January 20, 2010
USDA Rural Development ~ Transition Plan Proposal
Date: December 31, 2009
Dear Owners and Management Agents of USDA Rural Development Financed Properties,
At the USDA Rural Development (RD) 2009 MFH Management Meeting held July 28, 2009, we discussed the increasing need to complete the work outlined in existing Transition Plans or Capital Needs Assessments (CNA), as it is directly related to the 504 of the 1973 Rehabilitation Act (504 Act), the Americans with Disabilities Act (ADA) and California Title 24 Accessibility regulations (T24). In addition, we are aware that there may be an overwhelming amount of work to be performed on a property with limited reserves and, therefore, many Owners and Management Agents (O/A) have been unable to accomplish the required repairs to bring their properties into compliance.
A few O/A came together and have developed a strategy that we believe will aid us in satisfying the rehabilitation for accessibility upgrades. We have discussed the idea with RD and as such, RD does not object to third party contractors and O/A working together to develop feasible plans which would make the rehabilitation of the non-compliant properties a reality. The idea presented in this letter gives the O/A the opportunity to enter into a negotiated agreement, subject to the RD review and consent, with a qualified third party contractor who could serve as a “Project Manager” and assist them with the completion of the items outlined in the Transition Plan/CNA. The third party could be any qualified individual or firm (Architect, Contractor, accessibility consultant, etc.) who is knowledgeable with the various accessibility requirements. This approach should offer a quantity discount for all properties to benefit.
It should be noted Rural Development is in no way endorsing any particular Architect, Contractor, or Project Manager or Management Agent. Please note that your participation is strictly optional. This document and any others submitted in response to it must comply with RD regulations and does not supersede any RD regulatory requirements.
If an O/A is interested in participating, the O/A will provide a list of their properties. Please use the attached form to gather and submit your Property(s) information as this form will be used to merge all properties interested. After all the lists are received, a master list will be compiled and distributed to those third parties who have expressed interest in working with O/A’s to complete the rehabilitation for accessibility upgrades. Third parties will assess the property list and determine their individual “fee” based on the number of properties in a certain radius, meaning the more properties in a specific area the lower the fee. The idea is to implement this process in two or three phases depending on the needs of the property.
Phase I –
For the agreed upon “fee” the Project Manager will walk the property with the current Transition Plan/CNA, identify additional needs, include updates or new requirements, identify if an Architect is required, compile a preliminary scope of work.
Phase II –
The Project Manager and the O/A will review the preliminary scope of work. Proposed scope of work should be prioritized in light of available funds from the project Reserve Account, other funding sources such as the Multi-Family Housing Preservation and Revitalization Program (MPR), third party fund sources such as HOME, Redevelopment Agency funds and cash contribution from owners. RD will review and approve the final repair list to ensure cure of any immediate health and safety issues and full compliance with the ADA, Section 504 of the 1973 Rehabilitation Act and California State accessibility requirements.
Phase III -
Once the scope of work is agreed upon, the Project Manager will send out Request for Proposals (RFP), to experienced Contractors. Once the Project Manager has gathered and reviewed the RFP’s, the RFP’s will be presented and reviewed with the O/A for a final decision. The O/A will prepare the appropriate documentation, 3560-12, “Request for Authorization To Withdraw Reserve Funds” for RD review and approval. The Project Manager will prepare the contracts on behalf of O/A, meet and walk the property with Contractors and oversee the work through completion.
The above phases are suggested guidelines, as each property may have a special circumstance, which might require a different method of implementation or direction.
O/A may utilize the existing Transition Plan/CNA currently prepared for their projects in order to obtain a quote from prospective Project Managers. If no Transition Plan/CNA exists for the project, Owner/Agent will submit a Statement of Work (SOW) to RD for review and approval before requesting preparation of a new Transition Plan/CNA.
Interested O/A should complete the attachment and email it directly to ADA504T24@gmail.com, this email is set-up specifically for this purpose. Please send your information submitted by the close of business, Friday, February 12, 2010.
In addition, if you have any questions or you know of any interested parties who would like to participate as a third party contractor please have them contact the following email ADA504T24@gmail.com.
Thank you for your time and we look forward to hearing from you.
Sincerely,
Lisa Richards, MBS Property Management, Inc.
Gary DaPrato, Hyder & Company
Carolyn Morris, PAM Companies
