2016-2017 QAP UPDATE Indiana Housing Conference August 28, 2015

1. 2016-2017 QAP UPDATEIndiana Housing ConferenceAugust 28, 2015

2. PRESENTATION OVERVIEW Housing Priorities Set-Aside Categories Threshold Requirements HOME & Development Fund Evaluation Factors Miscellaneous Key Dates Tips & Reminders Questions & Answers

3. Housing priorities Housing for Vulnerable Populations Enhance Self-Sufficiency in Existing Programs Promote Place-Based Initiatives IHCDA Vision for Indiana An Indiana with a sustainable quality of life for all Hoosiers in the community of their choice. IHCDA Mission To provide housing opportunities, promote self-sufficiency, and strengthen communities. To Accomplish This We Will Promote place-based initiatives that will allow Hoosiers opportunities to improve their quality of life. Create and preserve housing for Indiana's most vulnerable population. Enhance self-sufficiency initiatives in existing programs. Promote a value-driven culture of continuous improvement.

4. Set-aside categories Elderly – 15% to 10% Preservation – 10% to 15% Housing First • Minimum units • Agreement among all parties • Special threshold considerations General Set-Aside – announced each year (announcement for 2016 after today’s Awards Luncheon)

5. Threshold requirements Form C and Evidence of Receipt (Form I) Full Phase I Environmental Assessment – due with initial application Development Site Information – electronic architectural plans only Capital Needs Assessment/Structural Conditions Report – due 30 days prior to submission of initial application Underwriting Guidelines • Minimum operating expenses at $3,500 per unit per year • Mixed use projects & income Threshold Requirements for Supportive Housing • Complete Indiana Supportive Housing Institute • MOU with CSH • MOU with supportive service providers • Identify subsidy sources (Form O for IHCDA)

6. Threshold requirements – con’t Developer Fee • Limits increased • Up to $2,500,000 for bond deals Architect Fee – increased from 3% to 4% Minimum Development Standards • Vinyl thickness reduced from .046” to .044” • Consistent scope of work Universal Design Features – 4 from each column Visitability Mandate • Single family homes, duplexes, triplexes, or townhomes

7. Home & development fund HOME • Loan term up to 2 years for construction and up to 30 years for permanent financing • Applicants or affiliated entities with open HOME awards must show progress before closing on HOME loan Development Fund • 100 year flood plain • Interest rate starting at 3% • 50 units or more: at least 10 units or 50% of assisted (whichever is greater) to be designated at or below 50% AMI for both income and rents

8. evaluation factors Score • Minimum score increased from 110 to 120 • Minimum score for 4%/bond applications determined on a case-by-case basis Universal Design Features – points for exceeding threshold requirements Vacant Structure • 2 bonus points for structure affected by disaster • Cannot also qualify for infill Infill New Construction • 2 bonus points for site affected by disaster • Cannot also qualify for vacant structure, preservation of existing affordable housing, and adaptive reuse

9. Evaluation factors – con’t Promotes Neighborhood Stabilization - Greyfield • Primary use was non-residential • Engineer or architect assessment of site including measure of paved areas Federally Assisted Revitalization Award • HUD designated Promise Zone • Blight Elimination Program (BEP) Offsite Improvements • Improvements must be outside footprint of the building and outside development parcel • Improvements within public right of way must demonstrate approval from local jurisdiction Tax Credit Per Unit & Tax Credit Per Bedroom Energy Efficiency – Air Sealing, High Insulation, Water Conservation

10. Evaluation factors – con’t Desirable Sites • Fresh produce • Walk Score • Opportunity Index • Unemployment rate below the State average • County ranked 1-23 on Overall Rankings of Healthy Outcomes Lease Purchase • Up to 2 bonus points for larger bedrooms (50% 3 BR or larger; 75% 3 BR or larger) Integrated Supportive Housing • No more than 25%, but no less than 7 • Participation in the Indiana Supportive Housing Institute Community Participation Technical Correction – Bonus Points

11. Miscellaneous Fees • RHTC Application Fee: $2,000 • HOME & Development Fund: $500 each Change of Ownership • Pre 8609 – approval required • Post 8609 – notification required • Post 8609 & IHCDA Financing – approval required QAP, Forms, Schedules, Appendices Frequently Asked Questions (FAQ) http://www.in.gov/myihcda/rhtc.htm

12. Key dates • Other Notes: • Bond Round – open application round (2016-2017 QAP) • Housing First – applications submitted in November • 2016 General Set-Aside – announced this afternoon and RED notice to be released

13. Tips & reminders Threshold • Review Schedule G (attachments in correct tabs?) • Form C –certified mail or Form I • Supporting documentation dated within the last 6 months • LOI’s, affidavits, financing letters – double-check project name and details • Accessible units – exact location on site plan and/or floor plan • Explain any items that are outside of the underwriting guidelines • Selecting the NFP set-aside – requirements remain in place even if funded under a different set-aside • Basis Boost – capped at 20% • Underwrite at 9% • Underwriting requirements when mix of new construction & rehab Evaluation Factors • Maps with ¼ mile and ½ mile radius • Form C must pass threshold to obtain points from City/Town • Tenant Investment Plan – include all required attachments Other

14. 2016-2017 QAPquestions & answersThank youfor additional information, please contact:matt rayburn – chief real estate development officerDarin edwards– director of real estate lendingalan Rakowski – rental housing tax credit manager