ENDNOTES

1. A complete list of organizations participating in the survey is included in Appendix A, along with a copy of the survey. The counties included in the study area are listed in Appendix C.

2. National Association of Home Builders, "How Housing Effects the Economy," Housing Facts Figures and Trends 2001, 31-32.

3. The survey and a summary of results are in Appendix A.

4. Based on response to a survey of Delta CHDOs and community-based housing organizations.

5. Based on conversations with survey respondents and report contributors.

6. The Section 502 direct loan mortgage program permits no more than 41 percent of an applicant's income to be used for retiring debt.

8.

§ 92.208 Eligible community housing development organization (CHDO) operating expense and capacity building costs.

(a) Up to 5 percent of a participating jurisdiction's fiscal year HOME allocation may be used for the operating expenses of community housing development organizations (CHDOs). These funds may not be used to pay operating expenses incurred by a CHDO acting as a subrecipient or contractor under the HOME Program. Operating expenses means reasonable and necessary costs for the operation of the community housing development organization. Such costs include salaries, wages, and other employee compensation and benefits; employee education, training, and travel; rent; utilities; communication costs; taxes; insurance; equipment; materials and supplies.

The requirements and limitations on the receipt of these funds by CHDOs are set forth in § 92.300(e) and (f).

(b) HOME funds may be used for capacity building costs under § 92.300(b).

24 CFR Part 92 - HOME Investment Partnerships Program (2001), http://www.access.gpo.gov/nara/cfr/index.html.

9. Operational subsidies should be offered via an annual competitive application process that accounts for existing CHDO needs and opportunities to invest in the start-up of early stage CHDOs in areas that have no CHDO available. Operational subsidy should not require a current project application be submitted, but should consider how the CHDO will use the subsidy to leverage other operational resources during the grant period.

Capacity building monies should be offered on a case-by-case competitive application basis and should not be tied to project applications. Capacity building requests should consider how the training, equipment, expertise or other resource that is being purchased will help the organization fulfill its current work plan.

Wherever financially feasible, states should make an effort to secure training opportunities requested by one CHDO to other CHDOs by hosting in-state training series. Housing, finance and management industry certification programs that feature continuing education credits towards a degree in each state's university system are recommended. If fees are charged for training programs, the cost of the fee should not exceed the cost of training materials (books, CD materials, web-based access) and meals. These fees should be used to defray the costs of attendance to other nonprofit housing developers.

Reimbursement for travel and lodging should be accommodated whenever they are necessary to complete capacity building training offered for CHDOs.

10. The size limit for seed money loans would be no more than 10 percent of the total anticipated project cost, not to exceed $100,000. Interest would be set at 1 percent. The term of the loan should not exceed 3 years. The application process should consider an applicant's prior success with the proposed activity or project.

11. The range of assistance offered should include project-related problem solving, organizational development, management assistance and assistance with project planning. The conditions and terms of technical assistance offered should be developed in cooperation with CHDOs.

12. Calculated using data gathered online from HUD's Multifamily Tenant Characteristics System.

13. U.S. Department of Housing and Urban Development, Community Planning and Development Division, Notice CPD 01-4, Subject: Notice of procedures for designating consortia: HOME Investment Partnerships Program. (This Notice is included in Appendix B.)

14. RHS grants are restricted for use by elderly applicants to fund health and safety repairs only.

15. Based on conversations with selected survey respondents.

16.The Rural Housing Service defines elderly as age 62 and older.

17. A grant/loan combination is made if the applicant can repay part of the cost. Loans and grants can be combined for up to $27,500 in assistance.

18. The Delta Regional Authority was authorized by the Consolidated Appropriations Act, 2001, signed into law on December 21, 2000 (Public Law 106-554). The Authority covers 235 counties in eight states (Alabama, Arkansas, Illinois, Kentucky, Louisiana, Mississippi, Missouri and Tennessee). Its purpose is to assist economically distressed areas with planning and development, and it is authorized to receive $30 million in each of fiscal years 2001 and 2002 for that purpose.

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