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					2012 Consolidated Funding Cycle
Application Materials




                          For the following programs:
                          HOME
                          HELP
                          Housing Development Grant (Trust Fund)
                          Low Income Housing Tax Credit (LIHTC)
                          Low Income Weatherization (LIW)
                          Oregon Affordable Housing Tax Credit (OAHTC)




Oregon Housing and Community Services

725 Summer Street NE, Suite B

Salem, OR 97301-1266

(503) 986-2000,

FAX (503) 986-2020, TTY (503) 986-2100

www.ohcs.oregon.gov
TABLE OF CONTENTS
Regional Advisors to the Department (RADs) ........................................................................................... 6

RESOURCES AVAILABLE AND ALLOCATION OF FUNDS .................................................................... 7

   Planned Regional Allocations ................................................................................................................ 8

   2012 CFC Schedule .............................................................................................................................. 9

PART 1- GENERAL SUBMITTAL DOCUMENTS ................................................................................... 11

   Authorization and Acceptance Form ................................................................................................... 12

   Board of Director’s Resolution ............................................................................................................. 13

   Application and Charge Transmittal .................................................................................................... 14

   Applicant Checklist .............................................................................................................................. 15

IMPORTANT INFORMATION ABOUT THE 2012 CFC .......................................................................... 19

   OHCS Charges ................................................................................................................................... 22

   Application Submittal and Review Process ......................................................................................... 25

   How the Sections are Scored .............................................................................................................. 27

OHCS SET ASIDES ............................................................................................................................... 30

PREFERENCES..................................................................................................................................... 30

REVIEW PROCESS ............................................................................................................................... 32

POLICIES – STANDARDS AND REQUIREMENTS ............................................................................... 32

NEED FOR THE PROJECT ................................................................................................................... 42

PART 2A-THRESHOLD ......................................................................................................................... 44

   Zoning Form........................................................................................................................................ 47

   Verification of Site Control Form.......................................................................................................... 48

   Environmental Review Checklist ......................................................................................................... 49

PART 2B -THRESHOLD - Architectural .................................................................................................. 61

   Visitability Exemption Request Form ................................................................................................... 62

   Minimum or Maximum Unit Floor Area Exemption Form ..................................................................... 63

ARCHITECTURAL STANDARDS ........................................................................................................... 64

   Introduction/Overview ......................................................................................................................... 64


                                                                                i
  ARCHITECTURAL DESIGN REQUIREMENTS .................................................................................. 69

  Rehabilitation/Capital Needs Assessment ........................................................................................... 78

ATTACH ARCHITECTURAL PLANS OR REHABILITATION DOCUMENTS HERE ............................. 105

REQUEST FOR REASSIGNMENT OF TARGET POPULATION PRIORITY ........................................ 106

  Request Form for Reassignment of Target Population Priority .......................................................... 108

2012 CFC HOUSING COUNCIL REPORT INSTRUCTIONS................................................................ 110

  2012 CFC HOUSING COUNCIL REPORT ....................................................................................... 111

PART 3-APPLICANT AND PROJECT OVERVIEW .............................................................................. 115

  APPLICANT and PROJECT INFORMATION FORM ......................................................................... 117

PART 4 NARRATIVE QUESTION directions ........................................................................................ 125

  Project Narrative ............................................................................................................................... 126

PART 5 -SELF-SCORED SECTION ..................................................................................................... 127

PART 6 - RESIDENT SERVICES ......................................................................................................... 132

  Directions for Completing .................................................................................................................. 133

  Resident Service Questions .............................................................................................................. 135

PART 7- MARKET AND RENT ASSESSMENT .................................................................................... 138

  Summary of Demand for Group Home .............................................................................................. 139

  Summary Special Needs Market Assessment ................................................................................... 140

  General Market Assessment ............................................................................................................. 145

PART 8 -SPONSOR CAPACITY .......................................................................................................... 151

PART 9 -FINANCIAL FEASIBILITY AND READINESS TO PROCEED ................................................ 162

  Proposed Project Schedule ............................................................................................................... 164

  Tenant Relocation ............................................................................................................................. 175

PART 10 PRO FORMA SPREADSHEETS ........................................................................................... 178

PART 11- CONSTRUCTION COST DOCUMENTS .............................................................................. 185

PART 12 HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME) .............................................. 187

  Introduction and Requirements ......................................................................................................... 187

  HOME Award and Grant Agreement ................................................................................................. 201

  HOME Environmental Review 24 CFR Parts 50 and 58 .................................................................... 203


                                                                              ii
  Before Applying for HOME Funds ..................................................................................................... 206

  After Submitting the HOME Application ............................................................................................. 207

  Federal Labor Standards................................................................................................................... 211

  HOME Program Rents and Incomes ................................................................................................. 215

HOME APPLICATION CHECKLIST ..................................................................................................... 216

  Lead Paint Questionnaire .................................................................................................................. 223

  Form 5A ............................................................................................................................................ 224

  Form 5B ............................................................................................................................................ 225

