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California Department of Housing and Community DevelopmentChris Westlake – Deputy Director for Financial Assistance

Emergency Housing and Assistance Program

Capital Development (EHAPCD) NOFA & Application Workshop

2010-2011

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Welcome and Thank You for Attending!

Meet EHAPCD staffMeet EHAPCD staff House KeepingHouse Keeping

Restroom LocationsCell phone courtesy

Technical Assistance is Available

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EHAPCD Webpage

Webpage Enhancements in process; Webpage Enhancements in process; check often for updated materialcheck often for updated material

www.hcd.ca.gov/fa/ehap/ehap-capdev.html

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$40,000,000

Urban $32,000,000 (80%)Urban $32,000,000 (80%) Non Urban $8,000,000 (20%)Non Urban $8,000,000 (20%)

___________________________________ No EHAPCD funds if prior EHAPCD loan or

loan commitment for same activity and/or scope of work.

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EHAPCD HOT TOPICS

Identifying all Funding Sources Appraisal Requirements Timing of Activity vs. Reimbursement of

EHAPCD Funds Communication with EHAPCD staff Incomplete Applications are subject to

disqualification

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Applicant requests for EHAPCD funds must be deemed an

efficient and effective use for qualified activities

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Eligibility & Use of Funds

EHAPCD funds are forgivable, deferred EHAPCD funds are forgivable, deferred loans to eligible local government loans to eligible local government agencies or non profit corporations that agencies or non profit corporations that house homeless personshouse homeless persons

Multiple applications are allowed however Multiple applications are allowed however the total requested amount, per applicant, the total requested amount, per applicant, cannot exceed $1,000,000 per countycannot exceed $1,000,000 per county

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Eligibility & Use of Funds(cont.)

Acquisition – NO SUPPLANTINGAcquisition – NO SUPPLANTINGExisting structure Existing structure with rehabilitationModular structures/units

Site AcquisitionSite AcquisitionLand purchase with new construction of a

qualified homeless housing facility

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Eligibility & Use of Funds(cont.)

RehabilitationRehabilitation Preserve/create a qualified homeless housing facility;

costs related to demolition, lead-based paint & asbestos reports and remediation of hazards pursuant to the Health & Safety Code, Sections 17920 - 17928

ADA accessibility improvements may be eligibleADA accessibility improvements may be eligible

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Eligibility & Use of Funds(cont.)

New Construction (including)New Construction (including) Project related planning and engineering fees Environmental reports & remediation Application attachments #11 & #12 should match

Staff Administrative CostStaff Administrative Cost Not to exceed 5% of EHAPCD Loan Term of the Standard Agreement only

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Administrative Costs (cont.)

Applicant Employees & overhead cost associated with the project - ok

Back-up Documentation is required Staff Hours – (Independent Contractors are not considered

applicant employees/not administrative cost) Faxing Fed Ex, UPS, etc. Office costs Travel to Workshop – only after an EHAPCD

Standard Agreement has been executed

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Eligibility & Use of Funds(cont.)

Other eligible costs may includeOther eligible costs may include documented costs for fees of a project specific Development Consultant; but no prior reimbursement allowed

ALL COSTS FUNDED BY EHAPCD MUST ALL COSTS FUNDED BY EHAPCD MUST OCCUR OCCUR ON OR AFTERON OR AFTER THE EXECUTION THE EXECUTION DATE OF THE STANDARD AGREEMENT!DATE OF THE STANDARD AGREEMENT!

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Ineligible Use of Funds Equipment not under permit or not built inEquipment not under permit or not built in

Personal vs. real property; beds, household refrigerators, stoves

Other ineligible costs include:Other ineligible costs include: Recreational equipment Landscaping Walls and Fences Parking lots Off-Site improvements

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Site Control a Mustwith Application submission

or Application considered Ineligible

Fee TitleFee Title Legally enforceable Purchase AgreementLegally enforceable Purchase Agreement Lease Option to PurchaseLease Option to Purchase Legally enforceable Lease or Option to LeaseLegally enforceable Lease or Option to Lease Sub-leasehold interest in property is Sub-leasehold interest in property is notnot

acceptableacceptable

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Local Zoning Approval

Evidence of Permissive Zoning from Local Evidence of Permissive Zoning from Local Planning Department;Planning Department;

Conditional Use Permit (CUP); and/orConditional Use Permit (CUP); and/or Current Zoning request status from Local Current Zoning request status from Local

Planning DepartmentPlanning Department

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Loan Terms & Conditions

Acquisition OnlyAcquisition Only…………………………………………10 years from date Regulatory Agreement is recorded

FOR ALL THE FOLLOWING ACTIVITIES:*Loan term starts the date that either the

Certificate of Occupancy is issued or the date the Notice of Completion is recorded.

