section VI.B.15 of this Notice and not for maintaining continued eligibility in the HOME-ARP program. In a project with floating units, PJs are encouraged but not required to shift the HOME-ARP qualifying population designation to another unit to serve another qualifying household if the household’s income subsequently is certified to be at or above 80 percent AMI and the household no longer meets the definition of any qualifying population.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 33 For HOME-ARP rental units restricted for occupancy by low-income households, units will be considered temporarily out of compliance if the household’s income increases above 80 percent of area median income. The requirements for correcting any noncompliance using vacancies or redesignation of units depends on whether the HOME-ARP rental units are fixed or floating and whether other funding sources (e.g., LIHTC) impose income or other restrictions on the units. Please note, in accordance with the requirements in 24 CFR 92.253 and in Section VI.B.19.c, an increase in a tenant’s income does not constitute good cause to evict or refuse to renew a tenant’s lease, regardless of program requirements associated with other funding sources such as LIHTC. In addition, compliance with unit restrictions for low-income households requires adjustment of rents as described in Section VI.B.15 of this Notice.

18. Minimum Compliance Period: HOME-ARP-assisted units must comply with the requirements of this Notice for a minimum period of 15 years, irrespective of the amount of HOME-ARP funds invested in the project or the activity being undertaken. A PJ may impose a longer compliance period but should plan for the project’s financial feasibility for the longer period without HOME-ARP funds. The PJ may not use HOME-ARP funds to provide operating cost assistance, including a capitalized operating cost assistance reserve, to cover deficits during a PJ’s extended compliance period.

If a project-based rental assistance Housing Assistance Payments (HAP) contract is awarded to a HOME-ARP rental project, a PJ must impose a minimum compliance period that is the greater of 15 years or the term of the HAP contract. PJs are also encouraged to extend restrictions for occupancy of the HOME-ARP units in accordance with the requirements in this section to match the term of eligible HAP contract renewals.

The provisions at 24 CFR 92.252(e)(1)-(4) apply, including the requirement that the PJ must impose the HOME-ARP rental requirements through a deed restriction, covenant running with the land, legally binding agreement restricting the use of the property and recorded on the property in accordance with State recordation laws, or other mechanisms approved by HUD. The chart providing minimum affordability periods based on rental housing activity that is contained in 24 CFR 92.252(e) does not apply. The enforceable restriction must provide that units assisted with HOME-ARP comply with the requirements of this Notice throughout the minimum 15-year compliance period, including:

a. Units restricted for qualifying populations must be occupied by households that met the definition of a qualifying population at the time of initial occupancy. The household’s contribution toward rent during this period must be affordable in accordance with Section VI.B.14 of this Notice. The rents for these units must comply with the rent limitations established in this Notice, including the rent provisions specified in 24 CFR

92.252(i)(2) for households whose income increases above 80 percent of area median income and whose contribution to rent complies with the requirements in Section VI.B.15.

b. Units available for low-income households must be continuously occupied by households who are income eligible. The rents for these units must comply with the rent DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 34 limitations established in this Notice, including the rent provisions specified in 24 CFR

92.252(i)(2) for households whose income increases above 80 percent of area median income.

c. The units must comply with the ongoing property condition standards of 24 CFR

92.251(f) throughout the compliance period as demonstrated by an on-site inspection within 12 months of project completion and an on-site inspection at least once every three years thereafter as required by 24 CFR 92.504.

d. Each household that occupies a HOME-ARP unit has an executed lease that complies with the tenant protections required in Section VI.B.19 of this Notice.

19. Tenant Protections: PJs must verify that each household that occupies a HOME-ARP assisted unit has an executed lease that complies with the tenant protection requirements of this Notice. The lease must be either be between the project owner and the household or between the project owner and a HOME-ARP sponsor with a sublease between the qualifying household and HOME-ARP sponsor. A HOME-ARP sponsor is a nonprofit organization that provides housing or supportive services to qualifying households and facilitates the leasing of a HOME-ARP rental unit to a qualifying household or the use and maintenance of HOME-ARP TBRA by a qualifying household. PJs may permit a HOME- ARP sponsor to lease a HOME-ARP unit from an owner or execute a master lease with the owner of a HOME-ARP project for HOME-ARP units restricted for occupancy by qualifying households. The HOME-ARP sponsor may then sublease the HOME-ARP rental unit to the qualifying household. The sublease between the HOME-ARP sponsor and the qualifying household must comply with the rent limitations and tenant protection requirements of this Notice.

a. Lease Requirement: There must be a lease between the qualifying household or the low- income household and the owner of the HOME-ARP-assisted project in accordance with 24 CFR 92.253(a), except that a sublease is permitted if a HOME-ARP sponsor has executed a master lease or lease with the project owner for the leasing of the units restricted for occupancy by qualifying households.

b. Prohibited Lease Terms: The lease between the low-income household, qualifying household, or HOME-ARP sponsor and the HOME-ARP project owner or the sublease between the HOME-ARP sponsor and a qualifying household may not contain any of the prohibited lease terms specified in 24 CFR 92.253(b).

c. Termination of tenancy: An owner may not terminate the tenancy or refuse to renew the lease of a tenant of a HOME-ARP unit or of a HOME-ARP sponsor with a sublease with a qualifying household except for serious or repeated violation of the terms and conditions of the lease; for violation of applicable Federal, State, or local laws; or for other good cause. Similarly, a HOME-ARP sponsor may not refuse to renew a sublease with a qualifying household except for serious or repeated violation of the terms and conditions of the sublease; for violation of applicable Federal, State, or local laws; or for DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 35 other good cause. An increase in the tenant’s or sublessee’s income does not constitute good cause.

In addition, if HOME-ARP funds were or are used to capitalize an operating cost assistance reserve or there is a current contract for the PJ to provide operating cost assistance to the project, an owner may not terminate the tenancy or refuse to renew the lease of a qualifying household because of the household’s inability to pay rent during the minimum compliance period. A qualifying household’s inability to pay rent shall mean that the qualifying household cannot pay more than 30 percent of the qualifying household’s income toward rent, based on an income determination made by the PJ in the last 30 days.

Where there is no capitalized operating reserve or other operating cost assistance to cover the operating deficit for a HOME-ARP unit occupied by a qualifying household, the PJ may assist the qualifying household with HOME-ARP TBRA or supportive services in accordance with the requirements of this Notice.

The above tenant protections are necessary as HOME-ARP requires the PJ to perform underwriting that reviews the operating feasibility of units occupied by qualifying households for the 15-year compliance period to determine how HOME-ARP funds may address the potential for qualifying households to have little to no income to contribute toward rent.

To terminate or refuse to renew tenancy for any household occupying a HOME-ARP unit, the owner must serve written notice upon the tenant (and the HOME-ARP sponsor if the lease is between an owner and HOME-ARP sponsor) at least 30 days before termination of tenancy, specifying the grounds for the action. In the case of a sublease, to terminate or refuse to renew tenancy of a qualifying household, the HOME-ARP sponsor, in accordance with the policy established by the PJ, must notify the PJ in advance of serving written notice to the qualifying household and must serve written notice upon the qualifying household at least 30 days before termination of tenancy, specifying the grounds for the action.

20. Coordinated Entry and Project-Specific Waitlists: In accordance with Section IV.C of this Notice, PJs must determine whether an owner may use a CoC’s CE, a CoC’s CE and other referral sources, or a project-specific waitlist, to select qualifying households for HOME-ARP units restricted for occupancy by qualifying populations. PJs will make this determination on a project-by-project basis. Regardless of which method is selected, in all cases, the PJ must use a project-specific waitlist when selecting households to occupy units restricted for occupancy by low-income households. Any preferences among qualifying households must be disclosed in the HOME-ARP allocation plan through the PJ’s public participation process in accordance with Section V.C. of this Notice. The written agreement between the PJ and the project owner must specify the method the owner must use for selecting qualifying households for admission to HOME-ARP units. a. The owner of a HOME-ARP rental project must adopt and follow written tenant selection policies and criteria for HOME-ARP units that:

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 36 i. Limits eligibility to households that meet one of the HOME-ARP qualifying populations definitions or low-income households in accordance with HOME- ARP requirements; Preferences for households in one or more of the HOME- ARP qualifying populations must comply with the PJ’s preferences and the PJ’s policies and procedures for applying those preferences, if any, and must not violate nondiscrimination requirements in 24 CFR 92.350. ii. Do not exclude an applicant with a voucher under the section 8 Housing Choice Voucher Program (24 CFR 982), or an applicant participating in HOME, HOME-ARP or other Federal, state or local tenant-based rental assistance program because of the status of the prospective tenant as a holder of such a certificate, voucher, or comparable tenant-based assistance document; iii. Limits eligibility or gives a preference to a particular qualifying population or segment of the qualifying population if permitted in its written agreement with the participating jurisdiction (and only if the limitation or preference is described in the participating jurisdiction's HOME-ARP allocation plan). A preference for households in one or more of the HOME-ARP qualifying populations must comply with the PJ’s determined preference(s) and the PJ’s policies and procedures for applying the preference(s), if any;
iv. Any limitation or preference must not violate nondiscrimination requirements in 24 CFR 92.350. If the PJ requires the use of a project-specific waitlist to select qualifying households and/or low-income households for occupancy of HOME- ARP units, provide for the selection of households from a written waiting list in the chronological order of their application, insofar as is practicable; v. Gives prompt written notification to any rejected applicant of the grounds for any rejection; and,
vi. Complies with the VAWA requirements as described in 24 CFR 92.359.

b. Project-Specific Waitlist – Low-Income Households: A project owner must use a project-specific waitlist to select households to occupy units restricted for occupancy by low-income households in accordance with the tenant selection requirements of 24 CFR 92.253(d).

21. Project Completion and Occupancy: HOME-ARP rental projects must meet the definition of project completion at 24 CFR 92.2. If the PJ fails to complete a project within 4 years of project commitment, it must comply with the terminated project requirements at 24 CFR 92.205(e)(2). If the HOME-ARP units are not occupied by eligible qualifying households or low-income households within six months following project completion, the PJ, as applicable, must submit to HUD information on its efforts to coordinate with a CoC, homeless service providers, social service, and other public agencies to fill units for qualifying households or must submit marketing information and, if appropriate, a marketing plan to fill units for low-income households. The PJ must repay any HOME- ARP funds invested in units that are not rented to eligible qualifying or low-income households within 12 months of project completion.

22. Penalties for Noncompliance: The PJ must repay HOME-ARP funds invested in rental housing that is terminated before completion or otherwise does not comply with initial or ongoing requirements of this Notice during the compliance period, as follows:

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 37 a. If the noncompliance or termination occurs within the first 10 years of the compliance period, the PJ must repay the entire amount of HOME-ARP funds invested in the project.

b. If the noncompliance or termination occurs in years 11 through 15, the repayment amount will be reduced by 20 percent for each year beyond the initial 10-years during which time the project was compliant.

Repayment of the HOME-ARP funds is not required if the project owner sells or transfers, either voluntarily or involuntarily, the HOME-ARP project during the compliance period if (1) the HOME-ARP restrictions remain, (2) the project and new project owner continues to comply with all HOME-ARP requirements, and (3) any HOME-ARP funds remaining in a project’s operating cost assistance reserve or reserve for replacement remain with the project and convey upon sale or transfer of the project as a restricted operating cost assistance reserve or reserve for replacement subject to HOME-ARP Notice requirements.

23. Operating Cost Assistance Reserve - Management and Oversight: The PJ must require that any HOME-ARP funds expended for project operating cost assistance reserves are held by the project owner in a separate interest-bearing account. The PJ must require the project owner to request written approval from the PJ prior to disbursing funds from the project operating cost assistance reserve. The PJ must review each requested distribution from the operating cost assistance reserve, including supporting documentation, to determine that the distribution is reasonable and necessary to cover the operating deficit associated with HOME-ARP units occupied by qualifying households. The PJ must, no less than annually, review the operating cost assistance reserve account to determine that the account is appropriately sized based on the projected operating deficits of HOME-ARP units restricted for occupancy by qualifying households. The PJ may require the project owner to enter into a deposit account control agreement for the operating cost assistance reserve where the PJ must approve disbursements from the account.

24. End of Compliance Period and Return of Operating Cost Assistance Reserve: Any unexpended operating cost assistance reserve remaining at the end of the compliance period must be returned as follows:

a. If the HOME-ARP rental project will continue to operate in accordance with the HOME-ARP requirements and serve qualifying households beyond the HOME-ARP 15- year compliance period as demonstrated by enforceable restrictions imposed by the PJ, the project can retain the operating cost assistance reserve amount to address any operating deficits associated with the HOME-ARP units occupied by qualifying households.

b. If the HOME-ARP project will not continue to operate in accordance with the HOME- ARP requirements and serve qualifying households beyond the 15-year HOME-ARP compliance period and the HOME-ARP grant has expired or is closed out, the remaining operating cost assistance reserve funds must be deposited in the PJ’s local HOME DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 38 account and recorded as HOME program income receipt in the Integrated Disbursement and Information System (IDIS) and used for eligible costs under 24 CFR part 92.

C. Tenant-Based Rental Assistance (TBRA)

HOME-ARP funds may be used to provide tenant-based rental assistance to qualifying households (“HOME-ARP TBRA”). In HOME-ARP TBRA, the PJ assists a qualifying household with payments to cover the entire or insufficient amounts that the qualifying household cannot pay for housing and housing-related costs, such as rental assistance, security deposits, and utility deposits. HOME-ARP TBRA assisted households may choose to rent a unit in a HOME-ARP rental project or any other eligible rental unit. HOME-ARP TBRA is a form of rental assistance that is attached to the household and not a particular rental unit.

Therefore, the HOME-ARP TBRA assisted household may choose to move to another unit with continued HOME-ARP TBRA as long as the new unit meets the applicable property standards of this Notice. If a HOME-ARP TBRA assisted household chooses to move, the rental assistance contract terminates and a new rental assistance contract for the new unit will be executed according to HOME-ARP TBRA requirements. The HOME-ARP TBRA assisted household must notify the PJ before moving in order to receive continued HOME-ARP TBRA.

1. Tenant Selection: Only individuals and families in the qualifying populations are eligible to receive HOME-ARP TBRA assistance. PJs must perform tenant selection in accordance with Section IV.C of this Notice. The PJ must select qualifying households for HOME- ARP TBRA in accordance with written tenant selection policies and criteria that are based on local housing needs established in the HOME-ARP allocation plan. The PJ must follow written tenant selection policies and criteria that:
a. Limit eligibility to households that meet one of the HOME-ARP qualifying populations definitions in accordance with HOME-ARP requirements. Preferences for households in one or more of the HOME-ARP qualifying populations, if any, must comply with the preferences and/or method of prioritization in the PJ’s HOME-ARP allocation plan and the PJ’s policies and procedures for applying such preferences, if any, and must not violate nondiscrimination requirements in 24 CFR 92.350. b. If the PJ selects HOME-ARP TBRA applicants off a waiting list, it must provide for the selection of qualifying households from a written waiting list in accordance with the PJ’s preferences or method of prioritization in the chronological order of their application, insofar as is practicable.
c. Give prompt written notification to any rejected applicant of the grounds for any rejection, and
d. Comply with the VAWA requirements as described in 24 CFR 92.359.

Finally, the PJ may offer, in conjunction with HOME-ARP TBRA assistance, a simultaneous award of services in accordance with Section VI.D of this Notice, and also provide particular types of other nonmandatory services that may be most appropriate for persons with a special need or a particular disability. Any provision of supportive services must comply with all requirements of Section VI.D of the Notice and the PJ’s policies and procedures.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 39 2. Tenant Protections: PJs must require and verify that there is an executed lease between the qualifying household that receives HOME-ARP TBRA and the owner of the rental unit or between the owner of the rental unit and a HOME-ARP sponsor with a sublease between the qualifying households and the HOME-ARP sponsor, in accordance with 24 CFR 92.253(a).

A HOME-ARP sponsor is a nonprofit organization that provides housing or supportive services to qualifying households and facilitates the leasing of a rental unit to a qualifying household or the use and maintenance of HOME-ARP TBRA by a qualifying household.

PJs may permit a HOME-ARP sponsor, as defined in Section VI.B.19, to execute a lease or master lease with a project owner. The HOME-ARP sponsor must then sublease a unit to a qualifying household. The lease between the qualifying household and the rental unit owner or the sublease between the HOME-ARP sponsor and the qualifying household cannot contain any of the prohibited lease terms specified in 24 CFR 92.253(b).

3. Eligible Costs: Eligible costs under HOME-ARP TBRA include rental assistance, security deposit payments, and utility deposit assistance to qualifying households. HOME-ARP funds may be used to pay for up to 100% of these eligible costs. A PJ may use HOME-ARP TBRA funds to provide loans or grants to qualifying households for security deposits for rental units regardless of whether the PJ provides any other HOME-ARP TBRA assistance.

The amount of funds that may be provided for a security deposit may not exceed the equivalent of two months’ rent for the unit. Utility deposit assistance is an eligible cost only if rental assistance or a security deposit payment is provided. Costs of inspecting the housing are also eligible as costs of HOME-ARP TBRA. Administration of HOME-ARP TBRA is an eligible cost only if executed in accordance with general management oversight and coordination at 24 CFR 92.207(a), except that the costs of inspecting the housing and determining the income eligibility of the family are eligible project costs under HOME-ARP TBRA.

4. Ineligible Costs: HOME-ARP TBRA may not be used to pay for the homebuyer program as defined at 24 CFR 92.209(c)(2)(iv).

5. Portability of Assistance: A PJ may require the HOME-ARP TBRA assisted household to use HOME-ARP TBRA within the PJ's boundaries or may permit the household to use the assistance outside its boundaries pursuant to 24 CFR 92.209(d).

6. Term of Rental Assistance Contract: The requirements at 24 CFR 92.209(e) defining the term of the rental assistance contract for providing assistance with HOME funds are waived for HOME-ARP TBRA. The PJ must determine the maximum term of the rental assistance contract. The rental assistance contract continues until the end of the rental assistance contract term, as determined by the PJ, or until the lease or sublease is terminated, whichever occurs first. The term of the rental assistance contract may be renewed, subject to the availability of HOME-ARP funds. The term of the rental assistance contract must begin on the first day of the term of the lease or sublease. HOME-ARP TBRA funds cannot be used after the end of the budget period.

7. Maximum Subsidy: The PJ must establish policies for the allowable maximum subsidy, which may differ from the maximum subsidy requirements at 24 CFR 92.209(h). PJs may DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 40 provide up to 100 percent subsidy for rent, security deposit payments, and utility bills. The PJ must also establish policies for determining any household contribution to rent based on a determination of the qualifying household’s income.

8. Rent Standard: Consistent with 24 CFR 92.209(h)(3), PJs must also establish a rent standard for HOME-ARP TBRA by unit size that is based upon local market conditions or the section 8 Housing Choice Voucher program under 24 CFR part 982. The PJ must determine whether the rent for a HOME-ARP TBRA household complies with the rent standard established by the PJ for the HOME-ARP program and must disapprove a lease if the rent does not meet the PJ’s rent standard for HOME-ARP TBRA.

9. Housing Quality Standards: Housing occupied by a household receiving HOME-ARP TBRA must comply with all housing quality standards required in 24 CFR 982.401 (or successor inspection standards issued by HUD) unless the tenant is residing in a HOME or HOME-ARP unit, in which case the PJ may defer to initial and ongoing inspection standards.

10. Program Operation: The PJ may operate HOME-ARP TBRA itself or may contract with a PHA or other entity with the capacity to operate a rental assistance program. In either case, the PJ or entity operating the program must approve the lease. HOME-ARP TBRA may be provided through an assistance contract with (1) an owner that leases a unit to a qualifying household; (2) the qualifying household, or (3) an owner and the qualifying household in a tri-party contract. In the case of HOME-ARP TBRA provided in coordination with a HOME-ARP sponsor, as described below, the PJ may require that payments be made directly to the HOME-ARP sponsor that will make rental payments to the owner on behalf of the qualifying household or require payments directly to the owner of the unit.

11. HOME-ARP TBRA with a HOME-ARP Sponsor: HOME-ARP TBRA may be provided in coordination with a HOME-ARP sponsor. As defined in Section VI.B.19, a HOME-ARP sponsor is a nonprofit organization that provides housing or supportive services to qualifying households and facilitates the leasing of a HOME-ARP rental unit to a qualifying household or the use and maintenance of HOME-ARP TBRA by a qualifying household. A HOME-ARP sponsor may make rental subsidy payments and a security deposit payment on behalf of a qualifying household. Under HOME-ARP TBRA, a qualifying household may reside in housing leased by a HOME-ARP sponsor if there is a sublease that complies with HOME-ARP lease requirements between the HOME-ARP sponsor and the qualifying household.

a. Rental Assistance Contract: There must be a rental assistance contract between the PJ and at least one of the following:
 HOME-ARP sponsor;
 Qualifying household; or
 Owner of the housing.

Rental subsidy payments are made on behalf of the HOME-ARP TBRA household pursuant to a rental assistance contract. The rental assistance contract continues until the DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 41 lease is terminated or the term of the rental assistance contract expires (and is not renewed). Regardless of the role of the HOME-ARP sponsor, the HOME-ARP TBRA household has the right to continued HOME-ARP TBRA assistance if the household chooses to move from the unit. HOME-ARP TBRA funds cannot be used beyond the end of the HOME-ARP budget period.

The HOME-ARP sponsor may only receive the TBRA subsidy directly from the PJ on behalf of the qualifying household if the rental assistance contract is between the HOME-ARP sponsor and the PJ or the HOME-ARP sponsor and the PJ have entered into a written agreement as outlined below. The HOME-ARP sponsor must make rental subsidy payments to the owner on behalf of the qualifying household per the terms and conditions of the HOME-ARP TBRA contract or written agreement with the PJ. When the HOME-ARP TBRA assisted household moves to a new unit, the HOME-ARP sponsor is not required to continue its sponsor relationship with the HOME-ARP TBRA assisted household for the new rental unit but may do so with the consent of the HOME- ARP TBRA household.

The PJ must establish policies and procedures regarding termination of HOME-ARP TBRA assistance for qualifying households who are absent from the rental unit for a minimum of 60 days and where a HOME-ARP sponsor is leasing the rental unit and subleasing to the qualifying household or providing HOME-ARP TBRA rental subsidy payments on behalf of the household.

b. Lease and Sublease: PJs must require and verify that each household that receives HOME-ARP TBRA assistance has an executed lease that complies with the tenant protection requirements of this Notice. The lease agreement may be between the project owner and the HOME-ARP TBRA household, or PJs may permit a HOME-ARP sponsor to execute a lease with an owner for an individual unit or a master lease for more than one unit restricted for occupancy by HOME-ARP TBRA households. If the lease agreement is between the HOME-ARP sponsor and owner, the HOME-ARP sponsor must execute a sublease agreement with a HOME-ARP TBRA household. The sublease between the HOME-ARP sponsor and the HOME-ARP TBRA household must meet the tenant protection requirements of this Notice.

c. Written Agreement with HOME-ARP Sponsor: The PJ must enter into a written agreement with the HOME-ARP sponsor if the HOME-ARP TBRA rental assistance contract is not with the HOME-ARP sponsor and the HOME-ARP sponsor will receive the HOME-ARP TBRA subsidy directly from the PJ. The written agreement must specify the requirements for the HOME-ARP sponsor receiving the HOME-ARP TBRA subsidy on behalf of the qualifying household and the HOME-ARP sponsor’s obligation to provide the HOME-ARP TBRA payment to the owner for the unit’s required rent.

