NYS HTFC 2012 HOME Local Program Exit Conference Presentation. Please press *6 to mute your line

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1 NYS HTFC 2012 HOME Local Program Exit Conference Presentation Please press *6 to mute your line Do not place this call on hold music or messages will be transmitted to all participants We will begin the presentation a few minutes after 10:00am

2 New York State HOME Local Program 2012 Exit Conference Presentation New York State Housing Trust Fund Corporation Office of Community Renewal Ann M. Petersen, LEED AP Director, NYS HOME Local Program New York State Homes and Community Renewal Office of Community Renewal State Street, Albany, NY PH: (518) FX: (518)

3 New York State Housing Trust Fund Corporation HOME Local Program Exit Conference Presentation Program Summary Overview Eligible and Prohibited Activities Funding History Application Process Eligibility review Rating Criteria Application Tips Threshold Questions What we are asking that you should know Application tips - common deficiencies Questions?

4 HOME Local Program Overview The HOME program was first funded by HUD in The NYS Housing Trust Fund Corporation has been awarded HOME funds by HUD since the program s inception. The HOME program has a specific focus on building and rehabilitating units of affordable housing. The New York State Housing Trust Fund Corporation (HTFC) is a Participating Jurisdiction (PJ) and receives an annual, direct allocation of HOME funds from HUD. Administered by the Office of Community Renewal under the direction of the New York State Housing Trust Fund Corporation.

5 Program Summary HOME HOME Investment Partnerships Program The HOME program funds the acquisition, construction and rehabilitation of affordable housing and assists renters and first-time home buyers.

6 Program Summary Eligible Activities Homeowner Rehabilitation: HOME funds may be used to assist existing homeowners with the repair, rehabilitation or reconstruction of owner-occupied units. Whenever HOME funds are used for rehabilitation, the work must be performed according to the PJ s written rehabilitation standard and the unit must be brought up to the applicable state or local code. If a state or local code does not exist, the unit may be brought up to the standards of the national model codes. The HOME Program may not undertake some forms of special purpose homeowner repair programs such as Weatherization programs; Emergency repair programs; or Handicapped accessibility programs. These types of programs may be undertaken, if the property meets or will be brought up to the applicable HOME property standards.

7 Homebuyer Activities: Program Summary Eligible Activities NYS HTFC may finance the acquisition and/or rehabilitation or new construction of homes for homebuyers. Acquisition: HOME funds can be used to assist eligible homebuyers to purchase affordable homes by providing down payment or closing cost assistance or by reducing the monthly carrying costs of a loan from a private lender. If HOME funds are used to assist a homebuyer who has entered into a contract to purchase housing to be constructed, the homebuyer must qualify as a low-income family at the time the contract is signed.

8 Program Summary Eligible Activities Homebuyer Activities Continued: Acquisition and rehabilitation: HOME funds can be used to fund rehabilitation activities. NYS HTFC can provide assistance directly to the homebuyer to perform the rehabilitation after the purchase. In such programs, NYS HTFC may offer rehabilitation loans in addition to, or instead of down payment and closing cost assistance. PJ s may also use a loan guarantee to minimize the lender s risk associated with the rehabilitation work. New construction: HOME funds can be used to work directly with developers to construct housing or can provide HOME funds to other organizations or individuals to contract for the construction.

9 Program Summary Eligible Activities Rental Housing: HOME funds may be used for acquisition, new construction or rehabilitation of affordable rental housing. The developers or owners of the rental housing may be small scale property owners, for-profit developers, nonprofit housing providers, CHDOs, Local government, redevelopment organizations or public housing authorities. NYS HTFC may provide assistance to rental housing in a number of different forms: predevelopment loans or grants, construction loans, permanent mortgage loans, bridge loans, credit enhancement and possible refinance of existing debt.

10 Program Summary Eligible Activities Tenant-Based Rental Assistance (TBRA): Tenant-based rental assistance (TBRA) is a rental subsidy to help individual households afford housing costs such as rent and security deposits. NYS HTFC may also assist tenants with utility deposits, but only when HOME is also used for rental assistance or security deposits. The TBRA program provides payments to make up the difference between the amount a household can afford to pay for housing and local rent standards. TBRA programs help individual households (rather than subsidizing particular rental projects). TBRA assistance moves with the tenant, if the household no longer wishes to rent a particular unit, the household may take its TBRA and move to another rental property.

