Transcript 2012 Habitat Development Assistance Activity

2012 CHIP Application
Workshop
Habitat Development Activity
SFY 2012 DCA CHIP Application Workshop
Habitat Development
Purpose
• To expand the supply of and access to decent, safe,
sanitary and affordable housing for very low income
households through Affiliates undertaking program
eligible activities.
2012 /CHIP Application Workshop
Page 2
How to Apply for CHIP $$
Maximum Award Amounts
• Up to $300,000 for any application
2012 /CHIP Application Workshop
Page 3
Eligible Applicants
• Organizations meeting the definition as a
Habitat Affiliate.
• Meeting CHIP experience threshold on
application due date (i.e. proof of construction and
sale of at least two (2) units within the last two (2) years
prior to application due date).
• For the purpose of CHIP, Affiliates receiving
CHIP funds from DCA will act as a Subrecipient according to the HOME Final Rule at
Section 92.2.
2012 /CHIP Application Workshop
Page 4
How to Apply for CHIP $$
Eligible Activities
Home Buyer Subsidy
• A fixed amount of $20,000 per unit
• Zero percent deferred payment loan
• Loan must be repaid if the borrower refinances the
home, sells the unit or no longer occupies the unit
as principal residence.
2012 /CHIP Application Workshop
Page 5
How to Apply for CHIP $$
Eligible Activities
Home Buyer Subsidy (continued)
Habitat 580 First Mortgage Loan Option
• For borrowers working through Affiliates of Habitat
for Humanity with a credit score of 580-619, DCA
will finance the first mortgage using CHIP funds.
2012 /CHIP Application Workshop
Page 6
How to Apply for CHIP $$
Eligible Activities (continued)
• New Construction, reconstruction and
rehabilitation are eligible. Each site must meet
subdivision/infill design, services and facilities
threshold standards as defined within this program.
2012 /CHIP Application Workshop
Page 7
How to Apply for CHIP $$
Ineligible Activities
• Project Reserve Accounts
• Under Reconstruction and Rehabilitation Activities,
no pre-1978 units are allowed
• Match for other federal programs, except McKinney
Act funds
• Double-dipping of HOME funds
2012 /CHIP Application Workshop
Page 8
How to Apply for CHIP $$
Threshold Criteria
• Affirmative Marketing
• Certification of Habitat Affiliates’ Third Mortgage
Lien
• Experience
Two units constructed and sold within the past 2
years.
• Home Buyer Education/Counseling
• Income Determination (60% or less of Area Median Income)
• Project Implementation Schedule
2012 /CHIP Application Workshop
Page 9
How to Apply for CHIP $$
Threshold Criteria (continued)
•
•
•
•
•
Project Design
Site Control
Services and Facilities
Utilities
Visitability
2012 /CHIP Application Workshop
Page 10
How to Apply for CHIP $$
Policies
• Application Fee
May not be charged by any Affiliate to a prospective
participant associated with the CHIP-financed
Habitat Development Activity.
• Appraisals
Must comply with the requirements established in
the Habitat Development Manual. Must contain “as
is” and “after development” value.
• Commitment & Expenditure Deadline
All project funds must be committed and expended
within twenty-four (24) months
2012 /CHIP Application Workshop
Page 11
How to Apply for CHIP $$
Policies (continued)
• Credit Score
A home buyer must have a credit score of 620 or
greater unless the Habitat 580 First Mortgage Loan
Option is associated with the grant award.
• Eligible Sites
The property must be zoned for single family
residences. If the Sub-recipient is proposing to
rehabilitate an existing unit, the existing unit must
not have been constructed prior to January 1, 1978.
2012 /CHIP Application Workshop
Page 12
How to Apply for CHIP $$
Policies (continued)
• Energy Efficiency Design
Upon completion, new construction and
rehabilitated properties must meet, at minimum,
Georgia Energy Codes as outlined in Habitat
Development Manual. For newly constructed units,
a Certificate of Occupancy will demonstrate
satisfaction for this requirement and a Certificate of
Final Inspection for rehabilitated units. The Home
Buyer Subsidy will not be disbursed until all
required documentation is received.
2012 /CHIP Application Workshop
Page 13
How to Apply for CHIP $$
Policies (continued)
• Energy Star Program
Affiliates that receive points for proposing the
construction or rehabilitation of units that meet
Energy Star Program Standards must provide
certification from an Energy Star third party verifier
as defined by the ESP.
