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California Department of Housing and Community DevelopmentChris Westlake – Deputy Director for Division of Financial Assistance

Emergency Housing and Assistance Program

Capital Development(EHAPCD)

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2011-12 EHAPCD Notice Of Funding Availability (NOFA)

& Application Workshop

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Purpose This workshop will provide an overview

of the 2011-12 NOFA and

preparation of the Application.

≈The Application deadline is Friday,

5:00 p.m., Pacific Daylight Savings Time,

September 30, 2011

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EHAPCD Loan Amount & Allocations

Urban Counties – $16,000,000 maximum Population equal to or more than 200,000

Non-Urban Counties - $4,000,000 minimum Population less than 200,000

(See Attachment C in the Application to check your county status)

Minimum Loan Amount = $20,001 Maximum Loan Amount = $1,000,000

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EHAPCD Loan Terms & Lien position

3% simple interest Principal and Interest is deferred during

the term of loan EHAPCD Loan is forgiven if the terms &

conditions of the loan & regulatory agreement are met

Department expects to be in first lien position whenever possible (loan to value)

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EHAPCD Loan Term for Eligible Activities

Acquisition only – 10 year term from the date

the Regulatory Agreement is recorded

New Construction or Acquisition with Rehabilitation – 10 years*

Substantial Rehabilitation – 7 years* Loans $25,000 or more

Minor Rehabilitation – 5 years* Loans less than $25,000

*EHAPCD Loan term is from the date that either the Certificate of Occupancy is

issued, or in the case where a local jurisdiction does not issue a Certificate of

Occupancy, the date the Notice of Completion is recorded.

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Ineligible Use of EHAPCD Funds

Supplanting Inefficient or Ineffective use of EHAPCD funds Permanent Housing Project without providing overnight beds Activity and/or work completed prior to the

execution date of the Standard Agreement Recreational Equipment, Landscaping, Walls,

Fences, Parking Lots & Offsite Improvements, Non-attached appliances

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Eligible EHAPCD Applicants Local Government Agency Nonprofit Corporation

Required to have provided emergency shelter, transitional housing, and/or housing at a safe haven to homeless persons for 12 months

Applicants applying in counties listed as using the local priority should contact the Designated Local Board (DLB)

DLB list is located on Attachment D of the NOFA If applicant will be serving selected populations please

refer to Attachment E & Attachment F of the NOFA

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EHAPCD Application Preparation Start “Early” Read the NOFA, Application, regulations

and statute Use the Application Checklist Include Excel Worksheets/Attachments Call EHAPCD rep if unsure what to submit Note: Failure to provide documentation and/or

attachments may result in either the application being ineligible or not earning sufficient points for EHAPCD funding recommendation

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EHAPCD Application Completeness Application & Copy received on time

Date Stamped Applicants responsibility

Signed Authorized Resolution w/ board member vote count

Proof of Site Control Current Preliminary Title Report Broker Price Opinion (BPO) or Appraisal Sources & Uses/Financial Documentation Eligible Activities - Applicants cannot apply for additional EHAPCD

funds if they have already received an EHAPCD award for the same activity and/or scope of work previously funded

Attachments

Application Summary Form & Eligibility Questions

(Pages 5-16 of the application)

Read all instructions Sign & Date the Certification page Fill out completely & thoroughly Explain if item is not available

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Required Items Submitted With Application

Resolution (See page 22 of the Application)

Non-Profit corporation statushttp://kepler.sos.ca.govIRS Tax Exempt Status 501(c)(3) letterArticles of Incorporation & By-Laws

Policy & Condition of Stay►Services provided, Rent charged, Length of Stay

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Required Items (cont.)

Site Control (See Attachment 6 of the Application)

Must demonstrate at the time of EHAPCD Application submission to be eligible:Fee titleLegally enforceable Purchase Agreement or

Lease Option to purchaseLegally enforceable Lease or Option to Lease

Additional Required Items with Submission of the Application

Preliminary Title report 60 days old, property address, Assessor’s Parcel Number, & plat map

Appraisal, Broker’s Price Opinion or Lease Comparables

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Appraisal Requirements(See Attachment 9 of the Application)

When EHAPCD funds of $25,000 or more will be used for a New Construction and/or Rehabilitation project,

an ‘As Is’ & ‘As Completed’ unrestricted market value appraisal is required prior to loan closing

Unrestricted Market Value appraisal for all non-leased project sites, dated on or after August 15, 2011

Broker’s Price Opinion ‘As Is’ & ‘As Completed’ with at least 3 comparables A Current ‘As Is’ & ‘As Completed’ appraisal will be required

before loan close. Beware of decline in value. Appraisals must be preformed by a qualified

State licensed appraiser

Financing Sources

Attachment #10 - Permanent financing sources with commitment letters included

Attachment #11 - Detailed Cost Estimate Include total project & EHAPCD costs Signed by an estimator

