Lynwood City Council
July 1, 2025

ELECTRIC – SPECIALIZED CIRCUITS

REHABILITATION STANDARD: Rehabilitate existing devices to operate.

REPLACEMENT STANDARD:

Minimum Life: 15 Years
Kitchen receptacles within 6 feet of a sink, all bath receptacles and at least one exterior receptacle shall be protected by a GFCI. Arc fault receptacles shall be installed in all bedrooms, family, dinning, and living rooms, closets, hall walls, and recreation rooms per National Electric Code 2008.

ELECTRIC – KITCHEN ELECTRIC DISTRIBUTION

REHABILITATION STANDARD:

Minimum Life: 15 Years
Electric service may be supplied to trash compactors, microwave ovens, double ovens, range grills, and any appliance proposed for installation.

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REPLACEMENT STANDARD:

Minimum Life: 15 Years
Permanently installed or proposed stoves, refrigerators, freezers, dishwashers and disposals, washer and dryers shall have separate circuits sized to N.E.C. Two separate 20 amp counter circuits are required with each kitchen area.

ELECTRIC – FIXTURES

REHABILITATION STANDARD: None

REPLACEMENT STANDARD:

Minimum Life: 20 Years
All halls, rooms necessary to cross to other rooms and stairways must be well lighted and controlled by a 3 -way switch using concealed wiring. Attics must have utility fixtures. All fixtures shall be Energy Star. Replace all incandescent bulbs with fluorescent or LED bulbs. Exterior door lighting shall provide 100 lumens at ground level (motion detectors allowed). Garage doors shall be equipped with electric ope ners with laser safety devices. Bedrooms and living areas may receive Energy Star ceiling fans.

ELECTRIC – ALARMS

REHABILITATION STANDARD:

Minimum Life: 5 Year
Existing fire and smoke, CO shall be rehabilitated to operating condition. Security system may be rehabilitated as needed. Exterior doors shall be alarmed when pools are present.

REPLACEMENT STANDARD:

Minimum Life: 15 Years
Directly wired, battery back -up smoke detectors are required on each dwelling floor.

Interconnected smoke detectors are re quired for special needs and wheelchair users’ homes. CO detectors are required with all fuel burning furnaces. Security systems may be installed at 1st floor doors and windows when economically feasible.

ELECTRIC – INTERIOR DISTRIBUTION

REHABILITATION STANDARD: None

REPLACEMENT STANDARD:

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Minimum Life: 20 Years
All rooms shall be rewired to the 2008 Edition of the National Electric Code using affordable fixture allowances and Energy Star fixtures. Minimum of one 20-amp circuit per room.

ELECTRIC – SERVICE AND PANEL

REHABILITATION STANDARD:

Minimum Life: 15 Years
Distribution panels shall have a main disconnect, at least 10 circuit breaker protected circuits, a 100-amp minimum capacity and be adequate to safely supply existing and proposed devices.

Electrical panel shall be replaced if not properly grounded, to local codes. All panel upgrades require approval by Southern California Edison.

REPLACEMENT STANDARD:

Minimum Life: 20 Years
Single Family: 200-amp service with a 24-circuit panel is allowed for homes of up to 1,800 SF.

Homes larger than 1,800 SF or all electric require 200 amp service with a main disconnect panel containing at least 30 circuit breaker positions.

Two-Four Family: 100 -150-amp service to each unit with a main d isconnect panel containing at least 20-24 circuit breaker positions. All panel upgrades require approval by Southern California Edison.

SECTION IX: PLUMBING SYSTEM

NOTE: All plumbing work requires permits from the Building Division.

PLUMBING SYSTEM – DRAIN, WASTE, VENT LINES

REPLACEMENT STANDARD:

Minimum Life: 20 Years
ABS replacement lines shall be installed in accordance with the most recently approved version of the State of Illinois plumbing code.

PLUMBING SYSTEM – PLUMBING FIXTURES

REHABILITATION STANDARD:

Minimum Life: 5 Years
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All fixtures and faucets when replaced will be retrofitted with low flow aerators: kitchen faucets with a maximum flow rate of 2.0 gal/min; bath faucets with a maximum flow rate of 1.5 gal/min.

Tub and shower valves shall have thermostatic or pressure balance valves.

REPLACEMENT STANDARD: California Water Sense
Minimum Life: 20 Years
Single lever, low flow, 2.0 gal/min kitchen and 1.6 gal/min bath, metal faucets and 2.5 gal/min maximum shower diverters with lifetime drip-free warranty. White ceramic, 1.1 GPF ultra low flow toilets, double bowl stainless steel or porcelain kitchen sinks, fiberglass tubs and surrounds and steel or porcelain enameled 5' tubs. Tub and shower valves shall have thermostatic or pressure balance valves.

PLUMBING SYSTEM – PLUMBING MINIMUM EQUIPMENT

REHABILITATION STANDARD: None

REPLACEMENT STANDARD:

Minimum Life: 10 Years
Every dwelling shall contain a double or single bowl kitchen sink, and a 3-piece bath.

PLUMBING SYSTEM – FIRE SPRINKLERS

REHABILITATION STANDARD: Rehabilitate all.

REPLACEMENT STANDARD: Required in homes for wheelchair bound populations when economically feasible.

PLUMBING SYSTEM – WATER HEATERS

REHABILITATION STANDARD:

Minimum Life: 5 Years
The minimum capac ity for units with two bedrooms or less shall be 30 gallons, larger units shall have a minimum capacity of 40 gallons. Water heaters shall have pressure relief valves with drip legs that extend to within one foot of the exterior ground, in copper pipe. All water heaters shall have seismic strapping.

REPLACEMENT STANDARD:

Minimum Life: 12 Years
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Energy Star, high efficiency, pilotless, Energy Star, gas fired or dual element electric (0.97) water heaters with at least R -7 insulation and a 12 -year replacement warranty. 40 gallons electric for 1 and 2-bedroom units and 40 gallons gas or 52 gallons electric for 3 - and 4-bedroom units. Install heat pump water heaters when feasible. All water heaters shall have seismic strapping.

PLUMBING SYSTEM – WATER SUPPLY

NOTE: No pipe, plumbing, fixture, fitting, or faucet intended to convey drinking or cooking water shall contain no more than .25 percent lead (AB 1953).

REHABILITATION STANDARD: 10 Years
Minimum Life:

All homes shall be tested to identify and eliminate al l leaks. All fixtures must be supplied with 2 gallons per minute water flow and shut off valves must operate. Lead and galvanized pipe shall be replaced with copper, PVC or PEX, if local code allowed. All accessible hot water lines shall be insulated; maximum static pressure is 60 psi.

REPLACEMENT STANDARD:

Minimum Life: 20 Years
All fixtures shall have brass shut off valves. Exterior hose bibs with air gap are required.

SECTION X: HVAC

NOTE: All work requires permits from the Building Division.

HVAC – CHIMNEY/FIREPLACE REHABILITATION

REHABILITATION STANDARD:

Minimum Life: 20 Years
Unsound chimneys shall be rehabilitated or removed. When chimneys must be used for combustion ventilation, they shall be replaced.

REPLACEMENT STANDARD:

Minimum Life: 20 Years
Replacement furnace flues when required shall be metal double or triple walled as recommended by the equipment manufacturer.

If the service life of the chimney is comparable to service life of heating plant, then no replacement is necessary. If t he chimney needs replacing or a new liner, the chimney will be eliminated and replaced with a high efficiency, power vented unit.
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HVAC – DISTRIBUTION/VENTILATION SYSTEM

REHABILITATION STANDARD:

Minimum Life: 5 Year
Central air conditioning shall be inspected, serviced and refurbished per diagnostic testing of unit and distribution system – per (BPI) technical standards for air conditioning and heat pump specialist as described in Chapter 6 of the Saturn Mechanical Systems Field Guide, 2006. Must meet 2008 Title-24 Standards.

REPLACEMENT STANDARD:

Minimum Life: 20 Years
All ductwork shall be insulated to R -4, seams sealed with Mastic and run in conditioned space within the building envelope. Air leakage and ventilation may be brought into conformance to Chapter 4 of HPSWC. Must meet Title-24 Standards.

HVAC – CENTRAL EQUIPMENT

REHABILITATION STANDARD:

Minimum Life: 5 Years
Heating plants that are less than 5 years old and rated 65 AFUE efficiency or better shall be tested and tuned-upper BPI. Energy Star setback thermostats are required.

REPLACEMENT STANDARD:

Minimum Life: 20 years
Condensing gas furnaces rated over 86 AFUE and heat pumps over 13.5 SEER with 10-year warranty on parts and 5 years labor. Air to air heat exchangers are eligible for thi s program. HVAC system shall be sized to maintain 68ºF measured 36" off the floor when the outside temperature is 84ºF (the average yearly maximum), in all habitable and essential rooms. Interior design temperature used for heating and cooling load calculations per Title-24.

SECTION XI: SPECIAL CONSTRUCTION

SPECIAL CONSTRUCTION – ACCESSIBILITY FOR SPECIAL NEEDS CLIENTS

One of the following levels of accessibility shall be met dependent upon the clients’ physical needs and financial resources:

Accessibility:
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1. No-Step Entry;

2. Adequate Doorways; and

3. Usable Bathroom.

Usable Home: If requested by a physically disabled tenant, home shall meet this level of accessibility when funding is available:

1. Accessible Route into and through the Dwelling Unit;

2. Accessible Switches, Outlets & Controls;

3. Reinforced Walls for Grab Bar Installation;

4. Usable Kitchens; and

5. Ground Floor Bedroom.

Full Accessibility:

1. Wheelchair turning space in kitchen, bath and hall areas;

2. Doors – maximize space and lever hardware throughout;

3. Kitchen – accessible to wheelchair bound;

4. Bathroom fixtures per universal design standard;

5. Accessible controls in all areas; and

6. Communication devices in bath and at front and rear door.

SPECIAL CONSTRUCTION – LEAD SAFE REGULATIONS

REHABILITATION STANDARD / REPLACEMENT STANDARD
In all federally -funded projects, the City shall follow the requirements listed on the attached “Summary of Lead-Based Paint Requirements.

International Energy Conservation Code

1. All new construction work must also conform to the International Energy Conservation Code (IECC) and applicable state or local energy conservation codes.

2. Additionally, the City requires that all new building construction complies with the State of California Energy Code.

Section 504 and Fair Housing

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1. Section 504 and Fair Housing rules impact the design of your project by setting standards for the appropriate number and characteristics of accessible units in your project. The applicability of these standards depends on the size and type of the project.

CONSTRUCTION PROCESS REQUIREMENTS

In addition to the requirements related to property standards discussed in Part I above, the City of Lynwood HOME program has requirements that relate to the following aspects of the construction process itself:

1. Inspection protocols;

2. Screening contractors;

3. Construction Scheduling;

4. Pre-construction conferences: who is included, what is covered;

5. Processing and tracking payments;

6. Change order management and payment processes; and

7. Monitoring reports from partner organizations

INSPECTIONS AND SPECIFICATIONS

The City shall follow inspection procedures as described below to ensure that all work is being completed on time and within stated quality guidelines.

1. Initial inspections: establish scope of work and must be allotted sufficient time for interviewing the owner or others, delving into the properties functional characteristics, and to develop thorough, articulate scopes specific to the job inspected.

a. The specifications must include detailed drawings and reference material as needed to fully explain all aspects of the scope, especially special conditions requiring unusual steps in the repair.

2. Final approval of plans and specifications : The City requires that plans and specifications are submitted for final review and approval. The following must be addressed prior to approval:

a. The final plans and specifications must be consistent with the scope of work defined in the Recipient’s agreement with the City.

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b. Note that advertisements for construction contract bids may not be published until plans and specifications for such contract have been unconditionally approved by the City.

c. Final construction cost estimates, including deductive alternatives, must be provided.

Estimates for line item bids must include estimated quantities, unit costs, and total costs.

3. Progress inspections:

a. The City and HUD requires that inspections be documented and include the signature of the inspector and the date.
b. An inspection will determine if work completed corresponds to the work write -up, the construction contract, and the schedule before payment is made to the contractor; c. It may address a need for a change order and intervene in owner/contractor disputes in a rehabilitation project;
d. It ensures that safety and security measures are being taken and that all necessary code inspections have occurred;
e. It allows the inspector to view the project at key construction points.

4. Timing of inspections: The construction schedule will determine the exp ected times for progress inspections.

a. Key points in the construction process would include inspections by qualified persons before work is concealed to determine that it is satisfactory and meets the work specifications and contract.
b. An inspection should occur when reinforcing bars are installed; wiring, plumbing, and insulation are in place.
c. An unscheduled inspection may reveal a great deal about work quality and progress, as well as answer concerns a property owner may have.
d. It may be necessary when a dispute arises between the parties involved.

5. Final inspection: A final inspection must be made by the appropriate professional and work must pass this inspection before the retainage is released to the contractor.

6. Logistics: Upon substantial completion of the project, the City must confirm that a final inspection is requested.

a. The City will schedule a final inspection to be attended by the owner, project administrator/consultant, contractor, and the City of Lynwood Housing Inspector. b. Notice of this inspection must be scheduled with the City at least 3 -5 days prior to the scheduled date.
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c. The final inspection shall consist of a field inspection to confirm that the project has been completed.

The following documents must be available at the final inspection:

a. Punch List(s);
b. Certificate(s) of Final Inspection; and
c. Release of Lien Form for each contractor
d. General items of discussion at the final inspection include e. Acceptance of work by all parties;
f. Transfer of insurance coverage to the owner;
g. Utility considerations;
h. Establishment of warranty period; and
i. Final payment (Disbursed by the City of Lynwood 30 days from a successfully completed Final Inspection.)

7. Punch list and close out: Although a few punch list items may be pending at the time of the final inspection, all major problems should be resolved and a Certificate of Final Inspection should be issued at this time.

a. The City requires that the project inspector and architect, if applicable, conduct a pre - final inspection to ensure that a comprehensi ve punch list is developed and that the project will be substantially complete at the time of the City's Final Inspection. b. A schedule for completing these items should be negotiated with the contractor, and a corresponding percentage of the cost, plus reta inage, should be held back until the punch list items are completed.
c. If an architect was used, he or she will issue a notice of substantial completion. d. This notice verifies that the structure may be used for its intended purpose. e. The notice of substantial completion may be issued either before or after punch list items are completed, depending on the situation and the extent of remaining items. In all cases, the Certificate of Final Inspection must be signed by the City prior to release of final retainage payment.
f. Even when an architect signs off on work, the city will conduct its own inspection to verify that work is complete and complies with programmatic and other federal requirements.
g. The final inspection must be performed by the City of Lynwood Community Development staff.
h. After completion of the punch list items, and (if appropriate) the architect’s notice, the City should see that the contractor provides:
i. Cost certifications;
ii. Warranties of work performed;
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iv. Guarantees from manufacturers of materials and systems installed; and v. Release of liens by suppliers, all subcontractors, and the general contractor. i. No final payment will be made until all documents are received and lien releases are verified.
j. An IDIS completion report must be completed to close out the project.

8. Warranty inspection : A one -year warranty period must be instituted for each contract completed to ensure that the workmanship and materials of the contractor(s) and subcontractor(s) have been sufficient.

a. A final warranty inspection must be conducted by the City of Lynwood staff eleven months after the initiation of the warranty period to finalize any adjustments needed to correct covered deficiencies.
b. Any such deficiencies shall be noted by the City or architect, if applicable, and provided to the contractor in writing and corrected.

EXHIBIT 9 – Timing and Purpose of Property Inspections
When to Inspect: Purpose
Preliminary –
before work begins
 Check existing conditions against drawings (for new
construction) or against work write up/approve
specification;
 Review applicable codes and standards
During Construction  Determine adequacy of work completed;  Assess compliance with approved drawings or
specifications;
 Assess completed work against construction schedule;
 Determine completed work that is eligible for payment;  Resolve any disputes among parties.

Final  Go over items in “punch list” to determine completion;  Document compliance with codes and standards.

Warranty Inspection  Assess workmanship and materials used;  Document deficiencies

SCREENING CONTRACTORS: BIDDING AND CONTRACT AWARD PROCESS

The City of Lynwood is expected pre -screen contractors and to use applications, bidding documents, agreements, and pre -bid/preconstruction conferences for screening contractors. In general, performance standards and consequences to meet them must be part of every construction program and must be covered in sufficient detail in bidding documents and the pre - construction conference. The City's specific requirements for the bidding and contract award process are detailed below:
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Debarment and Suspension Policy (24 CFR 85.35).

The City of Lynwood complies by the debarment and suspension policy pursuant to 24 CFR, 85.35 Part 5.

PROCEDURE

1. The City will verify that they and any or all persons, contractors, consultants, businesses, sub-recipients, etc., that are conducting business with the City are not presently debarred, proposed for debarment, suspended, declared ineligible, or voluntarily excluded from participation in the covered transaction or in any proposal submitted in connection with the covered transaction.

2. The City will check the Excluded Parties Listing System, print and maintain evidence of the search results. In the event that the search results indicate, a prior or current debarment or suspension of the contractor, the City will include the printout in the application.

3. The City will certify that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible or voluntarily excluded from any entity from a federally funded transaction. Any contractor that remains in a debarred or suspended condition will be prohibited from participation in the City of Lynwood HOME Program as long as they are classified in this manner.

4. The City will not award any HOME Program funds to applicants that are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation from the covered transaction.

The City takes the following steps to assure a contractor is qualified to work based on the California State Labor Board (CSLB) and the HUD debarment List:

1. If the contractor is NOT on the debarment list, the City makes a copy of the Debarment List and encloses the list in the contractor package.

2. If the contractor IS found on the debarment list, the contractor is disqualified further consideration.

Advertisements for construction contract bids.

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The City of Lynwood policy requires publication of advertisement for bids in a newspaper of citywide circulation one time in at least one newspaper of greatest general circulation in the City of Lynwood (Lynwood Comet) or posting by electronic media.

PROCEDURE

a. The date of publication of the notice shall not be less than five (5) days nor more than 30 days before the date established for the receipt of bids. b. In addition to citywide newspaper advertisement, the City may directly solicit prospective bidders and advertise in construction industry trade journals. c. Note that advertisements may not be published until plans and specifications for such contract have been unconditionally approved by applicable agencies. d. Additionally, wage determinations, if applicable, must be included as part of the contract documents for the project. The City requires to be contacted 10 days prior to the bid opening date.

1. Interpretations of plans and specifications . All questions regarding interpretation of the plans, specifications, drawings, and other contract documents should be addressed only to the design architect. Questions specific to the content of the Sample Bid Package for City of Lynwood funded projects should also be addressed to:

Executive Assistant
City of Lynwood
11330 Bullis Road, Lynwood, CA 90262

a. Any inquiry or other action requiring written interpretation or instruction from the architect that will modify the plans and specifications and affect bidders (e.g., modified wage determination, redesigns, etc.) must be done so by addendum.

NOTE: An addendum is written instruction issued prior to the opening of construction bids that modifies or interprets contract documents, drawings, and specifications by additions, deletions, clarifications, or corrections. All addenda must be approved by the City prior to issuance.

b. An Addendum must be issued by certified mail at least five days prior to the date of bid opening. Failure to attain approval may result in disallowance of affected costs.

2. Receipt of all sealed bids will be documented by date and time of receipt and the name of the submitting contractor. Bids received after the established deadline shall not be accepted.

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3. Bids in excess of project budget . If the lowest base bid exceeds the amount of funds appropriated for project budget, then the application of deductive alternatives in numerical order will commence until the bid is within the appropriated amount.

4. Apparent low bidder. Once the apparent low bidder is identified, the City will determine if he/she is responsible.

NOTE: All prime contractors are responsible for ensuring that the subcontractors they employ are not debarred or suspended.

5. Notification of bid award. Once the apparent lowest responsive, responsible bidder(s) for each contract(s) is determined, the City will notif y all bidders whether or not they were successful.

a. Successful bidders must be notified of acceptance of their bid within the time frame specified in the contract documents.
b. Such notification shall be made through issuance of a Notice of Award which reques ts the contractor to provide acceptable payment and performance bond(s) and certificates of insurance within 10 calendar days.
c. Upon reception of these documents, the City must determine if:

6. The contractor has sufficient bonding and insurance . The insured amounts must be consistent with requirements of state law as specified in the contract documents, e.g., 100 percent payment and 100 percent performance bond(s) coverage and sufficient liability coverage amounts.

d. Contracts must be awarded within the time frame specified in the contract documents. e. If the contract has not been awarded within 90 days of bid opening, the Recipient must notify the City's Planning and Development Department to determine if the wage determination (if applicable) is still valid. An y applicable modified or superseded wage determinations will apply to the project.

Note: Licensing and underwriting limitations of insurance companies in the State of California can be checked by referencing U.S. Department of the Treasury, Circular 570 C ompanies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring Companies as updated in the Federal Register.

7. Post award requirements. After all contract documents have been executed and sufficient bonding and insurance is confirmed, a fully executed set of contract documents must be submitted by the City of Lynwood.

Pre-construction Conferences
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A pre-construction conference can be valuable in providing direction to the parties involved and prevent potential misunderstandings.

PROCEDURE

1. The architect or Management Analyst shall coordinate scheduling the preconstruction conference with all applicable parties.

2. At a minimum, the City shall give 10 days’ notice to persons who must attend the preconstruction conference, including:

a. City representative, if applicable
b. Executive Director of nonprofit entity, if applicable; c. Developer/Owner,
d. Prime Contractors;
e. If applicable, the architect (especially the person representing the firm and the resident observer);

3. The preconstruction conference will be conducted in accordance with a Preconstruction Agenda and Report.

4. Signed copies of the report, with an attached attendance list, must be distri buted to each of the parties identified above within five calendar days of the conference.

5. Location of the conference:

Working with Contractors

PROCEDURE

The Management Analyst and the Rehabilitation Analyst shall:

1. Retain a qualified person in charge of the work who understands the business and the constraints faced by those in the building trades.

2. Clearly inform contractors about work expectations, program requirements as they impact the project, about the payment process, and seek their feedback after project completion. a. Timing of a pre-construction conference will take place after an Environmental Review and Release of Funds (ROF) have been completed, and

3. Distribute communicate of the project to all team members on his or her role and responsibilities;

4. Identify deadlines and critical phases of the work;
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5. Review the scope of work and schedule to prevent future problems;

6. Explain basic operating procedures, including reports, meetings and other communications required and expected during construction;

7. Review applicable programmatic and federal requirements, such as Davis -Bacon, labor standards, and Lead Safe Housing Rules;

8. Review procedures for:

a. Inspections – when they must occur and who initiates them; b. Payment requests – when they should be submitted, wh o receives them, what they must include, when payment will be made if satisfactory; c. Change orders – the process for requesting one; what would/ would not be considered in weighing the request;
d. Lien releases – the process and who is involved;
e. Monitoring of progress and reporting;
f. Dispute resolution; and
g. Closing out the project.

9. Review the construction contract and ensure all parties have read, understood, and signed it;

10. Confirm that subcontractors’ names, addresses, and phone numbers are accurately listed;

11. For occupied structures:

a. Discuss the handling of service shut-offs and restricting access to bathrooms, kitchens, etc. during lead-paint work as well as other relevant rehabilitation work; b. Define moving and relocation roles and schedules; and c. Review/discuss safety and security measures during construction.

12. At the conclusion of the pre-construction conference and after the contractor has executed the construction contract, the City will issue a notice to proceed with work.

13. Construction should commence no later than 10 days after receipt of this Notice.

Construction Schedule

PROCEDURES

The Rehabilitation Analyst and/or the Management Analyst will:

1. Maintain access to many information sources and have an understanding of construction methods, trades involved, and the sequence of tasks that must occur;

2. Retain knowledge of:

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a. The building materials required for the project, ordering and delivery methods and protocols;
b. The various applicable building codes and standards. c. Anticipate the key points at which an inspection is required; d. Determine how weather variations can impact construction progress; e. Understand each development team member’s roles and responsibilities; and f. Understand the development budget;
g. costs can be paid from each source;
h. When funds are available;
i. How to request payment (including the form that will be used to request payments and the documentation to be provided.);
j. Document each step in the process and list them sequentially, recognizing that some steps must occur simultaneously.

Timeliness and the Construction Schedule

PROCEDURE

1. Assure that construction will starts within twelve months from the date of property or land acquisition;

2. Assure that funds will be expended within the required five -year timeframe of the allocation;

3. Maintain a construction schedule that is realistic – and enforceable.

4. If a project is behind schedule, the City may attempt one of the following options:
a. Eliminate or redesign the critical path activities (which may reduce the scope of the project);
b. Rearrange critical path activities so that some are performed simultaneously; or c. Reduce the duration of critical activities (if the critical path is shortened, other activity paths through the network may become critical.)
d. If none of these options can be accomplished, the project completion date must be adjusted; this will most likely have cost or timeliness ramifications and is highly undesirable.

5. Comply with timelines in the construction schedule to avoid severe consequences to the project:

6. Ensure that timelines are met, or that there is ample recourse to pursue if they are not, schedules must be enforceable including:
a. Reference the schedule in the written agreement between the City and the developer; b. Reference the schedule in the contract with the general contractor and all subcontracts; c. Reference it in the architect’s contract.

7. Cover the schedule and stress its importance during the pre-construction conference.

Change Orders
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PROCEDURE

1. Any changes to construction documents must be reviewed and approved by the City.

2. Contractors must submit change orders when there is:
a. A change to the project design or work specification; b. An alteration, addition, or deletion to the approved scope of work; c. An addition or change to the work schedule; or
d. A change in cost for any reason.

3. Change orders must be written and address its completeness and appropriateness and its effect on budget, timeframe to the City.

4. The City requires that a Written Change Order is submitted any time that contract documents are changed, including additions, deletions, modifications, and time extensions after bid opening.

5. In addition, all change orders must be reviewed and approved by the City prior to issuance.

6. Changes that have no cost implications (or reductions in costs) require a change order.

7. Change orders will be evaluated for their impact on the project cost, schedule, and scope of work before they are approved by the City.

Managing Payments

PROCEDURE

1. Payments will be reviewed by:
a. The City, the property owner and the contractor prior to signing a rehabi litation contract;
b. The developer and contractor for smaller, uncomplicated new construction projects at the pre-construction conference; or
c. The entire development team for larger new construction projects at the pre - construction conference.

2. For all projects, a portion of all payments will be retained at 10 - 15 percent until 30 days after completion of the work or satisfactory completion of the final punch list items.

3. The draw schedule will include in the overall construction schedule to establish clear expectations for when the contractor may request and can expect payments.

4. Payment requests for housing rehabilitation projects will be submitted to the City by the general contractor at the completion of each stage of the schedule.

5. Payment requests will be provided to the City's Rehabilitation Analyst, and the property owner.

6. The property owner will sign off on the request before the City processes it.

7. For new construction projects, the developer assembles the draw requests for both hard and soft costs from the general contractor and other professionals involved in the project.

The invoice should include:
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a. Total budget obligated;
b. Amount of previous payments received to date;
c. Cost for materials stored;
d. Costs incurred during the particular pay period;
e. Total costs incurred to date (includes previous and current expenses); f. Percentage of work completed to date:
g. Remaining budget; and
h. Amount of payment retained until project completion. i. No payment should be made when there have been changes to the original contract or scope of work without approval of a relevant change order.

8. All payment request documentation will be logged in as soon as it is received and recorded as soon as it is released.

9. The City's Management Analyst and the Rehabilitation Analyst will review pa yment requests and approve them.

10. The documentation that must accompany a payment request, includes:

a. For all projects, an inspection report that supports satisfactory completion of work according to the work write-up, specifications, and/or construction schedule; b. Lien waivers as appropriate;
c. If needed, approved change orders;
d. For projects subject to Davis -Bacon requirements, signed certifications that demonstrate compliance.
e. Once a payment request has been approved by the City, it should be paid promptly in accordance with the agreed-upon schedule.
f. If payment delays occur from participating in public programs and if payment is delayed according to the construction schedule (through no fault of the contractor), the contractor is allowed to stop work.

11. Final payment and release of retainage less any liquidated damages shall be made to the contractor after:

a. Final inspection is completed;
b. A Certificate of Final Inspection is signed;
c. Certificate of Plumbing, Certificate of Electrical, Certificate of HVAC are signed; d. Release of Liens are received, if applicable;
e. All punch list items are resolved; and
f. Final payrolls and equal employment opportunity data are accepted by the City, if applicable.

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12. Contingency funds may be set aside for a project for which there is no known specific use at the beginning for unforeseen problems that may require funds.

a. These funds may not be drawn or expended unless an appropriate written change order is executed.
b. Funding must be established at the beginning or project for unforeseen circumstances. c. Set up is allowed but only work performed and documented through written change orders is paid.

