RD Instruction 2000-TT PART 2000 - GENERAL SUBPART TT - MEMORANDUM OF UNDERSTANDING BETWEEN THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AND RURAL DEVELOPMENT, U.S. DEPARTMENT OF AGRICULTURE, ESTABLISHING MULTIPLE COOPERATIVE HOUSING EFFORTS §2000.2251 General. Rural Development has entered into a Memorandum of Understanding with the Department of Housing and Urban Development (HUD) to establish a framework for a continuing working relationship between the two agencies. With the execution of the agreement, 11 areas of cooperative effort are identified for staff coordination and program development. A. The areas identified are exclusively related to housing. Both single and multi-family housing programs should benefit from a stronger cooperative effort. B. The cooperative areas are identified in exhibits to the memorandum. These exhibits are dated and can be deleted as the cooperative efforts are accomplished. New exhibits can be added as new areas for cooperative effort are identified. C. Generally, the memorandum will be updated in the last quarter of the fiscal year to provide direction and focus for cooperative efforts during the following fiscal year. D. The memorandum and its exhibits are attached as Exhibit A to this subpart. §§2000.2252 - 2000.2300 [Reserved] Attachment: Exhibit A oOo __________________________________________________________________________ DISTRIBUTION: WSDC Administration General 1 (07-01-92) PN 187 RD Instruction 2000-TT Exhibit A Page 1 MEMORANDUM OF UNDERSTANDING Between the U.S. Department of Housing and Urban Development and Rural Development of the U.S. Department of Agriculture PURPOSE This Memorandum of Understanding (MOU) establishes the framework for a continuing working relationship between the U.S. Department of Housing and Urban Development and Rural Development of the U.S. Department of Agriculture to develop jointly and to implement inter-agency efforts cooperatively in providing housing assistance to low-income households in Rural America. SITUATION The Department of Housing and Urban Development administers a variety of housing assistance programs that serve rural families and individuals as well as those living in non-rural communities. These programs are under various authorities, including the National Housing Act (1934), the Housing Act of 1937, the Housing Act of 1949, and the Housing and Community Development Act of 1974, all as amended. Rural Development, an Agency of the U.S. Department of Agriculture, administers programs to improve housing conditions specifically in rural areas for very low, low-, and moderate-income families and individuals. Financial assistance is available to eligible organizations, including public and private nonprofit entities, and to households. The housing programs are authorized by the Housing Act of 1949, as amended. AGREEMENT As detailed in the attached Exhibits, it is mutually agreed that HUD and Rural Development will maintain an on-going working relationship among its respective staffs to address a variety of mutual issues in providing housing assistance to Rural America in a cooperative, cost effective, and non-duplicative manner. (07-01-92) PN 187 RD Instruction 2000-TT Exhibit A Page 2 It is the intent of both parties to have this MOU represent current and critical areas of concern for both Agencies. Therefore, it is further agreed that, on the anniversary date of this Agreement, HUD and Rural Development will review the attached Exhibits, adding new issues to be addressed, modifying existing Exhibits on continuing issues if necessary, and deleting Exhibits on accomplished activities. /s/ JACK KEMP Secretary U.S. Department of Housing and Urban Development /s/ LA VERNE AUSMAN Administrator Farmers Home Administration U.S. Department of Agriculture RD Instruction 2000-TT Exhibit A Page 3 HUD – RURAL DEVELOPMENT MEMORANDUM OF UNDERSTANDING EXHIBIT A DATE: August 23, 1991 I. Issue: Resolve policy differences between HUD and Rural Development that impact the management and servicing of Section 515/Section 8 assisted housing. II. Objective