DAR File No. 40025

Navajo Trust Fund, Trustees

Rule R661-7

Utah Navajo Trust Fund Housing Projects Policy

Notice of Proposed Rule

(New Rule)

DAR File No.: 40025
Filed: 12/28/2015 03:22:44 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule is required by Subsection 51-10-205(4)(a).

Summary of the rule or change:

This rule sets forth how to request housing assistance, types of housing assistance available, eligible purchases using Utah Navajo Trust Fund money, documentation required, purchasing and funding procedures for Housing Projects funded by the Utah Navajo Trust Fund.

State statutory or constitutional authorization for this rule:

• Subsection 51-10-205(4)(a)

Anticipated cost or savings to:

the state budget:

No aggregate anticipated cost or savings to state budget because this rule sets out the procedure for beneficiaries of the Utah Navajo Trust Fund, Navajos residing in San Juan County, to apply for funding from the Trust Fund.

local governments:

No aggregate anticipated cost or savings to local government because this rule sets out the procedure for beneficiaries of the Utah Navajo Trust Fund, Navajos residing in San Juan County, to apply for funding from the Trust Fund.

small businesses:

No aggregate anticipated cost or savings to small businesses because this rule sets out the procedure for beneficiaries of the Utah Navajo Trust Fund, Navajos residing in San Juan County, to apply for funding from the Trust Fund.

persons other than small businesses, businesses, or local governmental entities:

No aggregate anticipated cost or savings to any other individuals or entities because this rule sets out the procedure for beneficiaries of the Utah Navajo Trust Fund, Navajos residing in San Juan County, to apply for funding from the Trust Fund.

Compliance costs for affected persons:

Possible minimal cost for applicants to obtain documentation to prove eligibility or to purchase items prior to receipt of reimbursement from Utah Navajo Trust Fund.

Comments by the department head on the fiscal impact the rule may have on businesses:

This program may have a positive fiscal impact on businesses that obtain contracts from Chapters or individuals to perform the work being funded by the Utah Navajo Trust Fund.

David Damshen, State Treasurer

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Navajo Trust Fund
TrusteesRoom 180
350 N State Street
Salt Lake City, UT 84114

Direct questions regarding this rule to:

• Katharine Kinsman at the above address, by phone at 801-366-0140, by FAX at , or by Internet E-mail at kkinsman@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

02/16/2016

This rule may become effective on:

02/23/2016

Authorized by:

David Damschen, State Treasurer

R661. Navajo Trust Fund, Trustees.

R661-7. Utah Navajo Trust Fund Housing Projects Policy.

R661-7-101. Requesting UNTF Housing Assistance.

(1) Individuals requesting UNTF housing assistance must apply to their respective Chapter and follow the Chapter's procedures for application, required documents, and prioritization. All requests, budget preparation, updates and progress reports will be processed initially through the Chapter.

(a) The requesting Chapter or organization has the primary responsibility to identify clients most in need of housing assistance and shall provide written confirmation that the applicant has not received funding to construct a new home from UNTF, Navajo Royalties Holding Fund, other housing agencies or funding source within the past 20 years.

(b) Chapters are required to maintain housing assistance policies and procedures and submit a copy of the policy to UNTF once every three (3) years, and when updated or amended.

(i) The Chapter policy should include a prioritization system in accordance with the Navajo Housing Services Department numbering system. If not already provided for in the Navajo Housing Services Department numbering system, disabled, elderly and veteran applicants shall be considered first on the housing priority assistance list.

(ii) The Chapter shall have a housing application review committee.

(c) The Chapter must submit an approved resolution along with the Housing priority list that supports the request.

(d) Applicants must meet UNTF residency criteria.

 

R661-7-201. Types of Housing Assistance.

(1) New House construction from footing to exterior and interior finish.

(2) Completion of construction on houses that were started but not completed.

(3) Additions of a room(s) such as a bedroom, bathroom, or kitchen.

(4) Remodel or Renovation includes:

(a) Renovation or retrofit to accommodate clients for handicapped accessibility, including but not limited to, additions/expansion for large bathrooms, walk-in, roll-in showers, widening of hallways and doorways, expansion of stoop or deck size, exterior ramps leading up to doorways.

(b) Improvement of an existing structure such as roof repair, floor installation or replacement.

(c) Weatherization measures, including replacement of broken windows or

dilapidated doors, and installation of draft-proof windows, sealant, chalking, weather stripping, etc.

