Housing Program Application (HOME & HTF) County of Bucks, Pennsylvania Housing Services

Housing Program Application (HOME & HTF) County of Bucks, Pennsylvania Housing Services Since 1989, Housing Services has been the comprehensive provider of funding for community development, housing and related programs in Bucks County. The funding is received through the U.S. Department of Housing and Urban Development (HUD) via the Home Investment Partnerships (HOME) Program and the County s Housing Trust Program (HTF). Housing Services administers these resources to promote comprehensive, coordinated approaches to addressing housing and community development needs throughout Bucks County. It has been demonstrated that economic development, community development, rental housing development, housing revitalization, homeownership, homelessness assistance and supportive services can work better if linked at the neighborhood and at the community level. In recent years, under the requirement of HUD, Bucks County has developed a Consolidated Plan describing an overall strategy for spending federal, state and local funds. Housing Services will be guided by the Housing Goals, prioritized in its current Five Year Consolidated Plan: Goals: Housing: Priority housing for Bucks County includes rental assistance, rental and owner-occupied rehab, and the production of new affordable housing units for both rental and home ownership. The high cost of housing in many areas throughout Bucks County makes obtaining and sustaining safe, affordable housing a challenge for low-income residents. By far, the most common housing problem experienced by low-income renters and owners is housing cost burden or housing costs that exceed 30% of the household income. Additionally, many housing units affordable to low income residents are aging and require rehabilitation to bring the units up to code and ensure the continued availability of housing that is safe and financially sustainable. Improve the quality of existing housing in Bucks County. The County s goal is to provide an affordable housing stock that is decent, safe, sanitary and free of lead based paint hazards. This goal can be achieved by the acquisition and rehab of existing housing in Bucks County for the purposes of expanding the number of affordable housing units for rent or homeownership throughout the County. New Construction. Promote the expansion of rental housing through the construction of additional units serving very low and low income persons. Expand the opportunities for families to become first time homebuyers through the construction of new housing in Bucks County. Housing for special needs population. Support the development of rental housing for Bucks County s special needs population through the new construction or acquisition and rehab of rental units throughout the County. Community Housing Development Organizations (CHDO). Continue to set aside up to 15 percent of the HOME grant to support the capacity of CHDO organizations in Bucks County. Increase the number of CHDO organizations certified in the County. Fair Housing. Continue to promote public education on the requirements and obligation of the Fair Housing Act. 1

Through this application process, Housing Services is requesting all applicants to examine their approach in meeting the above goals. Housing Services encourages a comprehensive approach and will support activities that integrate all available resources. NOTE: Housing Services has a primary goal to provide safe, affordable housing. For this reason, our program will not consider projects that will incur relocation costs as a result of displacement of persons from housing units. Additionally, all project proposals should be in the final phases of development. New construction projects must include site control documentation, project schedule documentation, and community support letters and have all zoning approvals before submitting an application. All applications must be a HOME eligible activity in order to ensure the County will meet the HUD matching requirements of the HOME program. Applications which cannot demonstrate all of these requirements, may not be considered for funding. For additional information about the HOME Program requirements visit the HUD Exchange at: https://www.hudexchange.info/programs/home/ 2

PART I: Application Instructions Eligible Applicants Applications for funding may be submitted by: - Public agencies - Non-profits - For-profit housing organizations Projects located in the following areas may be considered. Contact Housing Services for more information: Bristol Township Projects located in areas of racial, ethnic or Low-Moderate Income (LMI) concentrations are not a high priority. Review Process Staff will review each funding application as it relates to applicable federal regulations, HOME program eligibility and funding criteria. Applications will be evaluated based on the following criteria: - Application Completeness; - The project must be a HOME and HTF eligible activity; - Rental projects that involve collaborations with advocacy organizations where there is a written affirmative marketing plan that describes outreach measures to members of the protected classes; - Extent to which County and HUD goals and priorities are met; - Agency capacity and experience; - Leveraging of funds/other sources of funds/matching funds; - Subsidy Layering Review; - Past and current performance and amount of County funds received to date; - New Construction - project schedule, site control, community support and zoning approvals; - Activities that affirmatively further fair housing; - Participation in County Housing planning; - Housing project located near public transportation hubs; - Housing project located near employment centers; All funding recipients will be required to execute a commitment letter or a loan agreement with Bucks County within six months of the program year start date which is July 1st, unless extenuating circumstances are documented. The letter or agreement will serve as a contract between the County and the applicant and will define the responsibilities of the respective parties. Project costs incurred will not be reimbursed prior to the execution of the agreement or before the Release of Funds is issued as required under the environmental review process. Common factors for approval Several factors are considered when considering the relative merits of applications. They include: Capacity addresses the extent to which the applicant has the organizational resources necessary to successfully implement the proposed activities in a timely manner. Such resources include a staff of sufficient size, possessing knowledge, and experience in the proposed activities. In cases where the applicant will utilize personnel not considered staff of the organization, the applicant may be asked to demonstrate timely and easy access to qualified experts and/or professionals. In cases where the applicant previously received funding, past experience will be evaluated in terms of the applicant s ability to achieve measurable progress in implementing its most recent grant awards. Needs/Extent of the Problem refers to the extent in which there is an urgent need for funding the proposed activities to address a documented need in the community. Applicants should focus on demonstrating the extent of the problem in the geographical area that will be targeted by the project or program. The need should be relevant to the intent of the proposed activities and documented using sound and reliable data wherever possible. Where firm statistical data is not available for the target area other means of documenting need are acceptable. Wherever possible, applicants are required to link the documentation of need to the needs and data identified in its current Consolidated Plan. 3

