harris county community services department

Texans Feeding Texans Home-Delivered Meal Grant Program

HARRIS COUNTYCOMMUNITY SERVICES DEPARTMENTHOME Investment Partnerships ProgramProgram WorkshopFebruary 10, 2011

WelcomeDivisions of Community Services DepartmentHousing and Community DevelopmentEconomic DevelopmentTransit ServicesSocial ServicesFinancial ServicesAdministrative ServicesDevelopment StaffChristy Lambright, Assistant Director of Planning and DevelopmentMayra Guevara Bontemps, Development ManagerShanna LeBrum, Senior Program AnalystKelly Opot, Program AnalystMai X. Nguyen, Housing AnalystToni Candis, Program Analyst

2WelcomeProgram Funding Available AnnuallyCommunity Development Block Grant (CDBG) ProgramEmergency Shelter Grants (ESG) Program HOME Investment Partnerships (HOME) ProgramSpecial Program Funding Neighborhood Stabilization Program (NSP)Homelessness Prevention & Rapid Re-housing Program (HPRP)

3CSD OverviewUnderstanding Harris County

Consolidated Plan 2008-2012http://www.csd.hctx.net/PYConsolidatedPlan.aspx Outlines Harris Countys goals and objectives for serving the communityAnnual Action Planhttp://www.csd.hctx.net/pr_annualactionplan.aspx Lists all projects funded for each entitlement yearFunding Opportunitieshttp://www.csd.hctx.net/rfq.aspxhttp://www.csd.hctx.net/ps_rfp.aspxCompetitive process for distributing all available funds

4Service Area Unincorporated Harris County and its 15 cooperative cities:

Bellaire SeabrookDeer Park ShoreacresGalena Park South HoustonHumble TomballJacinto City WallerKaty WebsterLaPorte West University PlaceMorgans Point

** Houston, Baytown and Pasadena receive their own entitlement funds and are not included in the Harris County service area.

PY2011 HOME Entitlement

Program Review

Program ReviewWhat is the purpose of HOME?

To expand the supply of permanent, decent, affordable housing

To expand the supply of affordable housing providers

To strengthen the ability of state and local governments to provide housing

To strengthen public-private partnerships

Program ReviewIn what format do we provide HOME funding?HUD permits:Interest bearing and non-interest bearing loansForgivable loansLoan guaranteesEquity investmentsInterest subsidiesGrantsHarris County provides funds in the form of:Forgivable loansInterest bearing loans

Program ReviewProgram Requirements

Affordable Housing PolicyMaximum Income LimitsSubsidy LimitsMatch RequirementMinimum Property StandardsLong Term Affordability


Affordable Housing PolicyHarris County must administer its HOME program in a manner that provides housing that promotes greater choice of housing opportunities while facilitating and furthering full compliance with Title VI of the Civil Rights Act of 1964, the Fair Housing Act, Executive Order 11063, and HUD regulations.


Income Limits Median Family Income (MFI) for Houston-Baytown-Sugar Land, TX

Currently MFI of a family of 4 persons is $65,100

IncomeLimit1 Person2 Person3 Person4 Person5 Person6 Person30%$13,700$15,650$17,600$19,950$21,150$22,70050%$22,800$26,050$29,300$32,550$35,200$37,80060%$27,360$31,260$35,160$39,060$42,240$45,36080%$36,500$41,700$46,900$52,100$56,300$60,450Source: US Department of Housing and Urban Development, April 2010


Subsidy LimitsThe minimum amount of subsidy for an affordable housing project is $1,000 per HOME-assisted unit

The maximum subsidy is based on the 221 (d)(3) program limits for the metropolitan area established each year

Harris County imposed limit for multifamily is $40,000 per HOME assisted unit


Match RequirementThe HOME Program requires match funds in an amount equal to no less than 25 percent of the total HOME funds requested for project costs.

Match is a permanent contribution to affordable housing. It is NOT leveraging.

Program ReviewProgram RequirementsMatch Requirement Eligible Match Sources

Cash contributions from a non-federal sourceDonated construction materials or voluntary laborValue of donated land or real propertyValue of foregone interest, taxes, fees or charges levied by public or private entitiesInvestments in on- or off-site improvementsProceeds from bond financingCost of supportive services to families living in HOME-assisted unitsCost of homebuyer counseling to families purchasing HOME-assisted unitsSweat Equity


Match Requirement

How and when is match verified?As part of the RFP (Request For Proposal), a formal letter or documentation of match commitment for the project must be attached to the application.

