Rd instruction 1944-n table of Contents




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15

(Revision 1)


(09-01-93) PN 212

RD Instruction 1944-N

§ 1944.664(f) (Con.)
work must be combined with improvements listed as eligible under paragraph (c) of this section. These improvements may include, but are not limited to the following:
(1) Painting;
(2) Paneling;
(3) Floor covering, including carpeting;
(4) Improving clothes closets or shelving;
(5) Improving kitchen cabinets;
(6) Air conditioning; or
(7) Landscape plantings.
(g) Under the following conditions, HPG funds may be used to reimburse the grantee for authorized housing preservation or replacement housing activities performed by employees of the grantee where the grantee acts as a construction contractor and furnishes construction services:
(1) The grantee must demonstrate that such work performed by the grantee results in cost savings in terms of time and labor over cost for such work prevailing in the area;
(2) The grantee has established a process for third party review of all performance by a local government, building inspector or other independent party;
(3) The grantee has established or makes available a process that provides for consumer protection to the individual homeowner, owner of a rental property, or co-op assisted; and
(4) The grantee's accounting system provides a clear delineation between administrative costs and construction contractor (non-administrative) costs.
(h) HPG funds may not be used to:
(1) Assist in the construction or completion of an addition (excluding paragraph (c)(11) of this section) or a new dwelling. This paragraph does not apply to replacement housing.
(2) Refinance any debt or obligation of the grantee, the individual homeowner, owners of a rental property, or co-ops other than


16

(Revision 1)


RD Instruction 1944-N

§ 1944.664(h) (Con.)


obligations incurred for eligible items covered by this section entered into after the date of agreement with the HPG grantee.
(3) Repair or rehabilitate as well as replace any property located in the Coastal Barrier Resources System.
§ 1944.665 Supervision and inspection of work. (Revised 06-12-97,
SPECIAL PN.)
Grantees are responsible for supervising all rehabilitation and repair work, as well as replacement housing financed with HPG assistance. After all HPG work has been completed, a final inspection must be done by a disinterested third party, such as local building and code enforcement officials. If there are no such officials serving the area where HPG activities will be undertaken, or if the grantee would also normally make such inspections, the grantee must use qualified contract or fee inspectors.
§ 1944.666 Administrative activities and policies.
Grant funds are to be used primarily for housing repair and rehabilitation activities. Use of grant funds for direct and indirect administrative costs is a secondary purpose and must not exceed 20 percent of the HPG funds awarded to the grantee.
(a) Administrative expenses may include:
(1) Payment of reasonable salaries or contracts for professional, technical, and clerical staff actively assisting in the delivery of the HPG project.
(2) Payment of necessary and reasonable office expenses such as office rental, supplies, utilities, telephone services, and equipment. (Any item of nonexpendable personal property having a unit value of $1,000 or more, acquired with HPG funds, will be specifically identified to RHS in writing.)
(3) Payment of necessary and reasonable administrative costs such as workers' compensation, liability insurance, and the employer's share of Social Security and health benefits. Payments to private retirement funds are permitted if the grantee already has such a fund established and ongoing.
(4) Payment of reasonable fees for necessary training of grantee personnel.
(5) Payment of necessary and reasonable costs for an audit upon expiration of the grant agreement.

17

(Revision 1)


(09-01-93) PN 212

RD Instruction 1944-N

§ 1944.666(a) (Con.)

(6) Other reasonable travel and miscellaneous expenses necessary to accomplish the objectives of the specific HPG grant which were anticipated in the individual HPG grant proposal and which have been approved as eligible expenses at the time of grant approval.


(b) HPG administrative funds may not be used for:
(1) Preparing housing development plans and strategies except as necessary to accomplish the specific objectives of the HPG project.
(2) Substitution of any financial support previously provided or currently available from any other source.
(3) Reimbursing personnel to perform construction related to housing preservation assistance. Non-administrative funds may be used if construction is for housing preservation assistance under the provisions of § 1944.664 (g) of this subpart.
(Revised 06-12-97, SPECIAL PN.)
(4) Buying property of any kind from persons receiving assistance from the grantee under the terms of the HPG agreement.
(5) Paying for or reimbursing the grantee for any expense or debts incurred before RHS executes the grant agreement.
(6) Paying any debts, expenses, or costs which should be the responsibility of the individual homeowner, owner, tenant or household member of a rental property, or owner (member) or non-member of a co-op receiving HPG assistance outside the costs of repair and rehabilitation as well as for replacement housing (individual homeowners only). (Revised 06-12-97, SPECIAL PN.)
(7) Any type of political activities prohibited by the Office of Management and Budget (OMB) Circular A-122.
(8) Other costs including contributions and donations, entertainment, fines and penalties, interest and other financial costs unrelated to the HPG assistance to be provided, legislative expenses, and any excess of cost from other grant agreements.
(9) Paying added salaries for employees paid by other sources, i.e., public agencies who pay employees to handle grants.


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