Target Population Requirements Below are the specific items that need to be addressed in your organization s application.
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- Merryl Julia Johns
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1 HealthChoices Behavioral Health Housing Reinvestment Funds County of Montgomery, Pennsylvania Program Offices: Housing and Community Development Mental Health/ Developmental Disabilities/ Early Intervention Introduction There is a great need for affordable, community-based housing options for persons in recovery from a mental health challenge. Montgomery County s Office of Mental Health ( OMH ) (part of the Mental Health/ Developmental Disabilities/ Early Intervention Program Office or MH/DD/EI ) has long held the belief that that safe and secure housing of one s choice provides the foundation for recovery. The Montgomery County Housing and Community Development ( HCD ) Program Office has been a key partner with OMH to look for ways to increase the affordable housing stock for persons who experience mental health challenges. In Pennsylvania, the managed care component of Medical Assistance ( MA ) is known as HealthChoices. Individual counties have the option of managing the Behavioral Health component of HealthChoices and participating in the Reinvestment process. Each year, the available HealthChoices funding for behavioral health services for each county is capitated (a designated amount based upon the number of persons in the county who are eligible.) If the actual cost of services for that year is less than the capitated amount, the unspent amount can be reinvested into the community behavioral health system. The County of Montgomery participates in this Reinvestment process. In 2007, Pennsylvania s Department of Human Services ( DHS ) Office of Mental Health and Substance Abuse Services ( OMHSAS ) encouraged Counties to use HealthChoices Behavioral Health Reinvestment Funds (Reinvestment) to increases housing options for persons who experience mental health challenges. One method of increasing housing options is to use Reinvestment Funds as Capital / Gap Financing for affordable rental housing development. Scope The County of Montgomery is issuing a Notice of Funding Availability (NOFA) for proposals to increase permanently affordable housing for persons with mental health challenges. The County will provide up to $750,000 of 2015 HealthChoices Behavioral Health Housing Reinvestment Funds as Capital/Gap Financing for rental housing development in one or more projects. For use of the funds, Housing Developers will enter into agreements with the County to target a minimum of six (6) affordable rental housing units to persons referred through the Office of Mental Health. The rents of these targeted units will be affordable to persons with extremely low incomes (households whose income is at or below 20% of the area median income) over a term of 30 years. This initiative is being administered jointly by HCD and MH/DD/EI, which are both Program Offices within Montgomery County s Department of Health and Human Services. At a minimum, projects must meet ALL of the following criteria to be considered: The project will add to the affordable housing stock for persons who experience mental health challenges. The amount of Reinvestment Funds used per housing unit / apartment shall not exceed $125,000. The project can demonstrate ability and willingness to enter into a long term (30 year) residential accommodations or similar agreement with the Office of Mental Health for the targeted units. The rents of the targeted units shall be affordable to persons with extremely low incomes (households whose income is at or below 20% of the area median income). The Project must be located in Montgomery County. 1
2 Preference will be given to Projects meeting the following criteria: The rents of the targeted units shall be based on the percentage of tenant income (30%) using the tenant rent calculation that is used by the Montgomery County Housing Authority. The amount of Reinvestment Funds used per housing unit / apartment is $100,000 or less. The project will be near public transportation with access to retail establishments. The targeted units are primarily one-bedroom units. The number of targeted unit does not represent more than 25% of the total units in the project. Ability to leverage other funds and resources for the project, especially Section 811 vouchers. Target Population To be eligible to reside in a target unit funded by HealthChoices Behavioral Health Reinvestment Funds ( MH Capital Unit ), at least one Head-of-Household must meet the following criteria: Have a significant mental health challenge (have a mental health diagnosis meeting the state definition of serious mental illness or co-occurring disorder). Be eligible for and have Medical Assistance (HealthChoices) health insurance. Be a Montgomery County Resident. Be 18 years or older. Within the target population, the following priority groups exist (in this order): 1. Persons that are diverted or discharged from Norristown State Hospital. 