When the project is awarded and during project monitoring period. The Finance section will monitor the match committed for the project.


Minimum Property StandardsProperties must meet both:Harris Countys Minimum Property Standards*State/local code/standards(If no state/local code, meet model codes identified in 24 CFR Part 92.251 **)Must meet Model Energy Star CodesMust meet latest IRC (International Residential Code) *Found on our website at http://www.csd.hctx.net/ps_homerepairprogram.aspx

**Found on HUD website at http://www.hud.gov/offices/cpd/affordablehousing/lawsandregs/regs/finalrule.pdf


Housing Quality Standards InspectionsHarris County Inspection Services must inspect all housing units prior to leasing/purchase and every year thereafter for rental properties.


Long Term Affordability To ensure that HOME investments yield affordable housing over the long term, HOME imposes rent and occupancy requirements over the length of an affordability period.

Period of Affordability = Period of Compliance

Program Review Eligible Costs

Hard CostsSoft Costs-site acquisition-credit reports-site improvements-financing fees-lead hazard reduction-legal fees-contractor overhead-architectural fees-direct construction-pj incurred

Program Review Eligible Activities

Homebuyer Activities (Single family, two four family homes, Condominiums)

Multifamily Rental Housing

Community Housing Development Organization (CHDO) activities

Program ReviewHomebuyer Activities

Acquisition of land for the development of single family homes.

Construction of single family homes.

Down payment and closing cost assistance.

Program ReviewHomebuyer Activities Affordability Period

The affordability period represents the minimum length of time a recipient of homeownership assistance must maintain and reside in the property as his/her primary residence.

How is this done?Lien is placed on propertyMonitoring to ensure property still primary residence

Program ReviewHomebuyer Activities - Affordability Period

Exercise IHomebuyer receives $14,200 in down payment assistance. What is the amount of time that they must remain in the residence as their primary home?

Program ReviewHomebuyer Activities Affordability PeriodHOME $Affordability periodUnder $15,0005 Years$15,000 to $40,00010 YearsOver $40,00015 Years


Exercise IIHCCSD provides $25,000 of HOME subsidies per unit to a for-profit developer. The developer sells the homes at market price once the development is complete.

Homebuyer is purchasing one of these assisted HOME units and also receives down payment assistance in the amount of $14,200.

What is the affordability period or amount of time that they must remain in the residence as their primary home?


Mechanism to recapture all or portion of original HOME investment

Resale:New buyer needs to be low-income and occupy as primary residence

Recapture:Any willing buyer, but Harris County recaptures the entire amount of original HOME investment

Program ReviewHomebuyer Activities - Affordability PeriodExercise II Affordability period under resale option: 10 yearsDevelopment subsidy as an indirect assistance to homebuyer:$25,000Downpayment assistance as an direct assistance to homebuyer:$14,200Total benefit to homebuyer$39,200

Program ReviewHomebuyer Activities - Affordability PeriodExercise II 2) Affordability period under recapture option: 5 yearsDownpayment assistance as an direct assistance to homebuyer:$14,200

Development assistant to the unit for $25,000 is not counted under recapture option in determining the affordability period

Program ReviewMultifamily Rental Housing

Acquisition of land for the development of affordable rental multifamily units.

Acquisition and rehabilitation of existing multifamily units for affordable permanent or transitional rental housing.

Construction of new multifamily affordable rental housing.

Program ReviewMultifamily Rental HousingMaximum HOME Investment

HUD provides guidelines, 221 (d)(3) program limits, for the maximum amount of HOME funds that may be expended per unit based on size (one bedroom, two bedrooms, etc.). Harris County has set a maximum per unit subsidy of $40,000

Program ReviewMultifamily Rental HousingMaximum HOME Investment

Exercise IIITwenty one (21) units of a multifamily rental housing project will be built with HOME funds provided by HCCSD. What is the maximum HOME subsidy for this project?

Program ReviewMultifamily Rental HousingHOME-Assisted Units

Exercise IV A project consisting of construction of a 120 unit multifamily development is requesting $1,000,000 in HOME funding. What is the number of HOME-assisted units?


Unlike other federal grant programs, HOME distinguishes between the units in a project that have been assisted with HOME funds and those that have not.


HOME-assisted units must be identified as fixed or floating.

HOME-assisted units have rent and occupancy rules that apply.


