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78 Page 13 If the acquisition price is significantly higher than appraised value, the County may reject the application or deny the funding unless the price can be negotiated reasonably close to the appraised value, or the applicant can provide a justification for the difference. J. Payment of Prevallin2 Wa2es. If any of the County's federal funds are to be used for the development of new housing, the construction component will be subject to local prevailing wages. The sponsor may choose to use either State or Federal wage decision depending on requirements of other sources. If your project involves CDBO funds for residential rehabilitation of 8 or more units Q! your funded project involves construction or rehabilitation of 12 or more HOME-assisted unitS your construction contractor will be required to pay prevailing wages and provide periodic reports to document such payments in accordance with the Davis-Bacon and Related Acts as set forth in the Code of Federal Regulations (Title 29 CFR Parts 1,2,5,6 and 7). The process to comply with the Davis-Bacon Act federal labor standards may add a couple of weeks to your bidding process. Compliance activities include accessing the appropriate current prevailing wage decision from the federal Department of Labor website (www.access.2Do,llov/davisbacon), reviewing the draft and final bid documents by County Housing staff, advertising for bids, bid opening, award, and holding a preconstruction conference. Negotiated bids are acceptable provided that the Project sponser can substantiate reasonableness onhe price. In your obtaining construction cost estimates to support the application, it is strongly advisable to secure two bids made on the basis of union scale (e~en if the bidder may be non.union) so that project costs will not unexpectedly increase as a result of the prevailing wage requirements. Costs for accessibility modifications for persons with physical disabilities and builders risk insurance may need to be included in the estimate. Copies of cost estimates, if available, should be attaChed with the application. K. Prooem Standards. At a minimum, housing that is assisted with County Housing funds must meet federal housing quality standards. Newly constructed or substantialty rehabilitated (see section L for definition) housing must meet all applicable local codes, rehabilitation standards, ordinances, and zoning ordinances. Newly constructed housing must meet energy efficiency standards of the current edition of the Model Energy Code published by the Council of American Building Officials. Substantially rehabilitated housing must meet the cost effective energy conservation and effectiveness standards set forth in 24 CFR part 39. Title 24 of the California Energy Code meets the above requirement. Housing that is to be rehabilitated after transfer of ownership interest must be free from any defects that pose a danger to health or safety before transfer of an ownership interest, and must meet the applicable property standards not later than two years after the transfer. In all new construction and substantial rehabilitation projects, Section 504 of the Federal Rehabilitation Act requires at least 5% of the HOME assisted units must be accessible to individuals with mobility impairments and an additional 2% to individuals with sensory impairment (see Section M). L. Lead Mitie:ation ReQuirement. HUD requires that certain housing projects built before 1978 will need to meet lead-mitigation standards. These include activities involving housing rehabilitation, tenant-based rental assistance, acquisition, leasing, support services, and operations. Housing exclusively for seniors or persons with disabilities is exempted, unless a child under age 6 is expected to reside there. Also exempted are O-bedroom dwellings, including efficiency apartments, single-room occupancy strUctures (SROs), or rentals of individual rooms in residential dwellings. M. Ac:cessibilitv ReQuirements. Federal law requires that housing and non-housing developments and programs assisted with federal funds comply with accessibility requirements under Section 504 of the Rehabilitation Act of 1973. This Act prohibits discrimination against otherwise qualified handicapped persons in the provision of programs, facilities and employment supported by Federal funds. For capital projects, the Department of Housing will require that developers and their architects sign a certification that their construction documents meet the federal accessibility requirements. Program Guidel ines for Funding of Housing Development Activities FY 2009.10 6