Periodic Reporting

PROCEDURE

1. During the construction period, the City's Management Analyst will require periodic status reports from partners such as contractors, private developers, and property owners.

2. The City will maintain a reporting system to track progress of meeting larger program goals, as well as tracking progress for individual projects.

a. The City's reporting system includes:
b. milestones that need to be measured in the construction process and the draws against the contract;
c. When the milestones need to be measured (e.g., the critical points in a housing rehabilitation or development project); and
d. Measure and review the milestones.

3. Request essential information to track including:

a. Performance milestones in the construction schedule or written agreement; or b. Required documentation for IDIS or the CAPER reporting. c. Provide clear, detailed report forms and instructions to those responsible for initiating the report.

4. Take immediate action if reports are late, inaccurate, or incomplete.

5. Inform partners that the information provided in reports is useful for:

a. Preparing reports for City of Lynwood;
b. Identify performance and timeliness issues early;
c. Plan on-site monitoring visits;
d. Making future funding decisions; and
e. Developing descriptions of projects for elected officials and citizens.

6. Measure progress in individual projects; or
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7. Compare progress in similar projects to identify slower performers and take further action.

8. Examine funding requests to evaluate the fiscal aspects of performance against the construction schedule or written agreement.

9. Identify any missed milestones and which projects have or may put the City at risk of failing to meet timeliness requirements in the HOME program.

Exhibit 10
Rehabilitation of Owner-Occupied Progress Reporting
What to Track How Often to
report
How to Analyze information
Date of application At application Look for demand (or lack) by targeted population
Date of requested income
verifications; date received
When requested Check for follow up activity if not
received
Date of proof of ownership
established
At time of proof Check for determination of eligibility for assistance
Date of initial inspection At time of
initial inspection
Look for "fail" items and LBP
Date, name of contractor selected At time of
selection
Check for compliance with City's
approved system
Date of Pre-construction conference At time of
conference
Look for subjects covered, who were
present, notes taken
Date of Proceed Order At time of order Check against approved procedures Date of initial progress Inspection At time of
inspection
Note items passed or failed
Pass/fail items in inspection Same as above Note for payment requests or change orders
Date of initial payment request;
subsequent payments requested
Date of requests Check for adequate documentation to
support request
Date payments made Date payments
made
Check for time elapsed; is it late or on
time
Date of final inspection Date of
inspection
Check against inspector’s report of
satisfactory work
Punch list items completed Date of punch
list
Check for completed work
Final release of liens received Release date Look for presence of all releases Final payment Date of payment Check for timing; adequate documentation
Project closed Date of close-out Check for completion report and Interim reports in IDIS
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Environmental Requirements and Procedures

OVERVIEW

The purpose of this chapter is to provide guidance on the environmental review process required under federal HOME regulations. These regulations (24 CFR §92.352) require a formal assessment of possible environmental effects for each activity carried out w ith HOME funds. This assessment must be done according to requirements found in 24 CFR Part 58 . This chapter provides current rule requirements, and clarifies review responsibilities of the City of Lynwood, and Community Housing Development Organizations (CHDOs), with regard to the environmental review process.

The U.S. Department of Housing & Urban Development (HUD) places restrictions on project activities in accordance with 24 CFR §58.22, Limitations on activities pending clearance. Completion of the environmental review process is mandatory before taking physical action on a site, or making a commitment or expenditure of HOME or non-HOME funds for property acquisition (purchase), rehabilitation, conversion, lease, repair, or construction activities. “Non -HOME funds” means any Federal, state, local, private, or other funds.

Since funds for a project will not be released until the environmental review has been completed and approved, the City will begin the environmental review process at the earliest possible time so that potential conflicts between program procedures and environmental requirements are identified at an early stage.

The Environmental Checklist in the Uniform Application submitted, as part of a competitive HOME grant application does not meet HUD requirements for an environmental review. The purpose of the checklist is to assist the City to initially evaluate environmental circumstances that may affect the proposed project and to raise awareness of possible problems if the grant is awarded.

This chapter details the HUD environmental review rules and related Federal laws and authorities that are applicable to all projects and activities receiving HOME assistance. It describes:

1. The roles an d responsibilities of the City of Lynwood and its Recipients, who have the primary responsibility for conducting environmental reviews;

2. The role of CHDO’s and nonprofit organizations as project partners in the environmental review process;

3. The primary procedures and operating principles that guide the environmental review process; and

4. The categories of environmental review that are required for various HOME funded activities and projects.
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Roles and Responsibilities of City of Lynwood

As outlined in 2 4 CFR Part 58, units of local government are required to assume Federal environmental review responsibilities for compliance with the National Environmental Policy Act (NEPA), and related Federal laws and authorities. HUD’s environmental review regulations identify states and units of general local government as the “responsible entity” (RE) –-those entities having legal authority to assume this role because they exercise control over planning, permitting, and supplying infrastructure to support HUD -assisted projects for their jurisdictions. For the HOME Program, the City receives a formula allocation of HOME funds directly from HUD. In addition, through a written agreement with the City of Lynwood, assumes responsibility for compliance with NEPA and Part 58.

In cases where the City of Lynwood does not have the technical capacity or administrative capability (§ 58.12) to assume the role of RE or an applicant (e.g., CHDO, or nonprofit or for profit organization) has applied directly to the City for HOME grant assistance, then the City of Lynwood will take on this role of RE. In most cases the City of Lynwood assumes the RE role.

In the role of responsible entity (RE), the City not only assumes the responsibility for environmental review, decision -making, do cumentation, and mitigation (if necessary), but also the legal responsibility for compliance with NEPA and all other applicable laws, regulations, and authorizations.

Whenever Recipients have assumed the role of RE, then the City is responsible for overse eing compliance with HUD’s environmental review procedures, as well as providing assistance to those Recipients in meeting their compliance responsibilities under Part 58. The City's role in this capacity is to conduct post -review monitoring of the Recipie nt’s Environmental Review Records (ERR); enforcing violations of Part 58; receiving certifications of compliance from the Recipients; accepting objections from the public or other agencies; and other responsibilities related to the release of funds process (§ 58.18 and Subpart H).

When the City assumes the role of RE, then HUD performs the oversight responsibilities described in the paragraph above (24 CFR 58, Subpart H).

A. Environmental Review Process

The City must ensure that activities or projects that are funded by HOME assistance, in total or in part, are in compliance with NEPA and Part 58 requirements. This means creating a written environmental review record (ERR) for every activity and project regardless of the level of review (§ 58.38). Later in t his chapter, more details will be provided as to the appropriate levels of environmental review for every type of HOME assisted activity or project.
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The ERR is a type of “environmental diary” that the City uses to substantiate its decisions and conclusions concerning protection and enhancement of the environment as a result of approving the project. Keeping good records and having complete documentation is necessary to fulfill the City's environmental review obligations. This is a public record. Legal challenges to a project’s environmental compliance may be won or lost over how complete or incomplete the City's ERR documentation is; therefore, this administrative record is important.

The City of Lynwood will periodically monitor the content of the environ mental records to determine whether corrective actions or sanctions are necessary. In addition, the HUD Field Office will conduct a monitoring review of the City's project ERRs.

The City is required to maintain technical capacity and administrative capabi lity to ensure compliance with NEPA and Part 58 is achieved (§ 58.12). With regard to technical capacity, the City staff needs to have sufficient knowledge of the Federal laws and authorities, as well as an understanding of Part 58 requirements in order to make informed decisions about whether:

1. The appropriate level of review has been completed;

2. Compliance with NEPA and Federal laws and authorities has been achieved;

3. The public notification requirements have been met (if required); and

4. When HUD approval is necessary.

This is true whether environmental reviews are completed by City staff, prepared by program partners, or a consultant is hired to perform the review. The City is still responsible for the content of the ERR and must make an independent evaluation of the environmental issues, take responsibility for scope and content of the compliance findings, and make the final environmental decision concerning project approval.

With regard to administrative capability, City staff should have sufficien t knowledge about the Part 58 procedures to understand when funds may be committed and spent, the time periods for the public notification and release of funds process, and the minimum content of the ERR.

B. Environmental Decision-Making

For purposes of compliance with NEPA and Part 58, the chief executive officer of the City, or its formal designee, is the certifying officer (CO) (§ 288 of the Act). The certifying officer is recognized as the “responsible Federal official under NEPA” (§ 58.13, 40 CFR 1508.1 2) and, therefore, the decision-maker as to whether a project is approved or rejected on the 627

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basis of the environmental review findings. This is a Federal legal responsibility. As such, if someone other than the chief executive officer for the City is desi gnated to fulfill this role, HUD requires there be a formal designation by the governing body identifying this officer.

The CO represents the City in Federal court if there is legal challenge to the content of the environmental review record and the City's decision based upon that record [§ 58.13(a)].

The CO is also the only person with the legal authority to sign the Request for Release of Funds and Certification (HUD form 7015.15.).

Other responsibilities required of the certifying officer are:

1. To ensure that the City reviews and comments on all EIS document prepared for Federal projects that may have an impact on the City of Lynwood's HOME program [§ 58.13(b)];

2. Making health and safety decisions related to whether or not to approve residential construction projects that are exposed to high levels or noise from major roadways, railroads, and/or military or civilian airports [HUD regulation on Noise Abatement and Control, 24 CFR 51.104(a)(2) and (b)(2)]; and

3. Making health and safety decisions relat ed to the construction, rehabilitation, or conversion of buildings exposed to blast overpressure or thermal radiation from aboveground storage tanks within line -of-site of the project (HUD regulation on placement of HUD- assisted projects in the vicinity of explosive or flammable operations, 24 CFR 51.206.).

C. Environmental Action

The City of Lynwood is also responsible for ensuring that any environmental conditions or safeguards resulting from completion and approval of the environmental review document are implemented. With that, the City has developed a monitoring plan to ensure conditions that are identified as necessary for protecting and enhancing environmental quality or minimizing adverse environmental impacts are included in agreements or other rele vant documents, and implemented during completion of the project.

In addition, the City must re-evaluate its environmental findings and decision if:

1. Substantial changes in the nature, magnitude, or extent of the project are proposed by the project propon ent (e.g., new activities not anticipated in the original project scope);

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during implementation of the project, su ch as archeological resources, asbestos containing materials, endangered species, underground storage tanks, dry wells, etc.); or

3. The project proponent proposes selection of an alternative not previously considered.

Upon re-evaluating its original finding s and conclusions, the City must decide whether or not its original determination is still valid, or that a new environmental review document must be prepared instead. If the original findings are still valid, document this in the ERR in writing.

Role of CHDOs and Nonprofit Organizations as Project Partners

Any other individuals and entities that utilize HOME program assistance fall into the category of project participants with regard to compliance with Part 58 (§ 58.22). This includes CHDOs, public or private nonprofit or for-profit entities, contractors, and individual borrowers receiving HOME grants and loans.

These partners must:

1. Not acquire, repair, rehabilitate, conv ert, demolish, or lease properties or undertaking construction prior to receiving approval from the City of Lynwood;

2. Not commit non -HUD funds to project activities that would have an adverse environmental impact or limit the choice of project alternatives;

3. Carry out any mitigation and/or conditions associated with approval of the project;

4. Provide the City with information about the project.

The City may require by executed agreement that CHDOs or developers supply available, relevant information necessary for the City to perform the environmental compliance review. This could mean:

1. The CHDO or developer submits certain types of information to the City, or

2. The CHDO or developer prepares the environmental compliance review for submission to the City for its review and adoption, or

3. The CHDO or developer may decide to hire a consultant to prepare the environmental review for the City's review and adoption.

D. Environmental Review Procedures

Actions Triggering the Requirements of Part 58

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Once a project participant (i.e., CHDO’s, developers, owners, sponsors of housing, and third- party contractors) has submitted an application for HOME funds to the City or the City has designated funds for a specific project in its Consolidated Plan or Annu al Action Plan ("AAP"), Part 58 requirements are applicable to the project. At this point, the City must request the participant to:

1. Cease all project activity until the environmental review (ER) has been completed. Part 58 prohibits further project activ ities and actions from being undertaken prior to completion of the ER and the determination of environmental clearance. Projects in violation of this prohibition risk the denial of HOME funds.

Where a project participant has begun a project in good faith as a private project, the City is not precluded from considering a later application for Federal assistance for the project, but must request the third-party applicant to:

2. Cease further actions on the project until the environmental review process is completed. Project participants may proceed with the project upon receiving approval from the City, after the environmental review process has been completed for the project.

There are certain kinds of activities that may be undertaken without risking a violation of requirements of Part 58. For example, the act of either hiring a consultant to prepare a Phase I Environmental Site Assessment (an investigative study for environmental hazards), or hiring a consultant to complete an engineering design study or plan, or a study of soil and geological conditions.

Activities that have physical impacts or which limit the choice of alternatives cannot be undertaken, even with the project participant’s own funds, prior to obtaining environmental clearance to use HU D funds. This process may include public notification and approval from HUD. If prohibited activities are undertaken prior to receiving approval from the City, the applicant is at risk for the denial of HOME assistance. Such actions include:

1. Purchasing real estate;

2. Demolishing structures or buildings;

3. Excavating or dredging soils;

4. Placing fill dirt on the site;

5. Rehabilitation or converting a new building; and

6. New construction.

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NOTE: Undertaking any of these actions interfere with the City's ability to comply with NEPA and Part 58. If prohibited actions are taken prior to environmental clearance, then environmental impacts may have occurred in violation of the Federal laws and authorities and the standard review procedures that ensure compliance. Below is further discussion of issue under the heading, “Limitations Pending Environmental Clearance.”

Limitations Pending Environmental Clearance

According to the NEPA (40 CFR 1500 -1508) and Part 58, the City is required to ensure that environmental information is available before decisions are made and before actions are taken. The City may not commit or expend resources, either public or private funds (HUD, other Federal, or non -Federal funds), or execute a legally binding agreement for property acquisition, re habilitation, conversion, repair or construction pertaining to a specific site until environmental clearance has been achieved. In other words, the City must avoid any and all actions that would preclude the selection of alternative choices before a final decision is made–-that decision being based upon an understanding of the environmental consequences, and actions that can protect, restore, and enhance the human environment (i.e., the natural, physical, social, and economic environment.)

In order to achieve this objective, Part 58 prohibits the commitment of HOME funds by the City of Lynwood until the environmental review process has been completed by the City and HUD approves the release of funds.

NOTE: until the City has completed the environmental review process (including receipt of HUD approval), neither the City nor project participant may commit non -HUD funds or undertake an activity if that action would have an adverse environmental impact or limit the choice of reasonable alternatives.

For the purposes of the environmental review process, “commitment of funds” includes:

1. Execution of a legally binding agreement;

2. Expenditure of HOME funds;

3. Use of non -HUD funds on actions that would have an adverse impact - e.g., demolition, dredging, filling, excavating; and

4. Use of non -HUD funds on actions that would be “choice limiting” -e.g., acquisition of real property; leasing property; rehabilitation, demolition, construction of buildings or structures; relocating buildings or structures, conversion of land or buildings/structures.

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NOTE: The standard for what constitutes a commitment of HOME funds for compliance with Part 58 is different from the HOME funds commitment and the CHDO reservation deadlines applicable under the HOME Program regulations in 24 CFR Part 92.

Prior to completion of the environmental review process and receiving HUD approval, the City may enter into a non-binding agreement to conditionally commit HOME funds– -i.e., a contractual agreement between the City and project participant to use a specific amount of HOME funds to produce affordable housing, or an executed written agreement reserving a specific amount of funds to a CHDO. The conditional commitment must incorporate language that will ensure the project participant does not have a legal claim to any amount of HOME funds to be used for the specific project or site until the environmental review process is satisfactorily completed. In addition, the agreement must explicitly state that the agreement to provide funds to the project is conditioned on the City's determination to proceed with, modify, or cancel the project based on the results of a subsequent environmental review. (See CPD Notice 01 -11, page 10 for suggested agreement language.)

Other types of actions that are not considered a commitment of funds for purposes of Part 58 compliance are statements of funding reservation, e.g., approval of Consolidated Plan or Annual Action Plan or planning for and reserving non -HUD funds, including tax credits for the project for HUD funding.

If the City is considering an application from a prospective participant and is aware that the participant is about to take an action within the jurisdiction that is prohibited by Part 58, then the City must take appropriate action to ensure that its objectives and procedures of NEPA and Part 58 are achieved [§ 58.22(c)].

The City of Lynwood has established internal controls to enforce compliance with NEPA and Part 58.

“CONTEMPLATE” AND “COMMITMENT" DEFINITION FOR THE ENVIRONMENTAL REVIEW

Once the City contemplates assisting a project or activity with HUD funds, (§ 58.32), neither HUD funds nor non -HUD funds may be committed (§ 58.22) until compliance with Part 58 has been achieved and documented. The following guidance is provided to clarify the meaning of the terms contemplate and commitment as these apply to the environmental review process.

Contemplated HUD assisted action:

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2. The City has identified a specific activity or project in its application.

Commitment of funds:

1. Execution of a legally binding agreement—e.g., awarding construction contracts, entering into project agreements with developer, etc.

2. Expenditure of HUD funds—e.g., purchase of materials by a force account crew, hiring a consultant to prepare a Phase I Environmental Site Assessment, etc.

3. Use of HUD funds or non-HUD funds on “choice limiting actions”:

a. Actions having an adverse impact -e.g., demolition, dredging, filling, excavation.
b. Actions limi ting the choice of reasonable alternatives –-e.g., real property acquisition, leasing, rehabilitation, demolition, related site improvements, relocating buildings or structures, conversion of land or buildings/structures.

A commitment of funds is not:

1. Statements of funding reservation –-e.g., approval of an application, CHDO reservations, planning for and reservation of non -HUD funds (including tax credits for the project for HUD funding.)

2. Non -legally binding agreements –-e.g. An agreement with langua ge such as, “Notwithstanding any provision of this Agreement, the parties hereto agree and acknowledge that this Agreement does not constitute a commitment of funds or site approval, and that such commitment of funds or approval may occur only upon satisfa ctory completion of environmental review and receipt by Recipient’s determination to proceed with, modify or cancel the project based on the results of a subsequent environmental review.

AGGREGATION OF PROJECT ACTIVITIES

To determine the appropriate level of environmental review for a project, the City must group together (aggregate) all related project activities, whether or not the project is funded entirely by HOME funds, or only certain portions of the project will be funded by HOME funds. An envi ronmental review must evaluate all activities that are geographically or functionally related, or part of a multi -year project. The appropriate level of environmental review for an aggregated project will be determined by whichever activity or activities b eing undertaken by the City or its partners will have the greatest environmental impact. For example, real property acquisition will have less of a physical impact on the human environment than newly constructing 30 units of affordable housing. 633

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Geographically related project activities, for example, might include a proposal to acquire four units for rehabilitation and resale to first time homebuyers. All the related activities are occurring on a single site. In aggregation, all these activities must be evaluated in a single review, regardless of the fact that HOME funds may only be used for rehabilitation. One activity cannot occur without the others, and therefore all the associated environmental impacts must be evaluated together. The environmental review for the acquisition of the properties cannot be separated from the environmental review for the rehabilitation of the properties.

Multi-year aggregation is a process that addresses phased project activities. For instance, consider a three-year project, during which, real property will be acquired in the first year, infrastructure improvements will be installed in years two and three, along with several phases of affordable housing construction. Again, a single environmental review must be completed for all phases of the project before any of the activities may be undertaken. Only one request for release of funds (covering all project phases) needs to be submitted to HUD for approval. After HUD approval is received, no other approval or environmental action is required, unless circumstances arise that require the City to re -evaluate its original environmental findings.

SOURCE DOCUMENTATION FOR ENVIRONMENTAL REVIEWS

FIELD OBSERVATION – A visit to the project site to make observations of the general site conditions.

1. There should be written documentation of the conditions observed.

2. Include the name and title of the observer and the date of the site visit.

PERSONAL CONTACT – Personal contacts are useful only when the individual contacted is an accepted authority on the subject or subjects. Documentation should include:

1. The name and title of the person contacted,

2. The date of the conversation, and brief notes of the key points.

3. Whenever the person that was contacted cites reports, records, or other document, the title, date, and source of the report should be noted.

4. Contacts can include staff experienced in a particular area (e.g., engineer, planner, historian, etc.).

PRINTED MATERIALS – Printed materials that are useful sources of detailed information may include:

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1. Comprehensive land use plans, maps, statistical surveys, and studies are useful sources of detailed information.

2. The material must be current and reflect accepted methodologies.

3. Complete citations for all material must be included.

REVIEWER’S EXPERIENCE – Professional judgment by City staff is acceptable if their expertise is relevant to the compliance issue. For example, a reviewer's knowledge may include:

1. Reviewing previous projects in the same area.

2. Professional finding of the reviewer in subjects where he or she has the background to make judgments about a specific factor, or

3. Reviewers that have the expertise to evaluate soil conditions, while others will need to consult an engineer or other specialist.

SPECIAL STUDY – This is a study conducted for a particular project performed by qualified personnel using accepted methodologies. Some tests are relatively simple to perform but others may require elaborate equipment or personnel with additional expertise. The reviewer is responsi ble for obtaining assistance from others in order to have the appropriate tests or studies conducted. Examples of tests and/or studies include:

1. Archeological reconnaissance surveys,

2. biological assessment concerning threatened and endangered species, or

3. Phase I Site Assessments to determine site contamination.

Sources of Compliance Documentation

There are several types of resources necessary to demonstrating compliance with NEPA and the Federal laws and authorities. These resources provide written docum entation in the environmental review record that is credible, traceable, and supportive of the conclusions reached by the RE.

E. Categories of Environmental Review

One of the primary purposes that the environmental review process serves is to require the City to include environmental impacts as part of the overall deliberation process surrounding proposed projects.

The HUD environmental review requirements at Part 58 were written so as to best strike a balance between the imposition of reasonable requirements upon the City (i.e., expediting the decision process for activities that clearly have no physical impact and requiring 635

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sufficient analysis for those that will alter environmental conditions), while ensuring that project decisions are well-documented.

Therefore, the environmental review requirements are divided on the basis of the level of impact that a proposed project might be anticipated.

There are four (4) levels of environmental review identified in Part 58. The criteria for these levels span the range of possible impacts, from none whatsoever to significant physical impact. The levels under Part 58 include:

1. Exempt (§ 58.34);

2. A. Categorically Excluded subject to (§ 58.35);
B. Categorically Excluded not subject to § 58.5

3. Environmental Assessment (§ 58.36 and Subpart E); and

4. Environmental Impact Statement (§ 58.37 and Subparts F and G).

NEPA and the implementing regulations at 40 CFR 1500 -1508 establish direction for these review levels. The bases for these review levels, and categorizing various HOME -funded activities into the review levels is to determine if there is potential to cause significant impact on the human environment (i.e., natural resources, ecosystems, aesthetic, historic, cultural, social, economic, health, etc.).

1. Exempt

HUD has determined that exempt activities will have neither a physical impact, nor potential for altering any environmental conditions. Therefore, these actions are exempt from compliance with NEPA and the Federal laws and authorities cited at § 58.5.

According to 24 CFR 58.34, the following types of activities have been categorized as exempt from NEPA and other environmental laws and authorities:

a. Environmental and other studies, resource identification, and the development of plans and strategies;
b. Information and financial services;
c. Administrative and management activities;
d. Public services that will not have a physical impact or result in any physical changes, inclu ding but not limited to services concerned with employment, crime prevention, child care, health, drug abuse, education, counseling, energy conservation, and welfare or recreation needs;
e. Inspections and testing of properties for hazards or defects; f. Purchase of insurance;
g. Engineering or design costs;
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h. Assistance for temporary or permanent improvements that do not alter environmental conditions and are limited to protection, repair, or restoration activities necessary only to control or arrest the effects from disasters or imminent threat to public safety including those resulting from physical deterioration; and
i. Any of the categorical exclusions listed in § 58.35(a) provided there are no circumstances that require compliance with any other Federal laws and authorities cited in § 58.5.

NOTE: Under HOME program rules, 24 CFR 92, in order to qualify as project costs, these activities must be associated with a specific project. Otherwise, they are considered administrative costs.

Content of ERR – Exempt Activities

1. The City must document in writing its determination that an activity meets the conditions for exemption. The City does not have to issue a public notice or request release of funds (RROF) [§ 58.34(b)].

2. In addition to making a written determina tion of exemption, the City must also determine whether the activity triggers any of the other requirements at 24 CFR

58.6, which are the Flood Disaster Protection Act; the Coastal Barriers Resources Act; and HUD’s requirement for disclosure of properties located in airport runway clear zones.

2. Categorical Exclusions

This term refers to a category of actions that do not individually or cumulatively have potential for significant effect on the human environment (40 CFR 1508.4). Therefore, neither an environmental assessment (EA) nor environmental impact statement (EIS) is required to comply with NEPA.

Although these actions are categorically excluded under NEPA, a determination must still be made as to whether they would alter any environmental conditions t hat would require a review or compliance determination under the Federal laws and authorities cited in § 58.5.

The laws and authorities cited in § 58.5 are freestanding from NEPA, such as the National Historic Preservation Act of 1966, the Executive Order s on Floodplain Management and Wetlands Protection, and several regulations specific to HUD concerning the health and safety of project occupants, to name a few. 637

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The City must certify that it has complied with the requirements under these laws and consider the criteria, standards, policies, and regulations of these laws and authorities.

The section on “Compliance with NEPA and Related Federal Laws and Authorities” provides guidance on this.

However, HUD has determined that certain kinds of categorical ex clusions, because of the nature of the actions, would never alter any environmental conditions to create circumstances requiring compliance with these laws and authorities. Therefore, §58.35 identify two types of categorical exclusions:

1. Categorical exclusions subject to §58.5, and

2. Categorical exclusions not subject to § 58.5.

3. Categorical Exclusions subject to §58.5.

Categorical exclusions subject to §58.5 are excluded from compliance with NEPA, but must comply with the other related Federal laws an d authorities cited in §58.5. It is generally evident from the nature and magnitude of such activities they do not have potential to have a significant impact on the human environment however, these types of activities are physical in nature and will alter environmental conditions that could, for example, affect historic properties, floodplains, wetland areas, and endangered species.

Actions in this category include:

1. Acquisition, repair, improvement, reconstruction, or rehabilitation of public facilities (other than buildings)-e.g., replacement of water or sewer lines where the capacity is not changed more than 20 percent, reconstruction of curbs and sidewalks, and repaving of streets;

2. Removal of material and architectural barriers restricting the mobility of and accessibility to elderly and disabled persons;

3. Rehabilitation and improvement of single family (one -to-four unit) dwellings provided:

a. The unit density is not increased beyond four units, b. The land use is not changed, and the footprint of the buildin g is not increased in a floodplain or wetland;

4. Rehabilitation and improvement of multifamily dwellings provided:
a. the unit density is not increased more than 20 percent, b. it does not change residential use to non-residential use, c. and the estimated cost of rehabilitation is less than 75 percent of the replacement cost;
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5. An individual action on one to four dwelling units where there is a maximum of four units on any one site. The term “individual action” refers to new construction, development, demolition, acquisition, disposition, or refinancing;

6. An individual action on five or more housing units developed on scattered sites when the sites are more than 2,000 feet apart and there are not more than four units on any one site;

7. Acquisition (including leasing) or disposition of, or equity loans on, an existing structure provided the structure acquired, financed, or disposed of will be retained for the same use; and

8. Any combinations of the above activities.

Content of ERR – Categorical exclusions subject to § 58.5

The City of Lynwood will complete the Certification of Categorically Exclusion (subject to 58.5) and the Statutory Checklist forms to document its environmental findings. Such documentation must support the City's determinations related to compliance with the Federal laws and authorities cited in § 58.5. (Guidance on compliance is provided below in “Compliance with NEPA and Related Federal Laws and Authorities”.)

Upon completion of the checklist, the City will make one of three environmental findings in writing:

1. The project converts to exempt and does not require public notification or approval from the City [§ 58.34(a)(12)];

2. The project invokes compliance with one or more of the laws and/or authorities and, therefore, requires public notification and approval from the City before funds are committed or spent; or

3. The unusual circumstances of the project may result in a significant environmental impact and, therefore, compliance with NEPA is required.

Therefore, an environmental assessment (EA) must be completed.

The ERR must also contain:

4. Supporting documentation used to prepare the review (See Source Documentation for Environmental Reviews).

5. If the project did not convert to exempt, a copy of public Notice of Intent to Request Release of Funds that was issued.

