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City of Lawton

Housing and Community Development



TO: CHDO APPLICANTS



SUBJECT: RENTAL PROJECT PROPOSAL PACKET



CONTENTS: Proposal Submission Process

Evaluation Criteria

Required Proposal Format

Proposal Checklist



The City of Lawton Housing and Community Development (HCD) seeks proposed projects from City of

Lawton-certified Community Housing Development Organizations (CHDO) with the qualifications and

capacity to develop affordable rental housing for very low- and low-income households. The HCD is

making available federal HOME Investment Partnerships (HOME) Program funds to assist in the

development of affordable rental projects. Awards of HOME Program funds are subject to the availability

of funds. Eligible projects may involve 1) acquisition and rehabilitation of existing structures, 2)

acquisition, demolition, and new construction and 3) acquisition of vacant land and new construction.



Projects determined to meet the housing needs identified as HIGH or MEDIUM priority in the City of

Lawton’s Consolidated Plan will be reviewed and evaluated relative to the “Evaluation Criteria” found in

the next section. Multiple reviewers will score each proposal, and the scores will be averaged to achieve

a final score. Subject to CHDO Program funding availability, projects determined to be the most

competitive will be recommended to the City council for assistance. Upon receipt of project proposals,

the HCD reserves the right to request additional information and/or reject any or all proposals.



CHDOs should carefully review the Consolidated Plan and the HOME Final Rule 24 CFR Part 92 prior

to submitting a project proposal. Answers to questions that arise in completing the proposal are available

by contacting the Federal Housing Programs coordinator, Timothy L. Libby at (580) 581-3347 or at

tlibby@cityof.lawton.ok.us.



PROPOSAL SUBMISSION PROCESS



Applications may be submitted any normal business day. No applications will be accepted after 11:00

am of the due date. The due date for FY 2008 application is February 22, 2008. HCD will conduct a

thorough application review and make funding recommendations based on the documentation submitted.

All applications will be considered and acted upon by the City Council. HCD at its discretion may delay

the review of applications if extenuating circumstances arise.



Project proposals must be submitted in triplicate (3 copies) in the format and in the informational

sequence indicated in the CHDO Rental Project Proposal Format, included in the final section of this

packet. Proposals must include sufficient information to allow the comprehensive review and analysis of

the proposed project. The City of Lawton will only provide the application in electronic format. Since

applications are in form format, all proposals must be electronically prepared and printed. Printing out a

blank application and typing in the information cannot be accomplished because certain information has

drop down menus. The applications are in MS Word and Excel formats. Applications that are submitted





1

by electronic means (e-mail or fax) will not be accepted. Proposals lacking information requested will be

considered incomplete and returned to the applicant.



Completed project proposals should be mailed or delivered to:



City of Lawton

Housing and Community Development

1307 SW Washington

Lawton, OK 73501



An application must be from an eligible entity and for an eligible activity. To be considered for funding,

a HOME application must satisfy all threshold requirements and meet the minimum seventy (70) scoring

requirements. The applicant is required to provide a self-graded evaluation criteria document. An

applicant applying for HOME funds should thoroughly review the application prior to submission, to

ensure that it satisfies both threshold and minimum scoring requirements.



Applicants for HOME funds are required to provide specific information, data, and support

documentation that relates directly to the proposed development. “Cut and paste” errors are the reason

for many applications’ failures.



The City Council as the approving authority may, in their discretion, after hearing the

recommendations of staff and the applicants, elect to approve or deny an application irrespective

of the point ranking or the recommendation of Staff. Accordingly, representatives of the applicant

are encouraged to attend the City Council meeting to answer any questions by Council members, and to

present evidence and argument in support of approval of the Application, if necessary. The applicant's

representative should be a responsible employee or official of the applicant. Legal counsel may also

represent the applicant.







We look forward to reviewing your project proposal and are eager to answer any questions you

encounter in completing the proposal.









