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UNIFIED FUNDING 2016

This agenda provides an overview of the Unified Funding 2016 program, including information on available funds, schedule, and application materials. It also highlights new initiatives and subsidy programs, as well as important updates and requirements. Visit our website for more information.

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UNIFIED FUNDING 2016

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  1. UNIFIED FUNDING 2016

  2. Agenda • Welcome • What’s New? • General Overview: - Program Funds Available - Schedule - Application Materials www.nyshcr.org

  3. Agenda • UF Review Process • Early Awards • UF 2016 Funding Pilot/Initiative • Program Information • New Subsidy Programs • Existing Subsidy Programs • Section 3 • M/WBE Applicability • Credit Programs www.nyshcr.org

  4. Agenda • Underwriting • Architecture & Engineering • Fair and Equitable Housing Office • Technical Assistance • Questions & Answers www.nyshcr.org

  5. What’s New? • Supportive Housing Opportunity Program (SHOP) • New Capital Application Deadlines • Be aware of submission deadlines. For both Early Rounds, CDOL will still be open for the Standard Round and therefore Early Round applications submitted after the deadline will show as accepted. However, all applications are time stamped and Early Award applications submitted after 5:00 PM EST on the respective due date will be considered as part of the Standard Round. • SADDA’s • Empire State Supportive Housing Initiative Projects (ESSHI) Set Aside • Historic Buildings • Brownfield and Historic Tax Credit Worksheets www.nyshcr.org

  6. What’s New? • Davis Bacon Worksheet • Green Building Scoring Option • Developer Allowance for non-LIHC/SLIHC projects • Increase in cash flow limits for projects w/no conventional bank loan • Clarification on locally undesirable land uses – proximity to rail lines • Marketing Plan/Public Housing Waitlist – no HCV’s www.nyshcr.org

  7. What’s New? • Early Award NYC projects have 180 days to get to construction start rather than 150 days • Capital Programs Manual Update • Projects requesting both LIHC and HOME MUST use HOME as construction financing • HAP contract term increased from 15 to 20 years • FHEO ex-offender policy • Service-Disabled Veteran Owned Business Act www.nyshcr.org

  8. General Overview -Maximizing Resources • HCR reorganization has created efficiencies and allowed for better coordination of the State’s housing resources • HCR may review a Unified Fund application under any program for which the proposed project is eligible • HCR may change or disallow aspects of an application as a condition of award • Open window RFP and MOU www.nyshcr.org

  9. General Overview -Program Funds Available* www.nyshcr.org

  10. General Overview -Program Funds Available* - continued *Subject to available appropriations/authorizations www.nyshcr.org

  11. General Overview - Schedule • July 2016: Notice of Funding Availability (NOFA) Notice of Credit Availability (NOCA) • August 2016: Request for Proposals (RFP) • September 2016: Application Workshops 9/8 - Albany 9/9- NYC 9/13- Rochester • Prior to October 6, 2016 (Early Award) & November 8, 2016 (ESSHI) & December 7, 2016 (Standard Round): Technical Assistance available • October 6, 2016: Early Application Deadline • November 8, 2016: ESSHI Application Deadline • December 7, 2016: StandardApplication Deadline • December 2016/January 2017: Early Awards Anticipated • Spring 2017: Standard Awards Anticipated www.nyshcr.org

  12. General Overview - Application Materials on HCR Websitehttp://www.nyshcr.org/Funding/UnifiedFundingMaterials/2016/ • UF 2016 Request for Proposals (RFP) • UF 2016 Project Application CD Online (CDOL) • Capital Project Application On-Line Instructions • HTFC Design Handbook • Capital Programs Manual (CPM) • DHCR’s Low-Income Housing Credit Qualified Allocation Plan (DHCR 9% LIHC QAP) www.nyshcr.org

  13. General Overview - Application Materials on HCR Websitehttp://www.nyshcr.org/Funding/UnifiedFundingMaterials/2016/ • NYS Low-Income Housing Tax Credit Article 2-A Public Housing Law (SLIHC Statute) • NYS Low-Income Housing Tax Credit Program (SLIHC) Regulation – 9 NYCRR Part 2040 Section 2040.14 • UF 2016 Reference Materials • UF 2016 Capital Application Powerpoint • Pre-Qualified Market Study Firms List www.nyshcr.org

  14. General Overview - Application Materials on HCR Websitehttp://www.nyshcr.org/Funding/UnifiedFundingMaterials/2016/ • SHPO “Walk Through” Guide and Contact List • Unified Funding Q&A www.nyshcr.org

