department of community and human development - City of El Paso

DEPARTMENT OF COMMUNITY AND HUMAN DEVELOPMENT

HOME INVESTMENT PARTNERSHIPS PROGRAM COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO) FUNDING PROPOSAL (RFP FY 2016) – APPLICATION PACKET

IMPORTANT DATES MAY 16, 2016

CHDO APPLICATION & GUIDELINE RFP

MAY 23, 2016 9:00 AM

INVESTOR RENTAL & CHDO WORKSHOP MANDATORY

JUNE 13, 2016 6:00 PM

CHDO CERTIFICATION & APPLICATION DUE BY: ARTURO RUBIO, HOUSING PROGRAMS MANAGER COMMUNITY AND HUMAN DEVELOPMENT DEPT. HOUSING PROGRAMS DIVISION – CITY 3 801 TEXAS AVENUE – 3rd FL. – (915) 212-0139

TABLE OF CONTENTS I.

APPLICATION FOR CHDO CERTIFICATION

II.

HOME PROGRAM GUIDELINES FOR COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO)

III.

HOME PROGRAM CHDO PROPOSAL CHECKLIST

IV.

RATING CRITERIA

V.

CHDO SET-ASIDE FUNDS APPLICATION FORM

VI.

ATTACHMENTS: ATTACHMENT A

HOME PROGRAM RENTS AND INCOME

ATTACHMENT B - UTILITY ALLOWANCES FOR RESIDENT FURNISHED UTILITIES AND OTHER SERVICES ATTACHMENT C - PROJECT DEVELOPMENT COSTS ATTACHMENT D - DEVELOPMENT TIMELINE ATTACHMENT E - RENT WORKSHEET – LOW HOME RENTS/HIGH HOME RENTS ATTACHMENT F - UNIT CONFIGURATION WORKSHEET ATTACHMENT G - 10 YEAR OPERATING PRO FORMA ATTACHMENT H - FLOOD ZONE MITIGATION & E1527-13 ATTACHMENT I - MARKET ANALYSIS ATTACHMENT J - MAPS OF DISTRICT 6 & 7 ATTACHMENT K - RELOCATION INFORMATION & TENANT DEMOGRAPHICS (FOR OCCUPIED BUILDINGS ONLY)

FY 2016 APPLICATION FOR COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO) CERTIFICATION

CD/HR PROPOSALS/CHDO Proposal/CHDO Proposal 2016Cover Pages Application & Attachments2016

CITY

OF

EL

PASO

DEPARTMENT OF COMMUNITY AND HUMAN DEVELOPMENT 801 TEXAS AVE., 3RD FLOOR, EL PASO, TEXAS 79901, (915) 212-0139

Application for Community Housing Development Organization (CHDO) Certification FY2016: Property Address ___________________ Organization Name: Address: City:

State:

Zip:

Email:

Phone: (

)

Fax: (

Internet address:

Executive Director:

Contact Person (If different from above):

Address:

City:

State:

Zip:

Phone: (

)

Date of Incorporation: Tax ID Number: IRS Tax Status: (Please check appropriate box) 501(c)(3) 501(c)(4) HR/HR Proposals/HR HOME Entitlement/CHDO Checklist

 Submitted  Submitted

Fax: (

)

)

The information contained in the following checklist refers to the definition of a Community Housing Development Organization (CHDO) as stated in Title 24 CFR Subpart A Section 92.2 of the HOME Final Rule. Please attach the following documentation with your request for certification: CHDO CHECKLIST I.

LEGAL STATUS

A. The nonprofit organization is organized under State or local laws, as evidenced by: ________ ________

Charter, OR Articles of Incorporation (Articles of Incorporation must be filed with Secretary of State of Texas).

B. No part of its net earnings inuring to the benefit of any member, founder, contributor,

or individual, as evidenced by: ________ ________

Charter, OR Articles of Incorporation.

C. Has a tax exemption ruling from the Internal Revenue Service (IRS) under Section

501 (c) (3) or (4) of the Internal Revenue Code of 1986 (26 CFR 1.501(c)(3)-1), as evidenced by: ________ 501(c) (3) or (4) Certificate from the IRS. OR Is classified as a subordinate of a central organization nonprofit (that has a group 501 (c) tax exemption) under Internal Revenue Code (IRC) 905 and is defined by IRS as a public charity as evidenced by: ________

a group exemption letter from the IRS that includes the CHDO. OR is a wholly-owned entity regarded as an entity separate from its owner for tax purposes, when owner organization has IRS tax exemption under 501 (c) (3) or (4) of IRC.

________

D. Has among its purposes the provision of decent housing that is affordable to lowincome and moderate-income persons, as evidenced by a statement in the organization’s: ________ ________ ________ ________

Charter, OR Articles of Incorporation, OR Resolutions, OR By-laws.

II. CAPACITY A. Conforms to the financial accountability standards of 24 CFR 84.21, “Standards of Financial Management Systems”, as evidenced by: ________

A certification from a Certified Public Accountant. Must be updated annually

B. Has a demonstrated capacity for carrying out activities assisted with HOME funds, as evidenced by: ________

resumes and/or statements that describe the (housing) experience of its key staff members (must be paid employees, not volunteers or staff donated by another organization) who have successfully completed projects similar to those to be assisted with HOME funds, OR

________

contract(s) with consultant firms or individuals who have housing experience similar to projects to be assisted with HOME funds, to train appropriate key staff of the organization - contract(s) must include a plan describing how the appropriate key staff members of the organization will be trained. This is allowable only during first year of operation as a CHDO.

C. Has a history of serving the community (geographical area to be served by the CHDO) within which housing to be assisted with HOME funds is to be located, as evidenced by: ________

a statement that documents at least one year of experience in serving the community (statement must include a geographical area to be served by the CHDO), OR

________

for newly created organization formed by local churches, service or community organizations, a statement that documents that its parent organization has at least one year of experience in serving the community (statement must include a geographical area to be served by the CHDO).

NOTE: The CHDO or its parent organization must be able to show one year of serving the community prior to the date the participating jurisdiction provides HOME funds to the organization. In the statement, the organization must describe its history (or its parent organization’s

history) of serving the community by describing activities which it provided (or its parent organization provided), such as, developing new housing, rehabilitating existing stock and managing housing stock, or delivering non-housing services that have had lasting benefits for the community, such as counseling, food relief, or child care facilities. The statement must be signed by the president or other official of the organization. DEFINITION: Under the HOME program, for urban areas, the term “community” is defined as one or several neighborhoods, a city, county, or metropolitan area. For rural areas, “community” is defined as one or several neighborhoods, a town, village, county, or multi-county area (but not the entire State).

III. ORGANIZATIONAL STRUCTURE A. Maintains accountability to low-income community (geographical area to be served by the CHDO) residents by maintaining at least one-third of its governing board’s membership for low-income community residents, residents of low-income neighborhoods, or elected representatives of low-income neighborhood organizations (these organizations must be identified in the Bylaws, Charter or Articles of Incorporation), as evidenced by the organization’s: ________ By-laws, OR ________ Charter, OR ________ Articles of Incorporation. AND ________ Current roster of all Board of Directors. Required one-third low-income residents or elected representative must be identified on the roster as such. Roster and supporting documentation must include: • Names and mailing addresses of all members; • For those members identified on the roster as lowincome community residents, the CHDO must include the member’s annual household income and supporting documentation; and also provide information about the method used to calculate the annual household income; • For those members identified on the roster as residents of low-income neighborhoods, the CHDO must include the member’s home address; • For those members identified on the roster as elected representatives of low-income neighborhood organizations, the CHDO must include the name and mailing address of the neighborhood organization and provide information as to how the representative was selected by the neighborhood organization.

DEFINITION: “Low income” is defined by the U.S. Department of Housing and Urban Development (HUD) as a family annual income that does not exceed eighty percent (80%) of the median income for the area, with adjustments for family size. The HUD Section 8 Income Guidelines Attachment A).

