Infill InfrastructureGrant Program California Department of Housing and Community Development
Format of Today’s Presentation • Introduce you to Application Format. • Discuss new features since NOFA Round One. • Give you some tips for a successful and complete application.
Program Purpose • As authorized by Proposition 1C, SB 86/Ch. 179 (2007), AB 192/Ch. 312 (2007), AB 1053/Ch. 692 (2007). • To provide grants for Capital Improvement Projects (CIPs) necessary for developing a Qualifying Infill Project (QIP) or the housing in a Qualifying Infill Area (QIA). • Gap funding of infrastructure.
What Can I Get Funding For? A Capital Improvement Project required as a condition of, or approved by the local jurisdiction in connection with it’s approval of entitlements for the project or area. (Section 304)
Infill Infrastructure 46 Awards $340 Million 9,862 Units Transit Oriented Development (TOD) 16 Awards $145 Million 3,477 Units Prop. 1C Awards – June 2008 $ 485 Million
Notice of Funding Availability (NOFA) Results April 4, 2008 $1 billion subscribed (FY 07-08) • 4:1 oversubscribed overall • 7:1 oversubscribed to projects • 3:1 oversubscribed to areas & multi-phased projects
Geographic Target Areas • 45% to Southern California: (Kern, San Bernardino, San Luis Obispo, Santa Barbara, Ventura, Los Angeles, Orange, Riverside, San Diego, and Imperial) • 10% to Central Valley:(Fresno, Kings, Madera, Merced, San Joaquin, Stanislaus, and Tulare) • 45% to Northern California:(all those not listed above) • Application deadline 4/1/09, 5 PM
QIP Projects Minimum Grant Amount $500,000 ($250,000 for Rural Areas) Maximum $20 million QIA Areas & MPPs Minimum Grant Amount $2 million ($1 million for Rural Areas) Maximum $30 million Grant Terms & Limits $197 Million NOFA Minimum 210 point score needed to submit application
Additional considerations: Grant calculation based on # of units, bedroom size, affordability, and density. Over the life of the program, total awards not to exceed $50 million per Infill Project or Area. May not exceed the amount of the actual costs of the infrastructure. Grant Terms & Limits
For projects (QIP/MPP): Non-Profit or For-Profit Developer, individually or with a: Locality Public Housing Authority Redevelopment Agency For areas (QIA): Locality Public Housing Authority Redevelopment Agency Business Improvement District (as a joint applicant only) Eligible Applicants
Application Binder Format • Submit two binders-one original and one copy. • Use letter-size, 3-ring binders with spines no wider than 3 ½ to 4 inches. • Make sure binders are no greater than 2/3 full. • If more than one binder is needed, label them 1 of 2, 2 of 2, etc.
Accompanying Compact Disks (CDs) • Provide two (CDs), one in the original binder and one in the copy binder. • Put the CDs in holder designed for 3-ring binders. • DO NOT slip them into the binder pocket as they can fall out. • Convert all files on CD to Adobe PDF format • Put Lengthy exhibits (20 pages or more) on the clearly-labeled CD. • Place a summary of the document in the appropriate tab and include a cover sheet naming the electronic file which contains the entire document.
Application Function • New this year: • Excel-based forms. • Index Tab Templates • 5-part application, Parts A-E. • To download, choose from one of three links: QIP, QIA, or MPP. • Fill out all parts within the link you choose.
Application Organization • Part A-General Information & Threshold • Part B-Scoring-Part B-QIP or Part B-QIA • Part C-Forms and Exhibits • Part D-Feasibility • Part E-Legal
Part A-Applicant Project General Information • (Question 3.a) “Application Information (Entity)” refers to the organization that is the primary applicant, not to a person. • (Question 3.b.) “Applicant Authorized Representative Information (Per Resolution)” is the person who would sign the State Standard Agreement. • (Question 3.c) “Applicant Contact information” is the person that the HCD Infill Representatives should contact for day-to-day information.
Part A-Threshold Requirements All projects must meet Threshold requirements to be eligible. Examples include: • Proof that the Capital Improvement Project is integral and necessary to the development of the housing. (Question 7.a) • This connection must be proven by evidencing that the locality requires the CIP and explaining why the CIP is integral and necessary for the development of the QIP or the housing in the QIA. • See Guideline Section 302(g) and 303(a).
