IHCDAHOME 2018 Supplemental Round Policy WebinarMarch 2018

Real Estate Production StaffMatt Rayburn

• Deputy Executive Director & Chief Real Estate Development OfficerSamantha Spergel

• Director of Real Estate ProductionChris Nevels

• HOME and CDGB ManagerBecky Richardson

• Funds Management & Reporting SpecialistDave Pugh

• Lead Grant ManagerKatie Hall

• Real Estate Coordinator

Regional AnalystsDani Miller – Northern IndianaEvan Thie – Central IndianaRyan Hamlett – Southern Indiana

2018 HOME Supplemental Round

This webinar is meant to provide a brief overview of the 2018 HOME Supplemental Round.

All applicants must also read and follow the 2018 HOME Round Policy and 2017 CDBG & HOME Program Manual.

‐ 2018 HOME Supplemental Round Policy• http://www.in.gov/myihcda/home.htm

‐ 2017 CHDO Policy• http://www.in.gov/myihcda/chdo.htm

‐ CDBG & HOME Program Manual • http://www.in.gov/myihcda/2490.htm

Use these, not the Draft Action Plans

2018 HOME Supplemental Round Timeline

Date TimelineFebruary 19th, 2018 HOME Supplemental Round

final application and policy posted on IHCDA website.Application round begins.

March 7th & 21st, 2018 HOME Policy webinarMarch 14th, 2018 HOME Application webinarApril 23rd, 2018 at 5pm EST

HOME applications due

May 24th, 2018 HOME awards announced

Notable HOME Policy Updates

Minimum Score Reduced• Minimum score for funding was reduced from 75 points to 68

points

Updated HOME Program Requirements• Addressing lead-based paint hazards (access our Lead Training

Webinar here• Broadband internet infrastructure

‐ More information available here.• Tenant Selection Plan requirements

‐ Only required of funded applicants

Project Characteristics• Modification to points for Unique Features and Bonus Points• Unit plans with square footage and site plans now required as a

part of threshold‐ This is not to impose additional development costs on your end, but we

need this info to do our cost allocation analysis

Additional Funding Available

Applicants may apply for Development Fund

• Each applicant must provide documentation and explanation on alternative sources of funding if the Development Fund is denied or funding is unavailable

• Applicants must also submit the Development Fund tab, not the separate Development Fund application.

• There is no guarantee Development Fund will be available – each applicant anticipating Development Fund must also have a alternate funding plan if it is not available.

Maximum Request Amounts & Subsidy Limitations

Bedroom Size

Per Unit Subsidy Limit

0 $66,000

1 $75,000

2 $92,000

3 $117,000

4+ $128,000

Maximum request for rental: $1,000,000

• Per unit subsidy limitations are below:

Bedroom Size

Per Unit Subsidy Limit

0 $69,000

1 $79,000

2 $96,000

3 $122,000

4+ $134,000

For units designated 50% AMI or higher For units designated 40% AMI or lower

Affordability Period

Amount of HOME subsidy per unit Affordability Period

Under $15,000 5 Years

$15,000 - $40,000 10 Years

Over $40,000 –Or any rehabilitation/refinance combination activity

15 Years

New Construction or acquisition of newly constructed transitional, permanent supportive, or rental housing

20 Years

HOME Eligible Activities

Rental Specific Eligible Activities

• Rehabilitation, new construction, acquisition/rehabilitation or acquisition/new construction of rental housing in the form of:

‐ Traditional Apartments‐ Single Room Occupancy Units‐ Single Family Housing*

*Please refer to the HOME Policy for a list of ineligible activities and requirements for SRO projects

Eligible Applicants For HOME

Eligible applicants include:

• Cities, towns, or counties that are located within Indiana but outside of participating jurisdictions (See HOME Policy for a list of participating jurisdictions),

• Joint Venture Partnerships,

• 501(c)3 and 501(c)4 Not-for Profit Organizations and PHAs, and

• Community Housing Development Organizations (CHDOs).

CHDO Benefits

• Minimum of 15% of yearly allocation of HOME must go to CHDOs

• Seed Money/Pre-Development Loans available to CHDOs exclusively.

• CHDO Operating Supplement – IHCDA policy to provide additional operating supplement funding for CHDOs in second year of construction of an eligible HOME project.

• Certified CHDOs will have application fee refunded.

• Certified CHDOs receive three points.

CHDO Roles

Owner‐ CHDO owns the property fee simple throughout the affordability periodHire developer for the project

Developer ‐ CHDO is sole developer AND owns the property fee simple throughout

the affordability periodSponsored

‐ Affiliate developed• Affiliate (CHDO’s wholly owned subsidiary) must solely own the property• Affiliate must be in sole charge of the development process

‐ Affiliate owned• Affiliate must solely own the property• Either acquire housing or hire a PM/developer to be in charge of the

development process‐ Turnkey

• Property transferred to another nonprofit (identified prior to CHDO commitment) upon completion

• If identified nonprofit does not assume ownership, CHDO must maintain ownership throughout the affordability period.

CHDO (cont.)