• Environmental Review – Tier I and II Review
(discussed in detail by Tarolyn Moore)
2012 /CHIP Application Workshop
Page 14
How to Apply for CHIP $$
Policies (continued)
• Existing Physical Conditions
Must document existing conditions of structures
within 1 mile radius of each proposed unit site and
include a written strategy for addressing levels of
deterioration, vacancy or blight within the area.
• Historic Preservation
Pre-1978 properties are not allowed; however, if
the proposed site is vacant land in an eligible
historic district, the construction of the unit must
meet all requirements of the State Historic
Preservation Office (SHPO).
2012 /CHIP Application Workshop
Page 15
How to Apply for CHIP $$
Policies (continued)
• Inspections
Required to be obtained during construction from
either the Local Government Building and
Inspection Department or DCA’s list of Approved
Building Inspectors as listed in the Manual. Subrecipients must incur this expense.
• Lead-Based Paint
Rehabilitation, including reconstruction, of pre1978 units is not allowed.
2012 /CHIP Application Workshop
Page 16
How to Apply for CHIP $$
Policies (continued)
• Mortgage Lien Position
The second mortgage loan shall not assume a lien
position lower than second place without prior
authorization.
• Participating Lenders
All home buyers’ first mortgage loan must be
obtained through one of DCA’s Approved
Participating Lenders.
2012 /CHIP Application Workshop
Page 17
How to Apply for CHIP $$
Period of Affordability
• Begins on the date that the project is marked as
completed in HUD’s Integrated Disbursement and
Information System (IDIS)
• Its length depends on the amount of CHIP
investment in the property
2012 /CHIP Application Workshop
Page 18
How to Apply for CHIP $$
Period of Affordability
CHIP Investment Per Unit
Length of Affordability Period
$15,000 –$40,000
11 Years
More than $40,000
16 Years
2012 /CHIP Application Workshop
Page 19
How to Apply for CHIP $$
Property Standards
• HOME regulations require all housing using HOME
funds to meet all applicable local codes (including
the applicable state codes), rehab standards,
ordinances and zoning ordinances at the time of
project/unit completion.
In the absence of a local code, CHIP requires that all
units meet the International Residential Code and
the International Property Maintenance Code.
2012 /CHIP Application Workshop
Page 20
How to Apply for CHIP $$
Property Standards (continued)
The HOME regulations also require that the Subrecipients have Written Rehabilitation Standards for
rehabilitation to cover all interior, exterior and
system repairs.
2012 /CHIP Application Workshop
Page 21
How to Apply for CHIP $$
Application Requirements
• Application Fee of $250
• Public Notification
▪ Affiliates Proposing Activities in a Single Jurisdiction:
• Must submit a copy of a letter sent to the chief elected
officer (and copied to the city/county administrator, if
applicable) of the jurisdiction in which the activity will be
implemented that details the proposed program activities
(i.e. number of households, targeted population groups to
be served, addresses of activities– if known– and amount of
funds requested). No formal public hearing is required.
▪ Affiliates Proposing Activities in Multiple Jurisdictions:
• Must submit a copy of a letter sent to the chief elected
officer (and copied to the city/county administrator if
applicable) of each city and county in which the activity is
proposed (i.e. number of households, targeted population
groups to be served, addresses of activities– if known– and
amount of funds requested). The letter must detail the
proposed program activities. No formal public hearing is
required.
2012 /CHIP Application Workshop
Page 22
How to Apply for CHIP $$
Funding Determination
• Total Points - 100
▪ Project Design – 50 points
▪ Program Need – 18 points
▪ Program Locational Characteristics – 15 points
▪ Match Committed within Application – 5 points
▪ Past Performance of Applicants – 12 points
2012 /CHIP Application Workshop
Page 23
How to Apply for CHIP $$
Funding Determination - Scoring
• Program Design
▪ Evidence of Readiness to Proceed
▪ Targets 100% of the assistance to an area within a
locally approved Urban Redevelopment Plan, a State
Enterprise Zone designated pursuant to O.C.G.A 3688, a local redevelopment area adopted pursuant to
O.C.G.A 36-61, a Tax Allocation District adopted
pursuant to O.C.G.A 36-44, or a DCA approved
Revitalization Area.