For properties with both assisted and non-assisted units, theremust be a designation of fixed or floating units.

Fixed units - The specific units that are HOME-assisted are designated and never change (these specific units are subject to HOME rents and occupancy requirements).

Floating units The units that are designated as HOME-assisted may change over time as long as the total number of HOME-assisted units in the project remains constant.

Program ReviewMultifamily Rental Housing- Maximum Rents

Every HOME-Assisted unit is subject to rent limits designedto help make rents affordable to low-income households. These rent limits are called HOME Rents

There are two HOME Rents used in the HOME program.

High HOME RentsLow HOME Rents


High HOME Rents are the lesser of:The Section 8 Fair Market Rents (FMRs) for existing housing; or30% of the adjusted income of a family whose income equals 65% of median income.

0 BR1 BR2 BR3 BR4 BR$659$735$892$66$1170Source: U.S. Department of Housing and Urban Development, April 2010


Low HOME Rents For projects with 5+ HOME-assisted units, 20% of HOME-assisted units must have rents no greater than:30% of the tenants monthly adjusted income, OR30% of the annual income of a family whose income is 50% of the median income0BR1BR2BR3BR4BR $570$610$732$846$945Source: U.S. Department of Housing and Urban Development, April 2010

Program ReviewMultifamily Rental HousingPROGRAM RULEThe program funds rule requires that at least 90 percent of HOME-assisted units must be reserved for residents whose income does not exceed 60 percent of the median family income at lease up.

For rental properties of which five or more units will be HOME-assisted, at least 20 percent of the units must be reserved for families who meet the threshold as very-low income (at or below 50 percent median income).

The balance of rental units must assist tenants with incomes that do not exceed 80 percent of the median family income.

Program ReviewMultifamily Rental Housing- Rents

Dont Forget:utility allowances must be accounted for in your rent structure

Where do I get these?Local public housing authority

Program ReviewMultifamily Rental Housing - Affordability Period

ActivityPer Unit HOME $Unit must remain affordable for at leastRehabilitation or acquisition of existing housing Less than $15,000/unit5 years$15,000-$40,000/unit10 yearsGreater than $40,000/unit15 yearsRehabilitation w/financingAny amount15 yearsNew construction or acquisition of new housing Any amount20 years

Program ReviewHOME Beneficiaries

All beneficiaries of HOME-assisted units must be low to moderate income

Program ReviewCalculating Income Eligibility

HCCSD has adopted the Section 8 Annual Income (Part 5) method of calculating annual income

Basic GuidelinesAnticipated Annual Gross IncomeAll Adult Members CountAll Sources of Income Count*Value of Assets Must be Considered Greater than $5,000

*Applicable income per HUD guidance


Basic ProcessDetermine Household SizeDetermine Whose Income CountsDetermine How Much Income is CountedDetermine Value of Assets

Program ReviewCalculating Income EligibilityEXERCISE V

The King household situation: John (38) and Mary (35) are married and have three children, Josh (18), Sophie (17), and Kim (9). Mary is 7 months pregnant with her fourth child. Household Size?

Whos income is counted?


EXERCISE VJohn works full-time at Chick&Fry making $8.50/hr. as a cook in the evenings. He receives a $200.00 annual bonus and is not going to receive overtime. He is paid bi-weekly.$8.50 x 80 hrs./prd. x 26 py prd./yr = $17,680.00+Bonus $200.00 Total Income = $17,880.00

Source Documentation: Three (3) months worth of paycheck stubs or a Verification of Employment

Program ReviewCalculating Income EligibilityEXERCISE VMary baby sits for the neighbors every week during the summer, and they pay her cash in the amount of $300.00 per week for her services.$300.00/wk. x 12 wks/yr = $3,600.00 Total Income = $3,600.00



EXERCISE VJosh works part-time at Sunny, a convenience store while he is going to school for his business degree. Josh gets paid $7.00/hr. as a stock clerk, and does not have a set schedule of hours. Josh also receives financial aid of $3,000.00 for school, and is enrolled part-time.(20+30+17.4+34+34+20+30+10+20+30+17.4+24) = 286.8 hrs/12 wks = 23.9 hrs. $7.00 x 23.9 hrs/wk x 52 wks/yr = $8,699.60

Total Income = $8,699.60


Program ReviewCalculating Income EligibilityEXERCISE VSophie works part-time at Newday, a beauty shop as a general clerk. She receives $5.50/hr. and works 15 hours a week year round with the exception of 3 three weeks off for break.$5.50x 15 hrs./wk x 49 wks./yr. = $4,042.50

Total Income = $0.00She is Minor ===> None of her income counts!