11 Program Summary Non-eligible - Prohibited Activities Prohibited Activities: Project reserve accounts Tenant-based rental assistance for certain purposes Match for other programs Development, operations or modernization of public housing Double-dipping Acquisition of PJ-owned property Project-based rental assistance

12 HOME Local Program Funding History Year: Application s: Awards: In 2012, the HOME Program was cut by 43% at the Federal level.

13 Application Process Preparing to Apply Need for safe, decent, affordable housing Interested Local Program Administrators Local Community Leader interest NYS HOME LOCAL PROGRAM APPLICATION Marketing & Outreach Funding Commitments Eligible Target Area Administrative Capacity Planning Efforts

14 Resources Application Process Preparing to Apply NYS HTFC HOME Local Program Request for Proposals NYS HTFC Housing Rehabilitation Standards (rev. 2006) NYS Housing Trust Fund Corporation HOME Program 2012 Application Instructions CDOL application system instructions 2012 NYS HOME Program Reference Manual

15 HOME Local Program On-line Application Process Community Development On-Line System (CDOL) Applicants apply for HOME Local Program funding using HCR s Community Development On-Line System (CDOL), which is accessible online at

16 Application Process CDOL HOME LPA application submitted State Agency Programmatic Threshold Review Ineligible Application Eligible Application State Agency Review and Score Awards Determined

17 2012 Overall Scoring Criteria (as listed in the RFP, points awarded vary slightly based on activity, up to a total of 100 points) A. Average income level served 5 points B. Persons with special needs targeted 5 points C. Percent of poverty in service area 5 points D. Number of persons in poverty in service area 5 points E. Age of Housing -5 points F. Leveraging 10 points G. Administrative Plan 25 points H. Previous Performance/Experience 15 points I. Readiness - 10 points J. Environmental Health and Safety 5 points K. Community Need 10 points

18 Eligibility Review Eligible applicants include units of general local government (counties, cities, towns, and villages) that are not HUD-designated participating jurisdictions; not-for-profit corporations, and housing authorities; CHDOs applying to develop home ownership projects. Only residential properties that will be owner-occupied and/or renteroccupied at project completion may be assisted under the program. Eligible activities include new construction, substantial or moderate rehabilitation, purchase and installation of new manufactured homes, homebuyer assistance and tenant-based rental assistance. Funds may be used for any customary development hard costs, acquisition, related soft costs, relocation costs, and costs related to tenant-based rental assistance.

19 Eligibility Review If more than one source of HOME funds is being used, total HOME funds from all participating jurisdictions must be within published HOME subsidy limits. HTFC assistance is limited to $40,000 per unit. For CHDO homeownership development, assistance is limited to $50,000 per unit. All HOME funds must benefit households at or below 80% of area median income (AMI); 90% of all rental units (including rental assistance) must benefit households with incomes at or below 60% of area median income (AMI). In rental projects with 5 or more HOME-assisted units, a minimum of 20% of the units must be occupied by households with incomes at or below 50% of area median income.

20 HOME LPA Rating Criteria Rehabilitation Applications Average income level served (5 Points) Applications are rated on the extent to which they propose deeper income targeting than required by statute. To achieve the maximum score on this criterion, applicants must propose to only assist households with incomes below 50% of area median income. Those that target an average below 60% of area median income will receive an intermediate score. Those that do not target below the statutory minimum will not receive any points. Please be advised that additional income targeting is required for rental units assisted with HOME funds.

21 HOME LPA Rating Criteria Rehabilitation Applications Persons with special needs targeted (5 points) Programs that target 20% of assisted units to households which include members of one of the 8 targeted groups listed in the 2012 NYS HOME Program Reference Manual (available on the HCR web site), but do not provide evidence of a service contract or written referral agreement with a local service provider that serves persons with special needs, will receive 3 points. Programs that propose targeting 20% or more of units to a targeted group, and provide evidence of a service contract or written agreement, will receive 5 points.

