Housing for a Healthy California 2020 Notice of Funding Availability - - PowerPoint PPT Presentation

Housing for a Healthy California 2020 Notice of Funding Availability Workshop

Introduction to the HHC Program and NOFA Article I – National Housing Trust Fund

HHC Website: HHC Webpage E-mail us at: HHCNOFA@hcd.ca.gov HHC Application Support: AppSupport@hcd.ca.gov

Department of Housing and Community Development Division of Financial Assistance NOFA Awards Unit

1 1:04 PM

Agenda and Housing Keeping

• House Keeping
• Presentation

Article I NOFA Guideline Overview Article I Application Overview Questions & Answers

2 1:04 PM

HHC NOFA Program Team

Nicole McCay, Section Chief Farid Barkzai, HCD Representative Jim Miwa, HCD Representative Virginia Correa, HCD Representative Contact the Program Team at: HHCNOFA@hcd.ca.gov

3 1:04 PM

HHC Overview

4 1:04 PM

• Rural Area Set Aside 20 percent
• Target population
• Stacking Unit-Based Subsidies
• SSP (Supportive Services Plan)
• PIT (Point in Time Count)
• COSR (Capitalized Operating Subsidy)
• Streamlined application forms
• HHC Program Support: HHCNOFA@hcd.ca.gov
• HHC Application Support: AppSupport@hcd.ca.gov

Target Population

5 1:04 PM

Means a person who is Experiencing homelessness, or chronic homelessness, and a High-cost health user upon initial eligibility, is a Medi-Cal beneficiary, or is eligible for Medi-Cal, is eligible to receive services under a program providing services promoting housing stability, and is likely to improve their health conditions with Supportive housing.

HHC NOFA Funding and Timeline Overview

Allocation Funding Available Funding Source Article I $43.5 Million Federal HHC Milestones Critical Due dates NOFA Released February 28, 2020 Application Due Date June 25, 2020 Award Announcements October 2020

6 1:04 PM

Stacking Unit-Based Subsidies

• Stacking of multiple Department development

funding sources on an HHC assisted unit is not allowed.

• Refer to the HHC Guidelines, Section 102 (k) for

Department programs affected by the stacking restriction.

• Exception is a previously Department-assisted unit

eligible for funding assistance from other Department programs upon syndication, or 14 years from the Placed-in-Service date.

7 1:04 PM

HHC NOFA Resources and References

The Article I NOFA should be read in conjunction with the following regulations and statutes, which establish state and federal requirements:

• Assembly Bill 74, (Chapter 777, Statutes of 2017)
• Housing for a Healthy California Program

GuidelinesTitle 24 Code of Federal Regulations Part 93

• Title 2 Code of Federal Regulations, Part 200
• Title 25 California Code of Regulations, Section

8300

• 2019 HUD Annual Action Plan

8 1:04 PM

Program Requirements Eligible Uses

9

Eligible Uses as defined in HHC NOFA includes:

• Loans for acquisition and/or new

construction.

• Grants for project-based operating

assistance in the form of a Capitalized Operating Subsidy Reserve (COSR).

• Rehabilitation is not an eligible activity

under this NOFA.

1:04 PM

Program Requirements Income, Rent Limits and Occupancy

10 1:04 PM

• Household income is determined according to 24 CFR 93.151.
• At the time of move-in household income shall not exceed:

 Extremely Low Income (ELI) limits,

• r

 Limit at or below the poverty line (whichever is greater).

• Recipient is responsible to maintain documentation of tenant-

income eligibility.

• Link to Income, Rent and Per-Unit Subsidy Limits:

https://www.hcd.ca.gov/grants-funding/income-limits/state-and- federal-income-limits.shtml

Monitoring Fees

• The Department charges an annual monitoring fee, as follows:
• The fee shall increase by 3% per year to cover the cost of

inflation unless otherwise determined by the Department.

• Rate that will be effective based on the time of initial
• ccupancy.
• Lump sum payment made from development funds is not

allowed for projects.

• Reference 24 CFR section 93.204(b)(1), and section 104 of

the HHC Guidelines.