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RENTAL PROJECT PROPOSAL

Community Housing Development Organization (CHDO) Program

1. Name of Project:



2. Number of Units in Project:

Addresses of Proposed Project Sites:







3. Project Type (check all that apply): Acquisition Rehabilitation New Construction

4. Percentage of the proposed project sites located in a City of Lawton designated revitalization area identified in the

Consolidated Plan. %

Revitalization Area (check all that apply): ZONE 1 DOWNTOWN LAWTON VIEW (Include map

showing activities) (Marked as Exhibit “G”)

5. Amount of HOME CHDO Funds Requested: $

a. HOME CHDO Loan ONLY $ Terms: ( years) ( % interest rate)

b. Type of Loan: Deferred Repayable Loan or Amortized Loan

6. Role of CHDO in Project (check all that apply) Owner Developer Sponsor (See HUD CPD Notice 97-11

for definitions of each)

7. CHDO Information: (If CHDO is not acting as the developer, please provide all of the information below for the

developer on a separate sheet.) If the developer involves multiple entities (partnership, joint venture, etc.), please

provide duplicative information for each, and identify the “lead” entity. (Marked as Exhibit “R”)

a. Organization Name:

b. Street Address of Organization:

c. City State Zip

d. CHDO Federal Tax Identification Number:

d. Contact Person: Title:

e. Phone Number: Fax Number: Email Address:

8. Consolidated Plan Objective (see Section VI of consolidated Plan for information)

(Check appropriate boxes in a or b below):

a. Priority 1: Produce Affordable Rental Housing High Priority: Extremely Low- and Very Low-income.

Medium Priority: Low-income

b. Priority 2: Produce Affordable Rental Housing (Large Family)

High Priority: Extremely Low- and Very Low-income Medium Priority: Low-income.

Low-income is defined as an annual income that does not exceed 80% of AMFI

Very low-income is defined as an annual income that does not exceed 50% of AMFI

Extremely Low-income is defined as an annual income that does not exceed 30% of AMFI

9. Board Authorization: Copy of Board of Directors’ resolution approving the proposed project and authorizing the

request for funding included as an attachment to application. Yes (Marked as Exhibit “A”)

The applicant certifies that the data and exhibits contained comprising this proposal are true and correct.

Unsigned/undated submissions will not be considered.

Legal Name of CHDO: Date:

Title of Authorized Official: (If other than Board President, submit Board Resolution authorizing this official).

(Marked as Exhibit “B”)



Signature of Authorized Official: __________________________________________________________________







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10. Provide a brief summary of the proposed project. Answer the six (6) questions: who, what, when, where,

why, and how much in the narrative. Provide information on why this housing project is needed (include

information from market studies, US Census data or other supporting documentation that identifies the need

for this type of housing). Provide information on how the project fills a gap in the City’s housing market as

outlined in the Consolidated Plan. Also Describe how the proposed housing project addresses the priorities,

strategies, and goals cited in the Consolidated Plan. (Limit you summary to this page)









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11. All CHDO projects shall comply with the HUD Outcome Performance Measurement Reporting

System. CHDOs should consult the CHDO Program guidelines at paragraph VI.A.14 and HUD’s guidance

on the web at www.hud.gov/offices/cpd/about/performance/index.cfm to fully understand the requirements.

Complete the following.



RENTAL ACTIVITIES PERFORMANCE MEASUREMENTS AND OUTCOMES. PLACE AN "X" NEXT TO THE CODE

OBJECTIVE AND OUTCOME FOR ACTIVITY. SELECT ONLY ONE.



