Pre-Application Best Practices Training

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Pre-Application Best Practices Training

• Prepared by NCALL Research, Inc.
• Updated February 2009

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• Throughout this slide presentation, NCALLs
  recommended best practices will be denoted with
  a BP.

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Introduction
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Whats the Difference Between a Pre-Application
and a Final Application?

• Pre-Applications purpose, to demonstrate
• Need for the self-help program in an area(s)
• Organizational capability
• Organizational eligibility
• If approved, organization can begin working on
  the 523 Application
• Preparing the 523 Pre-Application can take up to
  one year
• BP RD does not reimburse for funds expended
  before the grant period begins!

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• Organizations must pay for
• The cost of developing the 523 Pre-Application
• Feasibility study
• Program and organizational development
• Preparing the 523 Pre-Application
• BP Seek other funds or raise funds from other
  sources

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Rural Development

• Four office levels
• National Office
• Develops policy, interacts with Congress,
  approves applications
• State Office
• Allocates 502 funds based on a state formula,
  approves smaller grants
• Area Office
• Responsible for the 523 grant
• Local Office
• Makes and monitors the 502 loans, co-signer for
  checking accounts, construction inspections

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• RD provides administrative and loan funds
• Expects grantees to carry out grant agreement
• BP A grantees working relationship with RD is
  critical to the success of the program

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NCALL and You

• NCALL is available throughout the application
  process and in administering the self-help
  program
• BP Use us as a resource anytime assistance is
  needed

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B. Pre-Application Format
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Required Format

• The pre-application
• Format is very important
• Is required by RD to be in a specified order
• Must be submitted in a three-ring binder with
  table of contents and tabbed sections
• BP Use NCALLs Pre-App checklist as your guide

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1a. Standard Form 424, Application for Federal
Assistance, Version 2

• First form that the reviewer of your application
  will see
• It should provide RD with
• How many homes to be built
• During what period of time
• In what areas
• With what funds

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• These blank forms can be obtained from
• State or Area RD office
• NCALL Research, Inc.
• Whitehouse.gov/omb/grants/sf424.pdf
• BP Want it fillable? Go to www.hudclips.org

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1b. Survey on Ensuring Equal Opportunity for
Applicants

• This survey helps to ensure that the government
  is fairly distributing grant funds
• See Guide for sample

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2. Intergovernmental Review Submittal

• Intergovernmental Review, State Point of Contact
  (SPOC) List fosters intergovernmental partnership
  and strengthens federalism
• For list of appropriate contacts, see Guide or
  visit www.whitehouse.gov/omb/grants/spoc.pdf.

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3. Previous Experience

• RD requires that the organization have the
  financial, legal, and administrative capacity to
  carry out the responsibilities of the Grant
  Agreement
• vs.

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• BP A narrative statement about the
  organizations previous experience and capacity
  to carry out the Grant Agreement is required. It
  may include
• Summaries of previous and current RD funded
  programs
• Summaries of previous and current other programs
• Description of current capabilities
• Experience or capability of relevant staff and
  Board members
• Objectives of the organization
• One must be Production of affordable housing

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4. Evidence of Organization

• A copy of the provisions of state law under which
  the corporation was organized, or an accurate
  reference to the provisions organized under
• Articles of Incorporation (certified, signed and
  dated)
• Bylaws (certified, signed and dated)
• Board list (5, names, addresses, titles)
• Certificate of Incorporation
• 501(c)(3) certificate
• Evidence of good standing from Secretary of State
• If another organization is a member of your
  organization its name, address and principal
  business
• If not formally organized, submit proposed
  documents

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5. Authorized Representative of Applicant

• Provide the name, address and official position
  of the applicants representative that is
  authorized to act for the applicant and work with
  RD

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6. Information About Sponsor

• A sponsor is an organization that must have the
  background, experience and financial ability to
  help your organization in applying for the 523
  Grant and in carrying out the responsibilities of
  the Grant Agreement
• A written agreement must be shown to RD
• A narrative of sponsors experience and
  capabilities is required (same organizational
  information as required in Section 3)
• If no sponsor, indicate Not Applicable

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7. Current Financial Statement

• A financial statement is required and should be
  prepared by an accountant (or sponsors
  accountant), and must be no more than 12 months
  old
• It must be dated and signed by the Executive
  Director or Board President
• Specific nature of assets and liabilities must be
  identified
• An audit may be used in lieu of financial
  statement

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8. Narrative Statement

• The narrative statement should begin with a short
  paragraph that summarizes
• How many homes are being planned
• What area they will be built
• How much grant funds are being requested
• What time period is planned (usually 24 months
  but can be less)

NARRATIVE STATEMENT
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• A description of the area to be served is needed
• BP Include maps, population and housing
  statistics
• BP Collect current data, include only what
  supports the need
• Sources U.S. Census, State Housing Finance
  Authority, local government housing plan, area
  housing authorities, area Board of Realtors

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• Include housing conditions and why families need
  self-help housing
• BP Analyze your data for comprehension. What
  does it show? Growth? Substandard housing? Income
  qualifications? Vacant rentals? Cost of housing?
• A need occurs when very low and low income
  families want their own homes but adequate,
  affordable housing is not available to them!

