developers’ workshop agenda: 1.welcome & introductions 2.draft 2012 qap, including...

Developers’ Workshop

Agenda:

1. Welcome & Introductions

2. Draft 2012 QAP, including clarifications and questions from the audience

3. Appendix B- Design Requirements

4. On-line Application

5. Other comments/questions

Disclaimers• QAP still a draft; don’t anticipate changes

• Not covering everything new or different

–focusing on what developers need to know for the application

–participants responsible for knowing rules

–if questions not covered, ask today or follow up with staff

Draft 2012 QAP• There are a number of changes from 2011,

including between drafts

• Changes are in response to comments

• Anticipate some challenges in adapting to new policies

• Continued improvement of program

Amount & Set-Asides• Approximately $21M available

• 10% for rehab, including $750k for RD

• Remaining for new construction in regions:Central- 24% East- 23%West- 17% Metro- 36%

• Then next highest scoring statewide–excluding mortgage subsidy points

Award Limits• No more than 20% of LIHTCs awarded to

projects with a nonprofit as the applicant

• Maximum to any Principal is $1.5M

• Will apply new construction awards first, then rehab, towards limit

• Maximum to any Project is $1.0M

Redevelopment Projects• Only 50% of one Redevelopment Project

award counts towards Principal limit

• Project must meet the following requirements:

–site has or had a commercial, residential, educational, or governmental structure

–historic ad-reuse and/or new construction

–any required demolition has been or will be completed in 2012 (excluding project)

Redevelopment, con’t• A unit of local government must:

–initiate the project

–have invested community development resources in ½ mile area in last 10 years

–adopt a plan to address deterioration, and

–approve a donation of land, fee waiver, or $75,000 loan/grant

Redevelopment, con’t• A local government official will need to

document all elements of involvement

• Replaces points for Community Revitalization Plans and land donation

9% Flat Rate & Basis Boost• Under § 42, the flat 9% rate is not available

for buildings PIS after Dec. 30, 2013

• Unknown if or when will change

• If date not extended, Agency will boost eligible basis by 15%

• Excludes projects using DDA/QCT boost (i.e. cannot receive 145%)

County Award Limits• One rehab award per county

• Maximum for new construction is–$2M in Metro counties–$1M for the East, Central and West

Can exceed to fund last project

• No applications accepted in 15 counties:Alexander, Avery, Bladen, Brunswick, Lincoln, Moore, Orange, Pasquotank, Pitt, Randolph, Rockingham, Scotland, Stanly, Transylvania, and Wayne

Deadlines• Preliminary application due noon January 13th

• Full application due noon May 11th, including:

–discretionary zoning / special use permits must be approved; no extensions

–funding sources must be committed (including local gov’t); no extensions

Site Evaluation• Substantial changes in process

• Same basic concepts still apply–being a good place to live–real estate fundamentals

• Applicants have more ability to predict scores

• Applicants will self-score with prelim app

Neighborhood Characteristics• Consider Half Mile area around site

• Good (18): structures are well maintained or a Redevelopment Project

• Fair (9): structures are not well maintained and there are visible signs of deterioration

• Poor (0): structures are Blighted or have physical security modifications

N’hood Character, con’t• Half Mile is radius from approx. center of site

• Blighted structure is–abandoned,–deteriorated substantially beyond normal

wear and tear,–a public nuisance, or–appears to violate minimum health and

safety standards

Amenities• Points based on driving distance to

–Grocery and–Shopping or pharmacy (either)

• QAP has list of establishments eligible as Grocery or Shopping (can be any pharmacy)

• Must be open as of Jan. 13 th

• Other businesses do not count

Eligible Grocery Stores

Aldi The Fresh Market Kroger Super Kmart

Bi-Lo Harris Teeter Lowes Foods Super Target

Bloom IGA Piggly Wiggly Trader Joe’sCompare Foods Ingle’s Market Sav-Mor

Wal-Mart Super Center

Earth Fare Just $ave Save-A-Lot Whole Foods

Food Lion

Eligible Shopping

Big Lot’s Dollar Tree Kmart Target

Dollar General Family Dollar Roses’ Wal-Mart

Points for Amenities

driving distance in miles

≤ 0.5 ≤ 1.0 ≤ 1.5 ≤ 2.0 > 2.0

Grocery 18 pts. 14 pts. 10 pts. 6 pts. 0 pts. Shopping or pharmacy

9 pts.

7 pts.

5 pts.

3 pts.

0 pts.

