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• The City will require developers to enforce the federal occupancy standard of two persons per bedroom plus one. • The City utilizes rent and income tables developed by HUD, and for 30 percent of median rents, tables developed by the California Tax Credit Allocation Committee. Allowable rents and incomes may remain unchanged or may go down from one year to the next. Attainable rents may be significantly less than allowable rents. The City anticipates that HUD may release new rent and income tables for the HOME Program at some time during the next several months. Both may be lower than the current tables. • Projects with more than eleven (11) HOME Assisted units are subject to Davis -Bacon wage requirements. • HUD regulations prohibit the use of federal funds to pay relocation costs for tenants without a legal right to reside in the United States. State law requires that they be paid for those costs. Consequently the City will require that they be paid out of a nonfederal funding source. • For acquisition /rehabilitation projects the City will require that the developer hire a professional relocation firm to develop and implement a relocation plan. The selected firm must be acceptable to the City. If awarded, for all projects, either new construction or acquisition /rehabilitation, the Developer will be required to provide a Voluntary Letter in accordance with federal regulations. • Unless it will be rent and income restricted, HOME funds cannot be used to pay for the development of a resident manager's unit. • Under the newly revised HOME Program final rule, the City may not enter into a written agreement that commits HOME funds until all other required funding has been secured by means of a firm commitment, a budget and production schedule has been established, and underwriting completed. In order to facilitate this process, the City will require the selected developer to provide evidence of a firm commitment for any additional funds required by the project. If the selected developer cannot provide the financing commitments, their proposal will be denied. • Under the newly revised HOME Program final rule, nonprofits wishing to be certified as CHDOs must have paid staff whose experience qualifies them to undertake CHDO activities. To act as a "developer," a CHDO must be in sole charge of all aspects of the development process, including design, financing and construction. CHDO rental projects "developed" by a CHDO must be owned by the CHDO. Two other CHDO roles and their requirements ( "owner" and "sponsor ") are described in Section 92.300 of the revised rule which is available on HUD's website. Nonprofits seeking HOME funding as CHDOs must identify which of these three roles they will play, and how they meet HUD's requirements. • The newly revised HOME Program final rule includes several mandated progress - related deadlines that will be incorporated into the developer's loan agreement, and that must be incorporated into the project's proposed timeline: o Construction must be underway within a year of the commitment of HOME funds o HOME assisted rental units must be occupied by income - eligible tenants within 18 months of project completion. o HOME projects must be completed within four years of the commitment of HOME funds City of Santa Ana Community Development Agency Request for Qualifications for Community Housing Development Organizations (CHDO) 19age 12 5