6. Copy of the Request for Release of Funds and Certification (HUD form 7015.15); and

7. Copy of Authority to Use Grant Funds (HUD form 7015.16), issued by the City of Lynwood (or HUD).
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In addition to making a written determination of categorical exclusion, subject to § 58.5, the City must also determine whether the activity triggers any of the other requirements at 24 CFR 58.6, which are the Flood Disaster Protection Act; the Coastal Barriers Resources Act; and HUD’s requirement for disclosure of pr operties located in airport runway clear zones. [See Compliance Documentation Checklist (58.6) form and discussion in “Other Requirements (§ 58.)6].

4. Categorical Exclusions not subject to § 58.5.

The activities that are categorically excluded not subject to § 58.5 have been determined by HUD not to have potential for altering any environmental conditions where a review or determination of compliance with the Federal laws and authorities would be required. Actions in this category include:

1. Tenant-based rental assistance;

2. Activities to assist homebuyers to purchase existing dwelling units or dwelling units under construction–-e.g., closing costs, down payment assistance, interest buydowns, and similar activities that result in the transfer of title;

3. Affordable housing pre -development costs with no physical impact –-e.g., legal consulting, developer and other costs related to obtaining site options, project financing, administrative costs and fees for loan commitments, zoning approvals, and other related activities which do not have a physical impact; and

4. Approval of supplemental assistance (including insurance or guarantee) to a project previously approved under Part 58, if the approval is made by the same RE that conducted the environmental review on the original project and re - evaluation of the environmental findings is not required under § 58.47.

Content of ERR – Categorical exclusion not subject to § 58.5

The City will document in writing its determination that an activity meets the conditions for categorical exclusion not subject to § 58.5, and complete the Certification of Categorical Exclusion (not subject to 58.5) form to document designation of a HOME project or activity in this category. The City does not have to issue a public notice or request release of funds (RROF) [§ 58.34(b)].

In addition to making a written determination of categorical exclusion, subject to § 58.5, the City must also determine whether the activity triggers any of the other requirements at 24 CFR 58.6, which are the Flo od Disaster Protection Act; the Coastal Barriers Resources Act; and HUD’s requirement for disclosure of properties located in airport runway clear zones. [See Certification of Categorical Exclusion (not subject to 58.5) form and discussion in “Other Requirements (§ 58.6]
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5. Environmental Assessment.

Environmental Assessment (EA) refers to a category of actions which, either individually or cumulatively, have potential for significant effect on the human environment (40 CFR 1508.4). Therefore, the potential e nvironmental impacts on the human environment resulting from the proposed activity must be analyzed and evaluated according to NEPA procedures, as well as the other Federal laws and authorities cited at §58.5.

The environmental assessment (EA) is a public record that, upon completion, documents the City's findings and conclusions about environmental effects, and the reasons for its decision concerning those effects, as well as compliance with Federal laws and authorities.

Actions that may be funded by HOM E and that fall into the category requiring an Environmental Assessment (EA) would include, but are not limited to:

1. New construction of five or more residential units on a single site;

2. New construction of five or more single family units on scattered site s that are less than 2,000 feet apart;

3. Major rehabilitation or reconstruction of residential units that increases or decreases the unit density more than 20 percent;

4. Expanding the footprint of a single -family unit into the floodplain or wetland area;

5. Conversion of a non-residential structure to create a residential use;

6. Acquisition of land for development of a housing subdivision; and

7. Categorical exclusions with “extraordinary circumstances” -i.e., actions that are unique or without precedent, actions that are substantially similar to those that normally require an Environmental Impact Statement (EIS), actions that are likely to alter existing HUD policy or HUD mandates, or action that, due to unusual physical conditions on the site or in the vicinity, have the potential for a significant impact on the environment or in which the environment could have a significant impact on users of the facility.

Content of ERR – Environmental Assessment (EA)

The City will complete a written determination that the project falls within this category.

The EA includes the following information and analysis, according to NEPA regulations (40 CFR 1500-1508):

1. Determination of existing conditions;
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2. Identification, analysis, and evaluation of all potential impacts on the human environment (i.e., social, economic and natural resources);

3. Examination and recommendation of feasible ways to eliminate or minimize adverse environmental impacts;

4. Examination of alternatives to the proposed action;

5. Compliance determination for all other Federal laws and authorities cited in §58.5; And Determination as to a finding of no significant impact (FONSI) or a finding of significant impact (FSI), which requires the execution of an Environmental Impact Statement (EIS).

The City will use the Environmental Assessment form in evidence of compliance with NEPA and the Federal laws and authorities cited in § 58.5.

Upon completion of the environmental assessment, the City will make either a finding of no significant impact (FONSI), or a finding of significant impact (FOSI) determination.

In the event that a FONSI is made, the City must issue two public notices, submit a release of funds request and certification to HUD, and receive a release of funds from HUD before funds are committed or spent.

The ERR must also contain:

1. Supporting documentation used to prepare the review.

2. Copy of public Notice of Intent to Request Release of Funds, if project did not convert to exempt.

3. Copy of the Request for Release of Funds and Certification (HUD form 7015.15); and

4. Copy of the Authority to Use Grant Funds (HUD form 7015.16) issued by the City of Lynwood (or HUD.)

In addition, the City must also determine whether the project triggers any of the other requirements at 24 CFR 58.6, which are the Flood Disaster Protection Act; the Coastal Barriers Resources Act; and HUD’s requirement for disclosure of properties located in airport runway clear zones.

6. Environmental Impact Statement (EIS)

It is not typical for a HOME project to trigger the Environmental Impact Statement requirements. If the City believes that a project it is contemplating as a possible HOME project may in fact trigger these requirements, it should consult with HUD immediately before taking any further action.

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The following section provides guidance to assist the City in compliance with NEPA and the related Federal laws and authorities cited at § 58.5.

1. Historic Preservation (36 CFR Part 800)

Section 106 of the National Historic Preservation Act requires the City to:

a. Consider the effects of their undertakings on historic properties; and b. Provide the Advisory Council on Historic Preservation with a reasonable opportunity to comment with regard to such undertakings.

Compliance with Section 106 is achieved by initiating procedures the Advisory Council on Historic Preservation has outlined at 36 CFR Part 800. Section 800 .2(a) recognizes the City's certifying officer as having authority to carry out these procedural responsibilities.

The focus of Part 800 is on the City making a determination whether a proposed project will affect buildings, structures, or places that are listed on or are eligible for listing on the National Register of Historic Places (NR). In making this determination, the City must follow a detailed review process in consultation with the State Historic Preservation Officer (SHPO). This process also pro vides an opportunity for interested persons, agencies, and Indian tribes to be part of the City's decision concerning historic properties that may be affected.

It is important to remember that before approval is given to proceed with HOME-funded projects, the environmental review record must show the Part 800 consultation process was completed.

Basic steps for compliance with the Section 106 Review Process (36 CFR Part 800) include:

1. Determine whether the project is an undertaking, or has no potential to cause effects on historic properties;

2. Define the area of potential effects (APE) for the undertaking;

3. Identify and evaluate historic properties in the APE;

4. Determine the effect of the undertaking;

5. Assess the effects on listed and/or eligible properties; and

6. Resolve any adverse effects.

Compliance Documentation Required – Historic Preservation

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The ERR should contain one of these types of documentation:

1. Letter from SHPO that no historic properties will be affected;

2. The City adequately documented its finding of no historic properties affected and SHPO does not object within 30 days;

3. City documents that the project meets stipulations of a Programmatic Agreement executed with the SHPO; or

4. Memorandum of Agreement has been executed between the City and SHPO regarding mitigations measures that will be implemented to resolve adverse effects.

2. Floodplain Management (Executive Order 11988 and 24 CFR Part 55)

The purpose of Executive Order 11988 is to require the City to co nsider alternatives to developing projects in floodplains when other alternatives are available that achieve the same objective. This is to avoid risking lives and loss of property that results from occupying a floodplain, and to avoid losing the beneficial values of floodplains. Naturally vegetated floodplains can provide a broad area to spread and slow floodwaters, thereby reducing velocities and flood peaks. Slower floodwaters help maintain water quality because the slowed runoff allows sediments to be d eposited. Floodplains are also important for recharging groundwater. Rainwater and surface water infiltrate through the generally porous soil of the floodplain into the groundwater.

The City of Lynwood is required to avoid floodplain development whenever there are practicable alternatives to development in the floodplain. According to HUD regulation 24 CFR Part 55, floodplains are those land areas identified on maps published by FEMA as 100-year floodplain (Zones A or V). If the project is a “critical acti on,” the regulation also applies to areas in the 500 -year floodplain (Zone B). Coastal high hazard areas are subject to high velocity waters, such as hurricane wave wash. FEMA maps designate these as Zones V1-30, VE, or V.

Most, if not all, communities in the U.S. have been mapped by FEMA. However, if a community has not been mapped by FEMA, the City must establish whether or not the area is subject to one percent or greater chance of flooding in any given year [Section 6(c) of the Executive Order]. The Ci ty must research the best available information to determine whether buildings or structures could be damaged by floodwaters because of their location.

The City may contract to have a special study completed or, use the following sources of information:

1. U.S. Corps of Engineers,
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2. Community Flood Administrators;

3. U.S. Geological Survey Maps;

4. U.S.D.A. Natural Resources Conservation Service (formerly Soil Conservation Service); state departments of water resources;

5. county public works; or

6. Local flood control or levee districts.

The City of Lynwood must follow and comply with the Basic steps for compliance with floodplain management requirements located at Section 55.20, which identifies the “eight-step” decision making process.

Executive Order 11988:

Step 1 Determine whether the proposed action is located in a 100-year floodplain; Step 2 If the project is in a floodplain, publish notice of the proposal to consider an action in the floodplain (15 calendar day comment period); Step 3 Evaluate practicable alternatives to locating the proposed action in a floodplain (“Practicable” means capable of being done within existing constraints);
Step 4 Identify the potential impacts associated with occupancy and modification of the floodplain;
Step 5 Design or modify the action to minimize adverse impacts and preserve the beneficial values of the floodplain;
Step 6 Reevaluate whether the proposed action is practicable; Step 7 If the RE decides to proceed with the project, it must publish a notice of the decision, addressing why there is “no practicable alternative”, the alternatives that were considered, and the mitigation measures being adopted. (Seven calendar day comment period.); and
Step 8 Implement the proposed action with mitigation measures.

HUD has determined that certain activities are excluded from the 8 -step decision - making process, including:

1. HUD assistance for purchasing,

2. mortgaging or refinancing one-to four family properties, and

3. minor repairs or improvements on one-to four-family properties [§ 55.12].

NOTE: Part 55 is not applicable if FEMA has issued a Letter of Map Revision (LOMR) or Letter of Map Amendment (LOMA) for the subject site in a floodplain.

Compliance Documentation Required – Floodplain Management

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The ERR should contain one of these types of documentation:

1. Evidence the proposed action is not within a special flood hazard area mapped by FEMA (i.e., 100-year floodplain or 500-year floodplain for critical actions);

2. Documentation of the decision-making process is not applicable (§ 55.12); or

3. The 8-step decision making process was completed and a decision made that there is no practicable alternative

3. Wetlands Protection (Executive Order 11990)

The purpose of the Executive Order 11990 (Wetlands Protection, May 24, 1977) is to:

1. Avoid, if possible, any long and short -term adverse impacts associated with destruction or modification of wetlands; and

2. To avoid direct or indirect support of new construction in wetlands whenever there is a practicable alternative.

Compliance Requirements for Wetlands Protection

1. If new construction or conversion of vacant land is being proposed in a designated wetland, the RE should follow the decision-making process in § 55.20 (24 CFR Part 55) and conclude whether there is a practicable alternative to destroying or modifying the wetland.

NOTE: A permit from the U.S. Army Corps of Engineers is required if the wetland is within or adjacent to navigable waters of the U.S. or within the jurisdiction of the Corps.

Compliance Documentation Required – Wetlands Protection

The ERR should contain one of these types of documentation:

1. The proposed action does not include new construction or expanding the footprint of a building;

2. Evidence the new construction will not occur in a designated wetland or expand the footprint of a building into a wetland; or

3. There is no practicable alternative, according to the completed 8 -step decision making process. (U.S. Army Corps of Engineers has issued a permit where they have wetland jurisdiction.)

4. Endangered Species (Endangered Species Act and 50 CFR 402)

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Section 7 of the Endangered Species Act requires that, when Federal assistance is used for a project, a determination must be made whether continued existence of Federally- listed endangered or threatened species is likely to be affected, and whether it wil l result in their Critical Habitats being destroyed or adversely modified. The regulation implementing compliance with the Act is 50 CFR 402, issued by the Departments of Interior (U.S. Fish and Wildlife Service) and Commerce (U.S. National Marine Fisheries).

The regulation also covers species or critical habitat that is proposed for Federal-listing and is likely to be jeopardized by the project.

Compliance Documentation Required – Endangered Species

The ERR should contain one of these types of documentation:

1. Evidence the habitat will not be altered or species affected.

2. If the proposed action may affect species or their habitat, there is evidence the USFWS or NMFS has reviewed the biological assessment and agrees with the findings of no effect.

3. If the pro posed action will likely adversely affect species or their habitat, the USFWS or NMFS has issued either a “no jeopardy” or “jeopardy” biological opinion.

5. Coastal Zone Management Act

If the City chooses to use HOME funds for physical changes to properties or land within or adjacent to the coastal zone, the City must make a determination whether the project is consistent with the state’s approved coastal management program.

Compliance Documentation Required – Coastal Zone Management

1. The ERR should contain a general location map or statement establishing there are no coastal zone management areas in the community or State of California, or use other documentation that may be available.

6. Sole Source Aquifers

Aquifers are underground geological formations that yield a significant amount of water to a well or spring. The regulations at 40 CFR Part 149 requires the City to:

1. Determine whether a project is within a Critical Aquifer Protection Area designated by EPA; and
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2. Whether project activities have the potent ial to contaminate the aquifer. For example, drilling water wells and constructing water treatment and industrial facilities have the potential of contaminating aquifers.

Compliance Documentation Required – Sole Source Aquifers

The ERR should contain one of these types of documentation:

1. Documentation the proposed action is not within the boundaries of an EPA designated SSA;

2. Documentation the action is not a regulated activity within the boundaries of a SSA; or

3. Documentation that EPA has reviewed and commented on the proposed action within a SSA.

7. Wild and Scenic Rivers Act

Entire river systems or portions of rivers may be designated wild, scenic, or recreational and included in the National Wild and Scenic Rivers System (NWSRS) either by Act of Congress, or may be designated by a state or states if the U.S. Secretary of Interior finds it meets the criteria established by the Act.

In order to be in compliance with this Act, the City must:

1. Determine whether any river listed in the NWSRS, or that is de signated for inclusion in the NWSRS, would be directly and adversely affected by development activities associated with the project; and

2. If the project is located above or below a listed river, the City must determine whether the project will impact the ri ver management area or could unreasonably diminish the scenic, recreational, and fish and wildlife values present in the area.

Compliance Documentation Required – Wild and Scenic Rivers

The ERR should contain one of these types of documentation:

1. Evidence the proposed action is not within one mile of a designated Wild, Scenic, or Recreational River (http://www.nps.gov/rivers/wildriverslist.html); or

2. Documentation that contact was made with the Federal (or State) agency that has administrative responsibili ty for management of the river and that the proposed action will not affect river designation.

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8. Clean Air Act

The Clean Air Act is a Federal law; however, the states do much of the work to carry out most of the Act. Each state develops state implementation plans (SIP) that contain its objectives and regulations for carrying out the Clean Air Act.

The purpose of an implementation plan is to ensure that ambient concentrations of any of six air pollutants are within the established levels of the National Ambient Air Quality Standards (NAAQS). The six pollutants are:

1. ozone,

2. carbon monoxide,

3. particulate matter,

4. sulfur dioxide,

5. lead, and

6. nitrogen

Sources for pollutants include transportation vehicles, industrial facilities, and farming operations.

Asbestos removal and abatement is a part of the Clean Air Act. Refer to 40 CFR 61, Subpart M, National Emission Standards for Hazardous Air Pollutants (NESHAP.)

Compliance Documentation Required – Clean Air Act

The ERR should contain one of these types of documentation:

1. A resource expert has determined the proposed action is not of a type that would contribute air pollution;

2. The proposed action is within an area in attainment with the NAAQS for all six pollutants; or

3. The proposed action is within a non-attainment area for one or more of the pollutants but is in conformance with the State Implementation Plan (SIP).

9. Farmland Protection Policy Act (7 CFR Part 658)

The purpose of the Farmland Protection Policy Act is to minimize the effect of Federal programs on the unnecessary and irreversible conversion of farmland to nonagricultural uses. The Act does not apply to lands already in, or committed to, urban development (i.e., 30 structures per 40 acres or water impoundment). However, land that meets the definition of prime or unique farmlands, or is determined to be of statewide or local significance (with concurrence by the U.S. Secretary of Agriculture) is subject to the Act. 649

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If the City cannot determine whether or not the land is classified as prime or unique, it should request the USDA Natural Resources Conservation Service (NRCS) to make the determination by submitting Form AD -1006, the Farmland Conversion Impact Rating form. These forms are available at NRCS offices.

Compliance Documentation Required – Farmland Protection

The ERR should contain one of these types of documentation:

1. Evidence the current zoning classification is not for farmland use (i.e., residential use, commercial use, etc.);

2. Information from NRCS that shows the site is not prime or unique farmland; or

3. Evidence from NRCS shows the site is classified prime or unique agricultural land, and the RE completed and submitted form AD -1006 to NRCS and received its comments.

10. Environmental Justice (Executive Order 12898)

The Executive Order on Environmental Justice directs each Federal agency, and in the case of Part 58 the RE, to make achieving environmental justice part of its mission by "identifying and addressing as appropriate disproportionately high and adverse human health or environmental effects of its programs, policies, and activities on minority populations and low -income populations." Presently, there aren’t any regulations for implementing the Executive Order. However, HUD has issued a Strategy P lan for Implementing Environmental Justice, which it uses as guiding principle in deciding whether the project could result in disproportionate high and adverse effects on these populations.

During the environmental review process, health and environmenta l issues may arise concerning the suitability of the project site for its intended use, particularly its suitability for human habitation. The City should document how the Executive Order was given consideration in its final decision.

Compliance Documentation Required – Environmental Justice

The ERR should contain ALL these types of documentation:

1. The proposed action is compatible with surrounding land uses;

2. The site or surrounding neighborhood does not suffer from adverse environmental conditions;
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3. The proposed action would not create a negative environmental impact or aggravate an existing impact.

11. Site Contamination from Hazardous and/or Radioactive Materials [§ 58.5(i)(2)]

Section 58.5(i)(2) states that all properties receiving HUD assistance must be free of hazardous materials, contamination, toxic chemicals and gases, and radioactive substances that “could affect the health and safety of the occupants of conflict with the intended utilization of the property.”

Properties having clear health risks for the occupants or inhabitants should be rejected.

For multifamily housing (5 or more dwelling units) compliance with this policy requires efforts to identify any hazardous substances and radioactive materials that may be on site or off site that could harm inhabitants, as well as an evaluation of previous uses of the properties.

Compliance Documentation Required – Site Contamination

The ERR should contain one of these types of documentation:

1. Evidence the site is not contaminated (For multifami ly housing projects this includes onsite and off-site contamination and previous uses of the site);

2. Evidence supporting a determination the hazard will not affect health and safety of the occupants or conflict with the intended use of the site

12. Explosive/Flammable Operations (24 CFR 51, Subpart C)

The purpose of this HUD regulation is to ensure there is an acceptable separation distance between people and buildings from stationary aboveground storage tanks more than 100 gallons in size and that contain materials that are explosive or flammable in nature (e.g., gasoline, fuel oil, kerosene, crude oil, propane). This is to prevent injury to people and damage to property from industrial accidents.

The City must determine if there are hazardous liq uids and gases being stored within one mile of the project, and within line-of sight of the project.

The regulation does not apply to rehabilitation of buildings that will not increase residential densities, convert buildings for habitation, or makes vaca nt buildings habitable (§ 51.201).

Neither does the regulation apply to individual fuel supply for one to four family housing units (Memorandum from Office of Environment and Energy, HUD, October 3, 1992). 651

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Compliance Documentation Required – Stationary Aboveground Storage Tanks

The ERR should contain one of these types of documentation:

1. Document the proposed action does not meet the definition of a “HUD assisted project” (§ 51.201);

2. Field review documentation or aerial photos show no aboveground tanks within one mile;

3. If tanks are within one mile:

4. There’s an effective barrier;

5. There’s an acceptable separation distance for people and buildings;

6. The people and buildings can be protected with mitigation measures.

7. Noise Abatement and Control (24 CFR 51, Subpart B)

13. Noise Abatement and Control (24 CFR 51, Subpart B)

The purpose of this HUD regulation is to encourage suitable separation between noise sensitive lands uses, particularly housing, and major noise sources (i.e., roadways, railroads, and military and civilian airports).

The City must determine whether there are any major roadways with 1,000 feet, railroads within 3,000 feet, and military or civilian airports (regulated by the Federal Aviation Administration) that are within 15 miles of the project.

HUD’s noise standards are based on the Day-Night Average (DNL) Sound Level System– -a system of calculating noise exposure instead of measuring it with instruments. This system is a 24 -hour average sound level (expressed in decibels), with an addition al 10 decibels added for nighttime noise. The calculation is based upon projected conditions that are expected at least 10 years beyond the project approval date.

Noise is considered Acceptable when the exterior noise level is 65 DNL or less .

Otherwise, attenuation measures must be incorporated into construction plans ( 66-75 DNL, Normally Unacceptable). If the exterior noise level is above 75 DNL (Unacceptable), the project requires special approval from the certifying officer, or it should be disapproved [24 CFR 51.104(a)(2)].

The City must determine whether the exterior noise level at the project site is within HUD’s standard for acceptability, or whether noise attenuation is required or another site should be selected for the project. Making this deter mination may require completing a noise calculation for roadways, railroads, and/or airports according to 652

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guidelines provided in The Noise Guidebook . This guidebook is issued by and available from HUD online.

Compliance Documentation Required – Noise Abatement and Control

The ERR should contain one of these types of documentation:

1. Documentation the proposed action is not:

2. A noise sensitive land use, according to [§ 51. 101(a)(2)] (i.e., housing);

3. Within 1000 feet of a major roadway, 3,000 feet of a railroad, or 15 miles of a military of FAA-regulated civil airfield.

4. If within those distances, documentation shows there’s an effective noise barrier;

5. If within those distances, documentation shows the noise level is Acceptable (at or below 65 DNL);

6. Documentation shows the noise generated by the noise source(s) is Normally Unacceptable, and noise attenuation requirements are identified and will bring the interior noise level to 45 DNL and/or exterior noise level to 65 DNL.

14. Airport Clear Zones (24 CFR 51, Subpart D)

Clear Zones, Runway Clear Zones, and Accident Potential Zones are designated areas at the end of airport runways where the greatest number of airplane accidents occur (about 75 percent). This HUD regulation prohibits using HUD assistance for:

1. New construction; and

2. Major or substantial rehabilitation and modernization activities if projects are located within a Clear Zone or Runway Clear Zone.

It also prohibits using HUD assistance for these activities in an Accident Potential Zone, if such activities would:

1. Change the current use of the facility;

2. Significantly increase the density or number of people at the site; or

3. Introduce explosive, flammable, or toxic materials to the area.

However, this prohibition does not apply to the purchase, sal e, or rental of existing properties, nor to minor rehabilitation/modernization or emergency assistance activities.

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for Accident Potential Zones, it does not change its use, increase density, or introduce explosive, flammable, or toxic materials. See § 51.302.)

Compliance Documentation Required – Airport Clear Zones

The ERR should contain one of these types of documentation:

1. Documentation there are no FAA -regulated airports within 2500 feet and/or Department of Defense airfields within 15,000 feet (about 2.8 miles) of the proposed project;

2. There’s documentation the rule is not applicab le to the proposed project (i.e., acquisition of an existing building, “minor” rehabilitation, or emergency action);

3. The project is within the specified distances, but the map of the airport/airfield shows the proposed action is not located within a Runway Clear Zone, Clear Zone, or Accident Potential Zone.

Compliance with NEPA

The focus of NEPA is on addressing potential impacts related to the human environment (i.e., social, economic and natural resources). So, not only must the Environmental Assessment (EA) address compliance with the Federal laws and authorities (§ 58.5) that were previously discussed in this chapter, but the City must also address additional environmental factors.

The City must determine the effects of the proposed project on the character, features and resources of the project area. Determinations of impact should be based on:

1. site observations,

2. information from relevant documents and reports,

3. special studies, or

4. correspondence with the appropriate government agencies.

The City of Lynwood will visit the project site to assess or determine the presence/absence of the following factors included in the Environmental Assessment Checklist that includes:

1. Unique and natural features;

2. Site suitability, access, and compatibility with the surrounding environment;

3. Soil stability, erosion, and drainage;

4. Nuisances and hazards (manmade or built); and

5. Commercial/retail and transportation.

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The City must contact the appropriate local agencies to assess the impact that the project will have on the areas listed in the checklist. Detailed guidance is provided in the HUD publication entitled Environmental Review Guide for Community Development Block Grant Programs under Title I of the Housing and Community Development Act of 1974, as Amended (HUD-CPD-782(2), September 1991).

A summary of some of this guidance is includes:

1. Unique and natural features. To supplement the determination of unique and natural features, contact your state agency that deals with natural resources to determine if any designated Natural Areas or Rare Species Habitats will be affected by the project.

2. Site suitability, access, and compatibility with the surrounding environment.

To supplement the determination of site suitability, accesses, and compatibility with the surrounding environment, contact the local planning agency or board.

3. Soil stability, erosion, and drainage. To supplement the determination of soil stability, erosion a nd drainage, refer to the Natural Resource Conservation Service (NRCS) County Soil Survey to determine if engineering restraints are indicated. The Soil Survey may be obtained by contacting the local NRCS office.

Provide comments from the site engineer or local development department if engineering restraints are indicated based on the Soil Survey. Where applicable, a review of a geologic map produced by the state geological surveys may be required.

4. Water supply/sanitary sewers. To assess water supply/sanitary sewers, contact the local public works department.

5. Solid waste disposal. To assess solid waste disposal, contact the local public works department.

6. School services. To assess school services, contact the local school board.

7. Parks, recreation, and s ocial services. To assess parks, recreation, and social services contact the local planning department, parks and recreation department, and social services department.

8. Emergency health care, fire and police services. To assess emergency health care, fire , and police services contact the local fire department, police department, and emergency management organization.

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9. Transportation. To assess transportation, contact the state or city transportation department.

Once determinations have been made, the appropriate impact code must be entered from the list provided in the EA that signifies:

1. No impact anticipated;

2. Potentially beneficial;

3. Potentially adverse;

4. Requires mitigation; and

5. Requires project modification.

The City must note names, dates of contac t, telephone numbers and page references as well as any mitigation measures required. Attach additional source documentation to the EA as appropriate.

1. OTHER REQUIREMENTS (§ 58.6)

The following section outlines other Environmental Review requirements.

A. Flood Insurance

Section 202 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4106) requires that Federal funds shall not be provided to an area identified by the Federal Emergency Management Agency (FEMA) as having special flood hazard areas unless:

1. The community is participating in the National Flood Insurance Program, or it has been less than a year since the community was designated as having special hazards; and

2. Flood insurance is obtained.

The City of Lynwood is responsible for ensuring that property owners receiving HOME assistance take flood insurance on properties located in a 100 -year floodplain. Flood insurance must be taken for the life of a loan, or the useful life of an improvement funded by a grant.

B. Coastal Barriers

HUD Assistance may not be used for HOME assisted activities proposed in the Coastal Barrier Resource System. The Act prohibits Federal assistance for development or improvement of barrier islands that are subject to frequent damage by hurricanes and high storm surges.
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C. Runway Clear Zone or Clear Zone

1. The City must advise buyers of existing property whether the property is located in a runway clear zone or clear zone.

2. The City must inform the buyer of the implications of such a location, and that there is a possibility that the property may, at a later date, or be acquired by the airport operator.

3. The buyer must sign a statement acknowledging receipt of this information. (A copy of this disclosure statement, Notice to Prospective Buyers of Properties Located in Runway Clear Zones and Clear Zones/Accident Potential Zones, is contained in the EA form.)

2. RELEASE OF FUNDS AND APPROVAL PROCESS

The City of Lynwood will adhere to the following steps related to the release of funds and approval process.

Public Notification

The public notification process is an integral part of the environmental review process that allows the public, interested persons, and agencies to voice their opinions about the project’s potential environmental impact and the City's environmental findings.

