Administrative Code

Virginia Administrative Code
Title 13. Housing
Agency 10. Virginia Housing Development Authority
9/24/2020

Chapter 90. Rules and Regulations for Virginia Rental Rehabilitation Program

13VAC10-90-10. Definitions.

The following words and terms, when used herein, shall have the following meanings, unless the context indicates otherwise.

"Grantee" means any unit of local government that enters into a grant agreement with the authority to administer a rental rehabilitation grant.

"HUD" means the U.S. Department of Housing and Urban Development.

"Section 8" means Section 8 of the United States Housing Act of 1937 (42 USCS § 1437 et seq.), as amended, and the applicable rules and regulations promulgated thereunder.

These definitions supplement those contained in 24 CFR 511.2 and other applicable sections of the Code of Federal Regulations. Only those terms not defined in the Code of Federal Regulations or used differently herein have been defined.

Statutory Authority

§ 36-55.30:3 of the Code of Virginia.

Historical Notes

Derived from VR400-02-0008 § 1, eff. December 18, 1984; amended, Virginia Register Volume 4, Issue 21, eff. June 21, 1988; Volume 5, Issue 21, eff. July 1, 1989; Volume 7, Issue 25, eff. August 20, 1991.

13VAC10-90-20. Purpose and applicability.

These rules and regulations are adopted pursuant to § 36-55.30:3 of the Code of Virginia.

The following rules and regulations are applicable to all grants made by the authority to units of local government with funds allocated to the authority by HUD for the purpose of carrying out local rental rehabilitation programs for the benefit of lower income families and persons. Such grants are referred to herein as "rental rehabilitation grants."

Rental rehabilitation grants may be made to Grantees pursuant to these rules and regulations only if and to the extent that the authority has received from HUD grant funds available therefor.

These rules and regulations supplement and clarify rather than supercede federal program requirements. The authority and all local grantees are fully bound by the applicable requirements of 24 CFR Part 511, as well as governing federal and state laws in the administration and use of funds received from HUD under the federal Rental Rehabilitation Program.

Notwithstanding anything to the contrary herein, the Executive Director is authorized with respect to any rental rehabilitation grant to waive or modify any provisions herein where deemed appropriate by him for good cause, to the extent not inconsistent with the Act and any applicable federal regulations.

All reviews, analyses, evaluations, inspections, determinations and other actions by the authority pursuant to the provisions of these rules and regulations shall be made for the sole and exclusive benefit and protection of the authority, and shall not be construed to waive or modify any of the rights, benefits, privileges, duties, liabilities or responsibilities of the authority or the grantee under the agreements and documents executed in connection with a rental rehabilitation grant.

The rules and regulations set forth herein are intended to provide a general description of the authority's requirements and are not intended to include all actions involved or required in the administration of grants under the Virginia Rental Rehabilitation Program. These rules and regulations are subject to change at any time by the authority and may be supplemented by policies, rules and regulations adopted by the authority from time to time with respect to the Virginia Rental Rehabilitation Program.

Statutory Authority

§ 36-55.30:3 of the Code of Virginia.

Historical Notes

Derived from VR400-02-0008 § 2, eff. December 18, 1984; amended, Virginia Register Volume 4, Issue 21, eff. June 21, 1988; Volume 5, Issue 21, eff. July 1, 1989; Volume 7, Issue 25, eff. August 20, 1991.

13VAC10-90-30. Program eligibility.

A. Eligible localities. The authority will accept applications for rental rehabilitation grants from any city, town or county determined by HUD to be eligible for participation in the Virginia Rental Rehabilitation Program. The authority will maintain a current listing of eligible local governments.

B. Eligible neighborhoods. Applicants must document that each neighborhood in which rental rehabilitation grants are used meets the following two conditions:

1. Neighborhood income level. The median household income in the neighborhood must be at or below 80% of the median income for the Metropolitan Statistical Area (MSA) in which it is located, or, in the case of a neighborhood not within a MSA, at or below 80% of the median income for the state's nonmetropolitan areas.