Driving Distance• Mileage is as calculated by Google Maps:

–from point closest to site entrance–to point closest to amenity entrance

• Include driveways, access easements, etc. if >500 ft. from building to road

• If scattered site use location with the longest distance

• Agency staff will visit sites to check

Google Map Basics• Applicants will submit routes using Google

Maps

–Consistent method, easy to use, and available to everyone

• Agency will provide further guidance on maps

Incompatible Uses• 6 points if uses not within specified distances

• Half Mile radius:–airports–chemical or hazardous materials storage/disposal– industrial or agricultural activities with

environmental concerns (odors or pollution)–commercial junk or salvage yards– landfills currently in operation–sources of excessive noise–wastewater treatment facilities

Incompatible Uses, con’t• Parcel or right of way within 500 ft. containing:

–adult entertainment establishment–electrical utility substation, whether active or not–distribution facility– factory or similar operation– frequently used railroad tracks–high traffic corridor– jail or prison– large swamp–power transmission lines and tower

Negative Features• 3 points if no

–negative features,–design challenges,–physical barriers, or–other unusual and problematic

circumstances

within the project boundaries (i.e. not off-site)

Negative Features, con’t• Would impede project construction or

adversely affect future tenants, including:–power transmission lines and towers–flood hazards–steep slopes–large boulders–ravines–year-round streams–wetlands

Visibility & Isolation• 3 points if project would be both

–visible to potential tenants using normal travel patterns

–within 500 ft. of a residential, commercial, educational, or governmental building

• Latter excludes abandoned/Blighted structures and Incompatible Uses

Traffic Pattern• 3 points if traffic controls allow for safe and

convenient access

• Examples:

–Access with traffic light would receive points

–Right turn only would not receive points

Site Scoring Summary• 18, 9, or 0 for Neighborhood Characteristics

• 18, 14, 10, 6, or 0 for Grocery

• 9, 7, 5, 3, or 0 for Shopping or pharmacy

• 6 for lack of Incompatible Uses

• 3 for lack of negative features

• 3 for being visible and not isolated

• 3 for safe and convenient access

Mortgage Subsidy• Maximum of 10 points available in the Metro:

Funds/Unit Points$6,000 6$8,000 8$10,000 10

• No points in the East, Central, and West

Minimum Experience• Principal must have one NC project

–developed, operated and maintained in compliance

–PIS between Dec. 1, 2005 and Jan. 1, 2011

• This individual or entity must be listed as applicant in the pre-app

NC Office / Experience• Will receive 5 points if applicant has

–principal office in NC, or–10 NC awards from 2005-11

• Agency will consider info submitted with past applications

• Will receive 2 points if general contractor has principal office in NC

Applicant vs. Principal• Applicant is a single individual or entity

• The only one considered for–nonprofit limit–experience threshold requirement–experience or NC office points

• Must become GP / managing member and stay in ownership for two years

• Applicant is the decision maker

Applicant vs. Principal, con’t• Principal is a broader concept, covers

–partners/members of the ownership entity–recipients of the developer fee–their affiliates

• Matters for the $1.5M award limit and experience disqualifications

• See QAP definition

Rehabilitation• Either increasing the number or substantially

reconfiguring units is new construction

• Project must have–LIHTC allocation or federal PBRA–PIS date on or before Dec. 31, 1996–total replacement costs of <$120,000/unit

• Tenant-based vouchers or local gov’t funding no longer qualifies

Developer Fee• Increased to $12,000/unit for new const. or

28% of Line 4 for rehab

• Application also may include greater of:–$500/unit or–$30,000

• If not needed for overruns, may be taken as increased developer fee

Post-Award• Between award and 8609, owners must

have Agency approval before:

–changing anticipated or final sources, including equity

–increasing anticipated or final uses by >2%

–altering approved designs

–starting construction, including sitework

–increasing rents

Post-Award, con’t• Must provide prompt written notice if change

in uses or design is due to a local gov’t

• Not following requirements may result in–fine of up to $25,000–revocation of award–future disqualification

• Not penalizing the change but failure to have prior approval or give notice

Design Requirements• Points reduced from 50 to 30

• Plans as .PDF files on a CD

• Dimensional shingles

• Finished floor coverings in mechanical and storage closets–interior: carpet, sheet vinyl, or VCT–exterior: sealed and painted concrete

• Same switch for overhead ceiling light and exhaust fan in full bathrooms

Design Requirements, con’t• 70 CFM range hoods vented to the outside

using hard duct

• HVAC system 13 SEER, 7.7 HSPF or greater and properly sized for the unit

• Condensate hub drains piped outside; sanitary sewer only with primed p-trap

• Energy Star 2.0

Design Requirements, con’t• The following amenities are required:

(computer room no longer required, but can be selected as optional amenity)

• Three amenities from list in Appendix B

Family Senior Playground Indoor or Outdoor Sitting Areas Covered Picnic Area Multi-Purpose Room

Outdoor Sitting Areas with Benches Tenant Storage Areas

Type “A” Requirements• Audible alarm and strobe light above entry door

• Braille signage

• Emergency pull station in master bedrooms

• Remote switches for range hood fan and light

• Clothes washer and dryer centered in a 4 ft. clear floor space area

• Grab bars for toilets, tubs and showers

On-Line Application• Some will need to change accounts

• Site self-scoring as part of prelim app

• Prelim app checklist will include:

–Google Maps and photos of amenities

– local gov’t official documentation of Redevelopment Project eligibility

Questions?