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2009-10 RFP available 5/14/09 through 6/15/09
 

2009-10 RFP available 5/14/09 through 6/15/09

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    2009-10 RFP available 5/14/09 through 6/15/09 2009-10 RFP available 5/14/09 through 6/15/09 Document Transcript

    • 2008 HOME Special Needs Request for Proposals The Department of Grants Administration within the City of Tulsa is accepting proposals from eligible HOME applicants to undertake rental activities to provide housing for special needs populations. Proposals are due by 5:00 p.m., Monday, June 15, 2009. Application Submission Hand delivered or mailed proposals must be delivered to: Nancy Robbins City of Tulsa Department of Grants Administration 175 E. Second Street, Suite 480 Tulsa, OK 74103 No form of electronic application submission will be accepted. HOME Special Needs Purpose To provide decent affordable permanent or transitional rental housing for low and moderate income elderly, homeless, or severely disabled persons. Special needs rental developments must target households at and below 60%AMFI for the Tulsa Metro Area based on family size and follow the applicable HOME rents. Rental developments with 5 or more HOME-assisted units must target 20% of the units to households at or below 50%AMFI. Tulsa Metro Area 2009 HOME Program income limits are located in the Information Appendix. Grant Maximum Applicants under this RFP may request up to $500,000 in HOME hard and soft cost funding. Soft costs are limited to 15% of the HOME hard cost request. Award Process Funding selections will be made using a competitive process. Applications will be evaluated and funding recommendations made by City staff. Additionally, all applications will be reviewed by HOME Project Review Committee (PRC). Final funding determinations will be made on July 30, 2009. Applications will be evaluated in two parts: Basic Eligibility Review and Rating. Applications that do not pass Basic Eligibility Review will receive no further evaluation and will not advance to rating. Applications advancing to Rating will be scored using a set of numerical criteria that will be added together to establish a final score. Scored applications will be rank ordered from highest to lowest. Funds available for award will be applied to the rank ordering in descending order until all funds are awarded. DGA will analyze proposals for long term financial viability, stability, management capability. Additionally, in accordance with 24 CFR Part 92.250 and CPD Notice 98-01, DGA will conduct subsidy layering review to assure no more HOME funds are invested in a project in combination with other assistance than is necessary to provide affordable housing. HOME awards will be provided as equity grants subject to the regulatory term of affordability as described in the regulations at 24 CFR Part 92. 2008 HOME Special Needs RFP 1 May 11, 2009
    • Basic Eligibility Criteria Applicants with one or more of the following conditions or that fail to meet or provide one or more of the following criteria may fail basic eligibility review.  Application Information and Certifications: incomplete applicant information or unsigned certifications may result in basic eligibility failure.  Project description: all proposals must provide responses to a variety of project description questions that will be used to determine compliance with HOME’s rental activity requirements.  Fiscal Management: audits, financial statements or balance sheets and income statements containing unresolved findings, reportable conditions, deficiencies or program compliance.  Match: full description, documentation and calculations of all sources of non-federal match.  Monitoring History: unresolved monitoring findings from previous open or closed DGA HOME or CDBG contracts and/or open DGA HOME contracts over two years old that are not 100% expended and closed out.  Project Status: documentation of site control or a plan to obtain site control, preliminary floor plans/elevations/specifications or a timetable to develop such plans.  Market Analysis: Permanent rental housing projects with less than 20 total units must provide a data-based analysis demonstrating demand for the type and amount of housing proposed. (Refer to the Information Appendix for the minimum content requirements for all data-based and third party, independent, licensed market analyses) Permanent rental housing projects with 20 or more total units and all rental housing financed with Section 42 Low Income Housing Tax Credits must submit a third party independent market analysis performed by a licensed analyst not affiliated with the applicant or developer. All transitional rental housing projects, regardless of the number of units or project financing, are not required to provide a data-based analysis demonstrating demand or need.  Site and Neighborhood Standards Review: All rental new construction, regardless of the number of units or project financing, must provide Site and Neighborhood Standard Review pursuant to Title 24 Section 983.6.  Financing and Financial Commitments: All proposals will undergo subsidy layering review in accordance with 24 CFR Part 92.250 and CPD Notice 98-01 “Layering Guidance for HOME Participating Jurisdictions When Combining HOME Funds with Other Government Subsidies”. In analyzing development budgets and operating expenses, the City will consider reasonableness of construction costs and associated professional fees and project quality. HOME funded soft costs cannot exceed 15% of HOME hard construction/rehabilitation costs. HOME funded builder profit cannot exceed 15% of HOME hard construction costs. HOME funded developer fees cannot exceed 10% of HOME hard construction costs. CHDO operating is limited to $50,000 per year. Rating Criteria  Organizational Structure and Experience: Applicants will be evaluated and scored based on organizational structure and direct staff experience in the HOME Program and other federal housing resources in the development of permanent and transitional rental housing.  Organizational structure providing for proper oversight of financing, production and overall administration  Staff and organizational experience with transitional or permanent rental housing development but the use of HOME funds  Staff and organizational experience in federal housing programs other than HOME  Staff and organizational HOME Program experience (less than 5 HOME contracts)  Staff and organizational HOME Program experience (5 contracts or more) 2008 HOME Special Needs RFP 2 May 11, 2009
    •  Income Targeting: Points will be awarded based on the extent to which HOME-assisted units will target extremely low income households at and below 30% of the Area Median Family Income. The percentage of extremely low income households targeted will be calculated by dividing the number of HOME-assisted units targeted to households at and below 30% by the total number of HOME-assisted units in the project. For example, a project targeting 4 units to households at or below 30%AMFI with a total of 10 HOME-assisted units in the project is targeting 40% of its units to extremely low income households. No rounding will be used in the determination of the percentage of targeted units. Income targeting becomes part of funded applications subject to monitoring. Deviations from the income targeting stated in funded applications will be deemed findings that in turn, may negatively impact future application scores and/or repayment of all HOME assistance. 2008 HOME Special Needs RFP 3 May 11, 2009
    •  Leverage: Points will be awarded based on the amount of other resources used to augment HOME funds. Leverage resources include but are not limited to: other state or federal grants, foundation resources, borrowed funds/ debt, Section 42 Low Income Housing Tax Credits, Federal Home Loan Bank Affordable Housing Program funds, Oklahoma State Housing Trust Fund loans and retained CHDO Proceeds. Leverage does not include the use of “in-kind” resources. Leverage resources must be documented with written commitments provided under Basic Eligibility Criteria in Tab #1: “Financing and Financial Commitments”. Leverage will be based on the percentage of non-HOME resources to total development cost. For example, if the applicant is providing $50,000 in non-HOME resources in a project with a total development cost of $200,000, the leverage percentage is 25%. No rounding will be used in the determination of leverage percentage. 2008 HOME Special Needs RFP 4 May 11, 2009