12. Project Completion: Project completion for a HOME-ARP TBRA project means the final drawdown has been disbursed for the project.

HOME-ARP funds may be used to provide a broad range of supportive services to qualifying individuals or families as a separate activity or in combination with other HOME-ARP activities. Supportive services include: a) services listed in section 401(29) of the McKinney- Vento Homeless Assistance Act (“McKinney-Vento Supportive Services”)1 (42 U.S.C. 11360(29)); b) homelessness prevention services , as described in Section VI.D.3. and D.4 below; and c) housing counseling services.

1. Eligible Program Participants: Supportive services may be provided to individuals and families who meet the definition of a qualifying population under Section IV.A of this Notice and who are not already receiving these services through another program. Program participants in other HOME-ARP activities are eligible for supportive services under this Notice in accordance with policies and procedures developed by the PJ. These policies and procedures should identify the length of time that program participants may be served by HOME-ARP TBRA and/or HOME ARP rental housing before they will no longer be eligible as a qualifying population for purposes of this section.

2. Client Selection: HOME-ARP funds may only be used to provide supportive services to individuals or families that meet the definition of a qualifying population in Section IV.A of this Notice. PJs must develop policies and procedures for the selection of program participants for services under this section of the Notice that comply with Section IV.C and this section of this Notice.

3. Eligible Supportive Services under HOME-ARP: There are three categories specifically included as supportive services under HOME-ARP:

a. McKinney-Vento Supportive Services: McKinney-Vento Supportive Services under HOME-ARP are adapted from the services listed in section 401(29) of McKinney- Vento.

b. Homelessness Prevention Services: HOME-ARP Homelessness Prevention Services are adapted from eligible homelessness prevention services under the regulations at 24 CFR 576.102, 24 CFR 576.103, 24 CFR 576.105, and 24 CFR 576.106, and are revised, supplemented, and streamlined in Section VI.D.4.c.i below.

c. Housing Counseling Services: Housing counseling services under HOME-ARP are those consistent with the definition of housing counseling and housing counseling services defined at 24 CFR 5.100 and 5.111, respectively, except where otherwise noted.

The requirements at 24 CFR 5.111 state that any housing counseling, as defined in 24 CFR 5.100, required under or provided in connection with any program administered by HUD shall be provided only by organizations and counselors certified by the Secretary under 24 CFR part 214 to provide housing counseling, consistent with 12 U.S.C. 1701x.

1 The Consolidated Appropriations Act, 2021 (P.L. 116-260) enacted changes that renumbered section 401(27) to (29) of McKinney-Vento.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 43 HUD-approved Housing Counseling Agencies can be found on HUD’s website at:
http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/hcc.

Program requirements and administration under 24 CFR part 214 apply to the provision of HOME-ARP Housing Counseling supportive services except those provisions related to current homeowners do not apply. Eligible HOME-ARP topics under Housing Counseling include but are not limited to the following examples:

Rental Housing
Counseling Topics
(24 CFR 214.300(e)(4))
Pre-Purchase Homebuying
Topics
(24 CFR 214.300(e)(1))
Homeless Services Topics
(24 CFR 214.300(e)(5))
HUD rental and rent
subsidy programs
Advice regarding readiness
and preparation
Homeless assistance
information regarding
emergency shelter
Other federal, state, or
local assistance
Federal Housing
Administration insured
financing
Other emergency services
Fair housing Housing selection and
mobility
Transitional housing
Rental search assistance Housing search assistance Referral to local, state, and federal resources (24 CFR
214.300(b)(2))
Landlord tenant laws Fair housing and predatory
lending

Lease terms Budgeting and credit
Rent delinquency Loan product comparison
Referrals to local, state,
and federal resources
Purchase procedures and
closing costs

Referrals to local, state, and
federal resources

Housing Counseling surrounding the following topics are ineligible under HOME-ARP:

 Resolving or preventing mortgage delinquency, including, but not limited to default and foreclosure, loss mitigation, budgeting, and credit;  Home maintenance and financial management for homeowners, including, but not limited to: Escrow funds, budgeting, refinancing, home equity, home improvement, utility costs, energy efficiency, rights and responsibilities of homeowners, and reverse mortgages.

In accordance with 24 CFR 214.300(a)(2), housing counselors must establish an action plan for each participating qualifying individual or family. Additionally, as per 24 CFR DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 44 214.300(c), housing counselors must also make reasonable efforts to have follow-up communications with participating qualifying individuals, when possible, to assure that the individual or family is progressing toward the housing goal established in the plan, to modify or terminate housing counseling, and to learn and report outcomes.

4. Eligible Costs of Supportive Services for Qualifying Individuals and Families: HOME- ARP funds may be used to pay eligible costs associated with the HOME-ARP supportive services activity in accordance with the requirements in this Notice. Eligible costs that may be paid using HOME-ARP funds are limited to only those identified in Section VI.D.4.c below. Any ineligible costs paid using HOME-ARP funds must be repaid in accordance with the requirements of this Notice.

HUD has used its discretion in ARP to include eligible costs for supportive services that are necessary to assist the qualifying populations, prevent homelessness, or to enable qualifying households to obtain and maintain housing. The list of eligible costs associated with McKinney-Vento Supportive Services and Homelessness Prevention Services is in Section VI.D.4.c.i of this Notice.

While all qualifying households are eligible to receive supportive services under this activity, the PJ must establish requirements for documenting eligible costs for an individual or family in a qualifying population (as defined in Section IV.A of this Notice) as McKinney-Vento supportive services, homelessness prevention services, or Housing Counseling.

If a person is homeless, then the person is eligible to be provided the supportive services as McKinney-Vento supportive services for the costs allowable in Section VI.D.4.c below. If a person is housed and the supportive services are intended to help the program participant regain stability in the program participant’s current permanent housing or move into other permanent housing to achieve stability in that housing then the person is eligible for homelessness prevention services for the costs allowable in Section VI.D.4.c.i below.

Housing Counseling services may be provided regardless of whether a person is homeless or currently housed.

PJs must document in their files which types of supportive services they wish to offer program participants. If PJs are using a supportive services provider, PJs must document in their written agreements with supportive service providers whether they are authorizing McKinney-Vento supportive services, homelessness prevention services, Housing Counseling services or some combination of the three. Only the supportive services that are authorized in the written agreement with the supportive service provider may be provided to program participants by that supportive service provider and only program participants that are eligible for those supportive services may be served. As such, supportive services providers must demonstrate through their documentation that the individuals served were eligible to receive the supportive services that were authorized under the written agreement in order for those costs to be eligible.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 45 Consistent with the requirements in this section, the PJ may set a maximum dollar amount that a program participant may receive for each type of service described in Section VI.D.4.c. below and may also set a maximum period for which a program participant may receive any of the types of assistance or services.

a. Oversight of Eligible Costs: All supportive service costs paid for by HOME-ARP must comply with the requirements of this Notice, including requirements in 2 CFR part 200, subpart E, Cost Principles that require costs be necessary and reasonable. If a qualifying household is already receiving the same eligible supportive service or has been approved to receive the same service through another program or provider, the program participant does not have a need for the HOME-ARP service and the costs related to the service do not comply with the Cost Principles. The PJ is responsible for establishing requirements that allow a program participant to receive only the HOME-ARP services needed so there is no duplication of services or assistance in the use of HOME-ARP funds for supportive services. This may include the use of systems such as Homeless Management Information Systems in coordination with local supportive service providers, CoCs, and other nonprofit organizations.

b. Direct provision of services: PJs contracting with service providers engaged directly in the provision of services under the HOME-ARP eligible supportive services categories, shall have written agreements or contracts that comply with the requirements of this Notice and, to the extent practicable, enter into agreements or contracts in amounts that cover the actual total program costs and administrative overhead to provide the services contracted.

If the services outlined in paragraph c. below are being directly delivered by the PJ or a subrecipient, the following costs are eligible project delivery costs for those services:
 the costs of labor or supplies and materials incurred by the PJ or subrecipient in directly providing supportive services to program participants.  the salary and benefit packages of the PJ and subrecipient staff who directly deliver the services.

These project delivery costs must be attributable to the identifiable objective of the service delivered, otherwise they are administrative costs of the PJ or subrecipient. c. Eligible Costs:

i. Eligible Costs for McKinney Vento Supportive Services and Homelessness Prevention Services: Eligible costs for supportive services under either of these two categories include costs associated with the following services:

(A) Child care: The costs of child care for program participants, including providing meals and snacks, and comprehensive and coordinated developmental activities, are eligible. The child care center must be licensed by the jurisdiction in which it operates in order for its costs to be eligible. The following conditions also apply:

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 46  Children must be under the age of 13 unless the children have a disability.  Children with a disability must be under the age of 18.

(B) Education services: The costs of improving knowledge and basic educational skills are eligible costs including:

 Instruction or training in consumer education, health education, substance abuse prevention, literacy, English as a Second Language, and General Educational Development (GED).
 Screening, assessment, and testing; individual or group instruction; tutoring; provision of books, supplies, and instructional material; counseling; and referral to community resources.

(C) Employment assistance and job training: The costs of establishing and/or operating employment assistance and job training programs are eligible, including classroom, online and/or computer instruction, on-the-job instruction, services that assist individuals in securing employment, acquiring learning skills, and/or increasing earning potential. The cost of providing reasonable stipends to program participants in employment assistance and job training programs is also an eligible cost.
 Learning skills include those skills that can be used to secure and retain a job, including the acquisition of vocational licenses and/or certificates.  Services that assist individuals in securing employment consist of:
 Employment screening, assessment, or testing;
 Structured job skills and job-seeking skills;
 Special training and tutoring, including literacy training and pre- vocational training;
 Books and instructional material;
 Counseling or job coaching; and
 Referral to community resources.

(D) Food: The cost of providing meals or groceries to program participants is eligible.

(E) Housing search and counseling services: Costs of assisting eligible program participants to locate, obtain, and retain suitable housing are eligible. Services are:
 Development of an action plan for locating housing;
 Housing search;
 Tenant counseling;
 Securing utilities;
 Making moving arrangements;
 Outreach to and negotiation with owners;
 Assistance submitting rental applications and understanding leases;  Assessment of housing for compliance with HOME-ARP requirements for TBRA assistance in Section VI.C of this Notice and financial DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 47 assistance for short-term and medium-term rental payments provided under Section VI.D.4.c.i.(R) below;
 Assistance obtaining utilities; and
 Tenant counseling;
 Mediation with property owners and landlords on behalf of eligible program participants;
 Credit counseling, accessing a free personal credit report, and resolving personal credit issues; and
 Payment of rental application fees;
 Other Housing counseling costs, as defined in 24 CFR 5.100, funded with or provided in connection with grant funds must be carried out in accordance with 24 CFR 5.111.

Please Note: When PJs or subrecipients provide housing services to eligible persons that are incidental to a larger set of holistic case management services, these services do not meet the definition of Housing counseling, as defined in 24 CFR 5.100, and therefore are not required to be carried out in accordance with the certification requirements of 24 CFR 5.111.

(F) Legal services: Eligible costs are the fees charged by licensed attorneys and by person(s) under the supervision of licensed attorneys, for advice and representation in matters that interfere with a qualifying individual or family's ability to obtain and retain housing.
 Eligible subject matters are child support; guardianship; paternity; emancipation; legal separation; orders of protection and other legal remedies for victims of domestic violence, dating violence, sexual assault, human trafficking, and stalking; appeal of veterans and public benefit claim denials; landlord-tenant disputes; and the resolution of outstanding criminal warrants; landlord/tenant matters, provided that the services must be necessary to resolve a legal problem that prohibits the program participant from obtaining permanent housing or will likely result in the program participant losing the permanent housing in which the program participant currently resides.
 Legal services for immigration and citizenship matters and for issues related to mortgages and homeownership are ineligible. Retainer fee arrangements and contingency fee arrangements are prohibited.  Services may include client intake, receiving and preparing cases for trial, provision of legal advice, representation at hearings, and counseling.
 Fees based on the actual service performed (i.e., fee for service) are also eligible, but only if the cost would be less than the cost of hourly fees.

Filing fees and other necessary court costs are also eligible. If the subrecipient is a legal services provider and performs the services itself, the eligible costs are the subrecipient's employees' salaries and other costs necessary to perform the services.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 48 (G) Life skills training: The costs of teaching critical life management skills that may never have been learned or have been lost during the course of physical or mental illness, domestic violence, dating violence, sexual assault, stalking, human trafficking, substance abuse, and homelessness are eligible. These services must be necessary to assist the program participant to function independently in the community. Life skills training includes:
 the budgeting of resources and money management, household management, conflict management, shopping for food and other needed items, nutrition, the use of public transportation, and parent training.

(H) Mental health services: Eligible costs are the direct outpatient treatment of mental health conditions that are provided by licensed professionals.  Mental health services are the application of therapeutic processes to personal, family, situational, or occupational problems in order to bring about positive resolution of the problem or improved individual or family functioning or circumstances. Problem areas may include family and marital relationships, parent-child problems, or symptom management.  Services are crisis interventions; counseling; individual, family, or group therapy sessions; the prescription of psychotropic medications or explanations about the use and management of medications; and combinations of therapeutic approaches to address multiple problems.

(I) Outpatient health services: Eligible costs are the direct outpatient treatment of medical conditions when provided by licensed medical professionals including:
 Providing an analysis or assessment of a program participant’s health problems and the development of a treatment plan;
 Assisting program participants to understand their health needs;  Providing directly or assisting program participants to obtain and utilize appropriate medical treatment;
 Preventive medical care and health maintenance services, including in- home health services and emergency medical services;
 Provision of appropriate medication;
 Providing follow-up services; and
 Preventive and non-cosmetic dental care.

(J) Outreach services: The costs of activities to engage qualified populations for the purpose of providing immediate support and intervention, as well as identifying potential program participants, are eligible.  Eligible costs include the outreach worker's transportation costs and a cell phone to be used by the individual performing the outreach.  Costs associated with the following services are eligible: initial assessment; crisis counseling; addressing urgent physical needs, such as providing meals, blankets, clothes, or toiletries; actively connecting and providing people with information and referrals to homeless and DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 49 mainstream programs; and publicizing the availability of the housing and/or services provided within the PJ’s geographic area.

(K) Substance abuse treatment services: Eligible substance abuse treatment services are designed to prevent, reduce, eliminate, or deter relapse of substance abuse or addictive behaviors and are provided by licensed or certified professionals. The costs include:
 Program participant intake and assessment;
 Outpatient treatment;
 Group and individual counseling
 Drug testing;
 Inpatient detoxification and other inpatient drug or alcohol treatment are ineligible.

(L) Transportation: Eligible costs are:
 The costs of program participant's travel on public transportation or in a vehicle provided by the PJ or subrecipient to and from medical care, employment, childcare, or other services eligible under this Notice;  Mileage allowance for service workers to visit program participants and to carry out housing inspections;
 The cost of purchasing or leasing a vehicle in which staff transports program participants and/or staff serving program participants;  The cost of gas, insurance, taxes, and maintenance for the vehicle;  The costs of PJ or subrecipient staff to accompany or assist program participants to utilize public transportation; and
 If public transportation options are not sufficient within the area, the PJ may make a one-time payment on behalf of a program participant needing car repairs or maintenance required to operate a personal vehicle, subject to the following:
 Payments for car repairs or maintenance on behalf of the program participant may not exceed 10 percent of the Blue Book value of the vehicle (Blue Book refers to the guidebook that compiles and quotes prices for new and used automobiles and other vehicles of all makes, models, and types);
 Payments for car repairs or maintenance must be paid by the PJ or subrecipient directly to the third party that repairs or maintains the car; and
 PJs or subrecipients may require program participants to share in the cost of car repairs or maintenance as a condition of receiving assistance with car repairs or maintenance.
 The PJ must establish policies and procedures surrounding payments for the cost of gas, insurance, taxes, the one-time payment for car repairs or maintenance described above, and maintenance for vehicles of program participants. Such costs must be limited to program participants with the inability to pay for such costs and who, without such assistance, would not be able to participate in eligible services under this Section VI.D.4.c.i.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 50 (M) Case management: The costs of assessing, arranging, coordinating, and monitoring the delivery of individualized services to meet the needs of the program participant(s) are eligible costs. PJs and subrecipients providing these supportive services must have written standards for providing the assistance.

Eligible costs are those associated with the following services and activities:
 Conducting the initial evaluation, including verifying and documenting eligibility, for individuals and families applying for supportive services;  Counseling;
 Developing, securing, and coordinating services;
 Using a centralized or coordinated assessment system that complies with the requirements of Section IV.C of the Notice;
 Obtaining federal, State, and local benefits;
 Monitoring and evaluating program participant progress;  Providing information and referrals to other providers;  Providing ongoing risk assessment and safety planning with victims of domestic violence, dating violence, sexual assault, stalking, and human trafficking;
 Developing an individualized housing and service plan, including planning a path to permanent housing stability; and
 Conducting re-evaluations of the program participant's eligibility and the types and amounts of assistance the program participant needs.

(N) Mediation: HOME-ARP funds may pay for mediation between the program participant and the owner or person(s) with whom the program participant is living, provided that the mediation is necessary to prevent the program participant from losing permanent housing in which the program participant currently resides.

(O) Credit repair: HOME-ARP funds may pay for credit counseling and other services necessary to assist program participants with critical skills related to household budgeting, managing money, accessing a free personal credit report, and resolving personal credit problems. This assistance does not include the payment or modification of a debt.

(P) Landlord/Tenant Liaison: Costs of liaison services between property managers/owners and program participants are eligible HOME-ARP costs and may include:
 Landlord outreach;
 Physical inspections and rent reasonable studies as needed to secure units;
 Rental application fees and security deposits for clients, in accordance with the financial assistance costs requirements in (R);  Mediation services in (N) for housing issues that may arise between owner, property manager, or other residents and clients; DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 51  Coordination or assistance with the provision of other HOME-ARP eligible services to assist clients to maintain permanent housing.

(Q) Services for special populations: HOME-ARP funds may be used to provide services for special populations, such as victim services, so long as the costs of providing these services are eligible under this section. The term victim services means services that assist program participants who are victims of domestic violence, dating violence, sexual assault, stalking, or human trafficking including services offered by rape crisis centers and domestic violence shelters, and other organizations with a documented history of effective work concerning domestic violence, dating violence, sexual assault, stalking, or human trafficking.

(R) Financial assistance costs: HOME-ARP funds may be used to pay housing owners, utility companies, and other third parties for the following costs, as applicable:

 Rental application fees: Rental housing application fee that is charged by the owner to all applicants.
 Security deposits: A security deposit that is equal to no more than 2 months’ rent. This assistance is separate and distinct from the provision of financial assistance for First and Last Month’s rent provided under this section and cannot be used to duplicate those costs.
 Utility deposits: HOME-ARP funds may pay for a standard utility deposit or initiation fee required by the utility company or owner (if owner-paid utilities are provided) for all program participants for the following utilities:
 Gas
 Electric
 Water
 Sewer
 Utility payments: HOME-ARP funds may pay for up to 24 months of utility payments per program participant, per service, including up to 6 months of utility payments in arrears, per service. A partial payment of a utility bill counts as one month. This assistance may only be provided if the program participant or a member of the same household has an account in his or her name with a utility company or proof of responsibility to make utility payments. Eligible utility services are gas, electric, water, and sewage. No program participant shall receive more than 24 months of utility assistance within any 3-year period.  Moving costs: HOME-ARP funds may pay for moving costs, such as truck rental or hiring a moving company. This assistance may include payment of temporary storage fees for up to 3 months, provided that the fees are accrued after the date the program participant begins receiving assistance under this section of the Notice and before the program participant moves into permanent housing. Payment of temporary storage fees in arrears is not eligible.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 52  First and Last month's rent: If necessary to obtain housing for a program participant, HOME-ARP funds may be used to make a pre-payment of the first and last month's rent under a new lease to the owner at the time the owner is paid the security deposit for the program participant’s tenancy in the housing. This assistance must not exceed two month's rent and must be tracked for purposes of determining the total short- and medium-term financial assistance for rent that the program participant may receive. This assistance is separate and distinct from financial assistance for Security Deposits provided under this section and cannot be used to duplicate those costs.
 Payment of rental arrears: HOME-ARP funds may be used for a one- time payment for up to 6 months of rent in arrears, including any late fees or charges on those arrears, if necessary for the household to maintain their existing housing or, for those without housing, if necessary to remove a demonstrated barrier to obtaining housing.

(S) Short-term and medium-term financial assistance for rent: Subject to the following conditions, a PJ may provide a program participant with short-term or medium-term financial assistance for rent, provided that the total financial assistance provided, including any pre-payment of first and last month’s rent as described above, does not exceed 24 months of rental payments over any 3-year period.
 Short-term means up to 3 months.
 Medium-term means more than 3 months but not more than 24 months.  The PJ may make rental payments only to an owner with whom the PJ has entered into a financial assistance agreement for rental payment. The financial assistance agreement must set forth the terms under which rental payments will be provided, including the requirements that apply under this Notice. The financial assistance agreement must provide that, during the term of the agreement, the owner must give the PJ a copy of any notice to the program participant to vacate the housing unit or any complaint used under State or local law to commence an eviction action against the program participant. The owner must serve written notice upon the program participant at least 30 days before termination of tenancy specifying the grounds for the action. Each financial assistance agreement that is executed or renewed must comply with the requirements in 24 CFR 92.359.
 The PJ must make timely payments to each owner in accordance with the financial assistance agreement. The financial assistance agreement must contain the same payment due date, grace period, and late payment penalty requirements as the program participant's lease. The PJ is solely responsible for paying late payment penalties that it incurs with non- HOME-ARP funds.
 Rental payments cannot be provided unless the rent does not exceed the Fair Market Rent established by HUD, as provided under 24 CFR DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 53 part 888, and complies with HUD's standard of rent reasonableness, as established under 24 CFR 982.507.
 Each program participant receiving financial assistance for rental payments must have a legally binding, written lease for the rental unit, unless the assistance is solely for rental arrears. The lease must be between the owner and the program participant. Where the financial assistance is solely for rental arrears, an oral agreement may be accepted in place of a written lease, if the agreement gives the program participant an enforceable leasehold interest under state law and the agreement and rent owed are sufficiently documented by the owner's financial records, rent ledgers, or canceled checks. New leases must have an initial term of 1 year unless a shorter period is agreed upon by the program participant and owner. The lease requirements in 24 CFR 92.359 apply to this financial assistance.  PJs must establish requirements to prevent the provision of short- or medium-term financial assistance for rent for the same period for which a program participant is receiving rental assistance or living in housing provided with ongoing assistance (such as project-based rental assistance or operating subsidies).
 If a program participant receiving financial assistance for short- or medium-term rental payments under this section meets the conditions for an emergency transfer under 24 CFR 5.2005(e), HOME-ARP funds may be used to pay amounts owed for breaking a lease to effectuate an emergency transfer. These costs are not subject to the 24-month limit on rental payments.

