Section 125.196. Reporting requirements; program periods; compliance monitoring; review; recapture.

Rule 196. (1) The following provisions regarding reporting apply:

(a)  All recipients of program funds shall report back to the authority on a semiannual basis about their use of program funds. The authority shall collect information from recipients to establish that the funds are being spent correctly and to measure the results or performance  of its spending against the objectives of the program.

(b)   The authority will establish as a part of each biennial plan reporting forms that shall be submitted by the recipients on a semiannual basis. These reports shall include both a performance monitoring form and  a financial monitoring form.

(c)   The performance monitoring form shall be signed by the chief executive officer of the recipient and shall analyze the management performance of the recipient, specifically including a description of the following items:

(i)    What was done with the program funds and whether what was done was consistent with the goals and strategies outlined in the application.

(ii)    How well it was done, including a discussion of how success or failure will be measured.

(iii)   Who has benefited from the distribution of program funds, including details on results.

(d)  The financial monitoring form shall be signed by the chief financial officer of the recipient and shall analyze the financial performance of the recipient. Program funds shall be used in an efficient, effective, and appropriate  manner,  consistent with program objectives and priorities, including community needs. Program funds shall also be appropriately and properly accounted for with documentation that adequate safeguards have been instituted by the recipient to ensure that there is not misuse  of program funds.

(2)    The following provisions apply to program periods and extensions:

(a)   The initial program period for any loan or grant awarded under the program 2 years from date of the award of program funds. All activities related to the use of program funds shall be completed within this 2-year time frame. Any program monies outstanding on the date which is 2 years from the date of the award are subject to the recapture provisions of  this rule and shall be immediately repaid to the authority.

(b)     Recipients must maintain compliance with each of its contracts with the authority.

(c)   Recipients must comply with any restrictions that are stated and enforced through a regulatory agreement or any other legal   document associated with any award of program funds. These restrictions may include, but are not limited to, the following:

(i)   Rent restrictions.

(ii)   Record keeping and reporting.

(iii)   Income targeting of tenants.

(d)   The authority monitors compliance with project restrictions and any other covenants by recipient in any housing and community development fund agreement. An annual compliance fee of up to $75.00 per unit may be charged for this review.

(3)   The authority executive director shall name a review committee who shall meet to consider, review, score, and recommend for approval program funding awards and award amounts based on applications received in  any program funding round. The review committee shall meet to formally review the applications and shall make recommendation to the authority regarding the total awards to be made in any application year and the amount and recipient of the proposed awards. Each member of the committee shall complete  a scoring sheet detailing the member's evaluation and score of the application on the various evaluation factors or criteria. The committee shall make any funding award recommendation decisions based on the scoring of  these factors or criteria, subject to revision under the applicable earmark requirements. All decisions of the committee shall be made based on the scoring outcomes and/or by majority vote as applicable. The authority shall have final authority to approve or disapprove of any funding award  recommendation  made by the review committee.

(4)   Recapture of program funds shall be accomplished as follows:

(a)   The authority shall have the power to recapture or de-obligate program funds and program awards in certain circumstances. The power to recapture or deobligate funds can apply to entire awards or portions of  awards.  Recaptured or deobligated funds shall be re-deposited in the fund and shall be used to make future awards in the current and next applicable program year or program funding round.

(b)   The following reasons shall justify the deobligation or recapture of program funds:

(i)   Inability of applicant or recipient to execute the program activity and obligate the program funds within the initial program period 2-year timeline.

(ii)   Inability of the applicant or recipient to make draw downs of program funds on a regular and timely basis, such that the authority has grounds to question the overall viability of the project.

(iii)       Substantial, significant, and lengthy noncompliance with the statute, rules, NOFA, RFP, application, biennial plan, allocation plan, allocation formula, program funding agreement or any other documentation or requirement related to any award. In making the decision on deobligation or recapture in this instance, the authority shall consider whether or not the non-compliance is due to factors beyond the applicant's and/or recipient's control.

(iv)     If the total cost of the anticipated program activity is less than the total costs anticipated in the application or other documentation provided by the applicant and/or recipient, the authority can deobligate the portion of the award exceeding the actual costs of the program activity.

(v)       At the end of the initial program period and any approved extension of that period, the unspent funds remaining in the program account, project account, or any other account related to the program activity shall be recaptured and returned to the fund.

(vi)          If the applicant and/or recipient voluntarily returns the funds to the authority/fund and ceases all program activity and reporting upon the return of program funds.

(vii)      Any other reason justifying recapture or deobligation approved by the authority, upon notice to the applicant and/or recipient of both the authority's consideration of a recapture or obligation decision and notice that the authority has approved a resolution or motion evidencing its decision to recapture or deobligate the funds.

History: 2008 AACS; 2009 AACS.