RAD PIH Notice 2012-32 (.pdf, 1 MB) - National Low Income ...

Attachment 1A – Conversion Documentation and GuidelinesAny alterations of converted projects must meet the accessibility requirements of Section504 of the Rehabilitation Act of 1973 (24 CFR § 8.23) and any other applicable designand construction standards including the Fair Housing Act, where applicable.Additionally, housing first occupied after March 13, 1991, must comply with design andconstruction requirements of the Fair Housing Amendments Act of 1988 and itsimplementing regulations at 24 CFR § 100.25, as applicable. Furthermore, anysubstantial alterations of existing housing as defined in 24 CFR § 8.23, will trigger thenew construction requirements of 24 CFR § 8.22, which requires that a minimum of fivepercent or at least one unit, whichever is greater, is accessible for persons with mobilityimpairments and that an additional two percent of units or not less than one unit shall bemade accessible for individuals with visual or hearing impairments.In the event of owner default under the rehabilitation/construction agreement, the escrowagent, lender, or agent of the lender (as applicable) must notify HUD. Upon default, HUDwill require the owner to submit an action plan within 30-days. HUD reserves the right(but is not obligated), at any point during the remaining life of therehabilitation/construction escrow agreement, to take over administration of therehabilitation/construction, contract for the remaining repairs, pay for completion ofrepairs from rehabilitation/construction funds, place a lien on the project for any actualcosts of rehabilitation/construction and administration that exceed available funds in theescrow, and enforce the lien in the event of nonpayment.The project owner shall not be entitled to earn or receive cash flow distributions from theproject until after completion of construction, inspection, certification of all costs, andHUD acceptance of all rehabilitation/construction work.Covered projects will be subject to the requirements of Section 3 of the Housing Act of1968 for any repairs included in the approved Financing Plan that qualify asdevelopment, including rehabilitation. See 24 CFR Part 135.Projects with nine or more assisted units will be subject to Davis-Bacon prevailingwages, the Contract Work Hours and Safety Standards Act, and all other relatedregulations, rules and requirements for any repairs included in the approved FinancingPlan that qualify as development, including rehabilitation.PIH-2012-32 (HA) Rental Assistance Demonstration – Final Implementation 72