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Supportive Housing Multifamily Housing Program 2014 Funding Round. California Department of Housing and Community Development. 1. Supportive Housing Multifamily Housing Program (SHMHP) General Fund Summary. $100 million allocation for affordable housing 2014-15 State Budget (General Fund)

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supportive housing multifamily housing program 2014 funding round

Supportive Housing Multifamily Housing Program2014 Funding Round

California Department of Housing and Community Development


supportive housing multifamily housing program shmhp general fund summary
Supportive Housing Multifamily Housing Program (SHMHP)General Fund Summary

$100 million allocation for affordable housing 2014-15 State Budget (General Fund)

Funds include:

MHP General $47.5 million

Supportive Housing $47.5 million

Administrative Costs $5 million


shmhp nofa october 24 2014
SHMHP NOFA – October 24, 2014

Funding Available

$47.5 million

$7 million maximum loan amount per project

Function of unit size, location and affordability level


shmhp program changes
SHMHP Program Changes

Sponsors with projects whose per unit cost is 30% or more than the historical average will be required to (historical data available on HCD website):

Provide written explanation of unusual cost features

Explain why an award would be sound public policy

Submit recommendation from relevant public entity endorsing and supporting the project

Be aware that HCD reserves the right to reject applications if the development costs cannot be reasonably justified


shmhp program changes carried over from prior rounds
SHMHP Program Changes Carried Over From Prior Rounds

AB 1460: Priority points for projects which utilize sustainable building methods (D7 in Scoring)

USDA RD loan commitment requirements (NOFA Section C)

Scrutiny of rehabilitation projects (NOFA Section C)


mhp regulations
MHP Regulations

Governed by two sets of regulations:

Multifamily Housing Program Specific Regulations (MHP Regulations)

Uniform Multifamily Regulations (UMR)

Available at:


eligible sponsor
Eligible Sponsor

Non-profit, for-profit and local public agencies


Experience developing, constructing, owning and operating affordable rental housing projects

The entity that submits information for the award of the experience points (D3) must be the named Sponsor on the Application

Must demonstrate site control

MHP Section 7303 and UMR Section 8303


eligible project
Eligible Project

Multifamily rental and transitional housing projects of five or more units

New construction

Acquisition and rehabilitation


Conversion of nonresidential structures

Must not have started construction as of the application due date

MHP Section 7302


sh emphasis
SH Emphasis

Emphasis on units for:

Homeless or at risk of homelessness and disabled adult

Disabled: mental illness, HIV/AIDS, substance abuse, developmental disability or long-term chronic health condition

Maximum Income: 30% Area Median Income


eligible use of funds
Eligible Use of Funds

Costs attributable to Restricted units for:


Off-site/on-site improvements

Capitalized operating and replacement reserves (replacement reserves can be funded from Operating Income)

Child care facility and social service facility integrally linked to Project

Developer fee

MHP Section 7304


permanent only loans
Permanent Only Loans

Loan Terms

55 year term

3 percent simple interest (principal and interest deferrable)

First 30 years: mandatory debt service of .42 percent of outstanding principal balance

Next 25 years: adjusted to cover HCD’s monitoring costs

Unpaid interest and principal due at end of term


program limitations
Program Limitations

Payment of state prevailing wages to laborers working on MHP-financed projects is required

Sponsor distributions limited to 50 percent of cash flow (UMR Section 8314)

9 percent tax credit projects are eligible to apply for SHMHP funds


developer fee limits
Developer Fee Limits

Limit of $1.2 million from funding sources (C7)

New construction and substantial rehabilitation projects: first 30 units, $25,000 per unit. Each unit in excess of 30, $9,500 per unit

Acquisition and rehabilitation projects without substantial rehabilitation: first 30 units, $12,000 per unit. Each unit in excess of 30, $5,500 per unit

Land donations from local jurisdiction or master developer may not be counted as capital contribution

Cash contributions from master developer or other entities, which are contingent upon the development of the Project may not be counted as capital contribution


developer fee limits continued
Developer Fee Limits (continued)

Developer Fee Calculation

Includes lease-up fees, incentive fees, or other property management fees, in excess of those customarily charged by property management firms for lease up activities, which are paid to the Sponsor, Co-Sponsor or affiliate of the Sponsor or Co-Sponsor


Universal Application used by HCD, TCAC, CDLAC and CalHFA

SHMHP Application Attachment



general instructions
General Instructions

Submitting Application

Three-ring binder with sleeve on the side

Large lettered tabs and divide the binder into seven sections: Universal Application, Universal Application Attachments (1-11), SHMHP Attachments A, B, C, D, E