Part A-Threshold Requirements • The QIP or QIA must be in an locality with an adopted Housing Element in compliance with state law. (Question 7.c) Call HPD @ (916) 445-4728. • To verify the previously improved area and the type of development around the perimeter of the project, you must submit documentation from a licensed civil engineer, land surveyor, or architect. Section 303 (a)(6) (Question 7.f) • New definition of Urban Uses! Section 302 (z)
Part A-Threshold Requirements • Is the application complete? • Is the applicant eligible? • CIP site control by the applicant or developer? (Question 7.j) • Comply with Mullin densities requirements? • Comply with 15% affordability requirements?
Part A- QIA Only Threshold Section • Note additional requirements for the QIA and the qualifying QIP within it. (Questions 7. l – s). Check the guidelines for each threshold requirement. • The QIA is contiguous and coherent and must be treated as a discrete planning area. No extensions or satellite areas for the sole purpose of meeting program requirements. (Question 7.q) • To verify the boundary, applicants must submit a map and narrative description of the site.
Part A- Capital Improvement Budget (Total Infrastructure Budget) • NEW! A limit of $40,000 per parking space. IIG will fund one space per residential unit and replacement transit station parking spaces. • CIP budget asks for estimated costs for all proposed infrastructure work in the Capital Improvement Project. • The total sum in the Infill Program column under “Sources and Uses” must equal the Grant Request.
Part A- Capital Improvement Budget (Total Infrastructure Budget) • “Unit type” refers to square feet, linear feet, yards, etc. • Site Acquisition: IIG will fund site acquisition costs for the CIP itself including easements and rights of way. • For buildings with parking structures below housing, costs of site acquisition for housing and mixed use structural improvements are not eligible for funding.
Part A-Total Development Budget • The Total Development Budget is the total cost and funding sources for all the infrastructure and housing development with the QIP, QIA, or MPP. • Note special cell – Input the total estimated sales price for the homeownership units that is supported by your market study.
Competitive Points Based On • Readiness (90) • Environmental review (25) • Land use entitlements (25) • Funding commitments (20) • Local support (20) • Affordability (60) • Depth and duration of affordability, to what extent the development exceeds the required 15% threshold?
Competitive Points Based On • Density (40) • To what extent does the development maximize the available land by exceeding required densities? • Access to Transit (20) • Proximity to Amenities (20) • Public parks, employment and retail centers, public schools, social services, and senior services. • Consistency with Regional Plans (20)
Part B-Grant, Affordability, and Density Calculation Spreadsheet (GAD) • New to Round 2-Definition of Net Density was clarified to include public rights of way, easements, encroachments, and dedicated open spaces to other items already excluded from the calculation. • Density points will be automatically generated with your grant amount limit. • Density Calculation – must have documentation from licensed civil engineer, land surveyor or architect.
Part B-Grant, Affordability, and Density Calculation Spreadsheet (GAD)-(Continued) Affordability • If QIP applicants choose not to use the GAD, they can use the MHP and TCAC scoring systems. If either of these methods is used, the applicant must calculate their actual score according to the instructions and enter that score into the GAD. • If project has owner-occupied, or owner-occupied and rental units, you MUST use the IIG Grant, Affordability, and Density Calculation Spreadsheet for Affordability scoring.
Part B QIP-Readiness Applicants must use the new Verification of Environmental Review and Land Use Entitlement form. • Environmental Review • A change was made to clarify projects with mitigated negative declaration under CEQA to be awarded full points. • Land Use Entitlements • A change was added to clarify that projects approved “by right” receive full points and design review is excluded from determining if a project has all its entitlements.
Part B QIA-Readiness • Land Use Entitlements: • A change was added to clarify that projects approved “by right” receives more points and design review is excluded from determining if a project has all its entitlements.
Part B QIP-Readiness • Funding Commitments – New Changes! • Measures amount of construction and permanent financing. • Rewards having both construction and permanent financing. • Sets 50% and 95% thresholds of funding commitments to earn points. See tables. • Land donations (supported with a current appraisal dated no earlier than 10/1/2008) • Low income housing tax credit equity contributions to be considered committed without a Reservation Letter.
Part B QIP-Readiness • Funding Commitments - New changes! • Prohibiting owner equity contributions or developer funds committed in the application from being substituted with a different funding source. • Allowing up to a 50% deferred developer fee substitution for applicants. • Funding commitments issued by HCD simultaneously with the commitment of IIG funds will be considered committed.
Part B QIP/QIA -Local Support On the Local Support page, list: • The requested Grant amount, • The amount (if any) of the 2009 federal stimulus funds, and • Other committed local public agency(ies) funds committed to the QIP/QIA or CIP. • The form will automatically generate percentages and the points. • A federal stimulus letter of intent is acceptable for the April 1st deadline. See www.recovery.gov
Part B-QIP/QIA Access to Transit • Changes in Round 2: • Alternative transit frequencies for projects in small cities. • Allowance of alternative peak hours for the transportation corridors based on transit agency information. • It is VERY important to include all supporting documentation. • Include transit locations, schedules, and routes! • Identify the walkable route!
Part B-QIP Proximity to Amenities • For QIPs, complete the Part B Amenity section and the Proximity to Amenities Detail Form in Part C. • Include all supporting documentation and label the documents correctly as described in the Grant Application Instructions Part B QIP. For example, scaled site maps and photos.
Part B-QIA Proximity to Amenities • Measuring the number of amenities within the QIA or within ½ mile of the QIA boundary. • See qualified amenity list. • Each distinct amenity is counted once. • No amenity category type can exceed 50% of points. • Include all supporting documentation and label the documents correctly as described in the Grant Application Instructions Part B QIA. For example, scaled site maps and photos.
Part B- QIP/QIA Consistency with Regional Plans • A letter from the council of governments (COG). • Letter must confirm project or area consistency with a regional blueprint plan or other growth plan. • The above plan must be adopted by a regional council of governments. • The plan must have stated intent of fostering infill development and efficient land use.
Part C-Exhibits, Forms, and Samples • NEW section! Organize! • Use the Table of Contents and Index Tab List as a checklist to ensure you include all required exhibits. • The Part C Grant Application only consists of three forms, but is the repository for all the exhibits applicants submit. • In Part C-Instructions, you will find several samples taken from applications funded last round which were excellent examples of documentation.
Part C-Exhibits, Forms, and Samples • Verification of Environmental Review and Land Use Entitlement form • Tax Credit Equity Contribution Form • Amenities Detail Form (QIP only) • Market Study • Rental project applicants are strongly encouraged to use the TCAC Market study standards, which can be found at: www.treasurer.ca.gov/ctcac/mktstudy/guideline08.pdf • Organizational Documents
Part D-FEASIBILITY • NEW SECTION!
Part D-Feasibility Applicants must evidence financial feasibility. Guideline Section 305 (e) • Analysis includes the Total Infrastructure Budget and Total Development Budget (Part A). • Milestones and Additional QIA Milestones Form • Attach additional pages if necessary to identify the milestones for all phases of the planned housing developments.
Part D-Feasibility Unit Mix (All applicants) • Income limits can be found at http://www.hcd.ca.gov/hpd/hrc/rep/state/incNote.html. • California Energy Commission methodology for calculating utility allowance can be found at http://www.energy.ca.gov/renewables/06-NSHP-1/affordablehousing/2008-10-22_staff_workshop.html
Part D-Feasibility Annual Income and Expenses (for rental project applicants only) • Complete the estimated 1st year operating budget for the QIP, MPP, or the Qualifying QIP in the QIA. • This budget represents when the project is placed in service at stabilized rents.
Part D-Feasibility • The form reflects inflation trending assumptions according to the State Uniform Multifamily Regulations located at http://www.hcd.ca.gov/fa/multifamilyregs.html. • Fully explain any trending assumptions alternatively used in your pro forma. Cash Flow Analysis (for rental project applicants only)
Part E-Legal • An original resolution or a live certified copy of the resolution must be submitted with the application. One month extension allowed for Public Agencies. • There must be a quorum and the vote count must be included on the resolution. • Submittal of a resolution not consistent with the submitted application will result in the rejection of the application.
Part E-Legal • The Legal Status Questionnaire must be completed by must be completed by applicants and joint applicants. • The person signing the Certifications and Identity of Interest Disclosure shall be the same as the person with authority to submit the application per the Governing Board Resolution.
Contact Us! Dept. of Housing & Community Development Infill Infrastructure Grant Program 1800 3rd Street, MS 460-2 Sacramento, CA 95811 (916) 324-1555 (916) 324-1461 Fax email@example.com www.hcd.ca.gov/fa/iig