2. Rent stability/affordability. Rents in the neighborhood must be stable and generally affordable to lower income persons. An applicant must document rent stability/affordability in one of the following three ways:

a. Rent trends. An applicant may document that, according to the U.S. Census, the increase in average contract rent in the neighborhood between 1970 and 1980 was equal to or less than the increase in average contract rent in the housing market area;

b. Current rent survey. An applicant may survey current neighborhood rents to document that rents are generally at or below the Section 8 Fair Market Rent limits for existing housing; or

c. Other evidence. An applicant may document that, according to the 1980 U. S. Census, the median gross rent in the neighborhood was at or below the Section 8 Fair Market Rent limit for an existing two-bedroom unit that was applicable for the housing market area in April, 1980, and provide some type of evidence that the neighborhood housing market has been stable since 1980 (e.g., assessed property values or building permit activity have not increased more rapidly than in the housing market area as a whole).

C. Eligible projects. Rental rehabilitation grants may only be used to rehabilitate projects meeting the requirements of 24 CFR 511.11.

Statutory Authority

§ 36-55.30:3 of the Code of Virginia.

Historical Notes

Derived from VR400-02-0008 § 3, eff. December 18, 1984; amended, Virginia Register Volume 4, Issue 21, eff. June 21, 1988; Volume 5, Issue 21, eff. July 1, 1989; Volume 7, Issue 25, eff. August 20, 1991.

13VAC10-90-40. Allocation of funds.

A. Types of allocations. The authority will accept the following two types of applications from eligible local governments for rental rehabilitation grants:

1. General allocations. The authority will make allocations of funds to local governments on a first-come, first-served basis for use in carrying out locally-designed rental rehabilitation programs. The following conditions will apply:

a. Each local allocation will be limited to a specific dollar amount.

b. Once a local government has committed 80% of its funds to specific projects, it will be eligible to apply for an additional general allocation.

c. An initial allocation to a grantee will expire on a date determined by the authority which shall be no less than six months and no more than 18 months after the date the authority enters into a grant agreement with the grantee with respect to such allocation; provided, however, that the authority may, in its discretion, extend the term of an allocation one or more times for a period not to exceed 12 months for each such extension.

d. Upon the expiration of an allocation, any uncommitted grant funds will be recaptured.

e. The authority will reserve the right to recapture monies from an additional general allocation prior to its expiration, if necessary, due to poor local performance and the need to commit state program funds in a timely manner.

2. Funding for specific projects. The authority will fund, on a first-come, first-served basis, applications submitted by eligible local governments for specific projects. The following conditions will apply:

a. Total funding, including any prior general or project allocations, will be limited to a specific dollar amount.

b. A locality with an uncommitted general allocation will be expected to commit these funds to the project prior to requesting additional monies.

The funding limit for specific projects will be lifted only in the event that state grant monies are not being committed in a timely manner.

B. Application procedures. The authority shall, from time to time, give notice of funds availability to eligible units of local government throughout the Commonwealth. Such notice may include the applicable funding limits and a timetable for the submission and review of applications for each type of funds allocation.

Specific application requirements and review procedures will be provided in application packets and through such workshops/training sessions as the authority deems appropriate. Applications for grant funds will be expected to include the following types of information:

1. General allocations. Applications for general allocations will include an identification and description of program neighborhoods; the locality's method of identifying and selecting projects; a description of local program operating procedures; a description of steps to be taken to ensure adequate maintenance and operation of projects receiving rental rehabilitation funds; a description of steps to be taken to encourage the use of minority and women-owned businesses; a description of the anticipated form of assistance to be provided to property owners and the means by which the amount of assistance will be determined; an indication of the anticipated source of matching funds; a description of any assistance to be provided to property owners in obtaining matching funds; an affirmative marketing plan (see 13VAC10-90-50 I 2); an agreement to comply with all federal and state program requirements; and other information as requested by the authority in the application packet.

2. Funding for specific projects. An application for funding for a specific project will include information concerning the project's conformance with neighborhood standards'; a description of local program operating procedures; a description of steps to be taken to ensure adequate project maintenance and operation; a description of steps to be taken to encourage the use of minority and women-owned businesses; a description of the project's financing package; an affirmative marketing plan; information concerning expected displacement/relocation of lower income persons; an agreement to comply with all federal and state program requirements; and other information as requested by the authority in the application packet.