▪ Proposes 100% of the units constructed to meet
Energy Star Program Standards.
▪ Evidence of all units constructed to have at least
three (3) Universal Design Elements of Universal
Design which are not required under O.C.G.A 50-20.
2012 /CHIP Application Workshop
Page 24
How to Apply for CHIP $$
Funding Determination - Scoring
• Program Design
 Set aside assistance to at least one household which
includes a family member with a disability.
 Sets-aside funding for the purchase of at least one
foreclosed property.
 Incorporates a demonstrated partnership with a public
housing authority or a targeted special need
population to move individuals into homeownership.
 Proposed program is not located in a community which
receives HOME funds directly from HUD as a
Participating Jurisdiction.
2012 /CHIP Application Workshop
Page 25
How to Apply for CHIP $$
Funding Determination - Scoring
• Program Need
▪ Based on the percentage of all persons in all
census tracts to be served who are below
the poverty line
▪ DCA has provided data in your
Administrative Manual
2012 /CHIP Application Workshop
Page 26
How to Apply for CHIP $$
Funding Determination - Scoring
• Program Locational Characteristics:
▪ Community of Opportunity
▪ Georgia Initiative for Community Housing
▪ Federally Declared Disaster Area
2012 /CHIP Application Workshop
Page 27
How to Apply for CHIP $$
Funding Determination - Scoring
• Match Committed within Application
▪ The Applicant has secured a firm local
commitment of a permanent contribution of
match to be provided toward the costs proposed
▪ Match may take many forms; however, in no
case may match be provided from the household
assisted.
2012 /CHIP Application Workshop
Page 28
How to Apply for CHIP $$
Funding Determination - Scoring
• Past Performance of Applicants
▪ Applicant may receive points by meeting either one
of three criteria:
1.Applicant received at least one CHIP grant funded
in the 2007, 2008, or 2009 CHIP application
rounds and at least the following percentage of
eligible project funds for every award received
has been expended by the applicant for eligible
projects:
– 2007 – 100%
– 2008 – 70.0%
– 2009 – 40.0%
2012 /CHIP Application Workshop
Page 29
How to Apply for CHIP $$
Funding Determination – Scoring
(continued)
2.The Applicant has not received a CHIP grant in 2009 or
a prior year.
3.The Applicant received CHIP funds in 2006 or a prior
year and has closed out the CHIP grant and expended
at least 60% of all funds originally awarded.
2012 /CHIP Application Workshop
Page 30
How to Apply for CHIP $$
Funding Determination - General
• The points received by each Applicant on the
rating factors will be totaled and the total scores
will be ranked accordingly from highest to lowest.
CHIP awards will be based on this final ranking to
the extent funds are available. In case of ties, the
applications will be ranked based on the
differentiation of points received in the following
categories by order of priority:
▪ Total Program Need
▪ Program Design
▪ Match Committed within Application
2012 /CHIP Application Workshop
Page 31
How to Apply for CHIP $$
Application Submission
• Send original and 3 copies
• Photographs (Optional)
2012 /CHIP Application Workshop
Page 32
How to Apply for CHIP $$
Mailing Address
• Mail applications to:
CHIP Program Manager
Office of Special Housing Initiatives
Georgia Department of Community Affairs
60 Executive Park South, N.E.
Atlanta, Georgia 30329-2231
2012 /CHIP Application Workshop
Page 33
How to Apply for CHIP $$
Application Schedule
• Don’t forget your Application Fee Payable to
GHFA
• Application Due: December 15, 2012
• Funding Selections Announced by March 16, 2012
2012 /CHIP Application Workshop
Page 34
How to Apply for CHIP $$
Thank You!
• CHIP Contacts:
▪ Carmen Chubb, Assistant Commissioner for Housing,
[email protected], 404-679-0607
▪ Don Watt, Director, Office of Special Housing
Initiatives, [email protected], 404-679-0660
▪ Michelle Lewis, CHIP Program Manager,
[email protected], 404-679-0659
▪ Kay Garrison, Program Consultant,
[email protected], 404-679-0573
▪ Kawanna Greenleaf, Housing Development
Coordinator, [email protected], 404679-0680
2012 /CHIP Application Workshop
Page 35
How to Apply for CHIP $$
Questions?
2012 /CHIP Application Workshop
Page 36
How to Apply for CHIP $$