Ineligible costs - Financial assistance cannot be provided to a program participant who is receiving the same type of assistance through other public sources. Financial assistance also cannot be provided to a program participant who has been provided with replacement housing payments under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (42 USC 4601 et seq.) and its implementing regulations at 49 CFR part 24, or Section 104(d) of the Housing and Community Development Act of 1974 (42 USC 5304(d) and its implementing regulations at 24 CFR part 42, during the period of time covered by the replacement housing payments.

ii. Eligible Costs Associated with Housing Counseling under 24 CFR 5.100 and

5.111: Costs associated with housing counseling services as defined at 24 CFR

5.100 and 5.111 are eligible under HOME-ARP. As homeowner assistance and related services are not eligible HOME-ARP activities, costs for the provision of services related to mortgages and homeownership to existing homeowners are also not eligible under HOME-ARP. If a program participant is a candidate for homeownership, costs associated with pre-purchase homebuying counseling, education and outreach are eligible under HOME-ARP. Eligible costs are those costs associated with the services listed in 24 CFR part 214 and include, but are not limited to:

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 54 (A) Staff salaries and overhead costs of HUD-certified housing counseling agencies related to directly providing eligible housing counseling services to HOME-ARP program participants;
(B) Development of a housing counseling workplan;
(C) Marketing and outreach;
(D) Intake;
(E) Financial and housing affordability analysis;
(F) Action plans that outline what the housing counseling agency and the client will do to meet the client's housing goals and that address the client's housing problem(s);
(G) Follow-up communication with program participants.

5. Termination of assistance to program participants:

a. Termination of assistance: The PJ may terminate assistance to a program participant who violates program requirements or conditions of occupancy or no longer needs the services as determined by the PJ. Termination under this section does not bar the PJ from providing further assistance at a later date to the same individual or family under this Notice.

b. Due process: The PJ must establish policies and procedures for termination of assistance to program participants. In terminating assistance to a program participant, the PJ must provide a formal process that recognizes the rights of individuals receiving assistance under the due process of law. This process, at a minimum, must consist of:
i. Providing the program participant with a written copy of the program rules and the termination process before the participant begins to receive assistance; ii. Written notice to the program participant containing a clear statement of the reasons for termination;
iii. A review of the decision, in which the program participant is given the opportunity to present written or oral objections before a person other than the person (or a subordinate of that person) who made or approved the termination decision; and
iv. Prompt written notice of the final decision to the program participant.

During this process, the PJ must provide effective communication and accessibility for individuals with disabilities, including the provision of reasonable accommodations.

Similarly, the PJ must provide meaningful access to persons with LEP.

6. Commitment: For supportive services, commitment means that before disbursing any HOME-ARP funds to any entity, the PJ executed a legally binding written agreement that complies with HOME-ARP requirements with the contractor or subrecipient providing the supportive service (that includes the date of the signature of each person signing the agreement).

7. Policies and Procedures: PJs must establish the following policies and procedures in compliance with this notice:

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 55 a. Tenant selection procedures in accordance with Section IV.C.2 and this section; b. Eligibility of program participants in other HOME-ARP activities for supportive services under Section VI.D.4.c.i above including the length of time that program participants may be served by HOME-ARP TBRA and/or HOME ARP rental housing before they will no longer be eligible as a qualifying population for purposes of this section;
c. If the PJ chooses to set maximum amounts and/or maximum periods for assistance or services, the maximum dollar amount that a program participant may receive for each type of service described in Section VI.D.4.c.i above and/or maximum periods for which a program participant may receive any of the types of assistance or services under this section;
d. Documentation of eligible costs;
e. Requirements that allow a program participant to receive only the HOME-ARP services needed so there is no duplication of services or assistance in the use of HOME-ARP funds for supportive services;
f. Payments for the cost of gas, insurance, taxes, the one-time payment for car repairs or maintenance described above, and maintenance for vehicles of program participants; g. Financial assistance for short-term and medium-term rental payments under this Notice, including requirements to prevent a duplication of rental or financial assistance provided to a program participant;
h. Housing stability case management; and
i. Termination of assistance to program participants.

8. Project Completion: Project completion for a HOME-ARP Supportive Services project means the final drawdown has been disbursed for the project.

E. Acquisition and Development of Non-Congregate Shelter A non-congregate shelter (NCS) is one or more buildings that provide private units or rooms as temporary shelter to individuals and families and does not require occupants to sign a lease or occupancy agreement. HOME-ARP funds may be used to acquire and develop HOME-ARP NCS for individuals and families in qualifying populations. This activity may include but is not limited to the acquisition of land and construction of HOME-ARP NCS or acquisition and/or rehabilitation of existing structures such as motels, hotels, or other facilities to be used for HOME-ARP NCS. HOME-ARP funds may not be used to pay the operating costs of HOME- ARP NCS. Consequently, PJs must consider the availability of ongoing operating funds for the HOME-ARP NCS so that the HOME-ARP NCS can remain viable through the restricted use period specified in this Notice.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 56 During the restricted use period, HOME-ARP NCS may:
 Remain as HOME-ARP NCS in compliance with the requirements of this Notice.  Be used as a non-congregate emergency shelter under the Emergency Solutions Grants (ESG) program (Subtitle B of title IV of the McKinney-Vento Homeless Assistance Act) (42 USC 11371 et seq.), in which case the non-congregate shelter must be operated in compliance with all requirements at 24 CFR part 576 that apply when ESG funds are provided for operating costs or essential services in the shelter. During any period for which ESG funds are provided, the applicable ESG requirements shall govern in the event of any conflict with HOME-ARP requirements.
 Be converted to permanent affordable housing according to the requirements established in Section VI.E.11 of this Notice.
 Be converted to permanent housing as defined in Subtitle C of title IV of the McKinney- Vento Homeless Assistance Act (42 USC 11381 et seq.) according to requirements of this Notice and 24 CFR part 578.

1. Admission and Occupancy: HOME-ARP NCS units may only be occupied by individuals or families that meet the criteria for one or more of the qualifying populations as defined in Section IV.A. of this Notice. Where applicable, occupancy of NCS units by qualifying populations must be in accordance with the requirements in Section IV.C of this Notice.

The PJ must not allow qualifying populations to be charged occupancy fees or other charges to occupy a HOME-ARP NCS unit unless the PJ determines such fees and charges to be customary and reasonable and the charges comply with 24 CFR 578.77(b).

To ensure that access to HOME-ARP NCS by qualifying populations is effectively integrated with other assistance and services, PJs are encouraged to incorporate each HOME-ARP NCS into the CE established by the CoC(s) for the area the NCS is funded to serve, provided that the CE is used in accordance with Section IV.C of this Notice. Whether or not packaged with NCS funding, HOME-ARP supportive services may also be provided as needed to qualifying individuals and families served by the HOME-ARP NCS in accordance with the requirements contained in Section VI.D of this Notice.

No individual or family may be denied admission to or removed from a HOME-ARP NCS unit on the basis or as a direct result of the fact that the individual or family is or has been a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking if the individual or family meets the criteria of one of the qualifying populations.

2. Eligible Activities: HOME-ARP funds may be used to acquire and/or rehabilitate or construct HOME-ARP NCS units to serve qualifying populations. Acquisition of vacant land or demolition of existing structures may be undertaken only as part of a HOME-ARP NCS project. HOME-ARP NCS units acquired and/or developed with HOME-ARP funds must meet the requirements of this Notice, i.e., be used as HOME-ARP NCS or used as emergency shelter under ESG for the restricted use period established in Section VI.E.9 of this Notice.

3. Eligible Costs: HOME-ARP funds may be used for actual costs of acquiring NCS or developing HOME-ARP NCS as follows:

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 57 a. Acquisition Costs: Costs to acquire improved or unimproved real property. b. Demolition Costs: Costs of demolishing existing structures for the purpose of developing HOME-ARP NCS.
c. Development Hard Costs: Costs identified in 24 CFR 92.206(a) to rehabilitate or construct HOME-ARP NCS units, except costs must be for meeting the physical standards established in Section VI.E.7 of this Notice. d. Site Improvements: Costs to make improvements to the project site, including installation of utilities or utility connections, and the construction or rehabilitation of laundry, community facilities, on-site management, or supportive service offices. e. Related Soft Costs: Reasonable and necessary costs incurred by the PJ and owner associated with the financing, acquisition, and development of HOME-ARP NCS projects, including costs identified in 24 CFR 92.206(d) with the following exceptions:
i. Costs to provide information services such as affirmative marketing to prospective homeowners and tenants are not eligible.
ii. Costs of funding an initial operating deficit reserve are not eligible. iii. Costs of project-specific assistance to community housing development organizations, including technical assistance and site control loans or seed money loans as specified in 24 CFR 92.301 are not eligible. f. Replacement Reserve: Costs to capitalize a replacement reserve to pay the reasonable and necessary costs of replacing major systems and their components whose useful life will end during the restricted use period. Major systems include structural support, roofing, cladding, and weatherproofing, plumbing, electrical and HVAC. The costs of replacing major systems must be determined through a Capital Needs Assessment or documented in writing after an inspection by the PJ or PJ-selected contractor to assess the remaining useful life of major systems expected upon completion of the HOME- ARP NCS project. The costs of a replacement reserve must be included in the project budget in the written agreement along with a list of major systems to be replaced with the reserve and projected replacement schedule during the restricted use period (i.e., reserve for replacement analysis). Rehabilitation planned to be completed with HOME- ARP NCS reserve funds at a later date must be included in IDIS as a rehabilitation activity at initial commitment.

4. Prohibited Costs: HOME-ARP funds may not be used to:
a. Pay any operating costs of a HOME-ARP NCS project.
b. Provide additional HOME-ARP investment in a HOME-ARP NCS project during the restricted use period, except that additional HOME-ARP funds can be invested in the project up to one year after project completion in IDIS for eligible costs.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 58 c. Pay costs of a conversion of HOME-ARP NCS as described in Section VI.E.11 of this Notice.
d. Provide non-Federal matching contributions required under any other Federal program. e. Provide assistance for uses authorized under section 9 of the U.S. Housing Act of 1937 (42 U.S.C. 1437g) (Public Housing Capital and Operating Funds). f. Provide assistance to eligible low-income housing under 24 CFR part 248 (Prepayment of Low-Income Housing Mortgages).
g. Pay for the acquisition of property owned by the PJ, except for property acquired by the PJ with HOME-ARP NCS funds, or property acquired in anticipation of carrying out a HOME-ARP NCS project.
h. Pay delinquent taxes, fees, or charges on properties to be assisted with HOME-ARP NCS funds.
i. Pay for any cost that is not eligible under this Notice.

5. Commitment: PJs must commit HOME-ARP funds before disbursing funds for a HOME- ARP NCS project. HOME-ARP funds are committed to a HOME-ARP NCS project when the PJ executes a legally binding written agreement that meets the requirements in this Notice.

If the project is an acquisition-only activity, the PJ may commit HOME-ARP funds if it reasonably expects the project will be operated as HOME-ARP NCS within 6 months of the date of acquisition. Acquisition-only HOME-ARP NCS projects may be performed when the PJ reasonably determines that the units acquired will not require rehabilitation to meet the property standards in Section VI.E.7 of this Notice. If the project is not in active use as HOME-ARP NCS within 6 months of the acquisition, HUD may require the PJ to submit a schedule for placing the project into operation within a period determined by HUD or may require the PJ to repay the funds to its HOME-ARP Treasury Account.

For projects that will involve rehabilitation or new construction with or without acquisition, the PJ may commit HOME-ARP funds if it reasonably expects development to begin within 12 months of the date of commitment.

6. Project Development Due Diligence: HOME-ARP NCS projects must meet the requirements of this Notice for the restricted use period. Consequently, before awarding HOME-ARP funds to a HOME-ARP NCS project, PJs must determine that acquisition and/or development is financially feasible. The PJ is responsible for maintaining continued operation of the NCS in accordance with this Notice throughout the restricted use period.

Therefore, the PJ must consider whether the HOME-ARP NCS project has secured or has a high likelihood of securing operating funding because operating costs cannot be paid with HOME-ARP.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 59 PJs must assess HOME-ARP NCS projects, including a review of information from the owner and/or developer that demonstrates the project’s financial feasibility throughout the restricted use period. Before awarding funds for HOME-ARP NCS, the PJ must:

 Require that the developer submit evidence of appropriate skills and experience related to the development of shelters or similar facilities.  Require the owner to submit evidence of prior experience with operating shelters.  Require an acquisition or development budget, timeline, and sources and uses statement for the acquisition and/or development of the project be submitted for review.
 Require the owner to submit a proposed operating budget, including secured sources for operating costs and any operating gap that will require additional assistance. If there is a gap in the operating budget, the PJ should require the owner to submit a plan for securing additional private, local, state, or Federal funding sufficient for successful operation of the project.

Before committing funds, PJs should also determine whether the owner intends to continue operating the project as HOME-ARP NCS or emergency shelter NCS under ESG for the entire full restricted use period or plans to convert the HOME-ARP NCS to permanent affordable housing or CoC permanent housing during the restricted use period, once the minimum use period for HOME-ARP NCS established in this section is completed. If a HOME-ARP NCS project owner intends to convert the project to CoC permanent housing or permanent supportive housing during the restricted use period, the PJ is encouraged to pursue partnership and leveraging opportunities with the CoC early in the planning stage of a HOME-ARP NCS project. In such instances, the PJ should consider the physical design needs of an eventual conversion in its evaluation of the HOME-ARP NCS project.

7. Property and Habitability Standards: HOME-ARP NCS projects must meet the minimum HOME-ARP property standards prior to occupancy and the HOME-ARP NCS ongoing property standards throughout the restricted use period as described in this Notice.

An “acquisition only” project must meet the HOME-ARP NCS minimum property standards described in paragraph a. below at the time of acquisition. If the project requires rehabilitation or repair to meet the minimum property standards, the project is considered acquisition and rehabilitation irrespective of the source of funds used for the rehabilitation or repair and must meet the NCS rehabilitation standards in paragraph b. below. In addition, PJs must meet the standards required in this Notice for rehabilitation or new construction, as applicable. The PJ must determine that construction contracts and documents describe the work to be completed in adequate detail to establish a basis for inspection to determine that all work was completed to contracted specifications and that the project met the HOME- ARP NCS property standards. Project classification as rehabilitation or new construction is determined by the PJs local code requirements based on specific work to be completed. PJs may also choose to adopt a standard that exceeds the minimum standards described here.

The written agreement must impose the HOME-ARP NCS property standards or the PJ’s locally developed standards and require that the PJ or its representatives have access to the property to perform inspections during development and throughout the restricted use period.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 60 a. Minimum HOME-ARP NCS Property Standards: All HOME-ARP NCS units and common areas must meet all applicable State and local codes, ordinances, and requirements and the applicable provisions of HUD’s Lead Safe Housing Rules at 24 CFR Part 35. In addition, all HOME-ARP NCS projects must meet the following minimum safety, sanitation, accessibility, and privacy standards:
i. Must be structurally sound to protect occupants from the elements and not pose any threat to health and safety of the occupants.
ii. Must be accessible in accordance with section 504 of the Rehabilitation Act (29 U.S.C. 794) and implementing regulations at 24 CFR part 8; the Fair Housing Act (42 U.S.C. 3601 et seq.) and implementing regulations at 24 CFR part 100; and Title II of the Americans with Disabilities Act (42 U.S.C. 12131 et seq.) and implementing regulations at 24 CFR part 35, all as applicable. iii. Must provide each individual or family with an acceptable, individual room to sleep which includes adequate space and security for themselves and their belongings.
iv. Must have a natural or mechanical means of ventilation. The interior air must be free of pollutants at a level that might threaten or harm the health of occupants. v. Must have a water supply free of contamination.
vi. Must have in-unit sanitary facilities that are in proper operating condition and are adequate for personal cleanliness and the disposal of human waste. vii. Must provide necessary heating/cooling facilities in proper operating condition. viii. Must have adequate natural or artificial illumination to permit normal indoor activities and support health and safety. There must be sufficient electrical sources to permit the safe use of electrical appliances. ix. Food preparation areas, if any, must contain suitable space and equipment to store, prepare, and serve food in a safe and sanitary manner. x. Must provide one working smoke detector and one working carbon monoxide detector in each unit. All smoke and carbon monoxide detectors and alarm systems must be designed for hearing-impaired residents. All public areas of the shelter must have at least one working smoke detector and one carbon monoxide detector. There must also be a second means of exiting the building in the event of fire or other emergency.

Minimum HOME-ARP NCS Rehabilitation Standards: HOME-ARP NCS rehabilitation projects must meet all applicable State and local codes, ordinances, and requirements , or in the absence of such codes, International Residential Code or the International Building Code (as applicable), and must comply with the Lead Safe Housing Rule at 24 CFR Part 35. Additionally, PJs must consider the remaining useful life of major systems. PJs are encouraged to use a Capital Needs Assessment to determine the reasonable and necessary investment of HOME-ARP funding in rehabilitation projects and expected cost of ongoing replacement needs during the restricted use period. If HOME-ARP funding will capitalize a replacement reserve, the PJ must determine the remaining useful life of major systems through a Capital Needs Assessment or other PJ inspection documented in writing, in accordance with requirements for capitalized replacement reserve costs in VI.E.3.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 61 Minimum HOME-ARP NCS New Construction Standards: HOME-ARP NCS projects that are newly constructed must meet all applicable State and local codes, ordinances, and requirements, or in the absence of such codes, the International Residential Code or the International Building Code (as applicable to the type of structure). HOME-ARP funds cannot be used to fund a replacement reserve for newly constructed HOME-ARP NCS.

b. On-going Property Standards and Inspections: PJs must develop ongoing inspection procedures to verify that HOME-ARP NCS projects meet the minimum HOME-ARP NCS property standards established in this Notice throughout the restricted use period.

A PJ’s inspection procedures must require annual inspections that are applied consistently to all HOME-ARP NCS projects. When deficiencies are identified, a follow-up inspection to verify that deficiencies are corrected must occur within 6 months. The PJ may establish a list of non-hazardous deficiencies for which correction can be verified by third party documentation (e.g., paid invoice or work order) rather than reinspection. If life-threatening deficiencies exist, the owner or operator of the HOME-ARP NCS must correct such deficiencies immediately. In such instances, the PJ must re-inspect to verify the deficiency has been corrected within 14 days.

8. Project Completion: Project Completion for HOME-ARP NCS means:
 All necessary title transfer requirements and construction work has been performed;  The project complies with the requirements of this Notice, including the HOME- ARP NCS property standards as evidenced by a final inspection;  The project is actively operating as a HOME-ARP NCS;
 Final drawdown of HOME-ARP funds has been disbursed; and  Project completion information is entered into IDIS.

All HOME-ARP NCS projects must be completed within 4 years of the date of commitment of the HOME-ARP funds based on the date of the last signature on the written agreement.

If the PJ fails to complete a project within 4 years of project completion, it must comply with the terminated project requirements at 24 CFR 92.205(e)(2). HOME-ARP NCS rehabilitation and new construction projects must begin operating as active shelters within 6 months after the date of completion of the construction work. If the HOME-ARP NCS project is not in use within 6 months, HUD may require the PJ to submit a schedule for placing the project into operation as an active shelter within a period determined by HUD or may require the PJ to repay the HOME-ARP funds to its HOME-ARP Treasury Account.

9. Restricted Use Period: HOME-ARP NCS projects must comply with the requirements of this Notice for not less than the restricted use period specified in this Notice. PJs must impose the HOME-ARP NCS requirements through a deed restriction, covenant running with the land, legally binding agreement restricting the use of the property and recorded on the property in accordance with State recordation laws, or other mechanism approved by HUD. The use restriction should not identify that the property is prioritized for victims of domestic violence, dating violence, sexual assault, stalking or human trafficking. This use restriction must require that the property is operated as HOME-ARP NCS or non-congregate emergency shelter under ESG for the required restricted use period except that HOME-ARP DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 62 NCS projects may be converted to permanent affordable housing or CoC permanent housing after being operated as HOME-ARP NCS for the applicable minimum use period prior to conversion as described in Section VI.E.11. If the HOME-ARP NCS is converted, the PJ must amend its use restriction to reflect the change in requirements for the remainder of the restricted use period.

The restricted use period begins at project completion as defined in Section VI.E.8 of this Notice and must be imposed for at least the following periods:

a. New Construction: Newly constructed HOME-ARP NCS units must be operated as HOME-ARP NCS units for qualifying populations for a restricted use period of 15 years, regardless of the amount of HOME-ARP funds invested in the project.

b. Rehabilitation: HOME-ARP NCS units which receive any amount of HOME-ARP funds for rehabilitation but are not designated as new construction by the PJ’s state or local building code requirements must be operated as HOME-ARP NCS units for qualifying populations for a restricted use period of 10 years.

c. Acquisition Only: Units acquired for use as HOME-ARP NCS that do not require rehabilitation for occupancy must serve the qualifying populations for a restricted use period of 10 years.

d. PJs may impose longer restricted use periods but must require the project remain financially viable for the extended period.

10. Return of Replacement Reserve: HOME-ARP funds may capitalize a replacement reserve for HOME-ARP NCS projects performing rehabilitation as described in Section VI.E.3 of this Notice. Any unexpended HOME-ARP funds remaining in a project’s replacement reserve at the completion of the restricted use period or upon conversion must be used or returned as follows:

a. If the HOME-ARP NCS project will continue to operate in accordance with the HOME- ARP NCS requirements and serve qualifying households beyond the HOME-ARP NCS restricted use period demonstrated by enforceable restrictions imposed by the PJ in accordance with Section VI.E.9, the project can retain the replacement reserve to pay reasonable and necessary costs of replacing major systems and their components. b. If the HOME-ARP NCS project will not continue to operate in accordance with the HOME-ARP NCS requirements because the NCS is being converted to either CoC permanent housing or permanent affordable housing as described in Section VI.E.11 of this Notice and the HOME-ARP grant is still open, the remaining HOME-ARP funds in the replacement reserve must be returned to the PJ’s HOME Investment Trust Fund Treasury account.

c. If the HOME-ARP NCS grant has expired or is closed out, any remaining HOME-ARP funds in the replacement reserve must be deposited in the PJ’s local HOME account, DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 63 recorded as a program income receipt in IDIS and used for eligible costs under 24 CFR part 92.