of Coordinated Activities: Review policy requirements that adversely impact on housing sponsors and recommend solutions. Review policy requirements that adversely impact on tenants in Section 515/Section 8 assisted housing and recommend solutions. Establish a review process to resolve future policy differences. Establish a system to preview proposed regulations that impact existing Section 515/Section 8 projects. III. Joint Tasks Proposed to Accomplish Objectives: Develop a list of policy differences needing review and prioritize based on impact and complexity. Establish a work group to: 1) conduct the reviews, 2) establish a timetable for each issue based on complexity, 3) identify possible solutions or recommended options and 4) recommend a method for implementing. Develop a process to resolve future policy differences and to discuss the program impact of legislative and/or proposed regulatory changes. IV. Projected Timetable: Date to Be Task Completed Develop list of issues. Completed 5/91 Initial work group meeting. Completed 6/91 (07-01-92) PN 187 RD Instruction 2000-TT Exhibit A Page 4 MOU-Exhibit A Subsequent work group meetings. As needed Document the final resolution As they are of each policy issue. resolved V. Process for Monitoring/Follow-up: Rural Development will assume monitoring responsibility for timetable. VI. Principal Staff Responsible: Name Unit Number For HUD:Donald A. Kaplan MF Mtgmt 708-3730 James J. Tahash Planning 708-3944 For Rural Development: Thomas F. Gerlitz MF Mtgmt 720-1599 James D. Tucker Management 720-1618 Carl Grate Servicing 720-1615 RD Instruction 2000-TT Exhibit A Page 5 HUD – RURAL DEVELOPMENT MEMORANDUM OF UNDERSTANDING EXHIBIT B DATE: August 23, 1991 I. Issue: Compliance with legislated and regulatory mandates which require joint Departmental actions. II. Objective of Coordinated Activities: Each party will identify any existing mandates, related to housing management activities, which they feel requires joint action. Establish a process to evaluate the impact of future mandates. III. Joint Tasks Proposed to Accomplish Objectives: Develop a list of any existing mandates that are not uniform. Establish a work group to: 1) conduct the reviews, 2) establish a timetable for each issue based on complexity, 3) identify possible solutions or recommended options and 4) recommend a method for implementing. Each party will be responsible for reviewing legislative and/or regulatory policy changes in their program areas, advise the other party of possible impacts and provide them with an opportunity to comment on the change. Meet as needed to develop possible solutions or recommended options when impact or complexity of the issue dictates. IV. Projected Timetable: Date to Be Task Completed_ Develop list of mandates. Completed 5/91 Initial work group meeting. Completed 6/91 (07-01-92) PN 187 RD Instruction 2000-TT Exhibit A Page 6 MOU-Exhibit B Subsequent work group meetings. As needed Document the final resolution As they are of each policy issue. resolved V. Process for Monitoring/Follow-up: Rural Development will assume monitoring responsibility for timetable. VI. Principal Staff Responsible: Name Unit Number For HUD:Donald A. Kaplan MF Mtgmt 708-3730 James J. Tahash Planning 708-3944 For Rural Development: Thomas F. Gerlitz MF Mtgmt 720-1599 James D. Tucker Management 720-1618 Carl Grate Servicing 720-1615 RD Instruction 2000-TT Exhibit A Page 7 MEMORANDUM OF UNDERSTANDING EXHIBIT C DATE: August 23, 1991 I. Issue: Release of Junior Liens on HUD/Rural Development joint security. II. Objective of Coordinated Activities: To permit orderly and timely liquidation by obtaining release of valueless or partially secured junior liens held by one agency when the other forecloses a prior lien or accepts a deed in lieu of foreclosure. III. Tasks Proposed to Accomplish Objectives: Draft MOU as part of "umbrella" HUD - Rural Development MOU. Handle settlement of liens at the Washington, D. C. level as the need arises. IV. Projected Timetable: Task Completion Date 1. Draft of Exhibit by Rural Development April 1, 1991 2. HUD Review of August 30, 1991 Draft Exhibit 3. Rural Development to notify Field Within 45 days after Staffs by Exhibit MOU is executed to RD Ins. 1955-A 4. HUD to notify Field Within 45 days after Staffs MOU is executed V. Process for Monitoring/Follow-up: As liquidation cases involving joint liens arise, staffs identified in Section VI of this Exhibit shall effect release of liens. The following documentation will be provided to the junior lienholder: 1. Copy of Agency's mortgage. 