Set up dividers with numbered tabs to correspond to the Universal Application and MHP Program Specific Checklist (A1)

For items that are not applicable to your application, place a sheet stating the item is “Not Applicable” behind the tab


general instructions continued
General Instructions (continued)

COMPLETE original and one duplicate of application must be received by HCD no later than 5 p.m. on December 23, 2014. Postmarks are not accepted

No facsimiles, late, incomplete, or revised applications will be accepted

Applications must meet all eligibility requirements upon submission

Applications with internal inconsistencies will not be rated and ranked


organizing the application
Submit your application binders in this order:

Universal Application

Universal Application Attachments 1 - 11

SHMHP Attachments A, B, C, D, E

Remember: Once your application is received, it must stand on its own to represent your Project

Organizing the Application



Disclosure of Application

Information becomes PUBLIC RECORD available for review by the public

Use Discretion

Sponsor is waiving any claim of confidentiality and consents to the disclosure of all submitted material upon request


project evaluation
Project Evaluation
  • Eligibility
  • Feasibility
  • Scoring


a1 universal application and shmhp checklist
A1 Universal Application and SHMHP Checklist

Proof of site control

Current Preliminary Title Report

Relocation Plan with estimated costs

Utility Allowance Chart by unit size

Org. charts for Borrower, Sponsor, Developer, Affiliates

Legal Status Questionnaire

Previous Participation Certifications

Evidence of enforceable commitments - Construction

Evidence of enforceable commitments - Permanent

Market Study with Rent Comparability Matrix

Current Appraisal


a2 eligibility criteria
A2 Eligibility Criteria

Other funding sources are insufficient to cover Project development cost

As of application due date, construction has not commenced(demolition is considered “construction” if cost of demolition is included in the development budget)

Application complete and on MHP approved forms


a2 eligibility criteria continued
A2 Eligibility Criteria (continued)

Project site must be free from environmental conditions which are infeasible to correct

Site is reasonably accessible to:

Public transportation, shopping, medical services, recreation, schools and employment

Must demonstrate Article XXXIV authority

New construction projects with demolition:

Number of bedrooms in new Project must be at least equal to the number of bedrooms demolished


a2 eligibility criteria continued1
Relocation Eligibility Requirements

Application must contain a preliminary Relocation Plan

Developmental budget must contain funding for Relocation Expenses

Final Relocation Plan must be approved by the Department prior to funding

MHP Section 7315

A2 Eligibility Criteria (continued)


a2 eligibility criteria continued2
Site Control Requirements

Must be in the name of the Sponsor

Documents showing site control:


Contract of Sale

Disposition and Development Agreement

Preliminary Title Report

Option to Purchase or Lease

Preliminary Title Report required in all cases

Not older than six months

UMR Section 8303

A2 Eligibility Criteria (continued)


a2 eligibility criteria continued3
A2 Eligibility Criteria (continued)

Proof of Site Control

Can take any of the forms indicated, but must:

Be fully executed and unilateral

Name seller and purchaser or lessee

Include dollar amount and terms of agreement

Be signed by all parties

Not have expired


a3 recycling program narrative
A3 Recycling Program Narrative

In an effort to encourage all projects to implement as many environmentally friendly options as possible, the SHMHP application will require a narrative describing how the Project will implement and encourage residents to utilize project-based recycling programs


b1 tenant selection criteria
B1 Tenant Selection Criteria

Provide description of your tenant selection criteria and describe rationale

Senior Projects (B1a): Provide evidence of Fair Housing Compliance (legal opinion)


b2 organizational documents
B2 Organizational Documents

Sponsor and Ultimate Borrower (if formed)

Articles of Incorporation


Partnership Agreements

If organized under laws of different state:

Submit Certificate of Good Standing for Foreign LP/Corp/LLC plus Certificate of Registration


b3 governing board resolution
B3 Governing Board Resolution

Authorizes application submission

Specifies authorized signatory

Must reference the NOFA date and the amount of loan request

Must state that the entity is authorized to do business in California

Sample resolutions are available


b4 names of officers and board members
B4 Names of Officers and Board Members
  • Be certain not to disclose personal data (addresses, phone numbers, etc.) unless the board members have authorized the release of such information – keep in mind that the application is a public document


b5 environmental reports
B5 Environmental Reports

Phase I Environmental Site Assessment

Other Environmental Reports (i.e. Phase II, Asbestos, Lead-based paint)

