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Department of Human Services
Gregory M. Bassi, Acting Secretary
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Neighborhood Stabilization Program
"At what point in the process is the grantee eligible for obtaining a developer and/or administrative fees?"
Developer fees will be negotiated after subgrantees have been identified. These fees are usually available either at project completion or staggered through the project at major project milestones.
Is there a limit on developer fee?
Please see the "Application Guidance" section of the RFP for a discussion on the limits of any developer fee.
Is there a limit on profit?
All profits and fees will be reviewed by the State for reasonableness prior to project approval and throughout the project. In addition, homes sold to income eligible households as their primary residence must be sold for less than the total cost to acquire and rehabilitate or redevelop the property as required by HUD.
"What information do you want in the letter regarding soft costs or developer fees?"
We are not requesting a letter regarding soft costs. If you are requesting a developer fee higher than 12%, your waiver request should illustrate why such a fee is necessary.
Can we recoup the money spent on appraisals?
Appraisals should be not done until an entity is identified as an NSP grantee. At that point, NSP funds can be used to pay for appraisal services.
What can applicants realistically expect in the way of administrative funding if in fact they are selected for approval?
The State has an overall 10% limit on administrative funds for State and local administration. Applicants must keep in mind that they need to build in project delivery costs, where appropriate, to pay for some of the direct costs of implementing different parts of their local programs. These are not considered administrative costs and include the following as examples: costs of title searches and appraisals, costs of application intake, outreach, work write-ups, cost estimates, bidding notices and inspections.
"I live in a rural county where there is no housing authority. How does my organization get technical assistance with the development of my proposal?"
Consider collaborating with another jurisdiction, community action agency or regional planning commission within your area. You may also want to consider utilizing one the State's technical assistance providers.
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