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Los Angeles Housing Department Affordable Housing Trust Fund Notice of Funding Availability 2011

Los Angeles Housing Department Affordable Housing Trust Fund Notice of Funding Availability 2011. Douglas Guthrie General Manager Helmi Hisserich Tim Elliott Assistant General Manager Major Projects Division December 1, 2010. HOUSING SERVICES DIVISION.

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Los Angeles Housing Department Affordable Housing Trust Fund Notice of Funding Availability 2011

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  1. Los Angeles Housing DepartmentAffordable Housing Trust FundNotice of Funding Availability2011 Douglas Guthrie General Manager Helmi Hisserich Tim Elliott Assistant General Manager Major Projects Division December 1, 2010

  2. HOUSING SERVICES DIVISION • The Housing Services Division includes the Occupancy Monitoring and Land Use Covenant Units. • The Occupancy Monitoring Unit will conduct a background check on all AHTF applicants and awards may denied to applicants with projects determined to be out of compliance with occupancy monitoring requirements. • Reminder: For the term of the Regulatory Agreement, “On an annual basis, Owner shall provide the City with a copy of an occupancy summary report showing present occupants, rent, and size of the Assisted Units on the Property, and any other information which the City requests and which related to the eligibility of these households.”

  3. HOUSING SERVICES DIVISION • If Section 8 tenant-based vouchers are incorporated into the project, consult with AHTF staff. It may affect the allowable rents. • If a density bonus or parking reduction is requested, you must submit an application to the Land Use Unit four to six months prior to closing the AHTF loan. • For Occupancy Monitoring/Compliance or Land Use covenant questions, call 213-808-8806

  4. Affordable Housing Trust Fund Overview 2003-2010

  5. 2010 AHTF ROUND 2 REDUX • Only five out of 14 projects (consisting of 294 units) received tax credit allocations • The process for selecting projects to be converted to bond financing was based on the amount of non-LAHD public funding sources committed to the project. • Projects were ranked in descending order on the basis of subsidy per unit.

  6. FUNDS AVAILABLE – ROUND 1

  7. CHANGES FOR 2011 Limits on Awards • Two per developer (or any partners) per round. • No more than two awards to senior projects per round.

  8. TERM OF COMMITMENT • Limit to two TCAC rounds under NOFA I and one TCAC round under NOFA II. • Commitments for MHP projects will be valid only for the HCD funding cycle. • Unsuccessful projects may be considered for bond conversion after the second round.

  9. SUBSIDY BOOSTS • LAHD has committed $10 million in AHTF general funds to the New Generation Fund as a loan loss guarantee reserve. • The NOFA currently provides a 5% subsidy boost to projects proposing 9% tax credits that have an NGF or SHLF commitment. • Adequate resources are needed in order for these projects to be competitive in the funding rounds for their proposed leveraging sources. • An increase to 15% would facilitate the forward movement of these projects and prevent defaults on the NGF/SHLF loans.

  10. PERMANENT SUPPORTIVE HOUSING How much should be allocated to supportive housing projects? Goal: Match 33% of Leveraging Sources • TCAC Non-Profit Homeless & SRO Set Asides • MHP Homeless Youth NOFA: $30.0 million • MHP Supportive Housing NOFA: $80.0 million

  11. SUSTAINABLE BUILDING INCENTIVE • Changes to the California Energy Code and the CalGreen Code may supersede sustainable building incentive requirement. • Currently, projects must exceed Title 24 Energy Standards by a minimum of 10% for new construction, or increase existing energy efficiency by at least 25% for rehabilitation projects.

  12. SUSTAINABLE BUILDING INCENTIVE For energy efficiency beyond Title 24 requirements, the percentage must exceed: • 25% - for Low-Rise Multifamily (3 or fewer habitable stories) • 20% - for High-Rise Multifamily (4 or more habitable stories)

  13. AT-RISK PROJECTS Funding for preservation projects was suspended for 2010 pending a study funded by a grant from the MacArthur Foundation. LAHD entered into an agreement with The California Housing Partnership Corporation (CHPC) to complete the study and develop criteria for evaluating projects’ true risk of conversion.

  14. AT-RISK PROJECTS The At-Risk Criteria will award points in the following categories: Strength of the Rental Market Number of Units Covered by Section 8 Contract Remaining Term of the Existing Section 8 Contract Status of Long Term Section 8 Contract Renewal Status of HUD Commitment for Section 8 Mark up to Market (MU2M) Contract Renewal Section 8 Underwriting with 90% of Market Rents Ratio of Committed Private Permanent Financing to Total Development Cost Size of Project Property Condition

  15. AT-RISK PROJECTS The At-Risk Assessment Criteria would render an “At-Risk Score” for a project’s true and immediate risk of conversion to market rate rents. The At-Risk Score would provide a quantitative tool to assist LAHD in deciding how best to award AHTF dollars to these projects.

  16. AT-RISK PROJECTS In addition to financing these projects through the NOFA, the NGF’s revolving loan fund will be used to provide the interim financing needed for the acquisition of Preservation/At-Risk projects, while those projects are in the process of renewing subsidy contracts through the MU2M program. The NGF’s short-term acquisition/predevelopment loans originated through nonprofit lenders would be repaid once the Section 8 contract was renewed and the AHTF and other loans are closed.

  17. IMPORTANT DATES 12/3/10: Publish Draft NOFA 1/5/11: Mayor and City Council approval 1/10/11: Bidders Conference 1/18/11: Application Deadline 3/11/11: Post Recommended Projects

  18. FOR MORE INFORMATION Los Angeles Housing Department: www.LACITY.ORG\LAHD 1200 West Seventh Street, 9th Floor, Los Angeles, CA 90017 Question and Answer: LAHD_NOFA@LACITY.ORG Douglas Guthrie, General Manager Los Angeles Housing Department (213) 808-8808 douglas.guthrie@lacity.org Tim Elliott, Acting Director Sergio Tejadilla, Acting Manager Major Projects Affordable Housing Trust Fund (213) 808-8901 (213) 808-8596 timothy.elliott@lacity.orgsergio.tejadilla@lacity.org

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