2. Persons who are receiving a temporary rental subsidy through OMH. 3. Residents of mental health Transitional Residential Programs (also known as TRR, CRR, or Community Residential Programs ). 4. Persons who are homeless. 5. Persons who are diverted or released from Montgomery County Correctional Facility. Montgomery County Office of Mental Health has made a commitment to not only support individuals to obtain housing, but to maintain housing as well. The Office has an array of supportive services that work with individuals to support their health and wellness as they become more active members of the communities in which they live and work. The Office will provide technical assistance and create liaisons between the housing developer and local supportive service providers. Requirements Any housing generated by this activity must be located in Montgomery County. Applications proposing to create housing in other counties will not be considered. Incomplete applications may not be reviewed. Below are the specific items that need to be addressed in your organization s application. A. SUMMARY / COVER AND CERTIFICATION a. Please fill out the attached document. Complete all parts of the document, using "N/A" whenever an item is not applicable to the project. B. ORGANIZATIONAL SKILL AND EXPERIENCE a. Provide a brief history of your organization. Briefly summarize any relevant experience your agency has. C. PROJECT NARRATIVE Provide a comprehensive description of this project. The narrative must include the following: a. How the project meets the requirements and priorities of this NOFA (including back-up documentation as appropriate). b. Description of any other County needs, priorities, or goals addressed by this project (including back-up documentation as appropriate). c. Project Schedule which includes Key Milestones and Dates (including other funding dates) d. Details specifically addressing each cost item identified in the project budget. e. Any other information applicant feels necessary to describe. D. CAPITAL AND OPERATING BUDGETS Provide a detailed budget for the project, including the following: a. Project financing / Sources of funds - including construction costs. 2
3 b. Unit composition (by number of bedrooms), square footage of building and of living space. c. Independent property appraisal d. 30 year operating proforma for the unit. e. Overview of the proposed rent and utility charges for all units, by bedroom size. f. Overview of any rental subsidy (i.e. Section 8 project based voucher) for the tenants. If no rental subsidies are proposed, please provide an overview of how the unit will remain affordable and sustainable if the rents collected do not cover the costs to maintain the unit. g. Written evidence of all funding commitments. E. ADDITIONAL DOCUMENTS (as applicable) a. Certification of Nonprofit Status b. Articles of Incorporation c. By-Laws d. Most Current list of Board of Directors or Officers e. Annual Operating Budget f. Most recent financial statement and audit g. For new construction property related documents (i.e., copy of agreement of sale, appraisal, inspections, site plan, floor plan, leases, photographs, zoning documents, etc.) h. For rehabilitation a copy of the deed, bids, relocation documents, etc. i. Identify the entity that will be responsible for day-to-day management. The management agent should submit a resume that describes routine fair housing training provided to management staff. j. Affirmative Marketing Plan. Review and Selection Process While proposals will undergo a County review process, final selection is contingent upon approval from OMHSAS. A subsequent NOFA process may be necessary if the County determines there are no appropriate proposals and/or OMHSAS will not provide approval of any project the County deems appropriate. Proposals will be reviewed based upon the funding criteria outlined above and the following evaluation criteria: Application Completeness Feasibility this includes: o Financial Soundness o Subsidy Layering Review o Project Schedule, site control, community support zoning approvals. o Ability to enter into contractual arrangements with the County within a reasonable timeframe (as determined by the County). o Ability to completely drawn down Reinvestment Funds within a five year period. Value this includes: o The number of units that will be dedicated to persons referred by OMH. A minimum of six units is required. The preference is for eight or more units. o Leveraging Ability to bring other funds and resources to the project (not limited to dedicated units). Examples include PHFA LIHTCs, Section 811 vouchers, Project Based Section 8, HOME funds, budget counseling, health education, etc. Ability to enter into a 30 year residential accommodations agreements or similar legally binding document Ability to limit tenant rent and utility charges for the targeted units to 30% of tenant household income Agency/Developer capacity, experience, and history of performance Location Access to: o Public transportation o Healthcare and other services o Grocery shopping o Employment centers Extent to which the project will meet the County s Housing Goals and Priority Needs identified in HCD s Five-Year Consolidated Plan. 3