Soundness of Approach - addresses the quality and appropriateness of the applicant s proposed program. The exact criteria that will be considered in rating this factor will vary by program. Leveraging Resources refers to the ability of applicants to secure resources beyond those provided by the specific program from which the applicant is seeking funds. Resources leveraged may include funding or in-kind contributions, such as services or equipment. Partners providing the leveraged resources may include governmental entities, public, or private nonprofit organizations, for-profit private organizations, individuals, or other entities willing to partner with applicant. This factor focuses on resources to be allocated to the specific activities being proposed by the applicant. Therefore, applicants should give special consideration to creating partnerships that are appropriate for designing and implementing the proposed activities, rather than simply include as many organizations as possible. Comprehensiveness and Coordination addresses whether or not the strategy proposed by the applicant is comprehensive and coordinated with related activities in the community. The purpose of this factor is to ensure that, wherever possible, applicants do not operate programs in isolation. Instead link the project to related activities and organizations to improve the overall effectiveness of all efforts being undertaken in that community. Site Control, Budget, Project Schedule Approvals, Zoning Clearances and Community Support - addresses the feasibility of the project and determines if the funding will be utilized within the project schedule. The HOME Investment Partnerships Program requires Housing Services to expend funds within a specific time schedule. Applicants should be clear in explaining when key milestones have been met. Application - Specific Instructions Complete all parts of the application, using "N/A" whenever an item is not applicable to the project. Complete all required exhibits and add any optional exhibits, labeling each clearly. All exhibits must be attached in alphabetical order to the back of the application. Incomplete, insufficient, or missing information will cause applications to be eliminated from consideration. Please include a footer on each page of the application with the agency name and project name. Applications may be emailed or submit the original and one copy of the application to Housing Services. CHDO APPLICANTS - must submit a separate application for each activity. Do not combine applications for operating funds with applications for construction financing. Do not submit applications that combine eligible activities. Housing projects must meet certain criteria: income qualification, subsidy limits and rental limits. Please note the required HOME period of affordability will be secured by a recorded mortgage, securing the County s funding. Thank you. 4

HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME) HOUSING TRUST FUND PROGRAM (HTF) BUCKS COUNTY 2018 APPLICATION Project Name: Applicant Organizational Name: Applicant Address: Authorized Organizational Representative (Name and Title): Applicant Phone: Applicant Email: Person to contact in matters concerning this Application: Application Contact Title: Application Contact Phone: Application Contact Email: For Bucks County Housing Services Department use only: Application Received Date/ Time: Final Status: Funded Amount: Not Funded: Page 1 of 21

HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME) HOUSING TRUST FUND PROGRAM BUCKS COUNTY 2018 APPLICATION 1. Project Identification Project Name: Address: City, State, Zip: Parcel # Attach a location map, description of specific streets or natural boundaries bordering site, and available photographs. If multiple sites, provide information for each address. 2. Funding Request HOME Funds Requested: $ HTF Funds Requested: $ Number of HOME Units: Number of HTF Units: Provide a brief summary of the project and how the HOME and / or HTF s will be used: Provide the scope of work for the proposed project: 3. Target Population Income as determined by the HOME Program. Indicate the Number of Households this project will target: At or below 80% of median family income: At or below 60% of median family income: At or below 50% of median family income: At or below 30% of median family income Page 2 of 21

Indicate the occupancy target for this project: Families with minor children: Single adults: Seniors: People with disabilities: Other: 4. HOME and/or HTF Development Fund Budget USES (Provide budget amount for all applicable line items) Acquisition $ Pre-development $ New construction $ Rehabilitation $ Financing Fees $ Developer s Fees $ Services $ Other (please specify) $ TOTAL HOME REQUESTED $ TOTAL HTF REQUESTED $ 5. Project Funding Funding Source Program Amount Applied For Amount Committed Federal government funds $ $ State government funds $ $ Local government funds $ $ Private grants $ $ Private loans $ $ Applicant s funds $ $ Other (please specify) $ $ TOTALS $ $ Attach documentation verifying commitment of other funds, including the terms, any conditions governing the funds, and lender/grantor contract. For funds pending a commitment, please indicate the status of the application and provide a lender/grantor contact. Page 3 of 21