Public notices are required when the City determines that:

1. a project which is categorically excluded subject to § 58.5 cannot convert to exempt, or

2. when the City prepares an environmental assessment (EA) or environmental impact statement (EIS).

A. Categorical Exclusions That Cannot Convert to Exempt

The City must issue a Notice of Intent to Request Release of Funds if:

1. the proposed activity triggers compliance with any of the Federal laws and authorities, and

2. There is documentation supporting the finding, Publish or post/mail a Notice of Intent to Request Release of Funds (NOI/RROF), according to §§ 58.45 and

58.70. Public Comment
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1. A minimum of 7 calendar days must be allowed for public comment if the notice is published in a newspaper of general circulation in the affected community, or

2. A minimum of 10 calendar days if the notice is posted and/or mailed, according to established citizen participation procedures.

NOTE: If the notice is published, it only needs to appear once in the newspaper and does not have to be published again for each of the 7 days of the comment period.

If posted, the notice must be maintained in place until after the public comment period has expired.

3. The public comment period begins at 12:01 a.m. local time on the day following the publication or posting/mailing date of the notice (§ 58.21).

The City must consider and respond to any comments received, and resolve any outstanding issues before signing and submitting a Request for Release of Funds and Certification to HUD.

4. A copy of the public notice must accompany this request.

5. HUD has 15 calendar days from the date it receives the City's request (or 15 days from the date that it appears in the notice, whichever is later) before it may approve release of funds, (Authority to Use Grant Funds is issued).

Additionally, the City must when publis hing or posting/mailing the notice, at minimum distributes a copy of the notice, to:

1. individuals and groups known to be interested in the project/activities,

2. to the local news media,

3. to the appropriate tribal,

4. local, state and Federal agencies, and

5. Regional Office of the Environmental Protection Agency having jurisdiction, and to HUD (§ 58.45).

Environmental Assessments

Upon completion of the EA, the City will make either:

1. A finding of no significant impact (FONSI), or

2. A finding of significant impact (FOSI) determination.

In the event that a FONSI is made, the City must issue two public notices:
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1. Finding of No Significant Impact (FONSI) and

2. Notice of Intent to Request Release of Funds (NOI/RROF).

NOTE: These notices may be published concurrently.

When there is a combined FONSI/NOI-RROF notice:

1. A minimum of 15 calendar days must be allowed for public comment if the notice is published in a newspaper of general circulation in the affected community, or

2. A minimum of 18 calendar days if the notice is posted and/or mailed, according to established citizen participation procedures.

NOTE: If the notice is published, it only needs to appear once in the newspaper and does not have to be published again for each of the 15 days of the comment period. If the notice is posted, it must be maintained in place until after the public comment period has expired.

The public comment period begins at 12:01 a.m. local time on the day following the publication or posting/mailing date of the notice (§ 58.21).

1. The City must consider and respond to any comments received, and resolve any outstanding issues before signing and submitting a Request for Release of Funds and Certification to HUD.

2. A copy of the public notice must accompany this request.

3. HUD has 15 calendar days from the date it receives the City's request (or 15 days from the date that appears in the notice, whichever is later) before it may approve release of funds, (Authority to Use Grant Funds is issued.)

In the event that a FOSI is made:

1. The City must initiate an Environmental Impact Statement (EIS) in accordance with Subparts F and G of Part 58.

An EIS has additional public involvement and notification requirements.

Additionally, the City must at minimum when publishing or posting/mailing t he notice distribute a copy of the notice, to:

1. Individuals and groups known to be interested in the project/activities, to the local news media,
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2. To the appropriate tribal,

3. Local, state, and Federal agencies,

4. To Regional Office of the Environmental Prot ection Agency having jurisdiction, and to HUD (§ 58.45).

NOTE: All projects involving the rehabilitation of existing buildings or structures must be free of friable asbestos. Testing by a state -certified asbestos testing company or individual for the presence of friable asbestos must be conducted before HOME assistance can be approved.

EXHIBIT 11—SUMMARY OF ENVIRONMENTAL REVIEW ACTION BY ACTIVITY

Activity Action Documentation/Form Notes
Administration Exempt § 58.34
(a)

Complete Certification of
Exemption
Under HOME rules,
funds must be
associated with a
specific project to be
considered a project
cost rather than an
administration cost.

TBRA Cat. Ex. Not
subject to §

58.5 § 58.35 (b)(1)
Complete Certification of
Categorical Exclusion (not
subject
to § 58.5)
Public notification
and HUD approval is
not required.

Homeowner-
Rehabilitation
Cat. Ex. Subject
to § 58.5
§ 58.35 (a)(3)(i)
Complete Certification of
Categorical Exclusion
(subject to 58.5), Statutory
Checklist, and Compliance
Documentation Checklist
(58.6)
If project does not
convert to exempt,
public notification
and HUD approval is
required prior to
committing and
expending funds.

Homeowner-
Reconstruction
Cat. Ex. Subject
to § 58.5
§ 58.35 (a)(4)(ii)
Complete Certification of
Categorical Exclusion
(subject to 58.5), Statutory
Checklist, and Compliance
Documentation Checklist
(58.6)
If project does not
convert to exempt,
public notification
and HUD approval is
required prior to
committing and
expending funds.

Homebuyer
Acquisition existing
unit
Cat. Ex. Subject
to § 58.5
§ 58.35 (a)(5)
Complete Certification of
Categorical Exclusion
(subject to 58.5), Statutory
Checklist, and Compliance
If project does not
convert to exempt,
public notification
and HUD approval is
required prior to
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Documentation Checklist
(58.6)
committing and
expending funds.

Homeowner-New
Construction
development (single
family 1-4 units)
Cat. Ex. Subject
to § 58.5
Complete Certification of
Categorical Exclusion
(subject to 58.5), Statutory
Checklist, and Compliance
Documentation Checklist
(58.6)
If project does not
convert to exempt,
public notification
and HUD approval is
required prior to
committing and
expending funds.

New Construction
development (5 or
more single-family
units on scattered
sites:
• The scattered sites
are more than
2,000 feet apart,
and
• No more than 4
units per site
Cat. Ex. Subject
to § 58.5
§ 58.35 (a)(4)(ii)
Complete Certification of
Categorical Exclusion
(subject to 58.5), Statutory
Checklist, and Compliance
Documentation Checklist
(58.6)
If project does not
convert to exempt,
public notification
and HUD approval is
required prior to
committing and
expending funds.

Acquisition,
Rehabilitation and
Resale (single family
1- 4 units)
Cat. Ex. Subject
to § 58.5
Complete Certification of
Categorical Exclusion
(subject to 58.5), Statutory
Checklist, and Compliance
Documentation Checklist
(58.6)
If project does not
convert to exempt,
public notification
and HUD Approval is
required prior to
committing and
expending funds.

Rental Acquisition
existing building
(single family 1-4
units or multifamily)
Categorically
Excluded
Subject to §

58.5 Complete Certification of
Categorical Exclusion
(subject to 58.5), Statutory
Checklist, and Compliance
Documentation Checklist
(58.6)
If project does not
convert to exempt,
public notification
and HUD approval is
required prior to
committing and
expending funds.

Rental Rehabilitation
(multi-family 5 or
more units):
 Unit density will
not change more
than 20% as a
result of rehab;
Categorically
Excluded
subject to §

58.5 Complete Certification of
Categorical Exclusion
(subject to 58.5), Statutory
Checklist, and Compliance
Documentation Checklist
(58.6)
If project does not
convert to exempt,
public notification
and HUD approval is
required
prior to committing
and expending
funds.
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 Current use will
not change from
residential to
nonresidential;
and/or
 Estimated cost of
rehab is less than
75% of
replacement cost
after rehab
Vacant Land
Acquisition for New
Construction (Rental
or Single Family, 5 or
more units on a site)
Environmental
Assessment
Complete Environmental
Assessment (which includes
NEPA and related Federal
laws and authorities at §

58.5, as well as § 58.6
requirements)
Public notification
and HUD approval is
required prior to
committing and
expending funds
New Construction
development (5 or
more single-family
units on scattered
sites):
 The scattered sites
are less than 2,000
feet apart, and/or
 There are more
than 4 units per
site
Environmental
Assessment
Complete Environmental
Assessment (which includes
NEPA and related Federal
laws and authorities at §

58.5, as well as § 58.6
requirements
Public notification
and HUD approval is
required prior to
committing and
expending funds
Homeowner-
Rehabilitation
 Footprint of
building is
increased in a
floodplain or
wetland.

Environmental
Assessment
Complete Environmental
Assessment (which includes
NEPA and related Federal
laws and authorities at §

58.5, as well as § 58.6
requirements)
Public notification
and HUD approval is
required prior to
committing and
expending funds
Rental Rehabilitation
(multi-family 5 or
more units):
 Unit density is
changed more than
20% as a result of
rehab;
Environmental
Assessment
Complete Environmental
Assessment (which includes
NEPA and related Federal
laws and authorities at §

58.5, as well as § 58.6
requirements)
Public notification
and HUD approval is
required prior to
committing and
expending funds
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 Current use will be
changed from
residential to
nonresidential or
vice versa; and/or
 Estimated cost of
rehab is more than
75% of
replacement cost
after rehab

NOTE: Except for administrative costs, combinations of activities above that make up a project must be evaluated in a single environmental review. Whichever of the project activities requires the highest level of review dictates the type of review required for the entire project.

PROCEDURE

1. The City of Lynwood City Manager is the designated Certifying Official. The City Manager will sign all appropriate HUD certifications and the like.

2. The City's environmental review process will be completed by the Community Development Department Director and/or his/her designator.

3. The City will ensure the proper classification, completeness, and accuracy of the environmental review preparation.

4. The Management Analyst will execute the request of release of funds (RROF), and submitting it to HUD, which issues the environmental clearance, if applicable.

5. By the City's Certifying Official (CO) signing the RROF, he/she is certifying the City:

a. Request of Release of Funds and Certification —has carried out its responsibilities for environmental review, decision -making and action pertaining to the proposed HOME-funded project
b. Has assumed responsibility for and complied with and will continue to comply wi th, the National Environmental Policy Act of 1969 (NEPA), as amended, and the environmental procedures, permit requirements and statutory obligations of the laws cited in 24 CFR §58.5; and also agrees to comply with the authorities in 24 CFR §58.6 and appl icable State and local laws.
c. Has, after considering the type and degree of environmental effects identified by the environmental review completed for the proposed project, 663

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found that the proposal did not require the preparation and dissemination of an environmental impact statement (EIS). (Note: If it is an EIS is needed, contact the HOME Program immediately for further guidance.)

NOTE: In certain limited instances, a project that is considered Categorically Excluded, and Subject to 24 CFR Part 58.5, may convert to Exempt after the Statutor y Checklist has been completed. For more information, go to

http://housing.mt.gov/content/HM/docs/HMAdminManual/Chap2/2011/HMChap02Exh2G2 CESTInstruct.doc

d. Has disseminated and/or published in the manner prescribed by 24 CFR §§58.43 and 58.55 a notice to the public in accordance with 24 CFR §58.70 and evidenced by the copy (copies) or evidence of posting and mailing procedure attached to the environmental review package submitted to the HOME Program.
e. Is in compliance with procedures and requirements of 24 CFR Part 58 relating to the dates for all statutory and regulatory time periods for review, comment, or other action.
f. Has, in accordance with 24 CFR §58.71(b), advised the recipient (if different from the responsible enti ty) of any special environmental conditions that must be adhered to in carrying out the project.
g. As the duly designated certifying official of the responsible entity, the CO is also certifying that:
i. He/she is authorized to and consents to assume the status of Federal official under the National Environmental Policy Act of 1969 and each provision of law designated in the 24 CFR §58.5 list of NEPA -related authorities insofar as the provisions of these laws apply to the HUD responsibilities for environmental r eview, decision -making, and action that have been assumed by the responsible entity.
ii. He/she is authorized to and accepts on behalf of the recipient personally, the jurisdiction of the Federal courts for the enforcement of all these responsibilities, in his/her capacity as certifying officer of the responsible entity.

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CHAPTER 6: ADMINISTRATIVE REQUIREMENTS

PART 1: GENERAL REQUIREMENTS

Eligible Administrative and Planning Costs

The City of Lynwood will implement the following general administrative procedures:

1. Charge no more than the allowed maximum of 10 percent of the HOME allocation for reasonable administrative and planning costs including staff costs as well as other administrative costs.

2. Charge no more than the 10 percent cap for certain soft costs incurred that is project - related.

a. If a consultant it used the consultant fee, if any, must be included in an amount not to exceed ten percent (10 percent) of the requested HOME Program allocati on in the proposed development budget.

b. If a consultant is not used the amount must not exceed ten percent (10 percent) of the requested HOME Program allocation as reimbursement of project delivery costs.

c. The HOME Program allocation may not include both a consultant fee and a project delivery cost reimbursement.

3. Utilize ONLY one of the two following options when charging eligible administrative and planning costs that include expenditures for salaries, wages, and related costs of City staff responsible for the HOME Program administration:

Option 1: Include the entire salary, wages, and related costs of each person whose primary responsibility involves program administration assignments.

OR
Option 2: Determine the pro rata share of salary, wages, and rel ated costs of each person whose job includes any program administration assignments for each person.

4. Restrict charging other planning and administrative costs to include:

a. Goods and services necessary for administration (utilities, office supplies, etc.); b. Administrative services under third party agreements (e.g., legal services); c. Providing public information;
d. Fair housing activities;
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e. Indirect costs under a cost allocation plan prepared in accordance with applicable provisions of 2 CFR Part 200, Subpart E – Cost Principles and approved by the City of Lynwood; and
f. Complying with other Federal requirements.

5. Restrict charges of eligible project -related soft costs to include Staff and overhead costs:
incurred by the City or a third -party contractor that are di rectly related to carrying out specific HOME projects that include:

a. Appraisals;
b. Preparation of work specifications;
c. Loan processing and underwriting;
d. Construction inspections and oversight;
e. Inspections for the presence of lead hazards or defective paint; f. Advisory and other relocation services;
g. Project-specific environmental reviews; and

6. Administrative costs charged to the project will not be included in the loan to the project owner.

7. If the project does not go forward, project costs must be charged as administrative costs.

Uniform Administrative Requirements

The City of Lynwood receives federal funding and therefore will comply with 2 CFR Part 200 (Uniform Guidance) which apply to states, local governments, nonprofits, and education institutions. 2 CFR Part 200 establishes uniform administrative requirements, cost principles, and audit requirements for Federal awards. The City will not impose additional requirements except as allowed in 200.102 and 200.21, or unless specifically required by Federal stat ute, regulation, or Executive order. Additionally, 2 CFR Part 200 provides the City with the policy for collecting and submitting information on all Federal financial assistance programs to the Office of Management and Budget (OMB) and communicating this i nformation to the public. It also establishes Federal policies related to the delivery of this information to the public, including through the use of electronic media. It also sets forth how the General Services Administration (GSA), OMB, and Federal agencies implement the Federal Program Information Act.

The City will follow the following administrative requirements:

1. Administrative requirements. Subparts B through D of 2 CFR Part 200 outline the administrative requirements the City will follow when m anaging federal grant funds.

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2. Cost principles. Subpart E establishes principles the City will use to determine allowable costs incurred by recipients and subrecipients under Federal awards. These principles are for the purpose of cost determination. They do not address the circumstances nor dictate the extent of Federal Government funding of a particular program or project.

3. Single Audit Requirements and Audit Follow -up. Subpart F outlines the requirements the City will use to conduct a Single Audit when the City expends a certain amount of federal funds in a fiscal year. It also describes how audit findings shou ld be addressed and how federal or pass-through agencies may use the results to assess compliance.

Written Agreements

Written agreements are important legal documents that assist the City of Lynwood to protect investments and enforce HOME Program rules, for verifying compliance and monitoring performance, and methods of enforcing program requirements.

The City of Lynwood's written agreement will serve as a concise statement of the relationship between the City and a funded entity/beneficiary of HOME funds. It will also clearly state the conditions under which the HOME funds are provided.

1. Required provisions

The City of Lynwood HOME agreements will include at minimum provisions based on the Final Rule (24 CFR Part 92) that details the specific HOME provisions that must be included in written agreements for beneficiaries that may receive HOME funds. The provisions are:

a. Use of funds: Description of tasks to be performed, schedule for completing tasks, a budget in sufficient detail to effectively monitor performance and the period of the agreement. (For nonprofit and for-profit housing owner, sponsor, or developers, the duration of the agreement will be in a separate clause.)

b. Reversion of assets/program income requirements : States whether program income, unexpended funds, or other assets will be returned to the City.

c. Uniform administrative requirements : Compliance with applicable Federal administrative requirements, including the provisions of 2 CFR Part 200 (Uniform Guidance) and 2 CFR Part 200, Subpart E – Cost Principles, as well as the applicable sections of 2 CFR Part 200 for governmental and nonprofit entities.

d. Other Federal requirements: Requirements regarding non-discrimination and equal opportunity; affirmative marketing and minority outreach; environmental review; displacement, relocation and acquisition; labor standards; lead -based paint; and conflict-of-interest.
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e. Affirmative marketing: Requirements for affirmative marketing in projects of five or more HOME-assisted units.

f. Requests for disbursements of funds : Requirement that HOME funds may not be requested until funds are needed for payment of eligible costs. The amount of each request must be limited to the amount needed. Program income must be returned to the City of Lynwood before any new funding requests will be provided.

g. Records and reports : Enumeration of records that must be maintained, and information and reports that must be submitted.

h. Enforcement of the agreement: This provision is in the agreement with all parties, including owners, and is the means of enforcing the provisions of the written agreement.

2. Template agreements

a. The City's template contracts, agreements and other legal documents as provided by the City's Community Development staff must be used.

3. Duration of agreements

a. The agreement must specify the duration of the agreement. If the housing assisted under the agreement is rental housing, the agreement must be in effect through the affordability period required by the City of Lynwood. If the housing assisted under this agreement is homeownership housing, the agreement must be in effect at least until the completion of the project and transfer of ownership to a low -income family.

4. Amending the documents

Written agreements may be amended by mutual agreement of the parties when regulations and requirements change, or when adjustments to funding levels or other conditions related to a specific project are needed.

EXHIBIT 12

WRITTEN AGREEMENT REQUIRED PROVISIONS
REQUIRED PROVISION (§92.504) SUBRECIPIENTS OWNERS,

SPONSORS, CONTRACTORS
HOM
EOW
NERS
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DEVELOPERS
(CHDOS)
Use of HOME Funds    
Affordability (§92.252 or §92.254) 
Program Income 
Uniform Administration
requirements (§92.505)

Project requirements (as applicable
in Subpart F)
 2.254
(b)
only
Property Standards (§92.251 and
(§92.355)

Other Program Requirements
(Subpart H except (§92.252 and
(§92.357)
  Except 92.505,

92.506, 92.352

Affirmative Marketing ((§92.351)  
Requests for Disbursement of Funds  
Reversion of Assets  
Records and Reports  
Enforcement of the Agreement
(§92.252 and 24 CFR Part 85 as
applicable)
 
Duration of the Agreement  
CHDO Provisions ((§92.300 and
(§92.301)

Suggested Provisions (not HOME
Requirements)

Roles and Responsibilities  
Description of the Project  
Performance Standards  
Conflict of Interest   
Monitoring  
Close-out Requirements  
Non-Compliance   

EXHIBIT 13

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HOME PROGRAM AGREEME NT AND CITY AFFORDAB ILITY AGREEMENT BETW EEN THE CITY OF

LYNWOOD AND THE APPLICANT F OR THE OWNER -OCCUPIED HOUSING REHABILITA TION

PROGRAM

HOMEOWNER NAME(S) & PHONE
NO.:

PROPERTY
ADDRESS:

CONTRACTOR NAME, ADDRESS,
PHONE NO.:

This HOME Investment Partnerships Program Housing Rehabilitation Agreement (“Agreement”) is entered into by the City of Lynwood, California (“the City”) and (hereinafter called “Homeowner” whether one or more persons). This Agreement applies only to the Homeowner and dwelling unit (“Property”), as identified above. This Agreement describes the HOME Program rules and the City affordability requirements that pertain to the assistance provided through the City’s HOME Housing Preservation Program (HHPP). The duration of the HOME portion of this Agreement is thirty (30) days from the date of completion of rehabilitation work as defined herein. The duration of the City’s affordability period and th e deed of trust shall continue until a change in title occurs, as defined herein.

By initialing the items listed below, Homeowner and Contractor confirm that each item has been read and Homeowner and Contractor understand and agree to comply with each item , as applicable:

1. USE OF HOME PROGRAM FUNDING

_____ The City will provide HOME Program funding in the amount of $ ___ as a deferred loan with a HOME compliance period of thirty (30) days; _____ A City imposed affordability period will run concurrent to the HOME compliance period and extend forward until there is a transfer of title for any of the following reasons: The property is sold; the property is foreclosed on; the property is refinanced; the property is leased; the applicant(s) fail(s) to occupy the property as their primary residence; _____ In the event that one of the Homeowner’s dies, ownership as stipulated by California Real Estate law transfers to the surviving individual. This procedure is not a transfer of title.

Consequently, the remaining Homeowner will assume the loan pursuant to the original terms of the loan.
_____ At the time Homeowner is approved for HOME Program assistance, Homeowner has an ownership interest in and occupies the Property to be rehabilitated as his/her principal residence. Homeowner agrees to continue to occupy the Property as his/her principal residence for the HOME Compliance Period and the City’s Affordability Period. _____ At the time Homeowner is approved for the HOME Program assistance, the Homeowner qualifies as a low-income household with a gross household income that does not exceed 670

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80% of the area median income as established by the U.S. Department of Housing and Urban Development for the Los Angeles MSA adjusted for household size, and as updated annually.
_____ The City Affordability Period will be secured by a promissory note and recorded subordinate deed of trust (no lower than second position). Monthly payments will not be required on this portion of the assistance. This assistance will be provided at 0% interest, _____ If, during the City’s Affordability Period, the Homeowner sells or transfers title to the Property, rents or leases the Property, refinances the Property, or if Homeowner no longer lives in the Property as his/her principal residence, all of the deferred payment loan will be due and payable to the City. However, in the event the Homeowner sells the Property, and the net proceeds after repayment of the first mortgage and the costs of sale of the Property are less than the amount of City’s loa n, the amount due shall be reduced to the amount available.
_____ Housing rehabilitation work will provide general rehabilitation necessary to bring the structure into compliance with the City’s applicable building codes; the City’s adopted property standards (if applicable); the City’s housing rehabilitation program standards; and applicable lead-based paint (LBP) regulations (24 CFR 92.251 & 92.355). Rehabilitation work to be completed will only be as specified in the approved written work specification for the Property and fully executed and approved change orders. All codes, standards, and regulations noted are incorporated herein by reference. _____ The maximum after -rehab value of Property must not exceed the current 203(b) FHA Mortgage Limits for a single unit structure in the Los Angeles Metropolitan Statistical Area.

The estimated after-rehab value is: $_______________
The 203(b) Mortgage limit is: $_______________ as of (Insert Date) ______________________________
Estimated Start Date: _______________________
Estimated Completion Date: _________________
_____ After the notice to proceed is issued by the City, the Homeowner has a three (3) day Right of Rescission Period. If Homeowner does not exercise their Right of Rescission, the Contractor has ten (10) calendar days to begin work;
_____ Upon completion of rehabilitation work, the Contractor shall furnish warranties as fully described in Section XV of the Housing Rehabilitation Program Policies (incorporated herein by reference).

2. DISBURSEMENT OF FUNDS

______ Funds will be disbursed on a reimbursement basis and only. ______ During the course of the work if any partial or in -progress payments are made, the Contractor shall furnish fully executed and dated lien releases/waivers for the specified amount(s) paid to himself/herself AND from all subcontractors receiving proc eeds from such partial or in-progress payments.
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_____ Upon completion of the rehabilitation work, final inspections, and a qualified building official inspection, the Contractor will submit a written invoice for the amount of the contract, plus change orders, less ten percent (10%) retainage. _____ Upon completion of rehabilitation work, the Contractor shall furnish fully executed and dated lien releases/waivers for the specified amount(s) paid to himself/herself AND from all subcontractors receiving proceeds from the final payment/draw. _____ Retainage funds will be held for twenty (20) days. After twenty (20) days, the Contractor will submit a written invoice for the final payment accompanied by the required Bill Paid Affidavit and a fully executed Release of Lien for his/her ten percent (10%) retainage. Upon approval by the City and the Homeowner the final ten percent (10%), payment will be made to the Contractor.

3. ROLES AND RESPONSIBILITIES

_____ Roles and responsibilities of the Homeowner include, but are not limited to: Submission of true and accurate financial and other eligibility documentation; selection of the contractor; review and execution of the work write -up, contract, and associated documents; and accommodating the schedules of the Contractor and the City to facilitate timely completion of rehabilitation work and inspections.
_____ Roles and responsibilities of the Contractor include, but are not limited to: Communicating with Homeowner and the City regarding status of the work during the construction period; notifying the City, in writing, including a justification delineating and supporting the need for any change orders (including itemized cost information); completing any items identified on the final inspection prior to execution of the C ertificate of Completion; and providing and adhering to warranty agreements in a timely manner. _____ Roles and responsibilities of the City, include, but are not limited to: Ensuring payment to Contractor as set forth in the rehabilitation contract; communicating with the Homeowner and Contractor regarding all administrative procedures that affect completion of rehabilitation work; advising the Homeowner regarding city property standards, building code requirements, local property standards and housing reh abilitation standards which may affect the prioritization of work items; and documenting project files in compliance with all applicable HUD regulations.
_____ Roles and responsibilities of the City, the Homeowner, and the Contractor are more specifically outlined in the City’s HOME Policies and Procedures, incorporated herein by reference.
_____ Homeowner has responsibility to select the contractor to complete the rehabilitation work from any eligible bid, as long as the price quoted is within a range of n o more than ten percent (10%) below or ten percent (10%) above the cost estimate of scope of rehabilitation work prepared by the City. Eligible bids may be obtained from a list of City pre -approved contractors or other contractor s selected by Owner. The se lected Contractor and his/her subsequently selected subcontractors must not be debarred or suspended from the Housing Rehabilitation Program, federally funded programs, or state funded programs; 672

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must carry the required insurance; submit or have submitted a completed Contractor Information Form to the City and a statement of non -use of lead -based paint; pass a criminal background check; and all other program requirements of the HOMEOWNER REHABILITATION ACTIVITIES as outlined in the program policy, incorporat ed herein by reference.

4. PROPERTY STANDARDS

_____ All rehabilitation work will be completed in compliance with the Housing Rehabilitation Program’s locally written and adopted property standards and all applicable written local building and property codes and standards.
_____ Housing rehabilitation assistance will only be provided to cover the cost of rehabilitation necessary to bring the property in compliance with locally adopted, written building and property standards, Rehabilitation Program standards and, applicable Federal and State building and property standards.

5. WRITTEN AGREEMENT PROVISIONS

_____ Homeowner will enter into a written agreement with the Homeowner -selected, qualified Contractor for the completion of rehabilitation work. The written a greement shall include the scope of work, the cost of the work to be completed, and the time frame during which the scope of work must be completed, all of which have been reviewed and approved by Homeowner, City, and Contractor at the preconstruction conf erence. Said written agreement, work specifications, and any subsequent change orders are incorporated herein by reference.
_____ Except for the purpose of affording protection against any emergency endangering life or property, no modification of the writ ten agreement shall be made except by written instrument, signed by the Contractor, approved by Homeowner, and accepted and dated in writing by City. Change orders may be authorized for necessary work items that were initially overlooked or which could not be determined until the course of the rehabilitation or reconstruction work had already begun. Change orders must be requested prior to commencement of the proposed changed work in order for such costs to be reimbursable. _____ Homeowners or Contractors with concerns about the administration or operation of the Housing Rehabilitation Program should communicate these concerns to the City, If concerns cannot be negotiated or resolved successfully between the parties, they may file an appeal with the (“INSERT APPROPRIATE LOCAL AUTHORITY”).
_____ Homeowner agrees to abide by the HOME regulations as set forth in 24 CFR Part 92 which is incorporated as a part of this agreement by reference.

By signing below, Homeowner and Contractor acknowledge receipt of this document and understanding of its contents.

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Homeowner Date

Homeowner Date

Contractor Date

Director of Community Development Date

Conflict of Interest

The City of Lynwood will comply with the following conflict of-interest provisions:

1. 24 CFR Parts 84 and 85, and CFR 85.36 and 24 CFR 84.42.

