2011 Affordable Housing Program

1. 2011 Affordable Housing Program

2. Workshop Agenda • AHP overview • Eligibility/threshold requirements • Scoring review • Feasibility review • Online application • AHP award obligations • Technical assistance process • Questions

3. Federal Home Loan Bank of Pittsburgh Who are we? • One of 12 banks in the FHLB system • Cooperatively owned • Provide access to cheap capital • Earnings set-aside for community investment

4. What is AHP? • Supports the development of affordable housing for households at or below 80% of AMI (using HUD’s guidelines) • Direct subsidy (grants) or low-interest loan options • Competitive application process

5. What’s Happening in 2011? • One funding round • Funds for 2011 AHP – approximately $3 million • Maximum subsidy amount $250,000 per project • Online application • Informational webinars, workshops and technical assistance

6. Important 2011 AHP Dates • Now – technical assistance requests accepted • During the month of May – webinars and workshops will be conducted (go to the FHLBank Pittsburgh website for registration information) • June 1 – access to online system available • July 21 (5 p.m.) – closing date for submission of applications; applications MUST be in “Member Approved” status • October 28 - AHP funding announcement

7. AHP Eligibility Criteria General: • FHLBank members = Applicant • Nonprofit, for-profit, authorities, municipalities developing affordable housing = Sponsor Project Specific Thresholds: • Rental projects – at least 20% of units targeted for families at or below 50% AMI • Homeownership projects – at least one unit targeted for families at <80% AMI • Project meets Fair Housing requirements

8. AHP Eligibility Criteria (cont.) • Project must comply with required retention period: 5 years for owner-occupied housing, 15 years for rental, and use acceptable retention mechanism • AHP subsidy requested must be less than or equal to the $250,000 maximum • Creditworthiness of the member must be verified (by FHLBank Pittsburgh) • AHP funds must be used for an eligible purpose

9. Eligible AHP Uses • Homeownership or rental • Multi-family, single-family • Acquisition, new construction, rehabilitation • Scattered site, single site • Downpayment/closing costs

10. Quick Scoring Review • The AHP uses a 100-point scoring system • Scoring details provided in Attachment B of the AHP Implementation Plan • A perfect score is not required! • 2010 funding round results: • 76 applications submitted, 15 approved • High score = 82, score for last approved = 68.75 • Score for last approved application in 2009 funding round = 65

11. 2011 Scoring Guidelines Scoring CategoriesPoint Allocation Use of Donated Properties 5 (fixed) Sponsorship by Nonprofit or Government Entity 5 (fixed) Targeting 0-20 (var.) Housing for the Homeless 5 (fixed) Promotion of Empowerment 0-10 (var.)

12. 2011 Scoring Guidelines (cont.) Scoring CategoriesPoint Allocation First District Priorities: • Special Needs 7 (fixed) • Economic Diversity 5 (fixed) • Rural 5 (fixed) Second District Priority: • Readiness to Proceed 8 (fixed) Subsidy per Unit 0-5 (var.) Community Stability 0-25 (var.)

13. Use of Donated Properties(5 points fixed) • Projects will receive 5 points if either • 20% of land or units are received for a nominal price (typically $100 or less) OR • At least 50% of the units or land are acquired at 50% or less of the Fair Market Value OR • At least 20% of the land or units are acquired from the federal government, federal agency or instrumentality thereof

14. Sponsorship by Nonprofit or Government Entity(5 points fixed) • Project must include sponsorship by one of the following groups: • Not-for-profit organization • State or political subdivision of a state • State housing agency • Local housing authority • Native Americantribe

15. Sponsorship by Nonprofit or GovernmentEntity(cont.) • Rental projects – must have an ownership interest and be integrally involved • Homeownership projects – must be integrally involved • “Integral involvement” • Exercising control over planning, development or management of the project

16. Targeting(20 points variable) Rental projects • Projects with 60% or more of units targeted to households at 50% or less of AMI will receive 20 points • Remaining projects will be scored using the following scale: • Percent of units at 50% or less multiplied by 20 • Percent of units at 51%-60% multiplied by 14 • Percent of units at 61%-80% multiplied by 8 Total score is sum of 1, 2 and 3 above