    •  Ability to Further Reduce Development Costs Through New Excess Match Contributions: Points will be awarded based on the amount of new excess non-federal matching resources provided over and above the required 25% match. Only eligible match pursuant to 24 CFR Part 92.218 through 92.222 and CPD Notice 97-03 will be considered in the calculation of points. All new match in excess of the required 25% must be documented under basic Eligibility, Tab #1. No rounding will be used in the determination of excess match percentages.  Energy Efficient Construction: Improving energy efficiency in HOME-financed developments to generate significant savings for property owners and building residents by building and rehabilitating affordable housing to meet the ENERGY STAR guidelines for energy efficiency set by the U.S. Environmental Protection Agency, as suggested in USHUD’s Energy Action Plan, will be awarded points. In order to earn points under this criterion, new construction and substantial rehabilitation must, at a minimum specify ENERGY STAR qualified products; adopt the appropriate ENERGY STAR standards for building performance (ENERGY STAR for New Homes or ENERGY STAR for Existing Homes); incorporate ENERGY STAR energy-efficient features including such as effective insulation, High-Performance Windows, Tight Construction and Ducts, Efficient Heating and Cooling Equipment, Efficient Products; and, document third-party verification of the “Energy Star” rating.  Revitalization Target Area Focus: Special needs housing undertaken in the following revitalization target areas will be awarded points. Maps indicating the location of these target areas are located in the Information Appendix.  Tie Breaker: In the event there is a tie score between applicants and there are insufficient HOME resources to fund all tied applications, those applications will be rank ordered based on lowest combined HOME hard and soft costs per unit. Remaining HOME funds will be awarded using this criterion until exhausted. Eligible Applicants Units of general local government (including instrumentalities of the City of Tulsa designated by the chief executive to act on behalf of the Participating Jurisdiction); City certified Community Housing Development Organizations (CHDOs); and Subrecipients (a public agency or nonprofit organization selected by the City to administer all or a portion of HOME funds including those operating as a nonprofit arm of religious organizations or public housing authority). Eligible & Ineligible Activities (24 CFR Part 92.205) HOME funds may be used to develop and support affordable permanent or transitional rental housing through the acquisition, new construction, reconstruction, or rehabilitation of non-luxury housing with suitable amenities. Eligible and Ineligible Costs and HOME Program Requirements Not all organizations or project concepts are equipped or suited for using HOME funds. To determine an organization’s capacity for using and accounting for Program resources, DGA strongly encourages consideration of the following questions.  Internal controls: Does your agency have a written set of policies and procedures that define staff qualifications and duties, lines of authority, separation of functions, and access to assets and sensitive documents? Does your agency have written accounting procedures for approving and recording transactions? Are financial records periodically compared to actual assets and liabilities to check for completeness and accuracy?  Accounting records: Does your agency maintain an adequate financial accounting system, the basic elements of which should include: (a) a chart of accounts, (b) a general ledger, (c) a cash receipts journal, (d) a cash disbursements journal, (e) a payroll journal, (f) payable and receivable ledgers, and (g) job cost journals (if involved in construction)? Does your accounting system provide reliable, complete, and up-to-date information about sources and uses of all funds? Are “trial balances” performed on a regular basis (at least quarterly)? 2008 HOME Special Needs RFP 5 May 11, 2009
    •  Allowable costs: Does your agency have a clearly defined set of standards and procedures for determining the reasonableness, allowability, and allocability of costs incurred that’s consistent with the basic Federal rules (OMB Circulars A-87 or A-122)? Does your agency know which specific types of expenditures are prohibited under the HOME program? Does your agency have an approved indirect cost allocation plan?  Source documentation: Does your agency maintain up-to-date files of original source documentation (receipts, invoices, canceled checks, etc.) for all of your financial transactions, including those involving obligations incurred and the use of any program income?  Budget controls: Does your agency maintain an up-to-date (approved) budget for all funded activities, and perform a comparison of that budget with actual expenditures for each budget category? Does your agency regularly compare progress toward the achievement of goals with the rate of expenditure of program funds?  Cash management: Does your agency have a regular procedure for accurately projecting the cash needs of the organization that will serve to minimize the time between the receipt of funds from the grantee and their actual disbursement? Can your agency ensure that all funds are used for permitted activities?  Financial reporting: Is your agency able to provide accurate, current, and complete disclosure of the financial results of each Federally-sponsored project or program in accordance with the reporting requirements of the grantee and HUD?  Audits: When was your last Independent Public Accountant (IPA) audit and what were the results? Does your agency have a copy of the management letter? If you are able to answer “yes” to all the above questions, then your agency has established a laudable degree of control over its financial affairs. If you were not able to give an affirmative answer to all of the questions, then your organization may need to modify and/or strengthen its financial management systems before pursuing HOME funds. The HOME Program operates under specific regulations and a series of USHUD Community Planning and Development Notices. The Program’s requirements are complex and detailed. Some of main Program requirements follow. Potential applicants should consider their capacity and project concept in relation to all requirements. Applicants are cautioned the following requirements are not all inclusive. It is an applicant’s responsibility to thoroughly review all Program regulations and guidance before preparing a proposal for funding to ensure their ability to comply with the Program’s rules. Eligible Project Costs A detailed discussion of eligible project costs can be found in 24 CFR part 92.206, CPD Notice 06-01, and HOME Primer Chapter 6 “Rental Housing Activities”. Generally eligible project costs include:  Construction materials and labor  Acquisition of land, site preparation  Securing of buildings  Relocation costs  Financing fees, credit reports, title binders and insurance, recordation fees  Appraisals  Architectural and engineering fees  Environmental reviews  Builder’s and developer’s fees 2008 HOME Special Needs RFP 6 May 11, 2009
    •  Affirmative marketing Prohibited Activities A detailed discussion of prohibited activities and costs can be found at 24 CFR Part 92.214 and HOME Primer Chapter 6 “Rental Housing Activities”. HOME funds cannot be used for:  Project reserve accounts or operating subsidies  Tenant-based rental assistance for the special purposes of the existing Section 8 Program  For non-federal matching contributions required under any other Federal program  To provide assistance authorized under Section 9 of the 1937 Act (Public Housing Capital and Operating Funds)  Prepayment of Low Income Housing Mortgages  Providing assistance to projects previously assisted with HOME funds during the term of affordability  Acquisition of property owned by the Participating Jurisdiction  Payment of delinquent taxes, fees or charges on properties to be assisted with HOME funds  Any costs not eligible under 24 CFR Part 92.206 through 92.20 HOME Rents A detailed discussion of HOME rents can be found at 24 CFR Part 92.252 and HOME Primer Chapter 6 “Rental Housing Activities”. The 2009 HOME program Tulsa Metro Area rents are located in the Information Appendix. All HOME-assisted rental housing must follow HOME rents for the entire term of affordability. These rents are published annually by USHUD and are enforced by deed restrictions, covenants running with the property or other mechanisms approved by DGA and USHUD. There are two types of HOME rents, high and low, that apply to two different types of income strata; households at 60%AMFI and 50%AMFI. Published HOME rents are gross rents and must be reduced if tenants pay their own utilities. Applicants are cautioned that HOME rents are often much lower than prevailing fair market rents. Therefore, gross rental income in HOME rental developments and can be problematic in relation to cash flow and the ability to debt service private financing. Income Targeting A detailed discussion of income targeting can be found at 24 CFR Part 92.216 and HOME Primer Chapter 6 “Rental Housing Activities”. All HOME-assisted rental developments must follow the Program’s income targeting requirements for the entire term of affordability. Income limits are based on the development’s location, family size and number of HOME-assisted units. The limits are published annually by USHUD and are enforced by deed restrictions, covenants running with the property or other mechanisms approved by DGA and USHUD. All HOME-assisted rental developments must target households at 60%AMFI and follow the applicable “high” HOME rent. However, in developments of five or more HOME-assisted units, at least 20% of the units must target households at 50%AMFI and follow the applicable “low” HOME rent. Additionally, developments using Section 42 Low Income Housing Tax Credit financing may be required to follow more restrictive income targeting. Tenant incomes must be recertified annually throughout the term of affordability. In instances where tenant incomes change over time, development owners may be required to take steps to maintain HOME rent and occupancy requirements. Other Federal Requirements 2008 HOME Special Needs RFP 7 May 11, 2009