2. Provisions not covered by 24 CFR Parts 84 and 85, set forth in the HOME regulations.

Additionally, the HOME regulations include conflict of interest provisions for nonprofit, for- profit owners/developers/sponsors and CHDOs.

3. no employee, officer, agent of the city shall participate in the selection, award or administration of a contract supported by HOME if a conflict -of interest, eith er real or apparent, would be involved;

4. City employees, officers and agents not accept gratuities, favors or anything of monetary value from contractors, potential contractors or parties to sub-agreements; and

5. Enforce provisions for penalties, sanctions or other disciplinary actions for violations of standards.

6. no person who exercises or has exercised any functions or responsibilities with respect to HOME activities or who is in a position to participate in decisions or gain inside information:

a. May obt ain a financial interest or benefit from a HOME activity; or the City of Lynwood HOME Program Operations;

b. Have an interest in any contract, subcontract, or agreement for themselves or for persons with business or family ties.

NOTE: This requirement applies to covered persons during their tenure and for one year after leaving the Recipient entity.

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7. Include the conflict-of-interest provision in written agreements and other documents with owners, developers, and sponsors.

8. Monitoring of projects will include necessary actions to ensure that the conflict of interest provision is adhered to.

HOME Provisions for Nonprofit and For-Profit Owners, Developers, CHDOs, and Sponsors

The City of Lynwood will comply with the HOME Final Rule that includes a confli ct-of-interest provision applicable to for -profit and nonprofit owners, developers, and sponsors of HOME - assisted housing. This provision states that:

1. No owner, developer, or sponsor of HOME -assisted housing, including their officers, employees, agents, c onsultants, or elected or appointed officials, may occupy a HOME - assisted unit in a development.

NOTE: This provision does not apply to:

a. An individual receiving HOME funds to acquire or rehabilitate his/her principal residence, or,

b. An individual living in a HOME-assisted rental housing development where he/she is a project manager or a maintenance worker in that development.

Exceptions: Exceptions to this conflict -of-interest provision (governing owners, developer, and sponsors of HOME-assisted housing) may be granted by the City after obtaining a waiver from HUD on a case-by-case basis based on the following factors as set forth in the regulations:

a. Whether the person receiving the benefit is a member of a group or class of low - income persons intended to be the beneficiaries of assisted housing, and the exception will permit him or her to receive generally the same interests or benefits as are being made available or provided to the group as a whole;

b. Whether the person has withdrawn from his or her fun ctions or responsibilities, or the decision -making process with respect to the specific assisted housing in question;

c. Whether the tenant protection requirements of CFR 92.253 (prohibited lease terms, termination of tenancy and tenant selection) are being observed;

d. Whether the affirmative marketing requirements are being observed and followed; and
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e. Any other factor relevant to the City's determination, including the timing of the requested exception.

Religious Organizations

HOME funds may be provided to primarily religious organizations for any activity, excluding inherently religious activities.

1. As of the September 30, 2003 Final Rule for 24 CFR Part 92, HUD identified regulations for eight programs, including the HOME Program, to eliminate barriers and ensure that these programs are open to all qualified organizations regardless of their religious character.

HOME Investment Trust Fund Account

The HOME Investment Trust Fund Account is the account established by the U.S. Treasury and managed through HUD's Integrated Disbursement and Information System for the Program.

1. Establishment

The Secretary shall establish for each participating jurisdiction a HOME Investment Trust Fund, which shall be an account (or accounts as provided in section 12749(c) of this title) for use solely to invest in affordable housing within the participating jurisdiction’s boundaries or within the boundaries of contiguous jurisdictions in joint projects which serve residents from both jurisdictions in accordance with the provisions of this part.

2. Line of credit

The Secretary shall establish a line of credit in the HOME Investment Trust Fund of each participating jurisdiction, which line of credit shall include:

a. funds allocated or reallocated to the participating jurisdiction under section 12747 of this title, and
b. any payment or repayment made pursuant to section 12749 of this title.

3. Reductions

A participating jurisdiction’s line of credit shall be reduced by:

a. funds drawn from the HOME Investment Trust Fund by the participating jurisdiction, b. funds expiring under subsection (g) of this section, and c. any penalties assessed by the Secretary under section 12754 of this title. 676

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4. Certification

A participating jurisdiction may draw funds from its HOME Investment Trust Fund, but not to exceed the remaining line of credit, only after providing certification that the funds shall be used pursuant to the participating jurisdiction’s app roved housing strategy and in compliance with all requirements of this subchapter. When such certification is received, the Secretary shall immediately disburse such funds in accordance with the form of the assistance determined by the participating jurisdiction.

5. Investment within 15 days

The participating jurisdiction shall, not later than 15 days after funds are drawn from the jurisdiction’s HOME Investment Trust Fund, invest such funds, together with any interest earned thereon, in the affordable housing for which the funds were withdrawn.

6. No interest or fees

The Secretary shall not charge any interest or levy any other fee with regard to funds in a HOME Investment Trust Fund.

7. Expiration of right to draw funds

If any funds becoming available to a participating jurisdiction under this subchapter are not placed under binding commitment to affordable housing within 24 months after the last day of the month in which such funds are deposited in the jurisdiction’s HOME Investment Trust Fund, the juri sdiction’s right to draw such funds from the HOME Investment Trust Fund shall expire. The Secretary shall reduce the line of credit in the participating jurisdiction’s HOME Investment Trust Fund by the expiring amount and shall reallocate the funds by formula in accordance with section 12747(d) of this title.

8. Administrative Provision

The Secretary shall keep each participating jurisdiction informed of the status of its HOME Investment Trust Fund, including the status of amounts under various stages of commitment.

a. In general

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jurisdiction is not a participating jurisdiction when such payment or repayment is made, the amount of such payment or repayment shall be reallocated in accordance with section 12747(d) of this title.

b. Assurance of repayment

Each participating jurisdiction shall enter into an agreement with the Secretary ensuring that funds invested in affordable housing under this part are repayable when the housing no longer qualifies as affordable housing. Any repayment under the previous s entence shall be for deposit in the HOME Investment Trust Fund of the jurisdiction making the investment; except that if such jurisdiction is not a participating jurisdiction when such repayment is made, the amount of such repayment shall be reallocated in accordance with section 12747(d) of this title.

c. Availability

The Secretary shall take such actions as are necessary to ensure that any repayments deposited in a HOME Investment Trust Fund in accordance with this section shall be immediately available to the participating jurisdiction for investment subject to the provisions of this part that apply to funds that are allocated under section 12747 of this title. Actions authorized under the preceding sentence may include authorizing the establishment for a participating jurisdiction of a HOME Investment Trust Fund account outside of the Federal Government that, under arrangements satisfactory to the Secreta ry, shall be used solely to invest in affordable housing within the participating jurisdiction’s boundaries in accordance with the provisions of this subchapter. Such accounts shall be established in such a manner that repayments are not receipts or collections of the Federal Government.

HOME Program Income

Program income is defined as any revenue received by the City directly generated from the use of HOME funds or matching contributions. Program income includes, but is not limited to:

1. Proceeds from the sale or long -term lease of real property acquired, rehabilitated or constructed with HOME funds or matching contributions;

2. Income from the use or rental of real property owned by a Recipient that was acquired, rehabilitated or constructed with HOME fu nds or matching contributions, minus the costs incidental to generating that income;

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3. Payments of principal and interest on loans made with HOME or matching funds, and proceeds from the sale of loans or obligations secured by loans made with HOME or matching contributions;

4. Interest on program income; and

5. Any other interest or return on the investment of HOME and matching funds.

Note: The City of Lynwood requires that all program income is returned to the City.

Pre-Award Costs

With the publication of the Final Rule, the City may incur eligible costs prior to the effective date of its annual HOME Investment Partnership Agreement, subject to certain conditions:

1. Both administrative/planning and project costs may be incurred. Only costs eligible under the HOME Program rules in effect at the time the costs are incurred are included.

2. Expenditures must meet all regulatory requirements, including environmental review regulations.

HOME Program Draws

HOME funds are available on a reimbursement basis only based on documentation of incurring the expense and payment of the expense.

PROCEDURE

1. The City of Lynwood will reimburse funds based upon information submitted by the Recipient. Any expenditures occurring after the effective date of the contractual agreement between the City of Lynwood and the Recipient are eligible for reimbursement.

2. Expenditures must be c onsistent with the approved budget as stated in the contractual agreement between the City of Lynwood and the Recipient. Only eligible expenses will be reimbursed.

3. Payments will be adjusted by the City in accordance with program income balances available in sub-recipient accounts, if applicable.

4. In order to ensure accurate billing and fund management sub -recipients should keep track of the following information for activities funded:

a. Funds budgeted.
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b. Funds received in City of Lynwood.
c. Reimbursements to-date.
d. Funds obligated in the most recent period and to-date. e. Funds expended in the most recent period and to-date. f. Cash on hand (including program income identified as such), if applicable. g. Previous reimbursements requested but not yet received, if applicable.

5. All requests for final reimbursements must be submitted to the Planning and Community Department Division within 15 days after the last date of the contract.

To request reimbursement:

1. The "Reimbursement Request" form must be completed and signed by either the Planning or Community Development Director or another authorized personnel.

2. Provide original invoices for all expenditures to be reimbursed.

3. Payment receipts, copies of checks, and/or all documentation proving that payment has been made prior to requesting reimbursement.

4. For salary reimbursement, time sheets must include total time worked and a breakdown of funding sources covering the salary and benefits associated.

All reimbursements will be made within thirty (30) days of receipt o f the request, if proper documentation has been submitted. Please be advised that the City of Lynwood will not provide reimbursements if quarterly reports have not been submitted within the time limits stated in the contractual agreement between the City of Lynwood and the Recipient.

PART 2: FINANCIAL MANAGEMENT
The City of Lynwood will comply with the following financial management requirements:

Financial Management (2 CFR 200.302)

1. Compliance with Applicable Laws and Award Terms
a. The City will expend and account for all federal awards in accordance with local laws and procedures that govern the City’s own funds. The City’s financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and condit ions of the Federal award, must be sufficient to:
i. Permit the preparation of reports required by the terms and conditions; ii. Track expenditures to establish that funds have been used in accordance with Federal statutes, regulations, and the terms and conditi ons of the Federal award.(see 2 CFR 200.450)
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2. The City’s financial management system must include the following (2 CFR 200.334 – 2 CFR 200.337):
a. Identification of Federal Awards
i. Identification of all Federal awards received and expended and the Federal programs under which they were received.
ii. Federal program and Federal award identification must include, as applicable, the Assistance Listings title and number, Federal award identification number, year the Federal award was issued, and name of the Federal agency or pass-through entity.
b. Financial Reporting Accuracy
i. Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements in 2 CFR 200.328 and 2 CFR 200.329.
ii. If the City does not maintain its records on an accrual basis and a federal agency or pass-through entity requires reporting on that basis, the City will develop the necessary accrual data using reasonable estimates based on existing documentation, rather than adoptin g a new accrual accounting system.
c. Recordkeeping and Documentation
i. Maintain records that sufficiently identify the amount, source, and expenditure of Federal funds for Federal awards. These records will contain information necessary to identify Federal awards, authorizations, financial obligations, unobligated balances, as well as assets, expenditures, income, and interest. All records will be supported by source documentation. d. Internal Controls and Asset Management
i. Establish and maintain effective control over and accountability for all funds, property, and assets. The City will safeguard all assets and ensure they are used solely for authorized purposes. See 2 CFR 200.303. e. Budgetary Oversight
i. Conduct comparisons of expenditures with budget amounts for each Federal award.
f. Federal Payment
i. Implement written procedures for the drawdown, disbursement, and management of federal funds in compliance with 2 CFR 200.305. g. Cost Allowability Review
i. Apply written procedures for determining the allowability of costs in accordance with subpart E and the terms and conditions of the Federal award

Financial System Overview
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up-to-date and are subject to review upon request. The system must be flexible enough to accommodate applicable laws and regulations, and yet also conform to generally accepted accounting principles (GAAP).

Public agencies must maintain their accounting records in a manner consistent with the Budgeting, Accounting, Reporting System for Counties and Cities, and Other Local Governments (BARS) or equivalent accounting method. In general, a financial system must:
• Provide effective control over and accountability for all funds, property, and other assets. • Identify the source and application of funds for federally funded activities, including verification of the “reasonableness, allowability, and allocability” of costs and that no funds have been used in violation of any restriction or prohibition.
• Report accurate and complete disclosure of financial results in a timely manner. • Develop board approved financial policies; a list of required policies is included in the Funding Award section.

Allowable Costs (2 CFR 200.405)
Costs are only eligible for reimbursement if they meet cost principle standards for allowable, reasonable and allocable.

Allowable:
• Necessary for performance or administration of grant award • Authorized under all pertinent regulations and requirements • Adequately documented, including source documentation • Not charged to any other program; not a duplicate cost

Reasonable:
• Cost is ordinary or typical for the purchase
• Purchase benefits client population Allocable:
• Incurred specifically for the grant award project
• If purchase is for program, rather than project, but can be proportionately prorated • Is necessary for the overall operation of the organization, although a direct relationship to any cost objective cannot be identified
Disallowed Costs
Upon signing the Agreement, the subrecipient assumes responsibility for any audit exceptions or disallowed costs incurred by its own organization or that of its subcontractors. The City will expect payments to be returned if costs are considered disallowed. Disallowed costs are defined when the subrecipient has received payments for expenses or services that are outside the scope of the Agreement, prohibited, or paid for by another source. The Agreement may resume when the disallowed costs are recovered, and the corrective action process has been completed. 682

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Policies Regarding Cash Management

All payments under City of Lynwood’s Federal programs will be on a reimbursement basis, AFTER costs have been incurred. No cash advances will be allowed. Reimbursements will not exceed actual cash outlays
All payments to subrecipients and for in-house activities will be monitored for compliance with federal regulations and applicable provisions of 2 CFR Part 200 (Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards). Prior to payment, subrecipient requests for program funds shall be properly evaluated. The following will be monitored:
a. Bi-weekly employee timesheets
b. Payroll records
c. Cost per capita served
d. Portion of clientele served that is low-income
e. Eligibility of activity
f. Allowable costs
g. Non-Federal funds leveraged (if applicable)
h. Proper allocation of costs to City of Lynwood
Drawdown of federal funds through federal reporting system is subject to review and approval by Finance staff. Variances between expected and actual cash disbursements of federal awards and drawdowns of federal funds are reported to an appropriate level of management.

Since federal funds will only be provided on a reimbursement basis, it is anticipated that no interest earnings will accrue to the City or to subrecipients. In the unlikely event interest earnings on federal funds are accrued, they must be paid back to that federal department.

Program income funds will be generated primarily by housing rehab loan repayments and occasionally, housing development activities. Program income received by the City must be deducted from reimbursement requests before drawing down entitlement grant funds.

The federal financial reporting system is capable of scheduling payments for accounts payable and requests for funds from Treasury that enables the City to avoid a time lapse between draw down of funds and the actual disbursement of funds. Lynwood’s accounting program, shall be reconciled by the following steps:
1) Invoices are received by Finance Department via email, mail, etc. 2) Twice per month, invoices are coded by purchase order accounting number (account 683

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waiting for the money so accounts payable will know where to take it from), where money has been allocated to those activities; codes by stamping invoice with stamp that includes:
vendor number, PO # dollar; after filling out info on stamp, it goes to finance; 3) At the end of the month all expenditures are totaled and drawdowns for the particular activities are reported to the Government agency; Finance Analyst reviews drawdowns for accuracy and compiles data in a spreadsheet
4) One Community Development Grants Consultant inputs drawdowns into IDIS 5) The Director of Finance (or Designee) approves vouchers in federal system Staff will carry out periodic independent evaluation (e.g., by internal audit, top management) of entity cash management, budget and actual results, repayments of excess interest earnings, and federal drawdown.

Procedures for Reflecting Prior Period Adjustments and Accruals

In preparation of the CAPER, City staff review the following reports:
- PR09- Program Income Details by Fiscal Year and Program (report generated by IDIS) - PR26- CDBG Financial Summary Report (report generated by IDIS) - Analysis of CDBG Funds- City of Lynwood’s Sources & Uses of Funds spreadsheet (report generated by the City's Consultant)
Director of Finance or Designee reconciles discrepancies between the IDIS reports and the City's Budget and makes the necessary adjustments in the PR26 report. These adjustments are explained as Notes to the PR26, which is included as an appendix to the CAPER.

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Policy Regarding Rebates, Refunds and Credits to Federally Funded Programs

All rebates, refunds, and credits to HUD CPD programs will be properly reported. Bid bond forfeiture funds that are not offset by additional costs to select another bidder will be credited to HUD CPD programs at their pro-rata share.

Procedures for Evaluating Travel and Training Costs Charged to the HOME Program

All travel and training expenses charged to the HUD programs must be approved by the Community Development Manager or a Department Director. Prior to approval, travel and training expenses are evaluated based on the following criteria:
- Compliance with 2 CFR 200.473 and 2 CFR 200.475
- Applicability/relevance to HOME program goals and objectives - Eligibility under Federal programs
- Within the allocated budget for that program
Procedures for Allocating and Documenting Personnel Costs Charged to HOME Admin Account

1. Personnel costs charged to HUD programs will follow Section 200.430, of 2 CFR 200.

Prior to the beginning of the fiscal year, City of Lynwood Staff and the Community Development Director will evaluate available funding as well as the Admin workload, scope of work and staffing assignments. This evaluation will produce an estimate of staffing needed including percent allocation of each Admin staff member's time dedicated to HUD Programs. These allocation factors will be noted on the employee's action form and transmittal to the City Payroll Department for the affected employee.

Compensation (including salary and benefits, if eligible) will be allocated accordingly to the Admin account.

2. All employees whose compensation is charged to Admin will maintain bi­ weekly timecards documenting the number of hours charged to various programs. Time cards will represent an after-the-fact distribution of the actual activity of each employee and will account for the total activity for which the employee is compensated. Time cards will be signed by the employee and approved by their Supervisor.

3. Admin staff will conduct a quarterly reconciliation to confirm that employee time cards are consistent with actual time charged to HUD-funded programs. If inconsistencies are found, the costs charges to HUD-funded programs will be adjusted. 685

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Procedures for Allocating and Documenting Personnel Costs Charged to HOME Rehab Account

1. Personnel costs charged to the Housing Rehab program will follow Section 200.430, of 2 CFR 200 (including CFDA 14.218 Part Ill)

2. Prior to the beginning of the fiscal year, City of Lynwood staff and the Community Development Director will evaluate available funding as well as the Rehab work loan, scope of work and staffing assignments. This evaluation will produce an estimate of staffing needed including percent allocation of each Rehab staff member's time dedicated to Rehab. These allocation factors will be noted on the employee's action form and transmittal to the City Payroll Department for the affected employee.

Compensation (including salary and benefits) will be allocated accordingly to the Rehab account.

3. All employees whose compensation is charged to Rehab will maintain bi-weekly timecards documenting the number of hours charged to various programs. Time cards will represent an after-the-fact distribution of the actual activity of each employee and will account for the total activity for which the employee is compensated. Time cards will be signed by the employee and approved by their Supervisor.

4. Rehab staff will conduct a quarterly reconciliation to confirm that employee time cards are consistent with actual time charged to Rehab programs. If inconsistencies are found, the costs charged to HUD-Rehab programs will be adjusted.

Procedures for Determining Cost Reasonableness

The City's annual allocation process includes an analysis of the reasonableness of costs charged by subrecipients to the City's CPD Programs. This analysis includes an evaluation of whether costs associated with a proposed service are in accordance with 2 CFR Part 200, Subpart E. Every activity considered by HOME funding is evaluated by a variety of criteria, including:
 Cost per capita served
 Portion of clientele to be served that is low-income or presumed benefit  Eligibility of proposed activity
 Allowability of costs associated with proposed activity  Timeliness of expenditures in prior year(s)
 Severity of need for proposed service
 Number of City of Lynwood residents to be served
 Accessibility of service to be provided to City of Lynwood residents, particularly for 686

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services offered outside of City of Lynwood
 Duplication/uniqueness of service
 Non-HUD funds leveraged
Costs for training and travel are evaluated on a case -by-case basis and consideration of their eligibility, applicability and reasonableness is made before they are charged to the HOME program. HOME Admin staff must approve all training and travel costs charged to the HOME program.

Activities are determined eligible and reasonable for HOME funding if all the criteria identified above are satisfied.

Process for Approval of Subrecipient Reimbursement Requests for Public Services

Based on the terms of the written agreement with the subrecipient, city staff will review reimbursement requests for allowability, eligibility, and reasonableness. All reimbursement requests by public service subrecipients shall include a summary detailing expenses by project budget line item and the amount being charged to the City's HOME program. Where subrecipients serve clients from multiple jurisdictions in Los Angeles County, the City's invoice review procedures include an evaluation that charges to City of Lynwood are pro-rated based upon the actual number of City of Lynwood residents served.

The table below outlines what supporting documentation must accompany reimbursement requests.

COST ITEM SUPPORTING DOCUMENTS
Salaries  Documented payrolls approved by a
responsible official of the organization
 Signed personnel activity reports (timesheets)
summarizing the distribution of activity of each
employee. Timesheets should identify the
amount of time spent on serving City of Lynwood
clients, or directly on the program.
 Refer to 2 CFR Part 200, Subpart E – Cost
Principles (200.430)
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Fringe Benefits  Proof of payment of fringe benefits including health insurance statements, life insurance statements,
etc. Fringe benefits will be calculated as a
percentage of salaries. This percentage may
generally not exceed 30 percent of salaries.

Materials and Supplies  Copies of invoices/receipts
Utilities  Copies of invoices/receipts
Other expenses  Copies of invoices/receipts/billing statements Process for Approval of Reimbursement Requests for Consultant Services

Based on the terms of the written agreement with the contractor, city staff reviews reimbursement requests for allowability, eligibility, and reasonableness. All reimbursement requests by the contractor shall include a summary detailing expenses and the amount being charged to the City's HUD programs.

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The table below outlines what supporting documentation must accompany reimbursement requests.

COST ITEM SUPPORTING DOCUMENTS
Salaries  Requests for reimbursement shall include a summary of the position(s) billed to the contract, the dates
that services were provided, total number of hours
billed by each position per clay, and the hourly billing rate of each position charged to the City of Lynwood
activity.

Materials and Supplies  Copies of invoices/receipts
Other expenses  Copies of invoices/receipts/billing statements

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FINANCIAL REPORTING

In addition to the budgeting, payment processing, and oversight actions described in other sections, the City will undertake the following actions to ensure accurate, current, and complete disclosure of the financial results of HUD-assisted activities in accordance with the financial reporting requirements of the HOME Programs.

FFATA Reports

At the end of each month, the Accounting Manager will report on all awards in excess of $25,000 using the FFATA subaward reporting system (FSRS) in order to comply with the Federal Funding Accountability and Transparency Act of 2006, as amended by the Government Funding Transparency Act of 2008.

Open Balance Review

On a quarterly basis, the Community Development Director, Grants Consultant and Accounting Manager will review the Annual Expenditure Work Plan with IDIS PR 08 to identify slow moving projects. The review will include an assessment of the project’s progress and its effectiveness of meeting its objectives. If a project is not on schedule or not effective, staff will develop a workplan and timeline for corrective actions.

Monthly Reconciliation

At the close of each month, the Accounting Manager will work with the Grants Consultant to reconcile General Ledger expenditures and IDIS drawdowns for all HUD accounts. The information in IDIS, the PR07 Drawdown by Voucher Number, will also be compared to the local Project Report to ensure the IDIS system accurately reflects expenditures and cash balances. All discrepancies will be reported directly to the Finance Director and Community Development Director who will jointly oversee corrective action.

Federal Financial Report

Quarterly, the Grants Consultant will prepare and submit the Federal Financial Report SF-425. The Grant Administrator will take the following steps to reconcile IDIS with the City’s local internal financial records:

STEP 1: DETERMINE DRAWS PER IDIS
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1. From IDIS, generate the PR07 Drawdown by Voucher Number Submitted to LOCCS . Limit the report to the time period in question (i.e. Initial Date: 01/01/2014 and End Date:
06/30/2014 for Q2 of 2014).

2. Import the report into Excel.

3. Filter the report to show Entitlement Draws (EN Fund Type) with a Complete Status.

4. Verify the total amount of Entitlement funds drawn during the quarter by totaling all line items. This is the amount to enter on Line 10a. Cash Receipts of the SF-425.

5. If it is requested by the local HUD field office, the Federal Financial Report attachment can be used to report the amount disbursed from each grant allocation. Sort the PR07 report by the Grant Number field to determine the amount disbursed from each allocation.

STEP 2: DETERMINE EXPENDITURES PER LOCAL SYSTEM

1. From City’s Accounting System, generate the Accounts Payable Invoice Report for the HOME Fund. When selecting the date range, include the three months prior to the quarter in question. The City works on a reimbursement basis, meaning a draw that occurred in the current quarter may have been paid in the previous quarter.

2. For each drawdown listed on the PR07, identify the corresponding record on the Accounts Payable Invoice Report and initial the line item. Please note that it will not always be a one to one relationship. One IDIS draw could represen t several claims and vice versa. To help with the identification process, reference the Voucher for IDIS Drawdown forms processed during the quarter.

3. Verify that each draw has a corresponding claim. If so, enter the same amount from 10a. on line 10b. of t he SF-425 report and enter 0 on line 10c. If there is a discrepancy, report the matter to the the Finance Director for correction.

STEP 3: FILING

1. Complete the remainder of the SF -425 Report and submit it to the local HUD Field Office within 15 days of the close of the quarter.

2. Maintain a copy of the completed and signed SF-425 Report, the PR07 Report, the Accounts Payable Invoice Report, and any notes or related correspondence in a folder labeled Federal Financial Reports.

Policy Regarding Rebates, Refunds and Credits to HUD CPD Programs

All rebates, refunds, and credits to HUD CPD programs will be properly reported. Bid bond forfeiture funds that are not offset by additional costs to select another bidder will be credited to HUD CPD programs at their pro-rata share.
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Procedures for Evaluating Travel and Training Costs Charged to the HOME Program

All travel and training expenses charged to HUD programs must be approved by the Community Development Director or a Department Director. Prior to approval, travel and training expenses are evaluated based on the following criteria:
 Compliance with applicable provisions of 2 CFR Part 200, Subpart E – Cost Principles  Applicability/relevance to HOME program goals and objectives  Eligibility under CPD programs
 Within the allocated budget for that program
Schedule of Federal Expenditures

The Finance Department is responsible for preparing, based on information provided by the Community Development Department, the Schedule of Federal Expenditures (SEFA) as part of the annual auditing process. Regarding HOME, the following procedures will be followed to ensure that the SEFA is reconciled:

1. Department of Finance staff will prepare the SEFA in preparation for the annual audit.

Expenditures shall be determined using the following guidelines:
a. Use the same accounting basis as the City’s Financial Statements. b. Include all expenditures of federal awards for the year, including but not limited to i. transactions associated with grants, cost -reimbursement contracts, cooperative agreements, and direct appropriations;
ii. federal awards received directly from a federal agency and indirectly from a state agency;
iii. disbursement of funds passed through to sub-recipients; iv. receipt of loan proceeds under loan and loan guarantee programs; receipt of federal property and surplus property;
v. receipt and use of program income.
c. List all financial assistance from the same federal agency together on the schedule. d. Within each federal agency section, list all direct awards first followed by indire ct awards.
e. Provide subtotals for programs with the same Catalog of Federal Domestic Assistance (CFDA) number.
f. Provide subtotals for assistance received directly and assistance received indirectly. g. Provide a total for each federal agency.

2. Accounting Manager will provide any and all underlying records, claims, and vouchers needed to verify HOME expenditures and draws.

3. Director of Finance or his designee will review the draft SEFA for:
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a. reported expenditures against information from the Eden system; b. the correct CDFA and agency information is provided, including identification of pass-through entities.
c. that the draft version presents the minimum data elements required by 2 CFR 200 Subpart F.

4. Director of Finance will provide the draft SEFA to the outside auditing firm for review.

5. Director of Finance will work with staff and outside auditing firm to address any errors, omissions or weaknesses.

TIMELINESS REVIEW
Internal Controls

The City of Lynwood internal controls include a combination of procedures, specified job responsibilities, qualified personnel, and records that together create accountability in an organization's financial system and safeguard its cash, property, and other assets. The City' s internal controls make sure that:

1. Resources are used for authorized purposes and in a manner consistent with applicable laws, regulations, and policies,

2. Resources are protected against waste, mismanagement, or loss, and

3. Reliable information on source, amount, and use of resources are secured up-to-date, and recorded.

Additionally, internal controls will ensure that no one individual has authority of an entire financial transaction.

