ohcs powerpoint presentation - oregon · part 2: the applicant and project worksheet the following...
TRANSCRIPT
LIFT HomeownershipFall 2018 Notice of Funding Availability
(NOFA) Training
• Welcome
• Dates to Remember
• LIFT Program Overview
• NOFA Submission Overviews– Part 1 – Preliminary Submission
– Part 2 – Application and Project Worksheet
– Part 3 - Threshold Requirement Submission
– Part 4 - Competitive Scoring Submission
• General Reminders
• Questions
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NOFA Training Agenda
Oregon Housing and Community Services
3
NOFA Process – FAQs/Dates to Remember
Oregon Housing and Community Services
• Questions should be submitted to:
Please include “LIFT NOFA Question” in the
subject line of emails.
• FAQs will be published at regular intervals
• Questions accepted until: January 9, 2019
• Application due date: January 18, 2019
• $11,320,000 in Article XI-Q bond proceeds
• Soft Set-Aside, 50% ($5,660,000) to Rural areas and 50% ($5,660,000) to Urban areas
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LIFT Homeownership Funding
Oregon Housing and Community Services
• New Construction
• Conversion of existing non-housing structures
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LIFT NOFA – Eligible Projects
• Developments that are under construction (including site work) at the time of application are not eligible for funding through this NOFA.
• Developments that begin construction after LIFT Reservation and before LIFT Loan Closing may have their LIFT Reservation rescinded.
• Projects aiming to rehabilitate existing residential structures or housing units are not eligible for funding through this NOFA.
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LIFT NOFA – Eligible Projects
Rural Areas: an eligible category for receiving MF LIFT funds through this NOFA which focuses funding on Projects that will serve to overcome historic disparities. Rural areas are defined as:
• All Oregon communities within the Portland Urban Growth Boundary are considered urban and not considered rural regardless of size.
• Oregon communities with population of 15,000 or less within counties that are considered Metropolitan Statistical Areas (MSA) and outside of the Portland Urban Growth Boundary (see section a). MSA Counties include Benton, Clackamas, Columbia, Deschutes, Jackson, Marion, Multnomah, Polk, Washington, and Yamhill.
• Communities with populations of 40,000 or less in the balance of the state (not defined in parts a. or b. in this section).
Note: A community may be considered rural if it had been under the population threshold within the past 3 years of published data, and if their current population is within 5 percentage points of eligibility.
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LIFT NOFA – Eligible Projects
Urban Areas: an eligible category for receiving LIFT funds through this NOFA, which serve all other areas in Oregon that aren’t included in the “Rural Areas” definition.
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LIFT NOFA – Eligible Projects
• Communities of color
• Culturally responsive organizations
• Culturally responsive services
• Culturally specific organization
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Definitions
Applicants may request up to the Lesser of:
• The value of the Land plus Land
Improvements/Site-work (excluding housing
structures)
OR
• $75,000 per LIFT homeownership unit
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LIFT Funding Request Limits
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LIFT Program Overview
• Affordability Period: minimum of 20 years OR the length of the Bonds outstanding
– Loans satisfied through repayment or extended affordability
• Incomes: all LIFT units must be available for households earning 80% or less area median income; at the time of the sale and any subsequent re-sales for the duration of the affordability period.
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LIFT Program Overview
• Construction Standards: both traditional and alternative allowable; quality; durability (30 year standard)
• Development Period: units must be ready for initial sale within 36 months of LIFT reservation
• Profit: Profit is restricted to seven (7) percent of the total project cost.
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LIFT Program Overview
• Underwriting Guidelines for LIFT: – Financing identified; Letter of Interest (LOI) from construction lender for overall Project
– Project construction schedule supports that all homes in the Project will be ready for sale within 36 months of reservation of funds
– Demonstration that Project applicant has done due diligence to demonstrate that potential mortgage lenders exist.
– Demonstrate experience or understanding in running a land lease or applicable association.
– Demonstrate knowledge and evidence of market for homeownership product to income eligible households (previous history, waitlist, community homeownership market trends, etc.)
– Evidence that the current land zoning allows for the proposed Project; need for a zoning change is not allowable given time constraints of LIFT program.
