HUD 52482 Guide Form of Turnkey Developer's Packet

Guide Form of Turnkey
Developer's Packet

U.S. Department of Housing
and Urban Development
Office of Public and Indian
Housing

OMB Approval No. 2577-0157 (Exp.
3/31/2020)

Public reporting burden for this collection of information is estimated to average 2 hours per response, including the time
for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing
and reviewing the collection of information. HUD may not conduct or sponsor, and an applicant is not required to respond
to a collection of information unless it displays a currently valid OMB control number. This collection of information is
required for developing a public housing project pursuant to HUD regulations 24 CFR 905. The information will be used to
provide HUD with sufficient information to enable a determination that funds should or should not be reserved or a
contractual commitment made. This information collection is mandated pursuant to the U. S. Housing Act of l937. The
information requested does not lend itself to confidentiality.
1. Purpose. This form provides a potential turnkey
developer with all the information necessary to prepare
a turnkey proposal. It also provides the format for PHA's
to request proposals
2. Prepared by: The Request for Proposals and Part I will
be prepared by the PHA. Parts II, III and IV may be used
as printed. Some of the forms and other material in Part
IV must be obtained from the HUD field office. Approval
must be obtained for any modifications to the Packet not
previously authorized by the HUD field office.
3. Number: The PHA shall prepare sufficient developer's
packets to provide for distribution to all interested
developers.
4. Distribution: The PHA shall provide one copy of the
completed packet to any interested developer. One copy
shall be submitted to HUD along with the PHA proposal.

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5. PHA instructions concerning preparation: The
Request for Proposals (RFP) and Part I, Project
Description, are to be completed by the PHA based upon
local preferences or requirements. Format sentences are
typed in regular type. PHA notes or instructions are
typed in another distinctive style and are not meant to
be included in the final text. The remaining parts may be
used as printed here. Part II outlines the general
requirements of the program. Part III discusses the
proposal contents. Part IV lists the various forms and
documents which are attachments to this Packet. Copies
of these forms maybe obtained from the HUD field
office. If quantities are limited, they may be reproduced
locally by the PHA along with this Packet.

Requests for Proposals

U.S. Department of Housing
and Urban Development
Office of Public and Indian
Housing

OMB Approval No. 2577-0157 (Exp.
3/31/2020)

The ___________________________________________ (Insert Legal Name of PHA) will accept proposals for
________________________________ (Insert “Newly Constructed” or “Substantially Rehabilitated”) housing units under
the Public Housing Program to be located in____________________________________ (Insert Name of Community and
State), and known as _____________________ ( Insert Project Number).
Turnkey proposals may be submitted for not more than ______ (Insert Total Number of Units) units to be provided in
_____ (Insert Structure Types) structures.
The following is the maximum number of units for each size by bedroom count:
(Insert number of each size desired.) Delete inapplicable sizes.
Maximum number of Units
No. of Bedrooms

Elderly

Family

Designated
UFAS/ADA
Mobility
Accessible Units

Designated
UFAS/ADA
Sensory
Accessible Units

Units with some
accessibility
features (under
the Fair Housing
Act, UFAS, and/or
the ADA)

0
1
2
3
4
5
6

The project will also consist of the following maximum amounts and types of non-dwelling space:
(Insert the maximum amount calculated for each type of space.)
Management Space ____________________ square feet
Maintenance Space ____________________ square feet
Community Space _____________________ square feet
If proposals are submitted for less than the total number of units requested, non-dwelling space will be subject to
limitations stated in the Developer's Packet.

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Turnkey proposals must be received by _______ (Insert Time of Deadline) of _________________ (Date of Deadline) at
the address identified below. Turnkey proposals received after the deadline will be returned to the developer without
being considered. Interested developers should obtain a Turnkey Developer's Packet, which provides detailed project
information and submission requirements from: (Insert Name of PHA Official, PHA Name and Address, and PHA Telephone
Number)
Turnkey proposals must be received by _______ (Insert Time of Deadline) of _______________ (Date of Deadline) at the
address identified below. Turnkey proposals received after the deadline will be returned to the developer without being
considered. Interested developers should obtain a Turnkey Developer's Packet, which provides detailed project
information and submission requirements from: (Insert Name of PHA Official, PHA Name and Address, and PHA Telephone
Number).

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Guide Form of Turnkey
Developer's Packet

U.S. Department of Housing
and Urban Development
Office of Public and Indian
Housing

OMB Approval No. 2577-0157 (Exp.
3/31/2020)

Introduction
The United States Department of Housing and Urban
Development (HUD) is providing financial assistances to
this Public Housing Agency (PHA) to develop a lowincome housing project pursuant to Sections 4 and 5 of
the United States Housing Act of1937. The PHA has
selected the Turnkey method to develop the housing
identified in this Turnkey Developer's Packet (Packet).
Under the Turnkey method, developers submit proposals
in response to a Request for Proposals (RFP) from the
PHA. The proposals that meet the requirements of this
Packet are reviewed, rated, and ranked by the PHA. The
highest rated turnkey proposal which represents the
best “total package” is submitted to HUD for approval.
After HUD approval of the turnkey proposal, the
developer's architect prepares the preliminary design
and working drawings and the construction
specifications for PHA and HUD approval.
Prior to start of construction of rehabilitation, the PHA
and the developer execute a Contract of Sale under
which the PHA agrees to purchase the completed project
from the developer for a specified price. The developer is
fully responsible for all development and construction
activities, such as purchasing sites or properties,
completing all site improvements (including structures),
obtaining utility hook-ups and local building permits and
approvals and obtaining construction financing. After
satisfactory project completion, the PHA purchases the
project from the developer.
The developer is fully responsible for all development
and construction activities, such as purchasing sites or
properties, completing all site improvements and any
accessibility remediation under Section 504, the ADA,

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and the Fair Housing Act, if applicable (including
structures), obtaining utility hook-ups and local building
permits and approvals, and obtaining construction
financing.
The completed project will be owned and managed by
this PHA to provide rental housing for low-income
households. The structures, housing units, and nondwelling facilities shall be designed to provide a
wholesome living environment. Emphasis shall also be
placed on durable construction, efficiency and economy
of maintenance, energy conservation, and suitable
recreation space to enhance a wholesome living
environment, over the thirty-year term of the PHA's
permanent financing for purchase of the project.
In order to be considered by the PHA and HUD, turnkey
proposals must comply with the program and submission
requirements identified in this Packet. Accordingly,
interested developers should review the project
description (Part I), the program requirements(Part II),
the turnkey proposal content (Part III) and the required
program documents and forms (Part IV), prior to
preparing and submitting a turnkey proposal to the PHA.
Interested developers must submit their turnkey
proposals to the PHA by the deadline date identified in
the RFP. Turnkey proposals that are not received by the
deadline, or which are determined to be incomplete or
non-responsive will not be considered by the PHA. Any
questions that you may have should be directed to the
individual identified in the RFP.