3. Requests for increases in allocations. After receiving an allocation of funds under the Virginia Rental Rehabilitation Program, a grantee may request an increase in such allocation by applying therefor on such form or forms as the authority shall provide.

C. Grant agreement. Upon the approval of an application for funding, the authority will enter into a grant agreement with the local government stating the terms and conditions under which funds will be provided.

Statutory Authority

§ 36-55.30:3 of the Code of Virginia.

Historical Notes

Derived from VR400-02-0008 § 4, eff. December 18, 1984; amended, Virginia Register Volume 4, Issue 21, eff. June 21, 1988; Volume 5, Issue 21, eff. July 1, 1989; Volume 7, Issue 25, eff. August 20, 1991.

13VAC10-90-50. Program requirements.

A. Lower income benefit. Each grantee must use at least 70% of its rental rehabilitation grant to benefit lower income families in accordance with 24 CFR 511.10(a)(2). This benefit standard must be maintained by each grantee in its program at all times unless waived by the authority. A waiver will only be approved when such a waiver will not prevent the authority from achieving an overall 70% benefit standard in the Virginia Rental Rehabilitation Program.

B. Family benefit. Each grantee must use at least 70% of its rental rehabilitation grant to rehabilitate units containing two or more bedrooms in accordance with 24 CFR 511.10(b). This standard must be maintained by each grantee in its program at all times unless waived by the authority. A waiver will only be approved when such a waiver will not prevent the authority from achieving an overall 70% standard in the Virginia Rental Rehabilitation Program, except in cases where the authority has applied for and received from HUD a special waiver from the 70% standard.

C. Funding priorities. Each grantee must include the following priorities in its method for selecting projects to receive rental rehabilitation funds.

1. Units occupied by very low income families. Each grantee must give funding priority to projects which contain substandard units which, prior to rehabilitation, are occupied by very low income families. This priority may include unoccupied units if the units could be expected to be occupied by very low income families but for the units' substandard condition.

2. Efficient use of grant funds. Each grantee must give funding priority to projects which require a minimum percentage of rental rehabilitation grant subsidy.

Proposed projects meeting these priorities, which are financially feasible and which meet all other program requirements, must be selected for funding prior to projects which do not meet the priorities. In cases where these priorities conflict, the first priority must be given precedence by grantees.

D. Adequate maintenance and operation of rehabilitated units. Each grantee must adopt one or more of the following measures to ensure adequate maintenance and operation of projects receiving rental rehabilitation funds:

1. Establishment of minimum equity requirements for investors;

2. Assignment of priority to projects in which private investors and lenders are taking a long-term financial risk in project success;

3. Restriction of funding to investors with a satisfactory record of maintaining and operating rental housing (the applicant must have standards and procedures for assessing an investor's record); or

4. Establishment of other reasonable standards and/or procedures for ensuring adequate maintenance and operation of rehabilitated units.

E. Project funding limits. Each grantee must comply with the maximum project funding limits set by 24 CFR 511.11(e).

F. Minimum level of rehabilitation. A grantee may establish a minimum level of rehabilitation to be required for participation in its rental rehabilitation program in excess of that established in 24 CFR 511.10(d).

G. Eligible rehabilitation costs. A grantee may use a rental rehabilitation grant only to cover costs permitted under 24 CFR 511.10(f). No more than 20% of the rental rehabilitation funds assigned to a project may be used to make relocation payments to tenants who are displaced by rehabilitation activity.

H. Displacement and tenant assistance. A grantee must provide any lower income family displaced from a project assisted by a rental rehabilitation grant with financial and advisory assistance as required by the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, 42 USC 4601. A family will be determined to be displaced in accordance with the definitions contained in 24 CFR 511.14. No tenant will be considered displaced if the tenant has been offered a decent, safe and sanitary dwelling unit in the project at an affordable rent.

I. Affirmative marketing. 00N2 Each grantee must ensure the affirmative marketing of units in rehabilitated projects with five or more residential units for a period of 10 years beginning on the date on which all the units in a project are completed, in accordance with 24 CFR 511.13(b). "Affirmative marketing" is defined as adherence to federal, state and local fair housing laws, and positive efforts to ensure that persons of similar income levels in the same housing market area are made aware of a housing project and its benefits regardless of race, creed, religion, national origin, sex or handicap. All fair housing laws must be scrupulously observed by those who participate in the Virginia rental rehabilitation program. Failure to comply with affirmative marketing requirements will subject the grantee and/or property owner to sanctions.

