Section 202 811 capital advance programs
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Section 202/811 Capital Advance Programs. Basic Program Requirements. 1. Basic Program Requirements. Purpose of Programs. 2. Basic Program Requirement. To expand the supply of supportive housing for the elderly and for persons with disabilities. 3. Basic Program Requirements.

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Section 202/811 Capital Advance Programs

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Section 202 811 capital advance programs

Section 202/811Capital Advance Programs

Basic Program Requirements

1


Basic program requirements

Basic Program Requirements

Purposeof Programs

2


Basic program requirement

Basic Program Requirement

To expand the supply of supportive housing for the elderly and for persons with disabilities.

3


Basic program requirements1

Basic Program Requirements

What Funding Does HUD

Provide?

4


Fy 2003 appropriations

FY 2003 APPROPRIATIONS

  • Section 202

    • $783,286,000

      • $683,036,000 for new units, amendments and PRAC renewals

      • $50 million for service coordinator & CHSP

5


Fy 2003 appropriations1

FY 2003 APPROPRIATIONS

  • Section 202 (cont’d)

    • $783,286,000

      • $25 million for ALCP

      • $250,000 transferred to Working Capital Fund

      • $25 million for Section 202 Predevelopment Grant


Fy 2003 appropriations2

FY 2003 Appropriations

  • Section 811

    • $250,515,000

      • 196,665,000 for new units, amendments, PRAC and tenant-based assistance renewals

      • 53.6 million for tenant-based assistance

      • $250,000 transferred to Working Capital Fund

6


Section 202 811 allocations

Section 202/811 Allocations

  • 202

  • $473.8 million/5,689 units

    • 811

  • $116.8 million/1,478 units

  • 7


    Hud funding

    HUD Funding

    Types of funds

    • Capital Advance

    • Project Rental Assistance

    Funds reserved by formula

    8


    Capital advance funds

    Capital Advance Funds

    • Covers the cost of developing the housing.

    • Must be repaid if units are not made available to very low income elderly (202 projects) or very low income persons with disabilities (811 projects) for 40 years.

    9


    Capital advance fund reservation formula

    Capital Advance Fund Reservation Formula

    • 202 projects and 811 projects (other than group homes)

      • multiply approp develop cost limit (est based on unit size and elev or non-elev structure) by the no. of units of each size.

    10


    Capital advance fund reservation formula1

    Capital Advance Fund Reservation Formula

    • 202 projects and 811 projects (other than group homes)

      • Ex. 20 unit elev. proj. (5 0BRs and 15 1 BRs)

        • 5 x $43,398 = $216,990

        • 15 x $49,748 = $746,220

          $963,210


    Capital advance fund reservation formula2

    Capital Advance Fund Reservation Formula

    • 202 and 811 projects (other than group homes) (cont’d)

      • Multiply result ($963,210) by the high cost factor for the area in which project will be located.

        • Ex. $963,210 x 156% (HCP) for Any City, USA = $1,502,600 fund reservation (rounded down to nearest $100)

    11


    Capital advance fund reservation formula3

    Capital Advance Fund Reservation Formula

    • 811 group homes by no. of BRs and the development cost limit for the population of project

      • (i.e., physically/developmentally disabled or chronically mentally ill).


    Project rental assistance

    Project Rental Assistance

    • The difference between approved operating expenses and tenant payments (30% of adjusted income)

    • The initial term is 5 years.


    Project rental assistance1

    Project Rental Assistance

    Restricted up to first year of occupancy by formula

    - OCS x no. of revenue producing units or, if GH, # of residents with disabilities


    Project rental assistance2

    Project Rental Assistance

    Operating expenses can include:

    • Service coordinator in 202 projects serving frail elderly

    • Up to $15 per unit per month for services for frail elderly (202)

    16


    Basic program requirements2

    Basic Program Requirements

    Sponsor’s Financial Requirements

    17


    Sponsor s financial requirements

    Sponsor’s Financial Requirements

    Other costs not covered by capital

    advance

    • Minimum capital investment

      • 1/2 of 1% of the Capital Advance up to maximum of $10,000($25,000 if 202 national sponsor)

    Development costs exceeding original reservation

    18


    Basic program requirements3

    Basic Program Requirements

    Who Can Apply?