  15. UF Review Process –Application Review • Pre-Application Technical Assistance • Eligibility • Rating • Underwriting • Design • Selection Criteria • Awards www.nyshcr.org

  16. UF Review Process –Application Review Required Pre-Application Technical Assistance • All Early Award Applications • All applications proposing special needs preference for 50% or more of project units • All applications proposing the use of historic tax credits (Must have SHPO Participation…see SHPO contact list) • LIHC Mixed-Income Initiative • Neighborhood Revitalization Cross-Subsidy Pilot • All Community Investment Fund applications www.nyshcr.org

  17. Early Awards –General Info • Submit a complete application by 5 pm, October 6, 2016 (for ESSHI, by 5 pm, November 8, 2016) • Mandatory Pre-Application Conference with HCR Development Director and project/technical staff. Must also submit a preliminary Attachment F9, the Proposal Summary, with the financing information completed to the fullest extent possible • Demonstrate readiness to proceed to construction within 120 days of award (180 days for NYC)…Past performance is a critical consideration • The application must clearly advance one of the following State housing goals identified in the RFP. www.nyshcr.org

  18. Early Awards – Revitalization & Economic Development Goals • Priority Projects Identified in Regional Economic Development Plans - Project specifically endorsed in Regional Economic Development Council Strategic Plan and for which significantfinancial assistance has been made available as part of the plan.

  19. Early Awards – • Revitalization & Economic Development Goals • Mixed-Income/Mixed-Use Revitalization Projects – • Must serve a mixed use neighborhood and be a part of a neighborhood specific revitalization effort. • Must target households with incomes above 60% of Area Median Income and have clear local support and commitment of local resources. • Must involve the reuse of existing buildings OR infill new construction OR demolition and replacement of buildings having a blighting impact on the community. www.nyshcr.org

  20. Early Awards – • Revitalization & Economic Development Goals • Mixed-Income/Mixed-Use Revitalization Projects – continued • Preference will be given to applications that: • demonstrate site control of land acquired through Land Banks established pursuant to Article 16 of the New York State Not-for-Profit Corp. Law in neighborhoods that have experienced a high incidence of abandoned, “zombie” properties; • propose a non-residential component that will address an unmet community need identified in neighborhood-specific revitalization plan; • propose a project resulting in the cleanup and redevelopment of property that has been determined to be eligible to participate in the New York State Brownfield Cleanup Program (BCP). To be eligible for this preference, applications must propose a plan of finance that fully utilizes all BCP tax credits generated from the cleanup and redevelopment of the property; www.nyshcr.org

  21. Early Awards – Revitalization & Economic Development Goals Mixed-Income/Mixed-Use Revitalization Projects (continued) - • propose a project that is part of a neighborhood specific revitalization plan that also includes the development of new affordable homeownership units and/or the rehabilitation of existing owner-occupied housing; and/or, • propose a project located in a community that is participating in Governor Cuomo’s Community, Opportunity, Reinvestment (CORe) Initiative. www.nyshcr.org

  22. Early Awards – Supportive Housing Goals Empire State Supportive Housing Projects – Must have a Conditional Award Notification through the Empire State Supportive Housing Initiative, Inter-Agency Service and Operating Funding Opportunity RFP. NY/NY Projects – Must have secured a commitment of NY/NY III or service and operating subsidy for at least 25% of the project’s total units. www.nyshcr.org

  23. Early Awards – Workforce Opportunity Goals • Housing Opportunity Projects – Family projects in areas experiencing economic growth and served by high performing school districts. Projects must be located in areas that have stable or growing tax bases, public transit, child care, and employment opportunities. Must include a significant percentage of two and three or more bedroom units. LIHC basis boost may be requested. • Transit Oriented Development (TOD) – Workforce housing: • Close proximity to MTA rail stations outside NYC • ¼ mile walking distance to MTA subway stations in NYC • Serving communities that are implementing TOD plans • Close proximity to multi-modal transportation centers that contribute to the development of mixed-use, high-density neighborhoods through adaptive reuse of non-residential buildings or infill development. www.nyshcr.org