    • A detailed discussion of the other federal requirements often referred to as “cross cutting federal requirements” can be found at 24 CFR Subpart H 92.350 through 92.358, 24 CFR Part 58.38, CPD Notice 01-11, and HOME Primer Chapter 6 “Rental Housing Activities”. All HOME-assisted housing is subject to broad federal rules that must be followed in the course of implementing development activities. Applicants are cautioned that failure to adhere to these requirements can result in disallowed costs and repayment of all HOME assistance. Some of the other federal requirements applicable to all HOME-assisted activities include:  Non-discrimination and equal access  Fair Housing and equal opportunity; Title VI of the Civil Rights Act of 1964, Fair Housing Act, Equal Opportunity in Housing, Age Discrimination Act of 1975  Affirmative marketing  Handicapped accessibility; Americans with Disabilities Act, Section 504  Equal Opportunity; Executive Order 11246, Section 3 of the Housing and Urban Development Act of 1968, Minority/ Women Business Enterprise  Labor requirements; Davis bacon and related acts, Contract Work Hours and Safety Standards Act, Copeland Anti- Kickback Act, Fair Labor Standards Act, procurement requirements at 24 CFR Part 84 and 85.36, conflict of interest, debarred contractors  Environmental requirements including possible mandatory participation in national flood insurance program  Site and neighborhood Standards  Lead paint; Title X of the 1992 Housing and Community Development Act (24 CFR Part 35)  Uniform Relocation Assistance and Real Property Acquisition (42 USC Chapter 61) Property Standards A detailed discussion of property standards can be found at 24 CFR Subpart F 92.251 and HOME Primer Chapter 6 “Rental Housing Activities”. All HOME-assisted rental developments must follow the Program’s property standards requirements for the entire term of affordability. Property standards are enforced by deed restrictions, covenants running with the property or other mechanisms approved by DGA and USHUD. All housing constructed or rehabilitated with HOME funds must meet city’s current construction codes found at www.cityoftulsa.org/ourcity/business/permitslicensing/codes.asp, written rehabilitation standards and accessibility requirements of the Fair Housing Act and Section 504 of the Rehabilitation Act of 1973. Additionally, all HOME-assisted new construction must also meet the Model Energy Code and site and neighborhood standards at 24 CFR Part 983.6(b). Period of Affordability A detailed discussion of the period of affordability requirements can be found at 24 CFR Part 92.252. All HOME-assisted rental units must meet the applicable activity affordability requirements based on the average amount of HOME funds invested per unit. Periods of affordability are enforced by deed restrictions, covenants running with the property or other mechanisms approved by DGA and USHUD. Activity Avg. Per-Unit HOME Investment Min. Affordability Period Rehabilitation or acquisition of Under $15,000/unit 5 years existing housing $15,000 - $40,000/unit 10 years Over $40,000 15 years Rehabilitation involving Any amount 15 years refinancing New construction or acquisition of Any amount 2008 HOME Special Needs RFP 8 May 11, 2009
    • newly constructed 20 years housing Program Income, Repayments and CHDO Proceeds A detailed discussion of program income, repayments, recaptured funds and CHDO proceeds can be found in CPD Notice 97-09. Program income is the gross income received by a nonprofit Subrecipient or unit of local government that is directly generated from the use of HOME funds including program income and matching contributions. Program income is considered federal funds and never loses its federal identity and must be used in accordance with the HOME regulations at 24 CFR Part 92. Examples of program income include but are not limited to:  Proceeds from the disposition by sale or long term lease of real property assisted with HOME funds or matching contributions  Gross income from the use or rental of real property owned by a Subrecipient or unit of local government less the costs incidental to the generation of the income  Payments of principle and interest on loans made using HOME funds or matching contributions  Proceeds from the sale of loans made with HOME funds or matching contributions  Interest earned on program income Repayments are HOME funds that result when a project is terminated before completion (either voluntarily or involuntarily) or invested in housing that fails to comply with the affordability requirements. CHDO proceeds are funds resulting from the permanent financing of a CHDO project that is used to pay off a CHDO financed construction loan; the sale of CHDO sponsored rental housing to a second nonprofit; the sale of CHDO developed homeownership housing; the principal and interest payments from a loan to a buyer of CHDO developed homeownership housing. CHDO proceeds retained by a CHDO with DGA’s permission are not subject to the requirements of the HOME regulations except for 24 CFR Part 92.300(a)(2). However, CHDO proceeds may not be contributed as match. If CHDO proceeds are retained by a CHDO a written agreement must be in place that identifies the activities that will be funded with those proceeds as well as any other requirements. Project-Related Soft Costs and CHDO Operating Expenses A detailed discussion of soft costs and CHDO operating expenses can be found in 24 CFR Part 92.207, CPD Notice 96-9. Project-related soft costs include but are not limited to: architectural, engineering or related professional services; costs to process and settle financing such as private lender origination fees; credit reports; fees for title evidence; fees for recordation; building permits; attorneys fees; appraisal fees; builders or developers fees. CHDO operating expenses consist of the reasonable and necessary costs for the operation of a CHDO and are limited to: salaries, wages and other employee compensation and benefits; employee education; training; travel; rent; utilities, communication costs; taxes; insurance; equipment; materials and supplies. Recordkeeping A detailed discussion of recordkeeping requirements can be found at 24 CFR Part 92.508 and HOME Primer Chapter 6 “Rental Housing Activities”. Rental property owners are responsible for maintaining adequate records that demonstrate compliance with HOME requirements. Records should be kept at both the project and tenant levels. 2008 HOME Special Needs RFP 9 May 11, 2009
    • Project records include but are not limited to documentation supporting rent and utility allowance calculations and the various provisions contained in written agreements. Tenant records include but are not limited to the tenant’s application and initial and subsequent income verification. Rental project records must be retained for five years after project completion. Records regarding individual tenant income verifications, project rents and project inspections must be retained for five years after the affordability period ends. Other record retention requirements may apply depending on the type of HOME funded activity, when displacement occurs and/or when litigation or other claims and issues take place. Reporting DGA will require reporting requirements for the entire term of affordability. Max HOME investment A detailed discussion of the maximum allowable HOME investment per-unit can be found at 24 CFR Part 92.250, CPD Notice 98-02 and HOME Primer Chapter 6 “Rental Housing Activities”. The total amount of HOME funds invested on a per-unit basis in affordable housing may not exceed the per-unit dollar limitations established by USHUD under Section 221(d)(3)(ii) of the National Housing Act for elevator-type projects that apply to the area in which the housing is located. The 221(d)(3)(ii) limits for Tulsa are located in the Information Appendix. The actual HOME per-unit subsidy provided depends on 3 factors:  The proportion of the total project cost that is HOME-eligible  How many units in a development are HOME-assisted  The financial needs of the project For properties with HOME-assisted and non-assisted units, applicants must select “fixed” or “floating” units. When HOME- assisted units are fixed, the specific units that are HOME-assisted and subject to the Program’s rent and occupancy requirements are designated and may never change. When HOME-assisted units are floating, the units that are designated as HOME-assisted may change over time as long as the total number of HOME-assisted units in the project remains constant. HOME Rental Unit Leases A detailed discussion of leases under the HOME Program can be found at 24 CFR Part 92.253 and HOME Primer Chapter 6 “Rental Housing Activities”. Unless by mutual agreement between the tenant and owner, HOME-assisted rental property leases must be for a minimum of one year. Leases between the owner and tenant in a HOME-assisted property cannot contain any of the following provisions:  Agreement to be sued  Agreement by the tenant that the owner may seize or sell personal property of the household members without notice  Excusing the owner from responsibility  Waiver of legal proceedings  Waiver of a jury trial  Waiver of right to appeal a jury decision  Tenant chargeable with cost of legal actions regardless of outcome 2008 HOME Special Needs RFP 10 May 11, 2009
