Transcript Reinventing the Housing Department

Los Angeles Housing Department
Affordable Housing Trust Fund
Notice of Funding Availability
2011
Douglas Guthrie
General Manager
Helmi Hisserich
Assistant General Manager
Tim Elliott
Major Projects Division
December 1, 2010
HOUSING SERVICES DIVISION
• The Housing Services Division includes the Occupancy
Monitoring and Land Use Covenant Units.
• The Occupancy Monitoring Unit will conduct a background check
on all AHTF applicants and awards may denied to applicants with
projects determined to be out of compliance with occupancy
monitoring requirements.
• Reminder: For the term of the Regulatory Agreement, “On an
annual basis, Owner shall provide the City with a copy of an
occupancy summary report showing present occupants, rent,
and size of the Assisted Units on the Property, and any other
information which the City requests and which related to the
eligibility of these households.”
Los Angeles Housing Department
HOUSING SERVICES DIVISION
• If Section 8 tenant-based vouchers are incorporated
into the project, consult with AHTF staff. It may affect
the allowable rents.
• If a density bonus or parking reduction is requested, you
must submit an application to the Land Use Unit four to
six months prior to closing the AHTF loan.
• For Occupancy Monitoring/Compliance or Land Use
covenant questions, call 213-808-8806
Los Angeles Housing Department
Affordable Housing Trust Fund
Overview 2003-2010
Los Angeles Housing Department
AHTF/PSHP Units by Year
Units
1,600
1,441
1,400
1,298
1,200
289
503
1,000
726
800
PSHP
500
1,339
600
110
1,149
1,009
999
933
938
155
400
616
200
345
0
2003
2004
2005
Los Angeles Housing Department
2006
2007
2008
2009
2010
AHTF
2010 AHTF ROUND 2 REDUX
• Only five out of 14 projects (consisting of 294 units)
received tax credit allocations
• The process for selecting projects to be converted to
bond financing was based on the amount of non-LAHD
public funding sources committed to the project.
• Projects were ranked in descending order on the basis
of subsidy per unit.
Los Angeles Housing Department
OTHER PUBLIC COMMITMENTS
CITY of LA
CRA
HACLA
2010 Round 2
Menlo Family
Operating
3,175,000
North
Hollywood Sr.
5555 Hollywood
Capital
Mental Health Services
Act (MHSA)
Operating
3,000,000
2,383,733
STATE
City of
Industry
2,050,000
2,620,750
4,680,000
0
7,855,000
Caroline
Severance
Manor
0
PWC Family
Housing
0
Broadway
Villas
1,800,000
Canby Woods
6,370,000
9,800,000
5,055,654
12,800,000
5,055,654
Los Angeles Housing Department
Prop 1C/64
TOTAL
Public $
Commit
ments
Public $
/ Unit
Capital
524,150
0
Del Rey
Seniors
Subtotal
L.A. County
2,383,733
3,144,900
4,000,000
5,031,840
2,050,000
1,732,815
689,208
9,438,358
157,306
2,698,290
7,702,773
157,199
14,000,000
18,680,000
155,667
14,855,654
119,804
17,387,498
50,676,785
9,031,840
106,257
2,403,828
4,136,643
94,015
1,894,280
3,694,280
76,964
6,370,000
65,000
FUNDS AVAILABLE – ROUND 1
Funding Source
CRA
DWP-AHTF
DWP – PSHP
HOME
HOPWA – HSNG Development
PSHP Bond
Trust Fund Matching Grant
TOTAL
Los Angeles Housing Department
Amount
$7,416,845
$1,085,000
$3,940,814
$9,195,218
$1,001,933
$ 219,165
$2,650,000
$25,508,975
CHANGES FOR 2011
Limits on Awards
• Two per developer (or any partners) per round.
• No more than two awards to senior projects per
round.
Los Angeles Housing Department
TERM OF COMMITMENT
• Limit to two TCAC rounds under NOFA I and
one TCAC round under NOFA II.
• Commitments for MHP projects will be valid
only for the HCD funding cycle.
• Unsuccessful projects may be considered for
bond conversion after the second round.
Los Angeles Housing Department
SUBSIDY BOOSTS
• LAHD has committed $10 million in AHTF general funds to the New
Generation Fund as a loan loss guarantee reserve.
• The NOFA currently provides a 5% subsidy boost to projects
proposing 9% tax credits that have an NGF or SHLF commitment.
• Adequate resources are needed in order for these projects to be
competitive in the funding rounds for their proposed leveraging
sources.
• An increase to 15% would facilitate the forward movement of these
projects and prevent defaults on the NGF/SHLF loans.
Los Angeles Housing Department
PERMANENT SUPPORTIVE HOUSING
How much should be allocated to supportive
housing projects?
Goal: Match 33% of Leveraging Sources
• TCAC Non-Profit Homeless & SRO Set Asides
• MHP Homeless Youth NOFA:
$30.0 million
• MHP Supportive Housing NOFA:
$80.0 million
Los Angeles Housing Department
SUSTAINABLE BUILDING INCENTIVE
• Changes to the California Energy Code and the
CalGreen Code may supersede sustainable
building incentive requirement.
• Currently, projects must exceed Title 24 Energy
Standards by a minimum of 10% for new
construction, or increase existing energy
efficiency by at least 25% for rehabilitation
projects.
Los Angeles Housing Department
SUSTAINABLE BUILDING INCENTIVE
For energy efficiency beyond Title 24 requirements,
the percentage must exceed:
• 25% - for Low-Rise Multifamily (3 or fewer
habitable stories)
• 20% - for High-Rise Multifamily (4 or more
habitable stories)
Los Angeles Housing Department
AT-RISK PROJECTS
• Funding for preservation projects was suspended for 2010
pending a study funded by a grant from the MacArthur
Foundation.
• LAHD entered into an agreement with The California
Housing Partnership Corporation (CHPC) to complete the
study and develop criteria for evaluating projects’ true risk of
conversion.
Los Angeles Housing Department
AT-RISK PROJECTS
• The At-Risk Criteria will award points in the following
categories:
•
•
•
•
•
•
•
•
•
Strength of the Rental Market
Number of Units Covered by Section 8 Contract
Remaining Term of the Existing Section 8 Contract
Status of Long Term Section 8 Contract Renewal
Status of HUD Commitment for Section 8 Mark up to Market (MU2M) Contract
Renewal
Section 8 Underwriting with 90% of Market Rents
Ratio of Committed Private Permanent Financing to Total Development Cost
Size of Project
Property Condition
Los Angeles Housing Department
AT-RISK PROJECTS
• The At-Risk Assessment Criteria would render an
“At-Risk Score” for a project’s true and immediate
risk of conversion to market rate rents.
• The At-Risk Score would provide a quantitative tool
to assist LAHD in deciding how best to award AHTF
dollars to these projects.
Los Angeles Housing Department
AT-RISK PROJECTS
• In addition to financing these projects through the NOFA,
the NGF’s revolving loan fund will be used to provide the
interim financing needed for the acquisition of
Preservation/At-Risk projects, while those projects are in the
process of renewing subsidy contracts through the MU2M
program.
• The NGF’s short-term acquisition/predevelopment loans
originated through nonprofit lenders would be repaid once
the Section 8 contract was renewed and the AHTF and
other loans are closed.
Los Angeles Housing Department
IMPORTANT DATES
12/3/10:
Publish Draft NOFA
1/5/11:
Mayor and City Council approval
1/10/11:
Bidders Conference
1/18/11:
Application Deadline
3/11/11:
Post Recommended Projects
Los Angeles Housing Department
FOR MORE INFORMATION
Los Angeles Housing Department: www.LACITY.ORG\LAHD
1200 West Seventh Street, 9th Floor, Los Angeles, CA 90017
Question and Answer: [email protected]
Douglas Guthrie, General Manager
Los Angeles Housing Department
(213) 808-8808
[email protected]
Tim Elliott, Acting Director
Major Projects
(213) 808-8901
[email protected]
Los Angeles Housing Department
Sergio Tejadilla, Acting Manager
Affordable Housing Trust Fund
(213) 808-8596
[email protected]