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Loan Terms & Conditions(cont.)

*New Construction or Acquisition*New Construction or Acquisition with Rehabilitationwith Rehabilitation………………………………………………10 years10 years

*Substantial Rehabilitation*Substantial Rehabilitation (Loans $25,000 or more)(Loans $25,000 or more)…………………….......…………………….......7 years7 years

*Minor Rehabilitation*Minor Rehabilitation (less than $25,000)(less than $25,000)…………5 years5 years

**NEW - Proposed Regulation Change****NEW - Proposed Regulation Change** Commencement & Completion termCommencement & Completion term

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Rent Requirements

Two options for maximum rents to be charged – may not exceed the highest of the two:

30% adjusted family income, as defined in the HUD guidelines

10% of the family’s monthly gross income

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Relocation Requirements(CANNOT BE PAID WITH EHAPCD FUNDS)

Uniform Relocation Act (URA) of 1970Uniform Relocation Act (URA) of 1970

www.HUD.gov/offices/cpd/affordable housing/training/web/relocation/overview.cfm

(Handbook 1378)(Handbook 1378) Initiations Of Negotiations (ION) = TriggerInitiations Of Negotiations (ION) = Trigger General Information Notice (GIN)General Information Notice (GIN) ““Eligibility” for relocation benefits are triggered by the Eligibility” for relocation benefits are triggered by the

ION and are paid when a tenant must permanently ION and are paid when a tenant must permanently vacate their unit, or when the rent is increased above vacate their unit, or when the rent is increased above 30% of their gross monthly income30% of their gross monthly income

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Relocation Requirements (cont.)

PLAN + BUDGET = SAVE $ Plan, research comparables, moving expenses

& budget the costs on the Sources & Uses form (Attachment #12)

42 months of Relocation assistance is required (calculation is based on current rent and projected rent

from comparable units that have been located and presented to tenant)

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Relocation COMPARABLE UNITS

Decent, Safe and Sanitary Units must be currently available –

for each tenant Same square footage or more Within approximate same distance from

schools, work, etc. Must be “comparable”

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Break

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WHAT YOU CAN DO

Prepare all required notices on time GIN, Notice of Eligibility, 90 & 30 day, & Move In notices

Communicate with tenants & landlords Keep accurate records of all tenant

communications, signed notices, work numbers & emergency numbers

Call EHAPCD representative or a relocation specialist when needed

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Use EHAPCD funds for Americans with Disabilities

Acceptable evidence of ADA compliance is Acceptable evidence of ADA compliance is required – required – check with local Planning Departmentcheck with local Planning Department

If remedial work is needed – include the cost on If remedial work is needed – include the cost on Attachment #12 of the EHAPCD ApplicationAttachment #12 of the EHAPCD Application

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Property Inspection RequirementsProperty Inspection Requirements

Purchasing and/or Rehabilitating an existing structure

Report performed by a qualified licensed professional

Report shall include current condition of the improvements and a detailed summary of the repairs needed to establish and/or maintain satisfactory condition

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Appraisal Requirements Report MUST be dated within 12 months prior to Report MUST be dated within 12 months prior to

close of the EHAPCD loanclose of the EHAPCD loan Unrestricted, Market ValueUnrestricted, Market Value Unrestricted “As-Is” & “As-Completed” Market Unrestricted “As-Is” & “As-Completed” Market

ValueValue ““As-Is” & “As-Completed” Broker’s Price Opinion As-Is” & “As-Completed” Broker’s Price Opinion