Part I Project Description
PHA Instructions: This Part shall be completed by the PHA to provide specific details about the proposed project. The PHA
shall ensure that the information and requirements stated in this part comply with the Public Housing Development
Regulation (24 CFR 905), related state and local building requirements, and HUD at the project planning conference.
1. Community. Identify the name of the community for which the housing project is proposed. State whether or not the
community is a Community Development Block Grant (CDBG) recipient that has an approved Housing Assistance Plan
(HAP).
2. Site Location. Identify the general locations for assisted housing stated in the HAP, and any local preferences for sites
(e.g., CDBG
Activities, Neighborhood Preservation Areas). For communities not covered by a HAP, state any local preferences for sites
in areas that
are consistent with the public housing site and neighborhood standards and local planning and housing development
activities.
3. Housing Type. State whether the proposed housing is to be newly constructed or substantially rehabilitated.
4. Housing Units. Identify the number of units for each structure type and household type by number of bedrooms as
follows:

0

Number of Bedrooms
Elderly
1
2
3

Family
4

5

6

Elevator
Detached
Semi- Detached
Townhouse/Row
Walk-up Apartment
Total Units
Mobility Accessible Units
Included in Above*
Sensory Accessible Units
Included in Above*
Units with Some
Accessibility Features
Included in Above**
**Identify the number of units to be designed specifically for use by individuals with disabilities that comply with the
Uniform Federal Accessibility Standards (UFAS) and the 2010 ADA Standards.
**Units with some accessibility features under UFAS or the 2010 ADA Standards, and/or that comply with the Fair Housing
Act.

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The number of units identified above shall not vary from the unit distribution identified in the area office invitation for a
PHA proposal. In the case of a project involving Substantial Rehabilitation provide a statement that:
A. The total number of units for elderly and family households are maximum amounts;
B. The number of units by structure type are preferred, but the PHA will consider substitution of less expensive structure
type (e.g., townhouse/row instead of detached) if appropriate for household type provided that the number of units does
not exceed the totals shown for a specific number of bedrooms;
C. If the larger units (number of bedrooms) are not available, a one-for-one substitution of smaller units will be consistent
with the applicable housing assistance plan; and
D. The PHA will give preference in selecting turnkey proposals to those proposals that most clearly adhere to the proposed
distribution.
5. Special Building Requirements. State any local preferences or building requirements or limitations. These may include
such items as:
A. Security Systems (access, surveillance, standby power, etc.);
B. Central TV Antenna System;
C. Same key for both housing unit door and mail box;
D. Design requirements to complement neighborhood architecture and standards;
E. Energy Conservation Requirements;
F. Air Conditioning Systems;
G. Building Height Restrictions;
H. Number of buildings and distribution of unit sizes (number of bedrooms) among buildings; and
I. Space for child care which meets local standards and codes.
J. Rental Assistance Demonstration RCC special condition or meet the terms of a fair housing or civil rights settlement or
remedial order
6. Special Site Requirements. State any local preferences or building requirements or limitations. This may include such
items as:
A. Preference or requirement for more than one site
B. Limitation on number of units per site by bedroom size
C. Parking Requirements - No. of spaces outside, inside, covered, for individuals with disabilities, and parking space per
dwelling unit ratio
D. Recreation space and equipment
E. Accessibility to commercial areas, churches, schools, transportation
F. Statement that HA ill not pay for off-site work to bring utilities to site unless it is local practice and developers normally
pay costs of extending utilities for privately owned projects.
7. Prototype Costs. State that costs for dwelling construction and equipment (defined in Part II of this packet) are limited
by law to no more than 10 percent above the published amount for the size and structure type for the area. Indicate the
applicable prototype costs for this project and the date they were published in the Federal Register (a legible photocopy of
the appropriate Federal Register page may be used instead of the following table, if desired).

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Detached
Row
Elevator
Walkup

0
$
$
$
$

1
$
$
$
$

Bedroom Size
2
$
$
$
$

Insert a statement that HUD will adjust the prototype
cost base for the project (using a commercial cost index)
to recognize actual changes (increases or decreases) in
construction costs from the effective date of the unit
costs published in the Federal Register. This is done for
comparison purposes only at early stages of processing.
The developer's costs should always reflect current
conditions.
8. Utilities. State the utilities preferred for the project.
Enclose the HUD prepared form HUD-52485. Indicate
that any other proposed utility combination and heating
and cooling systems must be demonstrated to be the
most cost effective on the form HUD-52485.
9. Non-Dwelling Space. This section should be a detailed
statement of the requirements and limitations for nondwelling space such as a community rooms*,
maintenance and office space and space for childcare
facilities, health care facilities, or congregate dining
facilities, if justified. If there is a requirement for several
sites, the proration or consolidation requirements for the
non-dwelling space must be clearly defined. The PHA
may require a separate proposal for part or all of this
space especially for proposals for less than the total
number of units requested.
*Includes recreation or hobby rooms, but not hallways,
stairways, mail rooms, boiler rooms, closets, lobby, or
laundry.
10. Special Project Requirements and Instructions. This
section should include any other information,
requirements or instructions pertaining to this project.
Examples of items are:
1. Whether staged construction will be allowed.

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3
$
$
$
$

4
$
$
$
$

5
$
$
$
$

6
$
$
$
$

2. Any dwelling or non-dwelling installed equipment to
be furnished by the PHA and its estimated cost.
11. Proposal Evaluation Criteria. The standard rating
procedure is described in Part IV. If the PHA desires to
use the optional procedure, the additional criteria and
the point value to be assigned shall be described in this
section.
12. Proposal Instructions. Provide specific details for
submitting proposals, such as:
A. The deadline time and date for submitting proposals.
Proposals received after the deadline will not be
considered.
B. The official address for submitting proposals.
C. Statement that proposals must be complete. The PHA
will determine if any omission makes the proposal “nonresponsive”. A proposal is considered to be “nonresponsive” if critical information is mission or the
proposal represents a major deviation from this packet.
In such cases the developer will be notified, the reason
stated, and the proposal will not be considered by the
PHA. In the event of minor omissions, the PHA may give
the developer additional time to submit the missing
information. A minor omission is one which generally will
not affect any of the proposal evaluation criteria
considerations.
D. Statement that all requirements for Part II of this
packet must be considered in developing the project.
E. Procedures for sealed envelope submissions. Although
proposals will be opened after the deadline, a selection
will not be announced until all proposals have been rated

under the proposal evaluation criteria and HUD approval
has been obtained. A proposal is not a bid and price only
one element to be considered.
F. Number of copies of proposals required.
G. Reference project number assigned to the project.
13. New Construction Site and Neighborhood Standards
New construction site and neighborhood standards. The
proposed sites for new construction units must be
approved by the HUD field office as meeting the site and
neighborhood standards at 24 CFR 905.602. Check all
applicable statements below:
___(1) The site is adequate in size, exposure, and
contour to accommodate the number and type of units
proposed, and adequate utilities (water, sewer, gas, and
electricity) and streets must be available to service the
site.

Part II. General Program Requirements
Section 1. General
Introduction. This part explains the general program
standards and policies and the statutory requirements
related to the development of public housing. These
requirements are applicable to all turnkey proposals.
Developers are advised to review this part thoroughly to
ensure a complete understanding of their
responsibilities. The regulations for this program may be
found at 24 CFR905 and the applicable HUD Handbook is
The Capital Fund Guidebook.
1. State and Local Requirements. The developer must
comply with all State and local laws and ordinances
relating to the development of a project. This includes
State and local requirements relating to employment,
obtaining bonds and licenses, and complying with
building codes and zoning requirements.