B. Provides a formal process for low-income, program beneficiaries to advise the organization in its decisions regarding the design, siting, development, and management of affordable housing projects, as evidenced by: ________ Organization’s by-laws, OR ________ Resolutions, (must be approved annually) OR ________ Written statement of operating procedures approved by the governing body. Statement must be on original letterhead, signed by the Executive Director and evidence date of board approval (must be approved annually).

C. A CHDO may be chartered by a State or local government, but the following restrictions apply: (1) the State or local government may not appoint more than onethird of the membership of the organization’s governing body and no more than onethird of the board members may be public officials or employees of the participating jurisdiction or State recipient; and (2) the board members appointed by the State or local government may not appoint the remaining two-thirds of the board members; and (3) public officials or employees of the local government or state recipient cannot serve as officers or employees of the CHDO, as evidenced by the organization’s: ________ ________ ________

By-laws, OR Charter, OR Articles of Incorporation.

D. If the CHDO is sponsored or created by a for-profit entity, the for-profit entity may not appoint more than one-third of the membership of the CHDO’s governing body, and the board members appointed by the for-profit entity may not, in turn, appoint the remaining two-thirds of the board members, and while the officers and employees of the for-profit entity can serve as board members of a CHDO, they cannot serve as officers or employees of the CHDO, as evidenced by the CHDO’s: ________ ________ ________

By-laws, OR Charter, OR Articles of Incorporation.

E. If sponsored by a religious organization, the CHDO is a separate secular entity from the religious organization, with membership available to all persons, regardless of religion or Membership criteria, as evidenced by: _____ By Laws, _____ Charter, OR _____ Articles of Incorporation

IV. RELATIONSHIP WITH FOR-PROFIT ENTITIES AND OTHER REQUIREMENTS

A. The CHDO is not controlled, nor receives directions from individuals, or entities seeking to derive profit or gain from the organization, as evidenced by: ________ ________

The organization’s By-laws, OR A Memorandum of Understanding (MOU).

B. A Community Housing Development Organization may be sponsored or created by

a for-profit entity provided that the for-profit entity’s primary purpose does not include the development or management of housing (such as a builder, developer or real estate management firm), as evidenced by: ________

For-profit organization’s By-laws.

C. The CHDO is free to contract for goods and services from vendor(s) of its own choosing, as evidenced by the CHDO's: _____ By-Laws, _____ Charter, OR _____ Articles of Incorporation.

D. The CHDO has a conflict of interest policy governing employees and development activities, particularly in procurement of contract services and the award of housing units for occupancy. ATTENTION: Kevin Pitts, Grants Planner ARTURO RUBIO, HOUSING PROGRAMS MANAGER DEPARTMENT OF COMMUNITY AND HUMAN DEVELOPMENT 801 TEXAS AVE., 3RD FLOOR EL PASO, TEXAS 79901 (915) 212-1656

HOME PROGRAM GUIDELINES FOR CHDO SET ASIDE FUNDS

HOME PROGRAM GUIDELINES FOR COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO) SET-ASIDE FUNDS – 2016

Section 1 - Eligible Activities/Applicants Funding Availability: In accordance with the requirements of the HOME Investment Partnership Program, the City of El Paso will reserve HOME Entitlement Grant funds for use by non-profit Community Housing Development Organizations (CHDOs) to create affordable rental housing for low and very low income persons through acquisition, development, or project sponsorship located within the City of El Paso. Eligible Applicants: These funds are available only to applicants that have been certified by the City of El Paso as Community Housing Development Organizations (CHDOs) as defined under the HOME Investment Partnerships Program in 24 CFR Part 92.2. In order to ensure that the applicant continues to meet the CHDO requirements – and for agencies applying for new CHDO status, the completed Application for CHDO certification (Part I), must be submitted no later than Monday, June 13, 2016 by 6:00 PM. Eligible Activity: Eligible CHDO set-aside funding activities will be limited to acquisition, new construction, or rehabilitation/conversion that will create new rental housing to be carried out by a CHDO acting as an owner or developer. Reconstruction as defined by 24 CFR Part 92.2, is also eligible under the Request for Proposals. Additional scoring points will be awarded to projects that are developed within Districts 6 and 7 in compliance with City Council’s directive for concentrated development per District each year (see questions #11 and #15 on the CHDO Application). Ineligible Activities: The following activities are ineligible CHDO set-aside activities: 1. acquisition and/or rehabilitation of homebuyer property; 2. new construction of homebuyer property; 3. direct financial assistance to purchasers of HOME-assisted housing sponsored or developed by a CHDO; 4. tenant-based rental assistance, 5. homeowner-occupied housing rehabilitation, and 6. brokering or other real estate transactions Page 1

Section 2 - Funding Considerations Training Workshop: There will be a “mandatory” Training Workshop for this Request For Proposals. However, applicants are encouraged to contact the staff noted on the attached listing for questions, clarifications and one-on-one technical assistance related to preparation of the Proposal.

Deadline for Applications: All applications must be received no later than 6:00 PM, Monday, June 13, 2016. Submit one original and two copies to: Arturo Rubio, Department of Community and Human Development, 801 Texas Avenue, 3rd Floor, El Paso, Texas 79901. Any application received after this date and time will not be considered.

Program Guidelines: The Program Guidelines and Application are included in this packet. This information, together with the Federal Statutes and regulations for the HOME program (42 U.S.C. Sec 12701, et. seq. and 24 CRF Part 92) constitute the guidelines for the City of El Paso HOME Program.

Awarding of Funding: The City of El Paso will award CHDO Set-Aside funds through a competitive process which takes into consideration the need for affordable housing as outlined in the City’s Consolidated Plan, and the quality and feasibility of the proposed project. Applications will be reviewed and rated based on the criteria explained in these guidelines. Only the proposal(s) that receive the highest rating(s), will receive a favorable recommendation for funding approval.

Section 3 - Amount of HOME Assistance Minimum HOME Assistance Per Unit: The minimum level of HOME dollars invested per project is $1,000 per HOME assisted unit. For example, for a 20-unit project in which all 20 units are assisted with HOME funds, the minimum amount of HOME dollars is $20,000. This is a per unit average for all HOME assisted units.

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Maximum per Unit HOME Subsidy: The maximum per unit HOME subsidy is based on a per unit average by bedroom size, in compliance with section 221(d)(3)(ii) of the National Housing Act, effective March 18, 2013, as displayed below: Efficiency 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom +

$ $ $ $ $

112,338 128,779 156,594 202,582 222,372

Please note that should the above subsidy amounts change, the applicant will be notified. The maximum per project assistance amount for rehabilitation, reconstruction, new construction, acquisition of land and site improvement is $1,000,000.

Section 4 - Eligible Properties Properties may be either a single building, or scattered sites. To qualify as a project, these properties must be one or more buildings on a single site or scattered sites under common ownership, management and financing. There are no limits on the number of units per project.

Section 5 - Property Standards Minimum Property Standards: 1.

2.

New Construction minimum property standards must comply with: a)

Local Code

b)

Zoning Ordinances

c)

Model Energy Code or equivalent

d)

The site must meet the requirements of 24 CFR 983.57(e)(2 & 3) (Site and neighborhood standards)

e)

Accessibility requirements, where applicable.

Rehabilitation minimum property standards must comply with the International Codes as adopted by the City of El Paso, the requirements of the State of Texas Historical Commission, the Historic Landmark Commission, and accessibility requirements established by local, state and federal laws and regulations. Page 3

3.

Minimum Unit Size – For the purposes of this program, the following chart sets the minimum acceptable floor area per unit for the development of housing; as noted in Attachment A: Single Room Occupancy Efficiency One Bedroom Two Bedrooms Three Bedrooms Four Bedrooms

125sf (R)/150sf (N) 300 square feet 450 square feet 750 square feet 900 square feet 1,000 square feet

Section 6 - Income Requirements for HOME Tenants HOME program requirements with respect to the occupancy and affordability of the rental units apply as shown on Attachment A: A.