(with 3 comparables)(with 3 comparables) 3 Comparables for Leasehold Title3 Comparables for Leasehold Title Market Value = highest & best use + any senior Market Value = highest & best use + any senior

debtdebt

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The Department of Housing and Community Development

expects to be in 1st lien position

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Funding Commitments

Must have firm commitments (No proof - No loan doc’s)

Must have copy of other Lender's loan terms (i.e. Promissory Note(s), Deed(s)

of Trust, Regulatory Agreement(s)) Funding Position of all Lenders

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Environmental Requirements

CEQA CEQA (California Environmental Quality Act)(California Environmental Quality Act) Phase I Report – must be less than 5 years old Phase I Report – must be less than 5 years old

at EHAPCD Application submissionat EHAPCD Application submission Asbestos & Lead-Based Paint – required for Asbestos & Lead-Based Paint – required for

projects built prior to 1978projects built prior to 1978Licensed Professionals must be usedLicensed Professionals must be used

California Historic Building Code (CHBC)California Historic Building Code (CHBC)

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Preliminary Title Report

Must be current at EHAPCD Application submission

Additional reports as needed Address must match address on

ApplicationMake sure correct name(s) are listed as legal

ownersProperty profile is not permissible

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Insurance Requirements

HCD must be named as Loss Payee Include EHAPCD Loan number & project

address for all applicable policies Amount of coverage = replacement cost

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New Construction/Rehabilitation Requirements

Competitive Bidding ProcessCompetitive Bidding Process *NEW* *NEW* EHAPCD Bid Procedure GuidelinesEHAPCD Bid Procedure Guidelines

““RESPONSIBLE BIDDER”RESPONSIBLE BIDDER”State License & BondsState License & BondsAIA101 – 2007 & AddendumAIA101 – 2007 & AddendumState Prevailing Wage – Yes or No?State Prevailing Wage – Yes or No?

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Application Packaging & Submittal

1 Original & 1 Copy per project site1 Original & 1 Copy per project site Submit required documentation and Submit required documentation and

Attachments for eligibility and maximum pointsAttachments for eligibility and maximum points

THURSDAY, JULY 15, 2010THURSDAY, JULY 15, 2010 5:00 P.M. Pacific Daylight Savings Time

No faxed or emailed applications accepted! Receipt of applications is not based on postmark date.

Must be in HCD by due date 7/15/2010

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Rating & Ranking Criteriasee pages 16-18 in the NOFA

1,000 Points maximum1,000 Points maximumApplicant CapabilityApplicant Capability Impact & EffectivenessImpact & EffectivenessCost EfficiencyCost EfficiencyDLB or Statewide PriorityDLB or Statewide Priority

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Loan & Grant Committee

Recommended for approvalRecommended for approval Exempt ApplicationsExempt Applications

Criteria #1Criteria #1Criteria #2Criteria #2

““Tabled or Denied” ApplicationsTabled or Denied” Applications Director’s final approval = Award LetterDirector’s final approval = Award Letter

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Standard Agreement & Disbursement Procedures

Proposed changes to the project are Proposed changes to the project are subject to HCD review & approvalsubject to HCD review & approval

Print, Sign & return 5 copies (STD213)Print, Sign & return 5 copies (STD213) Loan Closing ChecklistLoan Closing Checklist Requests for FundsRequests for Funds 10% Retention & ALTA Rewrite Policy10% Retention & ALTA Rewrite Policy

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Loan Documents Loan DocumentsLoan Documents

Regulatory AgreementRegulatory AgreementDeed of TrustDeed of TrustPromissory NotePromissory NoteDevelopment AgreementDevelopment AgreementCorporate CertificateCorporate CertificateSubordination AgreementSubordination AgreementRequest for Notice of DefaultRequest for Notice of Default

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Semi Annual Report

Reporting begins 6 months after the Standard Agreement execution date

Required prior to funding, if applicable

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Close Out Reports

Submit with FINAL Funds Request

All 4 Semi – Annual Reports should have been

submitted by this time

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Annual Reports

Standard Agreement Expiration Standard Agreement Expiration Anniversary Anniversary

VS.

January - DecemberJanuary - December

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THANK YOU AGAIN FOR ATTENDING

ARE THERE ANY QUESTIONS?