___(2) The site and neighborhood is suitable from the
standpoint of facilitating and furthering full compliance
with the applicable provisions of title VI of the Civil
Rights Act of 1964, the Fair Housing Act, Executive Order
11063, and implementing HUD regulations.
___(3) The site cannot be located in an area of minority
concentration unless:
___(a) Sufficient, comparable opportunities exist for
housing for minority families, in the income range to be
served by the proposed project, outside areas of
minority concentration; or ___(b) The project is
necessary to meet overriding housing needs which
cannot otherwise feasibly be met in that housing market
area.
___(4) The site is located in a racially mixed area.
___(a) The project will not cause a significant increase in
the proportion of minority to non-minority residents in
the area.
2. Prevailing Wage Rates. Development related
contracts entered into by the developer provide for the
payment of prevailing wages.
a. Architects and Technicians. All architects, technical
engineers, draftsmen and technicians employed in the
development of the project shall be paid not less than
the wages prevailing in the locality.
b. Laborers and Mechanics. All laborers and mechanics
employed in the development of a project shall be paid
not less than the wage prevailing in the locality, as
determined by the Secretary of Labor pursuant to the
Davis-Bacon Act (40 U.S.C. 276).
3. Developer's Price. The turnkey developer's price for
the proposed project shall be based on construction
costs as of the deadline date specified in the Request for
Proposals. The price in the proposal shall be subject to
the following modification.
a. The price shall be subject to reduction to the extent
that the HUD appraisal indicates a site value less than

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the proposed amount for the site and/or to the extent
that the proposal substantially exceeds the HUD
estimated replacement cost for the project.

amount paid or payable by the developer as evidenced
by the original tax bills or receipts will be added to the
contract price at settlement.

b. The portion of the developer's estimated price for
dwelling construction and equipment may not exceed
the project prototype cost limits by more than 10
percent.

4. Proposal Evaluation System. Proposals will be
selected on the basis of free and open competition. They
will be evaluated objectively according to the procedures
and criteria set forth in the Proposal evaluation System
which is included in Part IV of this Packet and any
additional criteria identified in Part I.

c. At each subsequent processing stage, HUD will adjust
the price to reflect changes (increases or decreases) in
construction costs as identified by a commercial cost
index. Any time lost due to the developer's failure to
adhere to schedules set by HUD or the PHA will not be
recognized.
d. At the time the Contract of Sale is executed the
maximum price that can be approved is the lower of:
(1) the revised price submitted by the developer, or
(2) the original proposal price as updated by HUD, or
(3) the project replacement cost identified by HUD.
e. The price to be stated in the Contract of Sale shall also
be adjusted to reflect the developer's actual interest cost
for construction financing.
f. The estimate of all State and local taxes, other than
Real Property taxes and assessment, payable by the
developer with respect to the project shall be included in
the total developer's price and shall be itemized by type,
rate and estimated amount. In the event these taxes are
exempt or abated after execution of the Contract of Sale,
the amount applicable shall be subtracted from the total
contract price at settlement.
g. The total developer's price shall not include any
amount for real property taxes and assessment. The

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5. Previous Participation. Developers must successfully
complete HUD Previous Participation clearance before
selection is approved by HUD. Clearance is initiated by
the developer furnishing (as part of the turnkey
proposal) completed forms HUD-2530 with respect to
the developer and other principals. HUD will review its
experience with the developer and the other principals
on the projects listed on the forms. An opportunity will
be afforded the developer or other principals to explain
any adverse information found during the clearance
process.
6. Contract of Sale. The Contract of Sale, form HUD53015, included in Part IV of this packet, will be executed
by the PHA and the selected developer. Both parties
should care-fully review the Contract of Sale to ensure an
awareness of its requirements. The turnkey developer
must certify (as part of the proposal) that the developer
has read, understands, and will comply with its
provisions.
7. Insurance Requirements. Any risks and insurance
protection during construction are solely the turnkey
developer's responsibility as owner and seller.

Section 2. Fair Housing and Equal Opportunity
Introduction. The fair housing and equal opportunity
requirements stated in this section apply to contractors
and turnkey developer activities during project
development. This includes site selection, award of
contracts and sub-contracts, employment of minority
and women-owned business enterprises, and
employment practices.
1. Titles VI and VIII and Executive Order 11063. Title VI
of the Civil Rights Act of 1964 (42 U.S.C. 2000d) and
Executive Order 11063, prohibit discrimination on the
basis of race, color, or national origin in Federally
assisted programs. Title VIII of the Civil Rights Act of 1968
(42 U.S.C. 3601), prohibits discrimination based on race,
color, religion, sex, disability, familial status, or national
origin in the financing, sale, or rental of housing.
2. Section 504 of the Rehabilitation Act of 1973. Section
504 of the Rehabilitation Act of 1973 (29 U.S.C. 794),
prohibits discrimination in Federally assisted programs
against any otherwise qualified individual solely by
reason of a disability.
3: Title II of the Americans with Disabilities Act of 1990
(ADA) (42 U.S. C. §§ 12131-12134) prohibits
discrimination on the basis of disability in programs or
activities of state or local governments.
4. Age Discrimination Act of 1975. The Age
Discrimination Act of 1975 and 42 U.S.C. Sections 6101‐
6017 Prohibits with certain exceptions, discrimination
against any otherwise qualified individual solely on the
basis of age.
5. Executive Order 11246. Contracts for construction
work are subject to Executive Order 11246 (30 FR 12319)
as amended by Executive Order 11375 (32 FR 14303),
and applicable implementing regulation (41 CFR 60-1.4),
rules and orders of HUD and the Office of Federal
Contract Compliance Programs of the Department of
Labor. Executive Order 11246 prohibits discrimination
and requires affirmative

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6. Section 3 of the HUD Act of 1968. Projects under
development are subject to Section 3 of the Housing and
Urban Development Act of 1968 (12 U.S.C. 1701u), which
requires that the employment and other economic
opportunities generated by certain Federal financial
assistance for housing and community development
programs shall, to the greatest extent feasible, be
directed to low- and very low-income persons,
particularly those who are recipients of government
assistance for housing and to business concerns which
provide economic opportunities to low-and very-low
income persons. An affirmative action plan pursuant to
24 CFR 135 must be prepared prior to execution of the
Contract
of Sale.
7. Minority and Women-Owned Business Enterprise.
Executive Order 11625, Prescribing Additional
Arrangements for Developing and Coordinating a
National Program for Minority Business Enterprise,
encourages participation in Federal programs by
business concerns owned by minority group members.
Executive Order 12138, Creating a National Women's
Business Enterprise Policy, encourages participation in
Federal programs by business concerns owned by
women. In accordance with these Executive Orders,
program participants (e.g., PHAs, contractors, turnkey
developers) shall take affirmative action to encourage
participation by businesses owned and operated by
minority groups and women. These affirmative actions
may include: conducting out-reach programs to expand
opportunities for participation by such businesses in the
public housing program; providing assistance and
guidance to such firms that have demonstrated a desire
to participate in public housing development activities;
and establishing goals for such businesses, in terms of
the dollar value of contracts

