multifamily housing program 2013 funding round 1c-7
DESCRIPTION
Multifamily Housing Program 2013 Funding Round 1C-7. California Department of Housing and Community Development. 1. Multifamily Housing Program (MHP) Proposition 1C Summary. $1.5 billion allocation for affordable housing approved in the 11/7/06 General Election - PowerPoint PPT PresentationTRANSCRIPT
11California Department of Housing and Community Development
Multifamily Housing Program2013 Funding Round 1C-7
22
Multifamily Housing Program (MHP)Proposition 1C Summary
$1.5 billion allocation for affordable housing approved in the 11/7/06 General Election
Bond funds included approximately: MHP General $345 million Supportive Housing $195 million Homeless Youth $50 million
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MHP NOFA – February 7, 2013
Funding Available $46 million
$7 million maximum loan amount per project Function of unit size, location and affordability level
44
MHP Program Changes Carried Over From 1C-6
AB 1460: Priority points for projects which utilize sustainable building methods (D7 in Scoring)
USDA RD loan commitment requirements (NOFA Section C)
Point scoring differences (NOFA Section V) Scrutiny of rehabilitation projects (NOFA Section C) Hard debt service on public agency financing (NOFA
Section Q) RDA commitments will be scrutinized (NOFA Section
C)
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MHP Program Changes for 1C-7
Based on AB 1951: Projects with at least 35% of the units serving
homeless veteran or developmentally disabled households will receive five bonus points (NOFA Sections C and V)
Projects with at least 75% of the units serving homeless veteran or developmentally disabled households can benefit from advantageous leverage scoring criteria (NOFA Sections C and V)
6
MHP Program Changes for 1C-7
Tiebreaker will be two-tiered:
Primarily based on whether the projects have set aside at least 75% of the total project units for homeless veteran or developmentally disabled households.
Secondarily based on the lowest weighted average affordability of restricted units per Section 7320.
(NOFA Section V)
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Timetable
NOFA issued February 7, 2013Application forms available February 7, 2013
Applications due April 11, 2013
Loan and Grant Committee Meeting
June 2013
Awards issued June 2013
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MHP Program Overview
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MHP Regulations
Governed by two sets of regulations: Multifamily Housing Program Specific
Regulations (MHP Regulations) Uniform Multifamily Regulations (UMR)
Available at: http://www.hcd.ca.gov/fa/mhp
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Geographic Distribution
Statute requires HCD to: “ensure a reasonable geographic distribution
of funds”
To prevent award imbalance, distribution target of no less than approximately: 45 percent Southern California 30 percent Northern California 10 percent Rural Area
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Eligible Sponsor Non-profit, for-profit and local public agencies
Demonstrate: Experience developing, constructing, owning
and operating affordable rental housing projects
The entity that submits information for the award of the experience points (D3) must be the named Sponsor on the Application
Must demonstrate site controlMHP Section 7303 and UMR Section 8303
1212
Eligible Project
Multifamily rental and transitional housing projects of five or more units New construction Acquisition and rehabilitation Rehabilitation Conversion of nonresidential structures Must not have started construction as of the
application due dateMHP Section 7302
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MHP Emphasis
Emphasis on units for: “Deeply” targeted incomes (MHP A, B or C) Large families (two or more bedrooms) Special Needs Populations
1414
Eligible Use of Funds
Costs attributable to Restricted units for: Construction/rehabilitation Off-site/on-site improvements Capitalized operating and replacement reserves
(replacement reserves can be funded from Operating Income)
Child care facility and social service facility integrally linked to Project
Developer feeMHP Section 7304
1515
Permanent Only Loans
Loan Terms 55 year term 3 percent simple interest (principal and interest
deferrable) First 30 years: mandatory debt service of .42 percent
of outstanding principal balance Next 25 years: adjusted to cover HCD’s monitoring
costs Unpaid interest and principal due at end of term
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Program Limitations
Payment of state prevailing wages to laborers working on MHP-financed projects is required
Sponsor distributions limited to 50 percent of cash flow (UMR Section 8314)
9 percent tax credit projects are not eligible to apply for MHP funds
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Developer Fee Limits Limit of $1.2 million from funding sources (C7)
New construction and substantial rehabilitation projects: first 30 units, $25,000 per unit. Each unit in excess of 30, $9,500 per unit
Acquisition and rehabilitation projects without substantial rehabilitation: first 30 units, $12,000 per unit. Each unit in excess of 30, $5,500 per unit
Land donations from local jurisdiction or master developer may not be counted as capital contribution
Cash contributions from master developer or other entities, which are contingent upon the development of the Project may not be counted as capital contribution
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Developer Fee Limits (continued)
Developer Fee Calculation Includes lease-up fees, incentive fees, or
other property management fees, in excess of those customarily charged by property management firms for lease up activities, which are paid to the Sponsor, Co-Sponsor or affiliate of the Sponsor or Co-Sponsor
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Application Overview
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Universal Application used by HCD, TCAC, CDLAC and CalHFA http://www.hcd.ca.gov/fa/UniversalApplication.xls
MHP Application Attachment http://www.hcd.ca.gov/fa/mhp/MHPApp1C_7Attachment.xls
Application
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General Instructions Submitting Application
Three-ring binder with sleeve on the side Large lettered tabs and divide the binder into seven
sections: Universal Application, Universal Application Attachments (1-11), MHP Attachments A, B, C, D, E
Set up dividers with numbered tabs to correspond to the Universal Application and MHP Program Specific Checklist (A1)
For items that are not applicable to your application, place a sheet stating the item is “Not Applicable” behind the tab
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General Instructions (continued) COMPLETE original and one duplicate of