    • Owners may terminate tenancy or refuse to renew a lease only upon 30 days written notice and only for serious or repeated violation of the terms and conditions of the lease; violation of applicable federal, state or local law; completion of the tenancy period for transitional housing or for other good cause. Owners of HOME-assisted rental housing must adopt written tenant selection policies and criteria that are:  Consistent with the purpose of providing housing for very low income and low income families  Are reasonably related to program eligibility and the applicant’s ability to perform the obligations of the lease  Provide for the selection of tenants from a written waiting list in the chronological order of their application, insofar as is practicable  Give prompt written notification to any rejected applicant of the grounds for any rejection Managing On-going Compliance To maintain long term compliance with the HOME Program's rental requirements, property owners must ensure:  Properties are marketed to qualified applicants  Tenants are screened for eligibility  Rent and occupancy requirements are observed  Adequate property maintenance is conducted When hiring a third party management company, owners should select firms with prior experience in managing HOME- assisted developments. When self managing, owners should ensure staff receive adequate initial and on-going training in the HOME Program’s rental requirements. Match A detailed discussion of the HOME Program match requirements can be found at 24 CFR Part 92.218 through 92.222, CPD Notice 97-03 and HOME Primer Chapter 6 “Rental Housing Activities”. All applicants for HOME funds are required to demonstrate and document 25% non-federal match resources and commitments. All applicants are cautioned that securing eligible matching contributions can be difficult and most often must be derived from multiple sources. Eligible sources of match are limited by regulation to the following:  Cash or cash equivalents from non-federal sources  The value of waived taxes, fees or other charges associated with HOME projects  The value of donated land or real property  The cost of infrastructure improvements associated with HOME projects  A percentage of the proceeds of single or multi-family housing bonds issued by state, state instrumentalities or local governments  The value of donated materials, equipment, labor and professional services  Sweat equity  Direct costs of supportive services to residents of HOME projects  Direct cost of homebuyer counseling to families purchasing homes with HOME assistance Ineligible sources of match include:  Match counted for other federal programs  Community Development Block Grant funds  Other federal grant funds  Funds raised through IRS Section 42 Low Income Housing Tax Credits  Interest rate subsidies attributable to federal tax-exempt financing  Owner equity  Cash contributions from investors, applicants for or recipients of HOME assistance 2008 HOME Special Needs RFP 11 May 11, 2009
    •  Expenditures on program administration Applicants will find the following web links useful in gathering information regarding the HOME regulations, CPD Notices, HOME Primer and other HOME guidance:  http://www.hud.gov/offices/cpd/affordablehousing/programs/home/index.cfm  http://www.hud.gov/offices/cpd/affordablehousing/lawsandregs/notices/  http://www.hud.gov/offices/cpd/affordablehousing/library/homefires/index.cfm  http://www.hud.gov/offices/cpd/affordablehousing/library/modelguides/  http://www.hud.gov/offices/cpd/affordablehousing/programs/home/limits/rent/  http://www.hud.gov/offices/cpd/affordablehousing/programs/home/limits/income/  http://www.hud.gov/offices/cpd/affordablehousing/lawsandregs/fedreq/  http://www.hud.gov/offices/cpd/affordablehousing/programs/home/match/  http://www.hud.gov/offices/cpd/affordablehousing/training/materials/building/index.cfm  http://www.hud.gov/offices/cpd/affordablehousing/programs/home/greenhome/  http://www.resnet.us/directory/raters.aspx Application Questions Applicant questions regarding this RFP can be directed in writing to Nancy Robbins, Department of Grants Administration, City of Tulsa, 175 E. Second Street, Suite 480, Tulsa, OK 74103 or by phone 918-596-2605 (phone), fax 918-699-3523 or e-mail nancyrobbins@cityoftulsa.org Application Format and Instructions All applications must be typed (no less than 12 point font), single spaced on 8½” x 11" paper, bound in a three ring binder tabbed according to Basic Eligibility and Rating Criteria. All application pages must be sequentially numbered within each tab. Supporting documents must be appear at the end of the Tab in which they are referenced and labeled as numbered exhibits. For example Exhibit #1, Exhibit #2, etc. All components of this RFP must be provided. If an item is not applicable, it should be designated “Not applicable”. Applicants are required to submit one signed original application and five (5) copies. Application Submission Checklist Basic Eligibility Criteria Tab #1 Rating Criteria Organizational Structure and Experience Tab #2 Income Targeting Tab #3 Leverage Tab #4 Ability to Further Reduce Development Costs Through Excess Match Contributions Tab #5 Energy Efficient Construction Tab #6 2008 HOME Special Needs RFP 12 May 11, 2009
    • Revitalization Target Area Focus Tab #7 Tie Breaker Tab #8 2008 HOME Special Needs RFP 13 May 11, 2009
    • Basic Eligibility Tab #1 2008 HOME Special Needs RFP 14 May 11, 2009
    • Tab #1: Basic Eligibility Applicant Information Applicant Name: Mailing Address: City: County: State Zip Code: Phone #: Fax #: E-mail address: Federal Employer Identification Number: DUNs Number:____________ Applicant’s Official Authorized Signatory: Name of primary contact person: Address of primary contact person: Phone #: Fax #: E-mail address: Applicant is: (Check one) Public Agency:____________ Non-Profit: City of Tulsa Certified CHDO________ Location of project (address and legal description): _________________________________________________________ __________________________________________________________________________________________________ ____________________________________________________________________________________________ Funding Request Information: Total HOME Funds Requested (hard and soft cost): $__________ Total match obligation: $________ 2008 HOME Special Needs RFP 15 May 11, 2009
    • Project Description 1. Provide a detailed description of the proposed project by responding to the items that follow. Project description information will be used to determine compliance with the HOME requirements. 2. Indicate whether the proposed project is for permanent or transitional housing and the type of activity to be undertaken. For example, rental new construction, rental conversion, single family acquisition/rehabilitation/rental. 3. Indicate whether the applicant will be entering a formal partnership with another entity to develop, own and operate the proposed rental project. If partnering with another entity, describe how the applicant will assure they are the general partner or member with at least 51% of the voting majority over the use of HOME funds and support the explanation with draft partnership agreement provided as a numbered exhibit under Tab #1. 4. Indicate the total number and type of units in the project number including bedroom mix, total number of HOME- assisted units and whether HOME-assisted units will be fixed or floating. Applicants are referred to CPD Notice 98-02. 5. Indicate whether the proposed project will consist of less than 100% HOME-assisted units. If the project is composed of less than 100% HOME-assisted units, the applicant must delineate how the number of HOME- assisted units was calculated. Applicants are referred to CPD Notice 98-02. 6. Describe how the term of affordability and resale provisions will be enforced and how long the term of affordability will be. 7. What construction code will be used? 8. If the proposed development will require temporary or permanent relocation, how will the applicant assure compliance with the Uniform Relocation Assistance Act? 9. Indicate whether the project is expected to generate Program Income. If the project will generate Program Income, describe how that Program Income will be tracked in accordance with 24 CFR Part 92.503, CPD Notice 97-9 and returned to the City. 10. Indicate whether the project is expected to generate CHDO Proceeds. If the project will generate CHDO Proceeds indicate whether applicant wants to retain CHDO Proceeds and how those Proceeds will be tracked and reused in accordance with CPD Notice 97-9. 11. Describe any tenant appropriate supportive services that will be provided. Document supportive services with written commitments from providers as numbered exhibits under Tab #1. 12. Provide a production schedule of no more than 24 months identifying all major phases of the proposed project as a numbered exhibit under Tab #1. 13. Describe how the project will meet the City’s location policy. The city’s location policy is provided under the Information Appendix. 2008 HOME Special Needs RFP 16 May 11, 2009
