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Community HOME Investment Program (CHIP). 2011 Applicants’ Workshop. Eligible CHIP Activities. Home Buyer Down Payment Assistance Down Payment, Closing Cost, Pre-Paid Items & Principal Reduction Homeowner Rehabilitation Rehabilitation & Reconstruction of Owner-Occupied Housing.

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community home investment program chip

Community HOME Investment Program(CHIP)

2011 Applicants’ Workshop

eligible chip activities
Eligible CHIP Activities

Home Buyer Down Payment Assistance

  • Down Payment, Closing Cost, Pre-Paid Items & Principal Reduction

Homeowner Rehabilitation

  • Rehabilitation & Reconstruction of Owner-Occupied Housing

How to Apply for CHIP $$

ineligible activities
Ineligible Activities
  • Project Reserve Accounts
  • Tenant & Project Based Rental Assistance
  • Match for other federal programs, except McKinney Act funds
  • Operations or modernization of public housing
  • Pre-payment of low income mortgages under 24 CFR Part 248
  • Double-dipping

How to Apply for CHIP $$

ineligible activities continued
Ineligible Activities (continued)
  • Reimbursement of State Recipient Owned Property
  • For property used for non-CHIP purpose
  • For property in its inventory
  • Combination funding with activities funded under Georgia Dream Second Mortgage or Single-Family Development Project

How to Apply for CHIP $$

ineligible activities continued5
Ineligible Activities (continued)
  • New Construction of Rental Housing
  • Lease Purchase
  • New Construction or Rehabilitation for Sale to Households for Purpose of Homeowner-ship

How to Apply for CHIP $$

eligibility
Eligibility
  • Local Governments (State Recipient)
    • Local governments not designated by HUD as Participating Jurisdictions (PJ’s) under the HOME program
  • Non Profit Organizations (Sub-recipient)
  • Public Housing Authorities (Sub-recipient)

All entities must meet established eligibility criteria.

How to Apply for CHIP $$

ineligible home pj s
Ineligible HOME PJ’s
  • Albany, Atlanta, Macon, Savannah
  • Roswell, Marietta, Canton
  • Athens/Clarke County Consolidated Government
  • Augusta/Richmond County Consolidated Government
  • Columbus/Muscogee County Consolidated Government
  • Cherokee, Clayton, Cobb, DeKalb, Fulton, and Gwinnett Counties

How to Apply for CHIP $$

eligible local government applicants
Eligible Local Government Applicants
  • Must have administered directly or entered into a contract with an Administrator who has successfully closed out one CHIP or CDBG grant in which Homeowner Rehabilitation or Down Payment Assistance was an activity.
  • Any past Applicant with a grant older than 3 years (received in the 2006 or prior Grant Year) on June 30, 2010 and with unexpended funds (both administrative and project funds) is ineligible.

How to Apply for CHIP $$

eligible non profits entities public housing authorities dpa
Eligible Non-Profits Entities & Public Housing Authorities - DPA
  • All nonprofit organization must submit a copy of the 501 (c)(3) or 501(c)(4) exemption determination from the Internal Revenue Service behind the CHIP-1 Form

How to Apply for CHIP $$

eligible non profits entities public housing authorities dpa10
Eligible Non-Profits Entities & Public Housing Authorities - DPA

Must either:

  • Have administered directly or entered into a contract with an Experienced Administrator for Down Payment Assistance Activities.
    • The consulting contract must have provisions to train the staff of the non-profit or public housing authority on the administration of the CHIP funded activities.

OR

How to Apply for CHIP $$

eligible non profits entities public housing authorities dpa11
Eligible Non-Profits Entities & Public Housing Authorities - DPA

Must

  • Have 3 years experience administering a DPA program and have provided DPA to at least 50% of the number of home buyer proposed in Application.

How to Apply for CHIP $$

eligible non profits entities public housing authorities h o rehab
Eligible Non-Profits Entities & Public Housing Authorities – H/O Rehab

Must either:

  • Have completed since April 1, 2006, the new construction or rehabilitation of at least 50% of the number of units proposed under the Application.

Or

How to Apply for CHIP $$

eligible non profits entities public housing authorities h o rehab13
Eligible Non-Profits Entities & Public Housing Authorities – H/O Rehab

Or

  • Have entered into a contract with an Experienced Administrator for Homeowner Rehabilitation Activities.
    • Consulting contract must have provisions to train the staff of the non-profit or public housing authority on the administration of the CHIP funded activities.