application must be received by HCD no later than 5 p.m. on April 11, 2013. Postmarks are not accepted
No facsimiles, late, incomplete, or revised applications will be accepted
Applications must meet all eligibility requirements upon submission
Applications with internal inconsistencies will not be rated and ranked
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Submit your application binders in this order:
1. Universal Application2. Universal Application Attachments 1 - 113. MHP Attachments A, B, C, D, ERemember: Once your application is received, it must
stand on its own to represent your Project
Organizing the Application
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Disclosure
Disclosure of Application Information becomes PUBLIC RECORD
available for review by the public
Use Discretion Sponsor is waiving any claim of confidentiality
and consents to the disclosure of all submitted material upon request
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Project Evaluation
Eligibility
Feasibility
Scoring
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MHP Attachment
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A1 Universal Application and MHP Checklist
1. Proof of site control2. Current Preliminary Title Report3. Relocation Plan with estimated costs4. Utility Allowance Chart by unit size5. Org. charts for Borrower, Sponsor, Developer, Affiliates6. Legal Status Questionnaire7. Previous Participation Certifications8. Evidence of enforceable commitments - Construction9. Evidence of enforceable commitments - Permanent10. Market Study with Rent Comparability Matrix11. Current Appraisal
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A2 Eligibility Criteria
1. Other funding sources are insufficient to cover Project development cost
2. As of application due date, construction has not commenced (demolition is considered “construction” if cost of demolition is included in the development budget)
3. Application complete and on MHP approved forms
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A2 Eligibility Criteria (continued)
4. Project site must be free from environmental conditions which are infeasible to correct
5. Site is reasonably accessible to: Public transportation, shopping, medical services,
recreation, schools and employment
6. Must demonstrate Article XXXIV authority
7. New construction projects with demolition: Number of bedrooms in new Project must be at
least equal to the number of bedrooms demolished
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Relocation Eligibility Requirements Application must contain a preliminary
Relocation Plan
Developmental budget must contain funding for Relocation Expenses
Final Relocation Plan must be approved by the Department prior to funding
MHP Section 7315
A2 Eligibility Criteria (continued)
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Site Control Requirements Must be in the name of the Sponsor
Documents showing site control: Lease Contract of Sale Disposition and Development Agreement Preliminary Title Report Option to Purchase or Lease
Preliminary Title Report required in all cases Not older than six months
UMR Section 8303
A2 Eligibility Criteria (continued)
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A2 Eligibility Criteria (continued)
Proof of Site Control Can take any of the forms indicated, but must:
Be fully executed and unilateral Name seller and purchaser or lessee Include dollar amount and terms of agreement Be signed by all parties Not have expired
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A3 Recycling Program Narrative
In an effort to encourage all projects to implement as many environmentally friendly options as possible, the MHP application will require a narrative describing how the Project will implement and encourage residents to utilize project-based recycling programs
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MHP AttachmentSection B - Eligibility
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B1 Tenant Selection Criteria
Provide description of your tenant selection criteria and describe rationale
Senior Projects (B1a): Provide evidence of Fair Housing Compliance (legal opinion)
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B2 Organizational Documents
Sponsor and Ultimate Borrower (if formed) Articles of Incorporation By-laws Partnership Agreements If organized under laws of different state:
Submit Certificate of Good Standing for Foreign LP/Corp/LLC plus Certificate of Registration
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B3 Governing Board Resolution
Authorizes application submission Specifies authorized signatory Must reference the NOFA date and the amount
of loan request Must state that the entity is authorized to do
business in California Sample resolutions are available
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B4 Names of Officers and Board Members
Be certain not to disclose personal data (addresses, phone numbers, etc.) unless the board members have authorized the release of such information – keep in mind that the application is a public document
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B5 Environmental Reports
Phase I Environmental Site Assessment
Other Environmental Reports (i.e. Phase II, Asbestos, Lead-based paint)
Mitigation information (if applicable)
Do not attach database records search
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B6 Maps
Parcel map showing site location
Scaled Distance Map Two mile radius of site Indicate amenities
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B7 Article XXXIV of the California Constitution requires voter approval
authorizing development of low-income housing
Provide evidence that Article 34 authority exists for this Project; or
Provide a legal opinion letter explaining why this Project is exempt from Article 34 requirements
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MHP AttachmentSection C - Feasibility
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C1 Insert the Development Timetable
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Maximum Allowable Loan Amount
C2 Worksheet to Determine Maximum Allowable Loan Amount
C3 Loan Limit Worksheet C4 Shared Cost Calculation Worksheet C5 MHP Loan Calculation Worksheet
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Loan Limits
MHP: http://www.hcd.ca.gov/hpd/hrc/rep/state/incNote.html
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In the Supportive Housing Application, see Item C5b
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OR
H. Portion of TDC attributable to Restricted Units:
Calculate proportion of total development costs attributable to restricted units pursuant to Section 7304(c) of the MHP Regulations . Clearly show calculation and attach to this page.
$0
For those projects containing commercial space, we recommend the Sponsor contact an MHP Representative for assistance.
For Projects Containing Commercial Space
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C6
This item (evidence of commitment status for development funding) has been replaced by Universal Application Attachments 8 and 9
See MHP Application Attachment Instructions for what constitutes evidence of commitment
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C7 Developer Fee Calculation
Not a required application attachment
Tool to assist Sponsor in calculating allowable amount of developer fees
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Instructions: Just complete the yellow, shaded cells - choose only one in the 'A', 'B' or 'C' sections.
1 Number of units (include manager's unit) 362 First 30 units at: $25,000 each 750,000$ 3 Units in excess of 30 at: $9,500 each 57,000$ 4Total (A2 + A3) 807,000$
D Developer Fee that TCAC would allow to be included in eligible basis(ask sponsor for calculation) 807,000$
E Lesser of $1,200,000 or D 807,000$
F Sponsor capital contribution of funds or real property 50,000$
G Maximum allowable Developer Fee payable from development funding sourcesA4, B4 or C2, not to exceed E, plus F 857,000$
H Developer Fee budgeted for payment from Development Funding Sources(cannot exceed line G) 857,000$
I Maximum Deferred Fee payable from cash flow prior to Distributions and residual receipts loan payments (E+F-H) -$
J Deferred Developer Fee budgeted for payment from cash flow prior to Distributions and residual receipts loan payments (cannot exceed line I) -$
K Deferred Fee budgeted for payment from Distributions 5,000$
L Total developer fee, including Fee payable from Distributions (H+J+K) 862,000$
Item C7Developer Fee Worksheet for
Tax Credit Projects Subject to the Uniform Multifamily Regulations Revised 5/ 6/ 10
A New construction and substantial rehab projects
5454
C8 Unit Mix and Income Information Complete the Unit Mix and Income Information chart
For rental assistance, operating, project based and other subsidies attach evidence of commitment
1. If not available, attach other documentation such as Reservation or third-party letter stating the following: Annual subsidy amount Date or expected date of award Term Number of subsidized units
2. If not available, attach Voucher Payment Standard and Fair Market Rents from Housing Authority
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C9 Transition Reserves If Project depends on project-based rental subsidy,
attach calculation of Required Transition Reserve funding
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C10 Justification of Services Coordinator
Attach narrative description of tenant needs and the role of the resident Services Coordinator in linking tenants to services
5858
C11 Estimate of Construction Cost Based on Prevailing Wage
Complete C11 based on prevailing wages
5959
Insert the Following Documents
C12 Copies of Planning Approvals
C13 Copies of Resumes for Project Contractor and Architect
C14 Copies of Schematic Drawings
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Rehabilitation Projects
C15 Provide a narrative description of current condition of structures
C16 Provide a detailed narrative description of the intended scope of work
C17 Provide a copy of current rent roll including household composition and income
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C18 Letter to Local Government
Statutory requirement to notify local government jurisdiction that application is being submitted
Must be addressed to the City Council or County Board of Supervisors (whichever is applicable)
THIS IS AN ELIGIBILITY THRESHOLD REQUIREMENT
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C19 Operating Expense Comparables
Minimum three comparables
One market rate; one affordable housing
Same primary market area
Similar size, number of units and amenities
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MHP AttachmentSection D - Scoring
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D1 Extent Project Serves Households at the Lowest Income Levels - 35 points
Enter total number of Restricted Units
Enter number of units for MHP A, B, or C
Scoring sheet will auto calculate
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D2 Extent Project Addresses the Most Serious Identified Local Housing Needs -
15 points(A) 5 points for either: 1. Letter from City or County
Local need identified in local housing policy document
The local housing policy document in which the need is identified
A statement that the Project meets the need Must specifically name the Project
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Or:
2. If 70 percent of Project units are reserved for Special Needs Populations: Letter from local government department
stating that the Project will address a serious local housing need as it relates to Special Needs Populations
D2 Extent Project Addresses the Most Serious Housing Needs (continued)
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AND Choose option B, C or D - 5 or 10 points
(B) - 10 points1. At least 70 percent of units reserved for Special
Needs Populations or2. At least 70 percent of units have two or more
bedrooms and located in Alameda, Contra Costa, Los Angeles, Marin, Monterey, Napa, Orange, San Diego, San Francisco, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Solano, Sonoma, or Ventura counties
D2 Extent Project Addresses the Most Serious Housing Needs (continued)
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(C) - 5 or 10 pointsComparable Market Rental Data Forms At least the five nearest comparable projects Senior projects - limit comparables to this population One rental data form for each comparable If weighted vacancy rate is < 3 percent = 10 points If weighted vacancy rate is < 5 percent = 5 points
D2 Extent Project Addresses the Most Serious Housing Needs (continued)
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(D) - 5 or 10 pointsVacancy Rate Determined by Market Study
Performed by qualified third party per TCAC guidelines
Senior projects - limited to this population
Vacancy rate < 3 percent = 10 points
Vacancy rate < 5 percent = 5 points
D2 Extent Project Addresses the Most Serious Housing Needs (continued)
7171
D3 Development and Ownership Experience of Project Sponsor - 20 points Affordable housing developments completed in
the five years preceding application due date
Minimum ten units
Exception: If proposed project has < 15 units, and 70 percent of units reserved for Special Needs Populations, a completed project may have five units
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Experience points awarded if: Project Sponsor or affiliate was sole developer Project Sponsor or affiliate in partnership with
another entity if: Controlled key aspects Had sufficient staff to manage the
development process Received majority share of developer fee
D3 Development and Ownership Experience of Project Sponsor (continued)
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Projects were developed by staff (or a principal) currently employed by Sponsor if: Staff had primary responsibility for the
development process Staff will serve as Project Manager, or directly
supervise the Project Manager and have primary responsibility for managing the development process
D3 Development and Ownership Experience of Project Sponsor (continued)
7474
Only experience of one entity counted
Experienced entity must have controlling interest in partnership, primary responsibility for development, ongoing control of operations and sufficient staff
Must receive majority share of developer fee
D3 Development and Ownership Experience of Project Sponsor (continued)
7575
D4 Percentage of Units for Families, Supportive Housing or Special Need Populations or At-risk Rental Housing
Developments - 35 points
Scoring sheet will auto-calculate for unit size and Special Needs Population designated units
At-risk Rental Housing must meet TCAC definition. Attach completed checklist and supporting documentation including third-party legal opinion.