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• BP Prove affordability!
• Estimate the cost of the self-help homes to the
  participants
• Give estimate of monthly principle, interest,
  taxes, insurance (PITI) payments and total debt
  ratios
• Compare this figure to the cost of homes in the
  area

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• Provide evidence of low-income families willing
  to contribute labor
• Document names, addresses, number in household,
  total annual incomes and date of contact
• BP NCALL recommends that organizations obtain at
  least twice as many potential participants and
  would be needed to complete the grant
• BP Include a statement on the list that the
  participants have had the program explained to
  them and are interested in participation and
  providing required own labor
• See sample form in Guide

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• Evidence of community support is required
• Include letters of support from local officials,
  individuals and community organizations
• BP Develop and distribute brochures or fact
  sheets. Develop a relationship with the media.
  Know the benefits and drawbacks of the program.
  You will be asked!

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• Benefits of community support
• Help organization with leveraging additional
  dollars for incorporation and start up
• Provide needed political support from town and
  county governments
• Help create a positive self-help housing image

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• Sources of community support
• Those in need of improved housing
• Town and county governments
• Churches/religious groups
• Civic organizations
• Social service agencies
• Other nonprofits
• General public
• Business/industry sectors
• Media

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9. Outreach Plan for Very Low Income

• A plan is required of how you propose to reach
  the very low income families
• It is important to reach families that are living
  in housing that is deteriorated, dilapidate, over
  crowded or lacking in adequate plumbing
• VLI- Minimum of 40 of total families building in
  program must be VLI
• Develop a marketing strategy that will reach and
  recruit the families needed for your program
• Very Low Income (VLI) 50 of area median income
  or below
• Low Income (LI) Between 51 80 of area median
  income

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10. Budget Information Non Construction

• SF 424A
• Budget Narrative
• Method of TA Costs

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• Proposed budget must be on form SF-424A, Budget
  Information (Non-Construction Programs)
• Use the example in Guide to complete this form or
  go to www.hudclips.org
• BP Also include a detailed budget and a budget
  narrative
• This will come in handy when completing the Final
  Application

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• Authorized expenses
• Personnel salaries
• Reasonable office expenses and supplies
• Employment benefit costs
• Purchase or lease of power tools
• Insurance
• Reasonable fees for training
• Consultant and legal fees
• Annual audits
• Prohibited use of funds
• Paying for labor on the houses
• Purchasing real estate or building materials for
  the families
• Paying any debts, expenses or costs to the
  participants
• Any lobbying activities prohibited in OMB
  Circular A-122

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• See Guide for
• SF 424A (rev. 7/97) and instructions
• BP Preliminary Budget Preparation Guide
• BP Budget Worksheet
• BP Sample Budget Narrative

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• National Self-Help Housing Directors Association
  (NSHHDA)
• An organization consisting of self-help housing
  grantees across the nation unified by voice and
  cause
• Annual dues are required to join the association
  and are allowable under the Section 523 Self-Help
  Housing Grant
• Dues help to lobby Congress for increased funding
  and improved laws to assist the cause of rural
  housing

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• Current annual dues for NSHHDA
• 523 Grant Amount Dues
• 0 - 200,000 200
• 200,001 - 500,000 300
• 500,001 - 1,000,000 400
• Over 1 million 500
• BP Dont forget to add this expense into your
  budget!

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11. Determination of TA Grant Amount

• Maximum TA Amount Calculation is required
• A letter from RD identifying what the EVMH is for
  proposed counties
• TA Cost is the technical assistance (TA) cost per
  house and is a guide that RD uses to estimate
  reasonable cost of a self-help program
• TA cost Total grant amount / of houses
  organization proposes to build
• Example 228,000 / 12 homes 19,000 maximum TA
  cost per house

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• Method A The Equivalent Value of Modest Housing
  (EVMH) x 15 x Number of Homes Proposed Maximum
  TA Budget
• ________ x .15 x _____ _____________
• Example
• EVMH 115,500 x .15 17,325 (TA per home) x
  12 homes 207,900 (amount of grant request)

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• Method B EVMH Average mortgage - 1,000
  Maximum TA cost per house (This can only be used
  by experienced grantees or those who know what
  their mortgages will be.)
• Example 128,000-105,000-1,00022,000
• Method C Amount established by the State
  Director to accomplish a particular goal
• BP Use worksheet on page 83 to calculate maximum
  per unit TA amount