Source Documentation: Birth Certificate required to confirm her date of birth


Total Household Annual Income

Total Annual Income from Wages:John$17,880.00Mary$ 3,600.00Josh$ 8,699.60Sophie$ 0.00

Total Kings Annual Income$30,179.60

Is the family income eligible ?

Program ReviewCalculating Income Eligibility Other Income Counted in the Household Annual Income Calculation Section 8 (Part 5)

Net income from the operation of a business or profession Interest, dividends, other net income of any kind from real or personal propertyWelfare Assistance, Social Security benefitsAnnuities, insurance policies, retirement fundsUnemployment and disability compensation, workers compensationAlimony and child support paymentsAll pay and allowances of a member of the Armed ForcesInheritances, capital gains, lottery winnings, victims restitution, insurance settlement

Program ReviewWhat is a CHDO?A Community Housing Development Organization (CHDO) is a private nonprofit, community-based organization that has staff or consultants with the capacity to develop affordable housing for the community it serves.

Program ReviewCHDO Capacity?1) Sponsor: -solely or partially owns-agrees to convey ownership to a second nonprofit2) Developer:-owns the property and develops the project OR-has contractual obligation to property owner to develop3) Owner:-sole or partial owner, must be managing general partner-have another entity act as developer

Program Review CHDO Activities

The acquisition, rehabilitation andnew construction of rental housing

Acquisition and/or rehabilitation of homebuyer properties

New construction of homebuyer properties Direct financial assistance to purchasers of HOME-assisted housing that has been sponsored or developed with HOME funds by the CHDO

Program ReviewCHDO Eligibility

CHDOs must meet requirements pertaining to the following:

Legal Status Organizational Structure Capacity, Experience and Financial Accountability

http://www.hud.gov/offices/cpd/affordablehousing/training/web/chdo/roles/sponsor.cfm

Program ReviewBecoming a Certified CHDO Legal StatusMust be organized under state/local law. The purpose oforganization must include the provision of decent housingthat is affordable to low to moderate income persons. This commitment must be evidenced in the CHDOs:

CharterArticles of IncorporationBy-Laws, ORA resolution by CHDO Board of Directors

Program ReviewBecoming a Certified CHDO

Legal StatusNo Individual BenefitClearly defined service areaNonprofit status501(c)(3)501(c)(4)

Program ReviewBecoming a Certified CHDO

Organizational StructureCHDO board must be composed of the following:At least 1/3 must be representative from the low income community.- resident of a low income community- low income resident of the community - elected rep of a low income neighborhood organization

No more than 1/3 may be public officials or employees

The balance is unrestricted to professionals willing to contribute

Program ReviewBecoming a Certified CHDOCapacity and Experience Organization must:Have at least one year of experience serving the community where it intends to develop projects.

Demonstrate the capacity of their key staff or consultants to carry out planned HOME activities.

Have financial accountability standards that conform to 24 CFR Part 84.21 and must demonstrate financial capacity.

Program ReviewSpecial Assistance to CHDO

Project pre-development loans

Operating assistance

Use of HOME project proceeds

Capacity building assistance

Program ReviewOther Federal Requirements

Fair Housing and Equal OpportunityAffirmative MarketingHandicapped Accessibility Section 504Davis-Bacon Labor StandardsRelocation/ Acquisition (URA)Lead-Based PaintEnvironmentalConflict of InterestDebarred ContractorsSite & Neighborhood Standards

Program ReviewOther Harris County Requirements

Energy Star CertificationNeighborhood NotificationSpecialized TransportationUnit SizeConcentration Policy

Program ReviewResource Sites

HUDs HOME Program Traininghttp://www.hud.gov/offices/cpd/affordablehousing/training/index.cfm

Title 24 Part 92 HUDs HOME Programhttp://www.hud.gov/offices/cpd/affordablehousing/lawsandregs/regs/finalrule.pdf

Harris County Community Services Departmentwww.csd.hctx.net

Question and Answer

Questions?Contact: Mai X. NguyenHousing [email protected]

Chart12447538.75489507.75326338.5

General $2,447,539CHDO $489,508Administration $326,339

Sheet1GeneralCHDOAdministration2,447,539489,508326,339

Sheet2

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harris county community services department

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