Publicly Owned Housing Program(POHP) Orientation & Overview

Transcription

1 Publicly Owned Housing Program(POHP) Orientation & Overview Anne Heitlinger Housing Program Supervisor Preservation David Schluchter POHP Program Manager May 23, 2018 Minnesota Housing mnhousing.gov

2 Our Mission Housing is the foundation for success, so we collaborate with individuals, communities and partners to create, preserve and finance affordable housing. 5/23/2018 Minnesota Housing mnhousing.gov 2

3 Selected 2017 POHP Applicants 5/23/2018 Minnesota Housing mnhousing.gov 3

4 Congratulations! Now What? 5/23/2018 Minnesota Housing mnhousing.gov 4

5 Agenda Topic Recommended POHP Applicants - Conditions Concept Based Applications Preliminary Numbers Communication Coordination Between All Parties Do I Need an Architect or Engineer? POHP Requirements To Keep in Mind Beginning First Steps/Due Diligence Early to Middle Specifications/Final Drawings/Bidding Late to Middle Construction/Close Out End/Maintenance Final Close Out/Compliance 5/23/2018 Minnesota Housing mnhousing.gov 5

6 Selected 2017 POHP Applicants Selected for further processing Funding conditions submission and approval for all due diligence associated with your specific POHP proposal Project timeline have a plan, plan for the unexpected surprise or two 5/23/2018 Minnesota Housing mnhousing.gov 6

7 POHP Overarching Requirements Rehabilitation of public housing, particularly to address health and life safety, accessibility, energy and water efficiency, critical needs that have an expected useful life of more than 10 years Improvements of a capital nature 5/23/2018 Minnesota Housing mnhousing.gov 7

8 Use of POHP Funds Eligible Uses Rehabilitation of property Third party reports ACM survey/lead based paint survey Professional fees architecture fees/engineering Ineligible Uses Ongoing maintenance Relocation expenses Market studies Operating Expenses Reserves 5/23/2018 Minnesota Housing mnhousing.gov 8

9 Terms and Conditions Specific to Your Funding Your future funding award must comply with all POHP program selection requirements described in the program manual. Your POHP award shall be structured as a zero-interest deferred end or construction loan with a 20 year term. The property will have a 35 year compliance period. 5/23/2018 Minnesota Housing mnhousing.gov 9

10 2017 Concept Based Applications How is the 2017 funding round different than the 2014 funding round? How will the concept based POHP application impact my next steps, timeline and budget? 5/23/2018 Minnesota Housing mnhousing.gov 10

11 Communication Coordination It is not possible to over communicate throughout the entire POHP underwriting, closing, construction and close out processes. Prevent a small problem from becoming a big problem. Communicate with all partners not just those immediately associated with the rehabilitation. 5/23/2018 Minnesota Housing mnhousing.gov 11

12 Do I need an Architect or Engineer? Your assigned Minnesota Housing Architect will make that determination

13 Important HUD Requirements 5 Year Capital Fund Action Plan Davis Bacon Procurement Environmental Review 5/31/2018 Minnesota Housing mnhousing.gov 13

14 How to Find POHP Resources Multifamily Rental Partners Deferred Loans 5/31/2018 Minnesota Housing mnhousing.gov 14

15 First Steps Schedule a 1-on-1 intake meeting (Spring NAHRO) Review the POHP program manual Reference Forms and Resources on the POHP webpage Return Your Next Steps form with appropriate Box.com contacts NOTE: Do you have any specific actions you should talk to your local HUD representative about? 5/23/2018 Minnesota Housing mnhousing.gov 15

16 Other Requirements B3 applicability State pre-design (Hard Construction Costs > $ 1,500,000) Davis Bacon 5/23/2018 Minnesota Housing mnhousing.gov 16

17 Early to Middle Portion of the Project Procurement of an architect / engineer or rehab specialist Initial or follow up call with Katherine Teiken Rebates NEW MONEY Early Due Diligence 1. Submissions prior to signing loan commitment More Due Diligence 2. Submissions prior to scheduling the construction loan closing 5/23/2018 Minnesota Housing mnhousing.gov 17

18 Do not let due diligence overwhelm you

19 Late to Middle Construction Phase / Monitoring / Temporary Housing / Gathering Project Close Out Items Construction phase Communicating with your residents Change orders must be approved by Minnesota Housing Coordinating temporary housing moves (designated hotel units) 5/23/2018 Minnesota Housing mnhousing.gov 19

20 Loan closings go so much better when all parties have adequate time to review due diligence and draft loan documents Anonymous Real Estate Closer 5/31/2018 Minnesota Housing mnhousing.gov 20

21 2017 POHP Loan Processing POHP Program Staff: David Schluchter POHP Program Manager Irene Ruiz-Briseno Loan Processor Anne Heitlinger Housing Program Supervisor / Preservation anne.heitlinger@state.mn.us

22 Thank you! 5/23/2018 Minnesota Housing mnhousing.gov 22