How to Apply for CHIP $$

experience requirements for administrators dpa
Experience Requirements for Administrators – DPA
  • Administrator must have successfully closed out one CHIP grant in which Down Payment Assistance was an activity.

OR

  • Have experience on staff of at least one individual who has at least 3 years direct work experience at a state or local PJ or a Entitlement community and who will be the primary lead contact on the grant.

OR …..

How to Apply for CHIP $$

experience requirements for administrators dpa15
Experience Requirements for Administrators – DPA

OR…..

  • Have entered into a contract with an Administrator who has successfully closed out one CHIP grant in which DPA was an activity.
    • The consulting contract must have provisions to train the inexperienced Administrator.

How to Apply for CHIP $$

experience requirements for administrators h o rehabilitation
Experience Requirements for Administrators – H/O Rehabilitation
  • Must have successfully closed out one CHIP or CDBG grant in which Homeowner Rehabilitation was an activity.

OR

  • Have experience on staff of at least one individual who has at least 3 years direct work experience at a state or local PJ or a Entitlement community and who will be the primary lead contact on the grant.

OR …..

How to Apply for CHIP $$

experience requirements for administrators h o rehabilitation17
Experience Requirements for Administrators – H/O Rehabilitation

OR…..

  • Have entered into a contract with an Administrator who has successfully closed out one CHIP or CDBG grant in which Homeowner Rehabilitation was an activity.
    • The consulting contract must have provisions to train the inexperienced Administrator.

How to Apply for CHIP $$

period of affordability
Period of Affordability
  • Begins on the date that the project is marked as completed in HUD’s Integrated Disbursement and Information System (IDIS)
  • Its length depends on the amount of CHIP investment in the property
  • The amount of CHIP investment consists of all CHIP funds invested in a unit, including Project Delivery Fees

How to Apply for CHIP $$

period of affordability19
Period of Affordability

How to Apply for CHIP $$

dpa eligible property types
DPA: Eligible Property Types
  • All properties must be a one unit single family dwelling (attached or detached) designed for residential use, condominiums, or planned unit developments approved by Fannie Mae, Freddie Mac, or the Mortgage Insurer, townhomes, and modular homes that are located in an area consistent with such use and intended for owner-occupancy
  • Modular Housing is eligible if the home bears the “DCA insignia” and meets the standards of the State of Georgia’s Industrialized Building Program

How to Apply for CHIP $$

dpa eligible property types continued
DPA: Eligible Property Types – (continued)
  • Manufactured Housing is not eligible
  • Properties constructed prior to 1978 may not be purchased using CHIP-funded assistance unless a visual assessment is conducted and no lead is found

How to Apply for CHIP $$

dpa subsidy amount
DPA: Subsidy Amount
  • Each Applicant may propose a total assistance amount to be provided to the borrower of between $6,500 and $14,999
  • This amount must include the eligible Project Delivery Fee

How to Apply for CHIP $$

dpa subsidy amount continued
DPA: Subsidy Amount – continued

All Down Payment Assistance Activities must be made available in one of the two forms:

    • As a single flat total dollar amount provided to every home buyer
    • As a flat dollar amount provided to every home buyer with a house hold income w/in a specified tier based on the AMI Percentage for the county.
  • Will be proposed in Application to DCA

How to Apply for CHIP $$

dpa subsidy form
DPA: Subsidy Form
  • 0% deferred payment loan
    • For the portion used for down payment, closing costs, pre-paid items, & principal reduction
    • Payable to GHFA only when the home is sold, refinanced, or no longer used for their principal residence
    • Term will equal the Period of Affordability
    • During Period of Affordability, the amount subject to recapture will be determined based on the Recapture Requirements for a Down Payment Assistance Activity
    • After Period of Affordability, loan will be considered satisfied

How to Apply for CHIP $$

dpa subsidy form25
DPA: Subsidy Form
  • Grant:
    • All funds made available for project delivery costs of the activity
    • Amount will not be included in the calculation of the recapture amount

How to Apply for CHIP $$

dpa property value
DPA: Property Value
  • Purchase Price limited to:
    • Atlanta MSA: $250,000
    • All Counties Outside the Atlanta MSA: $200,000