4 Legally Binding Agreements All funding recipients will be required to execute legally binding agreements with the County within a reasonable timeframe (as determined by the County). Any activity that cannot meet this requirement may be considered a non-fundable activity. Project costs incurred will not be reimbursed prior to the execution of the appropriate documents and/or processes, such as environmental review, etc. Legally binding agreements will be reviewed and approved by the County Solicitor and/or other appropriate County official(s) to ensure compliance with OMHSAS and County requirements. At a minimum, legally binding agreements must include the following: The number of units that will be committed to the target population over a 30 year term. Description of how restrictions of use will be passed on to future buyers in the event of property transfer. Description of how the county will be reimbursed or be assured use restrictions in the event the property goes into foreclosure. Requirement that units may undergo periodic inspections to ensure compliance with HUD s Housing Quality Standards (HQS) and that failure to meet these standards may trigger foreclosure or other actions as specified by the County. Requirement that the County will be named on the insurance of fixed assets in order for the County to be notified if coverage ceases. Indication that failure to maintain insurance of fixed assets can trigger foreclosure or other action as specified by the County. Requirement that selection of construction and/or rehabilitation services occur through competitive bidding or written estimates as required by County Code or prudent business practices. Contract Period Housing Developers will be required to enter into agreements with the County to target affordable housing units for persons referred through OMH for a term of 30 years. Housing Developers must, however, be able to completely draw down the HealthChoices Behavioral Health Reinvestment Funds within 5 years. Application - Specific Instructions Incomplete, insufficient, or missing information will cause applications to be eliminated from consideration. Please submit typewritten applications on 8 1/2" x 11" paper. Each application must contain page numbers and include a table of contents. All applications must be punched (three hole) and may be bound in a three ring binder. Please do not staple the application. At the bottom right hand corner of each page of the application include a label or some other identification indicator with the agency name and project name and page number. The original and one copy of the application must be submitted to the Program Office of Housing and Community Development. APPLICATIONS MUST BE RECEIVED IN THE PROGRAM OFFICE OF HOUSING AND COMMUNITY DEVELOPMENT BY 4:15P.M., MONDAY APRIL 16, TRANSMITTALS VIA FACSIMILE (FAX) MACHINE WILL NOT BE ACCEPTED. The original and one copy of the application must be submitted to The Program Office of Housing and Community Development as follows: Delivery Services please use: Denise Coletta Neuschwander, Program Coordinator Montgomery County Department of Health and Human Services Program Office: Housing and Community Development 1430 DeKalb Street, 5 th Floor, Norristown, PA
5 USPS Mail Services please use: Denise Coletta Neuschwander, Program Coordinator Montgomery County Department of Health and Human Services Program Office: Housing and Community Development P. O. Box 311 Norristown, PA
6 HEALTHCHOICES BEHAVIORAL HEALTH HOUSING REINVESTMENT (HCBHHR) A. SUMMARY / COVER AND CERTIFICATION 1. Profile: APPLICANT NAME: CEO: Tax ID Number: DUNS Number: PHONE: ADDRESS: CITY: STATE: ZIP: For Profit Corp. Non Profit Contact Name: Phone: Additional Information Requested: Title: Fax: Woman- Owned Joint Venture Minority Owned Other: (explain) 2. Project Site Location(s): Site Address/Location: City: State: PA Zip: Municipality / Locality Brief Project Description: 6
7 3. Project Funding: Total Estimated Project Costs: Estimated Units at Completion: Estimated HCBHHR Assisted Units: Total HCBHHR Funds Requested: Include the dollar amount of all funding sources. How many units will be addressed in this application? Of the units listed above, how many units will be assisted with the HRP funding? Total funds requested from the HRP program. 4. Additional Addresses: Owner Address: Name: Address: City: State: Zip: Address: Phone: Property Address: (If different) Name: Address: City: State: Zip: Phone: If scattered site, please include each address as a separate property. Attach additional site addresses to this form if known at time of application. 5. Certification I hereby certify that all information contained in this document and attachments are true and correct to the best of my knowledge and that the applicant is not a party to any unresolved Fair Housing complaint or litigation. By: Title: (Signature) Name (please print): Date: 7
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