3 - PUBLIC HEARING ANNUAL ACTION PLAN

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Administrative Plan 4/1/2016 Page 17-14 PART IV: REHABILITATED AND NEWLY CONSTRUCTED UNITS 17-IV.A. OVERVIEW [24 CFR 983.151] There are specific requirements that apply to PBV assistance for newly constructed or rehabilitated housing that do not apply to PBV assistance in existing housing. This part describes the requirements unique to this type of assistance. Housing selected for this type of assistance may not at a later date be selected for PBV assistance as existing housing. 17-IV.B. AGREEMENT TO ENTER INTO HAP CONTRACT In order to offer PBV assistance in rehabilitated or newly constructed units, SAHA must enter into an agreement to enter into HAP contract (Agreement) with the owner of the property. The Agreement must be in the form required by HUD [24 CFR 983.152(b)]. SAHA may not enter into an Agreement if commencement of construction or rehabilitation has commenced after proposal submission [24 CFR 983.152(c)]. Construction begins when excavation or site preparation (including clearing of the land) begins for the housing. Rehabilitation begins with the physical commencement of rehabilitation activity on the housing. In the Agreement the owner agrees to develop the PBV contract units to comply with HQS, and SAHA agrees that upon timely completion of such development in accordance with the terms of the Agreement, SAHA will enter into a HAP contract with the owner for the contract units [24 CFR 983.152(a)]. Content of the Agreement [24 CFR 983.152(d)] At a minimum, the Agreement must describe the following features of the housing to be developed and assisted under the PBV program: • Site and the location of the contract units; • Number of contract units by area (size) and number of bedrooms and bathrooms; • Services, maintenance, or equipment to be supplied by the owner without charges in addition to the rent; • Utilities available to the contract units, including a specification of utility services to be paid by the owner and utility services to be paid by the tenant; • An indication of whether or not the design and construction requirements of the Fair Housing Act and section 504 of the Rehabilitation Act of 1973 apply to units under the Agreement. If applicable, any required work item resulting from these requirements must be included in the description of work to be performed under the Agreement; • Estimated initial rents to owner for the contract units; • Description of the work to be performed under the Agreement. For rehabilitated units, the description must include the rehabilitation work write up and, where determined necessary by SAHA, specifications and plans. For new construction units, the description must include the working drawings and specifications. • Any additional requirements for quality, architecture, or design over and above HQS. 3-402