11. Conversion of Non-Congregate Shelter to Rental Housing: The ARP authorizes the conversion of HOME-ARP NCS units into permanent housing under subtitle C of title IV of McKinney-Vento or permanent affordable housing as described in this section, during the restricted use period. No HOME-ARP funds may be used for conversion. The written agreement between the PJ and the owner of the HOME-ARP NCS project must describe conversion as a possible outcome of the HOME-ARP NCS project; specify the conditions under which conversion will be permitted; and require that the PJ approve any conversion in advance.

a. Minimum Use Period: All HOME-ARP NCS projects must be operated as NCS for a minimum period of time prior to conversion. The minimum use period prior to conversion varies based on the original HOME-ARP NCS eligible activity undertaken and the amount of funds invested in the project. If the HOME-ARP NCS project involves rehabilitation, the minimum use period prior to conversion is based on the total cost of the rehabilitation as a percentage of the total appraised value of the improved property. A larger investment for rehabilitation will require operation as HOME-ARP NCS for a longer minimum use period prior to conversion. i. Acquisition Only: HOME-ARP NCS activities not requiring rehabilitation for occupancy must be operated as HOME-ARP NCS for no less than 3 years from project completion prior to conversion.
ii. Moderate Rehabilitation: Occurs when an NCS HOME-ARP project requires rehabilitation and the total rehabilitation expenditure from all sources of less than 75 percent of the total appraised value of the improved property. HOME-ARP NCS projects that receive moderate rehabilitation must be operated as HOME-ARP NCS for no less than 5 years from project completion prior to conversion. iii. Substantial Rehabilitation: Occurs when an NCS HOME-ARP project requires rehabilitation and the total rehabilitation expenditure from all sources exceeds 75 percent of the total appraised value of the improved property. HOME-ARP NCS projects that receive substantial rehabilitation must be operated as HOME-ARP NCS for no less than 10 years from project completion before conversion. iv. New Construction: Any HOME-ARP NCS project defined by the PJ’s state or local code requirements as new construction must be operated as HOME-ARP NCS for no less than 10 years from project completion prior to conversion.

Requirements for conversions vary depending on the type of conversion, as follows:

b. Permanent Affordable Housing: During the HOME-ARP NCS restricted use period but only after the HOME-ARP NCS minimum use period, a PJ may provide written approval to convert the project from HOME-ARP NCS to permanent affordable housing (e.g., affordable multifamily rental housing, transitional housing) in accordance with the requirements prescribed in the PJ’s written agreement with the HOME-ARP NCS owner.

i. Additional HOME-ARP Investment: The PJ is prohibited from investing additional HOME-ARP funds to pay for the cost of converting the project from HOME-ARP NCS to permanent affordable housing or to pay for operating the project as permanent affordable housing. However, the PJ must determine that adequate financial resources are committed to the project to bring it into compliance with the property standards of Section VI.B.11 of this Notice and maintain the financial feasibility of the project to be operated as permanent affordable housing for the qualifying populations throughout the remaining restricted use period. If permitting conversion of HOME-ARP NCS into permanent affordable housing, a PJ must develop and evaluate the project in accordance with standardized underwriting guidelines for conversion. At minimum, the PJ’s underwriting guidelines for conversion must include an examination of the sources and uses of funds for the conversion and a careful review of the project’s operating budget, including the assumptions, projections, and reasonably expected increases in expenses throughout the minimum compliance period defined in the section below, to determine that the project will remain financially feasible to serve the qualifying populations for the remainder of the restricted use period.

The PJ may assist households living in affordable rental housing units in converted projects by providing HOME-ARP TBRA in accordance with Section VI.C of this Notice or financial assistance services in accordance with Section VI.D.4.c.i.R.

ii. Minimum Compliance Period: The minimum compliance period for converted housing is the period that the housing must continue to comply with the requirements of this Notice and is equal to the balance of the HOME-ARP NCS restricted use period. A PJ may impose a longer compliance period but should plan for the project’s financial feasibility for the longer period. The PJ may not use HOME-ARP funds to provide operating assistance, including a capitalized operating reserve, to cover deficits during the minimum or an extended compliance period.

The PJ must amend the use restriction for HOME-ARP NCS to reflect the conversion to permanent affordable housing. The provisions for imposing affordability requirements at 24 CFR 92.252(e)(1) through (e)(4) apply to the amended use restriction. In addition, the amended use restriction for the permanent affordable housing must be enforceable to maintain compliance with the requirements of this Notice for the minimum compliance period, including the following:

(1) The same number of units that were operated as HOME-ARP NCS for qualifying populations must be restricted for and must be occupied by households that meet the definition of a qualifying population at the time of initial occupancy of the permanent affordable housing. The household’s contribution toward rent during this period must be affordable in accordance with Section VI.E.11 of this Notice.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 65 (2) The units must comply with the ongoing property condition standards of 24 CFR 92.251(f) throughout the minimum compliance period as demonstrated by an on-site inspection within 12 months of project completion and an on-site inspection at least once every three years thereafter as required by 24 CFR 92.504(d)(ii).
(3) Each household that occupies a HOME-ARP assisted rental unit must have an executed lease that complies with the tenant protections required in Section VI.B.18 of this Notice.

iii. Property Standards: For the remaining restricted use period, the PJ must require that project owners maintain the housing as decent, safe and sanitary housing in good repair in accordance with the ongoing property condition standards of 24 CFR

92.251(f) as demonstrated by an on-site inspection at least once every three years in accordance with 24 CFR 92.504(d)(ii).

iv. Tenant Contribution to Rent: The PJ must confirm that the qualifying household’s contribution to rent is affordable to the household based on a determination of the household’s income. If the household is receiving project-based or tenant-based rental assistance, it cannot contribute towards rent more than is permitted in accordance with the requirements of the applicable program. If a qualifying household cannot contribute to rent, or the contribution is insufficient to cover the unit rent, the PJ may provide HOME-ARP TBRA or supportive services to assist the qualifying household but may not provide operating cost assistance or fund an operating cost assistance reserve.

v. Tenant Protections: Following conversion, each qualifying household that occupies a permanent affordable housing unit must have an executed lease or sublease that complies with the tenant protections requirements of this Notice.

(1) Lease Requirement: There must be a lease between the qualifying household and the owner of the permanent affordable housing project or, if there is a sublease with a qualifying household, a lease between a HOME-ARP sponsor and the owner in accordance with 24 CFR 92.253(a). (2) Prohibited Lease Terms: The lease between the qualifying household and the owner, lease between HOME-ARP sponsor and the owner, and sublease between a HOME-ARP sponsor and qualifying household may not contain any of the prohibited lease terms specified in 24 CFR 92.253(b). (3) Termination of tenancy: An owner may not terminate the tenancy or refuse to renew the lease of a qualifying household (or of a HOME-ARP sponsor with a sublease with a qualifying household) in a permanent affordable housing unit except for serious or repeated violation of the terms and conditions of the lease; for violation of applicable Federal, State, or local laws, or for other good cause. An increase in the qualifying household’s income does not constitute good cause.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 66 To terminate or refuse to renew tenancy, the owner must serve written notice upon the qualifying household and the HOME-ARP sponsor if the lease is between an owner and HOME-ARP sponsor, specifying the grounds for the action at least 30 days before termination of tenancy. In the case of a sublease, to terminate or refuse to renew tenancy of a qualifying household, the HOME-ARP sponsor, in accordance with the policy established by the PJ, must notify the PJ in advance of serving written notice to the qualifying household and must serve written notice upon the qualifying household at least 30 days before termination of tenancy, specifying the grounds for the action.

vi. Coordinated Entry and Project-Specific Waitlists: On a project-by-project basis, the PJ must use the method of tenant selection in Section VI.B.19 of this Notice to select qualifying households for occupancy of permanent affordable housing.

vii. Penalties for Noncompliance: The PJ must repay HOME-ARP funds invested in HOME-ARP NCS that was converted to permanent affordable housing if the permanent affordable housing does not comply with initial or ongoing requirements of this Notice during the compliance period.

c. CoC Permanent Housing: During the HOME-ARP NCS restricted use period but only after the HOME-ARP NCS minimum use period, a PJ may permit the conversion of a HOME-ARP NCS project to permanent housing or permanent supportive housing under 24 CFR 578.43 (acquisition) and/or 24 CFR 578.45 (rehabilitation) of the CoC program regulations. Conversions may only occur in accordance with the requirements prescribed in the PJ’s written agreement with the HOME-ARP NCS owner. If conversion is approved by the PJ, the HOME-ARP NCS use restrictions must remain in place until the project is approved for CoC funding and the required CoC restrictions are imposed on the property.

Conversion to CoC permanent housing or permanent supportive housing may serve the following eligible households as defined in 24 CFR 578.3, subject to any further eligibility conditions that may apply to the use of CoC Program funds to provide rental assistance in the housing or otherwise support the project:
 Chronically homeless individuals
 Homeless individuals or families

PJs are prohibited from investing additional HOME-ARP funds to pay for the cost of converting the project to CoC permanent housing or permanent supportive housing. The CoC designates eligible applicants for grant funds under 24 CFR Part 578, which includes nonprofit organizations, States, local governments, and instrumentalities of State or local governments. For-profit entities are not eligible to apply for CoC grants or to be subrecipients of grant funds. Consequently, if a HOME-ARP NCS project owner intends to convert the project to CoC permanent housing or permanent supportive housing during the restricted use period, the PJ is encouraged to pursue partnership and leveraging opportunities with the CoC early in the planning stage of a HOME-ARP NCS DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 67 project. Additionally, PJs may provide supportive services or HOME-ARP TBRA to qualifying households that must move because of the conversion. (See Section VII.F.4.b for more information on relocations involving shelter occupants).

F. Nonprofit Operating and Capacity Building Assistance

A PJ may use up to 5 percent of its HOME-ARP allocation to pay operating expenses of CHDOs and other nonprofit organizations that will carry out activities with HOME-ARP funds.

A PJ may also use up to an additional 5 percent of its allocation to pay eligible costs related to developing the capacity of eligible nonprofit organizations to successfully carry out HOME- ARP eligible activities.

PJs may award operating expense assistance or capacity building assistance to a nonprofit organization if it reasonably expects to provide HOME-ARP funds to the organization for any of the eligible HOME-ARP activities within 24 months of the award.

1. Eligible Costs

a. Operating Expense Assistance: Operating expenses are defined as reasonable and necessary costs of operating the nonprofit organization. These costs include employee salaries, wages and other employee compensation and benefits; employee education, training, and travel; rent; utilities; communication costs; taxes; insurance; equipment, materials, and supplies.

HOME-ARP funds used for operating expenses must be used for the “general operating costs” of the nonprofit organization. These operating costs must not have a particular final cost objective, such as a project or activity, or must not be directly assignable to a HOME-ARP activity or project. For example, HOME-ARP funds for operating expenses may not be used for staffing costs to provide supportive services or develop HOME-ARP-rental housing (as operating costs to develop HOME-ARP rental housing are paid for by a developer fee which is a project delivery or soft cost). Because ARP does not permit any HOME-ARP funds to be used to operate a shelter, all costs related to operating a non-congregate shelter (e.g., allocable overhead and staffing costs, insurance, utilities) also cannot be paid with HOME-ARP funds.

The actual costs of implementing a specific activity or project, including staff costs to deliver supportive services or administer HOME-ARP TBRA, are considered HOME- ARP project delivery costs or project soft costs and are not eligible costs under Nonprofit Operating and Capacity Building Assistance. HOME-ARP project delivery costs are those allowable costs incurred for implementing and carrying out eligible HOME-ARP projects or activities, such as supportive services. All project delivery costs are allocable to a HOME-ARP project, including direct project and related delivery costs integral to developing the project or providing the activity. HOME-ARP project delivery costs may be paid, if eligible, by HOME-ARP funds provided under a written agreement for the activity or project and must not be paid with nonprofit operating expense or capacity building assistance.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 68 b. Capacity Building Assistance: Capacity building expenses are defined as reasonable and necessary general operating costs that will result in expansion or improvement of an organization’s ability to successfully carry out eligible HOME-ARP activities. Eligible costs include salaries for new hires including wages and other employee compensation and benefits; costs related to employee training or other staff development that enhances an employee’s skill set and expertise; equipment (e.g., computer software or programs that improve organizational processes), upgrades to materials and equipment, and supplies; and contracts for technical assistance or for consultants with expertise related to the HOME-ARP qualifying populations.

2. Limitations on Assistance: NAHA and the HOME regulations limit the amount of operating expense assistance that an organization can receive annually. ARP extends this limitation to the capacity building assistance paid with HOME-ARP funds.

In any fiscal year, operating assistance provided to a nonprofit organization may not exceed the greater of 50 percent of the general operating expenses of the organization, as described above, for that fiscal year or $50,000.

In any fiscal year, capacity building assistance provided to a nonprofit organization may not exceed the greater of 50 percent of the general operating expenses of the organization, as described above, or $50,000.

If an organization receives both operating assistance and capacity building assistance in any fiscal year, the aggregate total amount of assistance it may receive is the greater of 50 percent of the organization’s total operating expenses for that fiscal year or $75,000.

To implement the above limitations on assistance, HUD has established separate fund types in IDIS for operating expense assistance and capacity building assistance. This will facilitate accurate tracking and ensure that PJs do not exceed the limits established in NAHA and ARP.

3. Commitment of Operating Expense and Capacity Building Assistance: A PJ commits operating expense assistance or capacity building assistance when it enters into a legally binding agreement with the nonprofit organization to provide the assistance.

VII. OTHER FEDERAL REQUIREMENTS

HOME-ARP funds are federal financial assistance and, therefore, are subject to requirements applicable to such funds. PJs must comply with the following requirements: 24 CFR part 92, subpart H, 92.352 – Environmental review; 92.353 – Displacement, relocation, and acquisition; and 92.355 – Lead-based paint.

The requirements in 24 CFR 92.350 apply to the HOME-ARP program. PJs must comply with the Federal requirements set forth in 24 CFR part 5, subpart A, including: nondiscrimination and equal opportunity; disclosure requirements; debarred, suspended or ineligible contractors; drug-free work; and housing counseling and the nondiscrimination requirements at section 282 of NAHA. The requirements in section 282 of NAHA are waived in connection with the use of HOME-ARP funds on lands set aside under the Hawaiian Homes Commission Act, 1920 (42 Stat. 108). PJs must also comply with the Violence Against Women Act (VAWA) requirements set forth in 24 CFR 92.359.

B. Affirmative Marketing and Minority Outreach

The requirements in 24 CFR 92.351 apply to HOME-ARP activities.

C. National Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321) and Related Laws

The environmental requirements in 24 CFR 92.352 apply to eligible activities under this Notice.

The environmental effects of each activity carried out with HOME-ARP funds must be assessed in accordance with the provisions of NEPA and the related authorities listed in HUD's implementing regulations at 24 CFR part 58. The applicability of the provisions of 24 CFR part 58 is based on the HOME-ARP project as a whole (i.e., all individual project activities, such as acquisition and rehabilitation, aggregated according to the requirements at 24 CFR 58.32), not on the type of the cost paid with HOME-ARP funds. In accordance with the provisions in 24 CFR part 58, activities undertaken with HOME-ARP funds are subject to environmental review by a PJ or State recipient. The PJ or State recipient (referred to as the “Responsible Entity” or “RE”) must assume responsibility for environmental review, decision making, and action for each activity that it carries out with HOME-ARP funds, in accordance with the requirements at 24 CFR Part 58. A state PJ must assume responsibility for approval of Requests for Release of Funds and Certification (RROF/C) submitted by State recipients.

No funds may be committed to a HOME-ARP activity or project before the completion of the environmental review and approval of the RROF/C, as applicable. Neither a HOME-ARP recipient nor any participant in the development process, including public or private nonprofit or for-profit entities, or any of their contractors, may commit HUD assistance on an activity or project until the environmental review has been completed and HUD or the state has approved the recipient's RROF/C from the RE as applicable. In addition, until the RROF/C have been approved, neither a HOME-ARP recipient nor any participant in the development process may commit non-HUD funds on or undertake a HOME-ARP activity or project if the activity or project would have an adverse environmental impact or limit the choice of reasonable alternatives. Therefore, it is important for REs to begin and complete any required environmental reviews as soon as possible.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 70 1. HOME-ARP TBRA and Supportive Services
HOME-ARP TBRA and supportive services as defined at 24 CFR 58.35(b) are categorically excluded, not subject to the Federal laws and authorities at 24 CFR 58.5 (CENST) or exempt from review under NEPA. A RE may complete a single CENST review categorized under 24 CFR 58.35(b) for their supportive services program or their HOME-ARP TBRA program where participants choose their own unit and are not restricted to units within a pre-determined specific project site or sites. There is no need to complete reviews for every unit selected by participants.

2. HOME-ARP Rental Housing
Acquisition of a structure to be used as HOME-ARP rental housing is categorically excluded, subject to the Federal laws and authorities referenced at 24 CFR 58.5 (CEST) under 24 CFR

58.35(a)(5) (with the possibility of converting to exempt under 24 CFR 58.34(a)(12)) if the structure acquired will be retained for the same use (e.g., residential). Rehabilitation of buildings for residential use with one to four units for HOME-ARP rental housing is CEST under 24 CFR 58.35(a)(3)(i), if the density is not increased beyond four units, and the land use is not changed. Rehabilitation of buildings for use as HOME-ARP multifamily rental housing is CEST under 24 CFR 58.35(a)(3)(ii) only if:

1. the unit density is not changed more than 20 percent;

2. the project does not involve changes in land use from residential to non-residential; and

3. the estimated cost of rehabilitation is less than 75 percent of the total estimated cost of replacement after rehabilitation.

Rehabilitation for HOME-ARP rental housing that does not meet the thresholds for multifamily residential buildings listed above requires completion of an Environmental Assessment in accordance with 24 CFR Part 58, Subpart E. An Environmental Assessment is also required for new construction, demolition, acquisition of vacant land for new construction, and acquisition of non-residential structures for demolition and new construction.

3. HOME-ARP NCS
HOME-ARP NCS activities are subject to environmental review by the RE under 24 CFR part

58. Acquisition of a structure to be used as HOME-ARP NCS is CEST under 24 CFR

58.35(a)(3)(i) or (ii). Rehabilitation that does not meet these thresholds requires completion of an Environmental Assessment pursuant to 24 CFR part 58, subpart E. An Environmental Assessment is also required for new construction, demolition, acquisition of vacant land for new construction, and acquisition of non-residential structures for demolition and new construction.

HOME-ARP NCS projects which may convert to emergency shelter or permanent housing pursuant to Sec. 3204(a)(4)(B) or (C) of the ARP may complete a single environmental review that covers all proposed HUD funding sources and project activities. Conversion to a program using project-based rental assistance is CEST and requires completion of an environmental review. If conversion or other additional HUD funding sources are proposed after the DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 71 environmental review has been completed, a CENST review for supplemental assistance under 24 CFR 58.35(b)(7) can be performed if the review is completed by the same RE that conducted the original review and if re-evaluation is not required by 24 CFR 58.47.

The PJ or subrecipient, or any contractor of the PJ or subrecipient, may not acquire, rehabilitate, convert, repair, dispose of, demolish, or construct property for a HOME-ARP NCS project, or commit or expend HUD or non-HUD funds for NCS under HOME-ARP, until the RE has completed an environmental review under 24 CFR part 58 and received HUD or state approval of the RROF/C, as applicable.

D. Labor Standards

The requirements in 24 CFR 92.354 apply to HOME-ARP activities.

E. Lead Hazard Control Requirements
The Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4821-4846), the Residential Lead- Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851-4856), and implementing regulations at 24 CFR Part 35, subparts A, B, J, K, M, and R apply to HOME-ARP-assisted activities.

For HOME-ARP NCS, a project must comply with 24 CFR part 35, Subpart K when the HOME-ARP activity is acquisition only. HOME-ARP NCS projects that involve rehabilitation of pre-1978 facilities, whether the rehabilitation is funded with HOME-ARP or other funds, must comply with the requirements of 24 CFR part 35, Subpart J.

F. Uniform Relocation Assistance and Real Property Acquisition Policies Act, Section 104(d), and HOME-ARP Displacement, Relocation and Acquisition Program Requirements

HOME-ARP funding is subject to the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 and section 104(d) of the Housing and Community Development Act of 1974, in addition to the Displacement, Relocation and Acquisition regulatory requirements of 24 CFR 92.353. This Notice also includes HOME-ARP program specific relocation requirements applicable to HOME-ARP-assisted projects. PJs must comply with all applicable requirements, as described in this section.

1. Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970:

Costs incurred to comply with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, (42 U.S.C. § 4601 et seq.) (URA) are eligible HOME-ARP project costs pursuant to this Notice and 24 CFR 92.206(f). The URA establishes minimum requirements for the acquisition of real property and the displacement of persons from their homes, businesses, or farms as a direct result of acquisition, rehabilitation, or demolition for federally-assisted programs and projects. The URA implementing regulations at 49 CFR part 24 establish:

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 72  Requirements for the provision of replacement housing assistance, advisory services, and moving costs to persons displaced as a result of a program or project that receives federal financial assistance;
 Requirements for acquisitions, including the payment of just compensation pursuant to 49 CFR part 24, subpart B, and provisions for voluntary acquisitions set forth in 49 CFR

24.101.
 Minimum requirements for temporary relocation of persons, businesses, or farms as a result of a project or program that receives federal financial assistance. These requirements are found in Appendix A, Section 24.2(a)(9)(ii)(D).

Additional HUD URA policy and guidance is available in HUD Handbook 1378.

2. Section 104(d) of the Housing and Community Development Act of 1974: HOME-ARP is HOME funding and subject to the requirements in section 104(d) of the Housing and Community Development Act of 1974, as amended, (42 USC § 5304(d)), (“section 104(d)”) unless waived, as described in this section and Appendix. Costs incurred to comply with section 104(d) requirements are eligible HOME-ARP project costs under 24 CFR 92.206(f). section 104(d) applies to the demolition or conversion, as defined in 24 CFR 42.305, of a lower-income dwelling unit in connection with a HOME or Community Development Block Grant Program (CDBG) assisted activity. section 104(d) includes the following requirements:

 A PJ must have a residential anti-displacement and relocation assistance plan (RARAP);
 A PJ must provide relocation assistance to displaced lower-income persons; and  A PJ must perform one-for-one replacement of lower-income dwellings demolished or converted to a use other than a lower-income dwelling unit. A lower-income dwelling unit is defined in 24 CFR 42.305 as a dwelling unit with a market rent (including utility costs) that does not exceed the applicable Fair Market Rent (FMR) for existing housing, as defined by HUD.

Section 104(d) implementing federal regulations can be found at 24 CFR part 42 Subpart C.

HOME-ARP Section 104(d) Waiver / One-for-One Replacement Housing.

