Multifamily Application Training 2010 Consolidated Request for Proposals 2011 Housing Tax Credits

1. Multifamily Application Training 2010 Consolidated Request for Proposals 2011 Housing Tax Credits

3. Using GoToWebinar How to submit questions

5. Agenda Overview Assistant Commissioner of Programs - Patricia Hanson Research Director - John Patterson Funding, Priorities and Application Changes –Diana Lund Program Updates: LAAND – Carol Dixon Supportive Housing – Amy Long Housing Tax Credit – Kasey Kier

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7. Minnesota Housing Assistant Commissioner of Programs Patricia Hanson

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9. Minnesota Housing Research Director John Patterson

10. Community Profiles Objectives: Identify higher need communities Identify the type of investment needed Basis: 20 indicators, for example: Homeownership rate Percentage of renters who are cost burdened Job growth 5 categories of need

11. Categories of Need Opportunities for Economic Integration Opportunities for Community Stabilization Opportunities for a Growing Workforce Opportunities for Increasing Emerging Market Homeownership Opportunities for Additional Affordable Rental Housing

12. Community Profile Layout County and large city analyses Sections: Background 5 Need Categories (Maps) Special Maps for 2010 Applications 20 Indicators (Maps) 20 Indicators (Data Tables)

13. Special Maps for 2010 Applications Foreclosures – Highly impacted zip codes Based on foreclosures, delinquencies, and unemployment Economic Integration – High income census tracts Based on Dept. of Revenue data

14. Using Community Profiles Data resource To be improved over time: Smaller geographies – census tracts rather than counties and cities Feedback from partners Still provides useful information Combine profile information with local and neighborhood-level data

15. Multifamily Construction Costs Cost containment is a priority Examining costs more closely: Industry data from RSMeans Past projects funded by Minnesota Housing Expertise of agency staff RSMeans Construction Costs: Basic 1 to 3 story apartment - $105K to $110K per unit in Minneapolis (excludes acquisition and soft costs) Minnesota Housing projects have cost 18% more after controlling for several factors

16. Construction Cost Factors Type of work (e.g. new construction vs. rehab) Building type and features Location Size of project Size of units Added costs (e.g. historical preservation, environmental abatement, etc.)

17. Construction Cost Review Minnesota Housing will assess costs If costs are higher than expected, will ask for further justification or a reduction in costs Assessment will include allowances for cost factors

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19. RFP Preferences Foreclosure Remediation Transit Oriented Developments Cost Containment Economic Integration

20. Foreclosure Remediation Multifamily foreclosure criteria: Acquire and rehabilitate a foreclosed property located in a designated high-impact foreclosure zip code Acquire and rehabilitate a foreclosed property that is not located in a designated high-impact foreclosure zip code Acquire and/or rehabilitate a property that is located in a designated high-impact foreclosure zip code

21. Foreclosure Remediation High need zip codes 122 eligible zip codes statewide Based on each zip code’s: Foreclosure/REO rate Delinquency rate Unemployment rate Proportion of non-prime, ARMs yet to reset http://www.mnhousing.gov/resources/apply/multifamily/MHFA_009340.aspx

24. Foreclosure Remediation High need areas outside the high-need zip code if: Target area has a 10% sheriff-sales rate or more Target area must have a minimum of 200 residential parcels

25. Foreclosure Remediation Application requirements Target area map with identifying boundaries, including proposed development site(s) Total sheriff-sales for the target area in 2007, 2008 and 2009 (with a separate figure for each year) Number of residential parcels in the target area (not the number of residential households) See guidance on the RFP website

26. Foreclosure Remediation Sheriff sales rate calculation Total of 2007, 2008 and 2009 sheriff sales in the target area divided by the number of residential parcels in the target area Partially completed new subdivisions are ineligible to be included in the sheriffs sale calculation

27. Transit Oriented Developments Developments located in the 7 county metro area Within ½ mile radius from Red Line station Within ¼-mile radius from Blue Line public transit fixed route Within ½-mile radius of Expressed Bus station/park and ride Developments located in Greater Minnesota Located within ½ mile radius from a public transit fixed route stop or station http://www.mnhousing.gov/resources/apply/multifamily/MHFA_009341.aspx

28. Transit Oriented Development - Metrohttp://www.mnhousing.gov/resources/apply/multifamily/MHFA_009341.aspx

29. Transit Oriented Development Greater MN Provide a map identifying the location of the development within ½ mile radius from a public transit fixed route stop or station Include a copy of the route, span and frequency of the service http://www.dot.state.mn.us/transit/Map/index2.html

30. Cost Containment Measures The agency will be carefully reviewing each proposal for cost containment measures, without compromising the quality of the development.

31. Economic Integration Multifamily The proposed development provides at least 25% but not greater than 50% of the total units in the development as affordable units. OR The proposed development provides community economic integration by providing housing located in neighborhood with average incomes 150% or more above HUD’s area median family incomes. http://www.mnhousing.gov/resources/apply/multifamily/MHFA_009339.aspx

33. RFP Funding Availability Deferred loan funding approximately $24 million Preservation ARIF (PARIF) - $7 million Publicly Owned Housing Program (POHP) - $6.5 million Ending Long-Term Homelessness Initiative Fund (ELHIF) -$7 million Flexible Financing for Capital Costs (FFCC) - $3.5 million Agency Wide Funding Pool Economic Development and Housing Challenge Program (EDHC) Approximately $12 million (Agency-wide)

34. RFP Funding Availability Low and Moderate Income Rental Program (LMIR) - up to $20 million Funding Partners – Approximately $4.4 Metropolitan Council – Local Housing Incentive Account (LHIA) Minnesota Department of Employment and Economic Development  (MN DEED) - Small Cities Development Program (SCDP) Greater Minnesota Housing Fund (GMHF) Department of Human Services – Adult Mental Health Division (DHS-AMHD), Housing with Supports for Adults with Serious Mental Illness (HSASMI) Program Operating Subsidy

35. Application Materials Location http://www.mnhousing.gov

36. Application Information and Requirements

37. Master Application Checklist

38. Master Application Checklist

39. Application Upload Utility

40. Application Upload Utility

41. Application Upload Utility

42. Multifamily Rental Housing Common Application

43. Multifamily Rental Housing Common Application

44. Multifamily Rental Housing Common Application

45. Multifamily Rental Housing Common Application

46. Multifamily Rental Housing Common Application

47. Multifamily Rental Housing Common Application

48. Application Deadline Submittal Deadline Tuesday, June 15, 2010, 5:00 p.m. Minnesota Housing 400 Sibley Street, Suite 300 St. Paul, MN 55101

49. Application Submittal Submittal Send your electronic documents to https://online2.mhfa.state.mn.us/rfp-upload/index.aspx Executed original PLUS 2 copies For Housing Tax Credits, the Application must be signed by one general partner (and the non-profit partner, if appropriate), officer, director or corporate officer

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