Mitigation information (if applicable)

Do not attach database records search


b6 maps
B6 Maps

Parcel map showing site location

Scaled Distance Map

Two mile radius of site

Indicate amenities


B7 Article XXXIV of the California Constitution requires voter approval authorizing development of low-income housing

Provide evidence that Article 34 authority exists for this Project;or

Provide a legal opinion letter explaining why this Project is exempt from Article 34 requirements


maximum allowable loan amount
Maximum Allowable Loan Amount

C2 Worksheet to Determine Maximum Allowable Loan Amount

C3 Loan Limit Worksheet

C4 Shared Cost Calculation Worksheet

C5 MHP Loan Calculation Worksheet


loan limits
Loan Limits




This item (evidence of commitment status for development funding) has been replaced by Universal Application Attachments 8 and 9

See SHMHP Application Attachment Instructions for what constitutes evidence of commitment


c7 developer fee calculation
C7 Developer Fee Calculation

Not a required application attachment

Tool to assist Sponsor in calculating allowable amount of developer fees


c8 unit mix and income information
C8 Unit Mix and Income Information

Complete the Unit Mix and Income Information chart

For rental assistance, operating, project based and other subsidies attach evidence of commitment

If not available, attach other documentation such as Reservation or third-party letter stating the following:

Annual subsidy amount

Date or expected date of award


Number of subsidized units

If not available, attach Voucher Payment Standard and Fair Market Rents from Housing Authority


c9 transition reserves
C9 Transition Reserves

If Project depends on project-based rental subsidy, attach calculation of Required Transition Reserve funding (MHP Regs 7312f)


c10 justification of services coordinator
C10 Justification of Services Coordinator

Attach narrative description of tenant needs and the role of the resident Services Coordinator in linking tenants to services


c11 estimate of construction cost based on prevailing wage
C11 Estimate of Construction Cost Based on Prevailing Wage

Complete C11 based on prevailing wages


insert the following documents
Insert the Following Documents

C12 Copies of Planning Approvals

C13 Copies of Resumes for Project Contractor and Architect

C14 Copies of Schematic Drawings


rehabilitation projects
Rehabilitation Projects

C15 Provide a narrative description of current condition of structures

C16 Provide a detailed narrative description of the intended scope of work

C17 Provide a copy of current rent roll including household composition and income


c18 letter to local government
C18 Letter to Local Government

Statutory requirement to notify local government jurisdiction that application is being submitted

Must be addressed to the City Council or County Board of Supervisors (whichever is applicable)



c19 operating expense comparables
C19 Operating Expense Comparables

Minimum three comparables

One market rate; one affordable housing

Same primary market area

Similar size, number of units and amenities


d1 extent project serves households at the lowest income levels 35 points
D1 Extent Project Serves Households at the Lowest Income Levels - 35 points

Enter total number of Restricted Units

Enter number of units for MHP A, B, or C

Scoring sheet will auto calculate


d2 extent project addresses the most serious identified local housing needs 15 points
D2 Extent Project Addresses the Most Serious Identified Local Housing Needs - 15 points

(A) 5 points for either:

Letter from City or County

Local need identified in local housing policy document

The local housing policy document in which the need is identified

A statement that the Project meets the need

Must specifically name the Project


d2 extent project addresses the most serious housing needs continued

If 70 percent of Project units are reserved for Special Needs or Supportive Housing Populations:

Letter from local government department stating that the Project will address a serious local housing need as it relates to Special Needs Populations

D2 Extent Project Addresses the Most Serious Housing Needs (continued)


d2 extent project addresses the most serious housing needs continued1
AND Choose option B, C or D - 5 or 10 points

(B) - 10 points

At least 70 percent of units reserved for Special Needs or Supportive Housing Populations or

At least 70 percent of units have two or more bedrooms and located in Alameda, Contra Costa, Los Angeles, Marin, Monterey, Napa, Orange, San Diego, San Francisco, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Solano, Sonoma, or Ventura counties

D2 Extent Project Addresses the Most Serious Housing Needs (continued)


d2 extent project addresses the most serious housing needs continued2
(C) - 5 or 10 points

Comparable Market Rental Data Forms

At least the five nearest comparable projects

Senior projects - limit comparables to this population

One rental data form for each comparable

If weighted vacancy rate is < 3 percent = 10 points

If weighted vacancy rate is < 5 percent = 5 points

D2 Extent Project Addresses the Most Serious Housing Needs (continued)


d2 extent project addresses the most serious housing needs continued3
(D) - 5 or 10 points