At the time HOME assistance is INITIALLY provided, and

B.

Over a twenty (20) year affordability period for new construction and fifteen (15) years for rehabilitation (as explained further herein).

Initial Occupancy: Rental housing in a project with four or less units will qualify as affordable only if all of the HOME assisted units are occupied by families with annual income that are 60% or less of median income, adjusted for family size. Rental housing in a project with five or more units will qualify as affordable only if: A. All of the HOME assisted rental units are occupied by families who have annual incomes that are 60% or less of median income, adjusted for family size; and B. At least 20% of the HOME assisted rental units are occupied by families who have incomes that are 50% or less of median income, adjusted for family size.

Section 7 - Rent Levels Rents are controlled for the length of the twenty (20) year affordability period for new construction and fifteen (15) years for rehabilitation. These rents are determined on an annual basis by the U. S. Department of Housing and Urban Development (HUD) and may increase or decrease from year to year. Annually, the CHDO will be provided with a list of these rents, which include all utilities. The utilities paid by tenants must be subtracted from the rents provided to determine the maximum allowable rents. A schedule of the utilities allowance that must be deducted from the rent if paid by the tenant is also included as Attachment B. A schedule of maximum allowable rents and income adjusted for family size is included as Attachment A. Page 4

HOME rents are not necessarily representative of market conditions. Rather, these rents represent the following: High HOME Rents: The lesser of the Fair Market Rents for comparable units in the area as determined by HUD or 30% of 65% of median income for the area, adjusted for family size, as per 24 CFR 92.252 (a). Low HOME Rents: This rent is equal to 30% of 50% of median income for the area, adjusted for family size. The CHDO applicant should be aware of the market conditions of the area in which the project is located. The High HOME rents and Low HOME rents are maximum rents, which can be charged. Each project should consider feasibility not based upon the High and Low HOME rent, but rather upon area housing markets and HOME occupancy requirements, which demand occupancy by low and very low-income persons. Rents shall not exceed the published High and Low HOME rents, adjusted for utility allowances and bedroom size. However, because these rents must also be attractive to lower income tenants, actual rents may be lower than the High and Low HOME rents.

Section 8 - Affordability Terms For HOME assisted new construction rental housing, the affordability term is twenty (20) years except when FHA mortgage insurance is provided to a HOME project, the term of affordability must equal the length of the FHA insured mortgage. The affordability period for rehabilitation is fifteen (15) years. The affordability requirements apply without regard to the term of any loan or mortgage or the transfer of ownership because these requirements are imposed by a Property Agreement Concerning Covenants and Restrictions Running with the Land. During the affordability period, 100% of the HOME assisted units must be initially occupied by households with incomes at or below 60% of area median income (AMI), adjusted for family size and 20% of the HOME assisted units, in projects with five or more units must be occupied by households with incomes at or below 50% of area median income (AMI), adjusted for family size. If the income of a household residing in a HOMEassisted unit rises above 50 percent of area median income (AMI) but is still below 80 percent at recertification, High and Low HOME Rent units may “float” in fixed projects. The unit would become a High HOME Rent unit. The next available HOME unit would be designated a Low HOME Rent unit.

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If the income of a household in a HOME-assisted unit rises above 80 percent of AMI at recertification, the household may continue to rent the unit and, in accordance with HUD 24 CFR 92.252 (i), the household must pay monthly rent equal to the lesser of:  

the rent permitted by state law; or 30 percent of the family’s adjusted monthly income at annual recertification.

The CHDO must keep the project in compliance during the affordability period by leasing the next available unit to a household at the income level needed for compliance. Floating units according to HUD 24 CFR 92.252(j) can only occur in projects where there are HOME assisted units and units that are not HOME assisted.

Section 9 - Ongoing Responsibilities and Monitoring Maximum monthly rents and utility allowances must be recalculated annually by the CHDO. The City of El Paso will conduct an annual review of rent and utility allowances. CHDOs must collect and review tenant income information in HOME Projects on an annual basis during the affordability term and make this data available to the City of El Paso. The City will provide technical assistance with regards to procedures to determine tenant income (Part 5 of the HUD HOME Program Income definition will apply). CHDOs must conduct on-site inspections for compliance with Minimum Acceptable Standards (MAS). Inspections will be conducted annually for all HOME projects based on the number of units in the development. The City will also conduct an annual review of owner compliance with all HOME program requirements including, but not limited to affordability requirements, and the CHDO Agreement executed with the City.

Section 10 - Financial Assistance Available The City will make available HOME funds as an amortizing loan, and/or a forgivable loan. At a minimum, the amortizing loan must constitute at least 20% of the HOME assistance provided by the City. Under an amortizing loan, repayment shall be due monthly with the first payment due within ninety (90) days after the first day of the month following the completion date as calculated in the Construction Contract. Interest on the loan shall not accrue during construction. The interest rate may vary from 0% to market rate and the term may vary from 15 to 30 years. Under the terms of a forgivable loan, repayments are not made as long as the loan recipient adheres to HOME Program requirements, the CHDO Agreement and the amortizing loan note. In this situation, the term of the forgivable loan will be the term of the amortizing loan and will be forgiven in direct proportion to the loan payments.

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Applicants should describe the type and amount of HOME financial assistance requested from the City and the proposed rate and term. Applicants may request funds according to a term and rate that allows them to achieve financial feasibility within HOME rental occupancy requirements. The City reserves the right to make changes as required to loan terms requested. Additional points will be given to proposals that have repayments in excess of the minimum 20% required. In all cases where HOME assistance is provided, a Loan Note and Deed of Trust with the City must be signed and recorded by the applicant. The City may be in a subordinate position to private lender financing provided that: (1) all outstanding indebtedness on the property does not exceed 100% of the after construction/rehabilitation value of the property; (2) If the City has less than 50% of funds supporting the project; and (3) If given a sixty (60) day Notice of Default and the opportunity to cure a default or the entire debt. All rental property will be deed restricted for the entire affordability time period. The failure to maintain the property to Minimum Acceptable Standards (MAS) during the applicable affordability period may result in the City declaring the owner in default and calling the loan for the HOME funds. The failure to follow affirmative marketing requirements, annual re-certifications of tenant incomes, keep required records and adhere to all requirements agreed to in the written agreements between the property owner and the City may result in the City declaring the owner in default and exercising its right to foreclose on the HOME loan advanced. All applicants must submit a detailed Market Analysis in accordance with the minimum requirements noted in Attachment I. All applications will be examined to determine that excessive HOME subsidies are not being provided. Evidence of firm commitments of other sources of financing must also be provided. Projects, which leverage other funds, will be given more favorable consideration than those that do not. HOME funds may be the only source of financing if sufficient justification is provided as to why no other financing is available and the total amount requested does not exceed the maximum HOME subsidy available for the applicable unit’s number of bedrooms, as established by HUD under 24 CFR 92.250.

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Section 11 - Eligible Costs Project Soft Costs: Soft Costs that are reasonable and necessary to the project will be eligible costs. Predevelopment soft costs must be paid by the CHDO as part of the project costs and services rendered by third parties. These costs, if eligible, are reimbursable at the CHDO loan closing, if the application for funding includes an agreement for Architectural, Engineering and other professional services. No eligible expenses may be incurred before HUD approves a Request for Release of Funds (RROF) which is issued once HUD reviews and approves the environmental clearance for project. Eligible soft costs include: A.

Finance related costs 1. Origination fees 2. Credit reports 3. Title reports and updates 4. Recordation fees 5. Preparation and filing legal documents 6. Appraisal 7. Attorney’s fees 8. Loan Processing fees 9. Other customary fees (i.e. Park Fees) 10. Market Analysis

B.