  24. Early Awards – Affordable Housing Preservation Goals Mitchell-Lama Portfolio Projects– Redevelopment or preservation of Mitchell Lama Housing units that have been transferred from the NYS Empire State Development Corporation to NYS Homes and Community Renewal (HCR). Applications must demonstrate that the refinancing and preservation would be infeasible as part of a plan of finance that relies on 4% LIHC and tax-exempt bonds without additional HCR subsidies in excess of amounts typically made available in connection with such financings. Applicants must demonstrate successful prior experience in the management of similar properties (preference for Mitchell-Lama properties) and must maximize all non-HCR resources available for the redevelopment and preservation of this housing portfolio. www.nyshcr.org

  25. Early Awards – Affordable Housing Preservation Goals • Rural Preservation Projects – • Must propose the rehabilitation of projects currently receiving Rural Rental Assistance Program (RRAP) funds; • Must extend the useful life of the project by no less than 20 years and satisfy heightened energy efficiency standards specified in the RFPand must result in ongoing reductions of RRAP funding; and, • At least 90 percent of TDC must be directly related to physical improvements that will extend the useful life and improve the habitability and energy efficiency of the project. • The only source of funding that may be requested under this goal is the Community Investment Fund (CIF). Requests are limited to $2 million in CIF funds per project, and $40,000 per unit, and must • satisfy all CIF program requirements described in this RFP. www.nyshcr.org

  26. Early Awards – Affordable Housing Preservation Goals Public Housing Redevelopment – • Must proposed the gut rehabilitation and/or demolition and replacement of substandard public housing outside the City of New York. www.nyshcr.org

  27. Program Information – New ProgramsSupportive Housing Opportunity Program (SHOP) • SHOP Program Overview • $150 million available • New construction or adaptive reuse for affordable supportive housing with on-site social services • Must have a service and operating award or plan acceptable to HCR is required to be obtained for SHOP funds • At least 50% of project units must be affordable to households earning no more than 60% AMI • Total supportive housing units should not exceed 60% of total units in the project • Must submit MRT Questionnaire if serving MRT population www.nyshcr.org

  28. Program Information – New ProgramsSHOP Funding Priorities & Preferences • Economic Development Projects • Integrated Supportive Housing Projects • Community Renewal and Revitalization Projects • Housing Opportunity Projects • Workforce Opportunity Projects • Disaster Relief Projects • Projects that contain more than 50% supportive housing units www.nyshcr.org

  29. Program Information -NYS HOME – Multi Family Projects • UF 2016 NYS HOME Program funds available - $7 million • Project Cap - $2 million or up to $2.4 million if project meets criteria listed in UF 2016 RFP • Per Unit Subsidy is limited per HUD HOME Requirement • Permanent or construction financing available – residential rental projects only assisting households at <80% of AMI • Projects utilizing 9% LIHC and NYS HOME must use HOME as construction financing. • 15% of HOME must be awarded to Community Housing Development Organizations (CHDO’s); see RFP for additional CHDO information • Davis-Bacon compliance required for projects with 12 or more HOME assisted units • Must comply with Uniform Relocation Act (49 CFR part 24); Community Development Act Section 104(d); and, HOME (24 CFR Part 92) for relocation or displacement of occupants, and acquisition requirements. www.nyshcr.org

  30. Program Information -NYS HOME – Timing Considerations • Projects must be completed in 4 years or HOME funds recaptured by HUD • Federal NEPA environmental review timeframe must be considered in setting HOME project development timetable • NEPA must be completed and approved by HCR prior to any “choice-limiting activities” (i.e., AHAP execution, site preparation or construction) or award will be terminated • CHDO projects – HOME funds must be expended within 5 years or recaptured • Rental units must be occupied within 18 months of project completion or project will lose funds for those units www.nyshcr.org

  31. Program Information -NYS HOME Section 3 Section 3 of the Housing and Urban Development Act of 1968 (Section 3) ensures that employment and other economic opportunities generated by certain HUD financial assistance shall, to the greatest extent feasible, be directed to low-and very low-income persons and the businesses that employ them. Section 3 is the LAW, it is not an option. www.nyshcr.org

  32. Program Information – NYS HOME Section 3 What is Low-Income? • Low-Income Definition - A household whose income does not exceed 80 percent of the median income for the area; • To determine the low income guidelines for your area or project area, please visit the following web site and enter your county within NY State: http://www.huduser.org/portal/datasets/il/il2015/select_Geography.odn www.nyshcr.org

  33. Program Information – NYS HOME Section 3 What triggers Section 3? • The requirements of Section 3 apply to HUD award recipients who receive an award in excess of $200k. • In addition, all contractors/subcontractors/sub- recipients receiving funds or contracts in an amount in excess of $100k to complete housing construction projects are also required to comply with Section 3 requirements. www.nyshcr.org