How to Apply for CHIP $$

dpa first mortgage requirements
DPA: First Mortgage Requirements
  • Must be either (1) a 30-year fixed rate loan or (2) a 32- or 33-year fixed rate USDA loan
  • Must be originated by a lender located within the county in which the program is operated or within a geographically contiguous county
    • If no such lender is available, the first mortgage must be originated by a Georgia Dream Homeownership Program Participating Lender
  • Interest rate on the First Mortgage may not exceed the current 60-day price for Fannie Mae’s 30-year fixed rate mortgage by more than 200 basis points
    • Posted on DCA’s Web Site

How to Apply for CHIP $$

dpa first mortgage fees
DPA: First Mortgage Fees
  • Origination fee of no more than 2.00% of the Georgia Dream First Mortgage Loan amount, if the Georgia Dream First Mortgage is used.
  • FHA 203(k) fees to the extent allowed by FHA
  • The total of the Origination Fee and the discount points charged by the First Mortgage lender may not exceed more than 2.00% of first mortgage loan amount
  • Customary lender fees for application processing and underwriting may not exceed the aggregate of $600.00 and may not be based on the size of the loan

How to Apply for CHIP $$

dpa closing costs
DPA: Closing Costs
  • Whether paid by the property seller or the mortgagor, may not exceed the aggregate of the actual amounts expended for the following third party costs:
    • title examination;
    • title insurance;
    • attorney’s fees;
    • credit reports;
    • termite reports;
    • tax service fees
    • flood certificate fees;
    • surveys;
    • photographs;
    • appraiser’s fees;
    • filing and recording fees;
    • transfer tax and intangible taxes;
    • mortgage insurance;
    • Georgia Residential Mortgage Licensing per-loan fee (GRMA) in the amount of $6.50
    • express mail and courier fees paid to company other than Lender
    • application, processing or underwriting fees, only if paid to an independent third party; and
    • Adverse Market Delivery Charge of 0.25% and My Community Mortgage Loan Level Price Adjustment of 0.5625%

How to Apply for CHIP $$

dpa general requirements
DPA: General Requirements
  • All DPA activities must be offered to the home buyer as a Deferred Payment Second Mortgage Loan. As such, the loan must not require any regular monthly payments of the home buyer
  • The Applicant may not pay any application, processing, underwriting, or other similar fees attributable to the CHIP Financed Down Payment Assistance

How to Apply for CHIP $$

dpa general requirements continued
DPA: General Requirements - continued
  • The only fees which may be collected with the Second Mortgage are:
    • Recording fees
    • Intangible Tax
    • Georgia Residential Mortgage Act (GRMA) fee in the amount of $6.50
  • Must require a minimum contribution of $500 by the home buyer
  • All households must complete home buyer education or individualized housing counseling

How to Apply for CHIP $$

dpa escrow fee
DPA: Escrow Fee
  • May require a home buyer household to pay a nominal escrow
    • May not exceed $50.00
    • Must be identified as part of the program design submitted as part of the application
    • Must be applied toward the home buyer’s required contribution at closing

If the first mortgage does not close

      • Must be returned to the home buyer

How to Apply for CHIP $$

dpa project delivery fees
DPA: Project Delivery Fees
  • The total Project Delivery Fee will be made available as a flat fee of $1,500 per home buyer assisted
  • Project Delivery Fees will be disbursed based on submission of invoices or other documentation evidencing the costs incurred
  • Project Delivery Fees will not be disbursed until after the home buyer has closed on the loan to purchase the home

How to Apply for CHIP $$

dpa commitment expenditure deadline
DPA: Commitment & Expenditure Deadline
  • All project funds must be committed and expended within twenty-four (24) months of the date of the State Recipient or Sub-recipients agreement with GHFA
  • At DCA’s sole and absolute discretion, failure to meet this requirement may result in DCA’s recapture of funds or in barring the State Recipient or Sub-recipient from participation in future funding rounds

How to Apply for CHIP $$

h o rehab eligible property types
H/O Rehab: Eligible Property Types
  • Must be occupied by an income eligible homeowner and be the owner’s principal residence.
  • The eligible property types are:
    • Traditional single family housing (Stick-built or Modular) that is owned in fee simple. (This housing may contain one to four dwelling units.);
    • A condominium unit (Stick-built or Modular);

How to Apply for CHIP $$

h o rehab eligible property types continued
H/O Rehab: Eligible Property Types - continued
  • A cooperative unit or unit in a mutual housing project; and,
  • Manufactured Housing that is
    • (1) on land owned by the homeowner or having a lease in the name of the homeowner extending beyond the required Period of Affordability and
    • (2) on a permanent foundation.

