OHCS 2019 Notice of Funding Availability (NOFA) Training

1. OHCS2019 Notice of Funding Availability (NOFA) Training Welcome Oregon Housing and Community Services

2. NOFA Training Agenda • Welcome • Dates to Remember • NOFA Application Process • NOFA Document Overview • NOFA Submission Overview • Threshold Detail • Competitive Scoring Detail • Program Submission • Program Highlights • General Reminders • Dates to Remember • Questions Oregon Housing and Community Services

3. NOFA Process – Dates to Remember • Release date: January 11th • Questions should be posed to: • General Inquiry: MFNOFA@oregon.gov • Please do not call. All calls or personal emails will be referred back to MFNOFA@oregon.gov • LIHTC / OAHTC program: Tai Dunson-Strane, tai.dunson-strane@oregon.gov • HOME/HTF program: Carole Dicksa, Carole.Dicksa@oregon.gov • HUD 811 program: Angela Yardley, Angela.Yardley@oregon.gov • FAQs will be published at regular intervals • Questions until: March 15th Oregon Housing and Community Services

4. NOFA Process – Dates to Remember • Site Review Request Deadline: February 8th, 4:00pm • Close Date: March 29th • Administrative Review: March 29th– April 5th • Threshold: April 5th – April 12th • Financial and Competitive Scoring: April 15th – May10th • State Housing Stability Council: June 7th Oregon Housing and Community Services

5. Site Review Checklist • You must complete the Project Site Review Checklist. If an Application involves more than one (1) land parcel, complete a Review Checklist for each parcel. • The deadline for initiating scheduling the site visit is Friday February 8,2019 at 4:00 pm. In order to initiate scheduling a site visit, send an email to Site.Visit@oregon.gov. If you do not contact an OHCS Representative before the deadline, the OHCS Representative has no obligation to view the Project site or sign the Review Checklist. • Include in the request the following: • Sponsor’s name • Site name • Site address • Contact information of person responsible for scheduling and attending the site visit • Name of person completing the site review checklist • Attach filled out project site checklist to the email. • OHCS will use the Vicinity Map for both the environmental and architectural reviews. The map must include the scale. Mark the site location on the map, as well as a number of amenities and natural locales (parks, etc.). See the SITE/AREA MAPS portion of the Project Site Review Checklist for details. • If you already have the results of an environmental Phase 1, engineering, soils or other study, please submit the summary pages. Do not submit the whole report. Such reports are not a Threshold requirement. Oregon Housing and Community Services

6. Oregon Housing and Community ServicesMultifamily Energy ProgramMekha Abraham – Technical Manager Oregon Housing and Community Services

7. The Two 2019 NOFAs 9% LIHTC NOFA • You must be requesting 9% LIHTC’s • Other funds are available, see NOFA • This is offered on a regional competitive basis • No income averaging allowed through this NOFA HOME NOFA • You must be requesting OHCS HOME Funds • Other funds are available, see NOFA • This is offered on a competitive basis to projects located in the Balance of State region. Oregon Housing and Community Services

8. Regions Oregon Housing and Community Services

9. LIHTC NOFA Allocations LIHTC NOFA will allocate the following funds to the Metro, Non Metro Participating Jurisdiction, and Balance of State Regions Oregon Housing and Community Services

10. HOME NOFA Allocations HOME NOFA will allocate the following funds to Balance of State Region: Oregon Housing and Community Services

11. Funding Request Limits for 9% LIHTC projects • Organizations may request more than 10% of the allocated 9% LIHTC credits, however if more than 10% is requested the project must also submit a 4% LIHTC pro forma. No sponsor may receive more than 20% of the allocated 9% LIHTC credits in any one year. - In 2019, 10% of the total 9% LIHTC OHCS annual allocation amount is determined to be: $1,200,000; 20% was determined to be: $2,400,000 • Minimum $500,000 HOME request with LIHTC • Minimum $500,000 HTF request with LIHTC • Maximum $3M in OAHTC per project Oregon Housing and Community Services

12. Funding Request Limits for 9% LIHTC projectsGap funding • New Construction/Acquisition/Rehab: • – NEW– Must target units at 30% AMI or less • HTFunits and Gap units cannot be one and the same • The cost per unit are as follows: studio $140,625, 1 bedroom $170,625, 2 bedrooms $204,375, 3 bedrooms $232,500, 4 bedrooms $253,125 • Projects may not apply for more than 10% of Total Project units. • Preservation • Maximum $400,000 in Gap funding if utilizing Metro and Non-Metro Participating Jurisdiction Region HOME funds • Maximum $200,000 in Gap funding in Balance of State when used with state HOME funds • Maximum $400,000 in Gap funding in Balance of State when not used with State HOME funds Oregon Housing and Community Services