17. Targeting (cont.)(20 points variable) Homeowner projects Projects will be scored using the following scale: • Percent of units at 50% or less multiplied by 20 • Percent of units at 51%-60% multiplied by 18 • Percent of units at 61%-80% multiplied by 16 Total score is sum of 1, 2 and 3 above NOTE: The totalnumber of units in the project will be used to determine the targeting scores for both rental and homeownership projects

18. Housing for Homeless(5 points fixed) Points will be awarded for the creation of: • Transitional housing, excluding overnight shelters, for homeless households permitting a minimum of 6 months occupancy • Rental housing reserving at least 20% of the units for homeless households

19. Housing for Homeless (cont.) Homeless is defined as follows: 1. Persons who are sleeping in places not meant for human habitation 2. Persons sleeping in emergency shelters 3. Persons graduating from a transitional housing program specifically for homeless persons 4. Persons being discharged from an institution or foster care with no permanent residence available 5. Persons who would be discharged from an institution if they had a permanent residence available

20. Housing for Homeless (cont.) 6. Victims of domestic violence • Persons who are “doubled-up” and are in a situation of overcrowding, defined as: Unit SizeNumber of People Efficiency 2 or more 1 Bedroom 3 or more 2 Bedrooms 5 or more 3 Bedrooms 7 or more 4 Bedrooms 9 or more

21. Empowerment • Up to 10 points for services offered to the residents of the proposed project • Approved list of empowerment techniques • Techniques must be documented by Memorandum of Understanding

22. Empowerment Empowerment scoring – approved techniques: 4 points for the following techniques: • Pre-homeownership counseling – complete at least 4 hours of face-to-face homeownership counseling • Post-homeownership counseling – complete at least 4 hours of post-purchase face-to-face homebuyer counseling 2 points for the following techniques: • Case management • Counseling

23. Empowerment 2 points for the following techniques (continued): • On-site primary health care services • Resident serving on sponsor’s board • Sweat equity – Activities required of the homebuyers or their families directly related to the construction/rehabilitation of the home. • Tenant council • Transportation – Project-specific private transportation services provided by the project and tied to residents’ economic empowerment. • Welfare-to-Work Initiatives. • Youth or after-school programs

24. Empowerment 2 points for the following techniques (continued): • Financial literacy/credit counseling/budgeting • Homeowners association • Life skills classes that promote economic betterment or self-sufficiency. • Daycare services (youth or adult) • Education (related to economic empowerment, other than employment training) – • Employment training • Financial – programs or services that provide direct and quantifiable cash assistance to residents.

25. Special Needs(7 points fixed) At least 20 percent of the units are reserved for special needs individuals Expanded definition of special needs: • Physically and/or mentally disabled • Developmentally disabled • Persons recovering from domestic abuse (physical abuse) • Persons recovering from domestic abuse (emotional abuse) • Persons recovering from chemical dependency • Persons with HIV/AIDS Any member of a household with any one of the qualifying special needs conditions outlined above qualifies the household as a special needs household

26. Economic Diversity(5 points fixed) Projects that incorporate mixed-income housing in the development scheme. Mixed income housing is defined as: • 20% or more units targeted to households >60% of the AMI OR • Project is located in a census tract with an average annual income that is at or greater than 100% of the AMI Note: The total number of units in the project will be used to score this factor.

27. Rural(5 points fixed) • Projects that are located in rural areas • USDA guidelines for each state are used • For more information go to the USDA website at www.usda.gov and select Single family or Multi family as appropriate for your project

28. Readiness to Proceed • Quick start – on or before 4/28/12 (for owner-occupied rehab only – finish on or before 10/28/12) • 100% site control at time of application (July 2011) must be documented; Exceptions: NSP projects (site control by 4/28/12) and owner-occupied rehab projects (exempt from requirement) • Zoning/environmental – documented permissive zoning and environmental clearance at time of application • Financing – 60% of gap funding (including AHP request) secured at time of application

29. Subsidy Per Unit(0-5 points variable) • The extent to which a project uses the least amount of AHP subsidy per AHP-targeted unit • Owner-occupied and rental projects scored separately on established point ranges • Points will be awarded in .25 increments

30. Community Stability • Template review • 25 point category broken into two focus areas for scoring purposes: • Planning: 10 points • Impact: 15 points