In order to meet its affirmative marketing responsibilities, each grantee must comply with, or ensure property owner compliance with, the following requirements and procedures:

1. General requirement. In conjunction with the marketing of all rehabilitated units, except for units occupied by families receiving Section 8 certificates or vouchers, the following five specific requirements must be met:

a. All advertising, brochures, leaflets and other printed material must include the Equal Housing Opportunity logo and the slogan or statement, and all advertising depicting persons must depict persons of majority and minority groups, including both sexes;

b. The Equal Housing Opportunity slogan, "Equal Housing Opportunity," utilized in the newspaper classified advertisements should be at least eight point boldface type, and display advertising must include the Equal Housing logo and slogan;

c. If other logotypes are used in the advertisement, then the Equal Opportunity logotype should be of a size equal to the largest of other logotypes;

d. All signs, off-site and on-site, must prominently display the logo and slogan, or the statement in a size that would not be smaller than the largest letters used on the sign; and

e. The logo and slogan, or the statement and the HUD Equal Housing Opportunity Poster (HUD Form 928.1 dated 7-75), must be prominently displayed in the on-site office or wherever applications are being taken.

2. Affirmative marketing plan. Any local government making application to the authority for a rental rehabilitation grant must submit as part of its application, on a form supplied by the authority, a local affirmative marketing plan covering the leasing of all rehabilitated units, except for those occupied by families receiving Section 8 certificates or vouchers. Such plan must include the following information for each neighborhood in which the local government proposes to operate a rental rehabilitation program:

a. An identification of the predominant racial/ethnic composition of the neighborhood;

b. An identification of the group(s) in the housing market area that are least likely to apply for housing in the neighborhood because of its location and other factors without special outreach efforts;

c. An identification of the types of advertising and outreach procedures (e.g., use of community contacts) which participating property owners may use to meet their affirmative marketing responsibilities;

d. A description of the information to be provided to participating property owners, their staff or managing agents to enable them to carry out their affirmative marketing and fair housing responsibilities; and

e. The anticipated results of the local affirmative marketing plan (i.e., the percent of vacancies expected to be filled by the identified target group(s)).

3. Affirmative marketing agreements. Any property owner applying for rental rehabilitation funds from a grantee must submit to such grantee a description of its proposed affirmative marketing procedures which must conform with the grantee's affirmative marketing plan. This description must be in a form prescribed by the grantee, and must include the form(s) of advertising and community contacts to be used by the owner or the owner's managing agent in publicizing all vacancies, except for units rented to families receiving Section 8 certificates or vouchers, in order to attract the group(s) identified by the grantee as being least likely to apply.

Upon approval of proposed efforts, owners must enter into a compliance agreement with the grantee which must include:

a. An agreement to comply with federal, state and local fair housing laws;

b. An agreement to carry out specified affirmative marketing procedures;

c. An agreement to maintain records on the racial/ethnic and gender characteristics of tenants occupying units before and after rehabilitation, records on tenants moving from and (initially after rehabilitation) into rehabilitated units, records on applications for tenancy within 90 days following completion of rehabilitation, data on the race and ethnicity of displaced households and, if available, the address of the housing units to which each displaced household relocated, and information documenting affirmative marketing efforts in a form specified by the grantee;

d. An agreement to report such information to the grantee on an annual basis; and

e. Sanctions to be imposed by the grantee in the event of noncompliance by the property owner.

Such agreement must be effective for a period of seven years beginning on the date on which the rehabilitation of the units in the projects is completed.

4. Grantee requirements. Each grantee shall be responsible for:

a. Informing property owners' staff and owners' managing agents of their responsibility to comply with federal, state and local fair housing laws;

b. Informing property owners of the affirmative marketing requirements of the Virginia Rental Rehabilitation Program, as well as the provisions of the grantee's affirmative marketing plan;

c. Reviewing and approving affirmative marketing procedures proposed by property owners;

d. Entering into legally binding affirmative marketing agreements with property owners;

e. Monitoring compliance by property owners with affirmative marketing agreements and imposing prescribed sanctions as necessary; and

f. Collecting, and reporting to the authority on an annual basis, information regarding the racial/ethnic and gender characteristics of tenants occupying units before and after rehabilitation, information on tenants moving from and (initially after rehabilitation) into rehabilitated units, records on applications for tenancy within 90 days following completion of rehabilitation, data on the race and ethnicity of displaced households and, if available, the address of the housing units to which each displaced household relocated, and information documenting property owner compliance with affirmative marketing requirements (e.g., records of all advertisements, notices and marketing information).