Section 3. Site and Neighborhood Standards
Introduction. Each site proposed for a public housing
project must comply with the site and neighborhood
standards identified in this section. The PHA and turnkey
developer shall make every effort to select sites that will
minimize the number of households to be displaced.
Proposed sites must comply with all environmental,
displacement, relocation, and acquisition requirements.
These standards should be reviewed by the turnkey
developer before a site is selected and a purchase option
is obtained. Each proposed site to be newly acquired for
a public housing project or for construction or
rehabilitation of a public housing project must be
reviewed and approved by the field office as meeting the
following standards under 24 CFR905.602, as applicable.
1. Section 213 of the HCD Act of 1974. Each site must be
consistent with any applicable Housing Assistance Plan
(HAP). Sites proposed for newly constructed or
rehabilitated projects must be within the general
locations specified in any applicable HAPS. The
community's HAP is submitted to HUD as part of the
Community Development Block Grant (CDBG)
application. A community that is not participating in the
CDBG programs may also submit a HAP.
2. Facilities and Services. The developer should select
project sites to make use of existing and proposed public
facilities and services identified in State, local and
regional plans.
a. Generally, the locations identified in HAPs should have
adequate public facilities and services available or
planned for immediate future. Access and Utilities. Sites
must be adequate in size. exposure, and contour to
accommodate the number of units proposed. Adequate
utilities (e.g., water, sewer, gas, and electricity) and
street shall be available to service the sight.
b. Transportation. The site shall be accessible to a range
of jobs for ow-income workers and for other needs. The
availability of public transportation must be considered,
and travel time and cost via public transportation and

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private automobile must not be excessive. This
requirement may be given less consideration for elderly
housing.
c. Other. Sites must be accessible to social, recreational,
educational, commercial, and health facilities; health
services; and Other municipal facilities and services that
are at least equivalent to those typically found in
neighborhoods consisting largely of similar unassisted
standard housing. The project may not be built on a site
that h.as occupants unless the relocation requirements
at 24 CFR 905.308(b)(9) are met.
3. Density. There is no rigid standard to determine an
acceptable level of density. The determination of an
acceptable density level varies with each community and
with each site and consideration should be given to such
factors as land costs, topography, planned site use, the
number and types of buildings, the anticipated age and
number of residents based on the number of bedrooms,
local building requirements, and the density prevailing in
the neighborhood.
4. Physical Characteristics. Each site shall be adequate in
size, exposure, and contour to accommodate the
number and type of units proposed. The topography and
subsurface conditions shall promote economical and
efficient development and operation of the project.
a. Grades. with grades exceeding ten (10) percent will
significantly increase development and management
costs and should be avoided. Sites with grades exceeding
five (5) percent should be avoided unless site
development (e.g., sidewalks) will provide for not more
than a five (5) percent grade without undue
development costs.
b. Bearing Qualities. Sites with unsuitable soil bearing
qualities for foundations and underground utilities or
with excessive rock or shale will increase site
improvement costs and should be avoided.
c. Earth Slides. Sites that are exposed to the potential
hazard of earth slides should not be selected.

5. Housing Opportunities. Sites for public housing
projects must comply with the following requirements:
a. General. The site and neighborhood shall be suitable
to facilitating and furthering compliance with the
applicable provisions of title VI of the Civil Rights Act of
1964, title VIII of the of the Civil Rights Act of 1968 (the
Fair Housing Act), Executive Order 11063, and HUD
regulations, issued under these statutes.
b. New Construction. The site for new construction
projects shall:
(1) not be located in an area of minority concentration
unless,
(a) There are existing sufficient, comparable
opportunities outside areas of minority concentration for
housing minority families in the income range to be
served by the proposed
project; or
(b) the project is necessary to meet overriding
housing needs that cannot feasibly be met otherwise in
that housing market area. "Overriding housing needs"
shall not serve as the basis for determining that a site is
acceptable if the only reason these needs cannot
otherwise feasibly be met is that, due to discrimination
because of race, color, religion, creed, sex, disability,
familial status, or national origin, sites outside areas of
minority concentrations are unavailable
(2) not be located in a racially mixed area, if the project
will cause a significant increase in the proportion of
minority to non-minority residents in the area; and

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(3) promote greater choice of housing opportunities and
avoid undue concentrations of assisted persons in areas
containing a high proportion of low-income persons.
c. Rehabilitation. Sites for rehabilitation projects shall
promote greater choice of housing opportunities and
avoid undue concentrations of assisted persons in areas
containing a high proportion of low-income persons.
d. Environment.
(1) The site shall be free from adverse environmental
conditions, natural or manmade, or such as Toxic or
contaminated soils and substances, mudslide or other
unstable soil conditions, flooding; septic tank backups or
other sewage hazards; harmful air pollution or excessive
smoke or dust; excessive noise or vibrations from
vehicular traffic; insect, rodent or vermin infestation; or
fire hazards. The neighborhood shall not be seriously
detrimental to family life. It shall not be filled with
substandard dwellings nor shall other undesirable
elements predominate, unless there is a concerted
program in progress to remedy the undesirable
conditions.
(2) The site shall not be in an area that HUD has
identified as having special flood hazards and in which
the sale of flood insurance has been made available
under the National Flood Insurance Act of 1968, unless
the development is covered by flood insurance required
by the Flood Disaster Act of 1973 an meets all applicable
HUD standards and local requirements.

Section 4. Environmental Requirements

Introduction. This section identifies the laws, Executive
Orders and regulations relating to environmental
protection. The development of public housing projects
must comply with these requirements except when
excluded.
1. NEPA. The National Environmental Policy Act of 1969
(42 U.S.C. 4321) establishes the national policy, goals and
procedures for protecting and enhancing environmental
quality. The HUD implementing regulation at 24 CFR 50
establishes the policies and procedures for HUD
environmental clearances (including procedures for
automatic requirements for a Special Clearance or
Environmental Impact Statement and criteria for
determining when several projects built near each other
may be considered as a single action) and establishes
categorical exclusions that are not subject to an
environmental assessment under NEPA. This does not
exempt them from the other requirements identified in
this section.
2. Historic Properties. The National Historic Preservation
Act of 1966 (P.L. 89-665), the Archeological and Historic
Preservation Act of 1974 (P.L. 93-291), Executive Order
11593, Protection and Enhancement of the Cultural
Environment, and the Procedures for Protection of
Historic and Cultural Properties, Advisory Council on
Historic Preservation (36 CFR 800). Establish national
policy and procedures for protecting properties, sites
and artifacts of historic, architectural, or archeological
significance listed (or eligible to be listed) in the national
Register of Historic Places. These laws and procedures
require that proposed projects be reviewed to determine
whether they would affect any district, site, building or
other structure listed (or eligible to be listed) in the
National Register of Historic Places. These procedures
require consultation with the State Historic Preservation
Officer and may require a determination of eligibility of
the Department of Interior and a determination of effect
by the Advisory Council on Historic Preservation.

