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California Department of Housing and Community Development

Emergency Housing and Assistance Program Capital Development (EHAPCD) NOFA & Application Workshop 2010-2011. California Department of Housing and Community Development Chris Westlake – Deputy Director for Financial Assistance. Welcome and Thank You for Attending!. Meet EHAPCD staff

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California Department of Housing and Community Development

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  1. Emergency Housing and Assistance Program Capital Development (EHAPCD) NOFA & Application Workshop 2010-2011 California Department of Housing and Community Development Chris Westlake – Deputy Director for Financial Assistance

  2. Welcome and Thank You for Attending! • Meet EHAPCD staff • House Keeping • Restroom Locations • Cell phone courtesy • Technical Assistance is Available

  3. EHAPCD Webpage • Webpage Enhancements in process; check often for updated material • www.hcd.ca.gov/fa/ehap/ehap-capdev.html

  4. $40,000,000 • Urban $32,000,000 (80%) • Non Urban $8,000,000 (20%) ___________________________________ • No EHAPCD funds if prior EHAPCD loan or loan commitment for same activity and/or scope of work.

  5. EHAPCD HOT TOPICS • Identifying all Funding Sources • Appraisal Requirements • Timing of Activity vs. Reimbursement of EHAPCD Funds • Communication with EHAPCD staff • Incomplete Applications are subject to disqualification

  6. Applicant requests for EHAPCD funds must be deemed an efficient and effective use for qualified activities

  7. Eligibility & Use of Funds • EHAPCD funds are forgivable, deferred loans to eligible local government agencies or non profit corporations that house homeless persons • Multiple applications are allowed however the total requested amount, per applicant, cannot exceed $1,000,000 per county

  8. Eligibility & Use of Funds(cont.) • Acquisition – NO SUPPLANTING • Existing structure • Existing structure with rehabilitation • Modular structures/units • Site Acquisition • Land purchase with new construction of a qualified homeless housing facility

  9. Eligibility & Use of Funds(cont.) • Rehabilitation • Preserve/create a qualified homeless housing facility; costs related to demolition, lead-based paint & asbestos reports and remediation of hazards pursuant to the Health & Safety Code, Sections 17920 - 17928 • ADA accessibility improvements may be eligible

  10. Eligibility & Use of Funds(cont.) • New Construction (including) • Project related planning and engineering fees • Environmental reports & remediation • Application attachments #11 & #12 should match • Staff Administrative Cost • Not to exceed 5% of EHAPCD Loan • Term of the Standard Agreement only

  11. Administrative Costs (cont.) • Applicant Employees & overhead cost associated with the project - ok • Back-up Documentation is required • Staff Hours – (Independent Contractors are not considered applicant employees/not administrative cost) • Faxing • Fed Ex, UPS, etc. • Office costs • Travel to Workshop – only after an EHAPCD Standard Agreement has been executed

  12. Eligibility & Use of Funds(cont.) • Other eligible costs may include documented costs for fees of a project specific Development Consultant; but no prior reimbursement allowed • ALL COSTS FUNDED BY EHAPCD MUST OCCUR ON OR AFTER THE EXECUTION DATE OF THE STANDARD AGREEMENT!

  13. Ineligible Use of Funds • Equipment not under permit or not built in • Personal vs. real property; beds, household refrigerators, stoves • Other ineligible costs include: • Recreational equipment • Landscaping • Walls and Fences • Parking lots • Off-Site improvements

  14. Site Control a Mustwith Application submission or Application considered Ineligible • Fee Title • Legally enforceable Purchase Agreement • Lease Option to Purchase • Legally enforceable Lease or Option to Lease • Sub-leasehold interest in property is not acceptable

  15. Local Zoning Approval • Evidence of Permissive Zoning from Local Planning Department; • Conditional Use Permit (CUP); and/or • Current Zoning request status from Local Planning Department

  16. Loan Terms & Conditions • Acquisition Only……………………10 years from date Regulatory Agreement is recorded FOR ALL THE FOLLOWING ACTIVITIES: *Loan term starts the date that either the Certificate of Occupancy is issued or the date the Notice of Completion is recorded.