    19


    Sponsor applicant eligibility type of organization

    Section 202

    Private nonprofit

    Nonprofit Consumer Cooperative

    IRS tax exemption

    Public entity or instrumentality ineligible

    Sponsor (Applicant) Eligibility - Type of Organization

    20


    Section 202 811 capital advance programs

    Sponsor (Applicant) Eligibility - Type of Organization

    • Section 811

    • Nonprofit with IRS tax exemption under 501(c)(3)

    • Public entity eligible if it has

    • 501(c)(3)

    21


    Sponsor eligibility prohibited relationships

    Sponsor Eligibility -Prohibited Relationships

    • Individual Board members & officers cannot:

      • Provide services to sponsor/owner for a fee

      • Hire certain family members as development team members

    22


    Sponsor eligibility prohibited relationships1

    Sponsor Eligibility -Prohibited Relationships

    • Individual Board members & officers also cannot:

      • Have Identity or Conflict of Interest with other development team members, e. g.

        Gen. Contractor Attorney

        Consultant Land Seller

        Architect Management Agent

    23


    Sponsor eligibility prohibited relationships2

    Sponsor Eligibility-Prohibited Relationships

    • Development team members

      • Identities of Interest are prohibited between development team members

        e.g., Seller of Land cannot have Identity of Interest with the General Contractor

    24


    Sponsor eligibility permissible relationship

    Sponsor Eligibility-Permissible Relationship

    • Sponsor or its Nonprofit Affiliate can be:

      • Management Agent

      • Consultant; or

      • Service Provider

        Note: No more than 2 paid officers/ directors from the Sponsor’s/Affiliate’s Board can be on the Owner’s Board & they must be non-voting

    25


    Sponsor eligibility religious bodies

    Sponsor Eligibility-Religious Bodies

    • Religious bodies are eligible

      • Provided they submit required documentation including current IRS ruling

    26


    Sponsor eligibility religious bodies1

    Sponsor Eligibility-Religious Bodies

    • If the project is selected

      • Sponsor will form single asset Owner

      • Owner cannot have any religious purposes


    Owner eligibility type of organization section 202

    Owner Eligibility -Type of OrganizationSection 202

    • Single-purpose private nonprofit with IRS tax exemption under 501(c)(3) or 501(c)(4)

    • Nonprofit Consumer Cooperative

    27


    Owner eligibility type of organization section 202 cont d

    Owner Eligibility -Type of OrganizationSection 202(cont’d)

    • For-profit limited partnership with a nonprofit as sole general partner

    • - Only permitted to develop a

    • mixed-finance project for

    • additional units

    28


    Owner eligibility type of organization section 811

    Owner Eligibility -Type of OrganizationSection 811

    • Single-purpose nonprofit with 501(c)(3) tax exemption

    • For-profit limited partnership with a nonprofit as sole general partner

    • - Only permitted to develop a mixed-

    • finance project for additional units

    29


    Basic program requirements4

    Basic Program Requirements

    Who are Eligible

    Residents?

    30


    Eligible residents

    Section 202

    Very low income

    50% of median income for applicable County & household size

    One family member must be 62 or older

    Eligible Residents

    31


    Eligible residents1

    Section 811

    Very low income

    50% median income for applicable County & household size

    Eligible Residents

    32


    Eligible residents2

    Individual/family where one member is: -18 years or older & has one or more of the following disabilities:Chronic Mental IllnessPhysical DisabilityDevelopmental Disability

    Eligible Residents

    33


    Requests for restricted occupancy section 811

    Requests for Restricted Occupancy (Section 811)

    • Sponsors may request approval to restrict occupancy to:

      • a subcategory of the three main disability categories

    • Submit detailed justification in Exhibit 5(b) of Application

    34


    Basic program requirements5

    Basic Program Requirements

    What Methods of Development Are Eligible?