TOTAL SOURCES HOME Funds Requested $ HTF s Requested $ Total Other Funds $ Total Project Cost $ 6. Project Description Structure New Construction Rehabilitation Acquisition Preservation Fill in the number of each type of building in the project: Type # Type # Rowhouse/Townhouse Single family detached Garden apartments Single family semi-detached (twin) Elevator building & number of stories Two family (duplex) Accessory buildings (garages, etc.) Other (please specify) Total number of buildings: Age of existing building: Number of: Rental Units Owner occupied units Other (please specify) Bedrooms: Zero Bedroom Units One Bedroom Units Two Bedroom Units Three Bedroom Units Four Bedroom Units Five Bedroom Units SRO Units TOTAL UNITS Page 4 of 21

MONTHLY RENT OR SALES PRICE FOR: Zero Bedroom Units $ One Bedroom Units $ Two Bedroom Units $ Three Bedroom Units $ Four Bedroom Units $ Five Bedroom Units $ SRO Units $ LONG-TERM AFFORDABILITY Minimum number of years property will be committed to servicing low-income households: Page 5 of 21

7. Annual Operating Expenses (Rental) ADMINISTRATIVE YEAR 1 YEAR 2 YEAR 3 Advertising & Marketing $ $ $ Management Fee: $ $ $ % of Gross annual income Office supplies & expenses $ $ $ Legal $ $ $ Audit $ $ $ Permits, licenses, & misc. taxes $ $ $ Insurance $ $ $ Payroll (including. FICA, medical, etc.) $ $ $ Other: $ $ $ SUBTOTAL $ $ $ MAINTENANCE YEAR 1 YEAR 2 YEAR 3 Exterminating $ $ $ Elevator maintenance $ $ $ Heating & AC maintenance $ $ $ Trash removal $ $ $ Painting & decorating $ $ $ Electrical repairs & supplies $ $ $ Plumbing repairs & supplies $ $ $ Roof repairs $ $ $ Grounds maintenance Contract & supplies $ $ $ Costs associated with lead paint reduction or $ $ $ maintenance Miscellaneous maintenance & supplies $ $ $ Other: $ $ $ SUBTOTAL $ $ $ Page 6 of 21

7. Annual Operating Expenses (Rental) - continued UTILITIES PAID BY OWNER YEAR 1 YEAR 2 YEAR 3 Oil $ $ $ Electric $ $ $ Sewer $ $ $ Water $ $ $ Gas $ $ $ Other: $ $ $ SUBTOTAL $ $ $ Real Estate Taxes $ $ $ Ground Rent $ $ $ Reserve for Replacement $ $ $ Other: $ $ $ TOTAL OPERATING EXPENSE $ $ $ Page 7 of 21

8. Annual Operating Expenses (homeownership) HOMEOWNER COSTS Check all that apply and enter annual costs anticipated for the homeowner: Real Estate Taxes $ Utilities $ Oil $ Gas $ Electric $ Water $ Sewer $ Other $ Insurance $ Homeowners Association Fee $ Other homeowner costs: $ $ $ $ $ $ TOTAL $ Page 8 of 21

9. Projected Income ANNUAL RESIDENTIAL RENTAL REVENUE # of Units Monthly Rent Annual Income Zero Bedroom Units X $ X 12 = $ One Bedroom Units X $ X 12 = $ Two Bedroom Units X $ X 12 = $ Three Bedroom Units X $ X 12 = $ Four Bedroom Units X $ X 12 = $ Five Bedroom Units X $ X 12 = $ SRO Units X $ X 12 = $ GROSS RESIDENTAL INCOME $ VACANCY ALLOWANCE (Vacancy rate at % of gross income) $ OTHER ANTICIPATED REVENUE (List sources) $ $ $ $ $ $ TOTAL REVENUE $ HOME SALES REVENUE # Units Sales Price Total Revenue $ $ $ $ $ $ $ $ Attach a cash flow analysis, including assumptions. Page 9 of 21

10. Project Readiness Current zoning of the site: Attach evidence that the site is property zoned for the proposed use or if a variance or exception is required, evidence that a request has been filed and a hearing date has been scheduled. Have you obtained: YES NO N/A Ownership of property Site control Market study Appraisal Cost estimates Building permits Utility service confirmation Environmental audit Architectural plans/specs Survey Land development plans Construction contract Title insurance Payment/performance bond Builder s risk insurance Worker s compensation / employee liability insurance Comprehensive general liability insurance Management plan Marketing plan Is the construction company bonded? Yes No Are any units currently occupied? Yes No If so, describe the type of displacement that will occur as a result of project implementation and your proposed plan for relocation assistance: Attach copies of all supporting documentation for above responses (i.e. deed, sales agreement, option, outstanding mortgages, preliminary plans and specifications, scope of work, cost estimates, permits, utility confirmation letters, environmental studies, insurance binders, etc. Page 10 of 21