Construction related costs: 1. Architectural / Project Manager fees 2. Engineering fees 3. Preparation of work write-ups/cost estimates 4. Builders or developers fees 5. Phase I ESA / ASTM E1527-13 (non-reimbursable)

C.

Project audit costs

D.

Costs associated with Affirmative Marketing and Fair Housing Information

Acquisition Costs Reasonable costs, as determined by an appraisal, if acquiring unimproved property for new construction or substandard/vacant property proposed for rehabilitation/conversion, will be considered eligible. Acquisition costs of vacant land using HOME funds may only be considered if HOME funds will be committed to construction on the site or the proposal includes a firm commitment from other sources, to finance the cost of construction. Eligible Hard Costs: Development hard costs - the actual costs of constructing the development or rehabilitating substandard rental property, including the following:

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Costs to meet the new construction/rehabilitation standards applicable at the time a building permit is obtained from the City. This includes compliance with the International Energy Conservation Code, published by the Council of American Building Officials, the Universal Accessibility under Chapter 11 of the City of El Paso Building Code, the Texas Accessibility Standards (TAS), the Fair Housing Act and Section 504 of the Rehabilitation Act of 1973. Costs to demolish existing structures for site preparation, or reconstruction, costs for improvements to a project site that are comparable with the surrounding standard developments and costs to make utility connections. These costs are eligible for reimbursement ONLY if performed after receipt of HUD Environmental approval. Mixed Income Developments: All HOME funds used in conjunction with a mixed income development must be used solely for the benefit of the affordable units in the development. Housing that accounts for less than 100 percent of the dwelling units in a development qualifies as affordable housing if the HOME assisted units meet the rent and occupancy requirements as stated in the Income Requirements for HOME Tenants and Rent Levels section above. Each building in a development must contain housing that meets these requirements. Common area costs will be prorated based upon the number of HOME assisted units and other non-assisted units.

Section 12 - Prohibited Costs Administrative Costs: Administrative costs of a CHDO cannot be reimbursed from project soft costs or from any other budget line item.

Tenant Based Rental Assistance: Tenant Based Rental Assistance is not an eligible expense. Project Termination Before Completion: If HOME funds are expended on a project that is terminated prior to completion, the funds must be repaid to the City by the CHDO. The City in turn must reimburse HUD for these expenditures. No Double Dipping on HOME Projects: Additional HOME funds may not be used to benefit a HOME assisted project/household during the required period of affordability.

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Section 13 - Tenant Protections Tenant Lease Protections: The lease between a tenant and the CHDO/owner of rental housing assisted with HOME funds must be for a period of at least ONE YEAR, unless by mutual written consent, the tenant and the owner can agree to a lesser term. The CHDO may not terminate the tenancy or refuse to renew the lease of a tenant of rental housing assisted with HOME funds except for serious or repeated violation of the terms of the lease; for violation of applicable federal, state or local law; or for other good cause. Any termination or refusal to renew must be preceded by the CHDO giving not less than 30 days written notice to the tenant specifying the grounds for termination or refusal to renew. The CHDO must maintain the total development in compliance with local building code requirements. A CHDO may not refuse to lease a HOME assisted unit to a family, which holds a rental certificate or a rental voucher or a comparable document under the HOME Program. Certain lease terms are prohibited. These include: A. Agreement to be sued: Agreement by the tenant to be sued, admit guilt, or to a judgment in favor of the CHDO in a lawsuit brought in connection with the lease. B. Treatment of Property: Agreement by the tenant that the CHDO may take, hold, or sell personal property of household members without notice to the tenant and a court decision on the rights of the parties. This prohibition, however, does not apply to an agreement by the tenant concerning disposition of personal property remaining in the housing unit after the tenant has moved out of the unit. The CHDO may dispose of this personal property in accordance with State law. C. Excusing the owner from responsibility: Agreement by the tenant not to hold the CHDO or it’s agents legally responsible for actions or failure to act, whether intentional or negligent. D. Waiver of notice: Agreement by the tenant that the CHDO may institute a lawsuit without notice to the tenant. E. Waiver of legal proceedings: Agreement by the tenant that the CHDO may evict the tenant or household members without instituting a civil court proceeding in which the tenant has the opportunity to present a defense or before a court decision on the rights of the parties. F. Waiver of a jury trial: Agreement by the tenant to waive any right to a jury trial.

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G. Waiver of right to appeal court decision: Agreement by the tenant to waive the tenant’s right to appeal or to otherwise challenge in court a decision in connection with the lease. H. Tenant chargeable with cost of legal actions regardless of outcome: Agreement by the tenant to pay attorney’s fees or other legal costs even if the tenant wins the court proceeding by the CHDO against the tenant. The tenant, however, may be obligated to pay costs if the tenant loses. Tenant Selection Procedures: The CHDO must have written tenant selection policies and criteria that: A. Are consistent with the purpose of providing housing for very low and low income families; B. Are reasonably related to HOME program eligibility and acceptance requirements and the applicant’s ability to perform the obligations of the lease; C. Give reasonable consideration to housing needs of families with Federal preferences for admission to Section 8 and public housing; D. Provide for the selection of tenants from a written waiting list in chronological order insofar as is practicable; and E. Give prompt written notification of rejection and the grounds for such to the rejected applicant. Tenant Participation Plan: A CHDO that receives HOME funds must adhere to a fair lease and grievance procedure approved by the City and provide a plan for and follow a program of tenant participation in management decisions.

Section 14 - Bid Requirements Before funds are committed to an eligible application, detailed cost breakdowns will be required to be provided to the City. Additionally, selected CHDOs will be required to complete a formal publicly advertised, sealed bid process to ensure that competitive prices are secured for the project. To maintain consistency in bidding, a description or Scope of Work should be prepared which describes the activities involved and who is responsible for the administration of each task. The Scope of Work will be prepared after the initial inspection of the property is completed by a licensed architect and/or engineer. At a later date, any alterations or adjustments to the Scope of Work must be approved by the Department of Community and Human Development. Each bidder must be required to state that the bid prices will be valid for at least 90 days from the Bid Opening Date. Bidders must provide detailed cost breakdown. No Lump Sum bids will be accepted. Page 11

Section 15 - Disbursement of Funds Upon receipt of all required documentation for the HOME Program, the City of El Paso may enter into a commitment of funds (i.e., Written Agreement, Loan Documents, Deed of Trust, etc.) with the CHDO. The acquisition or new construction must begin immediately upon the City receiving the signed Loan Documents. The project must be under construction within twelve (12) months of execution of the commitment of award between the CHDO and the City, as required by HUD. Any significant delay in the commencement of the project may result in the cancellation of the commitment of funds. The City’s Department of Community and Human Development will make periodic inspections of the project throughout the construction period. The City will not disburse HOME funds except for work completed. Should the project not be fully completed, all HOME funds must be repaid immediately.

Section 16 - Monitoring for Compliance The City will monitor participating entities for compliance with the HOME Program requirements. Program compliance will be assessed through inspections for compliance with Program requirements and on-site reviews will be conducted by City staff.

Section 17 - General The City’s review of all documents submitted in connection with the HOME Program is for its own processing purposes only and additional requests for supplemental information may be made during the CHDO funding process, as needed. The application for funding contains the main elements necessary to process the request for funding. It is the responsibility of the applicant to determine the appropriate format for required information. As such, applicants should ensure that all requested information is present and clearly identified. The City makes no representations to the applicant or anyone else as to the feasibility or viability of the proposed development. No member, officer, agent, or employee of the City of El Paso shall be personally liable concerning any matters arising out of or in relation to, the commitment of HOME Program funds with regard to feasibility or viability of the proposed development. Timeliness: In compliance with new regulations, HOME-CHDO funds must be committed, the project must be under construction and funds should be at least partially expended, within twelve (12) months from the date the commitment is executed between the CHDO and the City. HUD will automatically cancel projects that do not meet this requirement. Therefore, additional rating points will be given to applications for funding that show an attainable accelerated development timeline for project

Page 12

commitment and completion (Attachment D). The completion date will be incorporated in the Written Agreement and Loan Documents between the City and the applicant who is awarded the funding.

