April 25th Memo
Division of Housing and Community Renewal
M E M O R A N D U M
TO: Weatherization Assistance Program Subgrantees
DHCR Regional Offices
FROM: Thomas O. Carey, Director of Energy
and Rehabilitation Services
DATE: April 25, 2002
SUBJECT: Notice of Availability of Funding for Coordinated Special Projects
In the 2001-2002 Weatherization State Plan, DHCR set aside $2 million for
projects where Weatherization Assistance Program (WAP) funds can be used with
other DHCR funds to provide comprehensive rehabilitation and weatherization
services. This memorandum is intended to provide guidance on the receipt of
proposals for use of this funding, and procedures for making the funds
available.
The following guidelines apply to special projects funding in the 2002 Program
Year:
• Maximum of $100,000 of WAP funds, per project, for materials, labor, and program support costs, plus up to 10% additional for administrative, insurance and fiscal audit costs. All expenses must be documented;
• Maximum of $2,500 per unit expenditure of WAP funds;
• Minimum per-project allocation of $20,000 of WAP funds;
• Owners of rental units will be required to make a contribution to the project consistent with current owner investment policy, if feasible, or funds that are available from project reserves or other sources;
• Priority will be given to projects that DHCR has previously funded through the NYS HOME Program, the Housing Trust Fund Program, and the Rural Rental Assistance Program, and any other DHCR-assisted projects that have high utility costs;
• All projects must incorporate utility or SBC funding for electric reduction measures if available in the respective service area.
• Only those measures that are indicated by an approved energy audit will be approvable (see below). Proposals that fund only the material costs for a project are acceptable.
• Requests for funding must be initiated by a weatherization subgrantee that has worked with a local housing group or an owner of a publicly assisted project to develop a proposal. Information on troubled projects will be solicited from other DHCR units.
• Requests must be received by the Weatherization Coordinator in the subgrantee’s respective Regional Office prior to May 31, 2002.
• Requests must include the following:
1. A comprehensive description of the project including a statement explaining why this project should be considered a priority for funding.
2. An assurance that the project is eligible receive WAP services based on third-party income verification. Projects where occupancy is restricted to households below the WAP income limits should provide evidence of those restrictions (i.e., contract rent schedule or other similar documentation).
3. A list of eligible weatherization measures that are proposed for the project. These measures must be consistent with DOE allowable measures for the specific type of building audit being considered. Include a description of how these measures were chosen. An appropriate energy audit will be required prior to starting the project.
4. An estimate of the cost of the weatherization measures to be installed with a proposed categorical budget for these costs, and an estimate of other housing funds being incorporated into the project.
5. An explanation of the reason additional WAP funds will be needed to accomplish this project. If additional WAP funds are not needed to accomplish the project, WAP subgrantees should not apply.
6. An estimate of the time needed to complete the weatherization portion of the project along with the time needed for the total project. To be eligible for consideration in this round of funding, the weatherization portion of the project must be completed by 3/31/03.
7. A description of how the owners investment will be accomplished. DHCR will allow owners investment to be provided by public subsidies (including reserves or other funds available to the project) if in our determination an assisted project will suffer serious adverse consequences without the work. DHCR also reserves the right to waive the owner contribution if providing it would adversely affect operation of the project. Written documentation of the availability of funds from other sources must be provided.
Once the requests are received, the following procedures will be used to determine awards of additional funds to subgrantees.
1. All requests will be recorded in the Regional Office and in Albany for tracking.
2. Requests will be routed to the Director of Energy and Rehabilitation Services, with Regional recommendations including a ranking of proposals by Region based on project viability, need in the community, cost effectiveness of weatherization measures, the level of leveraged non-WAP funds, and the ability of the WAP subgrantee to complete the project in a timely manner. Regional office staff will consult with other DHCR units as appropriate for recommendations on project operating viability, availability of additional funds, and the need for WAP subsidies. Note: If the Regional Coordinator is not familiar with the proposed project, a site visit to the project with the subgrantee will be required prior to making a recommendation..
3. Recommendations and rankings will be forwarded to central office in mid-June.
4. A Review Committee made up of the Energy Services Bureau senior staff will meet with Regional Coordinators to review the regional recommendations and make final statewide recommendations to DHCR Executive Staff. Where possible, the Review Committee will attempt to provide an equitable distribution of funding to regions based on low-income population criteria.
5. Once final, decisions will be announced, and subgrantees will be advised to develop and submit a formal budget and new contract package for these additional funds.
cc: DHCR Regional Offices
DHCR Executive Staff