13. The Documents General Policy Guidance Manual (GPGM) • Establishes guidelines that apply to all projects, regardless of the funding source(s) Qualified Allocation Plan (QAP) • Establishes guidelines for the LIHTC program Program Manuals (HOME, HTF, OAHTC, GHAP, etc.) • Establishes federal regulations and OHCS guidelines that apply to projects that use each programs funds NOFA Documents (LIHTC and HOME) • Establishes the process, thresholds, and competitive scoring elements used for each NOFA NOFA Instructions (LIHTC and HOME) • Detailed instructions for the NOFA submission, including what Attachments (forms and materials) need to be submitted for the Administrative, Threshold, and Competitive Scoring Review. Project Development Manual (PDM) • Establishes Planning, Due-Dilligence, Design, and Construction standards pertaining to all Department programs Oregon Housing and Community Services

14. The NOFA Process • Consolidated Process: The Department offers funding for multifamily affordable housing projects in a consolidated process called the Notice of Funding Availability (NOFA) • Simultaneous Application: Each NOFA is comprised of several sources of program funds. In one document, an applicant can request these funds from multiple programs simultaneously • Complete Packaging: It is important to note the Applicant must complete all application, threshold and competitive scoring materials, as well as the supplemental materials for each program Oregon Housing and Community Services

15. The NOFA Submission Part 1: Application Data Submission Part 2: The Applicant and Project Information Submission Part 3: The Threshold Submission MWESB Engagement Readiness to Proceed Core Development Documents Development Team Capacity Ownership Integrity Total Development Cost Per Unit Part 4: Competitive Scoring Submission Questionnaire Pro Forma Financial Assumptions Resident Services Description Tenant Survey Tenant Relocation Questionnaire Part 5 - 9: The Supplemental Program Materials Oregon Housing and Community Services

16. Part 1: Application Data Submission Attachments 1.1: NOFA Cover Sheet 1.2: Application and Charge Transmittal 1.3: Authorization and Acceptance Signature Authority Form 1.3A: Board of Directors Resolution (if required) 1.4: Organizational Documents Attachment 1.5: Diversity, Equity and Inclusion 1.6: Application Submission Checklist Oregon Housing and Community Services

17. Part 2: Applicant and Project Information Submission The following information is required on the form: • Applicant and Project information • Development Team information • Department Based Program Funding Requests • Unit Type and funding Program designation • Target Population • Rent Table • Site and Building information This information is critical to providing a thorough snapshot of the project. It is used throughout the review process to orient the reader to the project highlights. Oregon Housing and Community Services

18. Part 3: Threshold Submission 3.1: Minority Women and/or Emerging Small Business (MWESB) Engagement plan 3.2: Readiness to Proceed 3.3 Core Development Documents (CDDs) 3.4: Development Team Capacity 3.5: Ownership Integrity 3.6: Total Development Cost Per Unit Oregon Housing and Community Services

19. Part 3.1: MWESB Engagement Plan Minority Owned Business (MBE): • Minority-owned Business Enterprise: 51% or more owned and controlled by recognized minority group (Black or African American, Hispanic American, Native American, Asian Pacific American, Subcontinent Asian American) Women Owned Business (WBE): • Women-owned Business Enterprise : 51% or more owned and controlled by women Emerging Small Business (ESB): • Business Oregon Minority, Women and Emerging Small Business registry http://www.oregon4biz.com/How-We-Can-Help/COBID/ • Includes Service Disabled Veteran owned firms as of 2016 Oregon Housing and Community Services

20. Part 3.1: MWESB Engagement Plan • Does not change any HOME Program reporting requirements at project completion • 3.1 Submission is used for both threshold and competitive scoring • Focus is on engagement of qualified contractors and outreach • Include your plans and experience conducting outreach and engaging Minority owned, Women-owned, Service-Disabled-Veteran-owned contractors / sub contractors and Emerging Small Business • Identify plan and targets to be utilized to contract with MWESB contractors/subcontractors in the construction and operation of the proposed Project Oregon Housing and Community Services