Section 18 - General Federal Requirements Equal Opportunity: No person in the United States shall on the grounds of race, color, national origin, religion, sex or disability be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with HOME funds. In addition, all entities applying for funds through the City of El Paso HOME Program will be required to certify compliance with all federal requirements under the Equal Opportunity legislation. In addition, HOME funds must be made available in accordance with the following: A.

The requirements of the Fair Housing Act (42 U.S.C. 3601-20) and implementing regulations at 24 CFR Part 100; Executive Order 11063, as amended, (Equal Opportunity in Housing) and implementing regulation at 24 CFR Part 107; and Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d) (Nondiscrimination in Federally Assisted Programs) and implementing regulation issued at 24 CFR Part 1;

B.

The prohibitions against discrimination on the basis of age under the Age Discrimination Act of 1975 (42 U.S.C. 6101-07) and the implementing regulations at 24 CFR Part 146, and the prohibitions against discrimination against handicapped individuals under Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations at 24 CFR Part 8;

C.

The requirements of Executive Order 11246 (Equal Employment Opportunity) and the implementing regulations issued at 41 CFR Chapter 60;

D.

The requirements of Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) that: 1.

To the greatest extent feasible, opportunities for training and employment arising in connection with the planning and carrying out of any project assisted with HOME funds be given to low-income persons residing within the general local government area or metropolitan area or nonmetropolitan county in which the project is located; and

2.

To the greatest extent feasible, contract for work to be performed in connection with any such project be awarded to business concerns, including, but not limited to, individuals or firms doing business in the field of planning, consulting, design architecture, building construction, rehabilitation, maintenance, or repair, which are located in or owned in substantial part by persons residing in the same metropolitan area or nonmetropolitan county as the project. Page 13

E.

The requirements of Executive Orders 11625 and 12432 (concerning Minority Business Enterprise) and 12138 (concerning Women’s Business Enterprise). Consistent with HUD’s responsibilities under these Orders, each applicant must make efforts to encourage the use of minority and women’s business enterprises in connection with HOME funded activities to ensure the inclusion, to the maximum extent possible, of minorities and women, and entities owned by minorities and women.

In order to maintain statistical data on the use and participation of minority and women business enterprises as contractors/subcontractors in HOME assisted program contracting activities, the owner will be required to identify contracts which have been bid by minority owned, women owned, and/or small or disadvantaged business. Fair Housing: Participants in the HOME Rental Program will be required to use affirmative fair housing marketing practices in soliciting renters, determining eligibility and concluding all transactions. These requirements apply to all HOME assisted rental projects of five or more units. Each participating entity must affirmatively further fair housing according to 24 CFR Part 570.904(c). A. The City of El Paso will require the CHDO to solicit tenant applications for vacant units from persons in the housing market who are least likely to apply for the rehabilitated housing without benefit of special outreach efforts. In general, persons who are not of the race/ethnicity of the residents of the neighborhood in which the rehabilitated building is located shall be considered those least likely to apply. B. The CHDO’s advertising of vacant units must include the equal housing opportunity logo or statement. Advertising media may include newspapers, radio, television, brochures, leaflets, or may involve simply a sign in a window. C. The CHDO may wish to use community organizations, places of worship, employment centers, fair housing groups, housing counseling agencies, social service centers or medical service centers as resources for this outreach. D. The CHDO must maintain a file containing all marketing efforts (i.e. copies of newspaper ads, memos of phone calls, copies of letters, etc.) to be available for inspection at least annually by the City and authorized state and federal agencies. E. The CHDO shall maintain a listing of all tenants residing in each unit at the time of application submittal through the end of the compliance period. The City of El Paso will evaluate the affirmative marketing efforts of the CHDO by comparing predetermined occupancy goals (based on the area from which potential tenants will come) to actual occupancy data that the CHDO is required to maintain. Page 14

Outreach efforts on the part of the CHDO will also be evaluated by reviewing marketing efforts. The City of El Paso will evaluate the efforts of the CHDO receiving funding during the rent-up and marketing of the units by use of a compliance certification or personal monitoring visit to the project at least annually. Where a CHDO fails to follow the affirmative marketing requirements, corrective actions shall include extensive outreach efforts to appropriate contracts to achieve the occupancy goals or other sanctions deemed necessary. The CHDO MUST provide the City of El Paso with an annual assessment of the affirmative marketing program of the development/project. The assessment must include: A. Method used to inform the public and potential tenants about federal fair housing laws and affirmative marketing policy (i.e., the use of the Equal Housing Opportunity logo or slogan in print advertising); B. Method used to inform and solicit applications from persons in the housing market area who are not likely to apply without special outreach (i.e., use of community organizations, places of worship, employment centers, etc.). C. Records describing actions taken by the CHDO to affirmatively market units and records to assess the results of these actions. Environmental Review: The environmental effects of each activity carried out with HOME funds must be assessed in accordance with the provisions of the National Environmental Policy Act of 1969 (NEPA) and the related authorities listed in HUD’s implementing regulations at 24 CFR Parts 50 and 58. The CHDO will be required to submit a Phase I Environmental Assessment (ASTM E1527-13) of the proposed project, by a qualified professional at their expense at time of application submission. Labor Standards: Every contract for the construction of housing that includes 12 or more units assisted with HOME funds must contain a provision requiring the payment of not less than the wages prevailing in the locality, as predetermined by the Secretary of Labor pursuant to the Davis-Bacon Act. Such contracts must also be subject to the overtime provisions, as applicable, of the Contract Work Hours and Safety Standards Act. The contract for construction must contain these wage provisions if HOME funds are used for any eligible project costs including construction or non-construction costs, of housing with 12 or more HOME assisted units. Federal Labor Standards require that all persons working on the site be paid at an hourly rate not less than the minimum rate specified in the Davis-Bacon Wage Page 15

Determination issued for each particular property. The CHDO will be required to certify compliance with the above noted Federal Labor Standards and prevailing wage determination before the City makes any payments under the applicable construction or rehabilitation contract. The prevailing wage provisions do not apply to (1) an individual who receives no compensation or is paid expenses, reasonable benefits, or a nominal fee to perform the services for which the individual volunteered and who is not otherwise employed at any time, in the construction work, or (2) to members of an eligible family who provides labor in exchange for acquisition of a property for home ownership or provides labor in lieu of, or as a supplement to, rent payments. Lead-based Paint: Housing assisted with HOME funds constitutes housing that is financially assisted by the Federal Government for the purpose of the Residential Lead-Based Paint Hazard Reduction Act of 1992 42 U.S.C. 4852(d) and is, therefore, subject to 24 CFR Part 35 and the Final New HUD Regulation on Lead-Based Paint Hazards in Federally Owned Housing and Housing Receiving Federal Assistance. Conflicts of Interest: No person who (1) is an employee, agent, consultant, officer or elected or appointed official of the City of El Paso or of any applicant who receives HOME funds, and who exercises or has exercised any functions or responsibilities with respect to activities assisted with HOME funds, or (2) is in a position to participate in a decision-making process or gain inside information with regard to such activities, may obtain a personal or financial interest or benefit from a HOME-assisted activity, or have an interest in any contract, subcontract, or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter. In the procurement of property and services by the applicant or the City of El Paso, the conflict of interest provisions in 24 CFR Part 85.36 and 24 CFR Part 84.42, respectively apply. In all cases not governed by 24 CFR Part 85.36 and 24 CFR Part 84.42, the above-noted provision applies. Debarment and Suspension: CHDOs and their contractors are prohibited from employing, awarding contracts, or funding any contractors or subcontractors that have been debarred, suspended, proposed for debarment, or placed on ineligibility status by HUD. In addition, any CHDO who is debarred, suspended, proposed for debarment or ineligible will be prohibited from participating in the HOME Program. Historic Properties: Any development project that will affect historic properties (i.e., rehabilitation of an existing building or construction in a historic district) must provide evidence from the State Historical Preservation Office that notification of the project has been received Page 16