    • CITY OF TULSA-DEPARTMENT OF GRANTS ADMINISTRATION HOME Certifications Form The Applicant certifies that: 1. It is using and will use HOME funds for eligible activities and costs, as described in 24 CFR § 92.205 through 92.209 and that it is not using and will not use HOME funds for prohibited activities, as described in § 92.214. 2. Before committing any funds to a project, it will evaluate the project in accordance with the guidelines that it adopts for this purpose and will invest a minimum of $1,000 and not invest any more HOME funds in combination with other Federal assistance than is necessary to provide affordable housing. 3. It has identified non-federal match at or above the required 25% of the grant allocation amount. 4. It understands that failure to provide any of the documentation necessary to support the information in this application may result in the return of all HOME Program funds, both expended and unexpended. 5. It understands that in the event a HOME funding award is made, the content of the application shall be incorporated as part of the contract and, as such, will be used to monitor performance. Activities, commitments, and representations offered in the application that are not subsequently made a part of the project as funded, shall be considered a material contract failure, and may result in a repayment of all HOME funds and/or suspension from Program participation. 6. Applicant understands and will comply with the requirements of Title VI of the Civil Rights Act of 1964, As Amended (42 U.S.C. 2000d et. seq.); The Fair Housing Act (42 U.S.C. 3601-3620); Equal Opportunity in Housing (Executive Order 11063, as amended by Executive Order 12259; and the Age Discrimination Act of 1975, As Amended (42 U.S.C. 6101). 7. Applicant understands and will comply with the HOME Program requirements for Affirmative Marketing on any project with five or more HOME-assisted units. 8. Applicant understands and will comply with the requirements of the Americans with Disabilities Act (42 U.S.C. 12131; 47 U.S.C. 155,201,218, and 225); the Fair Housing Act (42 U.S.C. 3601-19); and Section 504 of the Rehabilitation Act of 1973. 9. Applicant understands and will comply with the requirements of Equal Employment Opportunity (Executive Order 11246, as Amended); Section 3 of the Housing and Urban Development Act of 1968; and Minority/Women’s Business Enterprise (Executive Orders 11625, 12432 and 12138). 10. Applicant understands and will comply with the requirements of the Davis-Bacon Act and Related Acts (40 U.S.C. 276(A)-7); the Contract Work Hours and Safety Standards Act, as Amended (40 U.S.C. 327-333); the Copeland (Anti- Kickback) Act (40 U.S.C. 276c); and the Fair Labor Standards Act of 1938, as Amended (29 U.S.C. 201, et. seq.). 11. Applicant understands and will comply with the contracting and procurement requirements of the HOME Program. 12. Applicant affirms that no person who is an employee, agent, consultant, or officer of the Applicant who could exercise any functions or responsibilities with respect to any activity assisted with HOME funds, or who would be in a position to participate in a decision-making process or gain inside information with regard to any HOME-assisted activity, will obtain a financial interest or benefit from any HOME-assisted activity, or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter. 2008 HOME Special Needs RFP 17 May 11, 2009
    • 13. Applicant understands and will comply with the requirements of the Environmental Review process for the HOME Program, including the requirements of 24 CFR Part 58 and CPD Notice 01-11. 14. Applicant understands and will comply with Section 202 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4106). 15. For any new construction of rental housing units, the Applicant will provide housing that is suitable from the standpoint of facilitating and furthering full compliance with the applicable provisions of Title VI of the Civil Rights Act of 1964, the Fair Housing Act and Executive Order 11063, and HUD regulations issued pursuant thereto, as well as ensuring that the proposed sites for new construction meet the requirements in 24 CFR 983.6(b). 16. Applicant will ensure that all units in a project assisted with HOME funds comply with 24 CFR Part 35 regarding the lead-based paint requirements for HUD-assisted housing. 17. Applicant understands and will comply with the provisions of the Uniform Relocation Act on all HOME projects involving acquisition, rehabilitation, conversion or demolition. 18. Applicant has written policies and procedures in place to provide for the following: a) Tracking expended and unexpended HOME funds b) Tracking of program income or CHDO proceeds, if applicable c) Properly maintaining source documentation of expenditures d) Tracking of match liability and credit e) Applicant has written policies and procedures in place to ensure that all expenditures are eligible, reasonable, and properly documented. f) Applicant has written policies and procedures in place to ensure proper control of records and documents. g) Applicant has written policies and procedures in place and adequate staff to ensure separation of duties. h) Applicant has adequate internal controls in place to ensure proper maintenance and disbursement of the HOME funds. i) Applicant certifies that it will comply with the following, as indicated (check one): _____ (Nonprofit Subrecipient) OMB Circular No. A-122, A-110, and A-133 and 24 CFR Parts 84.2, 84.5, 84.3, 84.16, 84.21, 84.22, 84.26, 84.28, 84.30, 84.31, 84.34, 84.37, 84.40, 84.48, 84.51, 84.60, 84.62, 84.72 and 84.73. _____ (CHDO) 24 CFR Part 84.43. 19. Religious Entities: Applicants that are religious entities understand and will comply with the following: (a) The organization will not discriminate against any employee or applicant for employment on the basis of religion and will not limit employment or give preference in employment to persons on the basis of religion. (b) The organization will not discriminate against any person applying for such public services on the basis of religion and will not limit such services or give preference to persons on the basis of religion. (c) The organization will provide no religious instruction or counseling, conduct no religious worship or services, engage in no religious proselytizing, and exert no other religious influence in the provisions of such public services. All of the information contained in this application for funding through the Home Investment Partnership Program (HOME) is true and accurate to the best of my knowledge; that all documentation supporting the information in this application is on file in the Applicants office, available for review by the City of Tulsa staff during normal business hours; that any misstatement or falsification of information shall be grounds for cancellation of the contract and recapture of all expended and unexpended HOME funds; and, the application’s submission has been duly authorized by the governing body of: 2008 HOME Special Needs RFP 18 May 11, 2009
    • I certify that the above statements are true and correct to the best of my knowledge and belief. I understand Name of Agency __________________________________________ Signature/Authorized Official Date (Should be Board of Directors Chairperson or President) ______________________________________________________________________ Signature of Authorized Representative Title ______________________________________________________________________ Printed Name Date _____________________________________________________________________ Signature of Preparer if Different Title than Authorized Representative ______________________________________________________________________ Printed Name Date Notary Seal NOTARY INFORMATION: 2008 HOME Special Needs RFP 19 May 11, 2009
    • NOTARY SIGNATURE 2008 HOME Special Needs RFP 20 May 11, 2009