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• BP Do a realistic budget before determining your
  TA grant amount to see if your budget is truly
  realistic and falls within RDs guidelines
• The TA Grant amount depends on organizations
  experience and capacity
• Maximum amount for any grant period will be
  limited to a certain TA cost per house

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12. Preliminary Land Survey

• Proof of available lots
• BP Include at least the minimum amount of lots
  for the Pre-Application
• Use MLS listings or deeds if the land is already
  owned
• BP Include narrative detailing expected cost and
  anticipated development
• Maps showing local and regional area are also
  required

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• During Final Application, you will need to show
  RD proof of control of lots or access to suitable
  building sites as defined by RD
• The more work that you do now, the less that you
  will have to do later
• BP Land is a scarce resource suitable land even
  more scarce. Many programs have failed or gotten
  off to a rough start due to land delays. Work
  closely with RD to find possible lots.

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• BP Subdivisions are time consuming, come with
  many delays and have too many unknown variables.
  If possible, find developed lots for your first
  grant.

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13. Other Applicant Activities Indirect/Direct
Cost

• List all of the other activities that the
  organization is engaged in and expects to
  continue
• Include brief description of the programs and
  organizations role in them
• Indirect cost rate or direct cost allocation plan
  required
• Document the indirect cost rate or the lack
  thereof
• If an organization has never obtained an indirect
  cost rate, grantee must submit the indirect or
  direct cost policy with the 523 pre-application
• Prepare proposal for submission to DOI for
  approval
• DOI will not review proposal until grant is
  approved

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• Indirect Cost
• Mechanism used by federal government
• Recommended when shared costs become impractical
  to be charged directly to various funding sources
• Direct Cost Allocation
• Used by single funded organizations or those
  which can track costs consistently
• RD has a contract with Department of Interiors
  National Business Center to approve cost policies

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• Cognizant agency
• Usually the largest federal funding source of an
  organization
• Acts on behalf of all other federal agencies in
  approving an organizations indirect cost rate or
  direct cost allocation plan
• RD has contracted with the Department of
  Interiors National Business Center (DOI)
• DOI may help design and will have to approve the
  cost plan
• Indirect cost rate is proposed to the cognizant
  agency and then an agreement is reached
• If the USDA RD 523 grant is the largest federal
  funding source, the indirect cost rate proposal
  and/or cost allocation plan needs to be submitted
  to DOI

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• BP When comparing which method to use, consider
  the time and money required to achieve the
  greater degree of accuracy, avoiding inconsistent
  costing
• BP Expedite application processing by
• Including a cover letter stating that your
  organization currently receives funds from USDA
  RD
• Include the most recent audited financial
  statements
• Need more information or sample forms? Go to
  http//www.nbc.gov/icsprep.html

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• BP Remember teamwork, if assistance is needed in
  developing a plan, contact NCALL, RD or the DOI
  for help
• See Guide for Sample Allocation of Shared Costs
  Using a Direct Cost Allocation System
• See Guide for Sample Allocation of Shared Costs
  Using a Indirect Cost Rate System

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14. Pre-Development Grant Assistance Request

• Pre-Development Funds
• Purpose is to provide funds to develop a 523
  final grant application
• Available once for a defined area (for existing
  or potential grantees)
• Requesting organization must lack the financial
  resources necessary to develop the final
  application
• Grants are for up to 10,000 for up to six months

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• If requesting pre-development funds include
• Brief narrative identifying the need, amount of
  funds needed and projected time period
• Budget
• You may request up to 10,000 for up to 6 months
• If not requesting pre-developing funds include
• Include a sentence to that effect in the
  pre-application

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• If funding is available and the pre-application
  is reviewed and approved, the RD State Director
  may approve the request
• Pre-development grant is not figured in the TA
  cost per unit
• Detailed accounting records of these funds must
  be maintained
• Authorized and prohibited uses of pre-development
  funds same as those of 523 grant
• BP See Guide for sample request

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15. HUD Fair Housing Marketing Plan 935.2B
(8/2006)

• Affirmative Far Housing Marketing Plan
• HUD Form 935.2b, required for self-help program
• Follow instructions
• Use accurate information
• Marketing plan designed to attract those least
  likely to apply
• Special outreach for those groups required
• Plan approved and monitored by Rural Development
• See Form in Guide

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16. Civil Rights Impact Analysis Certification,
Form RD 2006-38

• 2006-P, 2006.754(b)
• Complete this form and include it in the
  application

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17. Compliance Review (Pre-award)

• Form RD 400-8
• Hold a section for this to be added later by RD

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18. Self-Help Technical Assistance Grant
Pre-Development Agreement

