Housing Trust Fund Corporation Office of Community Renewal Chris Leo, President March 29, 2017
NYS HOME Local Program Small Rental Development Initiative (SRDI) Application Technical Assistance Webinar March 29, 2017
Agenda • Welcome and Introductions • NYS HOME Program & SRDI Project Description • Project Assistance, Developer Fees, Contract Term • CHDO’s • Application Resources • Project Management Plan & Questions • Pro Forma Budget Workbook & Instructions • Project Requirements • NYS Grants Gateway & CDOL • Rating Criteria, Funding Priorities and Application Tips • Technical Assistance, Q & A & Wrap-up
Welcome and Introductions Ann M. Petersen, LEED AP , Director (Albany Regional Office) ann.petersen@nyshcr.org Stephanie Galvin-Riley, Assistant Director (Albany Regional Office ) stephanie.galvin-riley@nyshcr.org Program Managers: Caillin Furnari (Albany Regional Office) caillin.furnari@nyshcr.org Richard Baldwin (Syracuse Regional Office) richard.baldwin@nyshcr.org Emma Watson (Buffalo Regional Office) emma.watson@nyshcr.org
Welcome and Introductions Finance and Administration (Albany Regional Office) Alex Smith, Manager of Finance and Compliance alex.smith@nyshcr.org Articia Hill, Administrative Operations - IDIS Assistance articia.hill@nyshcr.org Shout Outs: Housing Trust Fund Corporation (HTFC) and Homes and Community Renewal (HCR) staff statewide helping to promote SRDI and may provide environmental review, construction inspection and asset management expertise for awarded projects. Monte Franke, Franke Consulting SRDI RFP and related documents available at: www.nyshcr.org/Funding/SRDI/
̶ ̶ New York State HOME Program • General management and oversight by Housing Trust Fund Corporation (HTFC) Office of Community Renewal (OCR), under the direction of Chris Leo, President. • 2 Program Areas: HOME Local - 60% of funds for small scale projects: homebuyer assistance, owner occupied housing rehabilitation, rental rehabilitation, manufactured housing replacement, housing development, tenant based rental assistance and new SRDI. Managed by HTFC OCR, Ann Petersen, Director. HOME Capital - 40% of funds for large scale multi-unit rental projects, typically involving Federal or State Low Income Housing Tax Credits. Managed by HCR, Sean Fitzgerald, Assistant Commissioner, HCR.
Project Description Specialty RFP Applications due in Community Development On Line (CDOL) Application System by Wednesday, May 10, 2017, 3:00pm • Non-profit developed, owned and managed rental housing of 2-25 units (25 unit maximum project size), no geographical restrictions, eligible statewide. • 1 or more buildings on a single site or multiple sites under common ownership, financing and management • Serving renters making less than 80% AMI, more than 5 units, then 20% targeted to under 50% AMI • If you have funding other sources than HOME, you must be able to show evidence of commitment, as required by the HOME rule.
Project Description • $15 Million • HOME rules require a 25% match. HTFC has met the federal match requirement for SRDI funds through excess match generated from other State funded affordable housing activities, therefore, SRDI does not have a match requirement. • Rehabilitate what you already own, acquire and rehabilitate what you will own or newly construct what you will own. • Who is the eligible Developer-owner ? • Market Need
Project Description • Due to HUD requirements, funds need to be committed and expended on a shorter than usual time frame, therefore, the requirements for a quick application response and selection of ready-to-go projects is essential. • Awardees should expect the process from award to contract to be a be a continuing conversation with the HTFC and HOME Local staff to finalize project details. • Awards estimated Summer 2017, conditional commitment pending environmental approval expected Fall 2017.
Project Description • The Developer-owner must manage or hire a property manager to oversee the long term management responsibilities of the rental housing throughout the required Period of Affordability (POA), typically 15 to 20 years. • The Developer-owner must be in charge of all aspects of development process to include: identification, procurement and oversight of contractors, negotiation of land use/permit, zoning approvals, securing non-HOME financing, selecting architects, engineers, housing rehabilitation specialists and must oversee the progress of all work paid with HOME funds and determine the reasonableness of costs. • The Developer-owner must demonstrate current or future site control. Applicants must submit as a part of the application, current ownership documentation such as a deed or future ownership documentation such as an executed purchase option.
Project Description • The housing must be used for permanent or transitional low income rental housing as permitted by the HOME Final Rule, group homes and Single Room Occupancies (SROs) are eligible. • The Developer-owner must be the sole owner of the property during development and the required POA. The project cannot be co-owned with another entity. • Projects that are not eligible for HOME funding include shelters, temporary housing, student housing, Federal Public Housing units, and properties that were previously financed with HOME and are under an active HOME regulatory agreement and POA. • Due to the time constraints for the commitment and expenditure of funds, projects that include State or Federal Low Income Housing Tax Credits as a financing source are also not eligible.
National Environmental Protection Act (NEPA) • NYS HOME Local Program awarded projects are subject to the provisions of the National Environmental Policy Act (NEPA) and a review is done to ensure the project activities will not harm the environment. • HTFC may elect to execute a conditional commitment of HOME funds as permitted by HUD Notice CPD-01-11, to meet program commitment requirements. 24 CFR 58.22 prohibits the commitment or expenditure of HOME funds or any other funds until the environmental review process is complete and the environmental clearance and subsequent release of funds has been received. • The Developer-owner must refrain from taking any choice limiting actions on the project site(s) through the environmental clearance of the NEPA and SEQRA reviews.
National Environmental Protection Act (NEPA) • The Developer-owner may not: acquire or enter into a contract to acquire; demolish or clear; construct or rehabilitate or take any other action that would limit the choices of HTFC during the environmental review process. • If prohibited activities are undertaken prior to receiving the approval or release of funds, the applicant is at risk for non- approval of the NEPA review, denial of assistance and repayment of HOME funds.
National Environmental Protection Act (NEPA) • From the date of the issuance of the RFP (March 15, 2017) through when HCR EAU notifies the Developer-owner of environmental clearance, only project planning and other exempt activities may be conducted. • Developer-owner cannot execute a purchase contract for acquisition of property during the time from the release of the RFP through the completion of the environmental clearance, however pre-existing contracts are permitted. • Reasonable and documented eligible planning and other exempt activities incurred costs may be reimbursed within 12 months of the Developer- owner’s contract execution with the HTFC.
Project Assistance • RFP offers maximum HOME funds available to allow the Developer- owner to request funds sufficient to deliver an affordable rehabilitated or new construction small rental project that will be sustainable throughout the required POA. • HOME funds provided as deferred loans, 0% interest, due on sale, requires full repayment throughout the POA (sale or non-compliance) that is secured by a regulatory agreement and note and mortgage. The loan is assumable and/or may be subordinated to other debt with HTFC approval. If project remains in compliance for POA, loan and regulatory agreements are satisfied. • Funds may be used as permanent or construction financing (may be invoiced for costs incurred during construction). HTFC recommends non- profits have funds available to pay contractors up front while invoicing the HTFC.
HOME Maximum Subsidy Limits • The maximum amount of HOME funds that can be invested per unit must be less than the HOME Maximum Subsidy limit (times the number of HOME assisted units) as calculated by HUD in the table below: 2017 HOME Maximum Subsidy Limits Bedrooms All Areas Except NYC, Albany & NYC, Albany & Buffalo Buffalo 0 $58,378 $140,107 1 $66,923 $160,615 2 $81,377 $195,304 3 $105,276 $252,662 4+ $115,560 $277,344 • The maximum subsidy limit applies specifically to the number of HOME assisted units. Not all units must be HOME assisted, but unassisted units may not receive HOME funds or be used to determine the maximum HOME subsidy.
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