and that the proposed project will have no adverse effect on the historical significance of the structure, or that cooperation and adherence to the Historic Preservation Act is being accomplished through continued correspondence and mutual agreement with the State on the proposed rehabilitation. Flood Zones: Additional HUD requirements must be met if properties are located within a flood zone. No new construction will be allowed in areas located in flood zones according to the most current maps available from the Federal Emergency Management Agency (FEMA) unless the finished design results in removal from flood zone (i.e. LOMR, CLOMR). Attachment H must be completed and explained why project will be built in a flood zone. CHDOs are urged to contact Community Development’s Environment Specialist, Fernando Arellano at 212-1648, for a determination prior to submitting their proposal. Limited rehabilitation will be allowed on existing properties located in flood zones. This will be limited to activities costing less than 50% of the current property’s value. The CHDO will be required to maintain flood insurance until their obligation to the City is completed. The Department of Housing and Urban Development (HUD) recommends that priority be given to properties outside any flood zone.

Section 19 – Repayment A CHDO submitting an application for funding acknowledges and agrees that the CHDO MUST repay all HOME funds advanced to a development/project if the development / project assisted with HOME funds does not meet the affordability requirements for the required period of time. Submission of an application for funding acknowledges all conditions and regulations contained in this program and that the applicant will adhere to them.

IN ORDER FOR THE CHDO PROPOSAL TO BE CONSIDERED, THE FOLLOWING ACTIONS MUST BE COMPLETED. PLEASE NOTE THE DEADLINES:

JUNE 13, 2016 by 6:00 PM

CHDO CERTIFICATION MUST BE COMPLETED AND SUBMITTED WITH APPLICATION: ONE ORIGINAL & TWO COPIES CITY OF EL PASO, CITY 3 HOUSING PROGRAMS DIVISION ARTURO RUBIO – 801 TEXAS AVENUE 3rd FLOOR, EL PASO, TX 79901

CD/HR Proposals/CHDO Proposal/CHDO Proposal 2016/HOME Program Guidelines for CHDO Set Aside Funds 2016

Page 17

and that the proposed project will have no adverse effect on the historical significance of the structure, or that cooperation and adherence to the Historic Preservation Act is being accomplished through continued correspondence and mutual agreement with the State on the proposed rehabilitation. Flood Zones: Additional HUD requirements must be met if properties are located within a flood zone. No new construction will be allowed in areas located in flood zones according to the most current maps available from the Federal Emergency Management Agency (FEMA) unless the finished design results in removal from flood zone (i.e. LOMR, CLOMR). Attachment H must be completed and explained why project will be built in a flood zone. CHDOs are urged to contact Community Development’s Environment Specialist, Fernando Arellano at 212-1648, for a determination prior to submitting their proposal. Limited rehabilitation will be allowed on existing properties located in flood zones. This will be limited to activities costing less than 50% of the current property’s value. The CHDO will be required to maintain flood insurance until their obligation to the City is completed. The Department of Housing and Urban Development (HUD) recommends that priority be given to properties outside any flood zone.

Section 19 – Repayment A CHDO submitting an application for funding acknowledges and agrees that the CHDO MUST repay all HOME funds advanced to a development/project if the development / project assisted with HOME funds does not meet the affordability requirements for the required period of time. Submission of an application for funding acknowledges all conditions and regulations contained in this program and that the applicant will adhere to them.


JUNE 13, 2016 by 6:00 PM

CHDO CERTIFICATION MUST BE COMPLETED AND SUBMITTED WITH APPLICATION: ONE ORIGINAL & TWO COPIES CITY OF EL PASO, CITY 3 HOUSING PROGRAMS DIVISION ARTURO RUBIO – 801 TEXAS AVENUE 3rd FLOOR, EL PASO, TX 79901

CD/HR Proposals/CHDO Proposal/CHDO Proposal 2016/HOME Program Guidelines for CHDO Set Aside Funds 2016

Page 17

HOME PROGRAM CHDO PROPOSAL CHECKLIST

HOME PROGRAM COMMUNITY HOUSING DEVELOPMENT ORGANIZATION HOUSING PROPOSAL CHECKLIST The items listed below are necessary for the Department of Community and Human Development to evaluate your affordable housing proposal: Eligibility ________1.

A completed Application for CHDO Certification (Part 1);

Project Sponsor/Developer Information: ________2.

A comprehensive Marketing Analysis of the project concept has been included, which contains the tenure type (i.e., rental) of the housing proposed, nature of the project (e.g., construction), the number of housing units proposed, the bedroom mix of the housing units, the proposed rents, etc. For rental projects, the HOME rents allowed have been included. A rent worksheet which shows rents charged and utility allowances in the proposed projects as well as a unit configuration worksheet have been included and must be completed and submitted;

________3.

A statement has been provided that demonstrates whether the proposed project involves dwelling units being demolished or converted to another use;

________4.

A statement has been included that identifies the target population by income (60% or less of median income; or 50% or less of median) and type: large or small families, homeless, elderly, and individuals with physical, mental or emotional impairments, developmental disabilities or chronic mental illness. Income guidelines have been attached.

Site Information: ________5.

An address and legal description of the property in question has been provided;

________6.

Documentation showing ownership of property or how ownership will be achieved has been provided;

________7.

A statement has been provided that demonstrates that there are no outstanding legal judgments against the property in question or the owner(s) (title information will be required before any project is approved);

________8.

A statement has been provided demonstrating that all property taxes are current;

________9.

Documentation has been provided demonstrating that all property is adequately zoned;

________10. Documentation has been provided that shows the property is not in a flood plain—if it is, then a plan has been provided to mitigate the flood hazard; ________11. A statement has been provided that shows the age of all buildings and whether the property in question is or is not in a recognized Historic District or has designated historic buildings; ________12. If the project site is within the geographic area of a City-recognized neighborhood association, proof that the association has been notified; ________13. A statement has been provided indicating that all utilities are available to the site—if utilities are not present, then a plan has been provided to address this issue; ________14. If the proposed project involves construction of new housing, then the applicant must include a list of all neighborhood amenities within a one mile radius of the new housing. This list must describe the neighborhood amenities (i.e. grocery stores, clinics, parks, recreational facilities) and its straight-line distance to the proposed project. Project Budget: ________15. For all projects, a preliminary cost estimate and site plan has been provided by a licensed architect, contractor or engineer; ________16. If the project in question is requesting funds for acquisition, then at a minimum, a current (six month) Form Summary Appraisal has been provided as the basis for determining fair market value and the amount being requested for acquisition; ________17. A breakdown has been included which shows the total project budget and predevelopment or “soft” costs (architect fees, legal fees, engineering fees, accounting fees and costs; other professional fees, surveys, accounting fees and services, market studies, title and recording expenses, and other necessary and related predevelopment expenses). A sample worksheet showing project development costs has been provided and will assist in the completion of this requirement. Proposed Financing: ________18. A statement has been provided demonstrating the amount requested and the terms from the City of El Paso HOME Program; ________19. Documentation has been provided demonstrating the amount and terms of financing that will be provided from sources other than the City of El Paso if other sources are proposed for the project; ________20. A statement has been provided indicating how the proposed assistance from the HOME Program is necessary in order to produce affordable housing for the target population;

IF ANY INFORMATION IS MISSING OR INCOMPLETE, THEN PROCESSING OF THE APPLICATION FOR FUNDING WILL STOP AND THE APPLICANT WILL BE NOTIFIED OF THE MISSING ELEMENT(S). THE DEPARTMENT OF COMMUNITY AND HUMAN DEVELOPMENT RESERVES THE RIGHT TO REQUEST ADDITIONAL INFORMATION AS NECESSARY.