• 1944-I, Exhibit D
• Sign and include this form if requesting
  Pre-Development Grant
• Do not date
• Will be dated when executed by RD
• See Guide for Agreement
• If not requesting Pre-Development Grant, include
  this section but write Not Applicable

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19. Authorizing Resolution

• A resolution must be adopted by the Board of
  Directors
• Authorizing one or more specified persons are
  authorized to act on organizations behalf
• It must state that they are able to
• Sign the Grant Agreement, 1994-I, Exhibit A
• Sign Form RD 400-4 Assurance Agreement
• Work with RD on the self-help program
• Must include authorized persons name, title,
  address

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20. RD Managers or Area Managers Recommendation

• Hold a section for this to be added later by RD

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21. TMA Contractors Review and Recommendation

• Hold a section for this to be added later by RD
• Required under National Office Contract

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22. OGC Review (if necessary)

• If necessary, RD may send organizational
  documents for OGC for their review
• Hold a section for this to be added later by RD

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23. Review Action and Letter of Conditions

• Hold a section for this to be added later by RD

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24. Request for Obligation of Funds Form RD

• Include this completed form, RD 1940-1
• At item 45, on the back, have the authorized
  representative sign and date two copies of the
  form
• See Guide for sample

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C. Putting the Pre-Application Together
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Putting the Pre-Application Together

• BP Use the RD Checklist for order and format
• BP Include Table of Contents and tab the
  sections to make the information easier to locate
• BP Check every page for completeness, signatures
  and dates (RD will return the pre-application if
  it is not complete and in order of the Table of
  Contents)

REJECTED PRE-APPLICATION!
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• BP NCALL recommends that organizations send
  their pre-application to us first
• This is considered a DRAFT
• We perform a DRAFT review that will give you
  feedback on content and completion
• Make adjustments
• Draft is now an Official Pre-Application

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• BP Make three copies of the Official
  Pre-Application
• Official and two copies goes to RD office
  designated to receive the grant application
• You keep a copy!
• RD will keep a copy and send NCALL a copy for
  review
• NCALLs review must be completed within 15
  calendar days
• NCALLs review letter goes to the State Director
• You cannot send or give NCALL a copy!

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• Review Process
• The review process should take 60 days or less
• RD does their review only if the application is
  complete!
• RD verifies that a need exists and that adequate
  resources will be available for the program

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• Approval
• If complete, State Director requests approval
  from National Office
• Once obligated, AD-622 and Letter of Conditions
  issued
• BP When you receive notice, notify NCALL so we
  can set up future training (forward to us a copy
  of the grant agreement)

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D. Developing a Self-Help Housing Program / Know
the Program
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Developing a Self-Help Housing Program

• BP Be realistic. Go into the process with your
  eyes open
• BP Know that this is a lengthy process
• BP Recognize the commitment of staff and board
  time
• BP Be aware that housing is a political animal
  and requires community support
• BP Dont expect overnight success
• BP Set realistic expectations

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• BP Be committed and serious about developing a
  self-help program
• Housing will need to be a priority for you
• Accountabilities are high
• Strive to meet time frames set
• Recognize fiscal responsibilities and advantages
  of self-help housing for your organization

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• BP Other ingredients to develop a successful
  self-help housing program include
• Obtain all applicable housing regulations
• Subscribe to or request housing publications such
  as HAC News, NRHC Legislative Update, NCALLs
  Self-Helper
• Have access to federal and state registers
• Join the mailing list of your state housing
  finance agency

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• Build a housing resource library
• Join your state housing coalitions
• Join local and state chapters of NAHRO, CHRB,
  etc.
• Know your local housing market
• Provide proper orientations and training of the
  program for board and staff
• Visit another self-help housing organization

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Program Decisions

• BP Determine the number of homes to build
• Be very realistic!
• Consider availability of suitable building sites
• Consider need for housing in your selected area
• Consider number of persons eligible to participate

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• BP Determine ways in which to reach very-low
  income
• Know your target market
• This will help you determine methods of outreach,
  time needed, manpower necessary and cost
• There is more on recruitment later in the training

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• BP Determine staff needs and size
• Should correlate with number of homes to be built
• Traditionally, staff consists of ¾ people
• Executive Director/Project Director
• Group Coordinator/Loan Packager
• Secretary/Bookkeeper
• Construction Supervisor

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Know the Program

• BP RD instructions provide policy, guide, and
  basis for the program operations. Be familiar
  with them.
• Use the internet as needed to look up regulations
  and information, rurdev.usda.gov /regs/
• BP Know 1944-I!
• Please refer to the manual for a list of other
  regulations to become familiar with

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• BP You can print out the 1944-I and HB-1 3550
  but these instructions change often, so we
  encourage the use of the internet

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Project Planning and Management