OBJECTIVE OUTCOMES

Availability/Accessibility Affordability Sustainability

Decent Housing DH-1 DH-2 DH-3

Suitable Living Environment SL-1 SL-2 SL-3

Economic Development EO-1 EO-2 E0-3



PERFORMANCE INDICATORS FOR RENTAL ACTIVITIES: Place a number next to the

performance indicator based on the number of activities indicated in the application. (Number

of rental activities anticipated) Select all that apply to the activity. * INDICATES REQUIRED

INDICATORS

*Total Number of Units in activity

Number of extremely low-income (30% or less served)

*Number of very-low low-income (31% to 50% served)

*Number of affordable units (Low HOME Rent)

Number of units Section 504 accessible

Number of units occupied by elderly (62 or older)

Number of units qualified as Energy Star

*Numbers of units complying with International Energy Code Compliance (IECC)

Number of units specifically designated for chronically homeless

If applicable, *Number of rehabilitated units brought from substandard to local building codes

If applicable, *Number of rehabilitated units made lead safe (24 CFR Part 35)

*Number of units complying with the City's visitability requirement



12. Project Description (Continued) Complete this information only if applicable to the project. If there are

existing structures that will be demolished or rehabilitated, indicate addresses and the year the structure was built.

Address: Year Built: Address: Year Built:

Address: Year Built: Address: Year Built:

Address: Year Built:



13. If the project will serve families with special needs to include units that will be accessible and adaptable for

persons with mobility, sight or hearing disabilities, describe the population to be served and the outreach or referral

plan that will be used to publicize the availability of housing and/or supportive service and counseling services.









5

14. Site Control and Demonstration of Value: If the sites are known at the time this application is submitted,

include evidence of site control such as warranty deed or current earnest money contract; and provide a real estate

appraisal or current tax documentation that substantiates the value of the subject property and the after-construction

value. Tax documentation for a comparable property, recently constructed by the developer may be sufficient to

estimate after-construction value, depending upon the location and similarity of the recently developed property. If

the sites are not known, indicate the plan to select sites, when the sites will be known and when the previously

requested documentation would be able to be provided. (Marked as Exhibit “U”)









15. Zoning: If the sites are known at the time this application is submitted, include a letter from the City of

Lawton’s Planning Department verifying that the current zoning of the site for the proposed project is compatible

with the anticipated use, or include documentation verifying that a request to change current zoning has been

submitted to the Planning Department. Should the project receive funding approval, appropriate zoning must be in

place prior to executing an agreement. If funds are being provided for acquisition of single-family lots for

undetermined sites, the City of Lawton will only reimburse costs associated with the acquisition of lots for which

zoning documentation was provided prior to the acquisition. (Marked as Exhibit “V”)

16. If volunteers are used, please describe how these volunteers are utilized for the proposed activity and estimate

the amount of volunteer time and value dedicated to the identified tasks. Volunteers are defined as individuals

who perform certain services acting or done of one's own free will without valuable consideration or legal

obligation. Volunteers for this application cannot receive any type of consideration to include pay, reduced

pay, stipends, in-kind services, etc. (These figures will be incorporated into any agreement with the City of

Lawton, if funding is approved to meet the match requirements for City of Lawton HOME projects).









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Unskilled labor hours x$ per hour = $



Skilled labor ( ) hours x$ per hour = $

Skilled labor ( ) hours x$ per hour = $

Skilled labor ( ) hours x$ per hour = $

Skilled labor ( ) hours x$ per hour = $

Skilled labor ( ) hours x$ per hour = $



Total $





The HUD rate for the value of donated or voluntary unskilled labor contributed as match is $10.00 per hour. In

accordance with 24 CFR 92.220(a)(8) of the HOME regulation, the value of skilled labor or professional services is

determined by the rate the individual or entity performing the labor or service normally charges. The Agency will

ensure that proper documentation such as sign-in/sign-out sheets for volunteers to reflect time worked are used and

maintained on the site. The sign-in/sign-out sheets for the volunteers are then placed in a file for future monitoring

visits.

17. Development Team: Identify the entities anticipated to be involved in implementing the project including

lenders, attorneys, accountants, architects, engineers, general contractor, sub-contractors, homebuyer education

providers and consultants. Also, indicate if any entity is a minority or women-owned business enterprise

(MBE/WBE) or if any of the entities are also a CHDO.



Name(s) and Any Comments On Role MBE WBE Other

CHDO

Owner

Developer

Architect

Engineer

Construction Lender

Potential Mortgage

Lender

Attorney

Accountant

General Contractor

Consultant (if

applicable)

Property Management

Provider

Supportive Services

Provider

Other:

Other:

Other:









7

18. Development Schedule. Complete the table below. If the development schedule differs across several properties

to be involved in the project, provide a development schedule for each property. (Marked as Exhibit “J”)

DATES

Acquisition and/or Holding

Environmental Assessment (HCD)

Securing and Packaging Project Financing

Construction Specifications and Cost Estimates

Construction Bids

Construction Start

Anticipated Draws (List all)

End Construction

Start of Rent-up

Completion & Operation

TOTAL TIME IN MONTHS FROM START TO CLOSING MONTHS



19. Experience and Qualifications – Rental Development and Property Management

a. Is this your organization’s first rental housing project? Yes No

b. Completed projects by CHDO or other members of development team within last five years. (Complete table below.)



COMPLETED PROJECTS

Address Number New Rehabilitation Year

of Units Construction completed









c. Describe below the experience/qualifications in completing projects similar in size and scope that indicates the

developer’s ability and capacity to implement the proposed project. If this is the CHDO’s first project of this type,

please provide a detailed description of the experience of the other members of the development team with similar

projects.









d. Indicate who will provide property management services. Provide documentation to demonstrate the entity’s level

of experience and track record in operating federally funded properties of similar size. (Marked as Exhibit M)









8

20. Detailed Project Budget: Use the following table to provide a complete project budget.

DETAILED PROJECT BUDGET

Predevelopment HOME Funds Other Funds Donated Value Total Cost

Appraisal $ $ $ $

Environmental Review $ $ $ $

Engineering $ $ $ $

Survey $ $ $ $

Architectural $ $ $ $

Total Predevelopment $ $ $ $



Acquisition HOME Funds Other Funds Donated Value Total Cost

Site and/or Land $ $ $ $

Existing Structures $ $ $ $

Other: $ $ $ $

Total Acquisition $ $ $ $



Construction HOME Funds Other Funds Donated Value Total Cost

Infrastructure $ $ $ $

Site Work $ $ $ $

Demolition $ $ $ $

Foundation $ $ $ $

Rough Carpentry $ $ $ $

Siding $ $ $ $

Finish Carpentry $ $ $ $

Waterproofing/Insulation $ $ $ $

Roofing $ $ $ $

Plumbing/Hot Water $ $ $ $

HVAC $ $ $ $

Electrical $ $ $ $

Doors/Windows $ $ $ $

Drywall & Acoustical $ $ $ $

Tile Work $ $ $ $

Flooring (Carpet, etc.) $ $ $ $

Painting $ $ $ $

Cabinetry/Appliances $ $ $ $

Other: $ $ $ $

Total Construction $ $ $ $



Soft & Carrying Costs HOME Funds Other Funds Donated Value Total Cost

Permits $ $ $ $

Legal $ $ $ $

Developer’s Fee $ $ $ $

Title/Recording $ $ $ $

Construction Insurance $ $ $ $

Marketing $ $ $ $

Other: $ $ $ $

Total Soft & Carrying Costs $ $ $ $

TOTAL PROJECT BUDGET $ $ $ $









DOCUMENT ALL COSTS WHENEVER POSSIBLE.

9

PLEASE NOTE: HCD will require a copy of your overall agency budget.

21. Funds Proposal - Provide the following information to facilitate financial review of the proposed project:

a. Sources and Uses of Funds – Complete Tables A & B below, identifying all sources and uses of funds

(predevelopment, acquisition, construction, etc.) to implement the project. Also include evidence of funds committed

and/or anticipated (include financial statements, letters of commitments, etc.). All sources and uses of funds below

must be clearly indicated and sufficient evidences of funding availability and/or commitments must be included.