11

Number of Units 2020 12 or fewer $5,792 13 to 60 $11,584 More than 60 $17,372

1:04 PM

Reporting Requirements

• Recipient must collect and report data to the

Department at annual and midyear intervals.

• Other reporting requirements also include:

 Recipient(s) must file regular monthly project status reports and an annual performance report.  Recipients that are local government must comply with Single Audit Reporting requirements  Reference Health & Safety Code, Section 53593

12 1:04 PM

Federal Program Overlays

• Activities funded with HHC funds are required to comply with

24 CFR Part 93.350 & 93.301 Compliance with these requirements include, but are not limited to:  NHTF Environmental provisions,  Relocation,  Article XXXIV  Fair Housing Amendments Act,  Section 504 of the Rehabilitation Act, the Americans with Disabilities Act and, Section 3 (employment of low-income persons),  Violence Against Women Act  Single Audit report 2 CFR Part 200.512.

• Failure to comply with federal overlays could result in

significant project cost increases, and rejection of the HHC application.

13 1:04 PM

Federal Program Overlays Environmental Provisions

• HTF Environmental Provisions
• Property Standards at 24 CFR § 93.301(f)(1) and (2)
• No Choice Limiting Action
• HUD Notice, CPD-16-14

https://www.hudexchange.info/programs/environment al-review/htf/

14 1:04 PM

Federal Program Overlays Environmental Provisions

Determining the level of Environmental Review:

15

When a project is only using HTF funds.

• No Level of Review (CEST/EA)
• No Public Comment
• No Request for Release of Funds and

Certification

• No Authority to Use Grant Funds

When there is other HUD funding involved.

• When combining HTF with these funding

sources a Part 50 or Part 58 environmental review must be done.

• The review must meet the HTF

Environmental Provisions. When a project has acquisition only using HTF funds or combining HTF with other HUD funds.

• HTF environment provisions must be

documented.

• Combining HTF with other HUD funds, the

property cannot be acquired until after the environmental review is completed by HUD

• r the RE (Responsible Entity).

1:04 PM

HTF Environmental Provisions

Submit your HTF Environmental Provisions documentation in a separate three-ring binder with table of contents and tabs separating sections:

• HTF Environmental Provisions Checklist and

supporting documentation.

• Phase I and Phase II Environmental Site

Assessment (if required by Phase I).

• Authority to Use Grant Funds for other HUD

funding sources.

16 1:04 PM

Federal Program Overlays Relocation

• Relocation cost must be paid if individuals or

businesses will be temporarily or permanently displaced.

• This requirement applies to all rental projects

involving any relocation activities.

• Relocation plan conforming with the provisions of

24 CFR 93.352 & NHTF regulations 24 CFR 93.201(f).

17 1:04 PM

State Program Overlays Article XXXIV

• Applicants must submit documentation that shows

the project is in compliance with or exempt from Article XXXIV.

• If a project is subject to Article XXXIV, the application

must include an allocation letter from the locality.

• If a project is statutorily exempt from Article XXXIV,

the application must include an Article XXXIV

• pinion letter from the applicant’s counsel.

18 1:04 PM

State Program Overlays Prevailing Wage

• Program funds awarded may be subject to

state prevailing wage law as determined by the Department of Industrial Relations (DIR).

• Contact DIR or a prevailing wage consultant

if you need advice.

• The DIR website can be found at:

https://www.dir.ca.gov/oprl/DPreWageDetermination.htm

19 1:04 PM

Eligibility & Scoring

• Eligibility Threshold:

 Minimum Requirements found in HHC Guidelines, Section 102.  Application Process found in HHC Guidelines, Section 110.

• Application Scoring:

 Selection Criteria found in HHC Guidelines, Section 111.

• HHC guidelines specify:

 Documents required by application deadline for eligibility and scoring.  Conditions that must be met prior to Standard Agreement and Loan Closing.

20 1:04 PM

How Eligibility is Determined

• Applicant must be eligible at the time of

application:

 In good standing per the HHC Guidelines, Section 101 Definitions, 102 Minimum Requirements, and 24 CFR 93.2.  Must not be federally debarred or suspended.  In good standing with HCD and have no prior loan default.  Authorizing resolution from Applicant’s governing board.