For purposes of , the one-for-one replacement housing requirements of section 104(d)(2)(A)(i) and (ii) and (d)(3) (42 U.S.C. 5304(d)(2)(A)(i) and (ii) and 42 U.S.C. 5304(d)(3)) and 24 CFR 42.375, lower-income dwelling units shall not include single-room occupancy (SRO) units or residential hotel or motel units in jurisdictions where those units are considered dwelling units under state or local law. All other section 104(d) requirements, including but not limited to the requirement that the PJ have and follow a RARAP, remain in effect. (See 24 CFR 92.353(e) and 24 CFR part 42, subpart C).

3. HOME Program Displacement, Relocation and Acquisition Regulations: In addition to the URA and section 104(d) requirement described above, the HOME program’s Displacement, Relocation and Acquisition regulations at 24 CFR 92.353 also apply to projects funded with HOME-ARP funds. Some of these requirements differ from those DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 73 of the URA and section 104(d), including but not limited to the expanded temporary relocation protections at 24 CFR 92.353(b) and (c); optional relocation assistance policies in 24 CFR 92.353(d); and the right to return to a building or complex, if feasible, upon completion of a HOME project, in accordance with 24 CFR 92.353(a). PJs must follow these program-specific requirements in HOME-ARP assisted projects.

PJs are encouraged to develop optional relocation policies to address individuals that may not be eligible for URA or section 104(d) assistance due to their length of occupancy in a unit, ineligibility of their dwelling unit, or other factors beyond their control. Such policies must be in writing, applied consistently, and must not violate any other federal law or regulation. Costs incurred to comply with 24 CFR 92.353, including optional relocation policies, are eligible HOME-ARP project costs under 24 CFR 92.206(f).

4. Additional HOME-ARP Program Relocation Related Requirements: The following additional HOME-ARP program relocation requirements apply:

a. Acquisition and/or rehabilitation of hotels, motels and other non-residential property: In states where hotels and motels are not considered dwelling units or residential property, the acquisition of non-residential property such as hotels and motels for the production of HOME-ARP NCS units or HOME-ARP rental housing will not make a person occupying those properties eligible for relocation assistance under the URA, section 104(d) or 24 CFR 92.353. HOME PJs may provide HOME-ARP assistance, as defined by this Notice, including the provision of HOME-ARP supportive services, HOME-ARP TBRA, the ability to stay in HOME-ARP NCS units, or the ability to rent a HOME-ARP rental unit, if the individuals or families can demonstrate that–

i. they have been in continuous residence at the property for 30 or more calendar days, and
ii. they are a qualifying household, as defined by this Notice.

Any assistance provided pursuant to this section may be provided without regard to any preferences, project-specific waiting lists, or any other form of prioritization the PJ has developed pursuant to this Notice. For purposes of HOME-ARP, costs associated with activities under this provision of the Notice may be charged as either project delivery costs or relocation costs eligible under 24 CFR 92.206(f).

b. Conversion of HOME-ARP NCS: If HOME-ARP NCS units are occupied and converted to either permanent housing under CoC or permanent affordable housing as described in Section VI.E.11 of this Notice, persons occupying the shelter would not normally be eligible for relocation assistance under the URA, section 104(d) or 24 CFR

92.353 because they are not displaced from a dwelling unit. However, since the individuals or families occupying such shelter units are already qualifying households under HOME-ARP, HOME PJs may immediately provide such occupants with HOME- ARP assistance, as defined by this Notice, including the provision of HOME-ARP supportive services, HOME-ARP TBRA, the ability to stay in other HOME-ARP DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 74 NCS units, or the ability to rent a HOME-ARP rental unit. Additionally, the PJ may provide the occupants with assistance for moving costs or advisory services, as appropriate, as HOME-ARP administrative costs or under the HOME-ARP supportive services activity in Section VI.D of this Notice. Any assistance provided pursuant to this section may be provided without regard to any preferences, project-specific waiting lists, or any other form of prioritization the PJ has developed pursuant to this Notice, as the persons occupying the NCS units were already determined to be qualifying households under the HOME-ARP.

5. Persons Ineligible for HOME-ARP Assistance and Ineligible for URA, Section 104(d), or assistance pursuant to 24 CFR 92.353: If a person is required to move as a direct result of a HOME-ARP project and is determined ineligible for HOME-ARP housing assistance under the preceding Section VII.F.4 and also determined ineligible as a displaced person under the URA, section 104(d) or HOME program rules, the PJ may provide such persons advisory services as an eligible HOME-ARP administrative cost, as the PJ determines to be reasonable and necessary.

G. Section 3 Economic Opportunities for Low- and Very Low-Income Persons
Section 3 requirements established at 24 CFR Part 75 apply to HOME-ARP-assisted projects.

H. Conflicts of Interest
HOME-ARP is subject to the following conflicts of interest requirements:

1. Conflicts of Interest: PJs, State recipients, and subrecipients engaging in any of the activities defined this Notice shall be subject to the conflicts of interest provisions at 24 CFR 92.356, including but not limited to the conflicts of interest exception process defined in 24 CFR 92.356(d)-(e). Owners and developers of HOME-ARP NCS and HOME-ARP rental housing shall be subject to 24 CFR 92.356(f).

2. Organizational Conflicts of Interest: The provision of any type or amount of HOME- ARP TBRA or supportive services may not be conditioned on an individual’s or family's acceptance or occupancy of a shelter or housing unit owned by the PJ; State recipients; the subrecipient; or a parent, affiliate, or subsidiary of the subrecipient. No subrecipient may, with respect to individuals or families occupying housing owned by the subrecipient, or any parent, affiliate, or subsidiary of the subrecipient, administer financial assistance that includes rental payments, utility deposits, security deposits, or first and last month’s rent provided pursuant to this Notice. All contractors of the PJ, State recipients, or subrecipient must comply with the same requirements that apply to subrecipients under this section.

3. Written Standards of Conduct: PJs, State recipients, and subrecipients must maintain written standards of conduct covering the conflicts of interest and organizational conflicts of interest requirements under this Notice and 2 CFR 200.318. The written standards of conduct must also provide for internal controls and procedures to require a fair and open selection process for awarding HOME-ARP funds pursuant to this Notice. These standards DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 75 must include provisions on if and how Continuum of Care board members may participate in and/or influence discussions or resulting decisions concerning the competition or selection of an award or other financial benefits made pursuant to the HOME-ARP Notice, including internal controls on when funds may be awarded to the organization that the member represents.

4. Requesting Exceptions to Organizational Conflicts of Interest: Any request for an exception to the organizational conflicts of interest provisions in this Notice shall be in writing and shall be considered by HUD only after the PJ or State recipient has provided the following:

a. A written disclosure of the nature of the conflict, accompanied by an assurance that there has been public disclosure of the conflict and a description of how the public disclosure was made; and
b. An opinion of the PJ’s or State recipient's attorney that the interest for which the exception is sought would not violate State or local law.

5. Granting Exceptions to Organizational Conflicts of Interest: HUD shall determine whether to grant an exception to the organizational conflicts of interest on a case-by-case basis when it determines that the exception will serve to further the purposes of HOME- ARP. HUD shall consider the following factors, as applicable, in determining whether to grant such an exception:

c. Whether the exception would provide a significant cost benefit or an essential degree of expertise to the program or project which would otherwise not be available d. Whether undue hardship will result to the PJ, State recipient, subrecipient or the person affected when weighed against the public interest served by avoiding the prohibited conflict;
e. Whether conditioning approval on changes to the PJ, State recipient, or subrecipient’s policies or procedures can adequately address the organizational conflict of interest; and f. Any other factors relevant to HUD’s determination, including the timing of the requested exception.

VIII. PROGRAM ADMINISTRATION

A. PJ Responsibilities
The PJ is responsible for managing the day-to-day operations of its HOME-ARP program, ensuring that HOME-ARP funds are used in accordance with all program requirements and written agreements, and taking appropriate action when performance problems arise. The use of State recipients, subrecipients, or contractors does not relieve the PJ of this responsibility.

B. Written Agreement Requirements
Before disbursing any HOME-ARP funds to any entity, the PJ must enter into a written agreement with that entity pursuant to 24 CFR 92.504. Similarly, before disbursing any HOME DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 76 funds to a State recipient, subrecipient, or contractor which is administering all or a part of the HOME-ARP program on behalf of the PJ, the PJ must also enter into a written agreement with that entity that complies with 24 CFR 92.504 and the requirements described below. A written agreement cannot commit to providing HOME-ARP funds after the end of the HOME-ARP budget period.

The written agreement must require compliance with the requirements of this Notice. The content of the written agreement will vary depending upon the role the entity is asked to assume or the type of project undertaken.

This section details basic requirements by activity and the minimum provisions, in addition to those at 24 CFR 92.504 that must be included in a written agreement. The written agreement provisions in 24 CFR 92.504 that reference the requirements of 24 CFR 92.350, 24 CFR 92.351, and 24 CFR 92.359 are not waived and apply for all HOME-ARP written agreements.

1. Rental Housing: The PJ must execute a written agreement with the project owner/developer prior to the expenditure of HOME-ARP funds. The written agreement must comply with 24 CFR 92.504 and contain the following additional provisions:
a. Use of HOME-ARP funds for Rental Housing: The agreement between the owner/developer must describe the address of the project or legal description of the property if a street address has not be assigned to the property, the use of the HOME- ARP funds and other funds for the project, including the tasks to be performed for the project, a schedule for completing the tasks and the project, and a complete budget, including any HOME-ARP funds used to capitalize an operating cost reserve for qualified HOME-ARP units. These items must be in sufficient detail to provide a sound basis for the PJ to effectively monitor performance under the agreement to achieve project completion and compliance with HOME-ARP requirements.

b. Operating Cost Assistance: If the PJ will provide HOME-ARP funds for operating cost assistance, the agreement must specify whether the PJ will provide assistance through periodic payments or capitalize the operating cost assistance reserve based on the operating deficit projected for the 15-year compliance period. If the PJ is providing ongoing assistance, the amount of assistance must be based on the actual operating deficit associated with the HOME-ARP units restricted for occupancy by qualifying households. The written agreement must specify the frequency of operating assistance payments made to the owner (e.g., monthly, quarterly, etc.) and state that the amount of assistance will be equal to the deficit demonstrated and/or incurred. The written agreement may only provide for HOME-ARP funds to be used for operating assistance payments during the budget period defined in Section VIII.C.4 below. If operating cost assistance will be required beyond the budget period, the PJ should capitalize an operating reserve before the expiration of the budget period for HOME-ARP funds in accordance with Section VI.B.23. If the PJ is capitalizing the operating reserve for the 15-year HOME-ARP compliance period, the amount of assistance must be based on the project’s underwriting and the total anticipated operating deficit associated with the HOME-ARP units restricted for occupancy by qualifying households. The written DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 77 agreement must specify the amount of the capitalized reserve and the restrictions on its use during the minimum compliance period in Section VI.B.18. Net operating income resulting from HOME-ARP operating cost assistance is not permitted and must be prohibited in the written agreement between the participating jurisdiction and the owner.

c. Sublease/Master Lease of HOME-ARP Units: If the PJ will permit a project owner to execute a sublease or master lease with a nonprofit organization for HOME-ARP units restricted for occupancy by qualifying households, the agreement must specify the duration of the sublease or master lease, applicable rents, lease requirements and tenant protections.

d. On-going compliance: The agreement must require rental housing assisted with HOME- ARP funds to comply with the on-going requirements of Section VI.B of this Notice or require repayment in accordance with Section VI.B.22.

e. Property Standards: The agreement must require the housing to meet the property standards required in 24 CFR 92.251 paragraphs (a) new construction, (b) rehabilitation projects, (c)(1) and (2) acquisition of standard housing and (f) on-going property condition standards.

f. Records and reports: The agreement must specify the particular records that must be maintained and the information or reports that must be submitted to assist the PJ in meeting its recordkeeping and reporting requirements. The owner/developer of rental housing must annually provide the PJ with information on rents and occupancy of HOME-ARP assisted units to demonstrate compliance with this Notice. If the rental project has floating HOME-ARP units, the project owner/developer must provide the PJ with information regarding unit substitution and filling vacancies so that the project remains in compliance with the HOME-ARP occupancy requirements. The agreement must specify the reporting requirements, (including copies of financial statements) to enable the PJ to determine the financial condition and continued financial viability of the project.

g. Enforcement of the agreement: The agreement must provide for a means for the PJ to enforce compliance with HOME-ARP requirements. This means of enforcement may include liens, deed restrictions, covenants running with the land, use restriction, or other mechanism approved by HUD under which the PJ has the right to require specific performance. In addition, the agreement must specify remedies for breach of the provisions of the agreement.

h. Request for disbursement of funds: The agreement must specify that the owner/developer may not request disbursement of funds under the agreement until the funds are needed for payment of eligible costs. The owner/developer may request capitalization of a project operating cost assistance reserve for the qualifying units once all necessary title transfer requirements and construction work have been performed.

The amount of each request must be limited to eligible costs in the amount needed, as described in Section VI.B.5.g.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 78 i. Duration of the agreement: The agreement must be in effect for at least the 15-year HOME-ARP minimum compliance period.

j. On-site Inspections and Financial Oversight: The PJ must comply with the on-site inspections and financial oversight requirements of 24 CFR 92.504(d)(1) and (2). In addition, if the PJ will permit the capitalization of a project operating cost assistance reserve, the PJ must, no less than annually, oversee the administration of the operating cost assistance reserve account to verify that the account is appropriately sized and draws from the account are used to cover any deficits associated with units occupied by qualifying households.

k. Tenant Selection: The written agreement must contain provisions explaining the method of tenant selection to be used in accordance with the requirements of Section IV.C and VI.B.20 of this Notice. This section must be in sufficient detail to determine which method of tenant selection is being used for the qualifying population (i.e., use of CE, use of CE with other referral methods, or project-specific waiting list), the method of tenant selection for low-income households (See Section VI.B.20.b and 24 CFR

92.253(d)), and any required policies and procedures around the use of a CE or project- specific waiting list. This section must also be in sufficient detail to determine compliance with the PJ’s preferences and/or method of prioritization, if any, as well as all applicable fair housing, civil rights, and nondiscrimination requirements, including but not limited to those requirements listed in 24 CFR 5.105(a).

2. TBRA (subrecipient or contractor): The requirements at 24 CFR 92.504, apply to the use of HOME-ARP funds for TBRA. The written agreement provisions in 24 CFR 92.504 that reference the requirements of 24 CFR 92.350, 24 CFR 92.351, and 24 CFR 92.359 are not waived and still apply for HOME-ARP written agreements. The written agreement must contain the following provisions:
a. Use of HOME ARP funds: At a minimum, the written agreement must describe the amount and use of the HOME-ARP funds, the tasks to be performed, or services to be provided. HOME-ARP funds cannot be provided after the end of the HOME-ARP budget period.
b. Records and reports: The agreement must specify the particular records that must be maintained and the information or reports that must be submitted to assist the PJ in meeting its recordkeeping and reporting requirements.
c. Duration of agreement and disbursement of funds: The agreement must specify the duration of the agreement and state that disbursement of funds under the agreement may not be requested until the funds are needed.
d. Compliance with HOME-ARP program requirements: The written agreement must require compliance with HOME-ARP program requirements for the HOME-ARP TBRA activity as outlined in Section VI.C of this Notice.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 79 e. Rental assistance contract: There must be a rental assistance contract between the PJ and either the HOME-ARP sponsor, the HOME-ARP TBRA assisted household, or the property owner. The PJ must determine the terms of the rental assistance contract. The rental assistance contract continues until the lease is terminated. If the rental assistance is being provided through a HOME-ARP sponsor, the PJ must determine the term of the rental assistance contract between the PJ and HOME-ARP sponsor.

If HOME-ARP TBRA is provided in coordination with a HOME-ARP sponsor, the PJ must enter into a written agreement with the HOME-ARP sponsor if the HOME-ARP TBRA rental assistance contract is not with the HOME-ARP sponsor and the HOME- ARP sponsor will be receiving the HOME-ARP TBRA subsidy directly from the PJ.

The written agreement must specify the requirements for the HOME-ARP sponsor receiving the TBRA subsidy on behalf of the HOME-ARP TBRA household and the HOME-ARP sponsor’s obligation to use the HOME-ARP TBRA payment to pay rent for the unit to the property owner or management agent. If HOME-ARP TBRA is provided in coordination with a HOME-ARP sponsor, the sponsor must enter into a sublease with the HOME-ARP TBRA assisted household that must specify the duration of the sublease, applicable rents, lease requirements and tenant protections, all in accordance with the requirements of this Notice.

f. Tenant Selection: The written agreement must require the owner to comply with the method of tenant selection determined by the PJ and applicable requirements of Section IV.C and VI.C.1 of this Notice. The written agreement must include a description of the required method of tenant selection for the qualifying populations (i.e., use of CE, use of CE with other referral methods, project-specific waiting list), the method of tenant selection for low-income households (See Section VI.B.20.b and 24 CFR 92.253(d)), and any required policies and procedures around the use of a CE or project-specific waiting list. This section of the written agreement must be in sufficient detail to determine compliance with the PJ’s preferences and/or method of prioritization, if any, as well as all applicable fair housing, civil rights, and nondiscrimination requirements, including but not limited to those requirements listed in 24 CFR 5.105(a).

3. Supportive Services (subrecipient or contractor): The requirements at 24 CFR 92.504, apply to the use of HOME-ARP funds for supportive services. The provisions of the written agreement will depend on the role the entity is asked to assume. At a minimum, the written agreement must contain the following provisions:

a. Use of HOME funds: The written agreement must describe the amount and uses of the HOME-ARP funds, the tasks to be performed, the services to be provided, and include a budget. The written agreement cannot agree to provide HOME-ARP funds after the end of the HOME-ARP budget period.

b. Records and Reports: The agreement must specify the particular records that must be maintained and the information or reports that must be submitted in order to assist the PJ in meeting its recordkeeping and reporting requirements as required under Section VIII.F of this Notice.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 80 c. Duration of the agreement and Disbursement of Funds: The agreement must specify the duration of the agreement, and state that disbursement of funds under the agreement may not be requested until the funds are needed.

d. Compliance with HOME-ARP Program Requirements: The written agreement must also require compliance with HOME-ARP program requirements for the HOME-ARP supportive services activity as described in Section VI.D of this Notice.

4. HOME-ARP Non-Congregate Shelter (owner/developer): Written agreements must be executed between the PJ and the owner for all HOME-ARP NCS projects. A legally binding HOME-ARP NCS written agreement must include the date of the signature of each person signing the agreement. PJs are responsible for entering into written agreements before disbursing HOME-ARP funding. Contents of written agreements can vary based on specific needs of the PJ, the owner, and the project. Agreements for the acquisition, development, and rehabilitation of HOME-ARP NCS units must contain the following provisions:

a. Use of HOME-ARP funds: The agreement between the PJ and owner must include the address of the project or legal description of the property if a street address has not been assigned to the property, the use of the HOME-ARP NCS funds and other funds for the project, including the tasks to be performed for the project, a schedule for completing the tasks and the project, and a complete budget. These items must be in sufficient detail to provide a sound basis for the PJ to effectively monitor performance under the agreement to achieve project completion and compliance with HOME-ARP requirements. The written agreement cannot agree to provide HOME-ARP funds after the end of the HOME-ARP budget period.
b. Habitability and Property Standards: The agreement must require the HOME-ARP NCS project to meet the habitability and property standards as described in Section VI.E.7 of this Notice based on the type of project completed. c. Project Requirements: The agreement must require the HOME-ARP NCS project to meet the project requirements as described in this Notice. d. Other program requirements: The agreement must require the PJ and owner to carry out the project in compliance with the other Federal requirements of 24 CFR 92 subpart H and 24 CFR 92.505.
e. Records and reports: The agreement must specify the particular records that must be maintained and the information or reports that must be submitted to assist the PJ in meeting its recordkeeping and reporting requirements.
f. Restricted Use Period: The agreement must require the project to meet the Restricted Use Period as described in Section VI.E.9 of this Notice based on project type. g. Enforcement of the agreement: The agreement must provide for a means for the PJ to enforce compliance with HOME-ARP requirements. This means of enforcement may include liens, deed restrictions, covenants running with the land, use restriction, or other DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 81 mechanism approved by HUD under which the PJ has the right to require specific performance. In addition, the agreement must specify remedies for breach of the provisions of the agreement.
h. Plan of Conversion: PJs that intend to allow conversion of HOME-ARP NCS projects to other permanent affordable housing as permitted in this Notice must describe conversion as a possible outcome of the HOME-ARP NCS project; specify the conditions under which conversion will be permitted; and require that the PJ approve the terms and conditions of any conversion before the conversion occurs. i. Additional PJ Conditions and Requirements: PJs may include additional program and project requirements as determined necessary.

5. Non-Profit Operating and Capacity Building: The requirements at 24 CFR 92.504(c)(6), apply to the use of HOME-ARP funds for non-profit operating and capacity building assistance. The written agreement must describe the amounts and uses of HOME-ARP funds for operating expenses or capacity building. If the non-profit organization is not also receiving HOME-ARP funds to carry out a HOME-ARP project, the agreement must provide that the organization is expected to receive funds for a HOME-ARP project within 24 months of the date of receiving the funds for operating or capacity building expenses and must specify the terms and conditions upon which this expectation is based and the consequences of failure to receive funding for a project.

When a PJ provides both operating assistance and capacity building assistance to an organization, it must enter into either one written agreement for both types of assistance or separate written agreements for operating expense assistance and capacity building assistance. If a PJ chooses to enter into one written agreement, the PJ must separately identify the scope of assistance, eligible uses and costs, and a budget for each type of funds.

C. Grants Management

1. HOME-ARP Grant Agreement: HUD will make HOME-ARP funds available to the PJ pursuant to a HOME-ARP Grant Agreement, consistent with Section VIII.C.2 below.

Subject to the provisions of the grant agreement and requirements in this Notice, HUD will obligate HOME-ARP funds to the PJ upon execution of the agreement by both parties. In the grant agreement, the PJ agrees that funds invested in affordable housing under this Notice are repayable if the housing no longer meets the requirements of this Notice during the compliance period or the NCS no longer meets the requirements of this Notice during the restricted use period. The PJ also agrees to assume all responsibility for environmental review, decision making, and actions, as specified and required in regulation at 24 CFR

92.352 and 24 CFR Part 58. The PJ agrees to comply with 24 CFR 92.505 and applicable Uniform Administrative Requirements at 2 CFR part 200, as amended. The PJ agrees to comply with requirements established by the Office of Management and Budget (OMB) concerning the unique entity identifier and System for Award Management (SAM) requirements in Appendix I to 2 CFR part 200, as amended, and the Federal Funding Accountability and Transparency Act (FFATA) in Appendix A to 2 CFR part 170. The PJ DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 82 agrees to comply with the federal nondiscrimination and equal opportunity requirements at 24 CFR 92.350 and affirmative marketing requirements in 24 CFR 92.351 and the VAWA requirements set forth in 24 CFR 92.359. The HOME-ARP grant is obligated when the HUD Authorized Official signs the memorandum obligating HOME-ARP grants. The HOME-ARP Grant Agreement must be signed by the CPD Field Office Director and counter-signed by the PJ’s authorized signatory. Once the CPD division in the local field office receives the fully executed HOME-ARP Grant Agreement, it will send the agreement to HUD’s CFO Accounting Office for processing. As described in Section VIII.C.2 of this Notice, funds will become available to the PJ in IDIS once HUD’s CFO Accounting Office processes the grant.

