2008 DCA Housing and Redevelopment Workshop
Marketing the CHIP Program and Developing Policies & Procedures
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Marketing CHIP
Why market the CHIP Program?
• HOME rules require you to affirmatively market to people who are least likely to know, hear or read about the CHIP Program.
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Marketing CHIP
Marketing the CHIP Program
• Open house• Radio announcements• Newspaper/cable TV• Program kickoff announcements• Contractors, Real Estate Agents• Banks• Bill stuffers• DFACS, Church bulletins• Signs in front of houses under going rehabilitation• Community newsletters• Word of mouth!
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Marketing CHIP
Developing Local Policies and Procedures
• Outlines the basic eligibility and program implementation requirements.
• Assists local government during disputes related to participant or contractor eligibility.
• After approval of a CHIP award, the CHIP administrator and the local government officials will develop a set of written policies to govern the program.
• Serves as your program guide!
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Marketing CHIP
Developing Policies & Procedures
• Who are eligible borrowers?▪ HOME regulations require that the borrower’s household income is 80% or less of
area median income (AMI).▪ Must be primary residence▪ Fee simple title
• Eligible activities – what activities will you undertake?▪ Rehabilitation▪ Reconstruction-mobile home/stick built/modular▪ Down payment assistance
• Define application intake process. (including required documentation)
• Describe the finance plan for each activity type:▪ maximum CHIP amount ▪ income restrictions (can be sliding scale)▪ loan terms & conditions for the leveraged loan funds▪ What are the minimum amount of leveraged funds required?
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Marketing CHIP
Property Standards
• HOME (CHIP) funded properties must meet minimum property standards. State and local codes and ordinances apply to ANY (HOME) CHIP funded projects.
• Different activities have different code requirements. (See handout!)▪ Rehabilitation▪ Reconstruction/New Construction▪ Down Payment Assistance
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Marketing CHIP
Property Standards
• If no state or local building codes, the State Recipient must use national model codes.
• Entire unit MUST meet applicable property standards, codes (including state codes), rehabilitation standards, ordinances and zoning ordinances upon job completion.
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Marketing CHIP
CHIP Loan Closing
• Types of loan closing documents required▪ Deed to Secure Debt▪ Promissory Note▪ Loan Agreements
• When & where will the loan closing take place?
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Marketing CHIP
Inspections and GPI
• What are your policies regarding General Property Improvements (GPI)?
• GPI can not be paid with CHIP funds
• GPI can not exceed forty (40) percent of other funds.
• Inspections:▪ Who will inspect for each activity type?▪ How often will inspections take place?▪ Who is the official code inspector?
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Marketing CHIP
Working with Contractors
• Who will develop work write ups?• Will you use a bidding procedure or
negotiated bids?• What are the requirements for contractors? • Progress payments - when and how often? • Inspections – when and how often?• How are Change Orders handled? • Is homeowner satisfied? If yes, final
inspection and final payment.
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Marketing CHIP
Appeals & Complaints
• If the homeowner is not satisfied, how will you handle appeals and complaints?
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Marketing CHIP
Web site Access
• Please access DCA’s web address for a copy of the State Minimum property Codes at:
• http://www.development/Construction Codes/index.asp
• Lead Based Paint regulations can be accessed at:
• http://wwwhud.gov/offices/lead/leadsaferule/LSHRFinal.21June04.rtf
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Marketing CHIP
Manufactured Housing Website
• For additional guidance on manufactured housing under the HOME program, please access HUD’s website address at:
• http://www.hud.gov/offices/cpd/affordablehousing/programs/home/topical/admin.cfm#notices
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Marketing CHIP
Contact Information
Kay Garrison – (404) 679-0573
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Marketing CHIP
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Marketing CHIP
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Marketing CHIP
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Marketing CHIP
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Marketing CHIP
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Marketing CHIP
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Marketing CHIP
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