I have just received my programmatic approval letter. What is my next step?
Schedule a meeting with your Ohio Department of Mental Health (ODMH) project manager. During this meeting, the entire process will be outlined and any changes on your part that differ from the original application will be discussed.
My project involves purchase and renovation of an existing home. I have not yet received formal approval of my application. I have found a great home at a reasonable price, and I don't want to lose it while I wait. What should I do?
Our guidelines specify that several submittals, including appraisal and site feasibility inspection, are required prior to site purchase, and that our funds are contingent upon Ohio's Controlling Board approval. Therefore, you are at complete risk in purchasing the site this early in the process, and it is possible that you will not be reimbursed for the site purchase. Explore any options you may have with the seller and/or real estate agent, such as putting down a good faith deposit to hold your purchase rights for a period of time.
What kind of inspections should I undertake when purchasing: a) an existing home or b) an empty lot for new construction?
a) It depends on the age and present condition of the dwelling. Older homes should be inspected by a qualified person who looks at structural soundness and the condition and capacity of electrical, plumbing and heating systems. Hazardous materials such as asbestos and lead paint should also be analyzed. If the home is heated by oil, the oil tank and surrounding area should be inpected for leakage. (b) An empty lot should have, at the least, a Phase I Environmental Assessment completed by a professional firm. This assessment will include an examination of soil condition and contamination, a review of past use records and an investigation regarding usages of sites in close proximity. Please see Section B of our Guidelines (entitled Site Identification and Feasibility Study) for more information.
Do I need to hire an architect if I plan to do minor renovation of an existing home, such as re-wiring or adding new windows or a new roof?
Each renovation project will be reviewed on an individual basis. Factors influencing the decision include specific type of work involved and if the applicant has a person with building and specification expertise on board. An architect would be highly advisable when structural or major re-wiring or re-plumbing are undertaken. Straight replacements of existing systems such as a furnace, windows, carpet or roof would probably not require architectural services.
When will I start to receive reimbursement?
Reimbursement requests will be accepted AFTER contract, mortgage and note have been executed and you have received a state participation letter. These steps are done after the site purchase has been completed, a recorded deed has been submitted, bids for construction or renovation have been received and contracts awarded. Requests will be received for correctness with regard to reimbursement instructions .
What is the procedure if I want to receive reimbursement for moveable equipment?
Three bids must be requested from three different vendors, and the lowest bid that meets all your requirements is to be selected. Equipment may be grouped into like items for the purpose of bidding, such as furniture and appliances.
Are there additional requirements if I am getting a bank loan as part of my local funding?
Yes. If the terms of your bank loan state that the bank must be in the first lien position, we must approve our lien position being second. This is accomplished by the execution of our subordination agreement. Before we can agree to the subordination, an after-improvement appraisal must be submitted that shows what the value of the site will be when the project is complete. This figure is then used to verify that our interest is secured by subtracting the loan amount from the appraisal figure. The balance must be equal to or greater than our participation amount. Ohio Administrative Code 5122: 3-1-13 is the legal basis for securing our interest.
Can interest on a bank loan be requested for reimbursement?
How do I go about hiring an architect?
If you want to be reimbursed by us for architectural fees, our guidelines for architect selection must be followed. At least three three firms must be interviewed and scored by your interview committee. The selected firm's fee proposal and architect agreement must then be submitted to us for our concurrence.
What type of documentation do I need to close my project and get 100 percent reimbursement?
As you know, we will reimburse for approved expenses up to 90 percent of our participation until the project is completely finished. Close-out documentation includes: 1) Cover letter requesting release of the 10 percent retainage; 2) notarized financial statement listing total project costs by category (site, construction/renovation, moveable equipment, architect fees, miscellaneous); and if this is a construction project 3) contractor's affidavit and waiver of lien form; 4) certificate of occupancy.