2. Copy of the deed transferring ownership to the Agency. (07-01-92) PN 187 RD Instruction 2000-TT Exhibit A Page 8 MOU-Exhibit C 3. A title opinion indicating the Agency held a valid first- lien position. 4. Copy of a current appraisal. V. Process for Monitoring/Follow-up (cont.): For Valueless liens: Within 30 days after receipt of a request and the above documentation, the Agency holding a valueless junior lien will prepare and execute the release and deliver it to the first lienholder, who will be responsible for recording the release. For Partially secured liens: In cases where the junior lien is partially secured and the senior lienholder forecloses, the junior lienholder agrees to be named in the suit, allowing proceeds to be distributed by lien priority. When a deed in lieu of foreclosure is accepted by the senior lienholder, HUD and Rural Development officials identified in Section VI will negotiate a settlement amount to effect release of a partially secured junior lien, as outlined under "Valueless liens" above. VI. Principal Staff Responsible: Name Title Unit Phone number For Rural Development: Frances B. Calhoun Director SFH/SPM 720-1452 For HUD: Paulette Porche' Director TIASD 708-0540 RD Instruction 2000-TT Exhibit A Page 9 HUD – RURAL DEVELOPMENT MEMORANDUM OF UNDERSTANDING (MOU) EXHIBIT D DATE: August 23, 1991 I. Issue: Market Impact. II. Objective of Coordinated Activities: Better coordination between HUD and Rural Development in understanding market impact to preclude duplication of resources in the same market area and preclude adversely affecting existing or authorized projects of the sister Agency in the same market area. Foster communications between the Agencies to improve knowledge of markets. III. Tasks Proposed to Accomplish Objectives: Jointly draft MOU as part of "umbrella" HUD-Rural Development MOU. IV. Projected Timetable: Responsible Proposed Task Agency Completion Date AN to Rural Development field Rural Development Completed 6/12/91 Directive to HUD field HUD September 1, 1991 Proposed rule to implement Rural Development reg changes Rural Development September 1, 1991 Final rule to implement Rural Development reg changes Rural Development March 1, 1992 V. Process for Monitoring/Follow-up: Rural Development MFH/PD Division will be responsible for meeting Rural Development timetable. (07-01-92) PN 187 RD Instruction 2000-TT Exhibit A Page 10 MOU-Exhibit D VI. Principal Staff Responsible: Name Title Unit Phone No. For HUD: David Shenk Director EMAD 708-0577 For Rural Development: Obediah G. Baker, Jr. Director MFH/PD 720-1604 David J. Villano Branch Chief MFH/PD 720-1608 Gail Z. McCowan Specialist MFH/PD 720-1608 RD Instruction 2000-TT Exhibit A Page 11 HUD – RURAL DEVELOPMENT MEMORANDUM OF UNDERSTANDING (MOU) EXHIBIT E DATE: August 23, 1991 I. Issue: Coordinate the implementation and monitoring efforts of the Rural Development and HUD regarding the Handicap Accessibility. II. Objective of Coordinated Activities: Achieve better coordination between HUD and Rural Development in their efforts to monitor the provisions of the Handicap Accessibility Standards. III. Tasks Proposed to Accomplish Objectives: Prompt a mutual exchange of information by having Headquarters staff, i.e., Architects, Loan Officers, and Engineers, of both Agencies attend training and orientation sessions sponsored by the respective Agencies. Jointly develop MOU to address Technical Assistance, Compliance Procedures and handling of Complaints and Compliance Activities. IV. Projected Timetable: Proposed Task Completion Date Scheduled Orientation September 15, 1991 Training of HUD and Rural Development staff November 15, 1991 MOU for Technical Assistance and November 15, 1991 compliance issues. V. Process for Monitoring/Follow-up: Rural Development MFH/PD and HUD responsible for meeting timetable. (07-01-92) PN 187 RD Instruction 2000-TT Exhibit A Page 12 MOU-Exhibit E VI. Principal Staff Responsible: Name Title Unit Phone No. For HUD: Merle Morrow Attorney Advisor FHEO 708-2618 to DAS/EC Jacelyn Shelton Director FHESec3 708-0836 For Rural Development: Obediah G. Baker, Jr. Director MFH/PD 720-1604 David J. Villano Branch Chief MFH/PD 720-1608 Rebecca Johnson Specialist MFH/PD 382-1608 Carlton Lewis Branch Chief EEO 245-5530 RD Instruction 2000-TT Exhibit A Page 13 HUD – RURAL DEVELOPMENT MEMORANDUM OF UNDERSTANDING (MOU) EXHIBIT F DATE: August 23, 1991 I. Issue: Coordination of Cost Certification and Cost Containment Techniques: II. Objective of Coordinated Activities: Achieve better coordination between HUD and Rural Development in understanding the cost certification and cost containment process and techniques of the two Agencies. III. Tasks Proposed to Accomplish Objectives: Prompt a mutual exchange of policy information by having HUD and Rural Development Headquarters staff, i.e., Architects, Loan Officers, and Engineers, of both Agencies attend training and orientation sessions sponsored by the respective Agencies. IV. Projected Timetable: Task Proposed Completion Date Scheduled Orientation/Training Session for HUD and Rural Development technical September 15, 1991 support, program support and multi- family housing program personnel. V. Process for Monitoring/Follow-up: Rural Development MFH/PD responsible for meeting timetable. VI. Principal Staff Responsible: Name Title Unit Phone No. For HUD: Howard Mayfield Director TSP 708-0035 For Rural Development: Obediah G. Baker, Jr. Director MFH/PD 720-1604 David J. Villano Branch Chief MFH/PD 720-1608 Gail McCowan Specialist MFH/PD 720-1608 (07-01-92) PN 187 RD Instruction 2000-TT Exhibit A Page 14 HUD – RURAL DEVELOPMENT MEMORANDUM OF UNDERSTANDING (MOU) EXHIBIT G DATE: August 23, 1991 I. Issue: Access HUD revised Congregate Services Program II. Objective of Coordinated Activities: Develop cooperative regulation or Agreement with HUD for use in implementing the Congregate Services Program III. Tasks Proposed to Accomplish Objectives, respectively: A. Develop regulation HUD and Rural Development B. Provide guidance to field HUD and Rural Development staff as needed IV. Projected Timetable: Task Proposed Completion Date A. Regulation/Agreement August 30, 1991 Formulation B. Training and Guidance September 20, 1991 to Field Offices V. Process for Monitoring/Follow-up respective tasks: A. Monthly coordination B. Review with HUD and exchange comments on the proposed regulation or Agreement. VI. Principal Staff Responsible: Name Title Unit Phone No. For HUD: Jerry Nachison Branch Chief HMAH 708-3291 For Rural Development: Obediah G. Baker, Jr. Director MFH/PD 720-1604 John Pentecost Branch Chief MFH/PD 720-1606 Sue Harris Specialist MFH/PD 720-1606 RD Instruction 2000-TT Exhibit A Page 15 HUD – RURAL DEVELOPMENT MEMORANDUM OF UNDERSTANDING EXHIBIT H DATE: August 23, 1991 I. Issue: Addressing and preventing homelessness in rural areas. II. Objectives of Coordinated Activities: A. Enhance understanding of rural homelessness and methods for preventing it. B. Coordinate management and financing approaches for providing housing and supportive services for homeless. C. Use established Agency policy goal of 3 percent of Rural Development Section 502 non-program inventory housing for transitional shelter for homeless. III. Tasks Proposed to Accomplish Objectives, respectively: A. Share methodology for counting the homeless, jointly define "homeless", utilize HUD's contract with the Housing Assistance Council to study the delivery of McKinney Act, other Federal, State and local programs for the rural homeless. B. Share relevant regulations and approaches, make inventory of housing resources and services, including