JUNE 13, 2016 6:00 PM

CHDO CERTIFICATION MUST BE COMPLETED AND SUBMITTED with COMPLETED CHDO APPLICATION DUE ONE ORIGINAL & TWO COPIES ARTURO RUBIO – 801 TEXAS AVE., 3RD FL. HOUSING PROGRAMS DIVISION EL PASO, TEXAS 79901

CD/HOMEProgram/HR Proposals/CHDOProposals/CHDOProposals2014/HOMEProgramCHDOHousingProposalChecklist2016

RATING CRITERIA

CHDO RATING CRITERIA

Total Points: __________

All responsive applications (those which contain the required information) will be awarded additional points for priority concerns as follows (maximum of 200 points):

APPLICANT’S EXPERIENCE AND CAPACITY: BE SPECIFIC WITH PROJECT LOCATION / COMPLETION DATE / # OF UNITS 25 points

The proposal demonstrates that the applicant has considerable experience (three or more successfully completed projects) in development and administration of similar housing projects.

15 points

The proposal demonstrates that the applicant has experience (two successfully completed projects) in the development and administration of similar housing projects.

10 points

The proposal demonstrates that the applicant has some experience (at least one successfully completed project) in the development and administration of a similar housing project.

AFFORDABILITY: 20 points

All units in the proposed project will be affordable to very low income households (≤50% of median income).

15 points

At least 50% of units in the proposed project will be affordable to very low income households.

10 points

More than 20% of units in the proposed project will be affordable to very low income households.

TARGET POPULATION: 25 points

All the dwelling units to be constructed will be three bedrooms or larger.

15 points

At least 50% of the dwelling units will be three bedrooms or larger.

10 points

At least 50% of the dwelling units will be two bedrooms or larger.

SPECIAL NEEDS HOUSING: 10 points

If the proposed housing is for persons with special needs (homeless, elderly, individuals with physical, mental or emotional impairments, developmental disabilities or chronic mental illness), the proposal includes a plan for supportive services (see #34 on the Application).

Page 1 o f 2

RATING CRITERIA REPAYMENT OF FUNDS: 20 points

Applicant will repay 100% of the HOME-CHDO Program funds.

15 points

Applicant will repay 50% or more of the HOME-CHDO Program funds.

10 points

Applicant will repay 26% to 49% of the HOME-CHDO Program funds.

5 points

Applicant will repay at least 25% of the HOME-CHDO Program funds.

TIMELINESS: NOTE: In compliance with new HUD requirements, if a project is not closed and funds drawn within 12 months of funding commitment, the project will be canceled by HUD. A review of CHDO’s past timeliness performances will also be included. (Refer to Attachment D – Development Timeline) 20 points

The project will be under construction and funds at least partially expended within 8 months from execution of the CHDO Written Agreement.

10 points


5 points


LOCATION OF DEVELOPMENT: 30 points

The project site is located in Districts 6 or 7.

WATER / ENERGY EFFICIENCY: 5 points

Water efficient landscaping is included in the design plans (e.g. xeriscaping, gray water recycling). Energy efficient appliances (as noted below) will be provided for 100% of the units:

5 points 5 points 5 points 5 points

A. Energy Star Water Heater B. Energy Star Refrigerators C. High efficiency Furnace D. Energy Star Air Conditioning Units

OTHER CRITERIA: 0-25 points

Subjective evaluation of other criteria including, but not limited to: the results of the Market Analysis rating, (e.g. suitability of site and surroundings; cost factors; collaboration by project sponsor; leveraging of private funds; design elements; level of need) creativity and innovation, relocation / displacement.

Page 2 o f 2

CHDO SET-ASIDE FUNDS APPLICATION FORM

THE CITY OF EL PASO HOME INVESTMENT PARTNERSHIPS PROGRAM COMMUNITY HOUSING DEVELOPMENT ORGANIZATION SET-ASIDE FUNDS APPLICATION FORM 2016

1.

Agency Name:

_____

2.

Contact Person:

_____

3.

Agency Address:

_____

4.

Telephone Number:

_____ OFFICE

5.

Project Title:

6.

Total Amount of HOME Funds Requested:

CELL

FAX

_____ $

_____

(Minimum $300,000 & Maximum $1,000,000 per Development)

7.

8.

9.

Indicate Use of All Funds By Category and Amount: A. Acquisition:

$_________________________

B. Design/Soft Costs:

$_________________________

C. New Construction of Rental Housing:

$_________________________

D. Rehabilitation/Conversion of Rental Housing:

$_________________________

E. Funds from other Sources

$_________________________

F. Total Project Cost:

$

_____

Street Address of Proposed Project:

_____

City, State, Zip:

_____

Number of HOME Assisted Rental Units:

_____

Total Number of Units:

_____

Applicant’s Signature:

Title: _

_____

Date:

_____

1

10.

Provide a list of present members, officers and employees of your organization and a copy of your most recent Certified Audit report (dated January 1, 2016 or after).

11.

Include a narrative description of the project, specific goals and objectives as an attachment (clearly labeled #11). This narrative should include the rationale for selection of the approach and method proposed to meet the housing needs of the target population. Attach a recent Market Analysis (within 6 months of application submittal) that includes answers to all items in Attachment I. Note: Additional points (30) will be given to projects located in District Six (6) or District Seven (7).

Acquisition: No applications involving acquisition will be considered unless requested HOME/CHDO funding for acquisition is substantiated, at a minimum, by a recent Form Summary Appraisal or Broker’s Opinion (within 6 months of application submittal). An application for HOME/CHDO funds as partial funding for acquisition will require the applicant to present documentation that the remaining funds for acquisition are firmly committed and available. Applicants will be required to place in escrow any cash funds to be used for site acquisition at the time of closing on the HOME/CHDO documents. 12.

Does the proposal involve acquisition? _______ Yes

13.

14.

_______ No

What is applicant’s form of site control (attach evidence for item checked)? _______ Deed

_______ Option to Purchase

_______ Purchase Contract

_______ Letter of Intent to Sell

Attach one of the following forms of appraisal for the property that has been completed within 6 months of application submittal. Please note, Central Appraisal District (CAD) valuations are unacceptable. Form Summary Appraisal _____ Broker’s Opinion 15.

_____

Attach a legible map identifying the project site. Please note 30 additional points will be given to projects located within Districts 6 or 7.

2

16.

Design/Bedrooms per unit: Number of current dwelling units in the property: _________________________ Number of dwelling units in the structure after rehabilitation or construction: ____ Number of units and bedroom size:

Efficiency 1 Bedroom 2 Bedrooms 3 Bedrooms 4 Bedrooms

Quantity _______ _______ _______ _______ _______

If 5,000 sq. ft. or less (i.e. triplex, quadraplex), will you authorize design of the project to be completed by staff of Community Development? YES_____ NO_____ 17.

Construction Cost: What is the estimated cost for this project? ____________________________ What is the estimated cost per square foot? ___________________________ Attach a Cost Estimate signed by an Architect (AIA) or a licensed Contractor or Engineer.