  34. Program Information -NYS HOME Section 3 What are Section 3 Minimum Goals? • At least 30% of all NEW employees hired should be Section 3 residents; - AND - • At least 10% of the total dollar amount of all Section 3 covered contracts for housing rehabilitation, construction, and other public construction should be granted to eligible Section 3 businesses ; • AND – • At least 3%of the total dollar amount of non-construction (e.g., professional services) contracts should be granted to eligible Section 3 businesses www.nyshcr.org

  35. Program Information – NYS HOME Section 3 “To the Greatest Extent Feasible” • Document efforts to recruit, train, employ and extend contracting opportunities to Section 3 residents and businesses. • Target low- and very-low income persons in the project work area, including public housing residents and others who receive government assistance. • Develop procedures to notify Section 3 Business Concerns about contracting opportunities. • Establish relationships that will produce eligible business concerns, e.g. labor organizations/ unions, vocational/ trade schools, community colleges, etc. • Check the HUD Business Registry for potential businesses. • Questions to fheo@nyshcr.org www.nyshcr.org

  36. Program Information – Section 3 Training and Technical Assistance HCR’s Office of Fair and Equitable Housing is here to help you meet HUD Section 3 goals and objectives. • Check the HCR FEHO Section 3 Webpage for Updates and Regional Training/TA Workshops • http://www.nyshcr.org/AboutUs/Offices/FairHousing/ • Contact: Gwen Pope, HCR Section 3 Coordinator, by email or phone to register for workshops. • Email: gwen.pope@nyshcr.org • Phone: 518-473-3089 • Contact: Lorraine Collins, Director, Fair and Equitable Housing Office for further questions. • Phone: 518-473-3089 • Email: fheo@nyshcr.org www.nyshcr.org

  37. Program Information -Project Based Voucher Program Initiative (PBV) • Up to 100 units of PBV assistance for projects financed through the HTF, LIHC, SLIHC and/or HOME programs • Applicants should fully review program regulations in order to ensure the project is consistent with HUD’s regulations. • Applicants may only request PBVs for projects in local program areas serviced by HCR’s Section 8 Voucher Program and its network of Local Administrators. • NEPA Review must be completed • Developer and Builder Fees capped at HUD Safe Harbor Limits • HAP contract term increased from 15 to 20 years www.nyshcr.org

  38. Program Information -Housing Trust Fund (HTF) • Approximately $40 million available • Project cap - $2 million or up to $2.4 million if project meets criteria listed in UF 2016 RFP • HTF per residential unit cap - $125,000 • Permanent and/or construction financing available • Must benefit households < 90% of AMI (in NYC < 80% of AMI) www.nyshcr.org

  39. Program Information -Housing Trust Fund (HTF) • Preference for projects with a substantial number of units < 50% AMI • Up to 10% of HTF award amount may be used for a community service facility • Developer Allowance up to 10% of TDC excluding acquisition and project contingency • Up to 50% of HTF award may be used for acquisition • For more info – see UF 2016 RFP www.nyshcr.org

  40. Program Information -Middle Income Housing Program (MIHP) MIHP Program Overview • The MIHP provides financing assistance for acquisition, capital costs and related soft costs associated with the new construction of, or the adaptive reuse of non-residential property to, affordable middle income housing units. • Must include units targeted to households between 60% - 130% AMI • Must be requested in combination with 9% LIHC • MIHP requests subject to standard 9% LIHC gap analysis and cash flow limits www.nyshcr.org

  41. Program Information -Middle Income Housing Program (MIHP) MIHP Program Overview • $3,000,000 per project maximum • Projects proposing 10% or more of the total units to be affordable and targeted to households with incomes > 90% AMI may request up to $4,500,000 • Available as construction & permanent financing - 0% construction loan & 1% permanent loan for 30 year term • Rent affordability requirements – refer to RFP term sheet www.nyshcr.org

  42. Program Information -MIHP Funding Priorities & Preferences HCR is seeking MIHP applications leveraging significant amounts of capital support from non-HCR sources and advancing one or more of the specific housing goals of the State and MIHP program Additional funding priorities and preferences: • Housing Opportunity Projects & Mixed Income/Mixed Use Revitalization Projects • Middle Income Stabilization Projects targeting transitional neighborhoods • Projects with at least 25% of residential units targeted to households above 90% AMI up to 130% AMI • Projects where at least 50% of the dwelling units contain two or more bedrooms. • New York State Brownfield Cleanup Program projects www.nyshcr.org