21. Part 3.2: Readiness to Proceed A: Zoning & Site Control: Project must be zoned for intended purpose; provide Certification. Applicant must have site control through appropriate purchase agreements B: Federal Project Resource Status: Applicant must have initiated process with resource provider; i.e., provide copy of application C: Development Schedule: Applicant must complete OHCS form D: Project Site Visit / Checklist: Need to have initiated contact by no later than 4pm, February 8th thru the following email (Site.Visit@oregon.gov). Requests for review after this date and time will not be considered and will cause an application to be considered non-compliant resulting in a failed application. Oregon Housing and Community Services

22. Project Development Manual (PDM) • Purpose of the PDM: • Contains Department Standards for Housing Development • Contains Processes for Department Engagement with Stakeholders in Core-Development Activities • Core-Development Activities/Documents Defined: • See PDM Appendix A.1, for full definition. Use version 2017.12.01 with “Update 2018-R1”. Oregon Housing and Community Services

23. Project Development Manual – Cont. • Applicability of the PDM: • PDM Version Applicability: • Latest published Version; 2017.12.01 applies only to projects where the funding application is received after December 1, 2017. Projects receiving funding associated with applications made prior to December 1, 2017 will continue to use the previous version of the PDM that applied to that project at the time application was made. Projects use the same PDM version for the full duration of the project even when a new version is subsequently published by the Department • Degree of Applicability to Project: • Degree of Applicability varies depending on funding type (see PDM Chapter 1.3) Oregon Housing and Community Services

24. Part 3.3: Core Development Documents (CDDs) • See Part 3 of the PDM for CDD requirements at the time of application. • PDM, Part 3, Chapter 3.1: “CDD Checklist” • Must be submitted as part of the application in section 3.3 Core Development Documents • PDM, Chapter 3.1 • Required CCDs are listed in the checklist. The checklist must be filled out and submitted with the required CDDs • PDM, Chapter 3.2 • Provides a description of current content and format requirements for each required CDD Contact Kevin Burgee with any PDM or CDD questions: Kevin.Burgee@oregon.gov Oregon Housing and Community Services

25. CDD Checklist Required with Application Oregon Housing and Community Services

26. Part 3.4: Development Team Capacity A: Capacity Worksheet This form contains all the key categories that the reviewers need to properly evaluate the sponsor’s experience and capacity. When a sponsor notes that they do not have experience or capacity in a certain area, they must indicate the action plan that will mitigate this risk. B: Real Estate Holdings This is a form that identifies all the real holdings of the sponsor or sponsors and what their current balances, values, net income, LTV’s and debt service covers are. To the extent that a project listed on the schedule has a material problem, such as negative cash flow or < 1.0 Debt Service Cover, the sponsor must provide a written explanation of the situation and its mitigation plan. Oregon Housing and Community Services

27. Part 3.5: Ownership Integrity • Ownership Integrity questionnaire: these are financial representations regarding such matters as fraud conviction, bankruptcy, and debarment. Oregon Housing and Community Services

28. Part 3.6: Total Development Cost / Unit • Threshold submission: complete the form, listing your project development & construction cost / unit type in the provided table. Provide explanation for any unit costs that exceed the listed maximums • Urban limits apply to all projects in the Metro Region; as well as any that meet at least two of the Urban project criteria (more than 4 stories, required structured parking, elevator, on urban infill site) • Total Development Cost / Unit calculated by unit size on the summary page of the pro forma; listed as Development & Construction Cost / Unit Type Oregon Housing and Community Services

29. Competitive Scoring Submission 4.1: Questionnaire Provides information for scoring Need, Impact and Preferences 4.2: Pro Forma 4.3: Financial Assumptions 4.4: Resident Services 4.5: Tenant Survey & Relocation 4.6: Tenant Relocation Questionnaire Provides information for scoring Financial Viability and Capacity Oregon Housing and Community Services

30. Competitive Scoring Overview 9% LIHTC NOFA and HOME NOFA scoring have minor variations; this review is specific to LIHTC NOFA. See HOME NOFA for HOME scoring criteria Oregon Housing and Community Services

31. 4.1: Competitive Scoring Questionnaire • Captures information on: Need, Impact, and Preferences • Notes / Reminders: • Data as well as narrative responses are incorporated • Remember your audience: format and organize thoughts • Review committee is not responsible for reviewing the entirety of your project application and attachments; provide any and all information you would like them to know in your Questionnaire responses • Formatting in Excel: • Add paragraph breaks within a cell by typing ALT+Enter • Use traditional font formatting; bold / underline / italics • Add additional space in narrative section by click/dragging to stretch the size of the row or by adding rows to the selected area • Questionnaire Submission: • Hard copy printed out • Include electronic copy of the Excel document (not scanned PDFs) Oregon Housing and Community Services

32. 4.1: Competitive Scoring Questionnaire Cont. • Includes Scoring Criteria for data driven elements; specific numeric points attributed to specific data values • Includes Scoring Guidance for narrative elements; role is to provide increased clarity to applicants and the external scoring committee as to the type of points that should be attributed to a variety of scenarios • Scoring Guidance is not intended to be comprehensive of all project scenarios, nor is it indicative of any preferences for population types or the full span of items that could be reported and included in responses. Applicants are encouraged to provide information that is directly applicable to their proposed project, the guidance is intended to be a structure through which these narratives can be weighted • Scoring Guidance is placed in the narrative box for individual questions, please delete in order to enter your project specific response Oregon Housing and Community Services

33. Competitive Scoring: Need • Target Populations: 5 points • Matrix assigning higher points to projects that serve households with children and/or Special Needs populations (including but not limited to veterans, elderly, people with disabilities, previously incarcerated persons, survivors of domestic violence) • Severity of Need: max 9 points • Can be met with listed criteria around: Population Growth, Rental Housing Age, Severe Housing Burden, Affordable Housing Gap (or Affordable Housing Percent for Preservation) • Data provided for Population Growth, Rental Housing Age, and Severe Housing burden Oregon Housing and Community Services

34. Competitive Scoring: Need - Cont. • Equitably Served Geography: max 6 points • Need Distribution (each City / County percentage of the State’s Severe Rent Burdened and Low-Income (60% or less) Renter Households) • Affordable Housing Inventory (sum of each city / county funded affordable housing units) • Underserved Geography calculation compares the Actual Distribution of the Affordable Housing units to how the Affordable Housing Units would be distributed using the Need Distribution calculation • The greater the gap in Actual vs Theoretical the more points • Each community will be able to use the better of their City or County rating Oregon Housing and Community Services

35. Competitive Scoring: Impact Two versions of the Impact Scoring: New Construction and Acquisition / Rehabilitation Projects Preservation Projects & Public Housing undergoing preservation transaction Measurements are on the same scale, but Preservation Criteria is more focused on the impact to the tenant and risk of loss to the community while New Construction and Acq/Rehab focuses on the impact to the community and tenant outcomes Oregon Housing and Community Services

36. Competitive Scoring: Impact for New & Acq/Rehab • Plan Alignment (5 points) • HOME/HTF Leverage (6 points) • State Initiative / Policy Alignment (5 points) • Resident Services (5 points) • Affirmative Fair Housing Marketing (5 points) • Location Efficiency (7 points) • Location Preferences (7 points) Oregon Housing and Community Services

37. Competitive Scoring: Impact for Preservation • Tenant Impact (15 points) • Risk of Loss (6 points) • Prudence of Investment (5 points) • Plan Alignment (2 points) • HOME/HTF Leverage (4 point) • Resident Services (2 points) • Affirmative Fair Housing Marketing (2 points) • Location Efficiency (2 points) • Location Preferences (2 points) Oregon Housing and Community Services

38. Competitive Scoring: Impact • Notes / Reminders: • If it is a scattered site project, provide information pertaining to ALL SITES • Use Scoring Guidance in narrative boxes; delete the guidance to enter your own response Oregon Housing and Community Services

39. Competitive Scoring: Impact – Cont. • HOME Leverage points: apply to all regions in the state.You are asked to provide a Letter of Interest from the appropriate Participating Jurisdiction listing the amount of HOME reserved for the project. If you are in a jurisdiction that awards a source like Tax Increment Financing in lieu of HOME, you may receive these points if you provide an explanation that is satisfactory to the Scoring Committee • HTF Leverage points: OHCS offers HTF funds on a statewide basis. To receive these points you must meet the program requirements and must request a minimum of $500,000. See HTF program manual for more details Oregon Housing and Community Services

40. Competitive Scoring: Impact – Cont. • State Initiative/Policy Alignment: Identify ways in which the proposed project aligns with State initiatives and policy as articulated by the Governor and the Statewide Housing Plan. Points are now being offered in this category for projects that target from 1%-10% of total units to affordability at 30% AMI or less • Resident Services: Applicant must describe delivery of resident services through a narrative questionnaire where the applicant demonstrates a thorough understanding of the population being served, the services being targeted and how to scale those services to be responsive to tenant needs. The response must also show a well thought out plan of action which identifies the partners involved, division of responsibilities and accountability for service provision, referral and outcome tracking • This section contains questions that require narrative answers. Please be concise and thorough. Answer each questions with the understanding that the score team will not have your complete application to review and will only score this section based on your answers Oregon Housing and Community Services

41. Competitive Scoring: Impact – Cont. • Affirmative Fair Housing Marketing: Concept is to provide maximum points to those projects who make commitments to achieve beyond the minimum requirements of the Affirmative Fair Housing Marketing Plan (AFHMP). Examples are provided in the Scoring Guidance. • Since plans are not submitted at the time of application, there is a worksheet in the excel document where you will establish the commitments under a few components of the AFHMP. If funded, this information will be relayed to your Compliance Specialist to ensure follow through on these commitments. Oregon Housing and Community Services

42. Competitive Scoring: Impact – Cont. • Location Preferences: Applicants can get points for EITHER being in a: • Vulnerable Gentrification Area • OR • Opportunity Area • In order to be considered a Vulnerable Gentrification Area there MUST be a Revitalization Plan on concerted and collaborated Revitalization Effort underway. This response will be reviewed by Scoring Committee for determination • Data is populated in the worksheet based on your project Census Tract • Data is also available to be viewed in a mapping interface, available online through links provided in worksheets Oregon Housing and Community Services

43. Competitive Scoring: Preferences • Serving Lowest Incomes (7 points) • Based on Average Gross Median Income; calculated in the Questionnaire; 5 points • Incorporation of rent assistance; 2 points • Federal / QAP Preference (3 points) • Intended for eventual tenant ownership • Energy efficient measures employed • Evidence of historic value for the community • Established commitment to marketing to public housing waitlists Oregon Housing and Community Services

44. Competitive Scoring: Financial Viability • Development budget review • Operating budget review • Reasonable request and demonstrated need for resources • Well documented and explained construction costs • Explained exit strategy at year 15 • Satisfactory Relocation Plan and Budget (if rehab/preservation) Oregon Housing and Community Services

45. Competitive Scoring: Capacity • Owner / Sponsor / Management performance (9 points) • Federal Reporting (8823/REAC) • OHCS portfolio compliance: • REAC • Physical • Tenant Files / Income Verifications • Resident Services • Owner/Management Responsiveness • OHCS portfolio viability: • Financial Submission • Financial audit closed • Audited Debt Coverage Ratio • Asset management community evaluation • Minority Women and Emerging Small Business Utilization (2 points) • Readiness to proceed (4 points) Oregon Housing and Community Services

46. Part 4.2: Pro Forma The current pro forma must be used. Available on the website in a zipped folder, includes directions for using / unzipping the folder to access the file • Highlighted areas in green to fill in project data • Make sure all cells are readable on hard copies • Electronic copy required on CD or USB Storage device and must match hard copy Oregon Housing and Community Services

47. Part 4.3: Financial Assumptions • Without requiring market studies or appraisals, this is a critical area of information for the reviewers. • The rent and expense information should be detailed and concise. Cite your sources but do not attach tables, surveys, etc. Oregon Housing and Community Services

48. Part 4.4: Resident Services Description • OHCS has long recognized resident services as an integral part of the ongoing success of affordable housing developments. • Appropriate services are important and empowering to residents and they bring benefit to project management, to the project sponsor/owner, and to the local community as well. • The anticipated outcomes and overall goals of the Resident Services Plan are: • Through coordination, collaboration, and community linkages, residents will be provided the opportunity to access appropriate services which promote self-sufficiency, maintain independent living, and support them in making positive life choices; and • To maintain the fiscal and physical viability of the development by incorporating into the ongoing management the appropriate services to address resident issues as they arise. Oregon Housing and Community Services

49. Part 4.5: Tenant Survey A: Existing Tenant Survey: complete the survey of existing tenants using the format provided. The survey must be augmented to include third party income verification and be completed and approved by the Department prior to closing. B: Additional Demographic Characteristics, for HOME projects only: Demographic Information: if the Project is using HOME funds, complete the required demographic characteristics form as required. Oregon Housing and Community Services

50. Part 4.6: Tenant Relocation Questionnaire • Tenant Relocation: if the Project will result in either permanent or temporary relocation of residents this questionnaire must be completed regardless of funding sources. Oregon Housing and Community Services