    • Fiscal Management Applicant is a non-federal entity that expends $500,000 or more per year in Federal awards and is required to have a single or program-specific audit conducted for that year in accordance with OMB Circular No. A-133 “Audits of States, Local Governments, and Non-Profit Organizations” Yes ______ No _______ If yes, has applicant provided the City of Tulsa with its most recent audit? Yes _____ No _______ If no, include audit in Tab #1 as an exhibit. Applicant’s audit, financial statement or balance sheet and income statement reflecting the current financial position of the applicant and contain no unresolved findings, reportable conditions, deficiencies or program compliance issues. Yes _____ No _____ If no, describe in detail the unresolved findings, reportable conditions, deficiencies or program compliance issues and all corrective actions taken. __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ Match Provide a detailed description of all sources and amounts of non-federal matching resources to be used in the proposed project and support each source of match with signed written commitments as exhibits in Tab #1. Match commitments must indicate the type of match being provided, amount, use in project and timing of resource availability. Match commitments must indicate the type of match being provided, amount, use in project and timing of resource availability. Applicants proposing discounted or donated land as a source of match, a third-party, independent appraisal must be provided along with a letter from the seller/donator acknowledging the discount or donation as their contribution to affordable housing. Source Calculation Amount Total 2008 HOME Special Needs RFP 21 May 11, 2009
    • Monitoring and Performance History Has the applicant organization received HOME funds from the city of Tulsa in the prior three years? Yes_________ No_______ If yes, list contract numbers: _________________________________________ Does the applicant have unresolved monitoring findings from previous open or closed DGA HOME or CDBG contracts? Yes ______ No________ If yes, provide a detailed description of the findings and corrective actions taken to date. __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ ______________________________________________________________________________________ Does the applicant have any open DGA HOME contracts over two years old that are not 100% expended and closed out? Yes _______ No ______ If yes, what is the contract(s) number? ______________________________________________________ Project Status Does the applicant have site control of the property to be used in the development of special needs transitional or permanent rental housing? Yes _____ No _____ If yes, check the form of site control and provide documentation as a numbered exhibit under Tab #1. Fee simple title____ Warranty deed _____ Purchase contract or purchase option_____ If the applicant does not have site control, provide a detailed explanation indicating the plan to obtain site control within 120 days of grant award. __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ Does the applicant have preliminary floor plans and elevations or preliminary specifications for the proposed project? Yes _____ No______ If yes, provide as a numbered exhibit under Tab #1. If no, provide a detailed explanation indicating when preliminary floor plans and elevations or preliminary specifications for the proposed project will be developed. __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ 2008 HOME Special Needs RFP 22 May 11, 2009
    • Is zoning appropriate to the proposed project in place? Yes _______ No _______ If yes, provide documentation of proper zoning as a numbered exhibit under Tab #1. If no, provide a detailed timeline indicating the major steps to be taken to achieve proper zoning. __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ Market Study Is the proposed project for permanent rental housing with less than 20 total units? Yes _____ No _____ If yes, provide a data-based analysis demonstrating demand for the type and amount of housing proposed as a numbered exhibit under Tab #1. Is the proposed project for permanent rental housing with 20 or more total units or permanent rental housing financed with Section 42 Low Income Housing Tax Credits? Yes _____ No ______ If yes, provide a third party independent market analysis performed by a licensed analyst not affiliated with the applicant or developer as a numbered exhibit under tab #1. Is the proposed project transitional rental housing? Yes _____ No _____ Site and Neighborhood Standards Review Does your proposed transitional or permanent rental housing project involve new construction? Yes _____ No _____ If yes, provide a Site and Neighborhood Standards Review addressing each of the required elements in Title 24 Section 983.6 as a numbered exhibit in Tab #1. The Title 24 Section 983.6 required elements are located in the Information Exhibit. Financing and Financial Commitments Provide a development budget that includes all sources and uses of funds as a numbered exhibit under Tab #1. Provide rent and expense assumptions, an operating expense budget and 15 year proforma as numbered exhibits under Tab #1. Delineate whether utilities are included in the rent total by footnoting below the rent and expenses tables and showing calculation of net monthly HOME rents. If your organization is a City of Tulsa certified Community Housing Development Organization requesting CHDO operating funds, provide an operating budget as a numbered exhibit under Tab #1. 2008 HOME Special Needs RFP 23 May 11, 2009
    • Provide written commitments for all sources of funding presented in the development budget as a numbered exhibit under tab #1. Projects relying on Section 42 Low Income Housing Tax Credit financing that do not have an award of credits at the time of their HOME application submission, may provide a projected time table detailing when credits will be awarded in lieu of a written commitment for credits. All income should be included in the proforma; the rate of increase for income should be no higher than 3% per year; all cash expenses should be included; expenses should be trended higher than income; vacancy rates should be no lower than 5% on an annual basis; and property management fees should be approximately 5% to 7% of gross rents. Total development costs must equal the total for all sources of funding. Operating budget cash flow must demonstrate sufficient revenues to pay for all on-going expenses and debt. When permanent or term loans are used in connection with HOME funds a minimum debt coverage ratio of 1.15 must be maintained for 15 years. Soft cost, builder profit, and developer fee limitations are located on page 2 of this Request for Proposal. Eligible project hard and soft costs can be found in 24 CFR part 92.206, CPD Notice 06-01, HOME Primer Chapter 6 “Rental Housing Activities” and the Information Appendix. A sample development budget, rent and expenses assumption tables, proforma and CHDO operating budget are provided in the Information Appendix. These samples contain the minimum required detail. Applicants may use the samples or their own budgets provided, at a minimum, they contain the same level of detail as the samples. 2008 HOME Special Needs RFP 24 May 11, 2009
    • Rating Criteria 2008 HOME Special Needs RFP 25 May 11, 2009
    • Tab #2: Organizational Structure and Experience -- 30 Points Provide responses and supporting documentation regarding the items below. 1. Provide an organizational chart for the applicant entity that includes all housing personnel and positions as a numbered exhibit under Tab #2. 2. Provide a description of the overall organization’s experience and individual staff persons’ experience (by name and job title) in the use of HOME rental activity funds, including number of years of direct experience in the HOME Program and the number of HOME contracts awarded and successfully completed. 3. Describe staff and organizational experience related to transitional or permanent rental housing development using other federal affordable housing resources. 4. Using the table below, list the names and job titles of all staff persons responsible for the implementation of HOME rental activities. Names Job Titles Areas of Responsibility Years of Experience Overall project coordination and contract administration, Fair Housing, Affirmative Marketing, M/WBE, Equal Opportunity, Section 3, contracting and procurement Daily project oversight and project production, administration, project file maintenance, activity set-ups, environmental review, reimbursement and project completion reports, lead based paint hazards, Fair Housing, Affirmative Marketing, M/WBE, supervision of subcontractors, historical review and clearance, Labor requirements, relocation, site and neighborhood review standards, handicapped accessibility, project closeouts and reporting Maintains books and financial records, processes accounts payable and receivable, validates invoices, prepares monthly Program expenditure reports, project closeouts and reporting Conducts residential inspections of assisted properties 5. Describe how and where all records and materials pertaining to the HOME contract will be maintained. 2008 HOME Special Needs RFP 26 May 11, 2009
    • Tab #3: Income Targeting – 10 Points Provide responses to the items below and complete the income targeting certification. 1. Total number of HOME-assisted units in proposed project: _________ 2. Total number of HOME-assisted units targeted to households at and below 30%AMFI  2% of the HOME-assisted units targeted to households at or below 30%AMFI  3% to 4% of the HOME-assisted units targeted to households at or below 30%AMFI  5% or more of the HOME-assisted units targeted to households at or below 30%AMFI I hereby certify _______% of the total HOME assisted units will target households at and below 30%AMFI throughout the applicable period of affordability. _______________________________________________ Name and Title 2008 HOME Special Needs RFP 27 May 11, 2009