Environmental and Neighborhood Considerations: Does the proposed project site(s) have any potentially adverse environmental concerns that need to be addressed before the project is developed? Environmental concerns to consider include: site is location of a former landfill; site is in a flood plain; site is located near railroad tracks, a heavily traveled street, or an airport; hazardous materials are stored on the site or near the site; the site is near a cliff or an arroyo; or the site is located within a historic district. If so, what is/are the potentially adverse environmental concern(s) and how would it/they be addressed? If the proposed project is located within the geographical area of a City-recognized neighborhood association, the applicant must notify the association about the project at an association meeting and provide with this application, a written acknowledgement of notification from the association or the scheduled meeting date for notification. If there is no Neighborhood Association, applicant must provide proof that the neighborhood has been notified in writing of the proposed development that includes project description and applicant contact information, at a minimum. Include this information and label as attachment #17. Note: An interactive map of neighborhood associations is located on the Community and Human Development Dept. Webpage at: http://gis.elpasotexas.gov/neighborhoodassociations/index.html

3

Applicants may also contact Mark Webber, Community Development Neighborhood Services Coordinator, at 915 212-1682, for assistance in coordinating their presentation of the proposed project to the appropriate neighborhood association and/or for additional clarification.

18.

Is this property located in a flood zone? _______ Yes

_______ No

If yes, (please provide evidence clearly labeled #18). Please complete Attachment H to further explain the mitigation procedures.

19.

A. Is the site properly zoned for your proposed development? _______ Yes

_______ No

If yes, provide evidence – Zoning Verification Letter -- demonstrating proper zoning (clearly labeled #19). If no, is site currently in the process of re-zoning? (Provide evidence labeled #19). Contact Raul Garcia at 212-1643 or Jeffrey Howell at 212-1607 in the Planning and Inspections Department / Zoning Section to confirm zoning compliance. Allow a minimum of 3 weeks to receive a Zoning Verification Letter, so please plan accordingly. Refer to zoning application:

http://www.elpasotexas.gov/~/media/files/coep/city%20development/planning/zoning/zon ing%20verification%20app%20form9-15-14.ashx?la=en B. Is the property platted for the proposed use? _______ Yes _______ No Contact Nelson Ortiz at 212-1606 in the Planning and Inspections Department / Subdivision Section to confirm platting compliance. Allow a minimum of 3 weeks to receive a Platting Determination Letter, so plan accordingly. Refer to platting application website noted above. NOTE: For planning purposes – If property is not platted, Park Fees will be charged at approximately $600 per unit. Also, the property must be platted before a permit will be issued by City Development.

20.

Is the proposed building/site located in a recognized Historic District or is it a designated Historic Building? _______ Yes

_______ No

4

21.

Is the project site located in a City approved Target area that is within either District 6 or District 7. (Please refer to maps to confirm.) _______ Yes

_______ No

If yes, please note the area: _________________________________________ Note: Additional points (30) will be given to projects located in District Six (6) or District Seven (7). 22.

Utilities: What utilities are currently available to the property site? Gas_______

Electricity_______

Water_______

What utilities are currently included in the monthly rents? Gas_______

Electricity_______

Water_______

What utilities will be included in the monthly rents after rehab/construction? Gas_______

23.

Electricity_______

Water_______

Building Data: Number of buildings involved in the development?

.

How many units per building?

(Complete Unit Configuration Worksheet)

Please answer this question by completing the Unit Configuration Worksheet attached to this packet. Complete one table for each detached building proposed in your project. (Attachment F)

24.

Relocation of Tenants: If you are planning to acquire a building, how many of the existing dwelling units are occupied? __________ Vacant? __________ If completely vacant, how long has the property been vacant? _______________ Are any of the units owner-occupied? __________________________________

5

ACCORDING TO THE TENANT SURVEY, THE CURRENT RESIDENTS REQUIRE THE FOLLOWING APARTMENTS Number Required

PROPOSED DWELLING UNIT SIZES AFTER REHABILITATION

Number Proposed

Efficiencies ___________ One-bedroom__________ Two-bedroom__________ Three-bedroom_________ Four-bedroom__________

Square Footage

Efficiencies ________ One-bedroom______ Two-bedroom______ Three-bedroom_____ Four-bedroom______

_________ _________ _________ _________ _________

Number of current tenant families who will be permanently displaced because a suitable unit will not be available in the building after rehabilitation: __________ Attach completed demographics forms on all current tenants (Attachment K)

25.

Monthly Rents: Current Monthly Rents: Efficiencies (2 rooms) 1-bedroom (3 rooms) 2-bedroom (4 rooms) 3-bedroom (5 rooms) Larger

26.

$________ $________ $________ $________ $________

Proposed Monthly Rents After Project Completion: Efficiencies 1-bedroom 2-bedroom 3-bedroom Larger

$________ $________ $________ $________ $________

Please provide a preliminary site plan prepared by your Architect/Engineer that identifies set backs, parking and utilities. Please provide a preliminary floor plan prepared by your Architect/Engineer with dimensions indicating location of accessible and sensory units.

27.

Judgments: Are there any judgments against this property? _______ Yes

28.

_______ No

Property Taxes: Are the property taxes current? _______ Yes

_______ No

If yes, provide a copy of current property tax receipt (or print-out from the Internet Tax Site).

6

If no, how much is due? $ Note that Federal Funds may not be used to pay taxes. 29.

Support Services:

.

Do you intend to provide tenant programs, which are designed to improve the tenant’s commitment to the unit’s appearance, operation, and permanency? Such programs may include tenant management, involvement of community-based organizations, tenant screening, tenant activities, provision of day care, and availability of tenant counseling. Please explain on attachment clearly labeled #29.

30.

Long-Term Management: What are your plans for managing the proposed rental property? Explain your experience in this area or do you plan to hire a management firm to manage the property?

31.

Explain who will be responsible for the annual certification of tenants’ incomes and their qualifications to perform these certifications.

32.

If known, please explain who will perform property maintenance of HOME assisted units and describe their qualifications.

Occupancy Requirements: All of the HOME assisted units must be occupied by families with incomes that do not exceed 60% of the Area Median Income. At least 20% of HOME assisted units in each project with 5 (five) or more rental units must be occupied by persons with annual incomes that do not exceed 50% of median income. NOTE: These requirements must be met in order to be eligible for funding. Projects serving a higher percentage of very low-income persons will receive a higher rating. 33.

Please indicate the number and percentage of occupied units targeted for HOME assistance in the table below: DESCRIPTION Number of HOME assisted units occupied by tenants between 51% - 60% of the Median Income

# OF UNITS

% OF TOTAL

Number of HOME assisted units occupied by tenants less than 50% of Median Income TOTAL

7

34.

Special Needs Population: Do you anticipate assisting any of the following special population groups? NOTE: Assistance to any of these groups will result in a higher rating for scoring purposes only if the proposal includes a plan for supportive services. DESCRIPTION Elderly (age 55 and over)

# OF UNITS ___________

% OF TOTAL

Housing for Persons with Disabilities; homeless persons; persons living with AIDS patients; migrant farm workers TOTAL

35.

Rent Levels: Complete the Rent Worksheet for Low and High Home Rents (Attachment E). Do not exceed HUD 2014 Utility Allowances for utility calculations as noted in Attachment B. Also please note the following: LOW HOME RENTS: At least 20% of HOME assisted units in a project with 5 (five) or more rental units must have rents no greater than 30% of the annual incomes for households at 50% of median income minus tenant paid utilities. Refer to Attachment A for HOME rent limits. Pleases provide a breakdown of the Low HOME Rent Units as calculated. HIGH HOME RENTS: HOME assisted rental units must have rents that do not exceed the High HOME Rent. Refer to Attachment E for these rent limits and provide a breakdown of the HIGH HOME rent units as calculated.

36.

Projected Monthly Rental Income Calculation: Based on the Rent Worksheets, complete the following: Total Number

% of Total

Total Number of Units in Project Total Number of HOME Assisted Units Total Number of HOME Rent Units Total Number of Low HOME Rent Units Total Number of High HOME Rent Units

8

37.

Term of Affordability: New construction of HOME assisted units requires an affordability period of twenty years. These are the minimum federal requirements for affordability: Properties involving new construction or acquisition of newly constructed housing Rehabilitation: >$40,000 per unit or if Financing is involved Rehabilitation: $15,000 - $40,000 per unit

38.

20 years 15 years 10 years

Rehabilitation: