WPCX l(hN-=P p1jK3 `!y@vb s%r<UůhEwudbm j wB8-e6*ܺu)gBe+$sL9+{#I8)|] pLfpz}| 5J`oLғGtV?(85L̢ew>ld tk;buK~w-u׊25nY%BY<+p|0`KNc: CvOWV}{3\1|O)U`]3L渚=]X<_!4y|:\C{Hߊm}^֝MW%w5U_{;ږ Ҡ[%Y0_DnQ bYPMTU>  0#x 0u 0 r 0 o 0 l 0 i 0 f 0 c 0 ` 0] 0H 03 0 0  0 0 0 0 0 0 0t 0^ 0H! 02" 0# 0$ 0$ 0% 0& 0' 0( 0P) 0) 0V* 0.+ B<, BY, Bv, B, D3, D+, 0- 0< . 0 YF. 0f. 02/ 0*7/ 0_a0 00 0u1 0+02 0 3 063 0}3 0]4 0695 0Jo5 0J5 0:6 0=6 06U*U8 08U2a: 0e: 0g: 0g_; 0e; 0g+< 0g< 0g< 0g`= 0I= 0,> 0n<> 0~>U.(@ 0<V@ 0@ 0~iA 0B 0C 0D 0]E 0!F 0tFu!G 0H BKI DChII 0K B4L D/QL4LtL  (M  HM hMlM  M N 0N 1eNN 7N 1eN 7&O 1g4O 7O 1eO 7PPzQ  7R  WRtwR Rl S uS  SS 0 NS 0T#TUNtW %WMW(WNW 1uW 72kX^ XwX4XX mX\  `&Times New Roman' OMB CIRCULAR A-133 $Joyce M. Ward0Joyce Ward .   2P+P 0_level1  , 8.` hp x (#823  ..  8.` hp x (#8  2P+P 0_level2  X 8.` hp x (#823  ..  8.` hp x (#8  2P+P 0_level3   8.4` hp x (#823  ..  8.` hp x (#8  2P+P 0_level4   8.` ` hp x (#823  ..  8.` hp x (#8  2P+P 0_level5   8. ` hp x (#823  ..  8.` hp x (#8  2P+P 0_level6   8. ` hp x (#823  ..  8.` hp x (#8  2P+P 0_level7  4 8. ` hp x (#823  ..  8.` hp x (#8  2P+P 0_level8  ` 8.` hp x (#823  ..  8.` hp x (#8  2P+P 0_level9   8.<` hp x (#823  ..  8.` hp x (#8  2PP 0_levsl1  , 8.` hp x (#823  Ԁ  8.` hp x (#8  2PP 0_levsl2  X 8.` hp x (#823  Ԁ  8.` hp x (#8  2PP 0_levsl3   8.4` hp x (#823  Ԁ  8.` hp x (#8  2PP 0_levsl4   8.` ` hp x (#823  Ԁ  8.` hp x (#8  2PP 0_levsl5   8. ` hp x (#823  Ԁ  8.` hp x (#8  2PP 0_levsl6   8. ` hp x (#823  Ԁ  8.` hp x (#8  2PP 0_levsl7  4 8. ` hp x (#823  Ԁ  8.` hp x (#8  2PP 0_levsl8  ` 8.` hp x (#823  Ԁ  8.` hp x (#8  2PP 0_levsl9   8.<` hp x (#823  Ԁ  8.` hp x (#8  2PP 0_levnl1  , 8.` hp x (#823   8.` hp x (#8  2PP 0_levnl2  X 8.` hp x (#823   8.` hp x (#8  2PP 0_levnl3   8.4` hp x (#823   8.` hp x (#8  2PP 0_levnl4   8.` ` hp x (#823   8.` hp x (#8  2PP 0_levnl5   8. ` hp x (#823   8.` hp x (#8  2PP 0_levnl6   8. ` hp x (#823   8.` hp x (#8  2PP 0_levnl7  4 8. ` hp x (#823   8.` hp x (#8  2PP 0_levnl8  ` 8.` hp x (#823   8.` hp x (#8  2PP 0_levnl9   8.<` hp x (#823   8.` hp x (#8  6V v4Heading 1  X XXX ` 2(#   A7X` hp x (#A X XXX6: T4Heading 2   2(#   8.` hp x (#8  6X K4Heading 3  o4          XXX6Q V4Heading 4    &p x (#&     8.` hp x (#8 6 4Heading 5   6T G4Heading 6 X 8.` hp x (#8    8.` hp x (#86 4Heading 7   6| o4Heading 8 7*(X75+ ` hp x 5   7+(X7 5+ ` hp x 5  d  d  d  d&'()'dxd'dxd6N k4Heading 9  2(` ` hp x (#2    \RX` hp x (#\ <:Default Para64Hyperlink    .,TEST2 XXX ,*CS-2 2r+[ 0Level 1       X 8.` hp x (#823  ..   8.` hp x (#8  4+ 2Bullet 123  ..<)P :Body Text I1 X  N 2(#  8.` hp x (#8 X </P :Body Text I3    N : (#  8.` hp x (#8  <PP :Body Text In   8. ` hp x (#8  8.` hp x (#8  0"L .Header    (#  A7X` hp x (#A6 4Body Text< +  :List Bullet3  23  ..  <PP :List Bullet2   8.h` hp x (#8  8.` hp x (#8  0.Strong . ,Title     4  2Quick A.    :8Page Number0A .Footer  (#A7X` hp x (#A< :Body Text I2  ?@%2A`Arial? X 8.` hp x (#8   \RX` hp x (#\S\  `&Times New RomanS%2A`Arial< :Outline001_1   GBKr`WingdingsG  ;1 4 <D x (#;   YOX` hp x (#YXXXS\  `&Times New RomanS  Kr`Wingdings:+ 8List Bullet23  ..<+ :List Bullet123  ..<+ :List Bullet 23  ..:+ 8List Number23  ..<+ :List Number323  ..<+ :List Number223  ..<+ :List Number123  ..<+ :List Number 23  ..:  8Body Text 2  ,*Date< :Comment TextXXX2 0Quick    CO<6X9`(CourierC  8. ` hp x (#8   8.` hp x (#8S\  `&Times New RomanS  <6X9`(Courier<:Footnote Ref.PY ,Style   8.44` hp x (#8  A7X` hp x (#A  2 0Quick P   CO<6X9`(CourierC  8.` ` hp x (#8   8.` hp x (#8S\  `&Times New RomanS  .[[,TOC 2    8.` ` hp x (#8   8.` hp x (#8  0oo.Title2S\  `&Times New RomanS XXXS\  `&Times New RomanS <$$ :Footnote Tex    XXX<DD :Normal Inden X 8.` hp x (#8  8.` hp x (#8:)) 8Body Text 3 {dXXX {d< :Body Text Fi d  d   k Z]'..      X*XXXX*XXX*  K\(XXK (#X'XX*May2005Q'HOPEVI!!H(#HUDX*X'(2]$ }K!..      X*XXXX*XXX*   d[=Thin Bottomdxd  ^])..      X*XXXX*XXX*  K`(XXK0p x (#X0'XX*A133ComplianceSupplement6p x (#X(#6Q414.866  1  X*X'(2]$ }K!..      X*XXXX*XXX*   d_)1dxdhttp://www.hud.gov/hopevihttp://www.hud.gov/offices/reac/products/fass/pha_doc.cfm_Hlt102615645_Hlt102615646_Hlt96335016http://www.hud.gov/offices/reac/library/lib_fapha.cfm_Hlt102615665_Hlt96335027_Hlt96335028 35;AGMSY_11.a.i.1.a.i.1.a.j i. 35;AGMSY_2a.a.i.1.a.i.1.a.l i. 35=CIOU[a3(a)a.i.1.a.i.1.a.n i. 35;AGMSY_4A.a.i.1.a.i.1.a.p i.  ^])..      X*XXXX*XXX*  _K\(XXK (#X'XX*May2005Qgg)_CFP_Ԉ!!H(#HUDX*X'http://www.hud.gov/offices/pih/programs/ph/capfund/index.cfm_Hlt104556196_Hlt104556197http://www.hud.gov/offices/reac/products/fass/pha_doc.cfm_Hlt96343956http://www.hud.gov/offices/reac/library/lib_fapha.cfm_Hlt96343965_Hlt104556246#|x(O$(rK$..      X*XXXX*XXX*\\ps-1\7203A0(9 Z6Times New Roman RegularX3#37=CIQYag1.a.i.(1)(a)(i)1)a)i)2, 0:i+00U }K!..      X*XXXX*XXX*  _       Y]XXXX  DEPARTMENTOFHOUSINGANDURBANDEVELOPMENT   $   ?+ 4 hp x (#X?CFDA14.866 DEMOLITIONANDREVITALIZATIONOFSEVERELY ^ DISTRESSEDPUBLICHOUSING(HOPEVI) D  $ K+ ` hp x (# 4 hXKI.  PROGRAMOBJECTIVES B E.` hp x (#X(#E TheobjectiveofHOPEVIrevitalizationgrantsistoprovideassistancetopublichousing   agencies(PHAs)forthepurposesofenablingPHAstoimprovethelivingenvironmentfor   publichousingresidentsofseverelydistressedpublichousingprojectsthrough(1)demolition, l  (2)substantialrehabilitation,(3)reconfiguration,and/or(4)replacementofseverelydistressed R  units.Anadditionalobjectiveistorevitalizethesitesonwhichseverelydistressedpublic 8  housingprojectsarelocatedandcontributetotheimprovementofthesurrounding n  neighborhood. T  B+ ` hp x (#X(#BTheobjectiveofHOPEVIdemolitiongrantsistoenablePHAstofundthedemolitionof   severelydistressedpublichousingunitsandrelocationofaffectedresidents,andtoprovide   supportiveservicestorelocatedresidents. ~   II.  PROGRAMPROCEDURES  ,| 7  E.` hp x (#X(#E7  NoticeofFundingAvailability7:݌ * Ќ  7  7  TheDepartmentofHousingandUrbanDevelopment(HUD)awardsdemolitionand  revitalizationgrantstoeligibleorganizationsthroughacompetitiveprocess.Theprocedureis n setoutintheNoticesofFundingAvailability(NOFAs)fortheapplicablefiscalyear(FY).The T NOFAestablishestheeligibilityrequirementsforPHAstoapplyforaHOPEVIgrant;the : availabilityoffunds;andtherequirementsandprocedurestobefollowedinfilinganapplication  p fortheapplicableFY.7݌ V Ќ  7  7m   GrantAgreement7m ݌  Ќ  7  7   Thegrantagreement(Agreement)establishesgrantrequirements;theproceduresandcontentfor b  theRevitalizationPlan;thetimeperiodsforimplementationofthegrant;therequirementsand H! proceduresforgrantsupportedactivities,includingdevelopment,rehabilitation,homeownership, ."~ demolition,disposition,relocation,acquisition,communityandsupportiveservices, #d administrativefeesandcosts,andamendmenttotheRevitalizationPlan.Inaddition,the #J Agreementdefinesthevariousdevelopmenttypesinamixedincomedevelopment,including $0  replacementunits,rentalunits,homeownershipunits,andmarketrateunitsandtheirallowed %! sourcesoffunding,andtheHUDregulationsgoverningtheirdevelopmentandlocation.7  ݌ &! Ќ  7  7  DevelopmentandMixedFinanceDevelopment7݌ Z(# Ќ  7  7q  Theselectionofadevelopmentpartnerandthegeneraladministrativerequirementsaregoverned *X%  by24CFRpart85.Thedetailedstepstobefollowedinthephasebyphasedevelopmentofan *>&! allpublichousingdevelopmentaregovernedby24CFRpart941!PublicHousing +$'" Developmentand24CFRpart968!PublicHousingModernization.Thedetailedstepstobe , (# followedinthephasebyphasedevelopmentofamixedincome/mixedfinancedevelopmentare -($ governedbytheprovisionsof24CFRpart941subpartF!Public/PrivatePartnershipsforthe  MixedFinanceDevelopmentofPublicHousing.7q݌  Ќ  7  7  Thecomponentsofamixedincome/mixedfinancedevelopmentmaybepublichousingunits, D lowincometaxcreditandSection8units,andprivatelyfinancedmarketrateunits.Allofthe *z componentsofthemixedfinancedevelopment,otherthanpublichousing,mustbefundedfrom  ` otherfinancialsources.TheseobjectivesareaccomplishedthroughthePHAforging  F partnershipswithotherpublicagencies,includinglocalgovernmentalagencies,nonprofit  , organizations,andprivatebusinessestoleveragecommunitysupportandpublichousingfunded   financialsourcesforthedevelopment.7݌   Ќ  7  7  Ingeneral,theprocedurestobefollowedforeachphaseofdevelopment,assetoutinthe V  AgreementandtheRevitalizationPlanareasfollows.Amixedfinanceproposal(RentalTerm <  Sheet)ispreparedthatdescribesthedevelopmentanddevelopmentpartners;numberandtypes "r  ofunits;sourcesandusesoffunds(F1s)byspecificphase(HOPEVIBudget);schedules;any X  waiversrequired;loansandoperatingsubsidypaymentstothedevelopmententity;estimated >  constructioncost;andanyothermatterspertinenttothedevelopment.Uponapprovalofthe $ RentalTermSheet,thePHAhastheevidentiarydocumentsforthetransactionandtheMixed   FinanceAmendmenttotheACCpreparedforreviewandapprovalbyHUD.7݌  Ќ  7  7  AnapprovalletterisissuedbyHUD,authorizingtheexecutionoftheapplicableHUD N documentsandtherecordingoftheevidentiaries.Acopyoftherecordedevidentiariesandthe 4 HUDdocumentsareforwardedtoHUDHeadquarters.Uponreviewandapproval,theHOPEVI j fundsforthephase,assetoutintheHOPEVIBudget,andtheF1sareplacedinLineofCredit P ControlSystemtofundthedevelopmentcostsforthephase.Uponcompletionofconstruction, 6 andthemeetingoftheendoftheinitialoperatingperiodandthedateoffullavailability,the  agreeduponOperatingSubsidyisprovidedforthepublichousingunits.Uponcompletionofall  ofthephasesofdevelopmentfundedbyHOPEVI,thegrantisclosedoutinaccordancewiththe  provisionsoftheAgreement.7݌ ~ Ќ  7  7  SourceofGoverningRequirements7݌ ,| Ќ  TheprogramauthorityfortheHOPEVIprogramis42USC1437v,asamendedbysection402  * oftheHOPEVIProgramReauthorizationandSmallCommunityMainstreetRejuvenationand ! HousingActof2003(Pub.L.108186,approvedDecember16,2003).Theregulations " governingmixedfinancingarecontainedin24CFRpart941,subpartF. #   AvailabilityofOtherProgramInformation  :%    Noprogramspecificregulationshavebeenpublished.Eachgrantissubjecttothetermsofits &8"  Agreement,whichissignedbythegranteeandHUD.HUDpostsguidanceontheHOPEVI '#! programonitsHomePage(4a |O  5  .  http://www.hud.gov/hopevi."riza  6R"|f"muni  7ut-"),whichprovidesinformationon ($" timelines,budgets,financialinstructions,andotherprogramguidance.HUDalsopublishesa )$# MixedFinanceGuidebookthatisavailabletothepublicbycalling18009552232. *%$ InformationregardingthefinancialreportingrequirementsofthePHAsisprovidedbyHUDon f+&%  theRealEstateAssessmentCenter (REAC)homepages L,'& (4but|O  5  .  http://www.hud.gov/o% c %c%% d ffices/re%d&% e ac/products/fass/pha_doc.cfm.%riza  6Q%|e%muni  7ut%Ԁand  4fut|O  5  .  http://www.hud.gov/offi%e'&% g ces/reac/lib%g'% h %h'% i rary/lib_fapha.cfm.?'riza  6&|'muni  7ut5').    XE.` hp x (#X(#E III.  COMPLIANCEREQUIREMENTS  D   XE.` hp x (#X(#E IndevelopingtheauditprocedurestotestcompliancewiththerequirementsforaFederal B program,theauditorshouldfirstlooktoPart2,MatrixofComplianceRequirements,to  ( identifywhichofthe14typesofcompliancerequirementsdescribedinPart3are   applicableandthenlooktoParts3and4forthedetailsoftherequirements.    B+ ` hp x (#X(#B A.   ActivitiesAllowedorUnallowed R    ?(` ` hp x (#X(#? 1. ` HOPEVIrevitalizationgrantfundsmaybeusedtofundtherevitalizationof P  severelydistressedpublichousingdevelopments(42USC1437v(d)).Such 6  activitiesinclude:    ?( ` hp x (#` ` X(#?a. Thedemolitionofseverelydistressedpublichousingdevelopmentsor z  portionsthereof(42USC1437v(d)(1)(C)), `  b. Relocationcostsforaffectedresidents(42USC1437v(d)(1)(F)and(J)), ^  FRUS.,c. Dispositionactivities(42USC1437v(d)(1)(C))   USFR.,d. Rehabilitationofexistingpublichousingunitsand/orcommunityfacilities j (42USC1437v(d)(1)(B)), P e. Developmentofnewpublichousingunitsandcommunityfacilities N (42USC1437v(d)(1)(I)), 4 f. Homeownershipactivities(42USC1437v(d)(1)(G)),  g. Acquisitionanddispositionactivities(42USC1437v(d)(1)(B),(C)and @ (J)), & v h. Economicdevelopmentactivities(42USC1437v(d)(1)(G)), !$ i. Leveragingofresources(42USC1437v(d)(1)(I)), # j. Necessarymanagementimprovements(42USC1437v(d)(1)(H)), 0%  k. Administrativeandconsultingcosts(42USC1437v(d)(1)(D)and(E)),and &." l. Communityandsupportiveservices(42USC1437v(d)(1)(G)). (#  ?(` ` hp x (# ` X(#?2. ` HOPEVIdemolitiongrantfundsmaybeusedtofundthedemolitionofdwelling :*% unitsandnondwellingstructures,relocationofaffectedresidents,siterestoration,  +p&  asappropriate,andreasonableadministrativecosts(42USC1437v(d)). ,V' 3. ` Thecomponentsofmixedfinancedevelopment,otherthanpublichousing,may   notbefinancedwithpublichousingfunds(42USC1437v(d)).   XE.` hp x (#` ` X(#E&  D.  DavisBaconAct D   HOPEVIprojectsdevelopedinaccordancewith24CFRpart941!PublicHousing B Developmentand24CFRpart968!PublicHousingModernizationthatcontainonly  ( publichousingreplacementunits,andHOPEVImixedfinanceprojectsdevelopedin   accordancewith24CFRpart941subpartF!Public/PrivatePartnershipsfortheMixed   FinanceDevelopmentofPublicHousingwherethedevelopmententityhasbeen   procuredbythePHAinaccordancewith24CFRpart85aresubjecttotheprovisionsof p  theDavisBaconAct(42USC1437j(a)and(b),24CFRsections941.208and V  941.610(a)(8)(vi)).  <   E.` hp x (#X(#EG.  Matching,LevelofEffort,Earmarking :   j (03/ /""  ,XB.` hp x (#XB   ,E.` ` hp x (#X(#E":2  1  .3   `   Matching":;݌   Ќ X X` X   5  XB. ` hp x (#XB   ?(` ` hp x (# X(#?5;  Granteesmustprovideafivepercent(5%)overallmatch,andifmorethanfive F  percent(5%)ofthegrantisusedforcommunityandsupportiveservices,any ,| amountoverfivepercent(5%)mustbematched(42USC1437v(c)).5;<݌ b Ќ X! X` ` X(#!   B.` hp x (#XB 2. ` LevelofEffort 󀄀NotApplicable   3. ` Earmarking 󀄀NotApplicable'D5 n  X?+ ` hp x (#X?&  L.  Reporting  l   E.` ` hp x (#X(#E 1. ` FinancialReporting    E. ` hp x (#` X(#Ea. SF269,FinancialStatusReport󀄀Applicable x b. SF270,RequestforAdvanceorReimbursement!NotApplicable'? & v c. SF271,OutlayReportandRequestforReimbursementforConstruction !$ Programs!NotApplicable "  d. SF272,FederalCashTransactionsReport!Applicable h$  l (00j / /""  ,E.` hp x (# X(#E   ,$   2(#X(#$>C2  e  .3     FinancialReports(OMB25350107).FinancialAssessmentSubSystem, &f! FASSPHA.24CFRpart902!PublicHousingAssessmentSystem &L" (PHAS)SubpartCPhaseIndicator#2FinancialConditionrequiresthe '2# PHAtoprovidereportsonanannualbasis.Thereportrequiresan ($ assessmentonaPHAentitywidebasis,whichallowsfortheoversightof )$ allindividualgrantsandsubsidyprogramsandprovidesHUDaccessto *% anyfactorsitdeterminesareappropriate(42USC1437d(j)(1)(K). z+& Financialreportingrequirementsin24CFRsection902.33(a)(2)provide `,'  thattheinformationbe submittedelectronicallyintheformatprescribed F-(! byHUDusingtheFinancialDataSchedule(FDS).24CFRsection  902.35, Financialconditionscoringandthreshold,establishesthe  procedurestobeobservedbythePHA.>C D݌ | Ќ $  X(#  2(#$   E. ` hp x (# X(#EKeyLineItems!Thelineitemsunderthefollowingheadingscontain *z criticalinformation:  `  X <%` hp x (# X(#<(1)  HeadingsforHUDProgramsandBusinessActivities    n (00l / /"" X ,E.` hp x (#`  X(#E   ,H1< <h*p x (#X(#H2K2(  a  )3   <   HOPEVI(RevitalizationofSeverelyDistressedPublic l  Housing)2KL݌ R  Ќ  6 `  X(#<  <*X6 X  5 X E. ` hp x (#`  X(#E  X<% <hp x (# X(#<5NM  FRUS.,(b) < ComponentUnits(NonProfitEntities)5NMN݌ P  Ќ * `  X(#  <hX(#* XX  E.` ` hp x (#`  X(#EUSFR.,(2)  LineItems    E. ` hp x (#` X(#E(a) h FDSLine125(AccountsReceivable!Misc) \   X E.D` hp x (# X(#E(b) h FDSLine144(InterProgram!DueFrom)  Z  (c) h FDSLine171(Notes,Loans,Mortgages,Receivable!   Noncurrent)     h6 hp x (#DX(#6(d) h FDSLine172(Notes,Loans,Mortgages,Receivable! L NoncurrentPastDue) 2   h6D hp x (#hX(#6(e) h FDSLine174(OtherAssets) 0 (f) h FDSLine176(InvestmentinJointVentures)  (g) h FDSLine347(InterProgram!DueTo) < (h) h FDSLine348(LoanLiability!Current) : (i) h FDSLine355(LoanLiability!NonCurrent) ! (j) h FDSLine913(OutsideManagementFees) F# (k) h FDSLine1001(OperatingTransfers!In) $D  (l) h FDSLine1002(OperatingTransfers!In) &! (m) h FDSLine1003(OperatingTransfersFrom/ToPrimary P(# Government) 6)$  j (00n ""  ,E.` hp x (#DhX(#E   ,?(` ` hp x (#X(#? U2  2  .3   `   PerformanceReporting! NotApplicable UV݌ *4& Ќ $ DhX(#` ` X(#$   ""  ,E.` hp x (#DhX(#E   ,?(` ` hp x (#X(#?W2  3  .3   `   SpecialReporting! NotApplicable WX݌ ,' Ќ $ DhX(#` ` X(#$   _ p (00j / /" "  ,E.` hp x (#DhX(#E  P ,B+` ` hp x (#X(#B& X |Z2  N  .3      SpecialTestsandProvisions|Zt[݌  Ќ $ DhX(#` X(#$ P   XE.` hp x (#DhX(#E_FASS_Ԁ!PHA,PublicHousingAssessmentSystemPhaseIndicator#2Financial ^ Condition,andHUD50075,PHAPlans  D  ComplianceRequirement! Onanannualbasis,thePHAmustreportonthefinancial B conditionofthePHAandonthetransactionsthatthePHAisenteringintowithprivate  ( andnonprofitentities(24_CFR_Ԁ902.33.Inthe_FASS_ԄPHAFinancialAssessmentSub   System,thePHAtransactionswithnonprofitandprivatedevelopmententitiesareshown   undertheheadingsforHUDProgramsandBusinessActivitiesforHOPEVI   (RevitalizationofSeverelyDistressedHousing)andtheComponentUnits(NonProfit p  Affiliates).Suchtransactionswouldbenotedinthe_FDS_ԀLineitemsshownabovein V  SectionIII.L.1.e(2).The_FASS_ԄPHAFinancialReportisreviewedandapprovedor <  rejectedbythe_REAC_.'X h[ "r  ThePHAisrequiredtoreportinthePHAPlan,inaccordancewithHUD50075(OMB   No.25770226)anytransactionstobeenteredintowithnonprofitandprivate   developmententities.ThePHAsubmitstheAnnualStatement,Component7,forHOPE  VIandMixedFinanceinPartIIIofthePHAPlan.ThePHAPlan,Implementation  Schedule,foreachactivegrant,detailstheeligibleactivitiestobefundedandthebudget h ofestimatedsourcesanduses. N 5  XE. ` hp x (#X(#E   XE.` hp x (# X(#E5c  AuditObjective Determinewhethertheexpendituressetoutinthe_FDS_Ԁlineitemsthat L indicateparticipationbynonprofitandprivatedevelopmententities(_FDS_ԀLineItems 2 125,144,and347)agreewiththedatareportedinthePHAPlan.5cd݌  Ќ XX$ X(#X(#$   5  XE. ` hp x (#X(#E   XE.` hp x (# X(#E5f  SuggestedAuditProcedures5fg݌ v Ќ XX$ X(#X(#$   5  XE. ` hp x (#X(#E  E.` ` hp x (# X(#E5Eh  a. ` Reviewthedatain_FDS_ԀLineItems125,144,and347todeterminetheextentof $t nonprofitandprivatedevelopmententitiesusingHOPEVI.5Ehi݌  Z Ќ X$ X(#` X(#$   5  XE. ` hp x (#X(#E  E.` ` hp x (# X(#E5yj  b. ` Ascertainthatthedatainthe_FDS_ԀLineItems125,144,and347aresubstantially  inagreementwiththeestimatedsourcesandusesreportedinthePHAPlan,   ImplementationSchedule(i.e.,expendituresdonotexceedthebudgetby10 ! percent).5yjHk݌ j" Ќ X$ X(#` X(#$   5  XE. ` hp x (#X(#E  E.` ` hp x (# X(#E5;m  5;m n݌  $h Ќ X$ X(#` X(#$   _r]_ X  3p x (#X(#3 DEPARTMENTOFHOUSINGANDURBANDEVELOPMENT     B( hp x (#X(#B _CFDA_Ԁ14.872 PUBLICHOUSINGCAPITALFUND(_CFP_)  ^ H.` hp x (# X(#H I.  PROGRAMOBJECTIVES   \ TheobjectiveoftheCapitalFundProgram(_CFP_)istomakeassistanceavailabletopublic   housingagencies(_PHAs_)tocarryoutcapitalandmanagementimprovementactivities.The_CFP_   isthemajorsourceoffundingmadeavailablebyHUDto_PHAs_Ԁfortheircapitalactivities,   includingmodernizationanddevelopmentofpublichousing. l  Theobjectivesofmodernizationactivitiesaretoimprovethephysicalconditionofexisting j  publichousingdevelopments,includingtheredesign,reconstruction,addition,and P  reconfigurationofpublichousingsites,buildings,facilitiesand/orrelatedappurtenancesor 6  improvements(includingaccessibilityimprovements).   TheobjectivesofmanagementimprovementactivitiesaretoupgradetheoperationofPHA z  developments,sustainphysicalimprovementsatthosedevelopments,orcorrectmanagement `  deficiencies. F  Theobjectivesofdevelopmentactivitiesaretoprovide_PHAs_Ԁwiththeopportunitytoreplace, D build,oracquireunitstohouselowincomefamilies,includingcostsforplanning,financing, * landacquisition,demolition,andconstruction.   II.  PROGRAMPROCEDURES  n _CFP_Ԁgrantsaremadeavailabletoall_PHAs_,basedonformulaaftersettingasidefundsfora l ReserveforEmergenciesandNaturalDisaster.HUDallocatesonehalfoftheavailableCapital R Fundamountbasedontherelativeexistingmodernizationneedsof_PHAs_Ԁandtheotheronehalf 8 basedontherelativeaccrualneedsof_PHAs_.ThecalculatedneedsaresummedtothePHA  level.HUDcollectsobjectivemeasurabledataabouteachPHA,suchastheageofeach  developmentandtheaveragenumberofbedroomsineachdevelopment,andusesthisdatato  determinethePHAsshareofthefundsappropriatedannually.   ThePHAsannualallocationisbasedonexistingmodernizationneedsandaccrualneedsofall ."~ _PHAs_.Existingmodernizationneedsarethecostofrepairsandreplacementsbeyondordinary #d maintenancerequiredtomakethehousingdecentandsustainablewithmodestamenities. #J Accrualneedsarethecostsneededeachyeartocoverexpectedongoingrepairsand $0  replacementsbeyondordinarymaintenance,assumingthatexistingmodernizationneedsaremet. %! Inplanningitsmodernizationprojects,thePHAisrequiredtoconsultwithresidentsandlocal t'" governmentofficials.Aftergrantaward,thePHAmayselectanarchitectorengineerthrough Z(# competitivenegotiationtodeveloptheplansandspecificationsfortheconstructionwork. @)$  Constructionwork,aswellasmanagementimprovements,maybecarriedoutthroughcontract &*v%! labor(competitivelyprocured)orthePHAsownworkforce(forceaccount).ThePHAorits  +\&" architectmonitorstheworkinprogressforcompliancewithcontractrequirementsand +B'# acceptableworkquality,andsubmitsperiodicprogressreportstoHUD. ,(($ _PHAsdevelopadditionalpublichousing,includingmixedfinancedhousinginaccordancewith  24CFRsection941.Fordevelopmentprojects,thePHAisresponsibleforobtainingand  maintaininglocalcooperation,forprojectplanning,andforsubmittingtheannualPHAPlanand | anypublichousingproposal.Thisincludesselectingsitesorpropertiestobeacquired, b contractingwithbuilderstoconstructorrehabilitatehousing,contractingwithdevelopersforthe H purchaseofcompleted(neworrehabilitated)housing,andpurchasingexistinghousingwhich . ~ mayrequirerepairs.Inaddition,asadeveloper,thePHAisresponsibleforselectingand  d contractingwithotherparties(e.g.,architectsandengineers)andforexpeditingandcoordinating  J thepreparationofrequiredHUDsubmissions.  0 Onanannualbasis,thePHAsubmitsaPublicHousingAgencyPlan(OMBNo.25770226)to    HUD.ThePlanincludesacomponentrelativetotheCFPactivitiesthePHAplanstoundertake t  withitannualallocation.Afiveyearplanidentifyinganticipatedexpendituresforlargecapital Z  itemsisalsoincluded.PriortosubmittingthePlantoHUDforreviewandapproval,thePHA @  mustholdapublichearingandprovideresidents,localgovernmentofficials,andotherinterested &v  partieswithanopportunitytocommentontheproposedactivities.  \  ApprovalofthePHAPlanisinconjunctionwiththePHAfiscalyear,andthatapproval   constitutesapprovalofthePHAsCFPgrant.AfterthePlanisapproved,whichincludesthe  PHAsbudgetfortheCFPfunds,HUDapportionsthegrantintheappropriateBudgetLine  Items(BLIs)intheLineofCreditControlSystem(LOCCS).ThePHAcanthendrawdown l fundsasneededonathreedayturnaroundbasistopayforapprovedworkactivities. R InaccordancewithHUDsUniformFinancialReportingStandardsrule,annually,aPHAis P requiredtosubmitfinancialstatements,preparedinaccordancewithgenerallyaccepted 6 accountingprinciples(GAAP),intheelectronicformatspecifiedbyHUD.Theunaudited  financialstatementisdue2monthsafterthePHAsfiscalyearendandtheauditedfinancial  statementisdue9monthsafteritsfiscalyearend(24CFRsection5.801).Thefinancial  statementmustincludethefinancialactivitiesofthisprogram. ~  SourceofGoverningRequirements  ,| Thisprogramisauthorizedunder42USC1437gand3535(d).Implementingregulationsare24  * CFRparts905,941,and968subpartsAandB.Inaddition,theCFPisoperatedinconjunction ! withthePHAPlanprocessdiscussedat24CFRpart903. "   AvailabilityofOtherProgramInformation  T$ % K*(X&R!KB+ ` hp x X(#B      &  %  Therearenoprogramregulationsforthisprogram.HUDpostsguidanceontheCFPtoitsHome &^! Page(4sth|O  5  .  http://www.hud.gov/offices/pih/pro%i'% t %t% u grams/ph/capfund/index.cfm.XComp  6 | Comp  7thN)thatprovidesgrantees &D"  withinformationontimelines,budgets,financialinstructions,andotherprogramguidance.. '*#! InformationregardingthefinancialreportingrequirementsofthePHAsisprovidedbyHUDon ($" theRealEstateAssessmentCenter(REAC)websiteat )$# 4vth|O  5  .  http://www.hud.gov/offices/rea%uڎ% w c/products/fass/pha_doc.cfm.0Comp  6|Comp  7th~&Ԁand *%$ 4xth|O  5  .  http://www.hud.gov/offices/re%w% y %y% z ac/library/lib_fapha.cfm.Comp  6[|oComp  7th.%r thBԌ r+&% Ќ<D ,-|( <! X(#X!  III.  COMPLIANCEREQUIREMENTS '&f ,-|(&  IndevelopingtheauditprocedurestotestcompliancewiththerequirementsforaFederal  program,theauditorshouldfirstlooktoPart2,MatrixofComplianceRequirements,to  identifywhichofthe14typesofcompliancerequirementsdescribedinPart3are | applicableandthenlooktoParts3and4forthedetailsoftherequirements.  b &  A.  ActivitiesAllowedorUnallowed   `   E.` ` hp x (#X(#E1. ` Activitiesallowedincludecapitalimprovements,financing,majorrepairs,   managementimprovements,andplanningcostsandmustbeapprovedbyHUD.   HUDapprovalisprovidedgenerallyintheapprovedPHAPlan,whichincludes   thePHAsbudgetforCFPfunds(24CFRsection968.315).Onanannualbasis, p  thePHAprovidesHUDwithitsAnnualStatementComponent7ofthePHAPlan V  (HUD50075,OMBNo.25770226)inaccordancewith24CFRsection <  968.325(e)whichdetailstheeligibleactivitiestobefundedwiththecurrent "r  yearsgrantandtheestimatedcosts.HUDreviewsandapprovestheactivitiesin X  theAnnualStatementbeforethePHAcanhaveaccesstothefunds. >  2. ` ThePHAmaynotincuranymodernizationcostinexcessofthetotalHUD  approvedPHAPlanwhichincludestheprojectbudget.Budgetrevisionsmaybe  approvedbyHUDfordeviationsfromtheoriginallyapprovedmodernization h program.APHAshallnotincuranymodernizationcostonbehalfofany N developmentthatisnotcoveredbytheoriginalPHAPlan(24CFRsection 4 968.225).' | j  XE.` hp x (#` X(#E D.  DavisBaconAct    ProjectsfundedwithCapitalFundsthataredevelopedinaccordancewith24CFRpart v 941!PublicHousingDevelopmentand24CFRpart968!PublicHousing \ Modernizationthatcontainonlypublichousingunitsandmixedfinanceprojects B developedinaccordance24CFRpart941subpartF!Public/PrivatePartnershipsforthe (x MixedFinanceDevelopmentofPublicHousingaresubjecttotheDavisBaconAct(42 ^ U.S.C.1437j(a)and(b),24CFR941.208and24CFR941.610(a)(8)(vi)). D  XE.` hp x (#X(#E L.  Reporting  !  X 1. ` FinancialReporting  P#  j (00p / /"" X XE.` hp x (#X(#E   X<% hp x (#X(#<+2  a  .3     SF269,FinancialStatusReport󀄀Applicable+݌ $N  Ќ $ X(#  X(#$ X  "" X XE.` hp x (#X(#E   X<% hp x (#X(#<2  b  .3     SF270,RequestforAdvanceorReimbursement!NotApplicable݌ &! Ќ $ X(#  X(#$ X  "" X XE.` hp x (#X(#E   X<% hp x (#X(#<2  c  .3     SF271.OutlayReportandRequestforReimbursementofConstruction Z(# Programs!NotApplicable݌ @)$  Ќ $ X(#  X(#$ X  "" X XE.` hp x (#X(#E   X<% hp x (#X(#<H2  d  .3     SF272,FederalCashTransactionsReport!ApplicableH.݌ *>&! Ќ $ X(#  X(#$ X  3 XX N 2(#X(#  X 6% hp x (#N 2(#63?  e. FinancialReports(OMB25350107)FinancialAssessmentSubSystem, ,'" FASSPHA.24CFRpart902!PublicHousingAssessmentSystem -(# (PHAS)SubpartCPhaseIndicator#2FinancialConditionrequiresthe  PHAtoprovideannualreportsonaPHAwidebasis(42USC1437d  (j)(1)(K).Financialreportingrequirementsin24CFRsection | 902.33(a)(2)providethattheinformationbesubmittedelectronicallyin b theformatprescribedbyHUDusingtheFinancialDataSchedule(FDS). H Further24CFRsection902.35, Financialconditionscoringand . ~ threshold,establishestheprocedurestobeobservedbythePHA.3?݌  d Ќ $ X(#  X(#$ X  X E. ` hp x (#X(#EKeyLineItems!ThelineitemsunderthefollowingHeadingscontain   criticalinformation:     p     X E.` ` hp x (# X(#E1.  HeadingsforHUDProgramsandActivities V  5 X E. ` hp x (#` X(#E   9"h hp x (# X(#95[  a. h PublicHousingCapitalFundProgram5[݌ T  Ќ  * ` X(#hh,X(#* X  5 X E. ` hp x (#` X(#E   E.h` hp x (# X(#E5  FRUS.,b. h ComponentUnits(NonProfitEntities)5݌   Ќ  $ ` X(#hX(#$ X  E.` ` hp x (#` X(#EUSFR.,2.  LineItems `   X ` E.` hp x (#` X(#EFDSLine125(AccountsReceivable!Misc) ^    ` E.D` hp x (#X(#EFDSLine144(InterProgram!DueFrom)   FDSLine171(Notes,Loans,Mortgages,Receivable!Non j current) P FDSLine172(Notes,Loans,Mortgages,Receivable!Non N currentPastDue) 4    E.<` hp x (#DX(#EFDSLine174(OtherAssets)  FDSLine176(InvestmentinJointVentures) @ FDSLine347(InterProgram!DueTo)  > FDSLine348(LoanLiability!Current) " FDSLine355(LoanLiability!NonCurrent) J$ FDSLine913(OutsideManagementFees) %H! FDSLine1001(OperatingTransfers!In) '" FDSLine1002(OperatingTransfers!In) T)$    ?(V ` hp x (#<X(#?FDSLine1003(OperatingTransfersFrom/ToPrimary +R& Government) +8' ""  ,E.` hp x (#V` X(#E   ,?(` ` hp x (#X(#? R2  2  .3   `   PerformanceReporting! NotApplicableR>݌ -( Ќ $ V` X(#` ` X(#$   _""  ,E.` hp x (#V` X(#E   ,?(` ` hp x (#X(#? M2  3  .3   `   SpecialReporting !NotApplicableM9݌  Ќ $ V` X(#` ` X(#$    E.` hp x (#V` X(#E N.  SpecialTestsandProvisions ^  XE.` hp x (#X(#E_FASS_Ԁ!PHA,PublicHousingAssessmentSystemPhaseIndicator#2,Financial  \ Condition,andHUD50075,PHAPlans B ComplianceRequirement! OnanannualbasisthePHAmustreportonthefinancial   conditionofthePHAandonthetransactionsthatthePHAisenteringintowithprivate   andnonprofitentities(24_CFR_Ԁpart902.33).Inthe_FASS_ԄPHAFinancialAssessment l  SubSystem,thePHAtransactionswithnonprofitandprivatedevelopmententitiesare R  shownundertheheadingsforHUDProgramsandBusinessActivitiesfortheCapital 8  FundProgram.Suchtransactionswouldbenotedinthe_FDS_ԀLineitemsshownabovein n  SectionIII.L,1e.2.The_FASS_ԄPHAFinancialReportisreviewedandapprovedor T  rejectedbythe_REAC_. :  ThePHAisrequiredtoreportinthePHAPlan,inaccordancewithHUD50075(OMB   No.25770226),anytransactionstobeenteredintowithnonprofitandprivate ~  developmententities.ThePHAsubmitstheCapitalFundPrograminPartIIIofthePHA d plan.ThePHAPlan,ImplementationSchedule,foreachactivegrant,detailstheeligible J activitiestobefundedandthebudgetofestimatedsourcesanduses.ThePHAPlanis 0 reviewedandapprovedbytheHUDFieldOfficeintheregioninwhichthePHAis f located. L 5  XE. ` hp x (#X(#E   XE.` hp x (# X(#E5  AuditObjective Determinewhethertheexpendituressetoutinthe_FDS_Ԁlineitemsthat  indicateparticipationbynonprofitandprivatedevelopmententities(_FDS_ԀLineItems  125,144,and347)agreewiththedatareportedinthePHAPlan.5݌ v Ќ XX$ X(#X(#$   5  XE. ` hp x (#X(#E   XE.` hp x (# X(#E&  5  SuggestedAuditProcedures5݌ $t Ќ XX$ X(#X(#$   5  XE. ` hp x (#X(#E  E.` ` hp x (# X(#E5  a. ` Reviewthedatain_FDS_ԀLineItems125,144,and347todeterminetheextentof " nonprofitandprivatedevelopmententitiesutilizingtheCapitalFundProgram. 5]݌  Ќ X$ X(#` X(#$   5  XE. ` hp x (#X(#E  E.` ` hp x (# X(#E5  b. ` Ascertainthatthedatainthe_FDS_ԀLineItems125,144,and347aresubstantially f! inagreementwith_with_ԀtheestimatedsourcesandusesreportedinthePHAPlan, L" ImplementationSchedule(i.e.,expendituresdonotexceedthebudgetby10 2# percent).5݌ $h Ќ X$ X(#` X(#$   5  XE. ` hp x (#X(#E  E.` ` hp x (# X(#E5  ' $5݌ %! Ќ X$ X(#` X(#$   XE.` hp x (#X(#E