– Valuation of land that justifies LIFT investment, as demonstrated by 3rd party appraisal.
– Construction costs estimated based on thorough and defensible methods
– Show a clear need for LIFT funds
– Phase 1: optional for projects of 4 units or less, required for projects of 5 or more units
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LIFT Program Overview
Compliance monitoring will be sufficient to cover due diligence of OHCS (see additional detail under section I below; Legal). A compliance monitoring fee of $10 per LIFT affordable home will be required annually. This fee may be adjusted over time by OHCS. Monitoring will address elements of Project operation including but not limited to:
1. Initial household income verification at home or unit purchase.
2. For any home’s or unit’s subsequent sales during the Affordability Period, verification of homebuyer income.
3. Regular or as needed verification of Owner/homeowner/condominium association compliance with program requirements.
4. Annual report on Project’s reserve fund and association’s finances.
5. Annual notification of any homeowner or unit owner in arrears (of association assessments, property taxes, insurance, etc.) and a corresponding action plan of either the Owner or the association.
6. Verification of appropriate maintenance and repair by the party responsible under the Declaration and Bylaws of the Project.
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LIFT NOFA Documents
• LIFT NOFA - Establishes the process, thresholds, and competitive scoring elements used for each NOFA
• LIFT Application Documents- Forms and other documents that outline the required submissions for application for LIFT funds.
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LIFT NOFA Application Submission
• Part 1: Preliminary Submission Review
• Part 2: Applicant and Project Worksheet
• Part 3: Minimum Threshold Requirements Review
• Part 4: Competitive Scoring 4.1 – Questionnaire
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Part 1: The Preliminary Submission Review
Part 1: The Preliminary Submission Review
– 1.1: NOFA Cover Sheet
– 1.2: Authorization and Acceptance Form
– 1.2A: Board of Directors Resolution (if required)
– 1.3: Copy of Organization Documents
– 1.4: Diversity, Equity, and Inclusion (DEI) Agreement
– 1.5: Application Submission Checklist
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1.4: Diversity, Equity, and Inclusion
Each Applicant must submit a signed DEI form, which commits to making strides toward diversity, equity and inclusion within the Applicant’s organization as well as in the work it does.
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Part 2: The Applicant and Project Worksheet
The following information is required on the form:
• Applicant and Project information
• Development Team information
• Unit Type and funding Program designation
• Target Population
• 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 reviewers to the project. We recommend that your answer be accurate and thorough.
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Part 3: The Minimum Threshold Requirements
Part 3: Minimum Threshold Requirements Review – 3.1: Project Eligibility form
– 3.2: Readiness to Proceed
– 3.3: Development Team Capacity
– 3.4: Pro Forma
– 3.5: Financial Assumptions
– 3.6: Architectural Submission
– 3.7: Construction Hard Costs
– 3.8: LIFT Agreement commitment
– 3.9: Board resolution, if needed
– 3.10: Ownership Integrity
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Part 3.1: Project Eligibility Form
Applicant must establish how a project meets the requirement to serve either:
– Rural areas
OR
– Urban areas
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Part 3.2: Readiness to Proceed
A: Zoning & Site Control:
Project must be zoned for intended purpose; provide Certification. Applicant must have site control demonstrated through appropriate documentation. The Department will not accept application for Projects that require zone changes or annexations.
B: Federal Project Resource Status
Applicant must have initiated process with resource provider; ie, provide evidence of application.
C: Development Schedule
Applicant must complete OHCS form.
D: Project Site Checklist
Must be filled out and self-certified. We will determine after submission if a site visit is required
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3.3: 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.
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3.4-3.7: Financial Documents/Architectural Submission
3.4: Pro Forma
• Must complete and submit the pro forma.
3.5: Financial Assumptions
• Without requiring market studies or appraisals, this is a critical area of information for the reviewers.
3.6: Architectural Submission
• Vicinity map; Context photos; Preliminary site design and development plan; Required site accessibility and visitability features
3.7: Construction Hard Costs
• Submit complete cost information
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3.8: LIFT Agreement commitment
• The State of Oregon, by and through Oregon Housing and Community Services (OHCS), will loan the LIFT funds as specified in Section 1.8 LIFT Program Guidelines above (specifically as described in Section I, Legal Structure).
• The Applicant must acknowledge the requirements and make a commitment to meeting corresponding OHCS requirements as detailed in 3.2.I Legal Structure of this NOFA.
• Failure to do so, even after fund reservation, will result in the funds reserved being rescinded.
• 3.9 submission is Board approval, if needed
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3.10: Ownership Integrity
Ownership Integrity questionnaire; these are financial representations regarding such matters as fraud conviction, bankruptcy, and debarment.
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Competitive Scoring
• Based on the 4.1 Submission Questionnaire as well as supporting documentation submitted as part of threshold
• Scoring:
– Financial Viability: 10 points
– Readiness to Proceed: 15 points
– LIFT subsidy and Costs: 26 points
– Innovation, Efficiency, Replicability: 9 points
– Capacity: 20 points
– Service to Communities of Color, MWESB: 20 points
• Use internal and external scoring panels
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Competitive Scoring
• Financial Viability: 10 points– Based on Financial Submissions; 3.2 – 3.7
– Scored internally by underwriting staff
• Readiness to Proceed: 15 points– Based Readiness Questionnaire; 3.2
– Scored internally by underwriting staff
• LIFT subsidy and Costs: 26 points– Based on project data submitted in 4.1 and verified against project pro
forma etc.
– Scored internally by data scoring group
• Partnerships, Innovation, Capacity: 49 points– Based on Narrative submissions in 4.1 questionnaire
– Scored by External / Internal Committee
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4.1 Questionnaire
• Tips for Narrative Responses:
– Do not assume that the reader is familiar with your organization
– External reviewers do not have access to your complete application; they only receive a copy of forms:
• 2.0 project information
• 3.1 project eligibility
• 4.1 project competitive questionnaire
– Use the project description on form 2.0 to establish a general overview of the project.
– Explain acronyms
– Not all reviewers will be subject area experts in homeownership or development; demonstrate expertise and provide high level overviews of concepts.
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4.1 Questionnaire
1. LIFT per unit subsidy requested (20 points)
2. Readiness to proceed (15 points)
3. Demonstration of construction costs that are lower than comparable industry norms (6 points)-submit data
4. Demonstration of innovation, efficiency, and replicability of building development or finance strategy (9 points)
5. Plans to address equity and diversity in the project through the use of Minority, Women and Emerging Small Business (MWESB) contracting, sub-contracting, and professional services (5 points)
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4.1 Questionnaire
6. Demonstration of Financial Viability (10 points) - Based on 3.2 – 3.7 submissions
7. Demonstration of capacity of the development team; understanding of development dynamics (up to 10 points)
8. Demonstration of capacity of management group (up to 10 points).
9. Service to communities of color (15 points)- Submit data
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General Reminders-Order of Application
• Original application must be single-sided, copies may be double-sided
• Ensure that each copy of the application is complete and includes all the same documents as the original
• Ensure that the original application is signed• Follow the order of the application submission
checklist completely and accurately • Make sure to provide all requested material in the
order indicated on the checklist • Use divider tabs to identify each section of the
application• Number every page of the application
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General Reminders-Narrative Responses/Attachments
• Keep responses within the stated length and font size in the application and use single spacing
• Define acronyms used by your organization
• Answer questions completely. Don’t assume the reader is familiar with your organization or project
• Submit only the documents/attachments that are listed on the application submittal checklist
• Always mark the project location on maps and context photos
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General Reminders-Application Submission
• Submit an original, 2 copies and an electronic copy
• Applications must be received at OHCS by
4 PM on January 18, 2019
• Post-marked, but not received will be rejected
• OHCS address:
725 Summer St. NE, Suite B
Salem, OR 97301
• Questions should be submitted to:
Please include “LIFT NOFA Question” in the
subject line of emails.
• FAQs will be published at regular intervals
• Questions accepted until: January 9, 2019
• Application due date: January 18, 2019
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NOFA Process – FAQs/Dates to Remember
Oregon Housing and Community Services
Questions?
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