(Marked as Exhibit “H”)



b. Leveraging – Complete Table C below. Also include evidence of other funds leveraged by HOME funds to

implement the project such as owner equity and commitments from private and/or other public resources. (Marked

as Exhibit “I”)



c. Affordability Data – Complete Table D below. All homes assisted with CHDO funds must be affordable to

families with incomes of 80 percent or below of the area median family income. City of Lawton’s definition of

affordability is that rental housing costs, which include estimates shelter rent, renter’s insurance, and utilities for

subject properties cannot exceed 30% of monthly adjusted income. The goal for CHDO Rental projects is to provide

services to households whose income do not exceed 50% of the area median family income (AMFI) (see attached

income limits) HCD staff will use the data you provide in Table D to assess the affordability of the project for

individuals of various family sizes and income levels.

TABLE A: Sources of Funds Proposal

Sources of Funds Term Interest Rate Amount Evidence of Intended use of

Proposal Commitment Funds

Owner Equity $

$

$

Private Financing $

$

$

Other Sources (List) $

Volunteers $

Donated Material $

$

$

$

Proposed HOME Funds $

TABLE B: USE OF FUNDS SUMMARY

Uses Total Cost Cost/Unit

Predevelopment $ $

Acquisition $ $

Construction Cost $ $

Soft & Carrying Cost $ $

Other Costs $ $

Total Project Costs $ $

TABLE C: LEVERAGE SUMMARY

Total CHDO Funds Requested $

Total Other Fund $

Total Project Costs $

CHDO Program funding relative to Total Project Costs Equals:

Percent

Total CHDO funding divided by total project costs





10

TABLE D: AFFORDABILITY DATA

House Model House Model House Model House

One Two Three Model

Four

Number of Bedrooms

Square Footage

Anticipated Rent $ $ $ $

Current allowable HOME Rents $ $ $ $

Renter’s Contribution $ $ $ $

Estimated Monthly Shelter Rent $ $ $ $

Estimated Monthly Utilities $ $ $ $

Targeted Family Size

Targeted Family Income Level $ amount $ $ $ $

Targeted Family Income Level % % % % %

30% of Adjusted Monthly Income of Targeted $ $ $ $

Family

Estimated Housing Costs of Targeted Family $ $ $ $



22. Floor Plans: Sample floor plans and elevations, which include design features that are consistent with existing

neighborhood stock, must be included in the application. Submit a copy of preliminary floor plans and elevations of

homes to be constructed or rehabbed as part of the project. Number of preliminary plans submitted:

(Marked as Exhibit “S”)



23. Marketing and Renting



Describe your process and timing for marketing and renting. If your organization maintains a waiting list of

individuals interested in renting from your organization, indicate how many families are on the waiting list and how

many of those families are pre-qualified. Indicate who will be responsible for marketing and renting the units. If the

CHDO contracts with a property manager for marketing and renting, provide a history of the relationship, indicating

how many units the property manager has rented on behalf of the CHDO during what period of time.









11

24. Operating Proforma



Complete an appropriate (5, 10, 15, 20 year) Operating Pro Forma that is attached to this application, which

realistically indicates current and anticipated revenues, expenses, and debt, and that indicates operating costs are

reasonable. (Marked as Exhibit “K”)

Indicate below the operating pro forma used.

HOME assistance is less than $15,000 per unit - 5 years

HOME assistance is $15,000 to $40,000 per unit - 10 years

HOME assistance is greater than $40,000 per unit - 15 years

HOME assistance for new construction regardless of the costs – 20 years



25. Description of Supportive Services



Indicate whether supportive services will be provided to residents. If supportive services are to be provided to

residents, provide a description of the services that includes the following information:

a. A description of the supportive services to be provided to residents and/or clients.





b. The number and types of clients expected to be served annually.





c. The use of the proposed project relative to the services provided.





d. If services are not provided by the developer of the project, a description of the organization providing the

services and a memorandum of understanding outlining the relationship between the developer and service provider.