31. Community Stability – Planning(up to 10 points) Planning: 3 possible points for consistency with state/local/community plans • Threshold consistency with local/state plan • 1 point • Consistency with specific community plan • 1 point • Consistency with special needs/homeless plan • 1 point 7 possible points based on the quality of the state/local/community plan where the project is located

32. Community Stability – Impact (up to 15 points) Impact is measured using the following criteria: • Awarded designations – up to 2 points • Project must be located in community with designation • Examples: Main Street, Elm Street, Weed and Seed, Blueprint Community • Related community activity/investment – up to 2 points • Project is in community that has related community activities and investment • Proof that community is moving forward with development or revitalization

33. Community Stability – Impact (cont.) • Impact measures - 3 to 7 points: Catalytic Project – 7 points OR Neighborhood Stabilization Program • 5 points < 11 units • 7 points 12 or more units OR Other impact elements • 3 points < 11 units • 5 points 12 or more units

34. Community Stability – Impact (cont.) “Other” impact techniques – 3 to 5 points, project must include one of the following activities: • Located in area of concentrated foreclosure under NSP • Owner-occupied rehab with >$10,000 unit • Creates homeownership in areas with homeownership rate less than 50% • Redevelops blighted property (if rehab, rehab costs >$25,000 per unit) • Adaptively reuses a property; i.e., warehouse into housing • Rehabilitates a historic property (>$25,000 per unit costs) • Preserves existing subsidized housing (rehab must be >$10,000 per unit)

35. Community Stability – Impact (cont.) • Project Techniques – up to 2 points, project must include 1 of 4 techniques: • creation of a community asset • visitable units • proximity to amenities • security features • Architectural compatibility – 2 points • Project is compatible with surrounding neighborhood

36. Project Feasibility • Projects may score well, but may not pass the feasibility review • Review project feasibility guidelines in Attachment A of the AHP Implementation Plan

37. Project Feasibility • Feasibility factors: • Financial Structure • Cost Reasonableness • Need for Subsidy • Market Demand • Development Team Capacity • Readiness to Proceed • Discuss potential feasibility issues with CID staff early

38. Things to Do Now • Meet with your FHLBank member • Complete individual/person registration if you are not previously registered • Review online resources: AHP Implementation Plan, AHP guide, subjective category guides, scoring templates, etc. • Complete due diligence and start work on templates • Request technical assistance

39. Registering For The Funding Round • Sponsors who previously registered during 2010 AHP funding round • New sponsor registration • Member registration

40. Previously Registered Sponsors • If you know your user ID and password (PW), log onto Bank4banks and access the system as usual • If you know your user ID, but forgot your PW, log onto Bank4banks and hit the reset link for “Forgot your password?” • If you know your PW, but forgot your user ID, email CID • Dorothy Pegdan at dpegdan@fhlb-pgh.com or • Ann Killian at akillian@fhlb-pgh.com

41. New Sponsor Registration • New sponsors can register at any time by going to FHLBank Pittsburgh’s public website, clicking on the Bank4banks link in the lower left corner and then the “community investment sponsor/consultant not registered yet” link • System will then prompt you to create user name/ password, answer security questions and review/accept AHP Services Agreement • Confirmation sent via email

42. Member Registration • Different than sponsor registration: • All member Bank4Banks access is done through the member’s “Customer Security Administrator” (CSA). To access the AHP system, individuals must be given “AHP Role” in Bank4Banks • To find the CSA for your institution, you may contact Member Services at 1-800-288-3400, Option 2, or Community Investment Department at 1-800-288-3400, Option 3 • Most institutions have two CSAs. CSAs have the ability to authorize access to the AHP function of Bank4Banks. One CSA can create your account and the other will sign off as a second approver • Once the CSA sets up your account, the system notifies Member Services and they send out a confirmation packet with your token and instructions for logging into the system • NOTE: members need to complete this registration only if they are not already an AHP user in Bank4Banks. If you previously submitted an AHP application in the 2010 funding round, you are already registered in Bank4Banks and do not need to complete the registration process again.

43. Online Application • Access to previous application information • Financial forms attached to system – easier to complete offline • Navigation enhancements • Messaging and alert features • Summary screen to track progress

44. If you initiated an application in the 2010A funding round, this is what you will see…

45. Initiating an Application June 1

46. If you are registering yourself in the AHP System for the first time, you need to associate yourself with an organization before continuing.

50. On June 1, all potential applicants may begin initiating an application.