  43. Program Information – Rural and Urban Community Investment Fund • $31,250,000 million available for the Rural and Urban Community Investment Fund (CIF). • CIF funds may be used to: • support retail, commercial or community facility components of mixed-use affordable housing developments in urban and rural areas, or; • in rural areas, to support the preservation and rehabilitation of existing affordable housing. • Project caps: $2 million per project/$40,000 per unit for Early Award Rural Preservation Projects • Up to $1.5 million per project for retail, commercial or community facility space • $750,000 per project/$30,000 per unit for Standard Round Preservation Projects in Rural Areas www.nyshcr.org

  44. Program Information – Rural and Urban Community Investment Fund • 60% of CIF funds will be allocated to “Urban Areas” with a population of 25,000 or more and 40% of CIF funds will be allocated to “Rural Areas” with a population of less than 25,000 • Applicants are required to provide a 1/3 match of the requested CIF funding amount • The project must be part of an affordable housing development where at least 70% of the units are targeted and affordable to households at or below 90% of AMI • Applicants considering applying for CIF are required to schedule pre-application technical assistance conferences with HCR staff www.nyshcr.org

  45. Program Information – Rural and Urban Community Investment Fund CIF Funding Priorities • Early Award Rural Preservation Projects • Commercial or community facility space that will be used to: • address a critical unmet community need in the development’s primary market area • ensure the continuation of traditional commercial corridors that would otherwise be disrupted by the development of ground floor residential space • advance concerted neighborhood revitalization plans www.nyshcr.org

  46. Program Information – Rural and Urban Community Investment Fund CIF Non-Residential Underwriting Considerations • CIF funds may only cover development costs of the proposed retail, commercial or community facility space (i.e. cannot be used as an operating subsidy). • Income from the residential space may not be used to support the operations of the non-residential space. • Applicants must demonstrate in the operating budget and market documentation that CIF funds will reduce debt service costs such that market-rate commercial leases will be sufficient to cover all debt service and operating costs associated with the space. www.nyshcr.org

  47. Program Information – Rural and Urban Community Investment Fund CIF Non-Residential Underwriting Considerations • Applicants must provide a market analysis demonstrating sufficient demand for the proposed non-residential use at rents assumed in the income and operating budget and detail the commercial rents of comparable commercial space in the immediate market area • Applicants must provide at least one letter of interest from a prospective tenant for the non-residential space and identify the amount per square foot such prospective tenant would be willing to pay for the finished space • Successful applicants will be required to enter into a master lease or create a separate condominium for the non-residential component of the project • Developer fee on non-residential space funded by CIF is only allowed for a Section 42 qualified Community Service Facility www.nyshcr.org

  48. Program Information – Rural and Urban Community Investment Fund CIF Residential Underwriting Considerations • CIF funds may only be used only to cover costs related to the rehabilitation of the affordable rural housing projects. CIF funds may not be used to support the ongoing operating costs. • Rural preservation projects that do not rely on federal low income housing tax credits must satisfy all the underwriting criteria that would apply to stand-alone Low Income Housing Trust Fund applications outlined in the HCR Capital Programs Manual. • For projects co-funded with USDA Rural Development, HCR will consider utilizing underwriting criteria that appropriately address the requirements of both agencies. www.nyshcr.org

  49. Program Information –Housing Development Fund Program (HDF) • Subject to appropriation, HDF Program loan funds may be requested as low-interest construction financing to eligible not-for-profit applicants proposing HOME/HTF as permanent financing. • Applicants considering HDF to bridge an HTF/HOME permanent loan should discuss with Regional Office prior to application submission. • HDF loans may involve additional processing time due to additional state agency approvals. www.nyshcr.org

  50. M/WBE Participation • Article 15A of the Executive Law promotes economic opportunities and equality of employment for minority group members and women in State contracting activities. • HCR fully supports these efforts and HCR’s Fair Housing & Equal Opportunity/Affirmative Action Office which has as a mission to coordinate and monitor compliance with Article 15A. • Preference in awards given to applications which include NYS-certified M/WBE as part of development team – including LIHC scoring feature. • All projects financed under the HTF, CIF, RARP, UI, HOME, MIHP, SHOP and HDF must comply with HCR’s M/WBE participation requirements. • Award decisions include consideration of applicant’s past and current performance, including M/WBE performance www.nyshcr.org

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