J. Use of minority and women's business enterprises. Each grantee must encourage the use of minority and women's business enterprises in connection with activities funded with rental rehabilitation grant monies in accordance with 24 CFR 511.13. Such efforts must include the following activities.

1. Targets. Upon entering into a grant agreement with the authority, each grantee must establish local dollar or other measurable targets based on factors that the grantee regards as appropriate and related to the purpose of its rental rehabilitation program. A copy of such targets must be forwarded to the authority prior to the drawing down of any grant funds.

2. List of businesses. Upon entering into a grant agreement with the authority, each grantee must prepare a list of minority and women's business enterprises which are potential suppliers or rehabilitation services and materials to property owners receiving grant assistance. A grantee should make use of the services of the Virginia Office of Minority Business Enterprise and appropriate federal agencies, as needed, in preparing such a list. Each grantee must forward a copy of the list to the authority prior to drawing down any grant funds.

3. Bid solicitation. Each grantee must make reasonable efforts to include qualified minority and women's business enterprises on bid solicitation lists and to ensure that such businesses are solicited whenever they are potential sources of services and materials.

4. Negotiated contracts. Whenever competitive bidding is not required of a property owner, the grantee must provide the property owner with a list of minority and women's business enterprises which are potential sources of services or materials.

5. Subcontracts. Each grantee must ensure that property owners require that all subcontractors be provided with a list of minority and women's businesses which are potential suppliers of materials or services.

6. Records. Each grantee must keep records of the number and dollar amount of participation by minority and women's business enterprises, including subcontractors and owners of rental properties, in connection with activities funded with rental rehabilitation grant monies.

K. Use of local area and minority contractors, suppliers and employees. Each grantee must encourage the use of local area and minority contractors, suppliers and employees in connection with activities funded with rental rehabilitation grant monies in accordance with 24 CFR 511.13. Such activities must include the development of a plan that includes the following elements:

1. Area definition. The plan must include a definition of the local area in which residents and businesses are the intended beneficiaries of rental rehabilitation activities (usually the applicant locality or, in the case of a town or small city, the locality plus the adjacent county).

2. Procedures. The plan must include procedures to be followed to encourage the use of local area and minority contractors, suppliers and employees in connection with activities funded with rental rehabilitation grant monies.

A copy of this plan (such federally required plans are often referred to as "Section 3 Plans") must be forwarded to the authority prior to the drawing down of any grant funds.

L. Architectural barriers to the handicapped. Each grantee must ensure that, in the case of projects involving the rehabilitation of 25 or more units where the cost of rehabilitation is greater than or equal to 75% of the value of the project after rehabilitation, the owner improves any unit occupied by a handicapped person prior to rehabilitation in a manner which removes architectural barriers in accordance with the requirements of 24 CFR 511.16(c).

M. Age discrimination in employment. Each grantee must ensure that property owners do not discriminate against employees based on age, nor that property owners use contractors who so discriminate, in accordance with 24 CFR 511.13(a)(2).

N. Labor standards. Each grantee must ensure that all laborers and mechanics, except laborers and mechanics employed by a local government acting as the principal contractor on the project, employed in the rehabilitation of a project receiving rental rehabilitation grant assistance that contains 12 or more units, are paid at the prevailing wage rates set under the Davis Bacon Act, 40 USC 276a, and that contracts involving their employment are subject to the provisions of the Contract Work Hours and Safety Standards Act, 40 USC 327, in accordance with the requirements of 24 CFR 511.16(a).

O. Environmental and historic reviews. Each grantee must comply with the environmental and historic review requirements contained in 24 CFR Part 58. Grantees must submit requests for release of funds to the authority for review. The authority will forward its recommendation, together with the request, the environmental certification and the objections, to HUD. All approvals for release of funds will be made by HUD.