    • 2008 HOME Special Needs RFP 28 May 11, 2009
    • Tab #4: Leverage -- 20 Points Provide responses to the items below. 1. Total development cost: $__________________ 2. Total leverage resources documented under Basic Eligibility, Tab #1: $_________________ Leverage Scale 5% to 15% 16% to 25% 26% to 30% 31% or more No rounding will apply in the calculation of the leverage percentage. Reminder: Leverage resources must be documented with written commitments under Basic Eligibility Criteria in Tab #1: “Financing and Financial Commitments”. Tab #5: Ability to Further Reduce Development Costs Through Excess Match Contributions -- 20 Points Provide responses to the items below. 1. Total HOME hard and soft cost request: $________________ 2. 25% regulatory match obligation documented under Basic Eligibility, Tab #1: $_______________ 3. Total match resources in excess of the 25% regulatory match obligation documented under Basic Eligibility, Tab #1: $_______________________ Excess Match Scale 26% to 28% 29% to 30% 31% to 32% 33% or more No rounding will apply in the calculation of the excess match percentage. Tab #6: Energy Efficient Construction -- 10 Points Provide responses and supporting documentation regarding the items below. 1. Have “Energy Star” qualified products and standards for building performance been incorporated to the construction or rehabilitation of the proposed HOME rental dwellings? Yes _______ No _______ 2008 HOME Special Needs RFP 29 May 11, 2009
    • 2. If yes, provide third-party Home Energy Rating Systems (HERS) verification as a numbered exhibit under Tab #7. 2008 HOME Special Needs RFP 30 May 11, 2009
    • Tab #7: Revitalization Target Area Focus – 10 Points Provide responses and supporting documentation regarding the items below. 1. Will your proposed project be undertaken in one or more of Tulsa’s rrevitalization target areas? Yes ______ No ______ 2. If yes, state target areas, provide development site addresses and document with one or more maps of development sites designated as a numbered exhibit under Tab #8. Tab #8: Tie Breaker In the event of a tie score between applicants and there are insufficient HOME resources to fund all tied applications, those applications will be rank ordered based on lowest combined HOME hard and soft costs per unit. Remaining HOME funds will be awarded using this process until exhausted. Applicants do not need to submit information for this criterion. Staff will extract the data needed to make the determination based on the information contained in applicant’s development and soft costs budgets presented under Basic Eligibility, Tab #1. 2008 HOME Special Needs RFP 31 May 11, 2009
    • INFORMATION APPENDIX City of Tulsa Location Policy The location policy is designed to promote housing opportunities for lower income and minority households, encourage dispersal of assisted housing throughout the community, assure the availability of public facilities and services, and avoid the creation of new lower income and minority concentrations as a result of local, State or Federal housing programs. Applicable Federal, State and local fair housing and equal opportunity policies will be addressed in implementing the five- year strategy. The City encourages mixed income developments (more than half of the units are leased to those earning above 60% of the median family income) for any future general occupancy project-based developments. The City would consider, on a case by case basis, supporting development proposals, which offer such a mix. In an effort to disperse assisted housing, no more than 10% of the housing units in a Planning District or Sub-District should be assisted by project-based subsidy programs, including tax exempt bond financed and Low Income Housing Tax Credit financed multifamily developments, exclusive of housing for the elderly and disabled (e.g. Section 202, Section 811, Shelter Plus Care, Section 8 Single Room Occupancy). No more than a total of 40 project-based general occupancy units shall be within 1/2 mile of the proposed development. For additional information, refer to the Subsidized Housing by Planning District Table and Location of Assisted Complexes map, which follow. 2008 HOME Special Needs RFP 32 May 11, 2009
    • Project/site selection processes should be tailored to provide a priority for selection of proposed developments within those Planning Districts and Sub-Districts with less than 5% project-based general occupancy assisted housing. Every effort should be made to ensure that assisted housing units are dispersed among the various Planning Districts for individual subsidy programs. In addition, project selection processes should be designed to encourage sponsors to coordinate project proposals with appropriate neighborhood organizations and with surrounding neighborhood uses. 2008 HOME Special Needs RFP 33 May 11, 2009
    • 2009 Tulsa Metro HOME Program - Income Limits Income 1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person 8 Person Limit 30% Limits 12100 13850 15550 17300 18700 20050 21450 22850 Very Low 20150 23050 25900 28800 31100 33400 35700 38000 50% Income Limits 60% Limits 24180 27660 31080 34560 37320 40080 42840 45600 Low 80% 32250 36900 41500 46100 49800 53500 57150 60850 Income Limits 2009 Tulsa Metro HOME Program Rents Rent Efficiency 1 BR 2 BR 3BR 4BR 5BR 6BR Low HOME 503 540 647 748 835 921 1008 Rent High 532 578 707 934 964 1109 1205 HOME Rent 2009 Tulsa Section 221(d)(3)(ii) Limits # of Tulsa-185% Bedroom(s) 0 94,089 1 107,855 2 131,152 3 169,667 4+ 186,243 2008 HOME Special Needs RFP 34 May 11, 2009
    • Minimum Content Requirements for All Data-based and Third Party Independent Licensed Market Analyses 1. A map and a description of the proposed site including physical features of the property, streets, site access and availability of utilities, community facilities, proximity to local schools and parks, transportation and shopping 2. An evaluation of the need for affordable housing within the market area including a review of economic and employment factors such as population growth trends, development and activity, industry, major employers, and labor force 3. An assessment of the current housing supply type, quantity, unit mix, location, age, condition, occupancy levels, and housing cost overburden statistics 4. A description of the potential effect on the occupancy rates of other comparable properties in the market area 5. A description of rents and vacancy rates of comparable housing 6. An identification of the number of households in the market area that are of the appropriate age, income and size for the proposed activity 7. A calculation of the capture rate by dividing the total number of units in the project by the total number of age, size and income-qualified renter households in the primary market area 8. The expected market absorption of the proposed housing TITLE 24 Sec. 983.6 Site and Neighborhood Standards Required Elements All rental new construction site and neighborhood standard reviews must address each of the following elements:  Describe how the site must be adequate in size, exposure, and contour to accommodate the number and type of units proposed, and whether adequate utilities (water, sewer, gas, and electricity) and streets are available to service the site.  Describe how the site and neighborhood are suitable from the standpoint of facilitating and furthering full compliance with the applicable provisions of title VI of the Civil Rights Act of 1964, the Fair Housing Act, Executive Order 11063, and implementing HUD regulations.  Indicate whether the site is located in an area of minority concentration. If it is in an area of minority concentration describe how it will avoid causing a significant increase in the proportion of minority to non-minority residents in the area.  Describe how the site promotes greater choice of housing opportunities and avoids undue concentration of assisted persons in areas containing a high proportion of low-income persons.  Describe whether the neighborhood is seriously detrimental to family life or one in which substandard dwellings or other undesirable conditions predominate. If it is an area seriously detrimental to family lie or one in which substandard dwellings or other undesirable conditions predominate, describe whether there is an active and concerted program to remedy the undesirable conditions.  Describe the site’s accessibility to social, recreational, educational, commercial, and health facilities and services, and other municipal facilities and services that are at least equivalent to those typically found in neighborhoods consisting largely of unassisted, standard housing of similar market rents.  Describe how travel time and cost from the site by public transportation or private automobile to places of employment providing a range of jobs for lower-income workers is not excessive. (This requirement does not apply to rental new construction for elderly persons) 2008 HOME Special Needs RFP 35 May 11, 2009