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3. Noise Abatement. The Environmental Criteria and
Standards (24 CFR 51, Subpart B) establish minimum
HUD standards to protect citizens against excessive noise
in their community and place of residence. This
regulation also establishes criteria for determining
acceptable notice levels and special requirements and
mitigation measures to be followed in normally
unacceptable and unacceptable noise zones.
4. Explosive or Flammable Fuels or Chemicals. The
Environmental Criteria and Standards (24 CFR 51,
Subpart C) establish standards indicating how close a
project can be located to hazardous operations handling
conventional fuels or chemicals of an explosive or
flammable nature.
5. Floodplains and Wetlands. The flood Disaster
Protection Act of 1973 (P.L. 93-234) and implementing
regulation at 24 CFR 55, the National Flood Insurance Act
of 1968 (42 U.S.C 4001), Executive Order 11988,
Floodplain Management, and project is to be located in
such an area, that specific review and notification
procedures be followed and that appropriate measures
be taken to protect the property, to protect the life and
safety pf the occupants, and to minimize any harm to the
floodplain or wetland. The site shall not be in area that
has identified as having special flood hazards and in
which the sale of flood insurance has been made
available under the National Flood Insurance Act of
1968, unless the development is covered by flood
insurance by the Flood Disaster Act of 1973 and meets all
applicable HUD standards and local requirements.
6. Coastal Zones. The Coastal Zone Management Act of
1972 (16 U.S.C. 1451) and the implementing regulation
at 44 CFR 123 require that projects to be located in the
coastal zone (which includes the Great Lakes) be
consistent with the State Coastal Zone Management
Program.
7. Air Quality. The Clean Air Act (P.L. 90-148), the Clean
Air Acts Amendments of 1970 (P.L. 91-604), the Clean Air
Act Amendments of 1977 (P.L. 95-95), and the
implementing regulations of the Environmental

Protection Agency (40CFR 50, 51 and 52) establish
national ambient air quality standards.
8. Water Quality. The Federal Water Pollution Control
Act of1973 (P.L. 92-500), the Safe Drinking Water Act of
1974 (P.L. 93-523) and the implementing regulations of
the Environmental Protection Agency (40 CFR 120)
establish measures to protect the quality of water if a
project is to be located in the recharge area of a
community's sole water supply.
9. Fish and Wildlife. The Fish and Wildlife Coordination
Act(P.L. 85-624) requires that HUD consult with the Fish
and Wildlife Service (Department of Interior) and the
appropriate State agency if the project will affect control
or require modifications to any stream or other body of
water.
10. Endangered Species. The Endangered Species Act of
1973(P.L. 93-205), the Endangered Species Act
Amendments of 1978 (P.L. 95-632) and 43 CFR 870,
require that HUD consult with the Department of Interior
and the Department of Commerce if the project may
affect any species (including its habitat) identified by the
Department of Interior as an endangered species.
11. Toxic Chemicals and Radioactive Material. HUD
Notice 79-33 identifies the contact person for guidance
on protection of persons and property from man-made
environmental hazards such as toxic chemicals and
radioactive materials.

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Section 5. Uniform Act and Relocation Requirements

The Relocation Assistance and Real Property Acquisition
Policies Act of 1970 (Uniform Act) is not applicable to
public housing projects developed under the turnkey
method. However, in line with its policy regarding other
HUD-assisted activities not covered by the uniform Act,
HUD administratively requires that relocation assistance,
including advisory services and reasonable moving and
related expenses, be provided for eligible residential
tenant-occupants (not owner-occupants) who are
displaced as a result of turnkey development.

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When required, relocation assistance and related
payments are provided and financed by the PHA.
However, the developer maybe required to reimburse
the PHA for all or part of the costs for such assistance if
the developer fails to provide the PHA with specific
information regarding the occupants of a proposed site
or property, or to furnish notifications to such occupants
in accordance with the PHA's instructions, or to meet any
other applicable relocation requirements. If there are
any tenant occupants of the site(s) or property(ies)
identified in the turnkey proposal, prior to its
preparation and submission, the developer should ask
the PHA to provide detailed information regarding the
relocation notification requirements.

Section 6. Facilities and Services
Introduction. The developer shall make every effort to
select sites that are accessible to existing or proposed
public facilities and services. This may not be possible
because sites may not be available near required
facilities or the facilities may not have the capacity to
serve the proposed project. In such instances, necessary
facilities and services may be provided to the extent
authorized in this section.

1. Project Non-Dwelling Facilities. Necessary nondwelling space and equipment may be provided for
management, maintenance and community activities
and may be included in the development cost of a public
housing project provided that the amount of space does
not exceed the limitations identified below. These
facilities may be provided on a project-by-project basis
or as central space for several closely situated public
housing projects operated by the PHA. Developers
should review Part I of this packet for the specific

PHA requirements for this project.
a. Management Facilities. General purpose office space and equipment may be required by the PHA to perform
administrative functions. Space for necessary facilities may be provided not to exceed the following limitations:
Number of Public Housing Units Served
0-15
16-50
51-100
101-150
151-200
201-300
301-400
401-500

Maximum Management Space Allowed (sq. ft.)
150
325
500
600
775
1000
1200
1400

b. Maintenance Facilities. Space and equipment may be required to perform operation and maintenance activities.
Included are facilities for a central repair shop and storage of tools, parts and outdoor equipment (e.g., lawnmowers, snow
blowers, and maintenance vehicles). Space for necessary maintenance facilities may be provided not to exceed the
following limitations:
Number of Public Housing Units Served
0-15
16-50
51-100
101-150
151-200
201-300
301-400
401-500

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Maximum Maintenance Space Allowed (sq. ft.)
125
400
800
1100
1400
1900
2300
2700

c. Community Facilities. Community space and related equipment may be required to provide social and recreational
opportunities for project occupants. Included are such facilities as game rooms, meeting rooms or craft rooms. In
determining the amount of community space to be provided, consideration shall be given to whether space will be
provided for a child care facility and whether such space could be used for both purposes. Space for necessary community
facilities may be provided not to exceed the following limitations:
(1) Elderly, Disabled, or Both Elderly and Disabled Projects
Number of Public Housing Units Served
Under 51
51-100
101 or more

Maximum Community Space Allowed
25 sq. ft. per unit
1,250 sq. ft. for the first 50 units, plus 20 sq. ft.
for each additional unit
2,250 sq. ft. for the first 100 units, plus 15 sq.
ft. for each additional unit

(2) Projects for Family Occupancy:
Number of Public Housing Units Served
Under 101
101 or more

Maximum Community Space Allowed
8 sq. ft. per bedroom
800 sq. ft. for the first 100 bedrooms, plus 4 sq.
ft. for each additional bedroom

(3) Projects for Elderly and Family Occupancy. The
maximum amount of community space for a project
to be occupied both by elderly and family households is
the sum of the amounts determined in accordance with
(1) and (2) above.
2. Child Care Facilities. Space may be provided for a child
care center for the project occupants if such a facility is
not otherwise available, or existing facilities are
inadequate, to serve the proposed project. Such space
may be provided in addition to the amount allowed for
community facilities. Refer to Part I of this Packet for
specific requirements.
3. Health Care Facilities. In projects for elderly
occupancy, space may be provided, if required, for
preventive health programs for the project occupants.
This may include space for such facilities as examination
rooms and health clinics only if they are not accessible in
the neighborhood but shall
not include general medical care or hospital care
facilities such as laboratories and treatment rooms. If
health care facilities are necessary, a maximum of five
square feet for each unit may be provided. Such space

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may be provided in addition to the other amounts
allowed. Refer to Part I of this Packet for any specific
requirements.
4. Off-Site Facilities. Off-site improvements and facilities,
such as extensions of water and sewage systems and
access streets to the site boundary, may be required. The
cost for off-site facilities may be included in the
developer's price only if it is local practice that a
developer or builder normally pays
for such facilities when developing comparable privately
owned housing. The amount authorized for off-site
facilities shall be limited to the Area Office estimate of
either the cost of such facilities or the increase in the site
value that is attributable to such facilities, whichever is
lower. If the cost
exceeds the amount that may be approved by the Area
Office, the additional amount would have to be off-set
by a donation.
5. Congregate Facilities. As defined in the Act,
congregate housing provides a living environment in
which some or all of the dwelling units do not have
kitchen facilities. Such housing must have or be

connected with a central dining facility to provide
wholesome and economical meals for the occupants in a
generally self-supporting operation. The space required
for a central kitchen and dining facility is in addition to
the allowable non-dwelling facilities identified in this
section. The amount of space for the dining room shall
not exceed fifteen (15) square feet per finer,
accommodating one-half of the project occupants at one
sitting, and the kitchen shall be adequate to serve the
dining facility. The turnkey developer's price may only
include the cost of the following:

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a. space for the common kitchen and dining facility,
including food storage areas;
b. equipment for the central kitchen facility, including
cooking utensils, ranges, refrigerators, storage cabinets,
dishwashers, and waste disposal equipment, and;
c. furniture and equipment for the central dining facility,
including tables, chairs, linen, glassware and eating
utensils.