P. Conflicts of interest. Each grantee must comply with the conflict of interest requirements contained in 24 CFR 511.12.

Q. Lead-based paint. Each grantee must ensure that any property owner receiving rental rehabilitation grant assistance takes steps to remove the hazards of lead-based paint in accordance with the requirements of 24 CFR Part 35.

R. Use of debarred, suspended or ineligible contractors. Each grantee must comply with the requirements of 24 CFR Part 24 in the employment, engagement of services, awarding of contracts, or funding of any contractors or subcontractors with rental rehabilitation grant funds.

S. Legal agreement with property owner. Each grantee must execute an agreement with the owner of a property receiving rental rehabilitation assistance, including a cooperative or mutual housing association, under which the owner:

1. Agrees, for a period of at least 10 years beginning on the date on which the rehabilitation of the units in the project is completed, not to:

a. Discriminate against prospective tenants on the basis of their receipt of, or eligibility for, housing assistance under any federal, state or local housing assistance program;

b. Discriminate against prospective tenants on the basis that the tenants have a minor child or children who will be residing with them, except for housing projects for elderly persons; and

c. Convert the units to condominium ownership or any form of ineligible cooperative ownership.

2. Agrees, for a period of 10 years beginning on the date on which the rehabilitation of the units in the project is completed, to:

a. Comply with federal, state or local fair housing laws;

b. Carry out specified affirmative marketing procedures; and

c. Maintain records on the racial/ethnic and gender characteristics of tenants occupying units before and after rehabilitation, records on tenants moving from and (initially after rehabilitation) into rehabilitated units, records on applications for tenancy within 90 days following completion of rehabilitation, data on the race and ethnicity of displaced households and, if available, the address of the housing units to which each displaced household relocated, and information documenting affirmative marketing efforts in a form specified by the grantee, and to report such information to the grantee on an annual basis (see 13VAC10-90-50 I 3).

Such agreement must contain sanctions to be imposed by the grantee in the event of noncompliance by the property owner. Guidelines are contained in 24 CFR 511.11(d)(1)(ii) and (iii).

Statutory Authority

§ 36-55.30:3 of the Code of Virginia.

Historical Notes

Derived from VR400-02-0008 § 5, eff. December 18, 1984; amended, Virginia Register Volume 4, Issue 21, eff. June 21, 1988; Volume 5, Issue 21, eff. July 1, 1989; Volume 7, Issue 25, eff. August 20, 1991.

13VAC10-90-60. Grant administration.

A. Responsibility for grant administration. Grantees are responsible for ensuring that rental rehabilitation grants are administered in accordance with the requirements of these rules and regulations, all applicable sections of 24 CFR Part 511 and other applicable state and federal laws.

B. Records to be maintained. Each grantee must maintain records specified by the authority that clearly document its performance under each requirement of these rules and regulations. Required records must be retained for a period of three years from the date of final close-out of the rental rehabilitation grant. Public disclosure of records and documents must comply with the requirements of 24 CFR 511.73(c).

C. Grant management and audit. Each grantee must comply with the policies, guidelines and requirements of 24 CFR 511.11(c) in the acceptance and use of rental rehabilitation grant funds. Access to grantee records and files must be provided in accordance with the requirements of 24 CFR 511.74. The financial management systems used by grantees must conform to the requirements of 24 CFR 511.75.

D. Disbursement of funds/cash management systems. Grant monies will be disbursed to grantees for payment of eligible program costs in accordance with the following procedures:

1. Project accounts. Grantees must identify to the authority each project for which they wish to provide rental rehabilitation funds and the amount of grant monies to be committed to each project. Upon receipt of all necessary project information, the authority will establish a project account with HUD.

2. Disbursement of funds. Grant monies will be disbursed on a project-by-project basis by electronic funds transfer to a designated depository institution in accordance with HUD procedures and guidelines. The authority will designate a depository institution and make all requests to HUD for funds transfer, unless such authority is formally delegated to a grantee by the authority. Grantees will notify the authority of the need for grant funds to pay eligible rehabilitation costs. the authority will in turn request HUD to transfer funds to the authority. Upon receipt of such monies, the authority will disburse grant funds to the grantee or, at the authority's option, the authority may, prior to receiving the grant funds requested from HUD, disburse to the grantee its own funds in an amount equal to such requested grant funds and reimburse itself with the HUD funds upon receipt thereof.