use of vacant Rural Development-financed rental units. C. With AN to Rural Development field staff and by coordination with HUD, Rural Development to promote use of existing non-program housing inventory that would be available for lease or sale for homeless. Work jointly to identify and overcome barriers to use of such units for transitional housing. IV. Projected Timetable: Date to Be Task Completed A.On Homeless Study Ongoing through December 1991 B.On Management and Financing Approaches September 1, 1991 (07-01-92) PN 187 RD Instruction 2000-TT Exhibit A Page 16 MOU-Exhibit H C.On Use of Non-program Ongoing Inventory, plus AN to Rural Development AN by 9/15/91 field staff for FY 92 V. Process for Monitoring/Follow-up respective tasks: A. Monthly coordination B. Initial meeting, then later HUD review and comment on Rural Development proposed regulations. C. Semi-annually, provide HUD a list of non-program properties by State. VI. Principal Staff Responsible: Name Title Unit Phone No. For HUD: Jim Forsberg Director CPD/SNAP 708-3291 Bill Molster CPD/SNAP 708-1234 Mike Roanhouse CPD/SNAP 708-1234 For Rural Development: John Pentecost Branch Chief MFH/PD 720-1606 Tom Sanders Specialist MFH/PD 720-1606 Amy Donahue Program Analyst P&E/PAS 703 756-6420 Reed Petersen Branch Chief SFSPM 720-1452 RD Instruction 2000-TT Exhibit A Page 17 HUD – RURAL DEVELOPMENT MEMORANDUM OF UNDERSTANDING EXHIBIT I DATE: August 23, 1991 I. Issue: Communication on Loan Limits and Approved Lenders (mortgagees). II. Objective of Coordinated Activities: Share information on HUD loan limits and housing sales prices with Rural Development. Share information on approved lenders and removal of lenders from list. III. Tasks Proposed to Accomplish Objectives: HUD will send copies of new/revised list of loan limits to Rural Development as they are published in the Federal Register. HUD will verify lender approval to Rural Development by telephone initially. Develop jointly a method for long-term information between HUD Regional Offices and Rural Development State Offices. IV. Projected Timetable: Date to Be Task Completed Copies of new/revised loan limits As revisions are completed Lender Approval List As needed Method for long-term communication 10/01/91 V. Process for Monitoring/Follow-up: SFHPD to track progress. (07-01-92) PN 187 RD Instruction 2000-TT Exhibit A Page 18 VI. Principal Staff Responsible: Name Title Unit Number For HUD: Morris (Bud) Carter Director HSID 708-2700 Bill Heyman Director HSL 708-1824 Parker Deal Director HSLM 708-2830 For Rural Development: Larry Hammond Director SFHPD 720-1474 Jim Craun Branch Chief SFHPD 720-1474 RD Instruction 2000-TT Exhibit A Page 19 HUD – RURAL DEVELOPMENT MEMORANDUM OF UNDERSTANDING EXHIBIT J DATE: August 23, 1991 I. Issue: Coordinate HUD and Rural Development efforts to meet goals of Paper Work Reduction Act as it regards assisted housing programs. II. Objective of Coordinated Activities: Jointly develop a uniform residential loan application to be used for all housing assistance loan applications. Identify other common-use single family housing loan origination forms that can be used Nationwide by each Agency. III. Tasks Proposed to Accomplish Objectives: Rural Development to join in government-wide effort to implement "Uniform Residential Loan Application" (URLA). Work with HUD to identify other common-use forms. IV. Projected Timetable: Date to Be Task Completed Rural Development to review URLA-submit comments to HUD 8/31/91 HUD, Rural Development, VA, FNMA and Freddie MAC to implement use URLA 9/15/91 Joint effort to identify other forms ongoing V. Process for Monitoring/Follow-up: N/A (07-01-92) PN 187 RD Instruction 2000-TT Exhibit A Page 20 VI. Principal Staff Responsible: Name Title Unit Number For HUD: Morris (Bud) Carter Director HSID 708-2700 For Rural Development: Larry Hammond Director SFHPD 720-1474 Jim Craun Branch ChiefSFHPD 720-1474 RD Instruction 2000-TT Exhibit A Page 21 HUD – RURAL DEVELOPMENT MEMORANDUM OF UNDERSTANDING EXHIBIT K DATE: October 16, 1991 I. Issue: Rural Development