Department of Local Affairs

Division of HousingMay 13, 2015

2 Division of Housing

The Division of Housing (DOH) was created by statute in 1970 to improve the access of all Coloradoans to decent, affordable housing.

DOH has an Advisory Board, Division Director and Staff to manage allocation of federal and state funds, manage Section 8 programs and certify all manufactured housing in Co.

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Division of Housing

Mission and RolesGap FinancingStatewide Housing AuthorityCodes & Manufactured

Housing

4 State Housing Board

A seven member board that advises Governor, and General Assembly on state housing issues

Reviews requests for funding from across the state at monthly board meetings

Division of Housing

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Division of Housing

DOH Budget

2013 2014

HDG (state) $4,200,000 $8,200,000

HDLF (state) $1,214,000 $1,214,000

HOME $4,542,000 $4,638,500

CDBG $2,685,000 $2,730,000

ESG $1,420,000 $1,674,830

NSP PI up to $8 M

CHIF (state) $13.2 $23 M

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Division of Housing

Funding Sources

Funding Affordable Housing in Colorado

7 Funding Sources

FederalCDBG: DPA and SFOO Rehab, Land

Acquisition, or acq/rehab of propertyHOME: CHDO, acq/rehab, new

construction, DPA and SFOO RehabNSP (Neighborhood Stabilization):

Eligibility by neighborhoodESG: Homeless AssistanceCDBG-DR – Federally designated counties

Division of Housing

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Division of Housing

StateHDG - Housing Development Grant, state

general fund

HDLF - Housing Development Loan, state general fund

Funding Sources

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Division of Housing

CHIF

• 30% of fund can convert to long-term debt (housing for people with special needs can exceed 30% cap)

• $3 million max loan

• Preference for projects using CDFI funding

Custodial Funds

$36 Million Revolving Loan Pool

• Low interest, short-term loan pool

10What we fund

Preservation of affordable housingAcquisition and RehabilitationNew Construction Rental and SF HousingDownpayment Assistance and Owner RehabSpecial Needs HousingPermanent Supportive HousingHomeless SheltersTransitional housingTBRAOperating for CHDOs

Division of Housing

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Division of Housing

Application Process

• Pre-application meetings with Development Specialist

• Submit a full application at beginning of any month (development projects only)

• Staff Pro/Con• State Housing Board Presentation• Award Letter• Approximately 90-120 days to funding

12 Calendar

Application Deadlines by type:

July 1st – Owner Occupied Rehab (SFOO)

September 1st – CHDO Operating

November 1st – Down Payment Assistance (DPA)

Accepted monthly - Rental, Special Needs, Ownership Development, Pre-Development

Division of Housing

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Division of Housing

Underwriting Principles

GAP financing Underwriting parameters by unit count Local contribution or support is important Use covenant for long term affordability Monitoring of property (on-going?) Outcome based programs Federal cross cutting requirements may apply

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Division of Housing

Underwriting Criteria

Development and Management capacity Compliance –

HUD regulationsDOH guidelines

Production – # units/year completed Local $ or other soft money grants Pro/Cons & Matrices

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Division of Housing

Underwriting the Gap

<$10,000 / unitSource is determined by use, location

& fund availabilityUnderwriting rangesLong-term financial feasibility

IS THERE A GAP???

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Division of Housing

Revolving Loan Funds

RLF

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Division of Housing

Programs

1. Single Family Owner Occupied (SFOO) Rehabilitation

2. Down Payment Assistance (DPA) Either CDBG or HOME funds Ongoing programs (not one-time

development projects)

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Division of Housing

Programs

o DOH grants funds to agencies for administration & cost of 15-30 homes• Agency loans funds to clients• Clients’ repayments to agency are “Program Income,” reused for new clients

• As revolving loan pool grows, DOH only needs to fund administration

o DOH RLF Guidelines

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Division of Housing

MF Rental

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Division of Housing

DOH reviews all developments to determine financial need based on gap analysis

Provide funds necessary to complete the project while not providing undue enrichment to the owner/developer

Requires review of other funding sources and verification of owner developer assumptions

MF Underwriting

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Division of Housing

DOH staff contacts

CHDOs-Denise Selders Revolving Loan Funds-Ann Watts Flood Recovery Efforts-Alison O’Kelly Homeless Prevention Team- Policy and Legislation-Alison George Rural Preservation-Bill Simpson Asset Management Team-Carrie Kronberg Underwriting-Development Specialists by Region Training Programs-Denise Selders

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Division of Housing

GOAL: HOME

A place where one lives; a residence.

A dwelling place together with the family or social unit that occupies it; a household.

An environment offering security and happiness.