11. Development Costs ACQUISITION COSTS Building acquisition $ per unit $ Land $ per unit $ Off-site improvements $ Demolition Carrying charges $ Relocations costs $ Legal (for acquisition) $ Title and recording (for acquisition) $ Other: $ SUBTOTAL $ PRE-DEVELOPMENT FEES Architect s fee-design $ Architect s fee-supervision $ Legal $ Loan packaging/processing $ Marketing $ Engineering $ Environmental $ Market Study $ Permits Appraisal $ Other: $ SUBTOTAL $ CONSTRUCTION / REHABILITATION COSTS Residential buildings $ Non-residential buildings $ SUBTOTAL $ General requirements % of subtotal $ Builder s general overhead % of subtotal $ Builders profit % of subtotal $ Bond premium or Letter of credit cost $ SUBTOTAL $ Page 11 of 21

FINANCING FEES AND CHARGES Construction interest ( % for months on $ $ estimated initial draw) Real estate taxes (during construction) $ Insurance premium (during construction) $ Mortgage insurance premium (during construction) $ Title recording (non-acquisition) $ Financial contingency $ Lender s legal fee $ Closing fees $ Developer s fee $ Other: $ SUBTOTAL $ TOTAL DEVELOPMENT COST $ DEVELOPMENT COST PER UNIT $ Page 12 of 21

12. Work Schedule: Use actual calendar dates. Be sure to include dates of initial closing, construction start, and substantial completion. Alternative development schedules including this information can be attached as an alternative. Activity Anticipated Completion Dates Page 13 of 21

13. Project need: Provide a detailed assessment of the current housing market in the project area. Describe the demand for the proposed housing project in relation to existing housing and economic conditions in the geographic area. Explain how the proposed number and type of units will address the need. Also include information regarding project area rents/home values, area median family income and area housing and construction trends. Attach all relevant housing data and corroborating information such as appraisal, market study, housing authority waiting list, etc. Page 14 of 21

14. Site Selection / Project Design: Evaluate advantages and disadvantages of the area. Describe the proposed project area, including types and condition of housing, availability of public transportation, location and quality of schools, access to shopping and employment centers; information on crime and other information relevant to the site. Describe any special architectural design features and site planning elements, particularly regarding open space and historical character. Page 15 of 21

15. Marketing / Income Targeting: Describe the population that the project will serve, how the housing units will be marketed to eligible participants, and the affordability of the housing in terms of monthly rent or mortgage costs. Page 16 of 21

16. Self-Sufficiency (optional): Describe training and/or services that will be provided to foster residents self-sufficiency. Explain how access to services will be provided (i.e. referral, case management, etc.), who will provide the services, how often and/or how long these services will be offered, how many people are expected to benefit, and how the services will be funded. Attach any letters of service or funding commitment letters from the providers. Page 17 of 21

17. Community Involvement: Explain how long and in what manner the applicant has served the community in which the project will be located. Also, describe any support the proposed project has received from local elected officials, community groups, and potential project residents. Attach letters or evidence of local support for the project. Page 18 of 21

18. Applicant Ability: Describe the objective, management structure, and staffing of your organization. Explain your organization s past experience as a developer and ability to implement and manage lowincome housing, including projects completed of a similar nature. If a third party will be involved in management or service provision, describe its role. Attach previous year s financial statements and organizational documents including Articles of Incorporation, By-Laws, Board of Directors, Annual Report, and any partnership agreements. Also list the names, addresses and phone numbers of the key members of the development team assembled for the project, (i.e. architect, engineer, processing agent, property manager, attorney, etc.) Page 19 of 21

19. Certification I do hereby certify that the information contained in this application for HOME Investment Partnerships Program and the Housing Trust Fund Program Grant Funds for the FY 2018 program year is complete and accurate to the best of my knowledge. I do also certify that is the information contained herein should change at any time; I will notify the Bucks County Department of Housing Services of such change. I further certify that the governing body of the applicant organization has passed a resolution or has taken similar authorizing action to approve the submission of this application. Adequate documentation to demonstrate this action is attached or will be provided within one month of the submission date of this document. Organization Name (Please Print) Name (Signature) Title: (Please Print) Date: Page 20 of 21

CHECKLIST Check all applicable items that you have included with this application: Section 1, Project Identification Section 5, Project Funding Section 9, Projected Income Section 10, Project Readiness - Zoning Section 10, Project Readiness Supporting Documentation Section 13, Project Need Section 16, Self Sufficiency Section 17, Community Involvement Section 18, Applicant Ability Section 19, Resolution Page 21 of 21