Department of Housing and Community Development

1. Department of Housing and Community Development California Department of Housing and Community Development Lynn Jacobs - Director Chris Westlake – Deputy Director

2. Department of Housing and Community Development Serna Program Purpose Finance the new construction, rehabilitation or acquisition/rehabilitation of multi-family rental units (prioritizing lower-income family households), or the provision of migrant housing for agricultural workers.

3. Department of Housing and Community Development Serna Program Components • Multifamily Rental Housing • Migrant Farmworker Housing • Single Family Homeownership (Not included in this NOFA)

4. Department of Housing and Community Development Eligible Sponsors • Local Public Entity • Nonprofit Organization • Housing Cooperative • Federally Recognized Indian Tribe • Limited Partnership • Limited Liability Company

5. Department of Housing and Community Development Eligible Uses of Funds • Acquisition • Predevelopment Activities • Site Development • Construction and/or Rehabilitation • Manufactured Housing

6. Department of Housing and Community Development Proposition 1C • $34,000,000 in Serna Rental Multifamily Financing this Round • Applications Accepted Until 5:00 P.M. on August 16, 2010 • Complete, Consistent and in Duplicate

7. Department of Housing and Community Development Award Types and Limits • $3,500,000: Non-9% Tax Credit Projects, New Construction • $2,500,000: Rehabilitation • $1,500,000: MHP Overlay Projects • $1,000,000: 9% Tax Credit Projects

8. Department of Housing and Community Development Site Criteria • Community and Site Factors: • Low Vacancy rates • Strong demand for farmworker housing units • Accessibility to supportive services • Independent, 3rd party, Market Study, which includes identifying all income segments of the target population, as well as justification for larger unit sizes.

9. Department of Housing and Community Development Program Basics • Establishment of Reserve Accounts • Twice the percentage of Units shall be restricted for every percentage of Serna funds, up to 25% of TDC.* • HCD limits Debt Service Coverage Ratio (DSCR) at 1.1-1.2 for Year 1* Migrant

10. Department of Housing and Community Development Grant Basics • Affordability restricted for 55 years • Match requirement • Serna funds cannot contribute toward the Developer Fee • Security: Deed-of-Trust, Promissory Note and Regulatory Agreement on the property and/or lots

11. Department of Housing and Community Development Loan Basics • Affordability restricted for 55 years • Deferred @ 3%, Simple Interest and Residual Receipts • No Department service fees • Senior debt cannot have balloon payment

12. Department of Housing and Community Development

13. Department of Housing and Community Development Borrower Basics • “The Sponsor shall be and remain the Borrower, Managing General Partner of the Borrower, or, if required by other financing sources, directly control and be only one level removed from the general partner.”

14. Department of Housing and Community Development Serna Migrant Housing • Seasonal Housing • Rental Subsidy is strongly suggested • Strong Management capability • Project design and common facilities

15. Department of Housing and Community Development Summary of Updated Program Reguirements (Refer to Section C Program Changes in NOFA) • More Scrutinization of Scope of Work for Rehab Projects • Priority for Migrant Housing • Changes to the Point Scoring • Clarification Concerning USDA loans and Tax Credit Equity Funds • Encouragement of Project-based Recyling Programs

16. Department of Housing and Community Development Program Application • Complete the Universal Application (UA) • Complete the Serna Program Attachments • Application Checklist

17. Department of Housing and Community Development Program Application • New Construction Point-Score System • 15 Total Scoring Areas • 55.5 Total Possible Points • Five Areas are Weighted • Two Areas for Negative Points • Proposals are vying for a minimum 80% score or 44 points • Self-Scoring will be required

18. Department of Housing and Community Development Program Application • Rehabilitation Point-Score System • 15 Total Scoring Areas • 57 Total Possible Points • Six Areas are Weighted • Two Areas for Negative Points • Proposals are vying for a approximately 80% score or 43 points • Self-Scoring will be required

19. Department of Housing and Community Development Program Application • Scoring Areas: • Per Unit Project Costs • Serna Loan Amount Per Serna Unit • Site Control • Commitment of Other Funds • Environmental Issues

20. Department of Housing and Community Development Program Application • Scoring Areas: • Local Zoning and Project Approvals • Local Jurisdiction Support and Involvement • Management Experience • Percentage of Restricted FW Units • Services Provided for Agricultural Worker Population • Proximity to Community Resources

21. Department of Housing and Community Development Program Application • Scoring Areas: • Alternative Energy or Green Technology • Market Study Findings and Housing Element Information • Percentage of Area Agricultural Workers • Past Performance and Compliance (Negative Points) • Previous Department awarded Projects (Negative Points)

22. Department of Housing and Community Development Contact Information • Ben Dudek, 916/445-6508 • Fred Rogers, 916/327-2881 • Heriberto Rosales, 916/327-6659 • Marc Florio, 916/322-2053 • Coral Gaines, 916/322-1488 • Peter Sigmann, 916/324-6751