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California Department of Housing and Community Development Chris Westlake – Deputy Director for Financial Assistance PowerPoint Presentation
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California Department of Housing and Community Development Chris Westlake – Deputy Director for Financial Assistance - PowerPoint PPT Presentation

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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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Presentation Transcript

Emergency Housing and Assistance Program

Capital Development (EHAPCD)

NOFA & Application Workshop


California Department of Housing and Community Development

Chris Westlake – Deputy Director for Financial Assistance

welcome and thank you for attending
Welcome and Thank You for Attending!
  • Meet EHAPCD staff
  • House Keeping
    • Restroom Locations
    • Cell phone courtesy
  • Technical Assistance is Available
ehapcd webpage
EHAPCD Webpage
  • Webpage Enhancements in process; check often for updated material
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.
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
Applicant requests for EHAPCD funds must be deemed an efficient and effective use for qualified activities
eligibility use of funds
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
eligibility use of funds cont
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
eligibility use of funds cont9
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
eligibility use of funds cont10
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
administrative costs cont
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
eligibility use of funds cont12
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
ineligible use of funds
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
site control a must with application submission or application considered ineligible
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
local zoning approval
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
loan terms conditions
Loan Terms & Conditions
  • Acquisition Only……………………10 years

from date Regulatory Agreement is recorded


*Loan term starts the date that either the Certificate of Occupancy is issued or the date the Notice of Completion is recorded.

loan terms conditions cont
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
rent requirements
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
relocation requirements cannot be paid with ehapcd funds
  • Uniform Relocation Act (URA) of 1970
        • 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
relocation requirements cont plan budget save
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)
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”
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
use ehapcd funds for americans with disabilities
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
property inspection requirements
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
appraisal requirements
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
funding commitments
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
environmental requirements
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)
preliminary title report
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
insurance requirements
Insurance Requirements
  • HCD must be named as Loss Payee
    • Include EHAPCD Loan number & project address for all applicable policies
  • Amount of coverage = replacement cost
new construction rehabilitation requirements
New Construction/Rehabilitation Requirements
  • Competitive Bidding Process
  • *NEW*

EHAPCD Bid Procedure Guidelines

    • State License & Bonds
    • AIA101 – 2007 & Addendum
    • State Prevailing Wage – Yes or No?
application packaging submittal
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
rating ranking criteria see pages 16 18 in the nofa
Rating & Ranking Criteriasee pages 16-18 in the NOFA
  • 1,000 Points maximum
    • Applicant Capability
    • Impact & Effectiveness
    • Cost Efficiency
    • DLB or Statewide Priority
loan grant committee
Loan & Grant Committee
  • Recommended for approval
  • Exempt Applications
    • Criteria #1
    • Criteria #2
  • “Tabled or Denied” Applications
  • Director’s final approval = Award Letter
standard agreement disbursement procedures
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
loan documents
Loan Documents
  • Loan Documents
    • Regulatory Agreement
    • Deed of Trust
    • Promissory Note
    • Development Agreement
    • Corporate Certificate
    • Subordination Agreement
    • Request for Notice of Default
semi annual report
Semi Annual Report
  • Reporting begins 6 months after the Standard Agreement execution date
  • Required prior to funding, if applicable
close out reports
Close Out Reports
  • Submit with FINAL Funds Request

All 4 Semi – Annual Reports

should have been

submitted by this time

annual reports
Annual Reports

Standard Agreement Expiration Anniversary


January - December