22 HOME LPA Rating Criteria Rehabilitation Programs Percent below federal poverty level in program service area (5 points) Programs in areas with the highest percentage of persons below the poverty level compared to service areas of other applications will receive the most points. Programs in areas with the lowest percentage of persons below the poverty level compared to service areas of other applications will receive the least points. Number of persons below federal poverty level in program service area (5 points) Programs in areas with the greatest number of persons below the poverty level, compared to service areas of other applications, will receive the most points. Programs in areas with the least number of persons below the poverty level compared to service areas of other applications, will receive the least points.

23 HOME LPA Rating Criteria Rehabilitation Programs Age of Housing (5 Points) Need for rental and owner-occupied housing rehabilitation programs is evaluated in part based on the age of housing in the service area. Rehabilitation programs in areas with the highest percentage of housing units built before 1960, compared to other applications received, will receive the most points. Leveraging (10 points) Measures the ratio of HCR/HTFC funds required for permanent financing. Owner-occupied rehabilitation programs in which 50% or less of total program costs will be provided by HCR/HTFC funds will receive the most points. Rental rehabilitation programs that require owners to provide a match equivalent to 25% of total project costs will receive the most points.

24 HOME LPA Rating Criteria Rehabilitation Programs Administrative plan (25 points) Administrative plans will be reviewed to assess the adequacy of the proposed program design, staffing plan, outreach and selection procedures, construction management procedures, fiscal management, and procedures for compliance with other federal requirements. Plans determined adequate in each of these respects will receive the full 25 points. Those with major deficiencies, or where not all required elements have been addressed, will receive a lower score or no score.

25 HOME LPA Rating Criteria Rehabilitation Programs Administrative Plan: Applicants should carefully review the application instructions for the activity specific administrative plan criteria for their application. Elements required are clearly identified by activity, and applicants should answer all questions and provide only the information requested. Administrative plans that include superfluous data or information not specifically requested may risk a lower rating. Such inclusion often results in a lack of clarity about the program s overall design.

26 HOME LPA Rating Criteria Rehabilitation Programs Experience and prior performance (15 Points) Applicant experience with the HOME Program and similar housing programs will be evaluated as an indication of the likelihood of successful program completion. Applicants who have not administered a NYS HOME Program award during the past 5 years will be evaluated on their past experience administering other housing rehabilitation. Applicants who have administered at least two other comparable programs during the past 5 years, with funding amounts equal to the proposed program, will receive the most points. Applicants who have less experience, or who have only administered more limited programs, will receive fewer points.

27 HOME LPA Rating Criteria Rehabilitation Programs Experience and prior performance (15 Points) Applicants who have previously received a New York State HOME Program award and are in good standing with HTFC will receive 15 points unless any of the following thresholds have been missed: Any fiscal year 2006 or earlier program agreement not fully expended minus two points; Any fiscal year 2007 or earlier program agreement not fully committed minus two points;

28 HOME LPA Rating Criteria Rehabilitation Programs Experience and Prior Performance: Any fiscal year 2008 or earlier program agreement less than 50% expended minus two points; Any fiscal year 2009 or earlier program agreement less than 50% committed minus two points; Any fiscal year 2010 or earlier program agreement that is not executed or has not received environmental clearance minus two points. Applicants with multiple awards in any one year will lose two points for each milestone missed for any single program agreement.

29 HOME LPA Rating Criteria Rehabilitation Programs Readiness (10 Points) State recipients and sub recipients are rated based on program readiness. Programs that demonstrate a complete understanding of the process (including federal and State laws) with systems in place for intake, processing, monitoring, etc. will receive 10 points. Programs that demonstrate a complete understanding of the process (including federal and State laws) but do not have systems in place for intake, processing, monitoring, etc. will receive 5 points. Programs that do not demonstrate a complete understanding of all processes will receive 0 points.

30 HOME LPA Rating Criteria Rehabilitation Programs Environmental Health and Safety (5 points) Applications that will only assist units and/or areas that have been identified as at-risk for lead paint hazards, radon, asbestos, indoor air quality problems or other environmental health and safety issues will receive up to five points.

