HUD 52482 Guide Form of Turnkey Developers 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. 11/30/2023)

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. Comments regarding the accuracy of this burden estimate and any suggestions for reducing this burden
can be sent to the Reports Management Officer, Office of Policy Development and Research, REE, Department of Housing and Urban
Development, 451 7th St SW, Room 4176, Washington, DC 20410-5000. When providing comments, please refer to OMB Approval No.
2577-0157. 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
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.
2.

3. Number: The PHA shall prepare sufficient developer's
packets to provide for distribution to all interested developers.

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.

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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form HUD-52482 (11/16)

Requests for Proposals

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

OMB Approval No. 2577-0157 (Exp. 11/30/2023)

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.
No. of Bedrooms

Maximum No. of Units
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.
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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form HUD-52482 (11/16)

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 low-income housing project
pursuant to Sections 4 and 5 of the United States Housing Act of
1937. 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 developm
ent 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 completed project will be owned and managed by this PHA
to provide rental housing for low-income households. The structures, housing units, and non-dwelling 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.

The developer is fully responsible for all development and constru
ction activities, such as purchasing sites or properties, completing
all site improvements and any accessibility remediation under Sect
ion 504, the ADA, and the Fair Housing Act, if applicable (includi
ng structures), obtaining utility hook-ups and local building
permits and approvals, and obtaining construction financing.

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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:
Number of Bedrooms
Elderly
0

1

Family
2

1

2

3

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

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.
B.
C.
D.
E.
F.
G.
H.
I.
J.

Security Systems (access, surveillance, standby power, etc.);
Central TV Antenna System;
Same key for both housing unit door and mail box;
Design requirements to complement neighborhood architecture and standards;
Energy Conservation Requirements;
Air Conditioning Systems;
Building Height Restrictions;
Number of buildings and distribution of unit sizes (number of bedrooms) among buildings; and
Space for child care which meets local standards and codes.
Rental Assistance Demonstration RCC special condition or meet the terms of a fair housing or civil rights settlement or remedial order.
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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).
Bedroom Size
0

1

3

2

4

5

6

Detached
$

$

$

$

$

$

$

Row

$

$

$

$

$

$

$

Walk-up

$

$

$

$

$

$

$

Elevator

$

$

$

XXX

XXX

XXX

XXX

10. Special Project Requirements and Instructions. This secInsert a statement that HUD will adjust the prototype cost
tion should include any other information, requirements or
base for the project (using a commercial cost index) to
instructions pertaining to this project. Examples of items are:
recognize actual changes (increases or decreases) in con1. Whether staged construction will be allowed.
struction costs from the effective date of the unit costs
published in the Federal Register. This is done for compari2. Any dwelling or non-dwelling installed equipment to be
son purposes only at early stages of processing. The
furnished by the PHA and its estimated cost.
developer's costs should always reflect current conditions.
11. Proposal Evaluation Criteria. The standard rating proce8. Utilities. State the utilities preferred for the project. Enclose
dure is described in Part IV. If the PHA desires to use
the HUD prepared form HUD-52485. Indicate that any other
The optional procedure, the additional criteria and the point
proposed utility combination and heating and cooling sysvalue to be assigned shall be described in this section.
tems must be demonstrated to be the most cost effective on
12. Proposal Instructions. Provide specific details for submitthe bland form HUD-52485.
ting proposals, such as:
9. Non-Dwelling Space. This section should be a detailed
A. The deadline time and date for submitting proposals.
statement of the requirements and limitations for non-dwelling
Proposals received after the deadline will not be considered.
space such as a community rooms*, maintenance and office
space and space for child care facilities, health care facilities, or
B. The official address for submitting proposals.
congregate dining facilities, if justified. If there is a requirement
C. Statement that proposals must be complete. The PHA
for several sites, the proration or consolidation requirements for
will determine if any omission makes the proposal “nonthe non-dwelling space must be clearly defined. The PHA may
responsive”. A proposal is considered to be “non-rerequire a separate proposal for part or all of this space especially
sponsive” if critical information is mission or the profor proposals for less than the total number of units requested.
posal represents a major deviation from this packet. In
such
cases the developer will be notified, the reason
*Includes recreation or hobby rooms, but not hallways, stairways, mail rooms,
boiler rooms, closets, lobby, or laundry.
stated, and the proposal will not be considered by the

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form HUD-52482 (11/16)

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 is
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.
___(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 concen
tration 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.