3. Conditions for requesting draw-downs of funds. Grantees must not request draw-downs of funds until such funds are actually needed for payment of eligible costs. A request for funds for payment of a contractor may only be made after the work has been inspected and found to be satisfactory. Grant funds must be drawn down at no greater proportion than the amount of rental rehabilitation funds in the project. For example, if on a $10,000 rehabilitation project, $5,000 of rental rehabilitation grant funds were provided and the construction was 50% complete, no more than $2,500 in rental rehabilitation grant funds could be drawn down for the project. Disbursement of any grant funds is conditioned on the submission of satisfactory information by the grantee about the project and compliance with other procedures established by the authority and HUD.

Statutory Authority

§ 36-55.30:3 of the Code of Virginia.

Historical Notes

Derived from VR400-02-0008 § 6, eff. December 18, 1984; amended, Virginia Register Volume 4, Issue 21, eff. June 21, 1988; Volume 5, Issue 21, eff. July 1, 1989; Volume 7, Issue 25, eff. August 20, 1991.

13VAC10-90-70. Allocation and administration of § 8 certificates and vouchers.

A. Allocation of rental assistance. Annually the authority will determine how many housing vouchers or certificates will be needed for in-place tenants who will require assistance for the next calendar year based upon an assessment of all pending rental rehabilitation program projects. This information along with an estimate of the grantee's turnover will be used to determine the minimum allocation of housing vouchers and certificates to be made to grantees under the VHDA Section 8 rental assistance program. The authority will then allocate at least the minimum allocation of housing vouchers and certificates to the grantees pending their availability from HUD. Those grantees who participate directly with HUD in the Section 8 program will receive their housing vouchers and certificates directly from HUD.

B. Administration of rental assistance. The authority will enter into Annual Contributions Contracts with HUD to administer contract authority for Section 8 certificates or vouchers allocated to Virginia for use in the Virginia Rental Rehabilitation Program. The authority will administer such contract authority in accordance with the applicable rules and regulations of the authority.

Statutory Authority

§ 36-55.30:3 of the Code of Virginia.

Historical Notes

Derived from VR400-02-0008 § 7, eff. December 18, 1984; amended, Virginia Register Volume 4, Issue 21, eff. June 21, 1988; Volume 5, Issue 21, eff. July 1, 1989; Volume 7, Issue 25, eff. August 20, 1991.

13VAC10-90-80. Annual performance review.

A. Performance elements. The authority will review the performance of all grantees in carrying out their responsibilities under these rules and regulations and under all the applicable requirements of 24 CFR Part 511 at least every two years. These reviews will analyze whether the grantee has:

1. Carried out its activities in a timely manner, including the commitment of rental rehabilitation grant funds to specific projects;

2. Has carried out its activities in accordance with all state and federal requirements; and

3. Has a continuing capacity to carry out its activities in a timely manner.

B. Grantee reports to the authority. Each grantee must submit the following reports to the authority at such times and in such formats as the authority may prescribe:

1. Management reports. Each grantee must submit reports to the authority on the management of its rental rehabilitation grant as requested by the authority.

2. Annual performance report. Each grantee must submit an annual performance report to the authority at such times as the authority may prescribe. This report must contain such information and be in such form as prescribed by the authority, and will include at least the elements prescribed in 24 CFR 511.81(2).

C. Remedial actions and sanctions. In the event of failure by a grantee to carry out its responsibilities in administering its rental rehabilitation grant, the authority will seek remedial actions on the part of the grantee and, if necessary, impose sanctions including the recapture of uncommitted rental rehabilitation grant funds and barring the local government from future participation in the Virginia Rental Rehabilitation Program.

Statutory Authority

§ 36-55.30:3 of the Code of Virginia.

Historical Notes

Derived from VR400-02-0008 § 8, eff. December 18, 1984; amended, Virginia Register Volume 4, Issue 21, eff. June 21, 1988; Volume 5, Issue 21, eff. July 1, 1989; Volume 7, Issue 25, eff. August 20, 1991.



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