21 1:04 PM

How Eligibility is Determined (SAM)

22 1:04 PM

How Eligibility Is Determined

Required by Application Deadline:  Site Control pursuant to 25 CCR, Section 8303 (Universal Multifamily Regulations).  Supportive Service Plan in accordance with HHC Guideline, Section 112.  Lead Service Provider or County memorandum of understanding or commitment letter in accordance HHC Guideline, Section 102(n)(2).

23 1:06 PM

How Eligibility is Determined

Required by Application Deadline:  Property Management Plan in accordance with HHC Guideline, Section 102(n)(5).  A complete HHC Universal Application and HHC Supplemental Application, including all required documentation and certifications.

24 1:08 PM

Scoring Categories

25

Scoring Category Maximum Applicable Points Development Team Experience 35 Supportive Housing 25 Supportive Services Plan 25 Utilization of Funds to Offset Requests 10 Leverage of Rent/Operating Subsidies 15 Readiness to Proceed 30 Confirmation of Local Need 5 Location Efficiency and Access to Destinations 5 TOTAL APPLICABLE POINTS 150

1:09 PM

Development Team Experience

Development Team Experience (35 points max): 1) Developer Experience (10 points max) 2) Applicant Ownership and Operations Experience (5 points max) 3) Property Manager Experience (5 points max) 4) Lead Service Provider Experience (15 points max) 5) Experience of a partner agency (2 points) 6) Documented success in meeting or exceeding specified outcome measures for housing stability (2 points)

26 1:15 PM

Development Team Experience

Developer Experience (10 points max): a. Points scored based on the number of affordable rental housing developments completed by the project developer over the past five years. b. Two points will be awarded for each rental housing project that was completed on time and within budget (up to a maximum 10 points).

27 1:17 PM

Development Team Experience

Applicant Ownership and Operations Experience (5 points max)

a. Points scored based on the experience of the Applicant in owning or operating supportive and/or affordable rental housing developments. b. Experience includes the experience of its affiliated entities or principals (including management-level staff), but not the experience of board members. c. One-half point will be awarded for each affordable housing project, and one point will be awarded for each Supportive housing project, up to a maximum of five points.

28 1:18 PM

Development Team Experience

Property Manager Experience (5 points max) a. Points based on the number of affordable and Supportive housing developments managed by the designated property management agent at the time of application. b. Points will be awarded for Supportive housing developments that have been in operation for at least two years with units restricted to people experiencing homelessness.

29 1:04 PM

Development Team Experience

Lead Service Provider Experience (15 points max)

a. Points will be awarded for experience in the last five years providing case management and tenancy support to people experiencing homelessness, and for demonstrated expertise working with the Target Population. b. Experience must be documented through contracts for services in housing projects with at least ten units subject to agreements with public agencies restricting rent.

• r

Occupancy to Homeless persons or households, or in publicly funded tenant-based housing assistance programs serving at least ten members of the Target Population.

30 1:04 PM

Development Team Experience

Lead Service Provider Experience (Continued) Points will be awarded for the following: 1. Years of experience in permanent Supportive housing (3 points max). 2. Number of projects or contracts in permanent Supportive housing (3 points max). 3. Years of experience serving the Target Population (3 points max).

31 1:04 PM

Development Team Experience

Lead Service Provider Experience (continued)

• 4. Experience providing case management,

where members of the Target Population were at least 20 percent of the Lead Service Provider’s clients.

• 5. Experience of a partner agency.

32 1:19 PM

Development Team Experience

33

Lead Service Provider Experience (continued)

• 6. Documented success in meeting or

exceeding outcome measures for housing stability under a government contract.

1:04 PM

Supportive Services Plan (25 points max)

Applicants must achieve a minimum of 10 points to receive an award. Applicants must submit a SSP with the application. Applications will be scored based on the following:  Quality and Quantity of Services (7 points). The accessibility of services (2 points).  Adherence to Section 113, Housing First principles (2 points).  The degree to which the physical building space supports social interaction (2 points).

34 1:23 PM

Supportive Services Plan (Continued)

 The levels of linkages with local systems for ending homelessness and community- based health care resources (5 points).  Resident Involvement (3 points).  The adequacy of the services budget and the reliability over time of services funding (5 points).

35 1:24 PM

Readiness to Proceed (30 points max)

 Applicants must achieve a minimum of 15 points to receive an award.  Supportive Services must be fully implemented and available for use by tenants at time of occupancy. To receive points, supporting documentation must be submitted at time of application.  Any application demonstrating that a particular category is not applicable to project readiness for the subject project shall be awarded points in that category.

36 1:04 PM

Readiness to Proceed (30 points max)

Applications will be scored based on the following:

• 1. Obtained enforceable commitments for all

construction financing (5 points).

• 2. HTF Environmental Provisions (5 points).
• 3. Obtained all necessary and discretionary

public land use approvals (5 points).

37 1:04 PM

Readiness to Proceed (Continued)

• 4. Applicant has fee title ownership or

Applicant has working drawings at least 50% complete (5 points).

• 5. Obtained local design review approval

(5 points).

• 6. Obtained commitments for all deferred-payment

financing, grants and subsidies, in accordance with TCAC requirements (5 points).

38 1:04 PM

Additional Selection Criteria

Supportive Housing based on the percentage of Total Projects Units that are Assisted Units (25 points max) Utilization of Funds to Offset Requests projects utilizing 9% competitive low-income housing tax credits, 0.375 points awarded for each full 5 percentage point increment above 50%. (10 points max) Leverage of Rental or Operating Subsidies based on percentage of assisted units a project has already committed to housing choice vouchers or already have assisted units restricted to rents not exceeding 30% of household income. (15 points max) Confirmation of Local Need demonstrated by having more than 400 individuals that are Homeless in the Applicants geographic jurisdiction using the latest Point-in-Time count. (5 points max) Location Efficiency and Access to Destinations applicants must provide a maps demonstrating proximity from transportation services and location of existing and operational services. (5 points max)

39 1:04 PM

Minimum Score Requirements and Tiebreaker

• The following application criteria must achieve the

following minimum scores:

Development Team Experience 18 points Supportive Services Plan 10 points Readiness to Proceed 15 points

• The following tiebreakers are used to determine

which project is selected for funding:

40

Readiness to Proceed Supportive Services Plan

1:04 PM

Program Requirements Bases of Appeals

• Applicants may appeal after receiving written

notification from the Department.

• Applicants may appeal if their Application has

been determined to be incomplete, ineligible, fail minimum requirements or have a reduction to the initial point score.

• Applicant cannot appeal a decision of the

Department related to another Applicant’s application.

41

Appeals Process and Deadlines

• Submit a detailed written appeal which states all relevant facts,

arguments, and evidence upon which the appeal is based.

• Once the written appeal is submitted to the Department, no further

information or materials will be accepted or considered.

• Appeals must be received by the Department no later than (5) five

business days from the date of the Department’s minimum requirements review or initial score letters representing the Department’s decision made in response to the application.

• Appeals are to be submitted in writing to the Department at

HHCNOFA@hcd.ca.gov or through a carrier service during the Departments normal business hours (9:00 am -5:00 pm). Time stamp verification is required.

42

Appeals Decision

• Department’s intent to render its decision

in writing within fifteen (15) business days

• f receipt of the Applicant’s written appeal.
• All decisions are final.

43

Steps to Standard Agreement

1. Rank all scored applications. 2. Project Feasibility and Project Report Development. 3. Project is presented to HCD Internal Loan Committee. 4. HCD ILC approves/denies projects. 5. Applicants receive award notification. 6. Applicant receive Standard Agreement.

44 1:04 PM

Standard Agreement

• The Department intends to send award letters to

successful applicants by October 2020. Standard agreements will be developed & mailed within approximately 90 days after award letter.

• Awardees will enter into a Standard Agreement

(SA) with the Department.

• Standard Agreement contains all the relevant state

and federal requirements, as well as specific information about the award and the work to be performed.

45 1:04 PM

Standard Agreement (continued)

• HHC projects must meet a February 1,

2021 project commitment deadline and a February 1, 2024 permanent loan closing.

• There will be no exceptions and failure to

meet these deadlines will be considered a material breach of the Standard Agreement.

46 1:04 PM

Submitting Your Application

47 1:04 PM

• Submit a complete original application, and

electronic copies on CD or flash drive with all applicable information.

• Electronic files must not be protected.
• Applications must be on the Department’s forms

and cannot be altered or modified by the Applicant.

• Excel forms must be in Excel format, not a PDF

document.

Application Deadline

48 1:04 PM

• Applications must be received by the

Department no later than 5:00 p.m. on June 25, 2020.

• Applications that do not meet the filing

deadline requirements will not be eligible for funding.

Submitting Your Application

• The Department will only accept applications

through a postal carrier service such as U.S. Postal Service, UPS, Fed Ex, or other carrier services that provide date stamp verification confirming delivery to the Department’s office. HOUSING FOR A HEALTHY CALIFORNIA PROGRAM Department of Housing and Community Development Division of Financial Assistance, NOFA Section 2020 West El Camino Avenue, Suite 100 Sacramento, CA 95833

49 1:04 PM

Application Forms

• Projects will be funded on a competitive basis.
• The following applications and supporting

documentation are required to be submitted for Article I projects:  Universal Rental Project Application Form  HHC Program Supplement Application Form  Application Checklist

• HHC program materials are available at

http://www.hcd.ca.gov/grants-funding/active- funding/hhc.shtml.

50 1:04 PM

The Universal and Supplement Application Overview

Binder Organization

51

• 1. Use a large 3-Ring Binder.
• 2. Tabs are needed to separate all sections and

attachments.

• 3. Look to the Applicant Checklist in each application
• n how to label tabs.

1:04 PM

Examples of Preferred Binder Tabs

52 1:04 PM

Article I Tab Checklist

53 1:04 PM

Example of Unacceptable Tabs

54

No Alpha or Numeric tab dividers

1:04 PM

Article I Universal Application Instructions

• HHC has a new streamlined application, Excel

based.

• Both a Universal and Supplemental application are

required for Article I.

• When open please Enable Content or Editing if this

yellow banner appears. This is needed to ensure the macros built into the application function properly.

• Start your review from Left to Right.
• Complete each tab in order.

55 1:04 PM

Article I Universal Application Instructions

56 1:04 PM

Must choose HHC

Article I Universal Application Instructions

57

• When the HHC funding source is selected the

below 18 tabs should appear.

1:04 PM

Article I Universal Application Instructions (Continued) Operating Tab

58 1:04 PM

Article I Universal Application Instructions (Continued) Dev Budget and Dev Sources Tabs

59 1:04 PM

Article I Supplemental Application Instructions

60

• Unique color-coded system.
• Each color denotes a different function.
• 1:04 PM

Article I Supplemental Application Instructions

61

• When the HHC supplemental application is
• pened these 11 tabs should appear.

1:04 PM

Article I Supplemental Application Checklist

62

Includes UA Turns Red when NO selected

1:04 PM

Supplemental Application Applicant Contact Tab

63 1:04 PM

Supplemental Application Minimum Requirements

64 1:04 PM

Supplemental Application Selection Criteria

65 1:04 PM

Supplemental Application

Local & Environmental Verification

66 1:04 PM

Supplemental Application

Loan Amount & Unit Mix

67 1:04 PM

Supplemental Application Supportive Services Plan

68 1:04 PM

Supplemental Application Supportive Services Plan (Continued)

69 1:04 PM

A Final Reminder

HHC Program Website http://www.hcd.ca.gov/grants- funding/active-funding E-mail address for technical assistance and FAQs HHCNOFA@hcd.ca.gov HHC Application Support AppSupport@hcd.ca.gov Sign-up for the HCD Mail List listserv

Application deadline is 5:00 p.m. on June 25, 2020

70 1:04 PM