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D5 Leverage of Other Funds - 20 points
Developer fee is not included Land value may be included if supported by an appraisal Rural, Non-rural: As defined by TCAC Projects With at Least 75% Homeless Veteran or
Developmentally Disabled Populations will be scored using the rural category
Attachment D5 will auto-calculate
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D6 Project Readiness - 15 points
A. Enforceable commitments - constructionB. Enforceable commitments - deferredC. Environmental
Have all clearances (NEPA & CEQA) If NEPA Responsible Entity is not the locality: Submit
form to appropriate NEPA Responsible Entity
Phase I Environmental Site Assessment
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D. Local design review approvalE. Public land use approvals (not to include building
permits and ministerial approvals)F. Either:
Fee Title or long-term leasehold (attach PTR or documentation of lease agreement)
Working drawings at least 50 percent complete (attach architect certification)
D6 Project Readiness - (continued)
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D7 Adaptive Reuse, Infill, Proximity to Site Amenity or Sustainable Building
Methods - 10 points Infill: Vacant or soon to be vacant lot in established
or developed area Adaptive Reuse: Rehabilitation of vacant
commercial or industrial buildings in developed areas
Proximity to Site Amenity: Must qualify for any points under TCAC
Sustainable Building Methods: Must qualify for any points under TCAC
83
D8a 35% Homeless Veterans or Developmentally Disabled -
5 points
D8b Catalyst Program Award - 5 points
84
Service Plan Requirements
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Index and Checklist (Application Item B14) Part 1. Populations to be served Part 2. Supportive Services Plan Part 3. Supportive Services Budget Part 4. Project Sponsor and Service
Provider Experience Part 5. Property Management Experience
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Tenant Selection Narrative Part 1, Section 3
Must conclusively document occupancy will be limited to eligible households
For Homeless Youth projects, occupancy by Homeless Youth households must be documented for at least 5 project units
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Occupancy Standards, Exit Strategies, and Rent Subsidies Part 1, Section 4 Describe policies related to duration of stay Describe strategies to ensure viable housing
options for Homeless Youth exiting the project – or reassigning units
Describe subsidies which will allow for project feasibility. Describe how the subsidies may function (be reduced) in the event tenant income increases
88
Service Plan Summary Part 2, Section 1 Narrative Summary of Services Plan
Service Needs of PopulationLead Service ProviderKey Services availableStaffing
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Characteristics of Permanent Homeless Youth Housing Tenant holds a lease and is responsible for rent (not required)
Tenant has own room or apartment and is individually responsible for arranging any shared tenancy (not required)
Tenant may stay as long rent is paid and the terms of lease complied with
Unit subject to applicable state and federal landlord tenant laws
Tenant’s participation in service(s) shall not be required as a condition of tenancy
90
Verification from Funding Agency Part 2, Section 3 Agency shall be knowledgeable of the
supportive service needs of the Target Population
Agency shall endorse the services plan and the Project Sponsor as a known provider of Supportive Services similar to those proposed
Use Supportive Service Verification Form
91
Supportive Services ChartPart 2, Section 4
Record in chart: Each Support Service separately Population to be served Short Description of the Service Name of Service Provider Relationship to Sponsor Type of Agreement (i.e., MOU or letter of
commitment) Service Location – on or off Project site
92
Services Delivery Chart Part 2, Section 5 List each Staff Position separately Describe the roles and duties of each position Indicate percentage of full-time equivalent staff Name the employer organization of the position Specify Location work will be performed
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Staffing Level Table Part 2, Section 5b Indicate staffing level by completing calculation:
Total SH or HYSH Units Total FTE Support Service Staff Number of SH or HYSH Units per FTE Staff Person
If Staff level differs from HCD’s historical averages [10 – 15 households per staff for intensive services or 15 – 25 households per staff for less service intensive], provide a narrative explanation.
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Tenant Engagement Part 2, Section 6 Provide narrative of tenant engagement plan Explain how the Sponsor will elicit tenant
participation in the services A tenant engagement plan may not be
necessary for transitional housing
95
Collaboration Part 2, Section 7 Provide a Narrative Description of the
Collaboration Relationship (Section 7A) Provide Collaborative Relationship
Documentation such as a Contract, MOU or Letter of Intent (Section 7B)
96
Measurable Outcomes and Plan for Evaluation - Part 2, Section 8a Applicants must establish reasonable outcomes
and outcome measures for:Residential Stability Increased Skills or incomeGreater Self-determination
Applicants must reasonably describe the proposed system for tracking the data and agree to report on the data annually
97
Service Utilization Part 2, Section 8b Applicant must describe plan for collecting
and analyzing service utilization data:Prior to tenancyDuring tenancyWhich systems of care will provide the data (i.e.
health, mental health, substance abuse, criminal justice)
How data will be collected and analyzed
98
Supportive Services Budget – Part 3, Section 1
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Supportive Services Cost Per Unit Part 3, Section 2 Indicate supportive services cost per unit
by completing calculation:Total SH or HYSH UnitsTotal Supportive Services CostsTotal Supportive Service Costs per Unit
If supportive service cost per unit differs from a range of $5,000 - $10,000 per unit, provide narrative explanation
100
Funding and Service Commitments
Part 3, Section 3 A minimum of 25% of total Service Budget must be
committed at the application stage Letters of Commitment or Intent to Fund must provide
the following on organization letterhead: Project name Description of services to be funded or provided Value of funds or in-kind services Term of funding or service provision History of organization providing funds or services
101
Experience Part 4, Section 1
Document 24 months experience in ownership or operation of one special needs or supportive housing project
Document 24 months experience in providing services to the target population
Property manager must have 24 months experience in managing a supportive housing or special needs housing project containing 5 or more dwelling units
This is a threshold requirement
102
Service Funding History Part 4, Section 2B Document the funding history of the qualifying
service provider Document that the provider will be able to
access funds from the programs that fund the services identified in the Supportive Services Plan
List only funding obtained in last 5 years