Vacancy Rate Determined by Market Study

Performed by qualified third party per TCAC guidelines

Senior projects - limited to this population

Vacancy rate < 3 percent = 10 points

Vacancy rate < 5 percent = 5 points

D2 Extent Project Addresses the Most Serious Housing Needs (continued)


d3 development and ownership experience of project sponsor 20 points
D3 Development and Ownership Experience of Project Sponsor - 20 points

Affordable housing developments completed in the five years preceding application due date

Minimum ten units

Exception: If proposed project has < 15 units, and 70 percent of units reserved for Special Needs Populations, a completed project may have five units


d3 development and ownership experience of project sponsor continued
Experience points awarded if:

Project Sponsor or affiliate was sole developer

Project Sponsor or affiliate in partnership with another entity if:

Controlled key aspects

Had sufficient staff to manage the development process

Received majority share of developer fee

D3 Development and Ownership Experience of Project Sponsor (continued)


d3 development and ownership experience of project sponsor continued1
Projects were developed by staff (or a principal) currently employed by Sponsor if:

Staff had primary responsibility for the development process

Staff will serve as Project Manager, or directly supervise the Project Manager and have primary responsibility for managing the development process

D3 Development and Ownership Experience of Project Sponsor (continued)


d3 development and ownership experience of project sponsor continued2
Only experience of one entity counted

Experienced entity must have controlling interest in partnership, primary responsibility for development, ongoing control of operations and sufficient staff

Must receive majority share of developer fee

D3 Development and Ownership Experience of Project Sponsor (continued)


D4 Percentage of Units for Families, Supportive Housing or Special Need Populations or At-risk Rental Housing Developments - 35 points

Scoring sheet will auto-calculate for unit size and Special Needs Population designated units

At-risk Rental Housing must meet TCAC definition. Attach completed checklist and supporting documentation including third-party legal opinion.


d5 leverage of other funds 20 points
D5 Leverage of Other Funds - 20 points

Deferred developer fee is not included

Land value may be included if supported by an appraisal

Rural, Non-rural: As defined by TCAC

Attachment D5 will auto-calculate


d6 project readiness 15 points
D6 Project Readiness - 15 points

Enforceable commitments - construction

Enforceable commitments - deferred


Have all clearances (NEPA & CEQA)

If NEPA Responsible Entity is not the locality: Submit form to appropriate NEPA Responsible Entity

Phase I Environmental Site Assessment


d6 project readiness continued
Local design review approval

Public land use approvals (not to include building permits and ministerial approvals)


Fee Title or long-term leasehold (attach PTR or documentation of lease agreement)

Working drawings at least 50 percent complete (attach architect certification)

D6 Project Readiness - (continued)


d7 adaptive reuse infill proximity to site amenity or sustainable building methods 10 points
D7 Adaptive Reuse, Infill, Proximity to Site Amenity or Sustainable Building Methods - 10 points

Infill: Vacant or soon to be vacant lot in established or developed area

Adaptive Reuse: Rehabilitation of vacant commercial or industrial buildings in developed areas

Proximity to Site Amenity: Must qualify for any points under TCAC

Sustainable Building Methods: Must qualify for any points under TCAC


supportive housing projects d8 commitments for operating subsidy or services funding 5 points
Supportive Housing Projects: D8 Commitments for Operating Subsidy or Services Funding -5 points
  • A commitment for the operating subsidies, sufficient to sustain project operations for five years or longer from the local government.
  • A commitment for services funding, sufficient to make available services adequate to meet the needs of the tenants housed in the Supportive Housing Units, for five years or longer. Must include:
    • Project name, description of services to be funded or provided, dollar value of funds or in-kind services (if cash is to be provided, state the source of funds), term of funding or service provision and a brief description and history of the agency/organization providing the funding or services.
d8a catalyst program 5 points
Projects that have received a Gold or Silver award from the Department’s Housing Policy Development Division via the Catalyst Projects for California Sustainable Strategies Pilot Program will receive five bonus points in the application scoring process. More information is available on the Department’s website at: Catalyst Program - 5 points


index and checklist application item b14
Index and Checklist (Application Item B14)

Part 1. Populations to be served

Part 2. Supportive Services Plan

Part 3. Supportive Services Budget

Part 4. Project Sponsor and Service Provider Experience

Part 5. Property Management Experience


tenant selection narrative part 1 section 3
Tenant Selection Narrative Part 1, Section 3
  • Must conclusively document occupancy will be limited to eligible households
    • For Supportive Housing projects, occupancy by Supportive Housing households must be documented for at least 5 project units or 35% of the total units (whichever is greater)
tenant selection narrative part 1 section 31
Tenant Selection Narrative Part 1, Section 3

