265—39.9 (16) Administration of awards. Applicants selected to receive HOME funds awards shall be notified by letter from the IDED director or IFA executive director.
	 39.9(1) Preaudit survey. A preaudit survey may be required for all for-profit and nonprofit direct recipients for assistance that exceeds $150,000.
	 39.9(2) Contract. A contract shall be executed between the recipient and IFA. These rules, the approved application, the Iowa Housing Fund Management Guide and all applicable federal and state laws and regulations shall be part of the contract.
	  a.   	 The recipient shall execute and return the contract to IFA within 45 days of transmittal of the final contract from IFA. Failure to do so may be cause for IFA to terminate the award.
	  b.   	 Certain activities may require that permits or clearances be obtained from other state or local agencies before the activity may proceed. Contracts may be conditioned upon the timely completion of these requirements.
	  c.   	 Awards shall be conditioned upon commitment of other sources of funds necessary to complete the housing activity.
	  d.   	 Release of funds shall be conditioned upon IFA’s receipt of an administrative plan for the funded activity.
	  e.   	 Release of funds shall be conditioned upon IFA’s receipt and approval of documentation of environmental clearance.
	 39.9(3) Local administrative and technical services contracts.
	  a.   	 Recipients awarded funds for general administration that employ the services of a third-party administrator to perform all or part of the general administrative functions for the recipient shall enter into a contractual agreement for the general administrative functions to be performed.
	  b.   	 Recipients awarded funds for activities requiring technical services (e.g., inspections, work write-ups, cost estimates, construction supervision, lead hazard reduction need determination and oversight, lead hazard reduction carrying costs, and temporary relocation coordination) that employ a third-party entity to perform all or part of the technical services shall enter into a contractual agreement for the technical services to be performed.
	  c.   	 Recipients that employ a third party to perform all or part of the general administration for the recipient and that also employ a third party to perform all or part of the technical services for the recipient shall conduct separate procurement transactions and shall enter into separate contractual agreements for each: one contract for general administration and one contract for technical services. Separate contracts are required even if both functions are performed by the same third-party entity.
	 39.9(4) Requests for funds. Recipients shall submit requests for funds in the manner and on forms prescribed by IFA. Individual requests for funds shall be made in whole dollar amounts equal to or greater than $500 per request, except for the final draw of funds.
	 39.9(5) Record keeping and retention.
	  a.   	 HOME-funded projects. For HOME-funded projects, 24 CFR 92.508 provides the record retention requirements. All records pertaining to each fiscal year of HOME funds must be retained for the most recent five-year period, except as provided in the following:
	 (1) 	 For rental housing projects, records may be retained for five years after the project completion date, except that records of individual tenant income verifications, project rents and project inspections must be retained for the most recent five-year period, until five years after the affordability period terminates;
	 (2) 	 For home ownership housing projects, records may be retained for five years after the project completion date, except for documents imposing recapture/resale restrictions which must be retained for five years after the affordability period terminates;
	 (3) 	 For tenant-based rental assistance projects, records must be retained for five years after the period of rental assistance terminates;
	 (4) 	 Written agreements must be retained for five years after the agreement terminates;
	 (5) 	 For records covering displacements and acquisitions, see 24 CFR 92.508;
	 (6) 	 For records relating to litigation, see 24 CFR 92.508.
	  b.   	 Representatives of IFA, HUD, the Inspector General, the General Accounting Office and the state auditor’s office shall have access to all records belonging to or in use by recipients and subrecipients pertaining to a HOME funds award.
	 39.9(6) Performance reports and reviews. Recipients shall submit performance reports to IFA in the manner and on forms prescribed by IFA. Reports shall assess the use of funds and progress of activities. IFA may perform reviews or field inspections necessary to ensure recipient performance.
	 39.9(7) Amendments to contracts. Any substantive change to a contract shall be considered an amendment. Changes include time extensions, budget revisions and significant alterations of the funded activities affecting the scope, location, objectives or scale of the approved activity. Amendments shall be requested in writing by the CEO of the recipient and are not considered valid until approved in writing by IFA following the procedure specified in the contract between the recipient and IFA.
	 39.9(8) Contract closeout. Upon the contract expiration date or work completion date, as applicable, IFA shall initiate closeout procedures. Recipients shall comply with applicable audit requirements described in the HOME funds application and Iowa Housing Fund Management Guide.
	 39.9(9) Compliance with federal, state and local laws and regulations. Recipients shall comply with these rules, with any provisions of the Iowa Code governing activities performed under this program and with applicable federal, state and local regulations.
	 39.9(10) Remedies for noncompliance. At any time, IFA may, for cause, find that a recipient is not in compliance with the requirements of this program. At IFA’s discretion, remedies for noncompliance may include penalties up to and including the return of program funds to IFA. Reasons for a finding of noncompliance include the recipient’s use of funds for activities not described in the contract, the recipient’s failure to complete funded activities in a timely manner, the recipient’s failure to comply with applicable state or local rules or regulations or the lack of a continuing capacity of the recipient to carry out the approved activities in a timely manner.
	 39.9(11) Appeals process for findings of noncompliance. Appeals will be entertained in instances where it is alleged that IFA staff participated in a decision which was unreasonable, arbitrary, or capricious or otherwise beyond the authority delegated to IFA. Appeals should be addressed to the director of the affordable rental production division. Appeals shall be in writing and submitted to IFA within 15 days of receipt of the finding of noncompliance. The appeal shall include reasons why the decision should be reconsidered. IFA’s executive director will make the final decision on all appeals.
[ARC 8963B, IAB 7/28/10, effective 7/8/10]