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Title:
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2020-21 HOME Investment Partnerships Program Call for Interest
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Title
2020-21 HOME Investment Partnerships Program Call for Interest
Description
Request City Council approval of the Housing Department's 2020-21 HOME Investment Partnerships Program (HOME) Call for Interest (CFI), Community Priorities for the HOME CFI, and the associated revisions to the Affordable Housing Loan Program (AHLP) Underwriting Guidelines. The HOME Program is a federally funded program. There is no impact to the General Fund.
Report
Summary
The AHLP's Community Priorities (Priorities) and Underwriting Guidelines allow the City to be proactive in communicating housing needs to developers of affordable and/or special needs housing. On Nov. 16, 2019, City Council approved the Priorities as follows, and the Housing Department recommends continuing with these Priorities for the 2020-21 CFI:
Acquisition, rehabilitation, and/or new construction of properties that focus on homeless or special needs populations and that provide appropriate services to assist and sustain these populations.
Acquisition, rehabilitation, and/or new construction of properties where the developer qualifies as a Community Housing Development Organization (CHDO) as defined by the HOME Program.
The total allocation available for the 2020-21 CFI is approximately $6 million in HOME funding, of which an estimated $855,000 must be awarded to CHDO projects. The remaining funds will allow for an estimated five to six affordable housing project awards with a maximum award of $1 million.
Procurement Information
The CFI will be available through the City's website in November 2020. A selection committee will convene to evaluate proposed projects, based on the criteria listed below. The committee will be made up of representatives from City departments and community partners with housing development expertise who are not competing for the funding. Formal recommendation for the CFI award(s) will be presented to the Land Use and Livability Subcommittee and City Council for approval.
Applicants must meet the following threshold criteria prior to moving forward for evaluation and scoring by the selection committee.
Threshold Criteria:
Application submitted before deadline.
Development team is not on the U.S. Department of Housing and Urban Development Debarment List.
Compliance with existing city loans.
Proposed property management firms must have minimum three years of experience.
Complete application as specified in the CFI.
Those applications that do not meet the threshold criteria will be rejected and not move forward to evaluation.
Evaluation criteria for selection will include the following:
Developer Experience (260 points) - Capacity and prior experience of the organization; its staff member and consultant experience in planning and completing projects similar to the proposed project; property management experience of those who will manage the proposed property; including compliance with federally-subsidized units.
Project Merits (430 points) - Project need, proximity to services; sustainability as demonstrated in energy efficient design; location near transportation; amenities included in the project design; site plans and elevations; accessibility; experience of the General Contractor; project readiness and timeline.
Financial Feasibility (260 points) - Includes development financing plan; funding commitments; mitigation of identified risks; leverage of City funds.
Project Impact (50 points) - How likely the project is to succeed and accomplish its goals; serve the intended population; and demonstration of financial feasibility and project readiness.
Underwriting Guidelines Revisions
The City first adopted the Underwriting Guidelines (Guidelines) in October 2005. Since then the Guidelines have been periodically updated to reflect current City priorities, federal funding regulations and changes in lending practices. The Guidelines were last updated in November 2019. The goals of the Guidelines are to:
Provide long-term housing affordability.
Outline clear guidelines for quality, well-constructed or rehabilitated housing.
Create predictable, clear underwriting and approval process.
Manage risk and encourage high performing projects.
Proposed revisions to the Guidelines include the following:
The Housing Department will decline HOME Funding for projects where the Department’s long-term affordability restrictions must be subordinated to a senior mortgage lender.
A procedure will be added for sale and transfers of property.
Financial Impact
There is no impact to the General Fund. HOME is a federally funded program.
Department
Responsible Department
This item is submitted by Deputy City Manager Inger Erickson and the Housing Department.