(d) Renovation of trailers or modular/manufactured homes, including the stabilization of the foundation with appropriate skirting and/or masonry foundation.

(e) Installation of house wiring, indoor plumbing, plumbing fixtures, kitchen cabinetry .

(f) Financial assistance for housing located off reservation land in San Juan County, Utah, is limited to renovation. The applicant must provide proof of ownership of the property.

 

R661-7-301. Housing Assistance Not Available.

(1) To fund the purchase of trailers or modular/manufactured housing units.

(2) For down payment assistance or closing costs are not eligible for UNTF funding.

(3) For mortgage funding or payoff

(4) For any type of loan payoffs.

(5) For purchase of appliances such as a refrigerator, range, or microwave oven.

 

R661-7-401. Housing Assistance Eligible Purchases.

(1) Water heaters if waterline is available and water is about to be turned on or, if the water heater is electric, electricity is functional.

(2) Wood and/or coal stove, stove pad, stove pipe, and through the roof stove pipe kit.

(3) One ceiling fan for distribution of heat.

(4) UNTF staff will determine if the materials proposed to be purchased are reasonably priced quality building materials.

(a) A client who desires a more expensive item than what is approved by UNTF staff must purchase that item using their own funds. UNTF will not pay client the difference between the UNTF staff approved item and the item client desires to purchase.

(b) If the client does not purchase the item in time for construction crew installation the client must to install the item at their own cost.

 

R661-7-501. Required Documentation for Housing Projects.

(1) A Navajo Nation Homesite Lease will be required of all new house construction and construction completion projects.

(2) For other types of Housing Assistance applicants are strongly encouraged to have a homesite lease available for proof of ownership, utilities and other services.

(3) Matching fund agencies shall be identified and commitment letters from each agency shall be included in the proposal package.

(4) Applicants must provide documentation naming a successor owner/lessee who is permitted to occupy the residence and is obligated to maintain the property.

(5) All new construction must be based on a floor plan showing all components of the dwelling unit to be constructed. Additionally, a specific list of all materials to be used and an estimate of total man-hours for construction is required.

(6) Proof of the applicants contribution towards the construction, addition, or renovation of a dwelling in the form of receipts for the purchase of cement as well as proof of purchase of adequate waterproof material for protection from moisture damage to the bags of cement purchased.

 

R661-7-601. Purchases Shall Be Made on Separate Invoices for Separate Applicants.

Building materials shall not be purchased and delivered at commencement of construction.

(1) Purchases and deliveries of materials shall be completed in phases according to the following schedule.

Phase 1: Foundation materials for footing, stem wall, piers, rebar, anchor bolts, and redwood or treated lumber

Phase 2: House Shell materials for framing, trusses, OSB plywood, siding, roofing, vents

Phase 3: Exterior Doors and Windows

Phase 4: Rough-in House wiring and Plumbing

Phase 5: Insulation and Drywall

Phase 6: Flooring

Phase 7: Finish Carpentry: Cabinets, Casing & Baseboard, Exterior trim, Soffit, Interior and Exterior Painting

Phase 8: Finish House wiring and Plumbing

(2) Purchases for Stoops, Steps, or Decks can be performed at any point after Phase 1.

(3) All documentation must be submitted to the Chapter

(a) Requests for payment must include all materials receipts as well as verification signed by the homeowner, chapter representative, or UNTF representative picking up the items or signing for the delivery.

(b) The person signing the receipt shall deliver the receipt to the Chapter and/or UNTF office and shall safeguard materials from theft or damage.

(c) Upon receipt of material verification forms by the UNTF Administration, invoices will be processed for payment directly to the vendor.

 

R661-7-701. Funding.

(1) UNTF preference is to fund projects is on a reimbursement basis. However, in exceptional circumstances the UNTF Administrator has the authority to make advance disbursements up to Five Thousand Dollars ($5,000.00) for mobilization expenses.

(2) UNTF will disburse approved funding directly to Chapters, or identified and approved contractors and/or vendors.

(3) The Chapter or UNTF will retain ten percent (10%) of the approved contractor billings until proof of completion of the housing project is provided to UNTF.

(4) The Chapter shall provide UNTF staff with an annual report identifying percentage of project completion and an explanation of what remains to be completed.

 

KEY: housing, chapter, Utah Navajo Trust Fund (UNTF), eligible purchases

Date of Enactment or Last Substantive Amendment: 2016

Authorizing, and Implemented or Interpreted Law: 51-10