(Marked as Exhibit “N”)









26. Experience and Qualifications (Supportive Services)

If supportive services will not be provided to the residents, you need not complete Questions 26. If supportive

services will be provided, describe the developer’s experience and qualifications in providing the services described

in Question 25. Provide resumes of key personnel actively involved in the delivery of services. Resumes should

include information about certifications, licenses, years of experience and education. (Marked as Exhibit “N”)









27. Financial Information (Supportive Services)

If supportive services will not be provided to the residents, you need not complete Questions 27. If supportive

services will be provided, the developer must demonstrate financial capacity to provide support services and/or

operate a supportive services program by providing the following information as an attachment to this application:

Sources of Funds and Budget - Identify sources and amounts of funds that will be utilized to provide services to the

proposed project. Include a supportive services budget, which reflects current and anticipated funding and expenses

associated with the provision of services. (Marked as Exhibit “O”)









12

28. Neighborhood Support



Describe your effort to gain support from all neighborhood organizations within the area of the proposed project.

Include letters of support from all neighborhood organizations within the area of the proposed project with the

application. (Marked as Exhibit “L”)









29. Partnership with Other CHDOs. Describe your partnership with Other CHDOs.





Provide evidence of commitment from another certified City of Lawton CHDO to partner on the project in some

way. (Marked as Exhibit “P”)









13

30. CHDO Proceeds

The HOME Final Rule at 24 CFR 92.300(a)(2) gives the City of Lawton the option of permitting CHDOs to retain

any proceeds resulting from the CHDO’s investment of its set-aside funds or requiring the CHDO to return the

proceeds to the City of Lawton. If the City of Lawton permits the CHDO to retain proceeds, the City of Lawton

shall specify in the written agreement with the CHDO whether they are to be used for HOME-eligible or other

housing activities to benefit low-income families. (See HUD CPD Notice 97-9, Paragraph VI (A) and (B) for use of

CHDO proceeds and written agreement requirements) CHDO proceeds may only be used in the corporate limits of the

City of Lawton.



The City of Lawton determines the use of CHDO proceeds based on the needs and priorities stated in the Consolidated

Plan. In order for the City of Lawton to make a reasonable determination, indicate your recommendations for use of

proceeds:



Retain Proceeds Return Proceeds to the City of Lawton

HOME eligible activities or other housing activities to benefit low-income families (80 percent or below)



Indicate below the activity that you undertake with CHDO Proceeds and the percentage of each. For example:

Homeownership activity, homebuyer assistance, etc.

Uses of CHDO Proceeds Percentage









31. Period of Affordability: The HOME-assisted rental housing must meet the affordability requirements for not less

than the applicable period specified in 24 CFR 92.252, beginning after project completion. The per unit amount of

HOME funds and the affordability period that they trigger are described more fully in paragraphs 92.252(e) of the

regulation. The City of Lawton shall impose the resale provisions of the regulation with a “Covenant running with

the Land” to secure the period of affordability.



32. Rent and Lease Restrictions: The HOME-assisted rental housing must meet rent limitation for not less than the

applicable period of affordability specified in 24 CFR 92.252(a), additional rent limitations in 24 CFR 92.252(b),

initial rent schedule and utility allowance in 24 CFR 92.252(c), nondiscrimination against rental assistance subsidy

holders in 24 CFR 92.252(d), and the tenant income requirements in 24 CFR 92.252(h). The HOME-assisted rental

housing must meet all the tenant and participant protections requirements of 24 CFR 92.253. The lease must

conform to the applicable requirements of 24 CFR 92.209, 92.252, and 92.253



Submit a draft copy of your Lease Agreement. (Marked as Exhibit “T”)









14



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