2. Access to Administrative Set-aside Funds: Upon issuance of this Notice, HUD will obligate all HOME-ARP grants to PJs through the signing of the HOME-ARP obligating memorandum, after which each HOME-ARP Grant Agreement must be signed by both parties. After obligation, HUD will permit the PJ to use 5 percent of its award for eligible administrative and planning costs under Section VI.A of this Notice. The PJ may not expend any funds for non-administrative and planning costs before the HOME-ARP allocation plan is accepted by HUD as described in Section V.D.2 and 3 of this Notice.

HUD will make the remaining HOME-ARP grant funds available to the PJ once HUD accepts the HOME-ARP allocation plan. If the PJ does not submit a HOME-ARP allocation plan or if the PJ’s plan is not accepted within a reasonable period of time, as determined by HUD, any costs incurred or HOME-ARP funds expended by the PJ will be considered ineligible costs and must be repaid with non-Federal funds in accordance with guidance from HUD.

3. HOME-ARP Grant Number: The PJ’s HOME-ARP grant number is similar to its HOME grant number with the exception of the source type code. All HOME-ARP grants have the program identifier “M” and the source year of the grant “21.” The different source type codes are identified in the table below.

Source Type
Description
HOME Source
Type Code

HOME-ARP
Source Type Code
HOME Consortium DC DP
Metropolitan City MC MP
State SG SP
Insular Area ST IP
Urban County UC UP

The unique grantee identifier portion of the grant number will be the same for HOME-ARP grants as it is for HOME grants. See examples of HOME-ARP grant numbers with the different source type codes in the table below.

HOME-ARP
Grant Number
Maryland M21SG240100 M21SP240100
Baltimore M21MC240200 M21MP240200

4. Budget Period: The budget period for HOME-ARP grants begins on the Federal Award Date, which is the date of the HUD Authorized Official’s signature specified on the HOME- ARP Grant Agreement. The budget period for HOME-ARP grants ends on September 30, 2030. The PJ may not expend any HOME-ARP funds after September 30, 2030. After September 30, 2030, any HOME-ARP funds remaining in the PJ’s HOME Investment Trust Fund Treasury account will be cancelled and not available for obligation or expenditure for any purpose (per 31 U.S.C. 1552).

5. Period of Performance: The period of performance for HOME-ARP grants begins on the Federal Award Date, which is the date of the HUD Authorized Official’s signature specified on the HOME-ARP Grant Agreement. The period of performance for HOME-ARP grants ends on September 30, 2030.

6. Audit: Audits of the PJ, State recipients, and subrecipients must be conducted in accordance with 2 CFR part 200, subpart F.

7. Closeout: HOME-ARP funds will be closed out in accordance with 2 CFR part 200, subpart D. The PJ will use HUD’s data system to closeout HOME-ARP grants once all HOME-ARP funds have been expended, all HOME-ARP activities are completed in accordance with the requirements of this Notice, and the proper beneficiary data has been entered. In order to closeout its HOME-ARP grants, the PJ must not have any open CPD monitoring findings or audits related the HOME-ARP funds. HUD will provide closeout guidance and instructions at a later date.

D. Applicability of Uniform Administrative Requirements.

The requirements of 2 CFR part 200, as amended apply to PJs, State recipients, and subrecipients receiving HOME-ARP funds, except for the following provisions: 2 CFR 200.306, 200.307, 200.308 (not applicable to participating jurisdictions), 200.311 (except as provided in 24 CFR 92.257), 200.312, 200.329, 200.333, and 200.334. The provisions of 2 CFR 200.305 apply as modified by 24 CFR 92.502(c) and this Notice. If there is a conflict between definitions in 2 CFR part 200 and 24 CFR part 92, the definitions in 24 CFR part 92, govern.

Moreover, if there is a conflict between the provisions of 2 CFR part 200 and the provisions of this Notice, the provisions of this Notice govern.

Where regulations in 24 CFR part 92 refer to specific regulations of 2 CFR part 200 that were or are renumbered or revised by amendments to 2 CFR part 200, the requirements that apply to the DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 84 use of HOME-ARP funds are the applicable requirements in 2 CFR part 200, as amended, notwithstanding the renumbered regulatory reference.

E. Financial Management

1. The HOME Investment Trust Fund: HUD will establish a HOME-ARP Investment Trust Fund Treasury account (Treasury account) for a PJ’s HOME-ARP funds. The Treasury account includes all HOME-ARP funds allocated to the PJ by formula and any HOME-ARP funds repaid by the PJ.

The PJ must establish a HOME-ARP Investment Trust Fund local account (local account) as described in 24 CFR 92.500. The PJ may use either a separate local account or, a subsidiary account within its general fund (or other appropriate fund) as the local account. The PJ may not use the same local account for HOME-ARP that it uses for its HOME local account.

The local account includes deposits of HOME-ARP funds disbursed from the Treasury account. The local account must be interest-bearing.

HUD will reduce or recapture any HOME-ARP funds that are in the Treasury account that are not expended (drawn down) by September 30, 2030. Due to end-of-year financial system closeouts that begin before this date and prevent electronic access to the payment system, requests to draw down the funds must be made at least 7 full business days before this date so that the funds still can be drawn from the Treasury account through IDIS.

2. Program Income: Program Income means gross income received by the PJ generated from the use of HOME-ARP funds during the grant period of performance. This includes, but is not limited to, principal and interest payments from a loan made with HOME-ARP funds, or other income or fees received from project owners in connection with HOME-ARP funds, and interest earned by the PJ on program income before its disposition.

Program income earned as a result of the use of HOME-ARP funds is HOME program income and must be used in accordance with the requirements of 24 CFR part 92. All program income must be recorded in IDIS. Program income must be deposited in the PJ’s HOME-ARP local account (unless the PJ allows a State recipient or subrecipient to retain the program income for additional HOME projects pursuant to such terms and conditions in the written agreement and this Notice). The PJ must enter HOME-ARP program income retained by the State recipient or subrecipient as a HOME program income receipt in IDIS and subgrant the program income to the State recipient or subrecipient that retained the program income. The PJ is responsible to report on the use of its program income in IDIS, including program income it allowed a State recipient or subrecipient to retain.

3. Repayments: Any HOME-ARP funds used for costs that are not eligible under this Notice, funds invested in a project that is terminated before completion, either voluntarily or otherwise, or funds invested in HOME-ARP rental housing and NCS that does not meet the requirements in this Notice for the applicable period specified in this Notice must be repaid by the PJ to its Treasury account. If the funds are repaid after September 30, 2030, they will be recaptured by the U.S. Department of Treasury and the PJ will not be able to re-use the DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 85 funds for eligible HOME-ARP activities. HOME-ARP funds may not be repaid to the PJ’s local account.

4. Integrated Disbursement and Information System (IDIS): The PJ will use IDIS to administer its HOME-ARP funds. The PJ will request disbursements of HOME-ARP funds from its Treasury account and collect and report information on the use of HOME-ARP funds through IDIS. (For purposes of reporting in IDIS, a HOME-ARP project is an activity.) The PJ must report all program income in IDIS.

The requirements of 24 CFR 92.502(c)(3) do not apply to HOME-ARP funds.

In accordance with this Notice, a HOME-ARP written agreement providing HOME-ARP funds to a project or the CHDO/nonprofit must be signed and dated by:

a. the PJ and project owner for HOME-ARP rental and HOME-ARP NCS; b. the PJ and service provider for HOME-ARP supportive services; c. the PJ and landlord, tenant, and/or HOME-ARP sponsor, as applicable, for HOME-ARP TBRA; and,
d. the PJ and CHDO/nonprofit organization for HOME-ARP Operating Expenses and Capacity Building Assistance.

This must occur before any HOME-ARP funds are disbursed. Federal funds cannot be drawn from the Treasury account in advance of the need to pay an eligible cost.

Consequently, HOME-ARP funds cannot be drawn from the U.S. Treasury and placed in escrow or advanced in lump sums to State recipients, subrecipients, project owners, service providers, or landlords or tenants, except funds drawn down for a HOME-ARP rental project for an operating cost assistance reserve or reserve for replacement pursuant to Section VI.B.5.g. of this Notice or a HOME-ARP NCS project for a replacement reserve pursuant to Section VI.E.

Once funds are drawn from the PJ’s Treasury account, they must be expended for an eligible HOME-ARP cost within 15 days. Any interest earned within the 15-day period may be retained by the PJ as HOME program income and recorded in IDIS as a program income receipt. Any funds that are drawn down and not expended for eligible costs within 15 days of the disbursement must be returned to HUD for deposit in the PJ's Treasury account.

Interest earned after 15 days belongs to the United States and must be remitted to the United States as provided in 2 CFR 200.305(b)(9), except interest amounts up to $500 per year may be retained for the PJ’s administrative expenses.

Additional HOME-ARP funds may be committed to a project up to one year after project completion.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 86 HUD will govern access to IDIS by other entities participating in the HOME program (e.g., State recipients). Only PJs and State recipients (if permitted by the State) may request disbursement.

F. Recordkeeping

Each PJ must establish and maintain sufficient records to enable HUD to determine whether the PJ has met the requirements of this Notice. At a minimum, the following records are needed:

1. Program Records:
a. Records evidencing that all HOME-ARP funds used by a PJ for TBRA, supportive services, and acquisition and development of non-congregate shelter units benefit individuals and families in qualifying populations.
b. Records evidencing that not less than 70 percent of affordable rental housing units acquired, rehabilitated, and/or constructed with HOME funds by a PJ are restricted for occupancy by households in the qualifying populations.
c. Records documenting compliance with the 15 percent limitation on administrative and planning costs.
d. Records documenting compliance with the 5 percent limitation on CHDO and non-profit operating and capacity building costs.
e. The underwriting and subsidy layering guidelines adopted in accordance with Section VI.B.10 of this Notice that support the PJ's HOME-ARP allocation plan certification. f. If existing debt is refinanced for multifamily rehabilitation projects, the HOME-ARP refinancing guidelines established in the HOME-ARP in the HOME-ARP Allocation Plan.
g. If HOME-ARP funds are used for TBRA, records supporting the PJ's written selection policies and criteria; supporting documentation for preferences for specific categories of qualifying individuals; and records supporting the rent standard and minimum tenant contribution established in accordance with Section VI.C.7 and 8 of this Notice. h. Confidentiality.
i. The PJ’s written policies and procedures for maintaining confidentiality of qualifying households as individuals or families fleeing, or attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking in accordance with Section VIII.H.
ii. The PJ’s written policies and procedures for maintaining confidentiality in compliance with the VAWA protections contained in 24 CFR Part 5, Subpart L.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 87 2. Project Records: PJs are required to retain the following records for HOME-ARP-assisted projects, as specified by activity type.
a. A full description of each project assisted with HOME-ARP funds, including the location (address of project), form of HOME-ARP assistance, and the units, families, or qualifying households assisted with HOME-ARP funds, subject to confidentiality requirements in this Notice.
b. The source and application of funds for each project, including supporting documentation in accordance with 2 CFR 200.302; and records to document the eligibility and permissibility of the project costs, including the documentation of the actual HOME-ARP-eligible development costs of each HOME-ARP-assisted unit as defined in this Notice.
c. Records (i.e., written agreements) demonstrating compliance with the written agreement requirements in Section VIII.B of this Notice.
d. Records (e.g., inspection reports) demonstrating that each HOME-ARP rental project meets the property standards in Section VI.B.11 of this Notice at project completion and through the applicable minimum compliance period. In addition, during a HOME-ARP rental project’s minimum compliance period, records demonstrating compliance with the property standards and financial oversight pursuant to 24 CFR 92.504(d) and the operating cost assistance reserve management and oversight required by Section VI.B.23 of this Notice.
e. Records (e.g., inspection reports) demonstrating that each unit occupied by a qualifying household receiving HOME-ARP TBRA, meets the housing quality standards of Section VI.C.9 of this Notice at initial occupancy and throughout the household’s term of assistance.
f. Records (e.g., inspection reports) demonstrating that each NCS project meets the property and habitability standards of Section VI.E.7 of this Notice at project completion and throughout the applicable restricted use period.
g. Records demonstrating that each qualifying household is eligible for HOME-ARP assistance based on the requirements of the ARP and Section IV of this Notice. h. Records demonstrating that each household qualifying as homeless, records that meet the requirements in 24 CFR 576.500(b)(1), (2), (3), or (4), as applicable (except that youth aged 24 and under must not be required to provide third-party documentation to show they are homeless to receive any shelter, housing, or services for which ESG or CoC Program funds may be used to supplement the HOME-ARP assistance). i. Records demonstrating that each household qualifying as “at risk of homelessness,” records that meet the requirements in 24 CFR 576.500(c)(1) or (2), as applicable, and include the following documentation of annual income:

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 88 i. Income evaluation form containing the minimum requirements specified by HUD and completed by the recipient or subrecipient; and ii. Source documents for the assets held by the household and income received over the most recent period for which representative data is available before the date of the evaluation (e.g., wage statement, unemployment compensation statement, public benefits statement, bank statement);
iii. To the extent that source documents are unobtainable, a written statement by the relevant third party (e.g., employer, government benefits administrator) or the written certification by the recipient's or subrecipient's intake staff of the oral verification by the relevant third party of the income the household received over the most recent period for which representative data is available; or iv. To the extent that source documents and third-party verification are unobtainable, the written certification by the household of the amount of income the household received for the most recent period representative of the income that the household is reasonably expected to receive over the 3-month period following the evaluation.
j. Records demonstrating compliance with the household income requirements in accordance with Section VI.B.12 of this Notice for each HOME-ARP rental project. k. Records demonstrating that each HOME-ARP rental and NCS project meets the minimum compliance period or restricted use period described in Sections VI.B.18 and VI.E.9 respectively, of this Notice.
l. Records demonstrating that for each HOME-ARP rental housing unit or for each household receiving HOME-ARP TBRA, compliance with the tenant protection requirements of Sections VI.B.19 and VI.C.2, respectively, of this Notice. For HOME- ARP TBRA or rental projects under a master lease, the PJ must retain records demonstrating that a master lease for housing leased by a HOME-ARP sponsor and each sublease between a qualifying household and HOME-ARP sponsor complies with the tenant and participant protections of 24 CFR 92.253 and this Notice. Records must be kept for each household.
m. Records demonstrating compliance with the return of the HOME-ARP rental capitalized operating cost assistance reserve and/or the NCS replacement reserve at the end of the compliance or restricted use period in accordance with Sections VI.B.24 and VI.E.10 respectively, of this Notice.
n. Records demonstrating that each HOME-ARP rental and each NCS project meets the underwriting and subsidy layering or due diligence requirements of Section VI.B.10 or VI.E.6 of this Notice.
o. Records demonstrating that each HOME-ARP rental housing project meets the rent limitations of Sections VI.B.13 and VI.B.15 of this Notice for the 15-year minimum compliance period. Records must be kept for each household assisted.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 89 p. Records demonstrating that each multifamily HOME-ARP rental housing project involving rehabilitation with refinancing complies with the refinancing guidelines established in accordance with 24 CFR 92.206(b).
q. Records demonstrating that a site and neighborhood standards review was conducted for each HOME-ARP rental housing project involving new construction under Section VI.B of this Notice to determine that the site meets the requirements of 24 CFR 983.57(e)(2) and (e)(3), in accordance with 24 CFR 92.202.
r. Records demonstrating that any conversion of HOME-ARP NCS complies with the requirements established by Section VI.E of this Notice, including that conversion of NCS only occurred after the end of the applicable minimum use period defined in Section VI.E.11.
s. For all HOME-ARP NCS projects the following documents must be maintained, as applicable:
i. Purchase contract, closing documents, settlement statement and title work for acquisitions.
ii. Appraisal or other estimation of value to justify acquisition expenditure. iii. Architectural and engineering contracts and completed designs, plans, and specifications for rehabilitation and new construction activities. iv. Invoices, pay requests, and proof of payment for all project expenditures. v. Proof of insurance.
vi. Project and program audits.
t. For all HOME-ARP Supportive Services projects pursuant to McKinney-Vento or Homelessness Prevention Supportive Services:
i. Records, where applicable, demonstrating compliance with the termination of assistance requirement as described in Section VI.D.5 of this Notice. ii. Records of all solicitations of and agreements with subrecipients and contractors, records of all payment requests by and dates of payments made to subrecipients, and documentation of all monitoring and sanctions of subrecipients, as applicable including any findings and corrective actions required. iii. Records of all procurement contracts and documentation of compliance with the procurement requirements in 2 CFR part 200, subpart D, as revised by Section VIII.D of this Notice.
iv. Records evidencing the use of the written procedures required under Section VI.D.2 and records evidencing compliance with Section IV.C.2 of this Notice.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 90 v. Records of all leases, subleases, and financial assistance agreements for the provision of rental payments, documentation of payments made by the PJ to owners, HOME-ARP sponsor, or qualifying households for the provision of financial assistance for rental payments, and supporting documentation for these payments, including dates of occupancy by qualifying individuals and families. vi. Records that document the monthly allowance for utilities (excluding telephone) used to determine compliance with the rent restriction. vii. Records of the types of services provided under the PJ’s program and the amounts spent on these services.
viii. Records demonstrating subrecipient compliance with the recordkeeping requirements in Section VIII.F of this Notice.
u. For all HOME-ARP Housing Counseling Services projects as defined in 24 CFR part 5, each participating housing counseling agency must maintain a recordkeeping and reporting system in accordance with 24 CFR 214.315 and 24 CFR 214.317. The system must permit HUD to easily access all information needed for a performance review. v. For all HOME-ARP-assisted nonprofit operating expense and capacity building assistance activities:
i. Records concerning the use of funds for nonprofit operating expense and capacity building assistance must be maintained to enable HUD to determine whether the PJ has met the requirements of Section VI.F of this Notice. ii. Written agreements between the PJ and the nonprofit organization providing nonprofit operating expense assistance or capacity building assistance must be retained for five years after the agreement terminates.

3. Financial records:
a. Records, in accordance with 2 CFR 200.302, identifying the source and application of HOME-ARP funds. Identification must include, as applicable, the Assistance Listing program title and number (formerly Catalogue of Federal Domestic Assistance), Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any.
b. Records concerning the HOME-ARP Investment Trust Fund Treasury account and local account required to be established and maintained by this Notice, including deposits, disbursements, balances, supporting documentation and any other information required by IDIS.
c. Records identifying the source and application of program income and repayments. d. Records demonstrating adequate budget control and other records required by 2 CFR 200.302, including evidence of periodic account reconciliations.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 91 4. Program administration records:
a. Records demonstrating compliance with the written agreements required by Section VIII.B of this Notice.
b. Records demonstrating compliance with the applicable uniform administrative requirements required by Section VIII.D of this Notice. c. Records documenting required inspections, monitoring reviews and audits, and the resolution of any findings or concerns.

5. Records concerning other Federal requirements:
a. Equal opportunity and fair housing records.
i. Data on the extent to which each racial and ethnic group, and single-headed households by gender of household head) have applied for, participated in, or benefited from, any program or activity funded in whole or in part with HOME- ARP funds.
ii. Documentation that the PJ submitted a certification that it will affirmatively further fair housing consistent with HUD’s Interim Final Rule entitled Restoring Affirmatively Furthering Fair Housing Definitions and Certifications (86 FR 30779, June 10, 2021) (codified at 24 CFR 5.151 and 5.152;), available at https://www.federalregister.gov/documents/2021/06/10/2021-12114/restoring- affirmatively-furthering-fair-housing-definitions-and-certifications. iii. Records demonstrating compliance with the nondiscrimination and equal opportunity requirements of 24 CFR 92, Subpart H.
b. Affirmative marketing and MBE/WBE records.
i. Records demonstrating compliance with the affirmative marketing procedures and requirements of 24 CFR 92.351 and this Notice.
ii. Documentation and data on the steps taken to implement the jurisdiction's outreach programs to minority-owned (MBE) and female-owned (WBE) businesses including data indicating the racial/ethnic or gender character of each business entity receiving a contract or subcontract of $25,000 or more paid, or to be paid, with HOME-ARP funds; the amount of the contract or subcontract, and documentation of participating jurisdiction's affirmative steps to assure that minority business and women's business enterprises have an equal opportunity to obtain or compete for contracts and subcontracts as sources of supplies, equipment, construction, and services.
c. Records demonstrating compliance with the environmental review requirements of 24 CFR 92.352, 24 CFR part 58, and this Notice including flood insurance requirements.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 92 d. Records demonstrating compliance with the requirements of 24 CFR 92.353 and the provisions of Section VII.F of this Notice regarding displacement, relocation, and real property acquisition, including but not limited to:
i. project occupancy lists identifying the name and address of all persons occupying the real property on the date described in 24 CFR 92.353(c)(2)(i)(A), moving into the property on or after the date described in 24 CFR

92.353(c)(2)(i)(A), and occupying the property upon completion of the project; ii. lists of all individuals or families occupying hotels and motels and other nonresidential properties acquired, rehabilitated, and/or demolished and newly constructed to become HOME-ARP NCS or HOME-ARP rental housing that qualify for assistance under this Notice as members of a qualifying population, as well as records indicating whether such persons were assisted by the HOME- ARP program by the PJ following the closure of the nonresidential properties because of HOME-ARP activities
iii. lists of all individuals or families occupying HOME-ARP NCS that were converted during the required use period that qualify for assistance under this Notice, as well as records indicating whether moving costs or advisory services were provided as part of HOME-ARP administrative costs or under the HOME- ARP supportive services activity in Section VI.D of this Notice, and records indicating whether such persons were assisted by the HOME-ARP program by the PJ following the conversion of the HOME-ARP NCS units. iv. Documentation that the PJ has and followed a RARAP in accordance with 24 CFR 92.353 and 24 CFR 42.325.
e. Records demonstrating compliance with the labor requirements of 24 CFR 92.354, including contract provisions and payroll records.
f. Records demonstrating compliance with the lead-based paint requirements of 24 CFR part 35, subparts A, B, J, K, M and R, as applicable.
g. Records supporting compliance with conflict of interest requirements in 24 CFR 92.356, as revised by Section VII.H of this Notice, as well as documentation of any exceptions granted by HUD or a state PJ, as applicable, to the conflict of interest provisions in 24 CFR 92.356, as revised by Section VII.H of this Notice. h. Records demonstrating compliance with debarment and suspension requirements in 2 CFR part 2424.
i. Records concerning intergovernmental review, as required by 24 CFR 92.357. j. Records of emergency transfers requested under 24 CFR 5.2005(e) and 24 CFR 92.359 pertaining to victims of domestic violence, dating violence, sexual assault, or stalking, including data on the outcomes of those requests.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 93 k. Documentation of actions undertaken to meet the requirements of 24 CFR part 75 which implements section 3 of the Housing Development Act of 1968, as amended (12 U.S.C. 1701u).