Specifically, that the City has a separation of power for the following three responsibilities:

1. Authorization to execute a transaction,

2. Recording of the transaction, and

3. Custody of assets involved in the transaction. This type of separation of responsibilities will create a system of checks and balances for grant and general organization expenditures.

4. The City will periodically reconcile its financial records to actual assets and liabilities which will safeguard resources as well as detect instances of fraud or misuse.

Record-Keeping

OVERVIEW
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The HOME Program has recordkeeping and reporting requirements to document that HOME funds are used appropriately and that HOME Program objectives are being met.

Under the HOME Program regulations, the City of Lynwood is required to meet certain record - keeping and reporting requirements that are designed to:

a. Ensure consistency with HOME program requirements;
b. Clarify the record retention periods; and
c. Include new records that exercise any of the three new options allowed in the Final Rule (i.e., multi -family refinancing, presum ption of affordability for homebuyer assistance, and locally-established 95 percent of area median purchase price limits).

PROCEDURE

1. The City of Lynwood will maintain records that include:

a. Program records;
b. Project records;
c. CHDO records;
d. Financial records;
e. Program administration records; and
f. Records concerning other Federal requirements.

2. Maintain PROGRAM RECORDS that include:

a. Written agreement with the City of Lynwood and documentation of compliance with the written agreement;
b. A copy of the application originally submitted to the City of Lynwood; c. Forms of assistance used;
d. Procedures for establishing 95 percent of median value;

3. Maintain Project Records that include:

a. Location (with a map),

b. Form of assistance,

c. Number and identification of units or tenants associated with HOME.

d. Source and application of funds;

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e. Compliance with maximum per -unit subsidy limits and subsidy layering guidelines;

f. Compliance with property standards and lead-based paint requirements;

g. Compliance with income-eligibility requirements;

h. For rental projects, compliance with income targeting, affordability and lease requirements;

i. If multi -family or single -family refinancing is provided, compliance with established guidelines and/or requirements;

j. If multi-family new construction, results of the site and neighborhood standards review conducted;

k. For homeownership projects, compliance with maximum property value and affordability requirements; and

l. If pre-award costs, compliance with applicable requirements.

4. Maintain CHDO records that include:

a. Written agreement with the City of Lynwood;

b. Documentation of qualification as a CHDO, including:

i. Documentation of nonprofit status;
ii. Current board list that identifies low-income representation; iii. Documentation of low -income community input (e.g. minutes from community meeting);
iv. Documentation of organizational capacity (e.g. resumes of staff members);

c. Documentation of uses of CHDO set -aside funds, including funds for capacity - building (if applicable); and

d. Current project descriptions.

5. Maintain Financial Records that include:

a. Source and application of funds;

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b. Treasury and local HOME accounts;

c. Source and application of program income, repayments and recaptured funds; and
d. Budget control measures, including periodic account reconciliations.

6. Maintain Program Administration Records that include:

a. Compliance with written agreements;

b. Compliance with applicable uniform administrative requirements; and

c. Inspections, monitoring reviews and audits, and resolution of any findings or concerns.

7. Maintain Documentation Records that include:

a. Equal opportunity and fair housing;

b. Affirmative marketing and minority/women’s business outreach;

c. Environmental review;

d. Acquisition, relocation, displacement, and replacement of housing;

e. Labor standards;

f. Lead-based paint;

g. Conflict-of-interest; and

h. Debarment and suspension.

8. RETAIN RECORDS for a period of five (5) years including:

a. Housing Rehabilitation:

i. General records must be kept for five years after project completion

b. Rental: For rental housing records:

i. General records must be kept for five years after project completion; and 696

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ii. Tenant income, rent and inspection information must be kept for the most recent five years, until five years after the affordability period ends.

c. Homeownership: Homeownership records must be kept for:

i. Five years after project completion; and
ii. For resale/recapture records, five years after the affordability period ends.

d. Written agreements: Generally, all written agreements must be maintained for five years after the agreement ends.

e. Displacement and acquisition : Displacement and acquisition records must be kept for five years after final payment to displacees.

9. ACCESS TO RECORDS

a. Provide citizens and other interested parties with reasonable access to records.

Access will be consistent with applicable state and local laws regarding privacy and obligations of confidentiality.

b. Provide citizens, public agencies and other interested parties with reasonable and timely access to information and records relating to the City's Consolidated Plan and the use of assistance under the programs covered by the Consolidated Plan.

c. Provide access to HUD and the Comptroller General of the United States, or any of their representatives, to any records for auditing, excerpt, or transcrip t purposes.

Reporting Requirements

OVERVIEW

HOME Program regulations require the City of Lynwood to submit an annual report, called the Consolidated Annual Performance and Evaluation Report (CAPER), to HUD within 90 days of the close of City's program year. This is in accordance with the Consolidated Plan regulations at 24 CFR Part 91. The CAPER inco rporates not only HOME Program information, but also the reporting requirements for the Community Development Block Grant (CDBG), Housing Opportunities for Persons with AIDS (HOPWA) and Emergency Shelter Grants (ESG) programs.

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1. The City of Lynwood HOME Program is required to meet certain reporting requirements, which are outlined below, in order to support the City in meeting its annual HOME Program reporting requirements.

2. The CAPER must include:

a. A summary of resources and programmatic accomplishments; and b. The status of actions taken during the year to implement the overall strategy, which includes a self -evaluation of progress during the past year in addressing priority needs and specific objectives.

PROCEDURE

1. The Management Analyst will complete a Semi-Annual Status Report as well as Project Set Up and Completion Reports for all projects.

2. The Management Analyst will complete a Semi-annual Status Report for all open projects.

This report will include, at a minimum, the following sections:

a. Narrative. A narrative section outlining project milestones achieved;

b. Funding. A funding status update including all draws; and

c. Issues/Concerns. The report should outline any issues or concerns that may require the assistance.

3. The Management Analyst will complete a Project Setup and Completion Form with request for retainage payment. The forms used differ by activity (Homeowner Rehab, Rental, and/or Homebuyer).

4. The Management Analyst will enter the data into the IDIS system and report completed projects to HUD.

Monitoring

OVERVIEW

To meet reporting requirements, the City must monitor its HOME Program activities for compliance and document the results.

PROCEDURE

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The Management Analyst will maintain and implement the following:

1. Maintain monitoring reports in each project file.

2. Monitor the HOME Program based on the individual activity.

a. Owner Occupied Projects (Homeowner Rehabilitation and Homebuyer (if applicable): the City will monitor owner occupied projects for principal res idency throughout the affordability period.

b. Rental Projects (if applicable): the City will monitor rental projects for the following factors:

i. Occupancy (income requirements);
ii. HOME Rents; and
iii. Property standards (units must meet HQS.)

HOME PROGRAM RISK ANALYSIS, MONITORING PROCESS, AND PLAN

The Risk Analysis and Monitoring Process

It is the policy of the City of Lynwood HOME Program to monitor all HOME-projects for risk analysis, program compliance, and long -term sustainability. The City’s Monitoring plan will address three HOME components:

1. The structures and infrastructures financed with HOME funds;

2. The actual beneficiaries of HOME program expenditures; and

3. The actual documentation that describes the actions and intentions of program participants (whether subrecipient, developer, or contractor).

PROCEDURE

The City's Monitoring Procedure will include the review of three general areas:

1. Administrative and Financial Monitoring
a. This monitoring will address program compliance and cross-cutting requirements;

2. Program Monitoring
a. This monitoring will address overall HOME program performance;

3. Project Monitoring
This monitoring will address specific HOME project compliance.

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The goal of the City's monitoring process is to conduct a risk analysis to determine which program areas and specific HOME-funded projects should receive intensive monitoring in a given year. While attention will be paid to “higher risk” projects, the HOME Program will, at a minimum, conduct a “desk monitoring review” of all funded HOME projects on an annual basis.

To the greatest degree possible, the City’s monitoring checklists will incorporate the questions and concerns outlined in the CPD Monitoring Handbook 6509.2, Rev -6, Chapter 7 Program exhibits on the following page:

CPD Monitoring Handbook 6509.2, Rev-6, Chapter 7:

Exhibit 7 - 1 HOME Participating Jurisdiction Pre-Monitoring Information Sheet Exhibit 7 - 2 Guide for Review of Overall Management Systems Exhibit 7 - 3 Guide for Review of Homeowner Rehabilitation Projects Exhibit 7 - 4 Guide for Review of Homeowner Rehabilitation Programs Exhibit 7 - 5 Guide for Review of Homebuyer Projects
Exhibit 7 - 6 Guide for Review of Homebuyer Programs
Exhibit 7 - 7 Guide for Review of Rental Projects
Exhibit 7 - 8 Guide for Review of Rental Programs
Exhibit 7 - 11 Guide for Review of Community Housing Development Organization (CHDO) Qualifications and Activities
Exhibit 7 - 12 12 Guide for Review of Community Housing and Development Organization (CHDO) Procedures
Exhibit 7 - 13 Guide for Review of Match Requirements
Exhibit 7 - 14 Guide for Review of Beneficiary Written Agreements Exhibit 7 - 15 Guide for Review of Contractor Written Agreements Exhibit 7 - 16 Guide for Review of Owner, Developer, Sponsor Written Agreements Exhibit 7 - 17 Guide for Review of State Recipient Written Agreements Exhibit 7 - 18 Guide for Review of Subrecipient Written Agreements Exhibit 7 - 19 Guide for Review of Subrecipient Management Exhibit 7 - 20 Guide for Review of Financial Management Attachment: Attachment to Exhibit 7 -20 Reviewer's Guide for Financial Management Review of HOME Participating Jurisdictions (PJs) Exhibit 7 - 21 Guide for Review of Cost Allowability
Exhibit 7 - 22 Guide for Review of Procurement
Exhibit 7 - 23 Guide for Review of Equipment and Equipment Disposition

PROCEDURE

Note: While the City of Lynwood does not operate all HOME program activities, they are listed here in the possibility that the City of Lynwood may decide to operate such in the future.

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A. Timing of HOME Monitoring

It is the policy of City of Lynwood to conduct HOME monitoring as an ongoing process. The City will conduct on-going monitoring in three phases:

1. Initial review, analysis, and feasibility of project eligibility during threshold reviews

2. Monitoring during project development , implementation and operation

3. Monitoring for long-term sustainability and project completion

The on-going monitoring process is outlined in the following graphic:

B. Monitoring Objectives

C. At a minimum, the objectives of the City’s HOME Monitoring process will include the following:

1. Identify and track HOME program and project results;

2. Identify technical assistance needs for HOME, Subrecipient, developer and contractor staff;

3. Ensuring timely and appropriate expenditures of HOME funds;

4. Documenting compliance with all HOM E and federal cross -cutting requirements;

5. Guaranteeing that federal funds are spent on eligible, allowable, and allocable costs; and
Conduct Risk Analysis
Monitoring Plan (Choose
Partners/Programs/Projects)
Conduct Desk and On-Site
MonitoringAnalyze Results/Issue Report
Pass Along Results for Future $
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6. Making programmatic changes as necessary to safeguard the HOME program for the future.

It is the policy of City of Lynwood to guarantee that all HOME program participants, whether Subrecipients, developers, contractors, or other HOME -funded entities, will comply with all HOME monitoring policies and objectives.

D. Risk Assessment Process

The City of Lynwood’s monitoring process is based on risk analysis that attempts to quantify certain factors that can diminish the productivity and compliance of a funded HOME activity. To determine the relative risk of a specific HOME funded activity, the City of Lynwood will use the following HOME Risk factors to help determine those HOME projects and activities that receive both immediate monitoring preference (including on -site visit, greater than normal staff attention) and possible program interventions.

E. HOME Risk Assessment Criteria, City of Lynwood

The City of Lynwood has adopted the following criteria to be used in determining the relative risk of a HOME project or activity is found on the following page.

Subrecipient/Developer or Project Name Date:

Risk Factor Type of Risk Factor Risk Criteria Comments

Project
Complexity
Type of Program Homeowner
Rehab

Rental
CHDO-set-aside
Other (Specify)
Number of units How many?
Number of beneficiaries How many?
Multi-year project Yes or No?
Multi-financed project HOME only?
# of lenders:

Project staff turnover Last year?
Past staff HOME
experience
List projects
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Capacity of
Subrecipient or
Developer
Projects completed Number ________
Current awards $ ______________
Project Completion Est. date
_________

Meeting all timelines Yes or No?
Spending timeliness Yes or No?
Changes in organization Within last year?

Project Capacity
Amount of contract $
Duration of contract # days:

Development Team
findings
Outstanding
findings?

Documentation
Timely Reports Any outstanding?
Audit submissions Always timely?
Any audit
findings?

Project documentation Documents
missing?

Regulatory compliance Outstanding
issues?

Other Concerns
Regulatory Knowledge Yes or no?
Outstanding issues Yes or no?
Beneficiary complaints Yes or no?
General Comments Yes or no?

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EXHIBIT 14 - HOME Project Risk Assessment

F. Monitoring Schedule and Strategy

Based on the risk analysis factors outlined above, the City will conduct HOME monitoring in the following manner:

DESK REVIEWS are conducted throughout the program year as reimbursement requests are submitted and quarterly when status reports are submitted. Desk reviews will include an analysis of all submitted reports, IDIS reports, draw requests and invoices and the risk factors outlined below. When desk reviews trigger “high risk” projects, the City will schedule on -site monitoring. A desk review should pay particular at tention to the HOME application and executed HOME written agreement.

ON-SITE MONITORING will involve a site visit to the project to conduct an on -site document review and a physical assessment of any structural expenditure paid for with HOME funds at commencement of construction, completion of project, or when warranted by risk assessment. The on -site monitoring process with include the following steps and sample formats for letters of notific ation may be found in Exhibit A.

PRE-SITE VISIT PREPA RATION is prepared by HOME staff for the on -site visit by reviewing the following in-house information:

a. HOME funding application
b. HOME written agreement
c. HOME progress reports
d. Draw requests and supporting documentation
e. IDIS reports
f. Any HOME project correspondence
g. Any previous monitoring reports
h. The most recently submitted financial audits

1. Pre-Visit Letter prepared by the HOME staff to the project staff outlining the date, agenda, information to be available, staff to be accessible, and any specific areas that the staff plans to monitor on-site.

2. Monitoring Checklist will be provided by the HOME staff will provide the appropriate project monitoring checklists from Exhibit 16, which will be utilized during the site visit. As necessary, HOME staff will use exhibits f rom the CPD Monitoring Handbook, Exhibit 7, HOME Program.
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3. Conducting the Monitoring Visit

At a minimum, the on-site monitoring visit will consist of the following steps:

1. Entrance conference: to reiterate the purpose and goals of the visit

2. On-site data documentation and research

3. Visits with staff and beneficiaries

4. Exit conference: to present preliminary conclusions and “next steps”

4. Post-site Visit Follow-up

Within two weeks of the exit interview, the HOME monitor will follow -up with the monitoring visit with a follow-up letter that outlines:

a. Projects monitored
b. Monitoring staff who conducted the visit
c. Date(s) of the monitoring visit
d. List of documents reviewed
e. List of individuals interviewed
f. Any conclusions reached from the visit
g. Strengths and weaknesses of the project
h. Any specific areas of non-compliance or findings
i. Suggested corrective actions to “cure” any findings

5. Corrective Actions (if necessary)

The HOME Monitor will establish a date specific for a response to the monitoring letter, for all corrective actions to be completed, and for the City to respond to the corrective actions.

6. Subsequent Follow-up

The City reserves the right to revisit the project to determine compliance and when corrective actions are not undertaken, to use any and all remedies outlined in the HOME written agreement and HUD rules and regulations to enforce compliance.

In the final analysis, the results of City HOME monitoring will be a factor in determining funding in future year’s HOME competition for funding.

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EXHIBIT 15 – Sample Monitoring Visit Letters

NOTICE TO SUBRECIPIENT OR DEVELOPER OF COMPLIANCE REVIEW

(Date)

John Doe
35 Street Road
Lynwood, CA

Dear Mr./Ms. Doe:

Subject: Compliance Review HOME Program

We are planning to conduct a compliance review of your HOME project. This review will cover all aspects of your project administration and operations.

The review will take place on ____________, _________ _____, 20____, at _________a.m. The review will be conducted by ___________________________, our HOME analysts.

It would be appreciated if you and members of your staff could give _____________________ whatever assistance is required to conduct the review. Should timing or scheduling pose a problem, however, ________________________ can be contacted by calling _________________

Sincerely,

Lissette Montoya
HOME Administrator

cc: Community Development Director
City of Lynwood

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SAMPLE COMPLIANCE REVIEW

(Date)

John Doe
35 Street Road
Lynwood, California

Dear Mr./Ms. Doe:

Subject: Compliance Review HOME Program

Reference is made to our letter of ______________________, in which we requested your assistance in our review of compliance under your HOME program. As a result of our review, we have noted the following items which we feel should be brought to your attention. These items are based on our review of __________ projects.

A. Projected Analysis

B. Major Findings

Our review of ___________ projects has revealed the following major problems:

- designated corrective action

Should you have any questions concerning our review, please contact _____________________, _________________ at (____________.

Sincerely,

Lissette Montoya
HOME Administrator

cc: Community Development Director
City of Lynwood

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EXHIBIT 16 – Monitoring Checklists

Questions to be asked/answered:

Yes/No/
Not
Applicable
/Not
Reviewed
Information
Source
Comments
(Attached)

1. Design program, establish goals and objectives,
establish eligibility criteria, and identify tasks to
be accomplished.

2. Establishment of program files including:
a. Contract file
b. Equal opportunity file
c. Applicant file
d. Service recipient file (clients)
e. Financial file (audit, HOME funds by year,
ESPR's etc.) Files for other funding sources,
expenditures.

f. Quarterly Status Report files
g. Correspondence file
h. City Information Memo to Subrecipients
(CIMS) file

i. Monitoring file

3. Solicitation for clients

4. Program delivery

5. Have the types of assistance/services to be
provided been identified?

6. Has a target area been established?

7. Is there a standardized applicant selection
process?

8. Does the organization maintain records on
recipients to include data on ethnicity, female
head of household?

9. Have applicant eligibility criteria been
established using HUD income levels? Other
criteria?

10. Does the organization require a certification of
income eligibility?

11. Other:

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CONSTRUCTION/PUBLIC IMPROVEMENTS CHECKLIST
Questions to be asked/answered: Yes/No/Not
Applicable
Comments
Architectural and/or Engineering (A/E)
A/E solicitation
- RFP, solicitation letter or notice
- Statement of required qualifications
- Ensure professional's eligibility

Are the following documents on file:
- Selection criteria document and/or selection
procedure
- Acceptable review of proposals/qualifications

Contract provisions
- General administrative provisions
- Scope of services
- Method of compensation
- Federal compliance standards provisions

A/E Documents
- Executed A/E contract
- Verification of Qualifications
- Records of payments and supporting
documentation
- Contract amendments, if any
- Correspondence

Bid Document and Bid procedural documents
Copy of bid document on file?

Bid document contents:

Technical bid specifications
Copy of applicable Federal Wage Determination
Schedule
Section 3 requirements and form

Procedural documents on file
Copy of Invitation to bid (or advertisement) on file?
Letter of Bid Opening
Letter of Award or Notice to Proceed

Pre-Construction Conference:

Was a pre-construction conference held? Date?
Attendance list (sign-in sheet)?
Minutes of the pre-construction conference?

Construction Contract:

Is there an executed contract in the file (with signed

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certifications)?
Contract contents
Specification documents (could be Bid Package)
HUD 4010 “Federal Labor Standards Provisions”
Applicable DOL Federal Wage Determination Schedule
(or reference)

Contract contents (continued)
- Records retention clause
- Contract termination clause
- Cost information
- Timetable including payment schedule
- Bonds (Performance, Labor/Materials, etc.)
- Insurance
- Change order policy

Prime Contractor Documents
Are the following Prime Contractor items on file?
- Prime Contractor’s eligibility (verification)
- Contractor’s authorization form on file for payroll
signature?
- Certification of Understanding and Authorization”
for
unauthorized persons to sign payrolls
- Applicable Federal Wage Decisions (if any) Form
HUD-4230A
“Report of Additional Classification and Rate” (if
any)
- Certification for Applicable Fringe Benefit
Payments for non-State/Federal deductions”
(“Other”, if any) signed by
employee
- Section 3 Reports

Payroll Documents:
- Form WH-347 “Certified Payrolls” on file
- Form WH-348 “Statement of Compliance”
(signed)
- Are the payrolls numbered?
- Is there evidence of staff review and initials?

Do the payrolls include:
- Name
- Address (required on first payroll only)
- Social Security Number (required on first payroll
only)

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- Correct classification
- Hourly rates of wages paid
- Daily and weekly number of hours worked
- Deductions made
- Actual wages paid
Is there a correspondence file containing wage
dispute information, violations, and wage
restitution?

Apprentices
Are all apprentices' part of a registered
apprentice/trainee program verified by
documentation?

Do the apprentice/trainee ratios and wage rates
comply with programs?

Employee interviews
Were employee interviews conducted?
Are Form HUD-11 “Employee Interview” on file?
Are forms complete?
Were sufficient employee interviews conducted?
(One per sub-contractor; 10% of classification, etc.,
which are representative of trades and workers.)

Job site inspections
Are there records of job site inspections for required
signage, i.e., EEO posters, wage determination, etc?
Pictures of job site verifying signage and posters?

Project Documents:

Change Orders:
- Are copies of all change orders on file?
- Are change order approval letters on file (or
evidence of approval)?

Construction management documents:
- Payment records?
- Proof of payment (copies of checks, etc.)?
- Milestone records?
- Notice of completion?

Project Completion documents:
- Final Inspection and Acceptance
- Completion of Compliance Files
- Close-out Procedures (if any)
- Completion Letter to HUD

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ENVIRONMENTAL CHECKLIST

Questions to be asked/answered: Yes/No/Not
Applicable/
Not
Reviewed
Information
Source
Comments
(Attached)
Is the project in compliance with federal labor
standards provisions?

Have environmental reviews been cleared?
Has the City and HUD issued formal approval to
proceed?

Is there evidence of compliance with CEQA?
Is the project consistent with Citywide
environmental goals?

Has the project been reviewed for:
- Categorical exclusion?
- Applicability of prior environmental reviews?

Does the environmental review process
include:
- Assessment of project environmental effects?
- Assessment of cumulative impacts?
- Assessment of mitigations?
- Implementation decisions?
- Follow-up monitoring and inspection?

Does the file contain:
- A notice of release of funds?
- A request for release of funds and
certification?
- State and local environmental analysis and
reports?

Is there evidence of compliance with NEPA?

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FINANCIAL/ACCOUNTING CHECKLIST

Questions to be asked/answered: Yes/No/
Not
Applicable
/Not
Reviewed
Information
Source
Comments
(Attached)
Does the organization operate on a basis of:
- Cash
- Accrual

Does the organization maintain:
- A double entry accounting system?
- A general ledger?
A cash receipts journal?
- A cash disbursements journal?
- A payroll ledger?

In the cash journal, is the following included:
- Date?
- Receipt number:
- Cash debit columns?
- Income credit columns?

Do income credit columns (above) identify:
- Organization/city payments?
- Contributions?
- Other income?
- Description?

In cash disbursements journal, is the following
included:
- Date?
- Check number?
- Cash (credit) column?
- Expense account name?
- Description?

Does the General Ledger include:
- Assets?
- Liabilities?
- Fund balances?
- Expenditures?
- Revenues?

Does the Payroll Ledger include:
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- Name?
- Position?
- Social Security Number?
- Payment records, including:

Accrual period?
Gross pay?
Itemized deductions?
Check number?
Does Petty Cash include:
- Record of disbursements?
- Supporting receipts?

Are checks filed numerically?
Are invoices filed by date?
Are invoices filed by vendor name?
Are vouchers filed numerically?
Are timecards filed by date?
Are timecards filed alphabetically?
Are purchase orders on file?
Are ESPRs on file?
Are encumbrances/obligations recorded against
HOME funds?

Do the following seem reasonable and necessary:
- Salaries and related costs?
- Administrative services?
- Contracts?
- Travel expenditures?
- Other administrative costs?

Is there program income?
If program income, is there evidence of:
- Revenue accounts?
- Revenue procedures?

Is program income in accordance with contract?
Are any and all advances maintained in interest -
bearing accounts?

Do financial records allow for the following kinds
of disclosure of financial results:
- Current?
- Accurate?
- Complete?

Is there effective control over funds?
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Is there effective accountability for funds?
Are costs exceeding the budget?
What procedures are used to allow changes to the
original budget?

How effective are the financial management
systems?

Is there fiscal integrity of all financial transactions? Is there a procedure to ensure the timely and
appropriate response to and resolution of audit
findings?

Is there analysis of and explanation for cost
overruns?

Is there analysis of and explanation for high unit
costs?

Is there a need for change in the budget
estimates?

FOR PROJECT ACCOUNTS ONLY:
- Are separate account numbers maintained for
each project activity?
- Can project costs be broken out on a line item
basis?
- Can budget line items be compared against
incurred cost?

Are there regular financial status reports?
Are there appropriate controls for accountability?
Is there an approved budget for the project?
Is there reconciliation of financial data and
quarterly status reports?

Is there program income?
Is there evidence of internal monitoring?
Is source documentation collected prior to any
disbursements?

Are independent audits conducted?

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IDENTIFICATION OF GOALS/ELIGIBLITY CHECKLIST

Questions to be asked/answered: Yes/No/
Not
Applicable
/Not
Reviewed
Information
Source
Comments
(Attached)
Has the organization identified:
- A scope of services?
- The number of people to be served?
- The time period in which the project is to be
completed?
- Its intended client group?
- The number and percentage of persons of
lower/moderate income?

What are the measurable goals of this project?
What are the measurable accomplishments of the
project to date?

What are the reasons for goals not having been
met?

Was a needs assessment conducted?
How adequate was the project proposal?
What are the project's strengths?
What are the project's weaknesses?
Is there evidence of compliance with HOME
primary objectives?

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PROCUREMENT CHECKLIST

Questions to be asked/answered: Yes/No/
Not
Applicable
/Not
Reviewed
Information
Source
Comments
(Attached)
Is there an established method for procurement?
Does the procurement method include:
- Small purchases?
- Competitive sealed bids?
- Competitive negotiation?

Are there bonding and insurance requirements
listed?

Is there a procedure to encourage contracting
with:
- Section 3 businesses
- Small businesses?
- Minority-owned businesses?
- Women-owned businesses?
- Labor surplus area businesses?

Is there evidence of affirmative action?
Have written standards of conduct been
established? If yes, has disciplinary action been
defined?

Is there a procedure to avoid conflict of interest?
Is there a procedure for ensuring no unnecessary
or duplicative purchase?

Is there a clear and accurate description of the
technical requirements in all procurement
documents?

In procuring, is there consideration of:
- Contractor integrity?
- Past performance?
- Financial and technical resources?
- Price and/or cost analysis?
- System for contract administration?

Are there established requirements for
professional services?

Is maximized competition encouraged?
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Are there complete files on all procurements?
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PROJECT MANAGEMENT CHECKLIST
Questions to be asked/answered: Yes/No/
Not
Applicable
/Not
Reviewed
Information
Source
Comments
(Attached)
Has the project schedule been identified?
Is there appropriate separation of HOME and non-
HOME records?

Is there a procedure for procurement?
Is there a procedure for contracting?
Is there maintenance of client files?
Is the project manager sufficiently involved in the
day-to-day operations of the project?

Is the project in compliance with the following
aspects of the contract:
- Operating budget?
- Scope of service?
- Intended beneficiaries
- Method of payment?
- Performance schedule?
- Use of program income?

Is there any evidence of conflict of interest?
Have procedures for relocation been developed?
Have milestones been established?
Does the organization have insurance coverage?
Is there a sufficient number of people on staff?
Does the organization track the project's physical
progress?

Is the organization aware of civil rights
requirements?

Does the organization attend subgrantee
meetings?

What is the organization's capacity to continue to
use HOME funds?

Is there a listing of officers and directors on file?
Is there a proof of the organization's legal
authority?

Does the organization have a policy on the
disposition of HOME-funded property?

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Do the conditions of employment seem
adequate?

Is there compliance with and knowledge of:
- Environmental requirements?
- Historic preservation?
- Hatch Act?
- National Flood Insurance Program?
- Clean Air Act?
- Federal Water Pollution Control Act?
- Lead-based Paint Poisoning Prevention Act?

Is there any evidence for potential delays or
adverse conditions?

What favorable events have occurred throughout
this project?