• Project
• SH project have a beginning and an end
• Should be carried out with the intent of meeting
  established program goals
• Costs, time schedule, and objectives are
  predetermined
• Project vs. Organizational
• Project decisions approached differently than
  organizational
• Project focuses on specific time and results vs.
  organizations plan to exist indefinitely
• Projects need part-time resources vs.
  organizations need resources full-time

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• BP Four phases of project management
• Conceiving and defining feasibility and
  pre-application
• Planning final application stage
• Implementing grant closing to grant close out
  (1-2 years)
• Completing and evaluating happens internally by
  management and the Board and externally by RD
  with Final Evaluation

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• Planning the Project
• Planning is crucial in project management
• Not a to do list
• Plan transforms work from a series of steps into
  a bundle of responsibilities for results
• A good plan tells you where you are going, how to
  get there and how you know that you have arrived

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Planning the Project

• Planning Steps
• Establish project objectives
• Choose basic strategy for achieving the objective
• Subdivide project into subunits or steps
• Design necessary staffing pattern
• Design cost for each subunit
• A good budgets main function is to monitor the
  cost and to avoid overruns
• You cannot estimate cost until you break down the
  budget into line-items.
• Determine what training is needed for team
  members
• Develop necessary policies and procedures
• Develop a plan of action

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Participant Recruitment Program Marketing
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Introduction

• BP No matter what happens, remember these three
  rules
• Do not get discouraged
• Try something new
• Plan ahead

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Developing a Recruitment Plan

• Step 1 - Know Your Target Market
• Where is your targeted market located? Work,
  church, home, clubs, PTA, etc.
• What media reaches them? Radio, TV, newspaper,
  etc.
• Where do they go and when? Laundromats, gas
  stations, grocery stores, restaurants, daycare,
  community events
• Who are your community partners? Social service
  agencies, lenders, rental agencies, realtors

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• Ask the people who respond to recruitment efforts
• Ask social service agencies
• Step Two Analyze the Information
• Review the data collected to determine where and
  how to reach most families

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• Step Three Investigate
• Contact organizations, employers, churches, radio
  stations, newspapers, etc.
• Get the word out about your program!
• What are your costs? Are there other FREE methods
  available?

86

• Step Four Plan and Make Decisions
• Can you delegate tasks?
• Do you have to do everything yourself?
• What are your time frames and dates for
  objectives?
• Cost is also very important. What does your
  marketing and advertising budget look like?
• How can you make your program its most effective?
  
• Refer back to Recruitment Methods for some ideas

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• Step Five Develop a Message
• Before contacting the media or producing
  brochures, know what you want to say
• The message is not and should not be intended to
  tell everything about the program.
• All advertisements must have the equal housing
  opportunity logotype or slogan on them

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• Five elements of a good message
• Attract Attention Create interest
• Stress Advantages Benefits of the Self-Help
  Housing Program
• Prove What you Say is True
• Persuade
• Ask for Action

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89

• Attract Attention
• An Attention Getter is needed to create
  interest
• Could be a photo
• Use of color
• Exciting statement or question

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90

• Stress Advantages and Benefits
• Product the home itself
• Price Low cost of the home, Low interest rate,
  Families save money
• Self - Learning skills, improving their life,
  becoming independent
• Make a list and prioritize the benefits for your
  potential participants

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91

• Benefits of Self-Help Housing
• Means different things to different people
• Decide which aspects are important to your
  targeted market
• Incorporate these aspects into the message
• Do not incorporate too many benefits

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Sample Chart of Potential Benefits

• Self Stress Improvements
• Sense of accomplishment
• Independence
• Improving yourself
• Doing better for yourself
• Security. Happiness.
• Better, safer environment for family
• Develop construction/maintenance skills

• Product Stress Advantage
• Modern convenient,
• well built
• Energy-efficient
• Quality materials
• Maintenance free
• Designed to meet your needs
• Modern appliances

• Price Stress Value
• House payments based on ability to pay
• No down payment
• Save money
• Affordable financing
• Best financing in the country for new
  construction

92
93

• BP Prove What You Say Is True
• Four tactics can be used
• 1. Testimonials Past client speaks of benefits
• 2. Comparative quality Comparison between
  self-help home vs. contractor built home
• 3. Reputation - If your organization has a good
  reputation in the community, use it
• 4. Successful Performance After 1st group is
  complete, potential families and community
  members see successful program and nice homes

93
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• Persuade
• Get the potential participants to grasp that they
  can enjoy the benefits and rewards of becoming a
  successful homeowner
• Many think that they cannot be a homeowner

94
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• Ask for Action
• Call today
• Coming by our office
• Attending the community meeting
• Mail in a coupon, etc.
• Make it easy
• Always be prepared

