overview cpp housing component cameo lane fnrc. 2 dds housing initiative the development of...
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OverviewCPP
Housing Component
Cameo Lane FNRC
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DDS Housing Initiative
The development of affordable, accessible homes is critical to DDS’ goal to expand opportunities for consumers to live in integrated community settings.
Guiding Principles “Buy It Once”Separation of ownership from service
deliveryRestricted use through long-term deed
restrictions
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What is CPP Housing?
The Community Placement Plan (CPP) is an integral part of DDS’ efforts to implement Olmstead v. LC for individuals with complex needs.
The RCs CPP Housing is driven by housing needs identified in the IPP solely for:
individuals who will move from the developmental centers
individuals at risk of moving into a developmental center
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CPP Timeline
Regional centers may submit CPP proposals annually.
September - DDS issues Housing Guidelines for
proposals November - RC prepares and submits proposal to
DDS December - DDS reviews proposals and makes a
determination of conditional approval July – CPP housing implementation contingent on
passage of the State budget
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Uses of Funds (see Appendix 1 of the Housing Guidelines for more detail)
Allowable Expenses
Pre-development
Acquisition
New construction
Renovation/rehabilitation
Development costs
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Uses of Funds (cont’d)
Allowable Expenses (cont’d)
For either a single-family or multi-family project, the total cost includes: purchase price down payment equity financing (e.g. tax credit funds) renovation/rehabilitation costs
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Uses of Funds (cont’d)
Allowable Expenses (cont’d)
For a multi-family project the total cost is computed only for the units that will be used for CPP placements.
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Uses of Funds (cont’d)
Non-allowable expenses
Purchase or improvement of real property to be owned by a consumer or family.
Purchase of real property for which another funding source is available or to supplant existing funding.
Purchase of real property owned by the regional center.
Ancillary costs not associated with the production of housing.
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Role of the RC
Prepares and submits proposal to DDS; RC is the ONLY entity that may apply for CPP funds.
Provides direction and oversight to the project development team so that the housing is developed consistent with the approved CPP housing plan and guidelines.
Submits quarterly progress reports to DDS during development, and an annual report after completion of the project.
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Pre-Screening Criteria
RC has satisfactorily completed any prior CPP-funded housing projects. RC has demonstrated satisfactory progress, including timely submission of quarterly reports and required documents, on any prior CPP-funded housing projects.
The proposed housing is consistent with the needs of consumers residing in the developmental centers or requiring deflection.
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Steps to Developing a CPP Proposal
Proposal Submission
Required Elements
Narrative Description
Budget
Implementation Plan
Organizational Documentation
NPO/Development Team
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Proposal Submission Process;Proposal Content
Required Elements:
75% of the CPP units must be for individuals exiting a developmental center
25% may be used for deflection from a developmental center
CPP funds may not exceed 25% of the total cost of a proposed project
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Proposal Submission Process;Proposal Content
Required Elements (cont’d):
Demonstrate a separation of property ownership from the delivery of services and supports.
Property must be owned by an NPO selected by the RC.
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Proposal Submission Process; Proposal Content
Narrative Description
Type of housing – single-family, multi-family
Number of CPP consumers served at each property
Services to be provided
Target population
Description of neighborhood
Project type – new construction, acquisition, rehabilitation/renovation
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Proposal Submission Process;Proposal Content
Budget
Sources and uses of funds
Sources of leveraged funds
Ongoing operating expenses
If CPP funds are reimbursed at permanent loan closing, NPO must describe how those funds will be reused for future affordable housing projects
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Proposal Submission Process;Implementation Plan
Proposed Implementation Plan
Sequenced activities necessary for project completion
Activities specific to each project site
Projected completion date for each property
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Proposal Submission Process; Organizational Documentation
The regional center will obtain and submit the following documentation for the NPO:
RC vendor approval letter
IRS 501(c)(3) letter
Board of Equalization (BOE) Organizational Clearance Certificate for the corporation in connection with the project property.