Single Family Housing (SFH) inventory properties used in the HUD HOPE 3 program. II. Objective of Coordinated Activities: Rural Development acquires SFH properties in inventory as a result of its loan program. Inventory properties suitable for Rural Development program applicants are repaired and sold, preferably to program applicants on program terms. Nonprogram properties are broom cleaned and sold for cash or on nonprogram terms. HUD, through the HOPE 3 program, provides homeownership opportunities for low income families and individuals (Participants) by providing grantees (Grantees) with Federal assistance to initially acquire and rehabilitate government owned properties from government agencies and sell them to Participants at affordable prices, after making needed repairs. Alternatively, Grantees can facilitate direct acquisition and repair of housing by Participants by providing financing, funds for down payments, repairs and/or subsidized interest rates. Rural Development and HUD cooperate and coordinate the use of Rural Development inventory properties for the benefit of Participants. III. Tasks Proposed to Accomplish Objectives: 1. Upon request, Rural Development will provide to Grantees lists of all SFH properties in inventory in the areas of interest. 2. Grantees may submit to Rural Development, for themselves or a Participant, a written offer for a property to be closed within 30 days. 3. Whether or not the property was listed for sale, Rural Development may sell and will give preference to offers from Grantees and Participants for inventory sales. If Rural Development contracts for repairs have not been awarded, repairs will not be made, except for decent, safe and sanitary (DSS) requirements. 4. If Rural Development has listed the property for sale, the listing will be withdrawn when the written offer from a (07-01-92) PN 187 RD Instruction 2000-TT Exhibit A Page 22 Participant or Grantee is received by Rural Development. Rural Development will not pay a sales commission for properties sold to Participants or Grantees. 5. Rural Development will repair NP properties not meeting Rural Development DSS requirements to remove the decent, safe and sanitary problem(s) if the value of the property increases more than the cost of repairs. Otherwise, Rural Development will sell NP properties with the DSS clause. Grantees are responsible for meeting DSS conditions and having the DSS clause removed from the deed before Participants occupy the dwelling. 6. Rural Development will sell properties to Grantees or Participants with a 10 percent price discount from current market value or the listed price, which ever is less. 7. Rural Development may sell program properties to Grantees or Participants with Rural Development program financing or for cash. Rural Development may sell nonprogram properties to Grantees or Participants with Rural Development nonprogram financing or for cash. The buyer must meet all other Rural Development eligibility requirements. 8. Rural Development will close the sale within 30 days. If Grantee or Participant cannot close within 30 days, Rural Development will reject the offer. IV. Projected Timetable: Task Completion Date 1. Draft Exhibit by Rural Development October 16, 1991 2. HUD Review Draft Exhibit November 1, 1991 3. Rural Development notice in Federal Register Within 30 days after MOU is executed 4. Rural Development notify Fields Staffs Within 45 Days after MOU is executed 5. HUD notify Field Staffs Within 45 days after MOU is executed V. Process for Monitoring/Follow-up: Rural Development and HUD responsible for meeting the timetable. Periodic reviews an contacts between Rural Development and HUD will assess the progress of this cooperative effort. RD Instruction 2000-TT Exhibit A Page 23 VI. Principal Staff Responsible: Name Title/Unit Number For Rural Development: Frances B. Calhoun Division Director, SFH/SPM 720-1452 Reed J. Petersen Branch Chief, SFH/SPM 720-1452 For HUD: Marcia Dodge Deputy Director, CPD/OUR 708-2685 John Garrity Director, HOPE 3 708-0324 oOo (07-01-92) PN 187