95
96
Recruitment Methods to Try

• Newspapers Both daily and weekly, try free and
  paid advertising, featured article, ad
  positioning is critical, classified adds great in
  some areas, activities announcements
• Radio - paid ads, PSAs, talk shows, interviews
• Television - featured on the local news, local
  community forum programs or PSAs

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97

• Flyers, Posters, Handouts - simple, easy to read,
  attractive flyers for public distribution in RD
  offices, stores, laundromats, CAP agencies,
  social service agencies, community bulletin
  boards, restaurant, etc.
• Brochures can be the best marketing tool used,
  place in supermarkets, laundromats, restaurants,
  waiting areas, public service facilities
• Direct Mailings - can be expensive, may be more
  rewarding, church mailings, waiting lists for
  subsidized rental housing, enlist assistance of
  social service agencies, AFDC agencies and local
  employers

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98

• BP Community Meetings
• Trade Shows, Human Service Fairs, Mall Exhibits,
  Community Fairs - consider time and effort needed
• Organizations, Colleges, Trade Schools,
  Headstart, Migrant Education Centers
• Community Action Agencies (CAA)
• Churches

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• Local governments referrals for families, land,
  grants
• Local employees - post brochures on their
  bulletin board, stuff employee paycheck
  envelopes, or set up a table in the break/lunch
  area
• Contact members of low-income apartment complexes
  
• Host a tenants meeting
• Ask to distribute letters to persons on waiting
  lists for subsidized rental housing
• Meet with a core group of social service repr.,
  brainstorm on how to reach families

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100

• BP Recruitment Methods
• Try many options to determine what works best for
  you
• Stay in contact with the local media
• Try the classified ads!
• Radio stations morning program usually have a
  larger target listening area
• TV try to get a local featured interview.
  Public service announcements (PSA) are free use
  them!
• Paper distribution - Flyers, posters, handouts,
  brochures

101
Market Research

• Eliminates trial and error in recruitment
• Know which methods worked best and are reaching
  target market
• Survey those who have responded to recruitment
  efforts (See sample in Guide)
• Continuously review and revise strategies to keep
  activities alive
• Your goal should be to have word of mouth work
  for you

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102
The News Release

• Major vehicle for communicating with the media
• Knowing the purpose, design and uses for them can
  improve your chances of getting published
• BP Send a thank you note for any publicity
  your agency receives

102
103

• The following guidelines should be useful
• Decide on the message must be interesting to
  target market
• Select the media message and intended audience
  usually drives which media to use
• Put it in writing prepare a properly written
  release
• Mail to the right person
• Mail by the deadline

103
104

• Content of the Release
• Familiarize yourself with chosen publication
• Select information of interest
• Remember the 5 Ws Who, what, when, where, why
  and sometimes how
• Be sure that they are all in the story

104
105

• News Release Tips
• Keep it brief
• Write in a simple, factual style
• Avoid opinions
• Dont make assumptions
• Be accurate
• Make the story interesting

105
106

• Structure of a News Release
• Rule 1 - Keep sentences and paragraphs short and
  clear
• Rule 2 Place all facts at the beginning of the
  story with quotes
• BP News story sentences should be 16-21 words
  long. Paragraphs rarely should consist of more
  than three sentences.

FACTS DETAILS END
106
107
Other Media Tips

• When the media calls
• Be certain of who is calling and from where
• Know the reason for the interview
• Know your facts or refer him/her to the
  right person
• It is ok to get back with them on information

107
108

• Develop a list of key points
• Make time for the interview or arrange to call
  them back
• Do not answer questions that would violate
  confidentiality rules, legal restrictions, or
  agency policy
• Do not say no comment, explain why you cannot
  comment
• Be clear and polite

108
109

• During the Interview
• Say things that the interviewer will remember
• Always tell the truth
• If you do not know the answer, say so...Offer to
  get back with them the answer and do so ASAP
• Personalize your answers
• Avoid jargon
• Only state your agencys position
• Rephrase negative or objective questions

109
110

• On the Radio
• Your voice becomes your image
• Your appearance is still important
• Maintain good posture, it aids your voice and
  appearance
• Dont let the microphone intimidate you
• Practice enunciating your words
• Practice answering anticipated questions

110
111

• Television Appearance
• Your appearance Look in the mirror first,
  practice minimizing jesters
• Your attire Be clean and professionally dressed
• Avoid certain colors Ask host what is
  appropriate
• Speak conversationally
• Follow direction on where to look when responding
  to questions
• Thank the host
• Ask for a copy

111
112
Land
113
Finding the Right Site

• Undesirable features
• Site in flood plain
• Steep terrain
• Forested lands or prime farm lands
• Site adjacent to or near airports, railroads,
  major highways factories, landfills, etc.
• Soil unsuitable for on-site septic systems
• Current industrial use
• Existing easements which would interfere or
  restrict the proposed building