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.

Part II. General Program Requirements
Section 1. General

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
e. (2) the original proposal price as updated by HUD, or
(3) the project replacement cost identified by HUD.
The price to be stated in the Contract of Sale shall also be
f. adjusted to reflect the developer's actual interest cost for
construction financing.
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 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.

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 CFR
905 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. 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 the
proposed amount for the site and/or to the extent that the
proposal substantially exceeds the HUD estimated
replacement cost for the project.
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.
At each subsequent processing stage, HUD will adjust the
price to reflect changes (increases or decreases) in conc. struction 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.

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.
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 HUD-53015,
included in Part IV of this packet, will be executed by the
PHA and the selected developer. Both parties should carefully 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.

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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 ofthe 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 Rehab­
ilitation 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. §§ 12131­12134) 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 ares subject to
Executive Order 11246 (30 FR 12319) as amended by Executive Order 11
375 (32 FR 14303), and applicable implementing regulation (41 CFR 60­1.4),
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
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 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 CFR
905.602, 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.

action to ensure that employee or applicants for employment
are treated without regard to their race, color, religion, sex,
national origin, sexual orientation, or gender identity
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 ac
cordance with these Executive Orders, program participants
(e.g., PHAs, contractors, turnkey developers)shall take affirmative
action to encourage participation bybusinesses owned and
operated by minority groups andwomen. These affirmative
actions may include: conductingout-reach programs to expand
opportunities for participationby 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.
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
low-income workers and for other needs. The availability of public
transportation must be considered, and travel time and cost via public
transportation and 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
.

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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
(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 clear-ances
(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

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form HUD-52482 (11/16)

Department of Interior and a determination of effect by the
Advisory Council on Historic Preservation.
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 of 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 required 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 (40
CFR 50, 51 and 52) establish national ambient air quality
standards.
8. Water Quality. The Federal Water Pollution Control Act of
1973 (P.L. 92-500), the Safe Drinking Water Act of 1974
(P.L. 93-523) and the implementing regulations of the EnviSection 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 non-dwelling
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. DevelPrevious editions are obsolete.

ronmental 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.
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.
When required, relocation assistance and related payments are
provided and financed by the PHA. However, the developer may
be 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.
opers 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:

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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

form HUD-52482 (11/16)

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., lawn
mowers, snow blowers, and maintenance vehicles). Space
for necessary maintenance facilities may be provided not
to exceed the following limitations:
Number of Public
Maximum Maintenance
Housing Units Served
Space Allowed (sq. ft.)
0-15
125
16-50
400
51-100
800
101-150
1100
151-200
1400
201-300
1900
301-400
2300
401-500
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
Maximum Community
Housing Units Served
Space Allowed
Under 51
25 sq. ft. per unit.
51-100

1,250 sq. ft. for the first
50 units, plus 20 sq. ft.
for each additional
unit.

101 or more

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
Maximum Community
Housing Units Served
Space Allowed
Under 101
8 sq. ft. per bedroom.
101 or more

800 sq. ft. for the first
100 bedrooms, plus 4 sq.
ft. for each additional
bedroom.

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 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 offsite 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:
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.

(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.
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form HUD-52482 (11/16)

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:

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.