Is the project manager sufficiently familiar with
HUD's basic requirements?

Are records kept for a minimum of three years?
Is there evidence of lobbying with HOME funds?

REHABILITATION CHECKLIST
Questions to be asked/answered: Yes/No/
Not
Applicable
/Not
Reviewed
Information
Source
Comments
(Attached)
Rehabilitation Program Administration
Is the program design and administration
adequate?

Has a contracting process been established?
Is there a reasonable relationship between
workload and staffing? (e.g., 25 cases per person)

Is there a lump sum agreement in effect?
Is there a plan for minimizing displacement?
- Is this:
- A grant program?
- A direct loan program?
- A leveraged loan program?

Are the following tracking system documents
maintained:

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- Property inspection?
- Loan processing status?
- Approved projects?
- Construction status?
- Record of cases?
Are the procedures and documentation for
ensuring low/mod benefit adequate?

Is there a clear record of administrative costs?
Is there compliance with and knowledge of:
- Environmental requirements?
- Historic preservation?
- National Flood Insurance Program?
- Lead-based Paint Poisoning Prevention Act?

Have the following steps been taken:
1) Establishment of goals and objectives?
2) Program design/procedural requirements
established:
- Eligibility criteria (property, applicant,
types of improvements
- Maximum grant/loan amount
- Contracting requirements
3) Management organization and staffing?
4) Solicitation for clients/preliminary screeni ng
of applicants?
5) Work write-ups, cost estimates and selection
of recipients?
6) Rehabilitation contracting?

Individual Rehabilitation Files and Cases
Do the individual rehabilitation case files include
the following:
- Case activity log?
- Applicant data sheet?
- Title/deed?
- Income verification?
- Property description?
- Occupancy data?
- Tenure?
- Work write-up?
- Executed contracts?
- Change orders?

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- Inspection reports?
- Payment requests?
- Certificate of completion?
- Liens and/or waivers?
Is the following material on file:
- Contract package for rehabilitation projects?
- Notice of acceptance of work?
- Release of lien forms?
- Evidence of historic preservation data on each
property rehabilitated?
- Evidence of flood control insurance for each
property rehabilitated?

Code Enforcement Program Checklist
Is there a Code Enforcement program that
coordinates with the Housing Rehabilitation
Program?

How are code enforcement cases identified?
How are the cases recorded? Categories?
How are closed cases recorded and reported for
HOME?

What is the staffing for the Code Enforcement
Program?

Does the City have a Code Enforcement program
for non -HOME eligible areas? How is it kept
separate?

Integrated Disbursement and Information System (IDIS)

The City of Lynwood is required by HUD to use the IDIS system to accomplish two key objectives:

1. To manage and account for disbursements of HOME funds; and

2. To collect, consolidate and report information regarding HOME Program performance.

The City of Lynwood will implement the following general IDIS procedures:

1. Complete all HOME Program Set-up forms to ensure that all HOME Program requirements have been met, no work shall begin until all doc umentation has been executed and a Notice to Proceed is issued by the City of Lynwood.

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2. Disburse HOME Program funds only when all of the following conditions have been met:

a. Required environmental review process has been satisfactorily completed.

b. Project closing documents are finalized.

c. The City has approved the timing of HOME Program fund disbursements (e.g., how the funds will be disbursed: at the beginning of the project or on a prorated basis, or as final funds are disbursed); and

d. Disburse funds according to the payment details including timeline for reimbursement outlined in the project closing documents, specifically the HOME Written Agreement.

e. Retainage will be released thirty (30) days after the final inspection is approved and upon the City's receipt of pay request and all completion documentation.

3. If any HOME Program funded project has an available balance after development completion and release of retainage, City of Lynwood will de-obligate those funds and reallocate such balance of HOME Program funds to other eligible activities according to City of Lynwood adopted HOME Program allocation process.

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CHAPTER 7: OTHER FEDERAL REQUIREMENTS

The Federal requirements addressed in this chapter are non -discrimination and equal access, employment and contracting, environmental requirements, lead-based paint, and relocation.

While the HOME Program has its own regulations, there are additional cross -cutting federal requirements that must be identified and complied with at the appropriate point in p roject management.

a. Exhibit 17 presents guidance on the impact of these additional requirements on the HOME project; and

b. Exhibit 18 describes how the City may demonstrate compliance with applicable requirements.

EXHIBIT 17: Managing A Project Subject to Other Federal Requirements Requirement Impact on the Project
Environmental review of
activities
A City cannot commit funds to a project until the appropriate level of environmental review is completed and a Release of Funds is received.

Section 3 Construction contracts of $200,000 or more must include language regarding best efforts to include businesses and low-income residents in the project area. This applies to the hiring of additional workers and training them, and using project-area suppliers for materials. The City of Lynwood may set specific goals based on additional requirements set by HUD that may impact how quickly the project can get under construction.

Women/Minority Business
Enterprise
All competitive bidding must include Women and Minority Businesses, including sub-contracts. The City must ensure that these firms have a fair opportunity to participate and current lists of W/MBE firms must be maintained.

Contractor selection The City must check the website at www. sam.gov to determine if a contractor has been suspended or disbarred before awarding HOME funds to any firm . All building projects in excess of $100,000 must be designed by a state-licensed architect and all infrastructure projects in excess of $25,000 must be designed by a state licensed engineer.

Procurement The City's procurement policies specify bidding requirements for construction, including competitive and formal bidding.

Conflict of interest The City need be fully aware of parties involved in a contract and seek legal counsel if there is the potential for real or perceived COI. 725
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Equal Employment
Opportunity
The City must ensure that all construction contracts over $10,000 (including sub -contracts) have language prohibiting employment discrimination based on race, color, religion, sex, or national origin.

Lead Safe Housing
Requirements
(rehab of pre-1978 units)
When there is HOME assistance involving pre-1978 properties, the City must have qualified staff (or hire them for the project) to notify occupants of the hazards of LBP and take the appropriate approach for various activities; qualified staff must be involved in inspections and clearance actions and report preparation.

Cost reasonableness The City must have qualified cost estimators available to assist in bid preparation and contract awards, as well as reviewing payment requests.

Americans with Disabilities
Act (ADA)
The City must make an internal review of its programs and communications to ensure they are accessible to and usable by persons with disabilities. T his may include working with advocacy groups to achieve compliance.

Fair Housing requirements The City must determine if there are under -served populations who are eligible for HOME assistance, and if they are non -English speaking or have literacy challen ges, the agency may work with advocacy groups to translate or otherwise reach these households.

Affirmative Marketing The City must develop and adopt an Affirmative Marketing Plan and ensure that owners of properties with five or more HOME units are aware of the policy and follow it.

Section 504 The City must ensure that specifications for new construction of multifamily dwellings meet the design and construction standards of the Fair Housing Act to make units accessible and the requirements were included in contracts for substantial rehabilitation of buildings with 15 or more units when rehab exceeds 75% of replacement costs.

In other projects, the Recipient should work with the developer/owner to make units adaptable and/or accessible as is financially feasible.

Energy conservation The City must become familiar with the International Energy Conservation Code and include its requirements in all contracts for residential new construction.

Labor requirements,
including Davis-Bacon
Before beginning construc tion or rehab of projects with 12 or more HOME assisted units, the City must obtain the prevailing wages for various building trades must be obtained from the Department of Labor (DOL); someone must be designated to monitor work on site and payrolls; report as required by D-B and related acts.

Uniform Relocation Act
and Section 104(d)
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assistance program must receive the “Notice to Owner” for voluntary acquisitions, and tenant living in units purchased with HOME funds are protected by the URA. If units are demolished or converted with HOME funds, 104(d) may be triggered and appropriate notices and assistance must be provided . Since no one can be forced to move (displaced) without at least 30 days’ notice, a project may not meet a developer’s schedule.

EXHIBIT 18: Documenting Compliance with Other Federal Requirements Requirement Documentation
Environmental review of
activities
Files demonstrate appropriate level of review, notification, requests for release of funds, publications, and dates for commitments and covered activities were not begun until funds were released.

Section 3 To the greatest extent feasible, efforts were made to include businesses and low -income residents in the project area in construction contracts for workers and suppliers; training programs, as appropriate were developed and used to provide opportunities for construction employment.

Women/Minority Business
Enterprise
Files demonstrate that the City followed its policies for reaching out and including MBE/WBE firms in contracts and invitations for bidding work.

Contractor selection File supports selection of contractor(s) who were not on the list of suspended or de-barred contractors
Procurement There is evidence of free and open competition for funds and contracts according to the City of Lynwood policies and program requirements that apply.

Conflict of interest There is no evidence of preferential treatment for developers, beneficiaries, contractors, or suppliers due to relationships to those in decision-making positions.

Equal Employment
Opportunity
Language prohibiting employment discrimination based on race, color, religion, sex, or national origin is included in all construction contracts over $10,000.

Lead Safe Housing
Requirements (rehab of
pre-1978 units)
Appropriate notices and approaches are used for various acti vities; qualified staff is involved in inspections and clearance actions; reports demonstrate a knowledge of rules and compliance.

Cost reasonableness Cost estimates are prepared prior to bids by knowledgeable persons; bidding and payments are within esti mates or documented if they deviated; payment requests are supported by bills, invoices or other documentation.
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Americans with Disabilities
Act (ADA)
Programs were accessible to and usable by persons with disabilities, including removing communications barriers.

Fair Housing requirements Files support outreach to all classes; programs were available to all persons and efforts were made to overcome barriers to participation Affirmative Marketing Files demonstrate that projects with five or more HOME -assisted units were affirmatively marketed by following policies, and records document actions taken.

Section 504 Specifications for new construction of multi-family dwellings met the design and construction standards of the Fair Housing Act to make units ac cessible and requirements were included in contracts for substantial rehabilitation of building with 15 or more units when rehab exceeded 75% of replacement costs. When this threshold was not triggered, to the extent financially feasible, units were made adaptable or accessible.

Energy conservation Drawings and specifications for newly -constructed units must reference the requirements of the International Energy Conservation Code. Structures rated by a certified rater for Energy Star qualifications.

Labor requirements,
including Davis-Bacon
For rehabilitation or new construction of projects with 12 or more HOME assisted units, the prevailing wage must be obtained from the Department of Labor (DOL) and paid for each of the trades; payments must be monitored on site and reported . Wage determination applicable to each project must be included as part of the contract documents.

Uniform Relocation Act and
Section 104(d)
For properties with tenants in occupancy, correct and timely notices and protections were provided and are on file.

Non-Discrimination and Equal Access

No person in the United States shall on the grounds of race, color, national origin, religion, or sex be excluded, denied benefits or subjected to discrimination under any program funded in whole or in part by HOME funds.

The City will take the following measures to ensure non-discriminatory treatment, outreach, and access to program resources. This applies to employment and contracting, as well as to marketing and selection of program participants.

1. Fair Housing and Equal Opportunity

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The City of Lynwood will comply with all of the following Federal laws, executive orders and regulations pertaining to fair housing and equal opportunity as summarized below.

1. Title VI of the Civil Rights Act of 1964, As Amended (42 USC 2000d et seq.): States that no person may be excluded from participation in, denied the benefits of, or subjected to discriminat ion under any program or activity receiving Federal financial assistance on the basis of race, color, or national origin . The regulations implementing the Title VI Civil Rights Act provisions for HUD programs may be found in 24 CFR Part 1.

2. The Fair Housing Act (42 U.S.C. 3601-3620): Prohibits discrimination in the sale or rental of housing, the financing of housing or the provision of brokerage services against any person on the basis of race, color, religion, sex, national origin, handicap or familial status. Furthermore, section 104(b)(2) of the Act requires that each grantee certify to the secretary of HUD that it is affirmatively furthering fair housing. The certification specifically requires grantees to conduct a fair housing analysis, develop a fair housing plan, take appropriate actions to overcome the effects of any impediments identified, and maintain records on the analysis, plan, and actions in this regard. Fair Housing Act implementing regulations for HUD programs may be found in 24 CFR Part 100-115.

3. Equal Opportunity in Housing (Executive Order 11063, as amended by Executive Order 12259): Prohibits discrimination against individuals on the basis of race, color, religion, sex or national origin in the sale, rental, leasing or other disposition of residential property, or in the use or occupancy of housing assisted with Federal funds. Equal Opportunity in Housing regulations may be found in 24 CFR Part 107.

4. Age Discrimination Act of 1975, As Amended (42 U.S.C. 6101): Prohibits age discrimination in programs receiving Federal financial assistance. Age Discrimination Act regulations may be found in 24 CFR Part 146.

2. Affirmative Marketing

In the event that the City of Lynwood implement a housing program using funds with five or more HOME-assisted units, the City will adopt an affirmative marketing plan that that includes procedures and requirements including:

1. Methods for informing the public, owners and potential tenants about fair housing laws and the City's policies (for example: use of the Fair Housing logo, or equal opportunity language);
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2. A description of what owners and/or the City will do to affirmatively market housing assisted with HOME funds;

3. A description of what owners and/or the City will do to inform persons not likely to apply for housing without special outreach

4. Maintenance of record to document actions taken to affirmatively market HOME- assisted units and to assess marketing effectiveness, and

5. A description of how efforts will be assessed and what corrective actions will be taken where requirements are not met.

3. Handicapped Accessibility

The City will adhere to the HOME regulations governing the accessibility of Federally - assisted buildings, facilities, and programs.

Americans with Disabilities Act (42 U.S.C. 12131; 47 U.S.C. 155, 201, 218, and 225) :

Provides comprehensive civil rights to individuals with disabilities in the areas of employment, public accommodations, state and local government service s, and telecommunications. The Act, also referred to as the ADA, also states that discrimination includes the failure to design and construct facilities (built for first occupancy after January 26, 1993) that are accessible to and usable by persons with di sabilities. The ADA also requires the removal of architectural and communication barriers that are structural in nature in existing facilities. Removal must be readily achievable, easily accomplishable, and able to be carried out without much difficulty or expense.

Fair Housing Act : Multi -family dwellings must also meet the design and construction requirements at 24 CFR 100.205, which implement the Fair Housing Act (42 U.S.C. 3601 - 19).

Section 504 : Section 504 of the Rehabilitation Act of 1973 prohibits discrimination in Federally assisted programs on the basis of handicap. Section 504 imposes requirements to ensure that "qualified individuals with handicaps" have access to programs and activities that receive Federal funds. Under Section 504, recipients and subrecipients are defined more broadly than under the HOME program . Section 504 recipients and subrecipients include any entity that receives Federal funding (for example, a subrecipient, or CHDO). The specific requirements under Section 504 are summa rized in Exhibit 19 below:
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EXHIBIT 19
Section 504 Requirements
Removal of Physical Barriers
 For new construction of multi-family projects, 5 percent of the units in the project (but not less than one unit)
must be accessible to individuals with mobility impairments, and an additional 2 percent of the units (but not
less than one units) must be accessibly to individuals with sensory impairments.  The Section 504 definition of substantial rehabilitation multi-family projects includes construction in a project
with 15 or more units for which the rehabilitation costs will be 75 percent or more of the replacement cost.

In such developments, 5 percent of the units in the project (but not less than one unit) must be accessible to individuals with mobility impairments, and an additional 2 percent (but not less than one unit) must be
accessible to individuals with sensory impairments.
 When rehabilitation less extensive than substantial rehabilitation is undertaken, alterations must, to the
maximum extent feasible, make the unit accessible to and usable by individuals with handicaps, until 5 percent
of the units are accessible to people with mobility impairments. Alterations to common spaces must, to the maximum extent feasible, make the project accessible.  Accessible units must be, to the maximum extent feasible, distributed throughout projects and sites, and must be available in a sufficient range of sizes and amenities so as to not limit choice.
 Owners and managers of projects with accessible units must adopt suitable means to assure that
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information regarding the availability of accessible units reaches eligible individuals with handicaps. They also
must take reasonable non -discriminatory steps to maximize use of such units by eligible individuals.
 When an accessible unit becomes vacant, before offering the unit to a non -handicapped individual, the owner/manager should offer the unit: first, to a current occupant of the project requiring the accessibility
feature; and second, to an eligible qualified applicant on the waiting list requiring the accessibility features.
 The usual standards for ensuring compliance with Section 504 are the Uniform Federal Accessibility
Standards (UFAS), although deviations are permitted in specific circumstances.

PROVIDE PROGRAM ACCESSIBILITY
 Individuals with handicaps must be able to find out about, apply for, and participate in Federally
assisted programs or activities.
 Special communication systems may be needed for outreach and ongoing communication
(e.g., Telecommunications Devices for the Deaf (TDD), materials on tape or in Braille, accessible locations for activities and meetings).
 Policies and procedures must be non -discriminatory (e.g., housing providers may not ask people
with handicaps questions not asked of all applicants, screen individuals with handicaps differently or
assess an individual's ability to live independently).

MAKE EMPLOYMENT ACCESSIBLE
 Employers must not discriminate.
 Employers must remove physical and administrative barriers to employment.  Employers must make reasonable accommodations for individuals with known handicaps
(e.g., job restructuring, providing readers or sign interpreters, making facilities accessible).

ADMINISTRATIVE REQUIREMENTS

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 If recipients or subrecipients have 15 or more employees, they must:
 designate a Section 504 Coordinator, and
 notify program participants and employees of non-discrimination policies.  All recipients and subrecipients must conduct self -evaluations of compliance with Section 504.

For any recipient or subrecipient principally involved in housing or social services, all of the activities of the agency – not just those directly receiving Federal assistance – are covered under Section 504.

Contractors and vendors are subject to Sectio n 504 requirements only in the work they do on behalf of a recipient or subrecipient.

The ultimate beneficiary of the Federal assistance is not subject to Section 504 requirements .

Under Section 504, recipients and subrecipients are not required to take actions that create undue financial and administrative burdens or alter the fundamental nature of the program.

Employment and Contractor

The cross -cutting Federal regulations discussed below govern employment and contracting opportunities, including equa l opportunity, labor requirements and contracting/procurement procedures.

1. Equal Opportunity

The City of Lynwood has established an “Affirmative Fair Housing Marketing Plan” to ensure that the allocated HOME Funds promote fair housing and ensures outreach to all potentially eligible households, especially those least likely to apply for assistance.

The City's policy is to provide information and attract eligible persons to available housing without regard to race, color, national origin, sex, religion, familial status (persons with children under 18 years of age, including pregnant women), or disability.

The procedures followed are intended to further the objectives of the Equal Employment Opportunity, Executive Order 11246, as amended and Prohibits discrimination against any employee or applicant for employment because of race, color, religion, sex, or national origin.

Note: Provisions to effectuate this prohibition must be included in all construction contracts exceeding $10,000. Implementing regulations may be found at 41 CFR Part 60. 733
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PROCEDURE

Currently, the City of Lynwood is not administrating a program containing five or more HOME assisted units. However, in the future if will abide by the HOME Final Rule regarding affirmative marketing procedures and requirements apply to rental and homebuyer projects containing five or more HOME-assisted units.

Should the City decided to implement such program it will commit to the goals of affirmative marketing that will be implemented through the following procedures:

1. Providing equal service without regard to race, color, religion, s ex, handicap, familial status, or national origin of any client, customer, or resident of any community;

2. Keeping informed about fair housing laws and practices;

3. Informing clients and customers about their rights and responsibilities under the fair housing laws by providing verbal and written information;

4. Evaluating the effectiveness and compliance of all marketing as it relates to fair housing;

5. Including the Equal Opportunity logo or slogan, and where applicable the accessibility logotype, in all ads, brochures, and written communications to owners and potential tenants;

6. Displaying the HUD’s fair housing posters (at a minimum, English and Spanish versions) in rental offices or other appropriate locations;

7. Soliciting applications for vacant units from persons in the housing market who are least likely to apply for assistance without the benefit of special outreach efforts; working with the local public housing authority and other service and housing agencies to distribute information to a wide and diversified population;

8. Maintaining documentation of all marketing efforts (such as copies of newspaper ads, memos of phone calls, copies of letters).

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9. Maintaining a record of applicants for vacant units with a general profile of the applicant, how the applicant learned of the vacancy, the outcome of the application, and if rejected, why; maintaining this record for two years or through one compliance audit, whichever is the shorter period of time.

ASSESSMENT

In conjunction with the annual on-site compliance reviews, the City of Lynwood will:

1. Review and evaluate records of affirmative marketing efforts (advertisements, flyers, and electronic media spots, etc.);

2. Evaluate outcomes and effectiveness of marketing efforts and make changes where needed.

3. Evaluate whether good faith efforts have attracted a diversified cross -section of the eligible population.

CORRECTIVE ACTIONS

Failure to meet affirmative marketing requirements will result in the following corrective actions:

1. For failure to comply, the City of Lynwood will set a probationary period for compliance, not to exceed six months, during which time the City will provide more specific guidelines for compliance.

2. Further failure to comply with the affirmative marketing requirements may result in the withdrawal of HOME support.

3. Further failure to take appropriate actions to correct discrepancies in affirmative marketing programs may result in steps to recover all invested HOME funds.

Section 3

Section 3 of the Housing and Urban Development Act of 1968 requires that, to the greatest extent feasible, opportunities for training and employment arising from HOME will be provided to low - income persons residing in the program service area. In addition, to the greatest extent feasible, contracts for work (all types) to be performed in connection with HOME will be awarded to business concerns that are located in or owned by persons residing in the program service area. 735
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Minority/Women's Business Enterprise

Under Executive Orders 11625, 12432 and 12138, the City of Lynwood must prescribe procedures acceptable to HUD for a minority outreach program to ensure the inclusion, to the maximum extent possible, of minorities and women, and entities owned by minorities and women, in all contracts (See 24 CFR 85.36(e)).

PROCEDURE

1. The City of Lynwood will commit to support the participation of Lynwood Minority/Women’s Business Enterprises (M/WBE) by establishing a goal to procure contracted goods and services from Lynwood MBE/WBEs.

Davis Bacon Labor Requirements

The City of Lynwood will comply with regulations on wage and labor standards . In the case of Davis-Bacon and the Contract Work Hours and Safety Standards Acts, every contract for the construction of housing (rehabilitation or new) that contains 12 or more units assisted with HOME funds triggers the requirements.

Davis-Bacon and Related Acts (40 USC 276(A)-7)

The Davis-Bacon and Related Acts ensures that mechanics and laborers employed in construction work under Federally assisted contracts are paid wages and fringe benefits equal to those that prevail in the locality where the work is performed. This act also provides for the withholding of funds to ensure compliance, and excludes from the wage requirements apprentices enrolled in bona fide apprenticeship programs.

PROCEDURE

1. The City of Lynwood requires that any contract for the construction of Affordable Housing with 12 or more units will require that all laborers and mechanics who are employed to perform work on any project, or any contractor or construction work which is financed, in whole or in part, with assistance which is received under the Housing and Community Development Act of 1974 shall be paid wages at rates which are not less than those that prevail in the locality for similar construction and shall receive overtime compensation in accordance with the Contract

2. Work Hours and Safety Standards Act.
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3. The contractor and its subcontractors shall also comply with all applicable Federal laws and regulations which pertain to labor standards, including the minimum wage law.

Title I of Housing and Community Development Act of 1974:

The City of Lynwood will not:

1. Discriminate against any employee or applicant for employment on the basis of religion and not limit employment or give preference in employment to persons on the basis of religion; and

2. discriminate against any person applying for such public services on the basis of religion and not limit such services or give preference to persons on the basis of religion; and

3. provide no religious instruction or counseling, conduct no religious worship or services, engage in no religious proselytizing, and exert no other religious influence in the provision of such public services.

Additional information regarding Executive Orders is available by:

 11625 - Prescribing additional arrangements for developing and coordinating a national program for minority business enterprise,
 12432 - Minority business enterprise development, and  12138 - National Women’s Business Enterprise Policy and National Program for  Women’s Business Enterprise.
 http://www.archives.gov/federal_register/codification/executive_order/11625.h tml
 http://www.archives.gov/federal_register/codification/executive_order/12432.h tml
 http://www.usdoj.gov/crt/cor/byagency/sbaeo12138.htm

Contract Work Hours and Safety Standards Act, as amended (40 USC 327-333)

This ACT provides that mechanics and laborers employed on federally assisted construction jobs are paid time and one-half for work in excess of 40 hours per week, and provides for the payment of liquidated damages where violations occur . This act also addresses safe and healthy working conditions.

Copeland (Anti-Kickback) Act (40 USC 276c)

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The Copeland Anti -Kickback Act governs the deductions from paychecks that are a llowable.

Additionally, it makes it a criminal offense to induce anyone employed on a federally assisted project to relinquish any compensation to which he or she is entitled, and requires all contractors to submit weekly payrolls and statements of compliance.

Fair Labor Standards Act of 1938, As Amended (29 USC 201, et. seq.)

The Fair Labor Standards Act establishes the basic minimum wage for all work and requires the payment of overtime at the rate of at least time and one -half. It also requires the payment of wages for the e ntire time that an employee is required or permitted to work, and establishes child labor standards.

Site and Neighborhood Standards

Housing provided through the HOME Program must promote greater choice of housing opportunities. Specific rules are as follows:

1. HOME-provided housing must be suitable from the standpoint of facilitating and furthering full compliance with the Title VI of the Civil Rights Act - 1964, the Fair Housing Act and Executive Order 11063.

2. The Final Rule requires only new construction rental projects to meet site and neighborhood standards from 24 CFR 983.6(b), which places limiting conditions on building in areas of "minority concentration" and that are "racially mixed."

PROCEDURE

1. The City of Lynwood uses project informa tion provided by owners/developers/sponsors/CHDOs to complete the Site and Neighborhood Standards Review form and document compliance with the Site and Neighborhood requirements.

2. The City reserves the right to request additional clarification and material s from owners/developers/sponsors for adequate documentation of compliance.

Lead-Based Paint Safe Housing Rule

24 CFR part 35, subpart J

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On September 15, 1999, HUD issued a new Federal lead -based paint regulation implementing Title X of the Housing and Community Development Act of 1992 . This regulation makes many important changes in the lead -based paint requirements applicable to housing funded through HUD's Community Planning and Development (CPD) programs.

The Lead Safe Housing Rule regulations that apply to rehabilitation activities are found at 24 CFR part 35, subpart J. The rehabilitation regulations distinguish among four approaches depending on the size of the rehabilitation effort. Understanding each approach and how to determine the level of rehabilitation assistance is the first step in deciding what lead safe housing requirements apply to a rehabilitation project . The purpose of the regulation is to identify and address lead - based paint hazards before children are exposed to lead . The regulation is divided into subparts that apply to the HOME program include:

1. Subpart A: Disclosure

2. Subpart B: General Requirements and Definitions

3. Subpart J: Rehabilitation

4. Subpart K: Acquisition, Leasing, Support Services, and Operations

5. Subpart M: Tenant-Based Rental Assistance

6. Subpart R: Methods and Standards for Lead-Based Paint Hazard Evaluation and Reduction

On April 22, 2008, the EPA issued the Renovation, Repair, and Painting Rule (RRP) a rule requiring the use of lead -safe practices and other actions aimed at preventing lead poisoning. Under the rule, beginning April 2010, contractors performing renovation, repair and painting projects that disturb lead-based paint in homes, child care fac ilities, and schools built before 1978 must be certified and must follow specific work practices to prevent lead contamination. Until that time, HUD and EPA recommend that anyone performing renovation, repair, and painting projects that disturb lead-based paint in pre-1978 homes, child care facilities and schools follow lead-safe work practices.

There are some differences between the EPA RRP Rule and the HUD Lead Safe Housing Rule . A major difference is that the LSHR requires clearance examinations . All housing receiving federal assistance must still comply with the LSHR.

All contractors should follow these three simple procedures:

1. Contain the work area.

2. Minimize dust.

3. Clean up thoroughly.

From December 2008, the rule has required that contractors performing renovation, repair and painting projects that disturb lead -based paint provide to owners and occupants of child care facilities and to parents and guardians of children under age six tha t attend child care facilities built prior to 1978 the lead hazard information pamphlet Renovate Right: Important Lead Hazard Information for Families, Child Care Providers, and Schools (PDF) | en espagnol (PDF). 739
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Starting on April 22, 2010, the rule will affect paid renovators who work in pre-1978 housing and child-occupied facilities, including:
 Renovation contractors
 Maintenance workers in multi-family housing
 Painters and other specialty trades.

Under the rule, child-occupied facilities are defined as residential, public, or commercial buildings where children under age six are present on a re gular basis. The requirements apply to renovation, repair, or painting activities. The rule does not apply to minor maintenance or repair activities where less than six square feet of lead-based paint is disturbed in a room or where less than 20 square feet of lead-based paint is disturbed on the exterior. Window replacement is not minor maintenance or repair.