    35


    Development methods

    Sections 202 and 811

    New Construction

    Rehabilitation

    Acquisition with/without Rehabilitation

    Development Methods

    36


    Basic program requirements6

    Basic Program Requirements

    What types of Structures are Eligible?

    37


    Eligible structure types

    Section 202

    Independent Apartment units

    Eligible Structure Types

    38


    Section 202 811 capital advance programs

    Eligible Structure Types

    • Section 811

    • Independent Living Projects(ILPs) containing individual apartment units

    • Condominium units

    • Group Homes

    39


    Eligible structure types apartment units tenant unit sizes

    Section 202

    Efficiencies & 1 Bedroom only

    Eligible Structure Types- Apartment Units-Tenant Unit Sizes

    40


    Section 202 811 capital advance programs

    Eligible Structure Types- Apartment Units-Tenant Unit Sizes

    • Section 811

    • Any size, however

      • 3 Bedroom & larger units must be occupied by families not unrelated individuals

    41


    Eligible structure types apartment units sec 202 811

    Eligible Structure Types- Apartment Units (Sec. 202 & 811)

    • Maximum number of people per Section 811 ILP is 14 persons with disabilities (an exception may be requested)

    • One unit for resident manager

      • Sec. 202-one or two bedroom unit

      • Sec. 811-ILP: one or two bedroom unit

    42


    Eligible structure types condominium sec 811 only

    Eligible Structure Types- Condominium (Sec. 811 Only)

    • Same as ILP units

    • Cannot purchase separate unit for Resident Manager

    43


    Eligible structure types group home sec 811 only

    Eligible Structure Types-Group Home (Sec. 811 Only)

    • Each Group Home

      • Minimum of 2 & maximum of 6 persons with disabilities

      • Single or double occupancy

        • Residents cannot be required to share a bedroom

    44


    Eligible structure types group home sec 811 only1

    Eligible Structure Types- Group Home (Sec. 811 Only)

    • One bedroom unit(apt.) for resident manager is permitted

    • Two group homes cannot be located next to each other

    45


    Laurel gardens colorado springs

    LAUREL GARDENSColorado Springs


    Front vestibule

    Front Vestibule


    Proud resident with her unit

    Proud Resident With Her Unit


    Basic program requirements7

    Basic Program Requirements

    Ineligible Facilities

    70


    Ineligible facilities

    Ineligible Facilities

    • Nursing homes & medical facilities

    • Sheltered workshops

    • Intermediate Care Facilities

    • Refinancing of Sponsor-owned facilities without rehabilitation

    71


    Basic program requirements8

    Basic Program Requirements

    Ineligible Amenities

    72


    Ineligible amenities

    Ineligible Amenities

    • Jacuzzi, sauna, spa

    • Swimming pool

    • Bowling alley

    • Balcony, deck, dishwasher, compactor, washer & dryer in individual units

    • Atrium

    73


    Basic program requirements9

    Basic Program Requirements

    What Are the Design

    Standards?

    74


    Design standards

    Design Standards

    • HUD Minimum Property Standards

    • Local Codes

    • 202/811 Program Accessibility Requirements utilizing UFAS

    • Section 504 of Rehabilitation Act of 1973 & 24 CFR Part 8

    • Fair Housing Act & 24 CFR Part 100

      • New construction only

    75


    Basic program requirements10

    Basic Program Requirements

    Supportive Services

    76


    Supportive services

    Supportive Services

    • Acceptance of Services cannot be a condition of occupancy.

    • Funding:

      • 202: PRAC up to $15 per unit per month & for svc coordinator in project serving primarily frail elderly.

      • 811: from outside sources.