    • Eligible HOME Hard and Soft Costs The following is guidance only. Refer to HOME Regulations at 24 CFR Part 92.206 and 92.207, CPD Notice 96-9 “Administrative costs, project-related soft costs and CHDO operating expenses” and “Building HOME; A Program Primer Rental Housing Activities” for additional detail. Hard Costs – Eligible hard costs include, but are not limited to: • Costs to meet local construction and/or rehabilitation standards. • Acquisition of land and existing structures. • Securing of buildings. • Construction materials and labor. • Essential improvements. • Energy-conservation efficient improvements, if undertaken within a more comprehensive plan of work that brings the unit up to local property standards and the written rehabilitation standards established below and delineated in the Regulations. • Lead based paint hazard reduction, if undertaken within a more comprehensive plan of work that brings the unit up to local property standards and the written rehabilitation standards established below and delineated in the Regulations. • Accessibility for persons with disabilities, if undertaken within a more comprehensive plan of work that brings the unit up to local property standards and the written rehabilitation standards established below and delineated in the Regulations. • Repair or replacement of major housing systems in danger of failure. • Incipient repairs and general property improvements of a non-luxury nature. • Demolition. • Site improvements and utility connections. • Lot clearing, prior to and in conjunction with rehabilitation. Soft Costs – Capped at 15% of the total HOME hard and soft costs – Reasonable and necessary costs directly related to an individual unit. All soft costs must be a part of the total development costs. Soft costs must be specifically tied to an address. Eligible soft costs include, but are not limited to: • Developer fees. • Financing fees. • Credit reports. • Title binders and insurance. • Recordation fees, transaction taxes. • Legal and accounting fees. • Appraisals. • Architectural/engineering fees, including specifications and job progress inspections. • Refinancing of secured existing debt if the housing is owner occupied and refinancing allows the overall costs of borrower to be reduced and the housing is made more affordable. • Work write-ups and cost estimates. • Building permits; contractor fees. • Temporary relocation costs and fair housing information services. • Environmental Review. CHDO Operating Expenses – Capped at $50,000 per year - Reasonable and necessary costs for the operation of a CHDO and are limited to: salaries, wages and other employee compensation and benefits; employee education; training; travel; rent; utilities, communication costs; taxes; insurance; equipment; materials and supplies. 2008 HOME Special Needs RFP 36 May 11, 2009
    • Sample Development Budget Other Other Other Funds Funds Funds (specify) (specify) (specify) Hard Construction Costs HOME ACQUISITION MOBILIZATION, PLANS, PERMITS DEMOLITION, SITE PREP PLUMBING FOOTING, SLAB ELECTRICAL WIRING HEAT & AIR WINDOWS SET ROOFING (CERT) EXTERIOR DOORS SET WALL INSULATION STUCCO, MASONRY, SIDING EXTERIOR PAINTING SHEETROCK, PLASTER INTERIOR TRIM & DOORS INTERIOR PAINTING CABINETS & COUNTER TOPS PLUMBING FIXTURES EXTERIOR CONCRETE WORK VINYL / CERAMIC FLOORING CARPETING & OTHER APPLIANCES ATTIC INSULATION ALARM FINAL GRADE & LANDSCAPE CONSTRUCTION CONTINGENCY TOTAL HARD COSTS Soft Construction Costs DEVELOPER FEE CLOSING COSTS FILING FEESTRANSACTION TAXES ENVIRONMENTAL CLEARANCE DRAW INSPECTIONS APPRAISALS MARKETING TOTAL SOFT COSTS (15%) 2008 HOME Special Needs RFP 37 May 11, 2009
    • TOTAL REHABILITATION COSTS 2008 HOME Special Needs RFP 38 May 11, 2009
    • HOME Other Match (25%) Hard Costs Construction materials & labor Acquisition land & existing structures HOME downpayment assistance ADDI down payment assistance Site prep or improvement including demolition Securing buildings Subtotal Soft Costs Finanacing fees Credit reports Title binders & insurance Surety fees Recordation fees, transaction taxes Legal & accounting fees, including cost certification Appraisals Arch./engineering fees, including specs. & job progress inspections Environmental review Builder/developer fees Affirmative marketing & marketing costs Homebuyer ed./counseling to HOME-assisted buyers Management fees Other costs directly related to specific project Subtotal Relocation Costs Replacement housing, moving costs & out-of-pocket expenses Advisory services Staff & overhead related to relocation assistance and services Subtotal Project Cost Total 2008 HOME Special Needs RFP 39 May 11, 2009
    • Sample Rent and Expense Assumption Tables RENT AND EXPENSE ASSUMPTIONS RESIDENTIAL RENTS Net Monthly HOME Ann. Unit Type # Units Rent Rent Efficiency 1 Bed 2 Bed 3 Bed TOTAL High HOME Rent limits=$_______ less $_______ tenant paid utility allowance= Net HOME Rent $______ RESIDENTIAL ASSUMPTIONS Percent Rent Inc./Year Op Cost Inc./Year Reserves Inc./Year Vac. Year 1 Vac. Year 2 Vac. Year 3 & Future 2008 HOME Special Needs RFP 40 May 11, 2009
    • Sample Operating Expense Budget OPERATING EXPENSES TOTAL Per Unit Management Fee Advertise/Market Legal Administrative Utilities Trash Maintenance/Repairs Grounds Real Estate Property Tax Insurance Other Total Operating Expenses Replacement Reserves Other Total Operating Exp. and Reserves 2008 HOME Special Needs RFP 41 May 11, 2009
    • Sample Proforma PRO FORMA (page 2 of 5) PRE-TAX CASH FLOW REVENUES YEAR 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 ______________________________ ____________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Gross Residential Rent 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 +Other Income 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - Residential Vacancy 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 = Residential Income 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Gross Commercial Rent 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 + Tenant Contributions 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 = Commercial Rent 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - Commercial Vacancy 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 =Commercial Income 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 = Effective Gross Income 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Operating Expenses Management Fees 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Advertise/Market 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Legal/Administrative 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Utilities and Trash 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Maintenance/Repairs and Grounds 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Real Estate Property Tax 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Insurance 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 = Total Operating Expenses 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - Transfer to Reserves 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - Other Expenses 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 = Net Operating Income 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - Debt Service (p+i) bank 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - Other Debt Service (p+i) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - Interest Only Loan Payments 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - Debt Service - Deferred Loans 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - Debt Service (p+i) Developer 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - Debt Service -CF Loan 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 = Cash Flow 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - Partnership Management Fees - Incentive Management Fees = Cash Flow Available for 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Distribution 2008 HOME Special Needs RFP 42 May 11, 2009
    • Sample CHDO Operating Budget CHDO Operating Line Item HOME Application OHEA Development Fees Unrestricted Total Budget Budget Fees & Revenue Agency Revenue Executive Director (??%) Housing Director (??%) Assoc. Housing Director (??%) Financial Officer (??%) Bookkeeping (??%) Housing Specialist (??%) Total Salaries FICA (??%) Workers Comp Unemployment Retirement Health Insurance Total Fringe Local Travel (????? miles x current federal mileage rate) Out of Area Travel (?? trips @ $??) Out of State Travel (? trips @ $???) Total Travel Training Staff Training Consultant Audit Office Supplies Office Rent (??? sq ft x $???/sq ftx12 mo) Storage ($??? x 12 mo) Utilities ($???/mo x 12 mo) Office & Cell Phones/Internet Cleaning Supplies Legal Filing Fees Office Equipment Leased Equipment Equipment Maintenance Building Maintenance Building Insurance Materials General Liability Insurance Position Bond Insurance Directors Liability Insurance Professional Consultants Postage Printing Advertising Bank Fees Publications/ Subscriptions Software Software Maintenance Membership Dues Total Other Costs Grand Totals Tulsa Target Areas 2008 HOME Special Needs RFP 43 May 11, 2009