114

• Desirable features
• Flat or mildly sloped land
• Shape and size of land lends itself to housing
• Existing water and sewer
• Existing paved roads
• Correct zoning
• Accessible to services and public facilities
• Soil suitable for on-site septic system if
  necessary
• Adequate ground water supply for wells
• Uses of adjacent sites compatible to proposed
  project

115
Land Survey Criteria

• Land must be in a rural area
• Lot size can not be subdivided
• Roads contiguous to and must have direct access
  to a street, maintained road or driveway, must be
  paved or all weather
• Water approved well or public central water
  system
• BP Public water is preferable
• Sewer approved public sewer or septic system
• BP Public sewer is preferable
• Site approval State Director delegate site
  approval responsibility to appropriate person

116
Land Development

• Key ingredient to the program
• Approach the search in an organized and
  systematic manner
• Controlling land is critical
• Many other activities depend on it
• Interim financing may be necessary
• 523 funds may not be used to option or purchase
  land
• BP Contact RD for ideas on where to look

117
Land Survey Resources

• 7CFR Part 3550
• 1924-A
• 1924-C
• RD Community Development Manager
• Health Department
• County or City planner, engineer, or city planner
• Soil Conservation Service Soils Book
• County Court House, Tax Office, Recorder of Deeds
• Utility Companies

118
Land Survey Process

• Preparing a site search map
• Identify land that is completely ineligible
• Identify and plot locations with desirable
  features
• Plot drawbacks
• Talk to county governments or local universities
  to help with survey process
• Windshield survey review sites for
• Topography, flood plains, erosion
• Access to public roads, vegetation, existing
  structures
• Unique features

119

• Land analysis form
• Investigate ownership
• Check into tax records
• Assume that every parcel is for sale
• Complete form, Attachment 6
• Selecting the site
• Assess suitability of the location
• Check zoning
• Look for community facilities
• Make sure it fits RD guidelines
• Would you want to live there? Why or why not?
• Assess physical characteristics
• Determine acquisition and development costs

120
Optioning vs. Purchasing

• Option agreements
• Contract between seller and potential buyer
• Buyer not obligated to buy, seller obligated to
  sell
• Options should be between seller and participant
• See sample Option in Guide
• See Option language in Guide
• Purchasing land
• Grantees can purchase land for later resale to
  participants
• Can be beneficial when purchasing multiple lots
• 523 funds cannot be spent for this purpose
• Interim financing necessary

121

• Interim financing
• No single pot of money available
• Seller financing may be an option
• AHP, CRA, CDBG, HOME, Housing Trust Funds
• HAC
• Other private corporations or foundations
• See NCALLs Funding Sources Guide for more
  information

122
E. Monthly Activities Schedule
123
E. Monthly Activities Schedule

• BP See Guide for recommended schedule of
  activities for preparing the pre-application

124
Personnel
125
Salary Ranges and Fringe Benefits

• Develop salary ranges and fringe benefits for
  each position
• Both must be justified as being reasonable in the
  proposed area (OMB Circular A-112, Attachment B,
  Paragraph 6(2))
• A good salary survey can help establish fair and
  competitive rates
• BP See Guide for sample survey

126
Developing Job Descriptions

• See Guide for sample job descriptions
• BP We recommend that new grantees use the
  traditional SH positions
• Rural Development needs to be notified for prior
  approval prior to hiring changes occurring

127

• Job descriptions are required, typical staffing
  for the self-help program are
• Executive Director/Project Director
• Responsible for running and managing the
  self-help housing program
• Group Coordinator/Loan Packager
• Works directly with the participants, screens,
  counseling, training, helping them fill out the
  required forms, etc.
• Secretary/Bookkeeper
• Keeps records for 523 grant funds and 502
  participant loan accounts
• Construction Supervisor
• Responsible for construction

128
Salary Range and Fringe Benefit Areas of Concern

• Job descriptions
• In order to get a comparable survey, review job
  description, not title
• Concentrate on duties
• Suitable agencies
• Consider size of organization and one with a
  similar operation
• Consider geographic and economic similarities
• Consider budgetary limitations
• No matter what the salary survey indicates, the
  budget may not be able to afford that amount
• Consider hiring some part-time staff
• Mutual benefit
• Have personal contact
• Offer to share results

129
Building Standards
130

• Dwellings financed must provide modest, decent,
  and sanitary housing
• The home must be affordable to the family
• Cost cannot exceed RDs area loan limit
• Cannot have swimming pool or income producing
  facilities
• Construction must meet the requirements in 1924-A

131
House Plans

• Certified house plans will be required, during
  the final application stage, for EVERY model that
  will be built during the grant period
• A complete set consists of plans and blueprints
  which have been certified by an architect or
  engineer licensed in your state
• Blueprints need to include the following views
  with mechanicals noted
• Foundation plan
• Floor plan
• Cross section
• Front and rear elevations
• Right and left side elevations