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.
5. Basements. Unfinished basements may only be provided in
b. HUD environmental requirements (24 CFR 40) and require
public housing projects if the cost of constructing basements
ments for accessibility and usability by persons with disabilities: the
was reflected in the published prototype dwelling construction and equipment (DC&E) costs for the area developed by
Uniform Federal Accessibility Standards (UFAS) and the 2010 ADA
the Area Office. In establishing prototype costs, the Area
Standards, or the Deeming Notice (79 Fed. Reg. 29,671(May 23, 2014));
Office may consider the cost of constructing basements but
and the Fair Housing Act (if applicable), see 24 C.F.R. 100.205; and
only in those areas where it is common local practice for
c. any applicable local requirements, such as State or local
moderate income housing.
building codes and ordinances.
6. Parking Spaces. The number of parking spaces to be pro2. Local MPS Variations. The Area Manager may approve variations
vided for a public housing project is generally determined by
from the MPS to meet special local conditions for a specific project.
local building codes and ordinances. In the absence of localpar
Variations may include modifications to design and construction
king requirements, the Manual of Acceptable Practices(HB 49
standards, use of alternate building materials and fixtures, and the use
30.1) should be used as a guide for determining thenumber of
of innovative construction methods and materials. In such cases, the
parking spaces to be provided. Parking spaces,generally, will b
Area Manager must determine that the alternate standards or materials
e provided in the form of parking pads fordetached and semi-d
will provide for a level of structural soundness, useful life, and
etached structures, or a parking lot forother structure types, an
economy in maintenance or operation that is at least equivalent to the
d would be an allowable expense forsite improvements
MPS. Where a variation is expected to be used for future projects on a
(Account 1480).
repetitive basis, the Area Manager should recommend that an
a. Highrise Elevator Structures. Parking spaces for the
appropriate Local Acceptable Standard be established. However,
occupants of highrise elevator projects may be included
variations from accessibility standards are not permissible.
3. Additional Program Standards. The basic standards idenas an integral part of the structure. This may be necessary
tified above provide minimum design and construction reto comply with local requirements or to provide for
quirements. The construction of public housing projects may
economical construction of the proposed project because
exceed the basic standards provided that projects do not
of the limited availability or high cost of acquiring adjainvolve elaborate or extravagant design or materials. For
cent land solely for a parking lot. In such instances,
example, increasing the MPS insulation or glazing standard
parking spaces may be provided in a basement or submay be required to conserve energy and provide for more
basement garage and would be an allowable expense for
economical operations over the projected life of the housing.
site improvements (Account 1480).
b. Detached and Semi-Detached Structures. Garages or
a. Additional Quality Standards. The Area Manager is
carports (as distinguished from parking pads) are occurequired to develop specific additional quality standards
pant storage spaces and must be included in dwelling
necessary to comply with the requirements of Section
6(b) of the Act. Specifically, the law requires that the
construction (Account 1490). One-car garages or cardesign and cost of a public housing project take into
ports for a specific project being developed as scattered
account the extra durability required for safety and secusite housing may be provided if this can be accomplished
rity and economical maintenance of such housing; the
within the prototype dwelling construction and equipment cost limitation.
provision of amenities designed to guarantee a safe and
healthy family life and neighborhood environment; the
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form HUD-52482 (11/16)