    77


    Changes applicable to both 202 and 811

    Changes Applicable to both 202 and 811

    • Applications should be mailed by the U.S. Postal Service, but not required

    • Still no hand deliveries

    • Minimum score raised from 70 to 75 points before bonus pts added


    Changes applicable to both 202 and 8111

    Changes Applicable to both 202 and 811

    • Entire application is Appendix A to the 811 NOFA and will also be available in a bound version.


    Changes applicable to both 202 and 8112

    Changes Applicable to Both 202 and 811

    • Form HUD-2530, Previous Participation Certification, must be included in application

      • Sponsors must receive clearance to be selected.

      • It is a curable deficiency.

    • Sponsors may submit application proposing mixed-financing but not mixed-use.


    Changes applicable to both 202 and 8113

    Changes Applicable to Both 202 and 811

    Organization of NOFA

    • Info on # of units/projects that can be applied for is included under Application Unit/Project Limits under Program Requirements instead of under Eligibility

    • Information on Phase I and II is described in “Sites” under Program Requirements


    Changes applicable to both 202 and 8114

    Changes Applicable to Both 202 and 811

    Organization of NOFA

    • “Program Requirements” includes a paragraph indicating that a commercial facility for the benefit of the residents may be located in project but cannot be funded through cap advance or PRAC


    Changes applicable to both 202 and 8115

    Changes Applicable to Both 202 and 811

    Application Requirements

    • Supportive Services Plan is a separate Exhibit – Exhibit 5

    • Form HUD-424B is required which replaces Drug-Free Workplace (Form HUD-50070) and Certification Regarding Debarment and Suspension (Form HUD-2992)


    Changes applicable to both 202 and 8116

    Changes Applicable to Both 202 and 811

    Application Requirements

    • Form HUD-424 now includes information previously in Certification of Payments to Influence Federal Transactions (Form HUD-50071)


    Changes applicable to both 202 and 8117

    Changes Applicable to Both 202 and 811

    Application Requirements

    • If project will involve demolition and/or rehab, Phase I must include Asbestos Report identifying location and condition of asbestos and certification that it will be abated


    Changes applicable to both 202 and 8118

    Changes Applicable to Both 202 and 811

    Application Requirements

    • If project will not involve demolition and/or abatement, Phase I must include certification to same.


    Changes applicable to both 202 and 8119

    Changes Applicable to Both 202 and 811

    Application Requirements

    • A sample letter to be sent to the SHPO is provided as an Attachment 1 to application; signed copy and SHPO response, if any, must be included in your application


    Changes applicable to both 202 and 81110

    Changes Applicable to Both 202 and 811

    Application Requirements

    • Supplemental Guidance to Choosing an Environmentally Safe Site relative to environmental issues such as endangered species is Attachment 3 to application


    Changes applicable to both 202 and 81111

    Changes Applicable to Both 202 and 811

    Application Requirements

    • Project Development Timeline listing major dev. stages/dates to get project to initial closing within 18 months, completion and final closing


    Changes applicable to both 202 and 81112

    Changes Applicable to Both 202 and 811

    Application Requirements

    • Project Development Timeline requirement responds to a change in Rating Factor 5 which is now “Achieving Results and Program Evaluation” in order to support Department’s priorities for this FY.


    Changes applicable to both 202 and 81113

    Changes Applicable to Both 202 and 811

    • Scoring Changes

      • Rating Factor 1

        • Overall experience is raised to 15 pts.

        • Experience in serving minorities and ties to the community, including the minority community, is divided into two criteria, worth 5 pts each.


    Changes applicable to both 202 and 81114

    Changes Applicable to Both 202 and 811

    • Scoring Changes

      • Rating Factor 1

        • Pts deducted for delay in reaching initial closing are increased to 4 with a gradation in pts based on length of delay.

        • 1 pt no longer provided if you are a grassroots organization.