How to Apply for CHIP $$

h o rehab subsidy amount
H/O Rehab: Subsidy Amount
  • Stick-built & Modular Housing:
    • Must be between $1,000 - $48,500
      • Includes lead and project delivery costs
  • Manufactured Housing:
    • Must be between $1,000 - $7,750
      • Includes project delivery costs

How to Apply for CHIP $$

h o rehab subsidy form
H/O Rehab: Subsidy Form
  • 0% Deferred Payment Loan to the Home Owner:
    • All construction hard costs, except those associated with lead based paint issues:
    • Payable only when the home is sold, refinanced, or no longer used for their principal residence
    • Term will equal the Period of Affordability
    • Forgiven in equal amounts annually over the Period of Affordability
    • Payable to GHFA

How to Apply for CHIP $$

h o rehab subsidy form39
H/O Rehab: Subsidy Form
  • In the event of the death of a homeowner(s) during the stated period of affordability, DCA will permit a State Recipient or Sub-recipient to allow within its stated program design for transfer of the property to an eligible low and moderate income household that is an immediate family member of the original homeowner. An “immediate family member” is defined as a spouse, parent, brother or sister, or child of that person, or an individual to whom that person stands in loco parentis. The State Recipient or Sub-recipient must provide procedures within its program design to qualify the immediate family member as an eligible household. All documentation must be submitted to DCA and retained in the files of the State Recipient or Sub-recipient.

How to Apply for CHIP $$

h o rehab subsidy form40
H/O Rehab: Subsidy Form
  • Grant to the Homeowner:
    • All costs associated with the identification, mitigation, abatement or clearance of lead-based paint
    • All funds made available for project delivery costs of the activity

How to Apply for CHIP $$

h o rehab property value
H/O Rehab: Property Value
  • After Construction Appraised Value
    • Atlanta MSA: $250,000
    • All Counties Outside the Atlanta MSA: $200,000

How to Apply for CHIP $$

h o rehab general property improvements
H/O Rehab: General Property Improvements
  • Improvements outside the scope of bringing a unit up to the state and local standards are generally not permitted unless the purpose of the improvement is to increase the energy efficiency or handicapped accessibility of the unit.
  • The costs of weatherization and handicapped accessibility improvements may not exceed $15,000 or more than 50% of the total cost of the rehabilitation work.

How to Apply for CHIP $$

h o rehab cost exceptions
H/O Rehab: Cost Exceptions
  • The State Recipient or Sub-Recipient may increase the amount of assistance provided to any Homeowner Rehabilitation Activity by up to 20% above the original project cost without seeking approval of DCA for the increased costs.
  • Any increases in project cost above 20% of the original project cost must be approved by DCA prior to initiating any work associated with the cost amendment.

How to Apply for CHIP $$

h o rehab owner contribution
H/O Rehab: Owner Contribution
  • Local program design for all Homeowner Rehabilitation Activities must not require any contribution for eligible project costs from an eligible homeowner with an income equal to or less than 50% of the Statewide Non-Metropolitan Area Median Income as adjusted for household size

How to Apply for CHIP $$

h o rehab owner contribution45
H/O Rehab: Owner Contribution

How to Apply for CHIP $$

h o rehab reconstruction
H/O Rehab: Reconstruction
  • All reconstruction activities must meet all of the following visibility requirements of OCGA 8-3-172
    • One No Step Entry through 36 inch door
    • On first floor:
      • Each interior door is at least a standard 32 inch door, unless the door provides access only to a closet of less than 15 square feet in area
      • Each hallway has a width of at least 36 inches and is level, with ramped or beveled changes at each door threshold
      • Each bathroom wall is reinforced for potential installation of grab bars
      • Each electrical panel or breaker box, light switch, or thermostat is not higher than 48 inches above the floor
      • Each electrical plug or other receptacle is at least 15 inches above the floor
    • The main breaker box is located inside the building on the first floor