6. State Recipients and Subrecipients: A PJ that distributes HOME-ARP funds to State recipients or subrecipients must require the State recipients or subrecipients to keep the records required by paragraphs 1. program records, 2. project records, 3. financial records,

4. program administration records, and 5. records concerning other federal requirements of Section VIII.F of this Notice, and such other records as the PJ determines to be necessary to enable the PJ to carry out its responsibilities under this Notice. The PJ need not duplicate the records kept by the State recipients or subrecipients. The PJ must keep records concerning its annual review of the performance and compliance of each State recipient and subrecipient as required under 24 CFR 92.504(a).

7. Period of record retention: All records pertaining to HOME-ARP funds must be retained for five years, except as provided below.
a. For HOME-ARP rental housing projects, records may be retained for five years after the project completion date; except that records of individual tenant income verifications, project rents and project inspections must be retained for the most recent five-year period, until five years after the affordability period terminates. b. For HOME-ARP TBRA projects, records must be retained for five years after the period of rental assistance terminates.
c. Written agreements must be retained for five years after the agreement terminates. d. Records covering displacements and acquisition must be retained for five years after the date by which all persons displaced from the property and all persons whose property is acquired for the project have received the final payment to which they are entitled in accordance with 24 CFR 92.353.
e. If any litigation, claim, negotiation, audit, monitoring, inspection, or other action has been started before the expiration of the required record retention period records must be retained until completion of the action and resolution of all issues which arise from it, or until the end of the required period, whichever is later.

8. Access to records: The PJ must provide citizens, public agencies, and other interested parties with reasonable access to records, consistent with applicable state and local laws and any other applicable grant conditions from other federal grant programs regarding privacy and obligations of confidentiality.

The PJ, subrecipient, contractor, or owner may create a program participant identifier code or number that can be used on a file and maintained internally, in such a way that the number itself does not inadvertently identify the program participant, (i.e., no use of initials, date of birth, or other pieces of information that might suggest the identity of the program participant). The “key” or “cypher” for the program participant identifier code would itself be confidential and would not leave the provider. In the circumstance of HUD programs, the DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 94 Unique Personal Identification Number which is generated within the comparable database could be used with auditors to identify records of services to distinct individuals, subject to the below requirement.

HUD and the Comptroller General of the United States, any of their representatives, have the right of access to any pertinent books, documents, papers, or other records of the PJ, state recipients, and subrecipients, in order to make audits, examinations, excerpts, and transcripts. If a provider of services or operator of an NCS is subject to state or local laws or other federal grant programs that require that HUD not be given access to records detailing PII of victims, then auditors or evaluators may be given access to representative files without any sharing of individual identifying information.

G. Reporting and Performance Reports.

The PJ must submit reports in a format and at such time as prescribed by HUD. In addition, HUD and Office of the Inspector General (OIG) staff must be given access, upon reasonable notice, to all information related to the selection, award, and use of HOME-ARP funds.

Each PJ must enter the required HOME-ARP data elements timely in IDIS.

1. For HOME-ARP rental activities under Section VI.B of this Notice, the PJ must enter complete project completion information when it completes the activity in IDIS, except the assisted units can be marked vacant until they are occupied by eligible households.

2. For HOME-ARP NCS activities under Section VI.E of this Notice, the PJ must enter complete project completion information when it completes the activity in IDIS. In addition, the PJ must report the disposition of any HOME-ARP-assisted NCS activity that is converted to another eligible use at the time of conversion.

3. For HOME-ARP TBRA activities under Section VI.C of this Notice, the PJ must report beneficiary information in IDIS at the time assistance is provided.

4. For HOME-ARP Supportive Services activities under Section VI.D of this Notice, the PJ must report in IDIS quarterly, by the 30th day after the end of each calendar quarter, on the number of homeless and not homeless households assisted with supportive services and housing counseling, including the race and ethnicity, household size, and household type of the households assisted.

HUD will issue guidance about reporting on HOME-ARP activities in the PJ’s consolidated annual performance and evaluation report (CAPER) required under 24 CFR 91.520, at a later date.

H. Confidentiality Requirements

1. All entities assisted by HOME-ARP funds must develop, implement, and maintain written procedures to require that –
DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 95 a. All records containing personally identifying information of any individual or family who applies for and/or receives HOME-ARP assistance will be kept secure and confidential;
b. The address or location of any NCS or HOME-ARP rental housing exclusively for individuals fleeing or attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking will not be made public, except as necessary where making the address or location public does not identify occupancy of the NCS or HOME-ARP rental housing, when necessary to record use restrictions or restrictive covenants in accordance with Section VI.B or VI.E, or with written authorization of the person or entity responsible for the operation of the NCS or HOME-ARP rental housing; and
c. The address or location of any program participant that is a fleeing or attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking will not be made public, except as provided under a privacy policy of the PJ consistent with state and local laws and any other grant conditions from other federal grant programs regarding privacy and obligations of confidentiality.

2. Documenting status of a qualifying population that is fleeing or attempting to flee domestic violence, dating violence, stalking, sexual assault, or human trafficking:

a. If an individual or family qualifies because the individual or family is fleeing or attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking then acceptable evidence includes an oral or written statement by the qualifying individual or head of household seeking assistance that they are fleeing that situation. An oral statement may be documented by either – i. a written certification by the individual or head of household; or ii. a written certification by a victim service provider, intake worker, social worker, legal assistance provider, health-care provider, law enforcement agency, legal assistance provider, pastoral counselor, or an intake worker in any other organization from whom the individual or family sought assistance.

The written documentation need only include the minimum amount of information indicating that the individual or family is fleeing or attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking and need not include any additional details about the conditions that prompted the individual or family to seek assistance.

IX. PERFORMANCE REVIEWS
HUD will review the performance of each PJ in carrying out its responsibilities for the use of HOME-ARP funds and its compliance with the requirements of this Notice. Such reviews may take the form of remote or on-site monitoring, review of IDIS data or reports, assessment of documents requested from the PJ, subrecipient, or other entity carrying out HOME-ARP activities, and inquiries resulting from external audit reports, media reports, citizen complaints, DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 96 or other sources of relevant information. HUD may also review a PJ’s timely use of HOME- ARP funds for eligible activities, including the progress of expenditures for individual projects or activities, the requirement to place a project in service in accordance with requirements in this Notice, and compliance of HOME-ARP rental housing and NCS with the 4-year deadline for completing projects.

If HUD preliminarily determines that a PJ has not met a requirement of this Notice or an applicable requirement of the HOME regulations at 24 CFR Part 92, HUD will communicate its determination in writing and provide the PJ with the opportunity to demonstrate, based on substantial facts, documentation, and data, that it has done so. HUD may extend any time period it provided to the PJ to demonstrate its compliance if upon request of the PJ, HUD determines that is it infeasible for the PJ to provide a full response within the prescribed period.

If the PJ fails to demonstrate to HUD's satisfaction that it has met the requirement, HUD will take corrective or remedial action in accordance with this section or 24 CFR 92.552.

A. Corrective and Remedial Actions
Corrective or remedial actions for a performance deficiency (e.g., failure to meet a provision of this Notice or an applicable provision of 24 CFR Part 92) will be designed to prevent a continuation of the deficiency; mitigate, to the extent possible, its adverse effects or consequences; and prevent its recurrence. HUD may impose corrective or remedial actions including but not limited to the following:

1. HUD may instruct the PJ to submit and comply with proposals for action to correct, mitigate and prevent a performance deficiency, including:
a. Preparing and following a schedule of actions for carrying out the affected activities, consisting of schedules, timetables, and milestones necessary to implement the affected activities;
b. Establishing and following a management plan that assigns responsibilities for carrying out the remedial actions;
c. Canceling or revising activities likely to be affected by the performance deficiency, before expending HOME-ARP funds for the activities;
d. Reprogramming HOME-ARP funds that have not yet been expended from affected activities to other eligible activities;
e. Reimbursing its HOME-ARP grant in any amount not used in accordance with the requirements of this Notice;
f. Suspending disbursement of HOME-ARP funds for affected activities; and g. Establishing procedures to ensure compliance with HOME-ARP requirements.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA 97 2. HUD may also:
a. Change the method of payment from an advance to a reimbursement basis and may require supporting documentation to be submitted for HUD review for each payment request before payment is made;
b. Determine the PJ to be high risk and impose special conditions or restrictions on the use of HOME-ARP funds in accordance with 2 CFR 200.208; and c. Take other remedies that may be legally available, including remedies under 2 CFR 200.339 and 200.340.

B. Sanctions

The requirements at 24 CFR 92.552 apply to HOME-ARP funds, except that the provision at 24 CFR 92.552(a)(2)(iv) related to failure to comply with matching contribution requirements shall not apply.

X. FINDING OF NO SIGNIFICANT IMPACT

A Finding of No Significant Impact (FONSI) with respect to the environment has been made in accordance with HUD regulations at 24 CFR part 50, which implement section 102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)). The FONSI is available for inspection at HUD's Funding Opportunities web page at:
https://www.hud.gov/program_offices/spm/gmomgmt/grantsinfo/fundingopps.

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ATTACHMENT D
C
ity of Alameda
Community Development Department
Good Neighbor Policies
P
ROVIDER: Five Keys Schools and Programs (Five Keys)
P
ROGRAM: Dignity Village
C
LIENTS TO BE SERVED: Residents of 47 units
HO
URS TO BE SERVED: 24 hours a day, 7 days a week
C
ONTRACT AMOUNT: $10,745,844
CO
NTRACT PERIOD: February 1, 2023 – January 31, 2028
G
OOD NEIGHBOR AGREEMENT:

The purpose of the Good Neighbor Agreement is to ensure that the PROVIDER is actively working with residents of Dignity Village to serve as positive neighbors to the surrounding community and the City at large. Achievable goals include:
• Create an organizational framework that addresses the community’s needs for responsive communications and effective problem resolution. The proposed management structure aims to be a model of best practices in the field of homeless services by exemplifying the principles of accountability, responsiveness, and effectiveness. • Involve the community in planning and decisions in the continued development of services for individuals and families without homes.
• Share respectful, open, and transparent communications regarding the program. • Ensure effective long-term monitoring and oversight of Dignity Village. • Communicate as needed with the City and community about the management and problem resolution systems for the program.
• Inform the community about the program’s objective, which is to provide low barrier, interim supportive housing and case management services leading to permanent housing s
olutions.

1. Guiding Principles
The PROVIDER will adopt the following guiding principles:
• Neighborhood – Maintain the health, safety, attractiveness, and livability of the immediate surrounding area by proactively implementing good neighbor practices. • Units – Guide residents in the responsibilities attached to the maintenance of a home. • Residents – Create a community environment that fosters a sense of home, dignity, self- determination, and improved quality of life for formerly homeless individuals and families.

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA • Property/Site – Maintain the buildings and grounds in cooperation with the residents at the highest quality to ensure the safety and wellbeing of residents , the longevity of the buildings, and enhancement of the surrounding neighborhood.

2. Community Engagement and Communication
Transparent and responsive communications between PROVIDER and the community are essential to create and maintain positive relationships regarding the project. • The PROVIDER will engage the community to keep it informed and provide opportunities for input to improve the program. Clear definition of scope. A scope of work will be created for community comment to establish an understood level of service for the program. It will be reviewed and revised by the City and PROVIDER as needed.

3. Strong Safety Plan
Safety and security are essential for residents to live peacefully and to maintain the attractive character of the surrounding neighborhood. PROVIDER will develop and commit to policies and practices to ensure community safety and to respond swiftly to the concerns of neighbors.

The program will create and maintain a safety plan. The plan will include safety measures to:
• Address emergencies including, but not limited to, fire, earthquake, and medical. • Protect foot, bicycle, and auto traffic.

Staff trained in crisis intervention and de -escalation will be available to monitor Dignity Village twenty-four hours a day. Staff will also be able to identify emergency situations and have the authority to intervene in disputes, identify rule violations, and connect residents with the appropriate resources to diffuse and stabilize situations.

The building and grounds will be maintained by the PROVIDER. The PROVIDER will be responsible for landscape upkeep, maintenance requests (emergency response when needed), communicating when exterior and interior repairs are needed, and seven day a week janitor services. Damage, such as graffiti, will be addressed and, if possible, removed by the next business day.

The PROVIDER will ensure that when repairs are being done by the City or the City’s designated agent, program participants are not in the area of the work and any valuables are to be removed from the area of work before the work is started.

The City will receive a copy of the Safety Plan and have the opportunity to review and make recommendations to strengthen the plan.

4. Complaint Process
Should an issue arise, neighbors of Dignity Village will be asked to call or email the PROVIDER’s Point of Contact (POC) at _______________ or (510) ___________. The POC will document contacts by listing the date, time, type of complaint and action(s) to be taken.

The POC will respond (when possible) via email/phone to all incidents within 24 hours, copying City staff. City staff may follow up to confirm that the issue has been resolved.

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5. Goals & Outcomes
The goal of the project is to house and serve homeless individuals and families. Successful outcomes will include:
● Residents will improve their housing stability and quality of life in a supportive environment.
● The surrounding neighborhood will benefit from the establishment of Dignity Village with attractive and well-maintained facilities.
● The City of Alameda and Alameda County will strengthen the system of care for our most vulnerable residents. The program provides 47 units with en suite bathrooms, two meals a day plus snacks, 24 hour per day, seven days a week onsite support, and janitorial and laundry services.

6. Case Management & Supportive Services
All residents will work with a PROVIDER Case Manager, Housing Navigator, Ambassador, and Activities Coordinator. Additional supportive services will be tailored to the needs of the residents. The Service Plan for each individual and/or family will be revie wed by the Site Manager and revised as needed.

7. Good Neighbor Orientation
PROVIDER will create and review a Good Neighbor policy with residents within 24 hours of move in. Residents will sign a Good Neighbor Agreement and be held to the behaviors and practices outlined in the Agreement. Violation of the Good Neighbor Agreement will be grounds for dismissal from Dignity Village.

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Appendix I
Good Neighbor Agreement

DIGNITY VILLAGE

GOOD NEIGHBOR AGREEMENT

Resident Name: ________________________________________________

Resident Address: ________________________________________________

Resident Phone: ________________________________________________

Resident Mobile: ________________________________________________

Resident Email: ________________________________________________

The purpose of the Good Neighbor Agreement is to ensure that you are committed to working with Five Keys Schools and Programs to act as a positive neighbor to the surrounding community and the City at large. You are required to actively participate and engage in the framework provided by staff of Dignity Village to address your community’s need for responsive communication and effective problem solving . Your participation requires direct and regular communication with staff. As a partner in decision making, your participation in the on -going development of services will require your willingness to share respectful, open, and transparent communications regarding the program, your new unit, your neighborhood, and your surrounding community.

Please review the following carefully with Dignity Village staff. Violation of the Good Neighbor Agreement will be grounds for removal from the program.

1. Guiding Principles
• Neighborhood – Maintain the health, safety, attractiveness, and livability of the immediate surrounding area by proactively contributing to good neighbor practices; • Homes – Take ownership of the responsibilities attached to the maintenance of a home with support from staff as needed;
• Resident – Create a community environment that fosters a sense of home, dignity, self - determination, and improved quality of life;
• Property/Site – Cooperate with staff to maintain the building and grounds at the highes t quality to ensure the safety and wellbeing of residents, the longevity of the buildings, and enhancement of the surrounding neighborhood.

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2. Community Engagement and Communication
Transparent and responsive communications between you and staff are essential to create and maintain positive relationships. Please consider participating in public outreach and /or opportunities for input regarding Dignity Village.

3. Strong Safety Plan
Safety and security are essential for you to live peacefully and to maintain the attractive character of your surrounding neighborhood. Staff will develop and commit to policies and practices to ensure community safety and to respond swiftly to the concerns of neighbors.

Staff will create and maintain a safety plan adapted to the specific safety and needs of your individual home. You will review any and all safety plans with staff and follow plans and staff directives in the event of an emergency.

The plan will include safety measures to:
• Address emergencies including, but not limited to, fire, earthquake, and medical. • Protect foot, bicycle, and auto traffic.
• Identify safe egress locations.

Staff that are trained in crisis intervention and de- escalation will be available to monitor Dignity Village 24 hours a day. Staff will also be able to identify emergency situations and have the authority to intervene in disputes, identify rule violations, and connect you with the appropriate resources to diffuse and stabilize situations.

Residents will ensure that when repairs are being done by Five Keys, the City, or the City’s designated agent, the area of the work will be cleared and unoccupied and any valuables and/or personal items are removed from the area of work before the work is started.

The City will receive a copy of the Safety Plan and have the opportunity to review and make recommendations to strengthen the plan. Residents who do not follow safety plans may be asked to leave the program.

4. Complaint Process
Should an issue arise, you or the neighbors of the Emergency Supportive Housing program will be asked to contact Dignity Village Site Manager, ____________________ at ______________________ or (510) ____________.
• The Site Manager will document issues by listing the date, time, type of complaint , and action(s) to be taken.
• The Site Manager will inform direct program staff of the issue and residents will be asked to meet with program staff to discuss and resolve any issues as needed. • Your participation in the resolution and follow up of any complaints is required.

5. Goals & Outcomes
The goal of Dignity Village is to house and serve unhoused individuals and families.

Successful outcomes will include:

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA ● Residents will improve their housing stability and quality of life in a supportive environment. Residents will leave Dignity Village with a long -term housing plan and significant savings.
● The surrounding neighborhood will benefit from the establishment of Dignity Village with attractive and well-maintained facilities.
● The City of Alameda and Alameda County will strengthen the system of care for the most vulnerable residents. The program provides 47 units with en suite bathrooms, two meals a day plus snacks, 24 hour per day, seven days a week onsite support, and janitorial and laundry services.

6. Case Management & Supportive Services
All residents will work with a Case Manager, Housing Navigator, Ambassador, and Activities Coordinator. Additional supportive services will be tailored to your needs. Each individual and/or family will have a Service Plan which will be reviewed by the Site Manager and updated as needed.

7. Good Neighbor Orientation
You will review and sign the Good Neighbor Agreement within 24 hours of moving in. You, your family members, and guests will be held to the behaviors and practices outlined in the Good Neighbor Agreement. Staff may provide additional orientation and/or training regarding best neighbor practices in which you will be required to participate. Violation of the Good Neighbor Agreement will be grounds for dismissal from the program.

The Good Neighbor Agreement has been reviewed with me by Dignity Village staff. I understand and agree to abide by the Good Neighbor Agreement. I further understand that a violation of the Good Neighbor Agreement may result in me and/or my family being asked to leave Dignity Village.

Date: _________________

Resident Name: ______________________________

Resident Signature: ______________________________

Date: _________________

Dignity Village Staff Name: ________________________________

Dignity Village Staff Signature: ________________________________

DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA Permanent Local Housing Allocation
Final Guidelines
Gavin Newsom, Governor
State of California
Alexis Podesta, Secretary
Business, Consumer Services and Housing Agency
Douglas R. McCauley, Acting Director
California Department of Housing and Community Development 2020 West El Camino Avenue, Suite 150
Sacramento, CA 95833
October 2019
Attachment E
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Department of Housing and Community Development 2 2019 PLHA Final Guidelines

The matters set forth herein are regulatory mandates, and are adopted in accordance with the authorities set forth below:

Quasi-legislative regulations … have the dignity of statutes … [and]… delegation of legislative authority includes the power to elaborate the meaning of key statutory terms… Ramirez v. Yosemite Water Co., 20 Cal. 4th 785, 800 (1999)

In consultation with stakeholders, the California Department of Housing and Community Development (Department) may adopt Guidelines to implement this Section, including determining allocation methodologies. Any guideline, rule, policy, or standard of general application employed by the Department in implementing this chapter shall not be subject to the requirements of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Title 2 Government Code, Part 1 of Division 3).

NOTE: Authority Cited: Health and Safety Code Section 50470, subdivision (d).

The Department reserves the right, at its sole discretion, to suspend or amend the provisions of these Guidelines, including, but not limited to, grant award amounts.

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Department of Housing and Community Development 3 2019 PLHA Final Guidelines

INTRODUCTION

Chapter 364, Statutes of 2017 (SB 2, Atkins) was part of a 15-bill housing package aimed at addressing the state’s housing shortage and high housing costs. Specifically, it establishes a permanent source of funding intended to increase the affordable housing stock in California. The revenue from SB 2 will vary from year to year, as revenue is dependent on real estate transactions with fluctuating activity. The legislation directs the California Department of Housing and Community Development (Department) to use 70 percent of the revenue collected, beginning in calendar year 2019, to provide financial assistance to local governments for eligible housing-related projects and programs to assist in addressing the unmet housing needs of their local communities. This program is hereafter referred to as the Permanent Local Housing Allocation (PLHA) program.

Guidelines for the PLHA program are organized into five Articles as follows:

Article I. General provisions: This article includes information on the purpose of the Guidelines, program objectives, and definitions used throughout the document.

Article II. Program funding: This article describes allocation formulas and methodologies, and award amounts.

Article III. Formula allocation component: This article describes the requirements for Applicants to apply for funds under the formula allocation of the PLHA program.

Article IV. Competitive allocation component: This article describes requirements and uses for PLHA competitive allocation funds.

Article V. Administration: This article describes administrative functions such as terms, non-performance remedies, and reporting and monitoring requirements.

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2019 Guidelines
Table of Contents
ARTICLE I. GENERAL PROVISIONS 5
Section 100. Purpose and Scope 5
Section 101. Definitions 5
ARTICLE II. PROGRAM FUNDING 9
Section 200. Allocations 9
Section 201. Award Amounts 10
ARTICLE III. FORMULA ALLOCATION COMPONENT 11
Section 300. Eligible Applicants 11
Section 301. Eligible Activities 12
Section 302. Threshold Requirements 13
Section 303. Application Review 16
Section 304. Deadlines and Funding Requirements 17
ARTICLE IV. COMPETITIVE ALLOCATION COMPONENT 17
Section 400. Eligible Applicants 17
Section 401. Eligible Activities 18
Section 402. Threshold Requirements 18
Section 403. Selection Criteria 20
Section 404. Application Review 22
Section 405. Deadlines and Funding Requirements 23
ARTICLE V. ADMINISTRATION 23
Section 500. Accounting Records 23
Section 501. Audits/Monitoring of Project Files 24
Section 502. Cancellation and Termination 25
Section 503. Reporting 26
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Department of Housing and Community Development 5 2019 PLHA Final Guidelines

ARTICLE I. GENERAL PROVISIONS

Section 100. Purpose and Scope
(a) These Guidelines (hereinafter “Guidelines”) implement, interpret, and make specific Chapter 364, Statutes of 2017 (SB 2, Atkins - hereinafter “SB 2”) as authorized by Health and Safety Code (HSC) Section 50470, which created the Building Homes and Jobs Trust Fund and the PLHA program. The principal goal of this program is to make funding available to eligible local governments in California for housing-related projects and programs that assist in addressing the unmet housing needs of their local communities. Twenty percent of the funding in the Building Homes and Jobs Trust Fund is required to be expended for Affordable Owner-Occupied Workforce Housing, and the program prioritizes investments that increase the supply of housing to households that are at or below 60 percent of the Area Median Income (AMI), adjusted for household size.