    Changes applicable to both 202 and 81115

    Changes Applicable to Both 202 and 811

    • In your description of how the project will promote energy efficiency, you should include any plans to use Energy Star labeled products and appliances.


    Changes applicable to both 202 and 81116

    Changes Applicable to Both 202 and 811

    Other Scoring Changes

    • Rating Factor 3

      • Application will receive 1 point if you plan to incorporate visitability standards and universal design in development of project.

    • Rating Factor 4 is reduced to 5 pts.


    Changes applicable to both 202 and 81117

    Changes Applicable to Both 202 and 811

    Other Scoring Changes

    • Rating Factor 5

      • Renamed “Achieving Results and Program Evaluation”

      • No longer rated on your involvement in the community’s planning process


    Changes to the section 202 program only

    Changes to the Section 202 Program Only

    • Allocation formula uses 2000 Census data and includes two data elements

      • # of elderly renter households of all sizes age 65 and older paying more than 30% of incomes for gross rent

      • # of elderly households age 60 and older living alone with incomes below poverty level


    Changes to the section 202 program only1

    Changes to the Section 202 Program Only

    • Scoring Changes

      • Rating Factor 3 increased to 45 pts.

      • Rating Factor 5

        • Deleted criterion which provided 2 pts for your coordination efforts with other organizations.


    Changes to the section 811 program only

    Changes to the Section 811 Program Only

    • If you submit an application with site control for an independent living project you can, once again, request an exception to the 14 person project size limit.


    Changes to the section 811 program only1

    Changes to the Section 811 Program Only

    • Added restriction under project size limits for an ILP

      • if you are placing an ILP on the same or an adjacent site already containing housing for persons with disabilities, the total # of persons served (in existing and proposed project combined) cannot exceed 14.


    Changes to the section 811 program only2

    Changes to the Section 811 Program Only

    • In a group home, only a one-bedroom unit can be provided for a resident manager.

    • The allocation formula consists of one data element from the 2000 Census: the # of non-institutionalized persons age 16 to 64 with a disability.


    Changes to the section 811 program only3

    Changes to the Section 811 Program Only

    Scoring Changes

    • Rating Factor 1 is increased to 30 pts

      • Due to the increase to 75 pts for selection eligibility, the two criteria relative to integrated housing have been combined into one and there will be a gradation of up to 5 pts based on whether the Sponsor has experience and/or the project qualifies as integrated housing.


    Changes to the section 811 program only4

    Changes to the Section 811 Program Only

    Scoring Changes

    Under Rating Factor 5 the two criteria with respect to the project implementing practical solutions and providing activities to improve computer access, literacy and employment opportunities have been combined and the new criterion is worth 2 points.


    Changes to the section 811 program only5

    Changes to the Section 811 Program Only

    • Scoring Changes

      • Rating Factor 3, Soundness of Approach, is increased to 40 pts.

        • Site Approvability is increased to 10 pts.

        • Site promoting greater choice for minorities is increased to 10 pts.


    Changes to the section 811 program only6

    Changes to the Section 811 Program Only

    • Scoring Changes

      • Involvement of persons with disabilities in development of application and coordination of application with other organizations have been shifted from Rating Factor 5 to Rating Factor 3.


    Changes to the section 811 program only7

    Changes to the Section 811 Program Only

    • Scoring Changes

      • Rating Factor 3

        • The two criteria for project design have been combined for a total of 4 pts.

      • Rating Factor 5

        • The two rating criteria with respect to the project implementing practical solutions and providing activities to improve computer access, literacy, etc. have been combined for a total of 2 pts.