  17. Loan Terms & Conditions(cont.) • *New Construction or Acquisition with Rehabilitation………………………10 years • *Substantial Rehabilitation (Loans $25,000 or more)…………………….......7 years • *Minor Rehabilitation(less than $25,000)……5 years • **NEW - Proposed Regulation Change** • Commencement & Completion term

  18. Rent Requirements • Two options for maximum rents to be charged – may not exceed the highest of the two: • 30% adjusted family income, as defined in the HUD guidelines • 10% of the family’s monthly gross income

  19. Relocation Requirements(CANNOT BE PAID WITH EHAPCD FUNDS) • Uniform Relocation Act (URA) of 1970 • www.HUD.gov/offices/cpd/affordable housing/training/web/relocation/overview.cfm • (Handbook 1378) • Initiations Of Negotiations (ION) = Trigger • General Information Notice (GIN) • “Eligibility” for relocation benefits are triggered by the ION and are paid when a tenant must permanently vacate their unit, or when the rent is increased above 30% of their gross monthly income

  20. Relocation Requirements(cont.)PLAN + BUDGET = SAVE $ • Plan, research comparables, moving expenses & budget the costs on the Sources & Uses form (Attachment #12) • 42 months of Relocation assistance is required • (calculation is based on current rent and projected rent from comparable units that have been located and presented to tenant)

  21. Relocation COMPARABLE UNITS • Decent, Safe and Sanitary • Units must be currently available – for each tenant • Same square footage or more • Within approximate same distance from schools, work, etc. • Must be “comparable”

  22. Break

  23. WHAT YOU CAN DO • Prepare all required notices on time • GIN, Notice of Eligibility, 90 & 30 day, & Move In notices • Communicate with tenants & landlords • Keep accurate records of all tenant communications, signed notices, work numbers & emergency numbers • Call EHAPCD representative or a relocation specialist when needed

  24. Use EHAPCD funds for Americans with Disabilities • Acceptable evidence of ADA compliance is required – • check with local Planning Department • If remedial work is needed – include the cost on Attachment #12 of the EHAPCD Application

  25. Property Inspection Requirements • Purchasing and/or Rehabilitating an existing structure • Report performed by a qualified licensed professional • Report shall include current condition of the improvements and a detailed summary of the repairs needed to establish and/or maintain satisfactory condition

  26. Appraisal Requirements • Report MUST be dated within 12 months prior to close of the EHAPCD loan • Unrestricted, Market Value • Unrestricted “As-Is” & “As-Completed” Market Value • “As-Is” & “As-Completed” Broker’s Price Opinion (with 3 comparables) • 3 Comparables for Leasehold Title • Market Value = highest & best use + any senior debt

  27. The Department of Housing and Community Development expects to be in 1st lien position

  28. Funding Commitments • Must have firm commitments (No proof - No loan doc’s) • Must have copy of other Lender's loan terms (i.e. Promissory Note(s), Deed(s) of Trust, Regulatory Agreement(s)) • Funding Position of all Lenders

  29. Environmental Requirements • CEQA (California Environmental Quality Act) • Phase I Report – must be less than 5 years old at EHAPCD Application submission • Asbestos & Lead-Based Paint – required for projects built prior to 1978 • Licensed Professionals must be used • California Historic Building Code (CHBC)

  30. Preliminary Title Report • Must be current at EHAPCD Application submission • Additional reports as needed • Address must match address on Application • Make sure correct name(s) are listed as legal owners • Property profile is not permissible

  31. Insurance Requirements • HCD must be named as Loss Payee • Include EHAPCD Loan number & project address for all applicable policies • Amount of coverage = replacement cost

  32. New Construction/Rehabilitation Requirements • Competitive Bidding Process • *NEW* EHAPCD Bid Procedure Guidelines • “RESPONSIBLE BIDDER” • State License & Bonds • AIA101 – 2007 & Addendum • State Prevailing Wage – Yes or No?

  33. Application Packaging & Submittal • 1 Original & 1 Copy per project site • Submit required documentation and Attachments for eligibility and maximum points • THURSDAY, JULY 15, 2010 5:00 P.M. Pacific Daylight Savings Time • No faxed or emailed applications accepted! Receipt of applications is not based on postmark date. • Must be in HCD by due date 7/15/2010

  34. Rating & Ranking Criteriasee pages 16-18 in the NOFA • 1,000 Points maximum • Applicant Capability • Impact & Effectiveness • Cost Efficiency • DLB or Statewide Priority

  35. Loan & Grant Committee • Recommended for approval • Exempt Applications • Criteria #1 • Criteria #2 • “Tabled or Denied” Applications • Director’s final approval = Award Letter

  36. Standard Agreement & Disbursement Procedures • Proposed changes to the project are subject to HCD review & approval • Print, Sign & return 5 copies (STD213) • Loan Closing Checklist • Requests for Funds • 10% Retention & ALTA Rewrite Policy

  37. Loan Documents • Loan Documents • Regulatory Agreement • Deed of Trust • Promissory Note • Development Agreement • Corporate Certificate • Subordination Agreement • Request for Notice of Default

  38. Semi Annual Report • Reporting begins 6 months after the Standard Agreement execution date • Required prior to funding, if applicable

  39. Close Out Reports • Submit with FINAL Funds Request All 4 Semi – Annual Reports should have been submitted by this time

  40. Annual Reports Standard Agreement Expiration Anniversary VS. January - December

  41. THANK YOU AGAIN FOR ATTENDINGARE THERE ANY QUESTIONS?

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