Threshold Eligibility Criteria

Other Eligibility Criteria


Referral Sources

Application Process

Tenant Screening

Fair Housing

service plan summary part 2 section 1
Service Plan Summary Part 2, Section 1
  • Narrative Summary of Services Plan
    • Service Needs of Population
    • Lead Service Provider
    • Key Services available
    • Staffing
verification from funding agency part 2 section 3
Verification from Funding Agency Part 2, Section 3
  • Agency shall be knowledgeable of the supportive service needs of the Target Population
  • Agency shall endorse the services plan and the Project Sponsor as a known provider of Supportive Services similar to those proposed
  • Use Supportive Service Verification Form
supportive services chart part 2 section 4
Supportive Services ChartPart 2, Section 4

Record in chart:

  • Each Support Service separately
  • Population to be served
  • Short Description of the Service
  • Name of Service Provider
  • Relationship to Sponsor
  • Type of Agreement (i.e., MOU or letter of commitment)
  • Service Location – on or off Project site
services delivery chart part 2 section 5
Services Delivery Chart Part 2, Section 5
  • List each Staff Position separately
  • Describe the roles and duties of each position
  • Indicate percentage of full-time equivalent staff
  • Name the employer organization of the position
  • Specify Location work will be performed
staffing level table part 2 section 5b
Staffing Level Table Part 2, Section 5b
  • Indicate staffing level by completing calculation:
    • Total SH Units
    • Total FTE Support Service Staff
    • Number of SH Units per FTE Staff Person
      • If Staff level differs from HCD’s historical averages [10 – 15 households per staff for intensive services or 15 – 25 households per staff for less service intensive], provide a narrative explanation.
tenant engagement part 2 section 6
Tenant Engagement Part 2, Section 6
  • Provide narrative of tenant engagement plan
  • Explain how the Sponsor will elicit tenant participation in the services
  • A tenant engagement plan may not be necessary for transitional housing
collaboration part 2 section 7
Collaboration Part 2, Section 7
  • Provide a Narrative Description of the Collaboration Relationship (Section 7A)
  • Provide Collaborative Relationship Documentation such as a Contract, MOU or Letter of Intent (Section 7B)
measurable outcomes and plan for evaluation part 2 section 8a
Measurable Outcomes and Plan for Evaluation - Part 2, Section 8a
  • Applicants must establish reasonable outcomes and outcome measures for:
    • Residential Stability
    • Increased Skills or income
    • Greater Self-determination
  • Applicants must reasonably describe the proposed system for tracking the data and agree to report on the data annually
service utilization part 2 section 8b
Service Utilization Part 2, Section 8b
  • Applicant must describe plan for collecting and analyzing service utilization data:
    • Prior to tenancy
    • During tenancy
    • Which systems of care will provide the data (i.e. health, mental health, substance abuse, criminal justice)
    • How data will be collected and analyzed
supportive services cost per unit part 3 section 2
Supportive Services Cost Per Unit Part 3, Section 2
  • Indicate supportive services cost per unit by completing calculation:
    • Total SH Units
    • Total Supportive Services Costs
    • Total Supportive Service Costs per Unit
      • If supportive service cost per unit differs from a range of $5,000 - $10,000 per unit, provide narrative explanation
funding and service commitments part 3 section 3
Funding and Service Commitments Part 3, Section 3
  • A minimum of 25% of total Service Budget must be committed at the application stage
  • Letters of Commitment or Intent to Fund must provide the following on organization letterhead:
    • Project name
    • Description of services to be funded or provided
    • Value of funds or in-kind services
    • Term of funding or service provision
    • History of organization providing funds or services
experience part 4 section 1
ExperiencePart 4, Section 1
  • Document 24 months experience in ownership or operation of one special needs or supportive housing project
  • Document 24 months experience in providing services to the target population
  • Property manager must have 24 months experience in managing a supportive housing or special needs housing project containing 5 or more dwelling units

This is a threshold requirement

service funding history part 4 section 2b
Service Funding History Part 4, Section 2B
  • Document the funding history of the qualifying service provider
  • Document that the provider will be able to access funds from the programs that fund the services identified in the Supportive Services Plan
  • List only funding obtained in last 5 years
contact information
Contact Information

Regi Fletcher 916-263-5882 [email protected]

Kendra Gubaydullin 916-263-1435 [email protected]