31 HOME LPA Rating Criteria Rehabilitation Programs Applicants proposing to use all of their HOME award for the replacement of dilapidated mobile or manufactured homes will receive 5 points Applicants proposing that only a portion of their award be used for such replacement activity will receive fewer points. Applicants that propose targeting only housing units that have been identified as unsafe/unhealthy due to the presence of one or more of the following hazards will also receive all 5 points. Applicants that target at least 60% of assisted units to remediate these hazards will receive 3 points. No points will be awarded for applications that propose lower targeting, or which exhibit significant deficiencies in this area. The hazardous conditions that will be considered are: Lead based paint; Asbestos; Moisture-related health problems, such as mold; Other indoor air quality issues (i.e. carbon monoxide problems related to faulty heating systems); Other immediate threat health and safety issues (cited by code for dangerous electrical hazards, lack of potable water, etc.).

32 HOME LPA Rating Criteria Rehabilitation Programs Community Need (10 points) Applicants should utilize this section to document the need for public investment; describe the intended impact of that investment; identify established relationships with other community partners; identify other resources available for this program and describe how they will be used to supplement the requested HOME funds in the revitalization of the service area.

33 HOME LPA Rating Criteria Rehabilitation Programs Community Need (10 points) Applicants should reference pertinent sections of existing local master plans, consolidated plans and other community development or strategic plans that support the proposed HOME program. Applications that score the most points will be ones that: present substantial, objective data demonstrating a need in the target area that cannot be addressed by existing market forces and public investment; will enable the improvement or preservation of the existing housing stock of the service area and will sustain a more livable community; are supported by existing market studies, Community Development or Strategic Plans; and describe established relationships with other housing and community development stakeholders.

34 HOME LPA Rating Criteria Homebuyer Applications Homeownership Rate in the Program Service Area (5 points) Need for homeownership programs is evaluated in part based on the rate of home ownership in the service area and the relative affordability of forsale housing in the service area. Programs in areas with the lowest percentage of owner-occupied units, compared with other applications received, will receive the most points. The relationship between the costs of home ownership relative to income as compared to other applications will also be considered. Homeownership Affordability Index (5 points) The home buyer affordability index is based on median incomes and median sales prices across the state. Programs in areas where homeownership is more expensive relative to incomes, as compared with other applications, will receive the most points.

35 HOME LPA Rating Criteria CHDO Applications Homeownership Rate in the Program Service Area (5 points) Need for homeownership programs is evaluated in part based on the rate of home ownership in the service area and the relative affordability of forsale housing in the service area. Programs in areas with the lowest percentage of owner-occupied units, compared with other applications received, will receive the most points. The relationship between the costs of home ownership relative to income as compared to other applications will also be considered. Homeownership Affordability Index (5 points) The home buyer affordability index is based on median incomes and median sales prices across the state. Programs in areas where homeownership is more expensive relative to incomes, as compared with other applications, will receive the most points.

36 HOME LPA Rating Criteria CHDO Applications Green Rehabilitation/Green Building Practices (10 points) CHDOs proposing to use HOME funds for rehabilitation or construction activities will receive points based on the extent to which their plan to follow green construction practices addresses all required elements. Points will be awarded based on the extent that elements of the plan are addressed in a satisfactory manner. Rehabilitation Plans adequately address indoor air quality, moisture control, construction waste management, and other required elements will receive the greatest number of points;

37 HOME LPA Rating Criteria CHDO Applications Green Rehabilitation/Green Building Practices (10 points) New Construction Plans that document that their project will meet the mandatory criteria and standard criteria listed in the Green Building Criteria Checklist and the Green Building Reference Manual found at and gcriteriareferencemanual.pdf will receive the greatest number of points. Specific information on each all of the above requirements criteria can be found in the HCR Green Building Criteria Reference Manual. In addition, the Green Building Criteria Checklist must be completed and submitted as part of Attachment 2 of the application.

38 HOME LPA Rating Criteria TBRA Applications Tenant Rent Burden (10 Points) Need for tenant-based rental assistance programs is evaluated in part based on the percentage of renter households in the service area that are rent-burdened and the relative affordability of rental housing in the service area. Programs in areas where more than 80% of renter households pay more than 30% of their income for rent will receive the most points. Programs located in areas where between 41% and 80% of renter households pay more than 30% of their income for rent will receive an intermediate score. Programs in areas where less than 41% of all renter households pay more than 30% of income for rent will receive the lowest score.

