4.1 Execution of AHAP
After approval of the Final Feasibility Analysis and after the Owner has completed all the steps required before rehabilitation can begin, the BHA will prepare the AHAP and review it with the Owner. The BHA will then enter the starting date for the rehabilitation work and the deadline for its completion on the AHAP. The BHA will explain the rights and responsibilities under the AHAP and HAP Contract and emphasize the importance of timely and correct completion of the work. The Owner will sign the AHAP and submit it to the BHA to review and sign.
The AHAP will provide that the work must be completed and Contract executed within 12 months of execution of the Annual Contributions Contract (“ACC”) entered into between HUD and the BHA. HUD may reduce the number of Units or the amount of the annual contribution commitment if, in HUD’s determination, the BHA fails to demonstrate a good faith effort to adhere to this schedule or if other reasons justify reducing the number of Units. See 24 C.F.R. § 882.806(a)(2)(ii).
4.2 Pre-Construction Conference
The DND and BHA will hold a pre-construction conference with each Owner and contractor before work begins to review work items and cost estimates, obtain a signed copy of the rehabilitation contract for the files, explain the process by which the work will be inspected, and agree upon deadlines for completing the work. The DND and BHA will explain the procedure for requesting changes to the contract and/or work write-ups and provide the Owner and contractor with written materials describing any procedures not specified in the contract.
The pre-construction conference will also include a discussion of the effect of the rehabilitation work on the Tenants and the measures which will be taken to avoid damage to their personal property and disruption of their normal routine. If temporary relocation is required, the Owner will provide the BHA with a relocation plan and copies of all notices send to existing tenants. The Owner will then assume responsibility for notifying the tenant of the need to move temporarily and of their rights in connection with the relocation in compliance with Section 4.3.2 and 4.3.3.
4.3 Relocation
4.3.1 Minimizing Displacement
Owners must assure that they have taken all reasonable steps to minimize the displacement of persons (households, businesses, non-profit organizations, and farms) as a result of a project assisted under the Mod Rehab Program. To the extent feasible, residential tenants must be provided a reasonable opportunity to lease and occupy a suitable, decent, safe, sanitary, and affordable dwelling Unit in the project upon its completion. See 24 C.F.R. § 882.810(a)(1).
Whenever a building/complex is rehabilitated, and some but not all of the rehabilitated Units will be assisted upon completion of the rehabilitation, the relocation requirements of 24 C.F.R. § 882.810 apply to the occupants of each rehabilitated Unit, whether or not Mod Rehab Program assistance will be provided for the Unit. See 24 C.F.R. § 882.810(a)(2).
4.3.2 Relocation of Displaced Persons
A ``displaced person'' (as defined in 24 C.F.R. § 882.810(g)) must be provided relocation assistance at the levels described in, and in accordance with the requirements of, the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA) (42 U.S.C. 4601-4655) and implementing regulations in 49 CFR part 24. The Owner of a Mod Rehab or prospective Mod Rehab property shall notify displaced person of his or her rights under the Fair Housing Act (42 U.S.C. 3601-19) and, if the comparable replacement dwelling used to establish the amount of the replacement housing payment to be provided to a minority is located in an area of minority concentration, such person also must be given, if possible, referrals to comparable and suitable, decent, safe, and sanitary replacement dwellings not located in such areas.
4.3.3 Temporary Relocation
In accordance with 24 C.F.R. § 882.810(b), residential Tenants who will not be required to move permanently but who must relocate temporarily for the project will be provided:
(1) Reimbursement for all reasonable out-of-pocket expenses incurred in connection with the temporary relocation; and
(2) Appropriate advisory services, including reasonable advance written notice of:
(i) The date and approximate duration of the temporary relocation;
(ii) The location of the suitable, decent, safe, and sanitary dwelling to be made available for the temporary period;
(iii) The terms and conditions under which the Tenant may lease and occupy a suitable, decent, safe, and sanitary dwelling the project upon completion; and
(iv) The assistance required under item (1) of this section of the Administrative Plan.
4.3.4 Appealing Relocation Assistance Decision
A person who disagrees with the Owner’s determination concerning the amount of relocation assistance for which the person is eligible, may file a written appeal of that determination with the BHA. A person who is dissatisfied with the Owner’s determination on his or her appeal may submit a written request for review of that determination to the HUD field office. See 24 C.F.R. § 882.810(e).
The BHA shall also comply with the requirements of G.L. c. 79A and 760 CMR 27.00 to the extent that they supplement, and at times impose higher requirements than, federal law on relocation.
4.4 Timely Performance of Work
After execution of the AHAP, the Owner must promptly proceed with the rehabilitation work as provided in the AHAP. If the work is not so commenced, diligently continued, or completed, the BHA will have the right to rescind the AHAP, or take other appropriate action. See 24 C.F.R. § 882.806(a)(2)(i).
4.5 Inspection of Work and Monitoring of Program Requirements
The DND will monitor the progress of the rehabilitation by inspecting the work at least bi-weekly to ensure that it is proceeding on schedule and that the Owner is in compliance with the appropriate Labor Standards and Davis-Bacon Wage Rates (if applicable). Through the inspections, the DND will ensure that the work is accomplished in accordance with the terms of the AHAP, particularly that the work meets the acceptable levels of workmanship and materials specified in the work write-up. See 24 C.F.R. § 882.806(a)(3). The Owner (and the local Code Inspector(s) when appropriate or required) will normally be asked to accompany the DND Inspectors. Copies of all these reports shall be supplied to the BHA by DND.
During the rehabilitation process, the DND will review on a bi-weekly basis the percentage of work actually completed and the established deadline for completion of rehabilitation. The bi-weekly reports will also include comments on any current or anticipated problems. The BHA shall be informed of the results of all DND inspections.
The BHA shall final accountability and control regarding the requirement set forth in this Section.
4.6 Change Orders
Contractors will be required to request and obtain written approval from the DND and BHA for any changes to the work specified in the AHAP that would alter the design or the quality of the required rehabilitation or increase the Contract amount. Change orders will generally not be approved unless the circumstances giving rise to the proposed change are beyond the contractor’s control and/or the change is in the best interest of the rehabilitation project. Where appropriate, the BHA may condition its approval of changes on a reduction of the Contract amount and the proposed Contract Rents. The BHA will be responsible for monitoring the use of any Contract contingency amount in order to ensure that it is not exceeded due to change orders. See 24 C.F.R. § 882.806(d).
Every attempt will be made to avoid the necessity of requesting rent increases in excess of approved FMRs due to unanticipated work. Thorough initial inspections and work write-ups in conjunction with a high frequency of inspections will minimize requests for rent increases above the FMRs. The BHA is aware that no increase in the Contract Rent(s) due to unanticipated work items will be approved without the review and approval of HUD.
4.6.1 Changes Made Without BHA Approval
If changes to the work are made without prior BHA approval, the BHA may determine that Contract Rents must be reduced or that the Owner must remedy any deficiency as a condition for acceptance of the Unit(s). See 24 C.F.R. § 882.806(d).
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