Statement of Good Standing from Secretary of State of California
Current Articles of Incorporation
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Proposal Submission Process; Organizational Documentation (cont’d)
Current by-laws
A list of current officers
A corporate resolution authorizing non-profit organization signatory to sign documents
List of completed projects similar in nature to the proposed project
Last 3 years' audited financial statements
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Proposal Submission Process; NPO / Development Team
The development team consists of:
RC
NPO and project staff
Developer
Consultant
Memo of Understanding or contract that shows the shared mission of development of affordable housing restricted for the use of persons with developmental disabilities.
Independence in decision-making powers for both the RC and the NPO.
Clearly demonstrable absence of conflict of interest, be in compliance with Title 17 §§54520 & 54522.
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Proposal Submission Process; Experience of NPO
NPO must have the background experience and capacity to effectively complete the project.
Experience can come from the organization, Executive Director, Key Staff, Board of Directors, or use of a housing consultant
Completion of previous project similar to the CPP proposal.
History of effective property management of similar properties.
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Proposal Submission Process; Capacity of NPO
Understanding of housing financing.
Knowledge of local area housing resources.
Working knowledge of local housing authority and housing development programs.
Ability to network for additional funding sources to complete the funding package for the entire project.
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Conditional Approval
DDS issues a Letter of Conditional Approval to the regional center if the proposal meets the requirements contained in the Housing Guidelines.
This authorizes the regional center to implement the approved proposal
Proceed with the acquisition of property
DDS will assign a project number for tracking purposes
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Project Milestones
Milestone 1: Loan Closing and Property Acquisition
Final implementation plan, including any funding commitment letters
Evidence of site control
Evidence of property purchase, including an executed, recorded deed of trust and regulatory agreement
Evidence of application for property tax exemption to County Tax Assessor
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Project Milestones
Milestone 2: Recordation of Notice of Completion or Issuance of Certificate of Occupancy
Final Sources and Uses of Funds (budget)
Certificate of Occupancy (Notice of Completion, if rehabilitation)
Evidence of licensing application, if applicable
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Project Milestones
Milestone 3: Conversion of Construction Financing to Permanent Financing with an Approved Construction Cost Audit
Executed, long-term lease agreement (NPO and service provider)
Executed, property management agreement
Property tax exemption (if not provided sooner)
Reconciled Sources and Uses of Funds (budget)
Approved construction cost audit
Final licensing approval, if applicable
Evidence of property insurance
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Examples of CPP Projects
Single-Family Home: FNRC Bechelli Lane
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Examples of CPP Projects
CPP project of FNRC
Construction: 2,400 sq ft 4 bedroom, two bath home
Need: Accessible and open floor plan for medically fragile individuals
Leveraged Funding: City of Redding, Redevelopment Agency, Guild Mortgage
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Examples of CPP Projects
Single-Family Home: FNRC Russell Street
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Examples of CPP Projects
CPP project of FNRC Purchased: Main house is 950 sq ft 2
bedroom, 1 bath. Cottage is 600 sq ft 1 bedroom, 1 bath.
Need: Quiet and cozy environment for individuals with autism and sensory issues. Home is modified to prevent property damage.
Leveraged Funding: AccessHome
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Examples of CPP Projects
Single-Family Home: FNRC Cedars Road
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Examples of CPP Projects
CPP project of FNRC
Purchased: 1,675 sq ft 3 bedroom, 1 bath with barn on 1.2 acres
Need: Open floor plan for supervision of individuals with severe behaviors. Large yard provides buffer for neighbors.
Leveraged Funding: AccessHome
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Examples of CPP projects
Multi-Family Home: CVRC Encina Supportive Services Tri-Plex
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Encina Supportive Services Tri-Plex
CPP project of CVRC
Purchased: two 2 bedroom units and one 1 bedroom unit
Need: Non-ambulatory accessible outside and interior spaces designed for wheelchair accessibility
Leveraged Funding: Foundation Trust, City of Visalia and Tulare County Housing Authority
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For more information
To request technical assistance for CPP Housing questions, contact:
Yvonne McCuistion Tucker ChiefDDS Services and Supports Section
916-654-1571
A copy of this presentation, the Housing Guidelines, and samples of the forms used
can be found On the web, at:
http://www.dds.ca.gov/AH/CPP.cfm
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