• CHDOs are required to certify when applying for any HOME funds.

• IHCDA will refund application fees to certified CHDOs.

• CHDOs awarded rental projects may be eligible for $25,000 in additional operating supplement in year two of the project if they meet the following criteria:

‐ Have begun construction within the first 12 months of the executed agreement

‐ Have drawn a minimum of 25% of the rental/homebuyer award‐ Have drawn 100% of the original CHDO Operating Supplement‐ CHDO Operating Supplement cannot exceed $50,000 within one

fiscal year

CHDO (cont.)

• More information can be found on the benefits of and requirements for being an IHCDA CHDO can be found on our CHDO webpage at http://www.in.gov/myihcda/chdo.htm including our CHDO Webinar which provides further explanation of:

‐ Board Member Composition‐ Capacity Requirements‐ CHDO Roles‐ Etc.

HOME Program Requirements

• All other development funding must be committed prior to submitting an application for HOME funding.

• This is a HUD regulation from the 2013 HOME Final Rule.

• Applicants must demonstrate adequate market demand for the proposed development.• Provide compelling and current market data to ensure demand

• Before an Applicant can apply for a new HOME award, any other HOME awards that the applicant has received from IHCDA must be drawn down by a minimum of 25% of the award’s total funding amount. Applicants funded during the 2017 HOME Round, or awarded within six months of the starting date of the current round (based on the date of the last signature on the applicant’s award agreement) are exempt from this requirement.

• Match requirement is 25% of the HOME request amount minus administration and environmental review costs.

• Labor, property, or funds donated by the applicant or principal investor is ineligible for Match• All match must be committed by the time that closeout documentation is submitted.

HOME Program Requirements (cont.)

• Environmental Review Record (ERR) and Section 106 Review due upon application

• Must include a hard copy with original signatures upon application submission

• Davis Bacon requirements will apply for developments containing 12 or more assisted units

• Must meet applicable HUD approved rent and income limits

• RED Notice 17-34: ‐ 2017 Federal Programs HTF Income and Rent Limits

HOME Program Requirements (cont.)

• Rental housing must assist households at or below 60% AMI.

• Projects with five or more HOME-assisted units must set aside 20% of units for households below 50% AMI.

• Capital Needs Assessments (CNA) are required for rehab activities with 26 or more total units.

• For ongoing rental compliance, tenant events for rental developments must be entered at https://ihcdaonline.com.

• Register vacancies for assisted housing on the affordable housing database at http://indianahousingnow.org.

Application ProcessTechnical assistance and site visits are available but not required. Please contact your regional analyst as early as possible if you would like to request assistance.

Additionally, IHCDA is hosting a second HOME webinar that provides guidance on how to assemble and submit an application on MARCH 14th, 2018 at 10am EST.

The goal of this second webinar is to:

• Provide new applicants and seasoned pros with a better understanding of why we ask for the specific items we do

• Give tips on how to organize an application package that minimizes mistakes and maximizes point opportunities

• Highlight examples of best practices of maps and photos and how to best create some the graphics we need

Application ProcessThere is a $250 fee per application. If the applicant applies, and is certified a CHDO, the check will be refunded.

• All applications will be reviewed for:• Completeness • Threshold • Scoring

• Rental applications must score 68 points to be considered for funding.

• Unfunded applications will not roll over into subsequent HOME application rounds.

Submitting An Application

• Applicants must submit the following items to IHCDA’s Real Estate Department Coordinator:

• Via Syncplicity site:‐ One completed copy of the final application forms‐ All required supporting documents

• Via hard copy:‐ One completed copy of the final application with original

signatures‐ One copy of the completed Environmental Review with

original signatures‐ Please do NOT submit supporting documentation via hard

copy‐ Include all digital documents on a flash drive to be

included with the application hard copy

Syncplicity

If you need to set up Syncplicity access to submit an application, please email Katie at KaHall@ihcda.IN.gov

• Include Contact(s)• Project Location• Project Name

Technical IssuesApplicants that encounter issues with the application forms, supporting documentation, or submitting the application via Syncplicity should inform their regional analyst ASAP so that issues can be resolved prior to the application deadline.

Submitting An Application

• All required application items are due no later than 5:00 p.m. Eastern time on Monday, April 23rd, 2018.

• Applications received after the deadline will be returned to the applicant via certified mail. Faxed applications will not be accepted.

The hard copy of the final application forms should be sent to:

Indiana Housing and Community Development Authority ATTN: Real Estate Department Coordinator

RE: HOME Application 30 South Meridian Street, Suite 1000

Indianapolis, IN 46204

Public Hearing

• IHCDA is currently accepting public comments for the 2018 HOME Rental and Homebuyer Draft plans, currently available on the IHCDA website here: http://www.in.gov/myihcda/home.htm.

• Public Hearings will be held next week. Please see RED Notice 18-07 for a list of public hearing times and locations.

Application Webinar Reminder

For those interested, please make sure to attend the aforementioned application webinar to be held March 14th at 10am EST.

Thank you for attending the 2018 HOME supplemental round policy webinar!

Are there any questions?