For additional guidance, refer to: EPA's Lead Renovation, Repair, and Painting Program Rule.

Additional information on becoming an EPA -certified renovator or training provider is available on EPA's Renovator and Trainer Tool Box site.

HUD defines four approaches to address lead-based paint in HOME funded Projects. The Exhibit 20 on the following page details each approach.

EXHIBIT 20

APPROACHES TO IMPLEMENTING LEAD HAZARD EVALUATION AND REDUCTION APPROACH 1 - DO NO HARM

LEAD HAZARD

EVALUATION
 Paint testing
performed on
surfaces to be
disturbed.

LEAD HAZARD REDUCTION
 Repair surfaces
disturbed during
work.
 Safe work practices
used
when working on areas
identified as
lead-based paint.
 Clearance performed.

Options
 Presume lead-based paint is
present and use safe work
practices on all surfaces being
disturbed.

APPROACH 2 - IDENTIFY AND STABILIZE DETERIORATED PAINT

LEAD HAZARD

EVALUATION
 Visual assessment
performed

LEAD HAZARD REDUCTION
 Paint stabilization of
identified deteriorated
paint.

Options
 Perform paint testing on
deteriorated paint. Safe work
practice requirements only
apply to lead-based paint.
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to identify
deteriorated paint.

 Safe work practices
used.
 Clearance performed.

APPROACH 3 - IDENTIFY AND CONTROL LEAD HAZARDS

LEAD HAZARD

EVALUATION
 Paint testing
performed on
surfaces
to be disturbed.
 Risk assessment
performed
on entire dwelling.

LEAD HAZARD REDUCTION
 Interim controls
performed on
identified hazards.
 Safe work practices
used.
 Clearance performed
Options
 Presume lead based paint
and/or lead based paint hazards
are
present and perform standard
treatments.

APPROACH 4 - IDENTIFY AND ABATE LEAD HAZARDS

LEAD HAZARD

EVALUATION
 Paint testing
performed
on surfaces to be
disturbed.
 Risk assessment
performed on
entire dwelling.

LEAD HAZARD REDUCTION
 Abatement performed
on
identified hazards.
 Interim controls
performed on
identified hazards on
the exterior
that are not disturbed
by Rehabilitation.
 Safe work practices
used.
 Clearance performed.

Options
 Presume lead-based paint and/or
lead-based paint hazards are
present
and perform abatement on all
applicable surfaces –deteriorated,
impact, friction, chewable
surfaces, and
surfaces to be disturbed.

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GLOSSARY OF HOME TERMS

Action Plan: The one -year portion of the Consolidated Plan (see below). It includes the PJ’s annual application for HOME funds.

Adjusted Income: Adjusted income is annual (gross) income reduced by deductions for dependents, elderly households, medical expenses, handicap assistance expense s and childcare (these are the same adjustment factors used by the Section 8 Program).

Affordability: The requirements of the HOME Program that relate to the cost of housing both at initial occupancy and over established timeframes, as prescribed in the HOME Final Rule.

Affordability requirements vary depending upon the nature of the HOME assisted activity (i.e., homeownership or rental housing).

Annual Income: The HOME Program allows the use of one of three definitions of annual income:

Section 8 annual income; annual income as reported on the U.S. Census long form; and adjusted gross income as defined for reporting on IRS Form 1040.

Applicant(s): A person or persons who appear on the title to the property and that apply for a loan under the HOMEOWNER REHABILITATION ACTIVITIES . All persons appearing on the title must agree to apply and execute all documents required.

Borrower: A person or persons who appear on the title to the property, signs the Written Agreement with the City and signs the loan documents with the City, thereby becoming legally responsible for any repayment of the HOMEOWNER REHABILITATION ACTIVITIES loan.

Building and Safety Code : The City’s residential codes and ordinances pertaining to housing construction, land use, occupancy and maintenance of existing residential properties which are applicable to the property through Code Enforcement action.

Building In spector: The City employee(s) responsible for inspection(s) of structural, electrical, plumbing, improvements. The inspector assures compliance of work to applicable Building and Safety Codes.

Building Division: The Department of the City responsible for issuance of building permits.

Building Permit : An authorization by the Building Division to commence building repairs or improvements on a specific property; Permits must be issued for most home improvements, including, but not limited to, roofing, electr ical, plumbing, structural changes, and foundations.

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California Preliminary Notice: A notice sent to the owner of the dwelling unit by any person or supplier providing labor, services, equipment, or materials for the rehabilitation work. The notice is sent in the event that the primary contractor is listing, as security, the property being rehabilitated with the person or supplier sending notice.

Commitment: Commitment means one of three things: (1) The PJ has executed a legally binding agreement with a State recipient, subrecipient, or contractor to use a specific amount of HOME funds to produce affordable housing or provide tenant -based rental assistance; or (2) has executed a written agreement reserving a specific amount of funds for a CHDO; or (3) has met requirements to commit to a specific local project as defined below.

Commitment to a specific local project: Commitment to a specific local project means that a legally binding agreement was executed meeting one of the following sets of requirements: (1) For rehabilitation or new construction projects, the PJ (or other entity) and the project owner will execute an agreement for an identifiable project under which construction can reasonably be expected to start within 12 months of the agreement date. If the project is owned by the PJ, the project must be set up in the disbursement and information system and construction reasonably expected to start within 12 months of the set -up date. (2) If the project consists of acquisition of standard housing by the PJ, the agreement must be a binding contract for the sale of an identifiable property and the property title must be transferred to the PJ (or other entity) within six months of the date of the contract. (3) If the project involves the acquisition of standard housing and the PJ is providing HOME funds to a purchaser, under the agreement, the title of the property must be transferred to the purchaser within six months of the agreement date.

Community Housing Development Organization (CHDO): A private, nonprofit organization that meets a series of qualifications prescribed in the HOME regulations at 24 CFR Part 92.2. A participating jurisdiction must award at least 15 percent of its annual HOME allocation to CHDOs.

Consolidated Plan: A plan prepared in accordance with the requirements set forth in 24 CFR Part 91 which describes community needs, resources, priorities and proposed activities to be undertaken under certain HUD programs, including HOME.

Consortium: Geographically contiguous units of general local government consolidated to be in a single unit of general local government for HOME Program purposes when certain requirements are met.

Contractor: An eligible contractor is a general contractor licensed in compliance with Federal, State, and City regulations to do the necessary housing rehabilitation work. No contractor may be utilized who has been disbarred or suspended by order of the City, State or Federal 743
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Government. The City permits contractors to apply to the City for eligibility determination at any time.

Deed of Trust : The legal document which secures the loan with the property that is being rehabilitated. The Deed of Trust is for the same amount as the loan and must be signed by the borrower in the presence of a public notary.

Development: A site or an entire building or two (2) or more buildings, together with the site or sites on which the building is located, that are under common ownership, manageme nt and financing and are to be assisted with HOME Program funds-under commitment by the owner-as a single undertaking.

Development Fees: Compensation to the developer for developing the property, includes overhead and profit, consult/processing agent fees, project administration, the value of personal guarantees and a portion of any reserves determined by the housing credit agency to be in excess of industry norms.

Draw-Down: The process of requesting and receiving HOME funds. PJs and authorized state recipients draw down funds from a line of credit established by HUD.

Eligible Improvements: All improvements required to bring the property up to City Codes and the City’s Rehabilitation Standard

Equity: The value of a property less the amount of outstanding debt on it.

Final Rule: The Final HOME Rule was published at 24 CFR Part 92 on September 16, 1996 and became effective on October 16, 1996. It was amended on October 22, 1997.

Financing Plan: The proposed financing for a project.

General Partner: A partner who is liable and responsible for completing a project as proposed, managing the partnership and guaranteeing funding required to complete the project. A general partner oversees construction, leasing, and property management; maintains the books a nd records of the partnership; and submits periodic reports to the limited partners on the project’s financial status.

General Partnership: A form of ownership in which all partners participate materially in the partnership’s operations and share liability.

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Group Home: Housing occupied by two or more single persons or families consisting of common space and/or facilities for group use by the occupants of the unit, and (except in the case of shared one-bedroom units) separate private space for each family.

HOME-Assisted Units: A term that refers to the units within a HOME project for which rent, occupancy, and/or resale restrictions apply. The number of units designated as HOME -assisted affects the maximum HOME subsidies that may be provided to a project.

HOME Funds: All appropriations for the HOME Program, plus all repayments and interest or other returns on the investment of these funds.

HOME Investment Trust Fund: The term given to the two accounts - one at the Federal level and one at the local level - that "hold" the PJ’s HOME funds. The Federal HOME Investment Trust Account is the U.S. Treasury account for each participating jurisdiction. The local HOME Investment Trust Fund account includes repayments of HOME funds, matching contributions and payment of interest or other returns on investment.

Housing Investment Partnerships Act (“HOME Program”): The act that created a formula-based allocation program intended to support state and local affordable housing programs. The goal of the program is to incr ease the supply of affordable rental and ownership housing through acquisition, construction, reconstruction, and moderate or rehabilitation activities (Title I, National Affordable Housing Act of 1990).

HUD: U.S. Department of Housing and Urban Development.

Household: A household includes all persons living in the unit at the property at the time of application, except persons who are paid caregivers of elderly or disabled individuals.

Household Income Verification : The process used to determine gross household income, including Applicant submittal of most current income tax returns; employer verification of wages; W-2 Forms; Social Security verification, profit/loss statements, etc.

Inspection Card : Card posted at the site of rehabilitation once building permits are issued.

Building Inspector(s) sign off various inspections on Card as job progresses.

Insular Areas: Guam, the Northern Mariana Islands, the United States Virgin Islands and American Samoa.

Interest Subsidy: The amount of subsidy required to reduce the interest rate on a loan to a below- market rate over the term of the loan.
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Jurisdiction: A state or unit of general local government.

Limited Partner: A passive investor in a limited partnership who, in exchange for contributing equity to the project, receives a pro rata share of cash flow and tax benefits and the right to approve the sale or refinancing of the property and removal of the general partner in the event of gross negligence or breach of contract.

Limited Partnership: An ownership vehicle comprising limited and general partners that allows for central management but has no tax liability, instead passing tax benefits through to its limited and general partners.

Loan Disbursement: The principal amount of the loan which is paid out to the Applicant as the rehabilitation work progresses; The disbursement may be in accordance with a contractual agreement between Applicant and contractor. Prior to disbursement, the work accomplished must be in accordance with the scope of work as detailed in the work the work write -up. If inspection by the Building Division is required for the particular rehabilitation item, the inspector must sign off for said work prior to disbursement.

Loan Documents: All forms relevant to the actual executi on of the loan, including a Three Day Right of Recession Notice, Truth-ln-Lending Form, Promissory Note, and Deed of Trust.

Low-Income Families: Families whose annual incomes do not exceed 80 percent of the median income for the area (adjusted for family size).

Match: Match is the PJ’s contribution to the HOME Program – the local, non-Federal contribution to the partnership. The PJ’s match contribution must equal not less than 25 percent of the HOME funds drawn down for projects in that fiscal year.

New Construction: The creation of new dwelling units. Any project which includes the creation of new or additional dwelling units in an existing structure is considered new construction.

Participating Jurisdiction (PJ): The term given to any state, local government or consortium that has been designated by HUD to administer a HOME Program. HUD designation as a PJ occurs if a state or local government meets the funding thresholds, notifies HUD that they intend to participate in the program, and has a HUD-approved Consolidated Plan.

Program Income: Gross income received by the PJ, state recipient, or a subrecipient directly generated from the use of HOME funds or matching contributions.

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Project: A site or an entire building or two or more buildings, togethe r with the site or sites on which the building or buildings is located, that are under common ownership, management and financing and are to be assisted with HOME funds, under a commitment by the owner, as a single undertaking. The HOME Final Rule eliminated the requirement that all buildings fall within a four- block radius.

Project completion: All necessary title transfer requirements and construction work have been performed; the project complies with all HOME requirements; the final drawdown has been disbursed for the project; and the project completion information has been entered in the disbursement and information system established by HUD.

Promissory Note: A form, part of the loan documents, which is the borrower's agreement to pay back the amount borrowed in accordance with the established terms of the loan. The Promissory Note must be signed by all persons on the Title to the Property.

Property Rehabilitation Standards: A standard established by the City to ensure that the housing rehabilitated under HOMEOWNER REHABILITATION ACTIVITIES meets or exceeds

Recapture: Repayment of HOME funds to the PJ from a homebuyer project during the period of affordability.

Reconstruction (also rehabilitation): The rebuilding, on the same lot, of housing standing on a site at the time of project commitment. The number of housing units on the lot may not be changed as part of the reconstruction project, but the number of rooms per unit may change.

Reconstruction also includes replacing an existing substandard unit of manufactured housing with a new or standard unit of manufactured housing.

Rehabilitation Specialist: The person who conducts inspections and produces work write -ups and cost estimates.

Rehabilitation Contract : A legally binding, standardized form which spells out, in detail, the entire scope of work, specific quality, brands of materials, and all other data pertinent to the rehabilitation of the property. The Contract must be signed by both Contractor and Applicant.

Rehabilitation Cost: The total cost of repairs and improvements and other costs for rehabilitation to be incurred by the Applicant that may be included in a Loan.

Right of Recession: The borrower's right within a three-working day period from the date of loan settlement to rescind the entire loan transaction.

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Recipient: Any entity under contract with the City to undertake activities funded by the City's HOME Program.

Restrictive Covenant: A limitation placed on a property, which is recorded and attached to the deed, thereby passing to subsequent owners.

Section 8 Tenant -Based Rental Assistance Program: A federal program that provides rental assistance to low-income families who are unable to afford market rents. Assistance is provided in the form of vouchers.

Single-Room Occupancy (S RO): Housing consisting of single -room dwelling units that is the primary residence of its occupant or occupants. The unit must contain food preparation and/or sanitary facilities if the project involves new construction, conversion of non -residential space, or reconstruction. If the units do not contain sanitary facilities, the building must contain sanitary facilities shared by the tenants.

Soft Costs: Development costs exclusive of the cost of acquisition, site improvements, construction, and contingencies.

Soft Second Mortgage: A loan provided by public and nonprofit lenders at below market interest rates and with flexible repayment terms, using as collateral a second mortgage on the project property, to fill a financial gap for a project serving a pub lic purpose (for instance, affordable housing.)

Subrecipient: A public agency or nonprofit organization selected by a PJ to administer all or a portion of the PJ’s HOME Program. A public agency or nonprofit organization that receives HOME funds solely as a developer or owner of housing is not a subrecipient.

Substantial Rehabilitation: The cost of a rehabilitation project that costs more than $25,000.

Surplus Cash (Net Operating Income (NOI)): The operating income derived by the project owner from development cash flow that exceeds 1st mortgage loan payments and the following operating expenses: property management fee, grounds maintenance, accounting services, amounts deposited into a replacement reserve account, legal services, taxes and insurance and utility expenses, each specifically related to the development. Developer fees and depreciation of assets may not be included in calculating expenses.

Syndicates: Individuals or firms who arrange for the sale of ownership shares in a project to raise equity from investors.

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Targeting: Requirements of the HOME Program relating to the income or other characteristics of households that may occupy HOME-assisted units.

Total Development Cost (TDC): The sum of all costs for site acquisition, relocation, de molition, construction and equipment, interest and carrying charges.

Truth in Lending Statement : The form included in the loan document package which details all terms of the Loan. Applicant must sign receipt of said form.

Very-Low-Income Families: Families whose annual incomes do not exceed 50 percent of the median income for the area (adjusted for family size).

Work Write-up: A form to be completed by a Construction Manager outlining a complete and suggested scope of work to be performed for the rehabilitation of the property

Written Agreement : The Written Agreement defines the terms and conditions of the HOMEOWNER REHABILITATION ACTIVITIES Loan to the Applicant . The Written Agreement is executed prior to the Applicant engaging a Contractor to complete the defined rehabilitation.

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CITY OF LYNWOOD LIST OF FORMS

CHAPTER 3: CHDO FORMS

CHDO Application
CHDO Certification Checklist
CHDO Recertification Checklist
CHDO Determination Worksheet
CHDO Pre-Qualifying Letter

CHAPTER 4: HOMEOWNER HOUSING PROGRAM FORMS

Homeowner Rehabilitation Application
Homeowner Loan Application
Owner/Contractor Agreement
Agreement between City and homeowner
Preconstruction Conference Record
Notice to Proceed
Work Write up Template for the HOME Program
Home Inspection Checklist
Certifications – plumbing, electrical, HVAC, Release of Liens, and final inspection Verification of Employment
Section 3 Reporting Forms
Certifications – plumbing, electrical, HVAC, Release of Liens, and final inspection Lynwood Written Rehabilitation Standards
Cost Allocation and Subsidy Layering Analysis

CHAPTER 6: CONSTRUCTION MANAGEMENT FORMS

Sample Bid Package
Sample Advertisement for Bids
Bid Tabulation Sheet
Preconstruction Conference Agenda and Report
Notice to Proceed
Written Change Order
Punch List(s)
Certificate(s) of Final Completion
Final Contractor Estimate(s)
Release of Lien Form for each contractor
Verification of Contractor Eligibility
750
City of Lynwood
HOME Investment Partnership Program
Policies and Procedures Manual
DRAFT Page 274

CHAPTER 6: ENVIRONMENTAL REVIEW FORMS

Certification of Exemption for HUD funded projects
Certification of Categorical Exclusion (not subject to 58.5) Statutory Checklist
Instructions for Completing the Statutory Worksheet
Compliance Documentation Checklist (58.6)
Environmental Assessment
Public Notice – Notice of Intent to Request Release of Funds Combined Public Notice – Finding of No Significant Impact and Notice of Intent to Request Release of Funds
Request for Release of Funds and Certification (HUD form 7015.15) Authority to Use Grant Funds (HUD form 7015.16)
Instructions for Completing HUD form 1015.15
Insurance Coverage (Flood)
Deficiency Notice

CHAPTER 7: MONITORING

Monitoring Checklist
Compliance Review Letter
Sample Monitoring Visit Letter

CHAPTER 7: PROGRAM ADMINISTRATION AND MANAGEMENT FORMS

IDIS Activity Set Up Forms
IDIS Activity Completion Forms
Homeowner Rehab Set Up and Completion Form HOME Program

751
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HOME Investment Partnership Program
Policies and Procedures Manual
DRAFT Page 275

CITY OF LYNWOOD LIST OF EXHIBITS

EXHIBIT 1 MINIMUM PROPERTY STANDARDS BY ACTIVITY TYPE
EXHIBIT 2 AFFORDABILITY PERIODS
EXHIBIT 3 CHDO DETERMINATION WORKSHEET/APPLICANT INFORMATION EXHIBIT 4 HOME-ELIGIBLE HOMEOWNER REHABILITATION COSTS
EXHIBIT 5 OTHER FEDERAL REQUIREMENTS
EXHIBIT 6 SUMMARY OF HOMEOWNER REHABILITATION RULES AND HOW TO DOCUMENT EXHIBIT 7 CITY OF LYNWOOD STAFFING PLAN
EXHIBIT 8 CITY OF LYNWOOD REHABILITATION STANDARDS
EXHIBIT 9 TIMING AND PURPOSE OF PROPERTY INSPECTIONS
EXHIBIT 10 REHABILITATION OF OWNER-OCCUPIED UNITS
EXHIBIT 11 SUMMARY OF ENVIRONMENTAL REVIEW ACTION BY ACTIVITY EXHIBIT 12 WRITTEN AGREEMENT REQUIRED PROVISIONS
EXHIBIT 13 HOME PROGRAM AGREEMENT/APPLICATION
EXHIBIT 14 HOME PROJECT RISK ASSESSMENT
EXHIBIT 15 SAMPLE MONITORING VISIT LETTERS
EXHIBIT 16 MONITORING CHECKLISTS
EXHIBIT 17 MANAGING A PROJECT SUBJECT TO OTHER FEDERAL REQUIREMENTS EXHIBIT 18 DOCUMENTING COMPLIANCE WITH OTHER FEDERAL REQUIREMENTS EXHIBIT 19 SECTION 504 REQUIREMENTS
EXHIBIT 20 APPROACHES TO IMPLEMENTING LEAD HAZARD EVALUATION AND REDUCTION 752
753
754
755
756

AGENDA STAFF REPORT

DATE:

July
1, 2025
TO:

Honorable Mayor and Members of the City Council
APPROVED BY:

Julian Lee, City Manager
PREPARED BY:

Harry Wong, Director of Finance & Administration
SUBJECT:

LEVY AND COLLECTION OF DELINQUENT REFUSE CHARGES ON
THE PROPERTY TAX ROLL FOR FISCAL YEAR 2025-2026 AGAINST

SINGLE FAMILY RESIDENTIAL PARCELS (UP TO THREE UNITS)
Agenda Item # 8.2.

Recommendation:

Staff recommends that the City Council open the public hearing, after hearing comments and protests, to close the public hearing and adopt the attached resolution entitled: “A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AUTHORIZING AND

DIRECTING THE COUNTY ASSESSOR TO LEVY AND COLLECT DELINQUENT REFUSE

BILLS AGAINST SINGLE FAMILY RESIDENTIAL PARCELS (UP TO THREE UNITS) FOR FISCAL YEAR 2025-2026 ON THE COUNTY TAX ROLL AND DIRECTING THE COUNTY

ASSESSOR TO INCLUDE RESIDENTIAL REFUSE BILLS FROM WASTE RESOURCES, INC. (WRI) AS A SPECIAL ASSESSMENT TO BE COLLECTED AT THE SAME TIME AND IN THE SAME MANNER AS COUNTY TAXES FOR FISCAL YEAR 2025-2026” Background:

Section 38790.1 of the California Government Code authorizes cities to collect delinquent garbage fees or charges via a special assessment to be collected with county taxes.

Furthermore, Health and Safety Code 5473 allows any entity, by a two-thirds vote of the members of the legislative body, to elect to have refuse and garbage collection on the property tax roll. Various cities and counties have placed delinquent charges on the property tax roll as a mechanism for collection. The Lynwood Municipal Code Section 9-1 supports this mechanism of collection for delinquent garbage and rubbish charges.

City Council City Council Regular Meeting 757
On June 3, 2025, the City Council adopted a resolution on the City’s intent to levy and collect delinquent refuse charges on the property tax roll against residential parcels (up to three units) for Fiscal Year 2025-2026 and set the public hearing for July 1, 2025.

Staff advertised the July
1, 2025 public hearing in the Press Telegram on June 17, 2025 and July 24, 2025. The notice also informed that the public hearing may be continued to July 15, 2025.

Notices were mailed
to the affected property owners of the delinquent refuse amounts, the city’s intent to place the delinquent refuse charges on the county tax roll, and of the July 1, 2025 public hearing (with the possibility of the public hearing being continued to July 15, 2025).

Discussion and Analysis:

The City of Lynwood currently contracts with Waste Resources Inc. (WRI) for the collection and billing for solid waste handling services for single and multi-family dwellings on a bi- monthly basis.

Collecting these delinquent accounts has been challenging. Discontinuance of rubbish and garbage collection services for non-payment may not always be a viable option because of the City’s obligation to maintain public health.

At the public hearing the City Council may make revisions or corrections to the report of delinquent charges.

After the public hearing, property owners and account holders will be given an opportunity to pay up to August 1
st
to avoid the levy of the delinquent refuse charges
plus corresponding administrative expenses on their property taxes.

Fiscal Impact:

Delinquent Charges

As of June 3, 2025, there are an estimated 1,149 single-family residential (up to three units) refuse accounts totaling approximately $229,330 that were delinquent over 60 days as of April 30, 2025 and remain delinquent. The levy and collection of the delinquent amounts improves the City’s ability to recover the amounts owed for services provided. As payments are received, staff will update the list of delinquency.

Administrative Cost

Each refuse bill shall be increased by an amount not to exceed the cost incurred by the City and WRI for placing the delinquent bills on the property tax roll via special assessment.

Amounts collected, less reimbursement to the city for administrative expenses incurred by the city for placement of the charges on the county tax roll will be passed through to WRI.

City Council City Council Regular Meeting 758
Refuse DQ Exhibit A FY 2526.pdf
Resolution - Lynwood_FY_25-26_Delinquent_Refuse.docx
Coordinated With:

City Attorney’s Office
City Manager’s Office
Department of Public Works
ATTACHMENTS:

Description
City Council City Council Regular Meeting 759
Customer ID APN Delinquent
Amount
County
Collection
Cost
City
Administration
Cost
Professional
Consulting
Cost
Total
Estimated
Administration
Expenses*
Total
Estimated
Charge
036245 6186018026 $2,247.60 $0.25 $25.00 $4.75 $30.00 $2,277.60 036617 6168022016 1,543.05 0.25 25.00 4.75 30.00 1,573.05 037144 6176003020 1,494.29 0.25 25.00 4.75 30.00 1,524.29 040485 6186005022 1,494.29 0.25 25.00 4.75 30.00 1,524.29 036184 6186018018 1,346.13 0.25 25.00 4.75 30.00 1,376.13 040294 6187007001 1,200.22 0.25 25.00 4.75 30.00 1,230.22 038264 6168009024 1,158.02 0.25 25.00 4.75 30.00 1,188.02 036837 6170012021 1,149.13 0.25 25.00 4.75 30.00 1,179.13 038440 6175003014 1,149.00 0.25 25.00 4.75 30.00 1,179.00 035021 6175009008 1,146.64 0.25 25.00 4.75 30.00 1,176.64 038326 6175002004 1,146.58 0.25 25.00 4.75 30.00 1,176.58 041088 6186032005 1,146.53 0.25 25.00 4.75 30.00 1,176.53 034530 6194023002 977.95 0.25 25.00 4.75 30.00 1,007.95 040634 6189010033 963.08 0.25 25.00 4.75 30.00 993.08
080324 6186020007 863.07 0.25 25.00 4.75 30.00 893.07
036662 6207010004 753.19 0.25 25.00 4.75 30.00 783.19
037732 6171013061 750.09 0.25 25.00 4.75 30.00 780.09
036934 6170019001 750.09 0.25 25.00 4.75 30.00 780.09
040546 6189005030 750.08 0.25 25.00 4.75 30.00 780.08
040842 6186011085 750.02 0.25 25.00 4.75 30.00 780.02
033728 6190006014 749.31 0.25 25.00 4.75 30.00 779.31
039622 6174010013 747.76 0.25 25.00 4.75 30.00 777.76
039627 6187017020 747.72 0.25 25.00 4.75 30.00 777.72
041178 6186031023 746.86 0.25 25.00 4.75 30.00 776.86
080296 6189026044 732.12 0.25 25.00 4.75 30.00 762.12
036019 6188016019 685.23 0.25 25.00 4.75 30.00 715.23
041112 6186029012 684.86 0.25 25.00 4.75 30.00 714.86
041257 6186043006 681.84 0.25 25.00 4.75 30.00 711.84
041418 6194022001 647.36 0.25 25.00 4.75 30.00 677.36
037631 6168003010 640.36 0.25 25.00 4.75 30.00 670.36
083351 6173002002 631.16 0.25 25.00 4.75 30.00 661.16
036224 6176002032 630.64 0.25 25.00 4.75 30.00 660.64
038067 6191008006 591.14 0.25 25.00 4.75 30.00 621.14
038334 6191014018 567.59 0.25 25.00 4.75 30.00 597.59
037316 6168002008 548.00 0.25 25.00 4.75 30.00 578.00
042080 6191024004 534.10 0.25 25.00 4.75 30.00 564.10
083346 6173002002 531.06 0.25 25.00 4.75 30.00 561.06
038860 6175023001 527.48 0.25 25.00 4.75 30.00 557.48
041114 6186031005 527.18 0.25 25.00 4.75 30.00 557.18
040526 6189006030 525.23 0.25 25.00 4.75 30.00 555.23
072532 6187003012 521.14 0.25 25.00 4.75 30.00 551.14
040631 6189009008 520.70 0.25 25.00 4.75 30.00 550.70
038607 6177002040 515.26 0.25 25.00 4.75 30.00 545.26
036296 6176010018 514.87 0.25 25.00 4.75 30.00 544.87
041609 6189027035 511.54 0.25 25.00 4.75 30.00 541.54
038859 6175012017 510.02 0.25 25.00 4.75 30.00 540.02
038057 6168010031 508.51 0.25 25.00 4.75 30.00 538.51
036282 6176010040 506.98 0.25 25.00 4.75 30.00 536.98
081449 6186019002 505.25 0.25 25.00 4.75 30.00 535.25
041001 6189007008 505.25 0.25 25.00 4.75 30.00 535.25
City of Lynwood Delinquent Refuse