Program Description
The purpose of the pilot program is to accelerate the response of the LHA/DHCD
partnership to an emergency condition at the LHA by minimizing the time required for DHCD process in the project Critical Path. No statutory or regulatory requirements are eliminated or relaxed and all relevant procurement statutes must be observed by the LHA, particularly the requirements for prevailing wages and bonds. The LHA takes the lead in managing the solution of the emergency problem at the LHA with DHCD playing only a supportive role and then only to the extent requested by the LHA. The program allows a LHA to proceed on its own to accomplish the work required to address the emergency need, subject only to basic budget and schedule limits.
Rationale
- The premise for this pilot program is as follows:
"LHA's are capable of properly managing the design and implementation of solutions to building-related problems in accordance with all statutory requirements and published guidelines and standards without DHCD oversight." - A pilot project that starts with very small, simple problems and eliminates as much duplicate DHCD oversight as possible will allow us to determine the minimum amount of DHCD activity that is needed to support such independence.
Eligibility
Every Local Housing Authority (LHA) is eligible to participate in this pilot program but none are required to do so. The pilot is open to each LHA that receives an emergency award with an estimated construction cost of less than $25,000 that requires only work in accordance with practices described in DHCD Design and Construction Guidelines and Standards (DCGS).
Parameters
- The maximum total value of the actual construction contract(s) for a project under this pilot program cannot exceed $25,000, including change orders. That means that, as a practical matter, initial construction contracts probably should not exceed $22,500 so that unforeseen circumstances can be accommodated.
- Projects under this program must adhere strictly to the Bureau's Design and Construction Guidelines and Standards. Note that these are not by themselves specifications but are reference resources for preparation of construction documents.
Mechanics
To participate in the program, an LHA that receives an Emergency Award must do the following:
- Notify your DHCD Project Manager in writing of your desire to place a particular
emergency award in the program and submit a scope, budget and schedule; see below for
template forms. - Promptly process and execute the Contract for Financial Assistance with DHCD for the project. Remember that the funding for the project only goes until the end of the fiscal year (June30) in which construction will be complete according to your schedule. Plan on completing construction and incurring all other costs before the CFA expiration date or request an extension of time from your project manager at least 8 weeks before the expiration date.
- Properly procure the services of a design professional, if necessary, based on your staff capacity (see the DHCD website for guidance in how to do this). If the designer's fee exceeds $10,000, the Designer Selection process must be used.
- Prepare a bid package for the project using applicable front-end materials, plans and material and/or performance specifications in accordance with practices described in DHCD Design and Construction Guidelines and Standards. This can be done by a qualified LHA staff member or a consultant hired by the LHA, such as a design professional (see above). The reasonable cost of this consultant will be treated as a reimbursable expense over and above hard construction cost;
- Put the job out to bid (see M. G. L. c. 149 for jobs of this size - we will put instructions on the website ASAP), receive construction bids, award and execute the construction contract, using contract forms approved by DHCD. Any proposed modifications to the DHCD forms must be approved by DHCD before their use. As part of its approval to include a project in this pilot, DHCD will waive the requirement that it approve and countersign each design and construction contract and will neither review nor approve the details of either such contract and its attachments as part of the project process. DHCD will probably perform such a review as part of its review and audit process to test the efficacy of the pilot.
- Monitor construction as required and approve invoices for payment for completed work and forward copies to your Project Manager for payment.
- Maintain the work after it is completed;
- When requesting release of funds, certify that services were procured according to statute, are complete and payable, and are an appropriate expenditure for the awarded project. Retain a full procurement record in your files.
- Maintain a complete file documenting adherence to all of the requirements in this program document.
Scope
The project scope includes a description of the problem and the proposed solution that are consistent with the award. Be sure to include the development number, whether all buildings are included, or, if not the affected property addresses. If you are able to, include all the building components that are to be upgraded as part of the proposed solution.
Budget
The LHA must create a project budget (use budget template attached) and must adhere to that budget.
Schedule
The LHA must create a schedule (use schedule template attached) and must then adhere to the schedule. The key issue for DHCD is the fiscal year in which spending on the project occurs as that affects DHCD bond cap.
Submit the scope, budget and schedule to your project manager with your notification regarding participation in the program. Submit any modifications as soon as you are aware of changes. If the Total Development Cost (TDC) of the project is more than the award amount, the budget needs to be approved by DHCD before going out to bid.
DHCD Technical Assistance
Design and Construction Guidelines and Standards, model design and construction contracts, construction front-end documents, and bidding handbooks are available on the DHCD's website.
Contact
For assistance using these documents or any other aspect of this process, call your Project Manager.
Documentation
AERP Front End: $0 - $10,000 
(revised 07/01/11)
AERP Front End: $10,000 - $25,000
(revised 07/01/11)