Section 7. Design and Construction Standards
Introduction. This section discusses the design and
construction standards applicable to all projects
developed for the public housing program. If the
standard is optional, Part I will indicate if it is required
for this specific project.
1. Basic Standards. Projects developed under the public
housing program must comply with:
a. either the HUD Minimum Property Standards (MPS)
for New Construction or the HUD Minimum Design
Standards for Rehabilitation of Residential Properties.
The MPS for multifamily Housing apply to walk-up and
elevator structures and sites and are contained in 2 CFR
200 Subpart S. The MPS which apply to detached, semidetached and row structures and sites are contained in 2
CFR 200 Subpart S. An up-to-date copy of the MPS is
available for examination in each HUD Regional, Area
and Service Office. Copies may be purchased from the
United States GPO, Washington, D.C. 20402. The MPS for
Rehabilitation of Residential Properties is 2 CFR 200
Subpart S which applies to all types of structures. It may
be obtained free of charge from any HUD Office.
b. HUD environmental requirements (24 CFR 40) and
requirements for accessibility and usability by persons
with disabilities: the Uniform Federal Accessibility
Standards (UFAS) and the 2010 ADA Standards, or the
Deeming Notice (79 Fed. Reg. 29,671(May 23, 2014));
and the Fair Housing Act (if applicable), see 24 C.F.R.
100.205; and
c. any applicable local requirements, such as State or
local building codes and ordinances.
2. Local MPS Variations. The Area Manager may approve
variations from the MPS to meet special local conditions
for a specific project. Variations may include
modifications to design and construction
standards, use of alternate building materials and
fixtures, and the use of innovative construction methods
and materials. In such cases, the Area Manager must
determine that the alternate standards or materials will
provide for a level of structural soundness, useful life,
and economy in maintenance or operation that is at least
equivalent to the MPS. Where a variation is expected to

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be used for future projects on a repetitive basis, the Area
Manager should recommend that an appropriate Local
Acceptable Standard be established. However, variations
from accessibility standards are not permissible.
3. Additional Program Standards. The basic standards
identified above provide minimum design and
construction requirements. The construction of public
housing projects may exceed the basic standards
provided that projects do not involve elaborate or
extravagant design or materials. For
example, increasing the MPS insulation or glazing
standard may be required to conserve energy and
provide for more economical operations over the
projected life of the housing.
a. Additional Quality Standards. The Area Manager is
required to develop specific additional quality standards
necessary to comply with the requirements of Section
6(b) of the Act. Specifically, the law requires that the
design and cost of a public housing project take into
account the extra durability required for safety and
security and economical maintenance of such housing;
the provision of amenities designed to guarantee a safe
and healthy family life and neighborhood environment;
the application of good design as an essential
component of such housing for safety and security as
well as other purposes; the maintenance of quality in
architecture to reflect the standards of the
neighborhood and community; the need for maximizing
the conservation of energy for heating, lighting, and
other purposes; the effectiveness of existing cost limits
in the area; and the advice and recommendation of local
housing producers. The additional quality standards for
this project may be found in Part IV of this Packet.
b. Density. The density requirements are stated in
Section 3 of this Part.
c. Non-Dwelling Facilities. The requirements and
limitations for required facilities and services are stated
in Section 6 of this Part.
4. Carpeting. Carpeting, instead of other types of
finished flooring, may be provided only in projects
proposed for occupancy by the elderly or persons with

disabilities. Carpeting may not be used in bathrooms or
kitchens.
5. Basements. Unfinished basements may only be
provided in public housing projects if the cost of
constructing basements was reflected in the published
prototype dwelling construction and equipment (DC&E)
costs for the area developed by the Area Office. In
establishing prototype costs, the Area Office may
consider the cost of constructing basements but only in
those areas where it is common local practice for
moderate income housing.
6. Parking Spaces. The number of parking spaces to be
pro-vided for a public housing project is generally
determined by local building codes and ordinances. In
the absence of local parking requirements , the Manual
of Acceptable Practices(HB 4930.1) should be used as a
guide for determining the number of parking spaces to
be provided. Parking spaces, generally, will be provided
in the form of parking pads for detached and semidetached structures, or a parking lot for other structure
types, and would be an allowable expense for site
improvements (Account 1480).
a. Highrise Elevator Structures. Parking spaces for the
occupants of high-rise elevator projects may be included
as an integral part of the structure. This may be
necessary to comply with local requirements or to
provide for economical construction of the proposed
project because of the limited availability or high cost of
acquiring adjacent land solely for a parking lot. In such
instances, parking spaces may be provided in a basement
or sub-basement garage and would be an allowable
expense for site improvements (Account 1480).
b. Detached and Semi-Detached Structures. Garages or
carports (as distinguished from parking pads) are
occupant storage spaces and must be included in
dwelling construction (Account 1490). One-car garages
or car- ports for a specific project being developed as
scattered site housing may be provided if this can be
accomplished within the prototype dwelling construction
and equipment cost limitation.
7. Air Conditioning. Air conditioning systems may be
provided in public housing projects. This may be

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necessary to provide flexibility in the design and layout
of the housing units, provide for a healthy living
environment, assure continued occupancy, and prevent
premature obsolescence. Al-though air conditioning may
be desirable, it is not required unless specified in Part I of
this Packet.
8. Utilities. It is important that the best types and utility
combinations be selected. If the best system is not
installed initially, the cost of converting to another
system at some later date is usually prohibitive. All
selected utilities must be available in time for project
construction or occupancy.
a. Utility Analysis. The PHA will provide a completed
Demonstration of Financial Feasibility (Form HUD-52485)
for the proposed project with this Packet.
b. Utility Selection. The utility combination identified by
the PHA shall be selected unless the developer can
demonstrate that a more efficient and economical
combination is available. If the developer wishes to
propose an alternative combination, the developer must
prepare and submit with its proposal a revised Form
HUD-52485.
c. Individual Non-Dwelling Meters. Utilities for nondwelling facilities (e.g., maintenance, management and
community space) shall have meters separate from
residential meters.
9. Solar Energy. The developer shall make use of solar
energy, if it is economical to do so. Solar energy systems
are required only if stated in Part I of this Packet. Any
addition, alteration, or improvement to an existing or
new structure designed to use solar energy to reduce the
demand for other energy sources may be considered.
a. HUD Standards. The Intermediate Minimum Property
Standards for Solar Heating and Domestic Hot Water
Systems (2 CFR 200 Subpart S) identifies various types of
active and passive systems that may be considered. A
solar heating or domestic hot water system may be
approved only if an operational conventional system will
be provided as a “back-up”.
b. Allowable Project Costs. The cost of solar energy
equip-ment is an allowable expense for project
development.

(1) Site Improvements (Account 1480). The
purchase and installation cost of energy generating or
collecting equipment shall be included in Account 1480.
Included are the costs of related structure alterations;
distribution systems (e.g., wiring, ducts, piping, pumps,
insulation and heat exchangers); storage tanks, rock bin
or heat sink elements; and control systems, sensors and
logic devices.
(2) Dwelling Construction (Account 1480). The
cost of all energy distribution systems within the
dwelling unit shall be included in Account 1480. Included
are all costs for the conventional “back-up” system, as
well as the related dwelling unit costs for the solar
heating or domestic hot water system such as wiring,
ducts, piping, radiators, grills, dampers and thermo- stat.
In addition, the cost of building construction common to
both the solar system and the housing (e.g., sturdier roof
framing to support solar collecting equipment) shall be
included in Account 1480.
10. Works of Art. Works of art, such as sculptures,
mosaics or murals, may be incorporated in a public
housing project. Selection of the artist is the
responsibility of the architect or developer with the
approval of the PHA. Works of art may be provided only
in common buildings areas or grounds of the proposed
project. In selecting art objects, consideration must be
given to their appeal and acceptance by project and
neighborhood residents. The materials selected should
be permanent and capable of withstanding exposure to
the elements and preclude the possibility of theft. The
cost of all works of art for a specific project shall not
exceed one percent of the amount budgeted for dwelling
construction and equipment. The cost of art objects that
are part of the structure is an allowable expense for nondwelling construction (Account 1480), otherwise, the
cost shall be included in site improvements (Account
1480).
Section 8. Prototype Costs
Introduction. Section 6(b) of the Act requires that HUD
establish prototype costs at least annually for various
structure types and unit sizes in different areas of the
country. The prototype costs established by HUD
represent the ceiling amounts that may be approved for

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construction and equipment in the project development
budget and construction contract. The Act also provides
that the prototype costs established by HUD for any area
may be exceeded by up to ten (10) percent if necessary
for individual projects.
1. Federal Register Publication. The unit prototype cost
schedule is published at least annually as a Notice in the
Federal Register and is effective upon publication. The
published prototype cost schedule identifies the current
per unit dwelling construction and equipment cost based
on the number of bedrooms and structure types for
various geographic areas. The unit prototype cost
schedule for a specific geographic area may be revised
based on public comments or other evidence that
construction costs exceed the limits determined by HUD.
Any revisions approved by HUD also will be published as
a Notice in the Federal Register.
2. Prototype Cost Area. A “prototype cost area” is a geographic area, established by the Area Office, within
which there is no appreciable difference in the cost of
material labor, and equipment for the housing
construction industry. A separate prototype cost area
may be established if construction costs in a community
consistently differ from other communities within the
same prototype cost area. Prototype cost areas are
identified by county, city, or other political boundaries. A
map, identifying the current prototype cost are, is
maintained in the Area Office and is available for public
inspection.
3. Structure Types. The unit prototype cost schedule is
established on the basis of the number of bedrooms per
unit for the following structure types:
a. Detached (D). A structure which consists of a single
living unit and is surrounded by permanent open spaces.
b. Semi-Detached (SD). A structure containing two living
units separated by a common vertical wall.
c. Row Dwelling (R). A structure containing three or
more living units, each separated by vertical walls, and
generally having individual entrances and interior stairs.
d. Walk-Up Apartments (AW). A multi-level low-rise
structure containing two or more living units, each

separate e. Elevator Structure (AE). Any high-rise
structure for which an elevator is required under the
Minimum Property Standards or local building codes.
4. Dwelling Construction and Equipment Costs. The
construction cost of new housing, for the purposes of
establishing prototype costs, includes the cost allowed
for dwelling structures (Account 1460) and dwelling
equipment (Account 1465). The following is a description
of the construction items included in prototype costs:
a. General Construction. This includes the costs for (1)
normal excavation and backfill for dwelling structures,
but not the cost for excessive excavation and backfill or
site improvements such as grading, installation of utility
service, streets, walks and landscaping (2) normal
foundations but, not the cost of special improvements
such as pilings, caissons, or underpinnings required for
unusual site topography or sub-soil conditions; (3)
structural framing and interior and exterior finish;(4)
dwelling structures, including closets and other occupant
storage spaces, and common spaces such as entrances,
corridors and lobbies, janitorial closets, and laundry,
heating and equipment spaces; and (5) fixed equipment
such as cabinets, cupboards and shelving, including
installation.
b. Plumbing. This includes all costs relating to domestic
gas, water and sewage distribution systems within
dwelling structure walls, such as piping, kitchen and
bathroom fixtures and accessories, domestic hot-water
heaters, circulating pumps, and utility meters or check
meters.
c. Heating and Air Conditioning. This includes all costs
relating to air handling and distribution systems, such as
furnaces, piping, ducts, radiators, filters, vents, and fans.
This applies to costs related to dwelling structures
whether such items are within the dwelling structure
walls or part of a central heating plant or system. If a
central plant will serve both dwelling and non-dwelling
areas, a proportionate cost of the structure, equipment,
heating mains, and pipe tunnels is also included. The cost
of air conditioning systems and equipment is also
included where it has been justified.

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d. Electrical. This includes all costs relating to interior
electrical systems from the service drops, such as wiring,
receptacles, switches, fixtures and electric meters or
check meters.
e. Elevators. This includes the cost of elevators and
related equipment for high-rise structures.
f. Other. This includes a proportionate share of the
builder's cost of labor, insurance, Social Security and
sales taxes, and the builder's general overhead, profit,
and bond premiums. Not included are a turnkey
developer's fee, overhead, or interest on construction
financing.
g. Dwelling Equipment. This includes the cost of ranges,
refrigerators, shades, screens, and similar equipment
provided in dwelling structures and the installation cost.
5. Unit Prototype Cost. The published unit prototype
cost represents the current dwelling construction and
equipment costs for modest housing that is built in
compliance with the MPS and local building codes and
requirements and the additional public housing program
standards.
6. Base Project Prototype Cost. The base project
prototype cost is computed by multiplying the then
current applicable unit prototype cost by the number of
units for that unit size and structure type and then
adding the amount for all units in the proposed project.
7. Prototype Cost Adjustment Factor. A cost adjustment
factor is developed to recognize actual changes
(increases or decreases) in construction costs from the
effective date of the unit prototype cost (used to
determine the base project prototype cost) to the
execution date of the contract of sale (turnkey). The cost
adjustment factor is based on actual changes in
construction cost using the Boeckh's Index. However, if
another commercial index (e.g., Marshall Swift's) is
customarily used by the Area Office for routine
processing, it may be used instead of the Boeckh’s Index.
8. Project Prototype Cost Limit. The project prototype
cost limit is the ceiling amount that may be approved for
dwelling construction and equipment (Account 1460 and
Account 1465) in the contract of sale. The project

prototype cost limit is deter-mined at the time that the
contract of sale is to be executed. This is determined by
multiplying the base project prototype cost by the
prototype cost adjustment factor. In limited
circumstances, it may be necessary to exceed the project
prototype cost limit to carry out the objectives of the
Act. Section 6(b) of the Act provides that the prototype
cost may be exceeded by up to ten (10) percent. If the
additional cost does not exceed ten (10) percent, the
Area Manager may approve a higher project prototype
cost for the following reasons:

2. Developer's Experience. The developer and the
developer's contractor shall provide the following
information relating to their housing construction and
development experience in connection with:
a. HUD projects: a Previous Participation Certificate
(Form HUD-2530), which identifies the project number,
location, units, and current development status for all
HUD assisted housing projects (e.g., Public Housing,
Section 8, Section 202) and HUD insured projects (e.g.,
Section 221(d) (4), Section 236, Section 207);

a. Local Building Requirements. Increases attributable to
changes in local building requirements (e.g., codes,
ordinances) which were imposed after the unit
prototype cost schedule was published.

b . Other projects: a list of other projects (excluding HUD
assisted and HUD insured projects) developed,
identifying the number of units, structure type,
community, total project cost and current development
status; and

b. Minimum Property Standards. Increases attributable
to changes in the HUD Minimum Property Standards or
the additional public housing program standards which
were imposed after the unit prototype cost schedule was
published.

c. Financial statement: a Personal Financial and Credit
Statement (Form FHA 2417). The PHA will not be
authorized to release any financial information, except to
the Area Office, without the express written consent of
the developer or contractor.

c. Scattered Site Housing. Higher development costs are
anticipated because the project is being developed as
scattered site housing.

3. Developer's Certification. The developer shall submit
a written certification which indicates that:

d. Increases During Construction. Change orders, that
are beyond the scope of the construction contract or
contract of sale, which are required to provide a
necessity, appropriate betterment, or equivalent, for the
proposed project.
Part III. Contents of Turnkey Proposal
Turnkey proposals must comply with all requirements of
the Turnkey Developer's Packet to be considered by the
PHA. Each turnkey proposal shall include:
1. Form HUD-52651-A. The proposal shall contain an
original of the Site, Design and Cost Report (Form HUD52651-A) for each individual site (or a site comprising
several contiguous parcels having exhibits and
information applicable to all parcels). This form must be
completed with all attachments and all questions
answered. Where more than one site is proposed, a
separate Form HUD-52651-A shall be submitted as a
summary for the proposed project as a whole.

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a. the developer has read and understood the provisions
of the turnkey contract of sale; and
b. if the developer's turnkey proposal is selected, the
developer will comply and assure that any contractors or
subcontractors employed by the developer will comply
with the requirements of the contract of sale.
Section IV. Forms and Documents
The following forms and documents are provided with
this Packet.
1. PHA's Proposal Evaluation System
2. Prepared Form HUD-52485 (Demonstration of
Financial
Feasibility)
3. Blank Form HUD-52485
4. Form HUD-53015 (Format for Turnkey Contract of
Sale)
5. Form HUD-52651-A (Site, Design and Cost Report)
6. Form HUD-2530 (Previous Participation Certificate)

7. Form HUD-5087 (Outline Specification)
8. Program Regulation 24 CFR 905
9. A copy of the locally adopted HUD additional quality
standards
10. Capital Fund Guidebook
11. Form FHA-2417 (Personal Financial and Credit
Statement)
12. Form HUD-92800-3 (FHA Underwriting Report) - only
if the project involves single family (1-4 family) units

PHA's Proposal Evaluation System
Proposal Evaluation Criteria. The PHA will evaluate and
rate each turnkey proposal objectively on the basis of
the following criteria:
1. Developer's Price: the total developer's price as a
percent of the median developer's price for all
responsive turnkey proposals;
2. DC&E Cost: the developer's dwelling construction and
equipment cost as a percent of the base project
prototype cost;
3. Developer's Experience: the ability of the turnkey
developer and contractor, if applicable, to build a
housing project of the type and scale proposed, including
the number, complexity and location of construction
activities currently underway
4. Physical Site Characteristics: the suitability of the site
for housing use including accessibility of the site for
individuals with disabilities, and freedom from adverse
environmental conditions;
5. Site Plan: the extent that the site is appropriate for
the intended use (e.g., occupants, density) and the site
plan provides open spaces, outdoor recreation areas,
and promotes economical project construction and
maintenance, and minimizes displacement of site or
property occupants.
6. Site Location: the proximity and accessibility of the
site to transportation, employment, recreation and
similar facilities and the adequacy of such facilities, and
compliance with the site and neighborhood standards.
7. Housing and Employment Opportunities: the absence

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of low income or assisted housing concentrated in the
proposed neighborhood or area of the community and
extent that the developer proposes to employ minority
or women-owned businesses in project development
activities.
8. Architectural Treatment: the degree to which the
design, and placement of buildings is aesthetic and
complements adjacent development, and the building
and unit floor plans and layout provide functional
housing arrangements;
9. Special Design Features: the degree to which the
design incorporates features that provide for efficient
project operations, lower maintenance costs, and the
safety and security of the occupants;
10. Energy Savings: the extent that the design provides
for long-term energy savings by incorporating the use of
solar energy or other energy conservation features;
11. Materials and Equipment: the extent that durable,
low maintenance, construction material and equipment
will be used;
12. Overall Project Design: the extent that the proposed
housing, including non-dwelling facilities, meets the
design and functional objectives indicated in the Turnkey
Developer's Packet;
13. Other PHA Criteria: any other objective criteria
established by the PHA and identified in Part I of this
Turnkey Developer's Packet.
Proposal Rating and Selection. The PHA will rate each
responsive turnkey proposal on the basis of the criteria
above. If the highest rated turnkey proposal was
assigned a zero by the PHA for any criterion, the PHA
may select the next highest rated turnkey proposal for
which no criterion was assigned a zero.
a. Standard Rating System. The standard rating system
shall be used if special PHA criteria were not established.
(See Part I, Proposal Evaluation Criteria.) The maximum
rating under the standard system is 84 points. However,
a turnkey proposal must receive a score of at least 50

points to be selected by the PHA based on the following
rating procedure:
(1) Developer's Price. A turnkey proposal will be
considered as average, if the developer's price is
between 90 percent and 100 percent of the median
developer's price for all responsive turnkey proposals;
poor, if the developer's price is more than 100 percent;
and superior, if the developer's price is less than 90
percent. Points for developer's price shall be assigned as
either superior (10 points), average (5 points), or poor
(zero points).
(2) DC&E Cost. A turnkey proposal will be considered as
average, if the Dwelling Construction and Equipment
(DC&E) portion of the developer's price Is between 90
percent and 100 percent of the base project prototype
cost, poor, if the DC&E cost is more than 100 percent;
and superior, if it is less than 90 percent. Points for DC&E
cost shall be assigned as either superior (10 points),
average (5 points), or poor (zero points).
(3) Developer's Experience. The PHA shall evaluate the
developer's and, if applicable, the contractor's previous
experience in housing construction. Points for developer
and contractor experience shall be assigned as either:
superior (10 points), average (5points), or poor (zero
points).
(4) Site and Design Criteria. The PHA shall evaluate the
turnkey proposals for each of the other nine
criteria and shall assign points as superior (6 points),
average (3 points), or poor (zero points).
b. Optional Rating System. The optional rating system
shall be used if special PHA criteria were established. The
maximum rating under the optional system is 100 points
which provide sixteen (16) discretionary points for use by
the PHA. Under this system, a turnkey proposal must
receive a score of at least 60 points to be selected by the
PHA. The sixteen (16) discretionary points shall be
distributed among the PHA established criteria and shall
be assigned as follows: superior (the number of points,
not exceeding 16, assigned to the criterion by the

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PHA),average (one-half of the maximum number of
points assigned to the criterion), or poor (zero points).