Attachment #12 - Sources & Uses Totals should match Attachment #11 Line items can be edited to reflect the project

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Environmental Reports (See Attachment 14 of the Application)

Projects funded through EHAPCD are subject to CEQA (California Environmental Quality Act)

Acquisition of land and/or New Construction require a Phase I Environmental Report

Lead Base paint & Asbestos surveys are required for existing structures built prior to 1978

Provide remediation budget on Sources & Uses Environmental Reports must not be dated earlier than

5 years prior to Application submission

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New Construction/Rehabilitation Information

EHAPCD projects funded with an aggregate total loan of $25,000 or more are subject to:

EHAPCD Bid Procedure Guidelines Publicly advertise, Lowest “responsible bidder”, 3 qualified bids

Competitive bidding Payment & Performance bond AIA 101-2007 & EHAPCD Addendum State prevailing wage provision

Note: Competitive costs/bids are required if any part of labor, services and/or materials are to be donated.

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Current Condition & Property Inspection (See Attachment 15 & 16 of the Application)

Current Condition should describe the deficiencies of the project & include photos

For Acquisition and/or Rehabilitation projects, provide a Property Inspection performed by a qualified licensed general contractor, a licensed architect or by the local jurisdiction If there is no report available at time of Application

submission, insert a page stating when report will be available for EHAPCD review

Scope of Work & Schematics (See Attachment 17 & 27 in the Application)

Provide detailed information based on what is provided in Attachment 15 (Current Conditions), of how your organization intends to use EHAPCD funds

SCHEMATICS – EHAPCD is looking the floor plan that clearly shows the location of all new and/or preserved bed(s)

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Additional Information Due with Application

FINANCIAL DOCUMENTATION Attachments #19 – Project Staff Profile Attachment #21 - Accrual Statement of Operations-

Total Organization Attachment #22 - Cash Flow Statement of Operations-

Project Services/Client Social Services Only Attachment #23 - Cash Flow Statement of Operations

Facility- Physical Plant Only & Attachment #24 - Audited Financial Statements and

signed IRS Form 990s 21

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ADA Compliance

Provide acceptable evidence of ADA compliance from your local jurisdiction prior to loan closing

Any remedial work, budget for it! EHAPCD funds can be used to bring a

building into ADA compliance

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Rent Requirements

No rent charged if an emergency shelter No more than 30% of adjusted family

income or 10% of gross income for transitional housing10% Set aside is a must if

rent is charged

State Relocation (See Attachment 30 of the Application)

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Good Grief! What DO I DO Now?

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State Relocation (CONT.)

Borrowers must comply with the

Uniform Relocation Assistance Act (URA)1970 Follow procedures in the 1378 HUD Manual Relocation requirements are triggered upon

‘Initiation of Negotiation’ (ION) Relocation Plan & documentation of tenants

eligible for relocation benefits shall be provided to EHAPCD prior to loan closing

NOTE: All costs associated with relocation requirements are not eligible for reimbursement with EHAPCD funds.

Relocation Notices

EHAPCD will require copies of:General Information Notices (GINs)Eligibility Notices with claim formsComparable Units Form HUD 4006190 Day & 30 Day NoticesMove-In Notices

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Relocation COMPARABLE UNITS

Decent, Safe and Sanitary Must be currently available Same square footage or better Must be “comparable”

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LOST A TENANT?

What do you do Submit all data for verification to EHAPCD

Lost Tenant Moved Tenant Money to Tenant

Consequences for losing

tenants can be costly

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WHAT YOU CAN DO

Be timely with all notices Assist tenants with filling out forms Ensure tenants understand Call a Relocation Specialist

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EHAPCD Award Process

Application submitted Completeness review Rating & Ranking Project Reports prepared Loan & Grant Committee Director approval / Award Letters Standard Agreements prepared & sent out

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EHAPCD Rating & Ranking Criteria

Applicant Capability – 430 points max.

Impact and Effectiveness – 200 points max.

Cost Efficiency – 220 points max.

Designated Local Board or Statewide priorities – 150 points max.

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Loan and Grant Committee

Required to attend committee meeting

Further action may be needed

Project may be ‘tabled’ or

asked for additional information

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EHAPCD Timeline

NOFA issue date: August 15, 2011

Applications due: September 30, 2011

Loan & Grant Committee Meetings: Projected dates: December 2011 – January 2012

Standard Agreement will be sent electronically approximately 60 days after award notification

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EHAPCD Webpage

http://www.hcd.ca.gov/fa/ehap/ehap-capdev.html

NOFA & Application Forms & Reports EHAPCD Contact Information ‘NEW’ Interested Party – List Serve

“Subscribe to Email List”

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Any Questions?

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