How to Apply for CHIP $$

h o rehab project delivery fees
H/O Rehab: Project Delivery Fees
  • The following eligible Project-Related Soft Costs may only be charged to the activity as a Project Delivery Fee:
    • Processing of applications from the homeowner
    • Appraisals required by HOME program regulations
    • Preparation of work write-ups and work specifications
    • Lead based paint inspections, risk assessments and clearance testing
    • Project underwriting
    • Construction inspections
    • Project document preparation
    • Architectural, engineering or related professional services required to prepared plans, drawings or specifications of a project
    • Fees for recordation and filing of legal documents, building permits, attorneys, private appraisals, and independent cost estimates
    • Project-specific environmental review
    • Costs associated with informing a homeowner about relocation rights or benefits

How to Apply for CHIP $$

h o rehab project delivery fees48
H/O Rehab: Project Delivery Fees
  • For pre-1978 stick-built homes or Modular Housing, the total Project Delivery Fee may not exceed the lesser of 7% of the hard costs of the rehabilitation (including those costs associated with lead), or $4,000. Non-lead related costs are limited to $2,500 of this amount.
  • For stick-built housing or Modular Housing constructed in 1978 or later years, the Project Delivery Fee may not exceed $2,500.
  • For all Manufactured Housing, the Project Delivery Fee will be a flat amount of $750.

How to Apply for CHIP $$

h o rehab project delivery fees49
H/O Rehab: Project Delivery Fees
  • All Project Delivery Fees will be disbursed based on submission of invoices or other documentation evidencing the costs incurred
  • Project Delivery Fees will not be disbursed until the home buyer has closed the deferred payment loan for the CHIP funded assistance

How to Apply for CHIP $$

h o rehab commitment expenditure deadline
H/O Rehab: Commitment & Expenditure Deadline
  • All project funds must be committed within 24 months of the date of the State Recipient or Sub-recipients agreement with GHFA
  • All funds must be expended within 30 months of the date of the State Recipient or Sub-recipients agreement with GHFA
  • At DCA’s sole and absolute discretion, failure to meet this requirement may result in DCA’s recapture of funds or in barring the State Recipient or Sub-recipient from participation in future funding rounds

How to Apply for CHIP $$

all activities application fee charged to home buyer or homeowner
All Activities: Application Fee Charged to Home Buyer or Homeowner
  • An application fee may not be charged by any State Recipient or Sub-recipient to a prospective participant associated with any CHIP-financed Homeowner Rehabilitation or Down Payment Assistance activity

How to Apply for CHIP $$

all activities administrative fee
All Activities: Administrative Fee
  • DCA will permit an administrative fee to cover eligible costs of administering the program, including:
    • Providing citizens with information about the CHIP funded program, including outreach activities
    • Preparing a budget and schedule
    • Preparing reports and other documents related to program performance
    • Office space and utility costs
    • Purchasing equipment, insurance and office supplies
    • Compliance monitoring
    • Resolving audit and monitoring findings

How to Apply for CHIP $$

all activities administrative fee53
All Activities: Administrative Fee
  • DCA will permit an administrative fee equal to 2% of the total funds awarded for project costs, including Project Delivery Fees
  • Administrative fees will not be advanced until the final draw submitted for a Homeowner Rehabilitation or Down Payment Assistance Activity
  • Administrative Fees will be disbursed by multiplying the applicable administrative fee percentage (2%) by the amount of funds requested to be drawn for eligible project costs, including Project Delivery Fees

How to Apply for CHIP $$

all activities award adjustment
All Activities: Award Adjustment
  • Entities that receive an Award Adjustment for project-related funds will also receive a corresponding adjustment for administrative funds

How to Apply for CHIP $$

application requirements
Application Requirements

Application Fee of $250

  • Public Notification
    • Local Governments:
      • Must provide a resolution of the municipal or county government detailing the proposed program activities. No formal public hearing is required.

How to Apply for CHIP $$

application requirements56
Application Requirements

Application Fee of $250

  • Public Notification
    • Non-Profit and Public Housing Authority Applicants Proposing Activities in a Single Jurisdiction:
      • Must submit a copy of a letter sent to the chief elected officer (and copied to the city/county administrator, if applicable) of the jurisdiction in which the activity will be implemented that details the proposed program activities, No formal public hearing is required.
    • Non-Profit and Public Housing Authority Applicants Proposing Activities in Multiple Jurisdictions:
      • Must submit a copy of a letter sent to the chief elected officer (and copied to the city/county administrator if applicable) of each city and county in which the activity is proposed. The letter must detail the proposed program activities. No formal public hearing is required.