39 HOME LPA Rating Criteria TBRA Applications Affordability index (5 points) The Affordability Index will be used to gauge the housing cost of an area for TBRA programs. Programs in areas where very low-income tenants have less than 85% of the income needed to rent a unit at the federal Fair Market Rent level will receive the most points. Programs in areas where very-low-income tenants have 85% to 105% of the income needed to rent a unit at the federal Fair Market Rent level will receive an intermediate score. Programs in areas where very low-income tenants have more than 105% of the income needed to rent a unit at the federal Fair Market Rent level will receive the fewest points.

40 Threshold Questions Is the applicant a municipality, notfor-profit corporation or a public housing authority? Will the project benefit households at or below 80% of median? Will the HOME funds be used only to assist HOME eligible activities? Does the project qualify as affordable rental or homeownership housing? Was the person who certified the application qualified to do so?

41 What are we asking that you should know? Average income level served: are you serving the lowest income applicants? Persons with special needs: are you delivering units to serve eligible special needs populations? Percent/number of Persons below Federal poverty level in service area: does your service area have a high number of persons who are poorer then this level? Age of Housing in Service area: is a large portion of the housing in the service area built before 1960? Leveraging: does your proposed project bring other funders dollars to the table? If so, are the funds committed?

42 What are we asking that you should know? Administrative Plan: Is your overall program design comprehensive? Have you clearly described the process for how you will qualify applicants? Have you clearly described how you will select properties for assistance? Have you described your activities/process to lead a beneficiary from applying for assistance through completion of the unit/assistance? Have you described how you will provide counseling to the beneficiary (housing, homeownership, rental)? Have you described your construction process from start to finish? Have you described in detail how you will procure services?

43 What we are asking that you should know? Administrative Plan: Have you demonstrated that you know how to comply with lead based paint regulations? Have you demonstrated knowledge of environmental health and safety issues and how to mitigate according to the HOME regulations? Have you described your contract process to include information about what will be in your contract for procured services in the program? Have you demonstrated that you know how to spend HOME funds according to the rules? Have you demonstrated that you know how to income qualify applicants according to HOME regulations?

44 What are we asking that you should know? Have you described how you will lien the property, require a resale restriction and/or limit rents according to HOME regulations? Have you properly described how to apply the Period of Affordability restrictions? Have you described your future monitoring plan according to HOME regulations? Are you ready to start the project? Have you described how you will effectively complete the project in 2 years? Do you have all the systems in place to begin the program? Do you demonstrate correct knowledge of the HOME program rules and Federal regulations?

45 What are we asking that you should know? Is your project team experienced in doing this type of work? Do you describe how you will collaborate with other agencies? Will you have verified service agreements and or MOU s? Is your budget feasible for what you have planned? Is there enough subsidy, too much subsidy? Have you shown a need for this type of project in your community? Do you have a documented pool of applicants pre-qualified for assistance? Have you described in detail your monitoring process during the period of affordability?

46 Application Tips Common Deficiencies in Unsuccessful Applications Budget narratives do not match budget tables, and budget presented is not feasible. Present a feasible, well planned budget. Make sure funding amounts proposed are within eligible limits. Budget narrative should match budget table. Explain why public funds are necessary. Substantiate the requested amount. Identify each of the estimated costs, including the source of the funds and proposed use in the HOME Local Program. For each source identified, indicate whether the source is formally committed or pending approval, document committed funds.

47 Application Tips Common Deficiencies in Unsuccessful Applications Applicant is not in compliance with existing HTFC HOME Local Program contracts and has not taken satisfactory steps to remedy noncompliance. Address any open HCR contracts in application and provide timeline for completion. Program status of open contracts is considered in the capacity evaluation. Where multiple contracts are/will be open at once, address capacity to administer simultaneously. Be responsive to program staff in regards to open contracts and needed reports. Provide regular updates on status of existing projects.

48 NYS HOME Local Program Questions? NYS Homes and Community Renewal website: Regional Program Managers: Emma Watson (Buffalo Regional Office) Richard Baldwin (Syracuse Regional Office) Glen Laws (Albany Regional Office) Christine Newell (Albany Regional Office)