(b) These Guidelines establish terms, conditions, and procedures for local governments to submit applications to the Department for funds from the PLHA program’s three components, as listed below:
(1) Entitlement formula component per HSC 50470(b)(2)(B)(i)(I)

(2) Non-entitlement formula component per HSC 50470(b)(2)(B)(i)(II) (3) Non-entitlement competitive grant program component per HSC 50470(b)(2)(B)(i)(I) (eligible Applicants are the same as for component 2 above)

(c) The non-entitlement competitive grant program component prioritizes assistance to persons experiencing or At risk of homelessness.

NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC Section 50470, subdivision (b)(2)(A), subdivision (b)(2)(B)(i) and subdivision (b)(2)(B)(ii)(I-V).

Section 101. Definitions
All terms not defined below shall, unless their context suggests otherwise, be interpreted in accordance with the meanings of terms described in HSC Section 50470.

(a) “Accessory dwelling unit” (ADU) means a dwelling unit which is attached, detached or located within the living area of the existing dwelling or residential dwelling unit and which provides complete independent living facilities for one or more persons pursuant to Government Code (GC) Section 65852.2 and 65852.22. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family dwelling. An Accessory dwelling unit also includes the following: an efficiency unit, as defined in Section 17958.1 of the HSC, or a manufactured home, as DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA

Department of Housing and Community Development 6 2019 PLHA Final Guidelines

defined in Section 18007 of the HSC.

(b) "Activity" means any single eligible undertaking carried out as part of an Applicant's allocation(s) under the Program.
(c) “Affordable” means a housing unit that satisfies at least one of the following criteria:

1. If the unit is being rented to low-income, Very low-income or Extremely low-income households, it complies with the Multifamily Housing Program guidelines Section 7312 and the Section 7301 definition of “Affordable Rent”; or

2. If the unit is being sold, it is offered at an “Affordable housing cost”, as published in the Fannie Mae Selling Guide, Part B, Debt to Income Ratios, as updated annually
(https://www.fanniemae.com/content/guide/selling/b3/6/02.html#DTI.20Rat ios), and it complies with the income limits stated in the definitions of Moderate-Income and Lower-Income in this section; or

3. If the unit is being rented to Moderate-Income households, it is available at a gross rent, including a utility allowance, that does not exceed 30 percent of the applicable income eligibility level, and complies with the definition of Moderate-Income in these guidelines
(d) "Affordable Owner-Occupied Workforce Housing" (AOWH) means owner-occupied housing per HSC Section 50092.1 that is affordable to persons and families of low or moderate income, as that term is defined in HSC Section 50093, except in High-cost areas where Moderate-income shall include households earning up to 150 percent of AMI.

(e) “Annual Progress Report” (APR) means the Housing Element APR required by GC Section 65400 on the prior year’s activities and due to the Department April 1 of each year.
(f) “Annual Report" means a form issued by the Department and completed by a Local government awarded PLHA funds on which the Local government documents the uses and expenditures of any allocated funds and outcomes achieved.

(g) "Applicant" means an eligible Local government applying for the program to administer one or more eligible activities. Applicant also means a Local or Regional Housing Trust Fund delegated by an eligible Local government to apply for the program and administer its allocation in accordance with all program rules.

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(h) “Area Median Income” or “AMI” means the most recent applicable county median family income published by the Department, available at the following link:
http://www.hcd.ca.gov/grants-funding/income-limits/state-and-federal-income- limits.shtml

(i) “At risk of homelessness” means the same as defined in Title 24 Section 578.3 of the Code of Federal Regulations and also includes any household receiving rental assistance funded by the California Emergency Solutions and Housing (CESH) program or the California Homeless Emergency Aid Program (HEAP). (j) “Capitalized Reserve for Services” means the reserve funded by the Local government pursuant to Section 301(a)(5) to address project supportive service budget deficits attributable to shortfalls in service funding sources.

(k) “Comprehensive Housing Affordability Strategy” or “CHAS” means annual data compiled by the United States Census Bureau for the U.S. Department of Housing and Urban Development (HUD) to document the extent of housing problems and housing needs, particularly for low-income households.

(l) "Community Development Block Grant" or "CDBG" means the program created pursuant to Title I of the Housing and Community Development Act of 1974, 42 U.S.C. 5301 et seq., as amended.
(m) “Department” means the California Department of Housing and Community Development.

(n) “Extremely Low Income” has the meaning set forth in HSC Section 50106, which is a maximum of 30 percent of AMI. Grantees shall utilize income limits issued by the Department at the following link:
http://www.hcd.ca.gov/grants-funding/income-limits/state-and-federal-income- limits.shtml.
(o) “Fund” means the Building Homes and Jobs Trust Fund pursuant to HSC Section 50470.

(p) “High-cost area” means those counties defined as high cost by the Federal Housing Finance Agency (at: https://www.fhfa.gov/DataTools/ and those counties for which HUD adjusted the Very low income and low-income rents due to high costs (at:
https://www.huduser.gov/portal/pdrdatas_landing.html), as published by the Department in the annual PLHA Notice of Funding Availability.
(q) “Local government” means any city, including a charter city, any county, including a charter county, or a city and county, including a charter city and county.

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(r) “Local Housing Trust Fund” or “Regional Housing Trust Fund” means a public, joint public and private fund or charitable nonprofit organization described in Section 501(c)(3) of the Internal Revenue Code, which was established by legislation, ordinance, resolution (including nonprofit articles of incorporation), or a public-private partnership organized to receive specific revenue to address local or regional housing needs.

(s) “Low or Lower Income” has the meaning set forth in HSC Section 50079.5, which is a maximum of 80 percent of AMI. Grantees shall utilize income limits issued by the Department at the following link:
http://www.hcd.ca.gov/grants-funding/income-limits/state-and-federal-income- limits.shtml.
(t) “Moderate-Income” has the meaning set forth in HSC Section 50093, which is a maximum of 120 percent AMI, or in High-cost areas, 150 percent of AMI. Grantees shall utilize income limits issued by the Department at the following link:
http://www.hcd.ca.gov/grants-funding/income-limits/state-and-federal-income- limits.shtml.
(u) “Non-entitlement local government” means a Local government in an area which is not a metropolitan city or part of an urban county, a Local government that, as of September 1, 2017, was an incorporated city with a population of less than 50,000 or a county with an unincorporated area population of less than 200,000 persons which had not entered into a three-year Urban County Cooperation Agreement, or a Local government that was not otherwise entitled to receive CDBG funds directly from HUD.

(v) “Operating subsidies” means payments to owners of affordable housing developments that make the housing more affordable by covering a portion of the ongoing costs of operating the development. Such payments would have the same effect as rental assistance.

(w) “Owner-occupied” means a dwelling which is occupied by the owner and includes a single family dwelling or a dwelling unit in a stock cooperative, as defined by Business and Professions Code (BPC), Section 11003.2, a community apartment project, as defined by BPC Section 11004, or a condominium project, as defined by subdivision (c) of BPC Section 11004. 5.
(x) "Plan" means the document submitted by the Applicant to the Department as part of a complete application in which the Applicant proposes to use allocated funds for at least one eligible Activity. The Plan shall have a term of five years. In succeeding years, the Local government is required to obtain the approval of the Department for any amendments made to the Plan, as set forth in Section 302(c)(5).

(y) “Permanent Local Housing Allocation Program", “Program”, or "PLHA" means the program developed to annually allocate 70 percent of the moneys deposited into the Fund pursuant to HSC Section 50470(b)(2)(B)(i).

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(z) “Permanent supportive housing” has the same meaning as in HSC Section 50675.14, that is, housing with no limit on the length of stay, that is occupied by the target population, and that is linked to onsite or offsite services that assist the supportive housing residents in retaining the housing, improving his or her health status, and maximizing his or her ability to live and, when possible, work in the community.

Permanent supportive housing may include associated facilities if used to provide services to housing residents. Permanent supportive housing does not include “health facility” as defined by HSC Section 1250 or any “alcoholism or drug abuse recovery or treatment facility” as defined by HSC Section 11834.02 or “Community care facility” as defined in HSC Section 1502, “Mental health rehabilitation centers” as defined in Section 5675 of the Welfare and Institutions Code (WIC), or other residential treatment programs.

(aa) “Regional Housing Needs Allocation" or "RHNA" means the share of the regional housing need represented by persons at all income levels within the area significantly affected by the general plan of the city or county allocated to an Applicant Local government pursuant to GC Section 65584(b).

(bb) “Sponsor” means the legal entity or combination of legal entities with continuing control of a Rental Housing Development. Where the borrowing entity is or will be organized as a limited partnership, Sponsor includes the general partner or general partners who have effective control over the operation of the partnership, or, if the general partner is controlled by another entity, the controlling entity. Sponsor does not include the seller of the property to be developed as the rental housing Project, unless the seller will retain control of the Project for the period necessary to ensure Project feasibility as determined by the Department.

(cc) “Very Low Income” has the meaning set forth in HSC Section 50105, which is a maximum of 50 percent of AMI. Grantees shall utilize income limits issued by the Department at the following link:
http://www.hcd.ca.gov/grants-funding/income-limits/state-and-federal-income- limits.shtml.

NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC Section 50470.5 and 50470, subdivision (b)(2).

ARTICLE II. PROGRAM FUNDING
Section 200. Allocations

(a) SB 2 created a dedicated revenue source for affordable housing and directed the Department to make available 70 percent of the moneys in the Building Homes and Jobs Trust Fund, collected on and after January 1, 2019, to Local governments through the following allocations:

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(1) Ninety percent of the moneys available shall be allocated based on the formula used under Federal law to allocate CDBG funds within California. This is the formula specified in Title 42 United States Code (USC), Section 5306.

(A) The amount of funds awarded to each Local government eligible for the entitlement formula component shall be determined by the 90 percent of PLHA funds available pursuant to this paragraph (1) and the percentage of funds received by the entitlement Local government in the CDBG federal fiscal year 2017 allocation process performed by HUD.
(B) Through the formula specified in paragraph (1), the percentage of funds allocated to Non-entitlement local governments shall be distributed to Non-entitlement local governments through a competitive grant program.

(2) Ten percent of the moneys available shall be allocated equitably among Non-entitlement local governments. The equitable allocation awarded to each Local government eligible for the Non-entitlement formula component shall be based on the sum of: (1) 50 percent of the funding available for the Non-entitlement formula component divided by the number of local governments eligible for the Non-entitlement formula component and (2) 50 percent of the funding allocated in proportion to each Non-entitlement local government’s share of the total most severe housing need in California’s Non-entitlement local governments, based upon the most recent HUD Comprehensive Housing Affordability Strategy.
(b) After funds are appropriated by the Legislature as part of the budget act, the Department will issue one or more Notices of Funding Availability (NOFA). Local governments shall submit an application under the NOFA pertaining to the specific allocation for which the Local government is eligible.

(c) It is recommended that Local governments that were urban counties in accordance with the distribution of funds pursuant to the formula specified in 42 USC, Section 5306 for the federal fiscal year 2017 provide a proportional share of their allocations to Local governments within their county with which they had a three-year Urban County Cooperation Agreement as of September 1, 2017, provided that these Local governments meet the threshold requirements of the PLHA and expend sub-allocated funds for eligible activities within the deadlines of the Standard Agreement governing the sub-allocation.

NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC Section 50470, subdivision (b)(2)(B).

Section 201. Award Amounts
(a) The formula allocation amounts derived pursuant to the formulas in Section 200 will be announced in the NOFA.

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(b) The maximum application amount and the minimum application amount for the competitive allocation will be stated in the NOFA.

(c) An Applicant may apply for its formula allocation from the current and two prior NOFAs for which it did not receive an award, provided that the award meets the requirements of Section 304(a).

NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC Section 50470, subdivision (b)(2)(B).

ARTICLE III. FORMULA ALLOCATION COMPONENT
Section 300. Eligible Applicants

(a) Eligible Applicants for the entitlement formula component described in Section 100(b)(1) are limited to the metropolitan cities and urban counties allocated a grant for the federal fiscal year 2017 pursuant to the federal CDBG formula specified in 42 USC, Section 5306.
(b) Eligible Applicants for the non-entitlement formula component described in Section 100(b)(2) and the competitive grant program component described in Section 100(b)(3) are limited to the Non-entitlement local governments.

(c) A Local government may delegate another Local government to submit an application and administer on its behalf its formula allocation of Program funds, provided that the Local governments enter into a legally binding agreement and the funds are expended for eligible Activities and consistent with Program requirements. The delegating Local government shall be identified in the application. The administering Local government shall be responsible for all Program requirements.
(d) A Local government may delegate a Local or Regional Housing Trust Fund to submit an application and administer on its behalf its formula allocation of Program funds, provided that the Local government enters into a legally binding agreement with the Local or Regional Housing Trust Fund and the funds are expended for eligible Activities and consistent with Program requirements. The delegating Local government shall be identified in the application. The Local or Regional Housing Trust Fund shall be responsible for all Program requirements.

(e) An Applicant shall not be eligible to receive a new allocation of PLHA funds if it has an uncommitted amount of formula PLHA funds greater than the following:
(1) Four times the pending annual allocation if the pending annual allocation is $125,000 or less;
(2) $500,000 if the pending annual allocation is greater than $125,000 and less than $500,000;
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(3) The amount of the pending annual allocation if the pending allocation is $500,000 or more.

NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC Section 50470, subdivision (b)(2)(B).

Section 301. Eligible Activities

(a) Eligible Activities are limited to one or more of the following:
(1) The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing that is Affordable to Extremely low-,Very low-, Low-, or Moderate-income households, including necessary Operating subsidies.

(2) The predevelopment, development, acquisition, rehabilitation, and preservation of Affordable rental and ownership housing, including Accessory dwelling units (ADUs), that meets the needs of a growing workforce earning up to 120 percent of AMI, or 150 percent of AMI in high-cost areas. ADUs shall be available for occupancy for a term of no less than 30 days.
(3) Matching portions of funds placed into Local or Regional Housing Trust Funds.

(4) Matching portions of funds available through the Low- and Moderate-Income Housing Asset Fund pursuant to subdivision (d) of HSC Section 34176.

(5) Capitalized Reserves for Services connected to the preservation and creation of new Permanent supportive housing.

(6) Assisting persons who are experiencing or At risk of homelessness, including, but not limited to, providing rapid rehousing, rental assistance, supportive/case management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing.
(A) This Activity may include subawards to Administrative Entities as defined in HSC Section 50490(a)(1-3) that were awarded CESH program or HEAP funds for rental assistance to continue assistance to these households.

(B) Applicants must provide rapid rehousing, rental assistance, navigation centers, emergency shelter, and transitional housing activities in a manner consistent with the Housing First practices described in 25 CCR, Section 8409, subdivision (b)(1)-(6) and in compliance with WIC Section 8255(b)(8). An Applicant allocated funds for the new construction, rehabilitation, and preservation of Permanent supportive housing shall incorporate the core DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA

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components of Housing First, as provided in WIC Section 8255, subdivision (b).

(7) Accessibility modifications in Lower-income Owner-occupied housing.

(8) Efforts to acquire and rehabilitate foreclosed or vacant homes and apartments.

(9) Homeownership opportunities, including, but not limited to, down payment assistance.
(10) Fiscal incentives made by a county to a city within the county to incentivize approval of one or more Affordable housing Projects, or matching funds invested by a county in an Affordable housing development Project in a city within the county, provided that the city has made an equal or greater investment in the Project. The county fiscal incentives shall be in the form of a grant or low-interest loan to an Affordable housing Project. Matching funds investments by both the county and the city also shall be a grant or low-interest deferred loan to the Affordable housing Project.
(b) A Local government that receives an allocation shall use no more than 5 percent of the allocation for costs related to the administration of the Activity(ies) for which the allocation was made. Staff and overhead costs directly related to carrying out the eligible activities described in Section 301 are “activity costs” and not subject to the cap on “administrative costs.” A Local government may share any funds available for administrative costs with entities that are administering its allocation.

(c) Two or more Local governments that receive PLHA allocations may expend those moneys on an eligible jointly funded project as provided for in Section 50470 (b)(2)(B)(ii)(IV). An eligible jointly funded project must be an eligible Activity pursuant to Section 301(a) and be located within the boundaries of one of the Local governments.
(d) Entitlement Local governments may use the flow of PLHA funds to incentivize private lender loans and to guarantee payments for some or all public agency bond financings for activities consistent with the uses identified in Section 301 “Eligible Activities”. This loan guarantee Activity must be identified and fully explained in the Applicant’s “Plan”.

NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC Section 50470, subdivisions (b)(2)(B)(ii)(IV), (b)(2)(D)(i-x), and (b)(3).

Section 302. Threshold Requirements
Applicants must meet all the following threshold requirements for participation in the formula allocation:
(a) Housing Element compliance: The Applicant and any delegating Local government, if applicable, must have a Housing Element that has been adopted by the Local DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA

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government’s governing body by the application deadline and subsequently determined to be in substantial compliance with state Housing Element Law pursuant to GC Section 65585. A Local government’s current Housing Element compliance status can be obtained by referencing the Department’s website at http://www.hcd.ca.gov/community-development/housing-element.

(b) APR on the Housing Element submitted to the Department: The Applicant and any delegating Local government, if applicable, must submit to the Department the APR required by GC Section 65400 for the current or prior year by the application deadline date.
(1) Please be advised that the Department will not accept other reports in lieu of the APR. Housing Authority Financial Reports, Redevelopment Reports, and other similar reports will not be accepted as meeting this requirement. If uncertain of the status of the report submittal for a Local government, please contact the Department for more information.
(c) Submit, by the deadline specified in the NOFA, on a form made available by the Department, a complete application which shall meet the following minimum requirements:

(1) Application requests an allocation pursuant to Section 200 in order to carry out one or more of the eligible activities described in Section 301. Except for a jointly funded project as described in Section 301(c), any activities must be carried out within the jurisdiction of the Applicant Local government.

(2) Submission of the application is authorized by the governing boards of the Applicant.
(3) Certification in the resolution that, if the Local government proposes allocation of funds for any Activity to another entity, the Local government’s selection process shall avoid conflicts of interest and shall be accessible to the public. For the purposes of this paragraph, “entity” means a housing developer or program operator; “entity” does not mean an administering Local government to whom a Local government delegates its PLHA formula allocation, pursuant to Section 300(d).

(4) A Plan detailing:
(A) The manner in which allocated funds will be used for eligible Activities. (B) A description of the way the Local government will prioritize investments that increase the supply of housing for households with incomes at or below 60 percent of AMI. Programs targeted at households at or below 60 percent of AMI will be deemed to meet this requirement.

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(D) Evidence that the Plan was authorized and adopted by resolution by the Local government and that the public had an adequate opportunity to review and comment on its content.
(E) The following for each proposed Activity:

(i) A description of each proposed Activity, pursuant to Section 301, and the percentage of funding allocated to it. The description shall specifically include the percentage of funds, if any, directed to AOWH. (ii) The projected number of households to be served at each income level and a comparison to the unmet share of the RHNA at each income level.

(iii) A description of major steps/actions and a proposed schedule required for the implementation and completion of the Activity.
(iv) The period of affordability and level of affordability for each Activity. Rental Projects are required to have affordability periods of at least 55 years.

(5) The Plan submitted in response to the NOFA shall be for a term of five years. Local governments shall obtain approval of the Department for amendments made to the Plan in each succeeding year of the term of the Plan. Reallocations of more than 10 percent of funds among Activities require amendment of the Plan, with approval granted by the governing body at a publicly noticed public meeting. (6) A certification that, if funds are used for the acquisition, construction, or rehabilitation of for-sale housing projects or units within for-sale housing projects, the grantee shall record a deed restriction against the property that will ensure compliance with one of the following requirements if the property is no longer the primary residence of the homeowner due to sale, transfer or lease, unless it is in conflict with the requirements of another public funding source or law:

(A) The PLHA loan and any interest thereon shall be repaid to the Local government’s PLHA account. The Local government shall reuse the repayments consistent with Section 301; or

(B) The initial owner and any subsequent owner shall sell the home at an Affordable housing cost to a qualified Lower-Income or Moderate-Income household; or

(C) The homeowner and the Local government shall share the equity in the unit pursuant to an equity-sharing agreement. The grantee shall reuse the proceeds DocuSign Envelope ID: 194E5B32-B907-48CD-A99B-5CADF365C60C DocuSign Envelope ID: 14885AA9-A28F-4D14-A351-60C29719B952 DocuSign Envelope ID: 184B7D4A-0C7A-4652-B03E-D92F6CC390EA

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of the equity-sharing agreement consistent with this section.

(7) A certification that, if funds are used for the development of an Affordable Rental Housing Development, the Local government shall make the PLHA assistance in the form of a low-interest, deferred loan to the Sponsor of the Project. The loan shall be evidenced through a Promissory Note secured by a Deed of Trust, and a Regulatory Agreement shall restrict occupancy and rents in accordance with the Local government-approved underwriting of the Project for a term of at least 55 years.

(8) A Program income reuse plan describing how repaid loans will be reused for eligible activities specified in Section 301.

NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC Section 50470, subdivision (b)(2)(B)(ii).

Section 303. Application Review

(a) Applicants must submit a complete application by the deadline stated in the NOFA in order to be eligible for funding. Application forms provided by the Department will be available upon release of the NOFA and will require Applicants to submit the forms and other documents to demonstrate that the Local government has met threshold requirements.
(b) The Department may request additional information to complete its review. (c) Applications recommended for funding are subject to conditions specified by the Department. Applicants will receive an official letter of award after the Department approves funding recommendations.

(d) The Department may issue an Over-the-Counter formula allocation NOFA after completing the NOFA process so that Local governments who were not able to submit formula allocation applications by the application deadline will have another opportunity to do so.
(e) If funding proposed in Local government Plans for AOWH activities is lower than 20 percent of the moneys available in the Fund, the Department may require Local governments to use a specific percentage of their annual formula allocations in some future year for AOWH activities as part of the annual funding process.

NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC Section 50470, subdivision (b)(2)(A).

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Alameda City CouncilOctober 18, 2022

Alameda City Council
October 18, 2022