    Section 202 811 capital advance program

    Section 202/811 Capital Advance Program

    NOFA Process

    88


    Application

    Application

    • Order from:

      (800)HUD-8929

      OR

      (800)HUD-2209 TTY

      Download from WEB www.HUD.gov

    89


    Section 202 811 capital advance program1

    Section 202/811 Capital Advance Program

    FY 2003 NOFA

    90


    Submission deadline

    Submission Deadline

    • June 13, 2003

      • Mail to applicable Multifamily Program Center (see listing in Appendix B to 811 NOFA)

      • Projects in the areas of :

        • Wash., DC mail to HUD Baltimore Ofc

        • Cincinnati, OH mail to HUD Columbus Ofc

        • Sacramento, CA mail to HUD San Fran. Ofc

        • Grand Rapids, MI mail to HUD Detroit Ofc

    91


    Method of submission

    Method of Submission

    • Should mail applications by US Postal Service

    • HUD CANNOT accept hand delivered applications

    92


    Method of submission cont d

    Method of Submission (cont’d)

    • US PostalService Mail

      • Postmarked on or before midnight of deadline &

      • Received in HUD office within 15 days of due date

      • Proof of mailing by deadline required

        • Must have a Certificate of Mailing (USPS Form 3817) as proof of timely mailing

    94


    Section 202 811 capital advance programs

    NOFA

    Staff Roles

    96


    Role of hud staff

    Role of HUD Staff

    • Between SuperNOFA publication & deadline

      • Will conduct workshops

      • Will provide general program guidance

      • Cannot assist in preparation of application

    97


    Role of hud staff1

    Role of HUD Staff

    • Between deadline & release of selections

      • Will request information

        • to clarify

        • to correct curable deficiency

      • Will not request information to improve quality of Exhibits affecting rating

    98


    Role of hud staff2

    Role of HUD Staff

    • Will not consider unsolicited information

    • Will not provide information on status of application

      • Except those that have been rejectedon a technical basis


    Role of sponsor

    Role of Sponsor

    You should ensure representatives are available to respond to requests for information

    100


    Review of applications

    Review of Applications

    • Schedule

      • June 13, 2003 Application Deadline Date

      • HUD Office will send you an Acknowledgment Letter

      • HUD screens each application for completeness and issues Curable Deficiency Letters by June 23, 2003

    101


    Review of applications cont d

    Review of Applications (cont’d)

    • Curable Deficiency letter

      • Missing or incomplete Exhibits that do not affect rating

      • 14 calendar days to respond

      • Will Fax if Fax number provided in Exhibit 1

    102


    Section 202 811 capital advance programs

    List of Curable Deficiencies(Exhibits identified by an asterisk (*) must be dated on or before the application deadline date.)

    Exhibits

    (1) Form 92015-CA or 92016- CA *

    (Application form)

    (2)(a) Articles of Incorporation*

    (2)(b) By-laws*

    (2)(c) IRS tax exemption ruling*

    103


    Curable deficiencies cont d

    Curable Deficiencies (cont’d)

    • (4)(c)(ii) Energy efficiency

    • (4)(d)(i) Evidence of site

      control (202 Only)

    • (4)(d)(ii) Evidence site is free of limitations, restrictions, or reverters

      (202 Only)

    104


    Curable deficiencies cont d1

    Curable Deficiencies (cont’d)

    (4)(d)(vi) Phase I Environmental Site Assessment (202 Only)

    (4)(d)(vii) SHPO Letter

    (4)(d)(viii) Seek Alternate Site (811 Only)

    105


    Curable deficiencies cont d2

    Curable Deficiencies (cont’d)

    8(d) Form HUD-2880, Appl/Recipient

    Disclosure/Update Report

    (e) Form HUD-2991, Cert. of

    Consistency with Consolidated Plan

    107


    Curable deficiencies cont d3

    Curable Deficiencies (cont’d)

    8 (f) Form HUD-92041, Conflict of

    Interest Resolution

    (g) Form HUD-92042, Resolution

    for Commitment to Project*

    (i) Form HUD-2530, Previous

    Participation Certification

    108


    Curable deficiencies cont d4

    Curable Deficiencies (cont’d)

    Section 811 Only

    8 (j) Form HUD-92043,

    Supportive Services

    Certification

    109


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