|
The
formula.
To determine the lead safe housing requirements that apply to a
particular rehabilitation project, you need to calculate the level
of assistance. The level of assistance is the lower of:
- Per
unit rehabilitation hard costs
- Per
unit Federal Assistance
Some
Definitions. To understand these terms, it helps to know the
following definitions:
- Rehabilitation
Hard Costs. The rehabilitation costs are calculated using
only hard costs (e.g., physical improvements, utility connections,
repairs and replacements, and energy-related improvements). They
do not include soft costs or other such costs (e.g., financing
fees, relocation costs, acquisition, or administrative costs),
nor do they include the costs of lead hazard evaluation and reduction,
as described below.
Note that it may be difficult to determine if a hard cost
is a rehabilitation cost or a lead hazard reduction cost. For
more help on this question, see Is
This Rehabilitation or Lead Hazard Reduction?.
- Lead
Hazard Evaluation and Reduction Costs. Lead hazard evaluation
and reduction costs include costs associated with site preparation,
occupant protection, relocation, interim controls, abatement,
clearance, and waste handling attributable to lead-based paint
hazard reduction.
- Federal
Assistance. The Federal assistance includes all Federal
funds provided to the rehabilitation project, regardless of whether
the funds are used for acquisition, construction, soft costs,
or other purposes. This also includes funds for program income,
but excludes low-income housing tax credit funds (LIHTC), Department
of Energy Weatherization Program funds, or non-Federal HOME Program
match funds.
Doing
the calculation. For single-family projects, this formula is
easysimply compare federal dollars to rehabilitation hard
costs. However, in multifamily projects, an additional formula is
needed to allocate the cost of common areas and other shared resources.
This
formula is: A/AU + B/TU
Where:
| A
= |
Rehabilitation
hard costs for all assisted dwelling units (not including
common/exterior areas) |
| AU
= |
Number
of federallyassisted units in the project |
| B
= |
Rehabilitation
hard costs for common areas and exterior surfaces |
| TU
= |
Total
number of units in the project |
For
help doing these calculations, use these examples
to help determine the level of assistance for single family units,
multifamily properties with all federally assisted units, and for
multifamily properties with both federally assisted and non-assisted
units. |