How to Apply for CHIP $$

application requirements57
Application Requirements
  • Public Housing Authorities
    • All public housing authorities submitting an application to administer a CHIP-funded program must submit the CHIP PHA Source of Funds Certification letter as part of their application.
    • The CHIP PHA Source of Funds Certification must be included behind the CHIP-1 Form. This requirement applies only to a local public housing authority applying as the applicant for CHIP funds.
    • Nonprofit subsidiaries of a PHA that will be the applicant for CIP funds must also complete the CHIP PHA Source of Funds Certification.

How to Apply for CHIP $$

funding determination
Funding Determination
  • Total Points - 100
    • Project Design – 50 points
    • Program Need – 10 points
    • Program Locational Characteristics – 16 points
    • Match Committed within Application – 7 points
    • Past Performance of Applicants – 6 points
    • Activity Proposed – 3 points
    • Program Type Specific Design Elements – 8 points

How to Apply for CHIP $$

funding determination scoring
Funding Determination - Scoring
  • Program Design
    • Description
    • Evidence of Long-term Commitment to Providing Affordable Housing
    • Evidence of Committed Partnerships
    • Non-CHIP Resources Brought to Program Design
    • Application Intake Process Design
    • Marketing Strategy
    • Financing Techniques
    • Program Administration
    • Evidence of Readiness to Proceed
    • Evidence of Demand
    • Evidence of Cost Controls in Program Design

How to Apply for CHIP $$

funding determination scoring60
Funding Determination - Scoring
  • Program Need
    • Based on the percentage of all persons in all census tracts to be served who are below the poverty line
    • DCA has provided data in your Administrative Manual

How to Apply for CHIP $$

funding determination scoring61
Funding Determination - Scoring
  • Program Locational Characteristics:
    • Community of Opportunity
    • Georgia Initiative for Community Housing
    • Federally Declared Disaster Area
    • 100% of units to be completed are located within
      • A Main Street or Better HomeTown designated community
      • An established Historic District
      • DCA certified Economic Opportunity Zone or locally approved Urban Redevelopment Area.
      • Close proximity to prior local government CDBG funded or DCA funded housing or infrastructure/public facility investment

How to Apply for CHIP $$

funding determination scoring62
Funding Determination - Scoring
  • Match Committed within Application
    • The Applicant has secured a firm local commitment of a permanent contribution of match to be provided toward the costs proposed
    • Match may take many forms; however, in no case may match be provided from the household assisted.

How to Apply for CHIP $$

funding determination scoring63
Funding Determination - Scoring
  • Past Performance of Applicants
    • Applicant may receive points by meeting either one of two criteria:

1. Applicant received at least one CHIP grant funded in the 2006, 2007, or 2008 CHIP application rounds and at least the following percentage of eligible project funds for every award received has been expended by the applicant for eligible projects:

        • 2006 – 100%
        • 2007 – 70.0%
        • 2008 – 40.0%
        • Note Administrative funds will not be included in this calculation

How to Apply for CHIP $$

funding determination scoring continued
Funding Determination – Scoring (continued)

2.The Applicant has an existing contract with an entity to administer the program and the contracted entity is currently administering CHIP funded programs in other communities where the following percentage of the eligible CHIP project funds allocated to all communities has been expended for eligible projects:

  • 2006 – 100%
  • 2007 – 70.0%
  • 2008 – 40.0%
  • Note Administrative funds will not be included in this calculation.