b. Allowable Project Costs. The cost of solar energy equip
7. Air Conditioning. Air conditioning systems may be provide
d in public housing projects. This may be necessary to provide
­ment is an allowable expense for project development.(1)
flexibility in the design and layout of the housing units, provide
Site Improvements (Account 1480). The purchase
for a healthy living environment, assure continued occupancy, a
and installation cost of energy generating or collectnd prevent premature obsolescence. Al-though air conditioning
ing equipment shall be included in Account 1480.
may be desirable, it is not required unless specified in Part I of
Included are the costs of related structure alterations;
this Packet.
distribution systems (e.g., wiring, ducts, piping,
8. Utilities. It is important that the best types and utility combipumps, insulation and heat exchangers); storage tanks,
nations be selected. If the best system is not installed initially,
rock bin or heat sink elements; and control systems,
the cost of converting to another system at some later date is
sensors and logic devices.
usually prohibitive. All selected utilities must be available in
(2) Dwelling Construction (Account 1480). The cost of
time for project construction or occupancy.
all energy distribution systems within the dwelling
unit shall be included in Account 1480. Included are
a. Utility Analysis. The PHA will provide a completed
Demonstration of Financial Feasibility (Form HUD-52485)
all costs for the conventional “back-up” system, as
for the proposed project with this Packet.
well as the related dwelling unit costs for the solar
heating or domestic hot water system such as wiring,
b. Utility Selection. The utility combination identified by
ducts, piping, radiators, grills, dampers and thermothe PHA shall be selected unless the developer can demstat. In addition, the cost of building construction
onstrate that a more efficient and economical combinacommon to both the solar system and the housing
tion is available. If the developer wishes to propose an
(e.g., sturdier roof framing to support solar collecting
alternative combination, the developer must prepare and
equipment)
shall be included in Account 1480.
submit with its proposal a revised Form HUD-52485.
10. Works of Art. Works of art, such as sculptures, mosaics or
c. Individual Non-Dwelling Meters. Utilities for non-dwellmurals, may be incorporated in a public housing project.
ing facilities (e.g., maintenance, management and comSelection of the artist is the responsibility of the architect or
munity space) shall have meters separate from residential
developer with the approval of the PHA. Works of art may be
meters.
provided only in common buildings areas or grounds of the
9. Solar Energy. The developer shall make use of solar energy,
proposed project. In selecting art objects, consideration must
if it is economical to do so. Solar energy systems are required
be given to their appeal and acceptance by project and
only if stated in Part I of this Packet. Any addition, alteration,
neighborhood residents. The materials selected should be
or improvement to an existing or new structure designed to
permanent and capable of withstanding exposure to the
use solar energy to reduce the demand for other energy
elements and preclude the possibility of theft. The cost of all
sources may be considered.
works of art for a specific project shall not exceed one percent
a. HUD Standards. The Intermediate Minimum Property
of the amount budgeted for dwelling construction and equipStandards for Solar Heating and Domestic Hot Water
ment. The cost of art objects that are part of the structure is
Systems (2 CFR 200 Subpart S) identifies various types of
an allowable expense for non-dwelling construction (Acactive and passive systems that may be considered. A
count 1480), otherwise, the cost shall be included in site
solar heating or domestic hot water system may be
improvements (Account 1480).
approved only if an operational conventional system will be
provided as a “back-up”.
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 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 base don 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
areas, 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:

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form HUD-52482 (11/16)

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
horizontally (ceiling/floor), and by vertical walls.
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 checkmeters.
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.
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.

5.

6.

7.

8.

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

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form HUD-52482 (11/16)

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 HUD-52651-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.
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);

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

7. Form HUD-5087 (Outline Specification)

1. PHA's Proposal Evaluation System

8. Program Regulation 24 CFR 905

2. Prepared Form HUD-52485 (Demonstration of Financial
Feasibility)

9. A copy of the locally adopted HUD additional quality standards
10. Capital Fund Guidebook

3. Blank Form HUD-52485
4. Form HUD-53015 (Format for Turnkey Contract of Sale)

11. Form FHA-2417 (Personal Financial and Credit Statement)

5. Form HUD-52651-A (Site, Design and Cost Report)

12. Form HUD-92800-3 (FHA Underwriting Report) - only if the
project involves single family (1-4 family) units

6. Form HUD-2530 (Previous Participation Certificate)
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 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.

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form HUD-52482 (11/16)

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 longterm energy savings by incorporating the use of solar energy
or other energy conservation features;

(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).

11. Materials and Equipment: the extent that durable, low
maintenance, construction material and equipment will be
used;

(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).

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;

(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).

13. Other PHA Criteria: any other objective criteria established by the PHA and identified in Part I of this Turnkey
Developer's Packet.

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

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).

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form HUD-52482 (11/16)