CERTIFIED!
132
Codes and Standards

• Local and state building codes set the minimum
  standards
• Local authorities can require additional
  standards
• All house plans must be approved by RD
• Research building codes for each location since
  requirements may vary
• Each plan must conform to state and local codes
  and comply with RDs standards
• The dwelling must also be affordable to the
  applicant

133

• There are several ways to obtain house plans
• Local Building Supplier
• House Plan Book
• Rural Development
• NCALL
• Other Self-Help Providers
• Software Cheap Architect

134
Cost of Obtaining House Plans

• Take into consideration cost before committing to
  the house plans
• Remember, it costs on average 500 - 700 per set
  of plans

You owe me 4,200!
YOU
135
Standardize Plans

• Limit selections to three basic plans
• Plans can have varying living areas and varying
  number of rooms
• Cost estimate and use of materials will remain
  the same
• Construction Supervisor and participants will
  become familiar with plans
• Try to standardize the cabinet and kitchen
  arrangement
• House plans should be prepared in advance of the
  formation of the first group of participants
• Only one set needs to be certified original, the
  rest can be copies

136
BP Choose plans based on what is in demand by
surveying the target area and participants
affordability!!
137
Fair Housing
138
Introduction

• The right to fair housing is set by law
• Training in this area is crucial
• Effects every staff person in the self-help
  program
• Right to fair housing enforced by formal
  complaint process, litigation, testing and
  monitoring
• Lack of knowledge is no excuse

139
The Fair Housing Act

• Prohibits discrimination because of
• Race or color
• National origin
• Religion
• Sex
• Familial status
• Handicap / Disability
• Covers most housing, definitely federally
  financed
• Law effects sale and mortgage

140
Other Applicable Laws

• Know that housing laws exist and must be
  enforced. Such laws include
• Title VI of the Civil Rights Act of 1964
• Section 504 of the Rehabilitation Act of 1973
• Age Discrimination Act of 1975
• Title II of the Americans with Disabilities Act
• Section 109 of the Housing and Community
  Development Act of 1974
• Title VIII, Title VI
• Record keeping requirements racial ethnic data
  ((1901.202(g))
• Helpful Websites HUD http//www.hud.gov
• USDA http//www.rurdev.usda.gov

141
Fair Housing Marketing

• Affirmative Far Housing Marketing Plan
• HUD Form 935.2b, required for self-help program
• Follow instructions
• Use accurate information
• Marketing plan designed to attract those least
  likely to apply
• Special outreach for those groups required
• Plan approved and monitored by Rural Development

142
Fair Housing Advertising

• To comply with Fair Housing Act requirements must
  be met
• No discriminatory or limiting words or phrases
  allowed
• No selective use of media and models which can
  lead to discriminatory results
• Use fair housing policies and practices
• All advertising for real estate must contain the
  equal housing opportunity logotype, statement or
  slogan
• For further details, see Guide

143

• Equal Housing Opportunity Logotype -
• Equal Housing Opportunity Slogan
• Equal Housing Opportunity
• Equal Housing Opportunity Statement
• We are pledged to the letter and spirit of U.S.
  policy for the achievement of equal housing
  opportunity throughout the Nation. We encourage
  and support affirmative fair housing advertising
  and marketing program in which there are no
  barriers to obtaining housing because of race,
  color, religion, sex, handicap, familial status,
  or national origin.

144
Participant Selection and the Membership Agreement

• BP Two ways to ensure that all fair housing laws
  are being followed
• Consistency
• Documentation
• A person with a disability cannot be denied the
  right to participate in the Mutual Self-Help
  Housing Program
• RD and grantees are to make reasonable
  accommodations which allow someone with a
  disability to participate

145

• Participating family definition allows
  substitute labor with prior approval by State
  Director
• In reward and corrective action, participants
  should be treated equally
• BP Follow rules in Membership Agreement, always

146
Identifying and Solving Potential Fair Housing
Problems

• Contact Rural Development or HUD immediately
• Use mediation and all available resources
• Understand the complaint process
• Complaints must be filled within one year
• Either HUD or RD may investigate
• Try to reach a conciliation agreement
• If agreement breached, further legal action taken

147
Additional Resources

• Various fair housing training materials exist
• HUDs Fair Housing Information Clearinghouse has
  brochures, videos, PSAs, posters
• Rural Development can also provide materials and
  training

148
Stay in Compliance

• BP Review the Affirmative Fair Housing Marketing
  Plan every quarter to insure compliance
• Enforce Fair Housing Advertising requirements
• Display Fair Housing Posters as required by RD
• Questions should be addressed to State Civil
  Rights Coordinator

149

• The End