How to Apply for CHIP $$

funding determination scoring continued65
Funding Determination – Scoring (continued)
  • Activity Proposed
    • Programs that propose that 100% of all activities will be Homeowner Rehabilitation will receive the full allocation of points in this category

How to Apply for CHIP $$

funding determination scoring continued66
Funding Determination – Scoring (continued)
  • Program Type Specific Design Elements
    • Down Payment Assistance
      • Firm commitment by a Georgia Dream Participating Lender to partner with the Applicant
      • Program Design includes Post-Purchase home buyer education of no less than 1 year
      • Serve city or county that received NSP funds
      • Set-aside financing for at least 1 household at income of 60% of AMI or less

How to Apply for CHIP $$

funding determination scoring continued67
Funding Determination – Scoring (continued)
  • Program Type Specific Design Elements
    • Homeowner Rehabilitation
      • Program design sets aside at least 50% of the units to be assisted for units that are owned by households with income at 50% of AMI or less
      • Program design gives preference to elderly households
      • Program incorporates the use of energy audits in the assessment of work to be completed
      • Program design requires completion of visibility improvements to the extent compatible with the rehabilitation work to be completed

How to Apply for CHIP $$

funding determination scoring68
Funding Determination - Scoring
  • Program Type Specific Design Elements
    • Multi-Activity
      • Will be scored on both sets of factors and will receive the point total for the highest scored area.

How to Apply for CHIP $$

funding determination general
Funding Determination - General
  • All successful Applicants that that receive points within any of the following categories must adhere to that commitment throughout the program’s implementation
    • Program Locational Characteristics
    • Match Committed within Application
    • Activity Proposed
    • Program Type Specific Design Elements

How to Apply for CHIP $$

funding determination general70
Funding Determination - General
  • The points received by each Applicant on the rating factors will be totaled and the total scores ranked accordingly from highest to lowest. CHIP awards will be based on this final ranking to the extent funds are available. In case of ties, the applications will be ranked based on the differentiation of points received in the following categories by order of priority:
    • Total Program Need
    • Program Design
    • Match Committed within Application

How to Apply for CHIP $$

procurement procedures
Procurement Procedures
  • Applies to private consultants, engineers, architects
  • Does not apply to Regional commissions/non-profits
  • Must follow the Common Rule (24 CFR Part 85)

How to Apply for CHIP $$

procurement procedures72
Procurement Procedures
  • Publicize the RFP
  • Allow 30 days for responses
  • Send letter with RFP to at least 7 known providers
  • Negotiate with at least 2 respondents
  • Evaluate proposals and document
  • Consult with counsel
  • Gain full council/commission approval
  • Sole source approval if only one response

How to Apply for CHIP $$

developing and request for proposals rfp
Developing and Request for Proposals (RFP)
  • Indicate level of importance of evaluation factors
    • Capacity of organization
    • Current workload of applicant
    • Applicant’s previous CDBG or CHIP housing experience
    • Qualifications of key personnel
    • Level of services provided
    • Mobility/proximity to project
    • Cost to perform services
    • Local government’s experience with applicant

How to Apply for CHIP $$

elements of a successful application
Elements of a Successful Application
  • Public/Private Partnerships
    • Tell DCA who they are and the type of partner
    • Include their commitment letters with terms and conditions

How to Apply for CHIP $$

elements of a successful application75
Elements of a Successful Application
  • Long-term Commitment to Affordable Housing
    • Community’s recent program history
    • Housing types and number of units/dollars
    • Future commitment – strategic plans
    • Previous applications, even if not awarded
    • Community staff for housing
    • Local PHA or Non-profit Administrators
    • For-profit administrators
    • If administered by consultant, what is community’s involvement

How to Apply for CHIP $$

elements of a successful applications program design
Elements of a Successful Applications – Program Design
  • Detailed description of overall program
  • Program Administration
  • Role of each entity in the program
  • Responsible party for reports, financial accounting, application procedures, day-to-day operations

How to Apply for CHIP $$

program design
Program Design
  • Description of
    • targeted population to be served
    • geographic area
    • funding assistance
    • any required owner contribution
    • requirements for Approval/Denial
    • Marketing Strategy
    • application in-take
    • limits of Maximum Purchase Price

How to Apply for CHIP $$

program design cont
Program Design (cont.)
    • nominal escrow fee
    • Community Partners
    • Records Maintenance
    • policies and steps to comply with:
      • lead-based paint
      • URA
      • Minimum Property Standards
  • If proposing down payment assistance, may give proof of standard affordable housing on market for sale

How to Apply for CHIP $$

program design cont79
Program Design (cont.)
  • Pre-screening/pre-application
  • Full application
  • 1st come, 1st served
  • Client application documentation and verification
  • Financial assistance with bank or other loan
  • Waiting lists
  • Development of new waiting lists
  • Mandatory homeownership counseling

How to Apply for CHIP $$

program design cont80
Program Design (cont.)
  • Financing Technique
    • Maximum amount of CHIP by activity
    • Minimum required other or leveraged funds by activity
    • A finance plan for each activity is required

How to Apply for CHIP $$

program design cont81
Program Design (cont.)
  • Program Policies (to extent known)
    • Describe the community’s required program policies
    • Include DCA and HOME requirements

How to Apply for CHIP $$

program design cont82
Contractor solicitations

Work write-ups

Negotiation or bidding

Bid packages

Pre-bid conference

Contractor qualifications

Contracts

Inspections, draws, project completions

Lead based paint requirements

Program Design (cont.)

Construction Management

How to Apply for CHIP $$

cost control and reasonableness
Cost Control and Reasonableness
  • Describe maximum CHIP and other funds contributed if required by local design
  • Tell DCA total cost including CHIP and other funds
  • Describe the costs for lead hazard reduction separately
  • Were preliminary cost estimates conducted? (If so, indicate this in the application.) What is basis of total project cost by activity?

How to Apply for CHIP $$

cost control and reasonableness cont
Cost Control and Reasonableness (cont.)
  • Need details to assure proposed outcomes
  • Need specific information to assure costs are reasonable for each activity:
    • Number of units
    • Maximum CHIP
    • Minimum Required Other Funds
    • Total Dollars
    • PDC/unit (regular)
    • PDC/unit (lead)

How to Apply for CHIP $$

cost control and reasonableness cont85
Cost Control and Reasonableness (cont.)
  • Itemize lead hazard reduction cost separately
  • Define minimum property standards for each activity
  • What are your preliminary cost estimates based on?
    • Based on previous program averages
    • Existing per square foot costs in market place
    • Verified, standard, affordable homes for sale

How to Apply for CHIP $$

resource commitment
Resource Commitment
  • Tell DCA types of funding proposed other funds
  • Show DCA the level of control you have over committed resources
  • Propose appropriate, reasonable PDC’s for each housing activity
  • Get dollar commitments for only what is needed

How to Apply for CHIP $$

program marketing demand
Program Marketing/Demand
  • What is the basic marketing strategy?
  • Have all program applicants been pre-approved?
  • Present a well-defined and/or proven marketing strategy
  • Fair and open to all qualified applicants
  • Document that proposed activity is needed and appropriate for community
  • Existing waiting lists
  • Proof of houses in standard condition on market at affordable price range
  • Get details and documentation from real estate community

How to Apply for CHIP $$

lead based paint requirements
Lead Based Paint Requirements
  • DCA recognizes HUD lead requirements are costly
  • DCA does not expect homeowners to pay for lead with their funds or other funds
  • DCA has provided for specific project delivery fees for lead
  • For budgeting purposes, estimate
  • Total cost of regular rehabilitation without lead
    • Apply your community’s finance plan to these costs
    • Estimate separately the cost of lead
    • Provide a total cost with lead

How to Apply for CHIP $$

application submission
Application Submission
  • Send original and 2 copies
  • Photographs (Optional)

How to Apply for CHIP $$

mailing address
Mailing Address
  • Mail applications to:

CHIP Program Manager

Office of Special Housing Initiatives

Georgia Department of Community Affairs

60 Executive Park South, N.E.

Atlanta, Georgia 30329-2231

How to Apply for CHIP $$

application schedule
Application Schedule
  • Don’t forget your Application Fee Payable to GHFA
  • Application Due: July 1, 2010
  • Funding Selections Announced by September 30, 2010

How to Apply for CHIP $$

thank you
Thank You!
  • CHIP Contacts:
    • Carmen Chubb, Assistant Commissioner for Housing, carmen.chubb@dca.ga.gov, 404-679-0607
    • Don Watt, Director, Office of Special Housing Initiatives, don.watt@dca.ga.gov, 404-679-0660
    • Doug Scott, Nonprofit & Special Programs Manager, doug.scott@dca.ga.gov, 404-327-6881
    • Michelle Lewis, CHIP Program Manager, michelle.lewis@dca.ga.gov, 404-679-0659
    • Kay Garrison, Program Consultant,

kay.garrison@dca.ga.gov, 404-679-0573

How to Apply for CHIP $$

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Questions?

How to Apply for CHIP $$