  Form 5C ............................................................................................................................................ 226

  Form 5D ............................................................................................................................................ 227

PART 13- HELP PROGRAM ................................................................................................................ 228

PART 14 – HOUSING TRUST FUND PROGRAM ................................................................................ 230

PART 15 - LOW-INCOME HOUSING TAX CREDIT PROGRAM (LIHTC) ............................................ 233

  Metropolitan Qualified Census Tracts............................................................................................... 246

  Non-Metropolitan Qualified Census Tracts ........................................................................................ 246

  Carryover Requirement ..................................................................................................................... 249

  Placed In Service / Final Application ................................................................................................. 250

  Elections and Rental Assistance Information..................................................................................... 259

  Tax Credit Sale Information............................................................................................................... 263

  Investment Fund Information ............................................................................................................. 264

  Rehabilitation of an Existing Building ................................................................................................ 265

  Acquisition of Existing Buildings ........................................................................................................ 265

  Instructions for Filling out IRS Form 8821, Tax Information Authorization ......................................... 266

  Form 8821 ........................................................................................................................................ 267

  Request to Use 130 percent Basis Boost .......................................................................................... 268

PART 16 - LOW INCOME WEATHERIZATION PROGRAM (LIWP) ..................................................... 270

  CFC Low Income Weatherization Fund Eligibility Quiz ...................................................................... 275

  Rehabilitation Worksheet Instructions ............................................................................................... 278

  New Construction Worksheet Instructions ......................................................................................... 279


                                                                               iii
  WX Worksheet Instructions (Excel spreadsheet) ............................................................................... 280

PART 17 - OREGON AFFORDABLE HOUSING TAX CREDIT PROGRAM (OAHTC) ......................... 282

  Loan Information (OAHTC Applicants only) ..................................................................................... 285

CFC APPLICATION GENERAL REMINDERS ..................................................................................... 286




                                                                    iv
2012 Consolidated Funding Cycle Application   Page 5 of 286
REGIONAL ADVISORS TO THE DEPARTMENT (RADS)




   Northwest / Metro Regions                   Central Region
   Vince Chiotti                               Deborah Price
   1600 SW 4th Ave., Suite 109                 P.O. Box 1888
   Portland, OR 97201 Office: 503-725-2184     Bend, OR 97709 Office:541-306-3677
   E-Mail: vince.chiotti@hcs.state.or.us       E-Mail: deborah.price@hcs.state.or.us

   Mid-Willamette Valley Region                East Region
   Karen Clearwater                            Bruce Buchanan
   University of Oregon                        Eastern Oregon University
   720 E. 13th Ave., Suite 304                 233 Badgley Hall
   Eugene, OR 97401-3753 Office:541-346-8618   La Grande, OR 97850, Office: 541-980-6300
   E-Mail: karen.clearwater@hcs.state.or.us    E-Mail: bruce.buchanan@hcs.state.or.us

   Southwest Region
   Karen Chase
   SW Oregon Reg. Solutions Center
   673 Market Street
   Medford, OR 97504, Office: 541-842-2526
   E-Mail: karen.chase@hcs.state.or.us




2012 Consolidated Funding Cycle Application                                   Page 6 of 286
RESOURCES AVAILABLE AND ALLOCATION OF FU NDS
For the 2012 Consolidated Funding Cycle, OHCS will accept applications for eight programs: HELP:
HOME, Housing Development Grant (HDGP aka: Trust Fund), Low Income Housing Tax Credits
(LIHTC), Low Income Weatherization Program (LIWP), and Oregon Affordable Housing Tax Credits
(OAHTC).

HOME Program                                         $ 3,700,000*

HDGP (Trust Fund)                                    $ 5,000,000

Low Income Weatherization Program                    $    700,000

HELP                                                 $    240,000

Oregon Affordable Housing Tax Credit Program         $ 10,000,000

Low Income Housing Tax Credit Program                $ 8,000,000

Note: Approximately 50 percent of all funding sources will be allocated to Preservation Projects
with expiring Federal rental assistance contracts. (HUD, RD). In order to qualify, 25 percent of the
units must provide project-based assistance to qualify as preservation projects. Projects that do
not meet this target may qualify if HUD or Rural Development agrees to provide additional project
based units to meet or exceed the set-aside requirement.

CHDO Awards

*Approximately $1,000,000 must be awarded to certified CHDO agencies. The amount of HOME funds
advertised is pending passage of the 2012 federal budget and may be adjusted accordingly. If revised,
OHCS will notify you.

LIHTC Project Cap
For the 2012 round, the per-project tax credit cap is $820,000.

Regional Allocations
OHCS will allocate resources to two areas: urban/metro and rural. The urban/metro allocation consists of
the city and county entitlement areas in the state that receive their own allocation of HOME funds. These
include: Corvallis, Clackamas County, Eugene/Springfield, Salem/Keizer, Multnomah County, and
Washington County. The rest of the state will get the rural allocation.

OHCS has allocated 55 percent of the resources to the urban/metro region and 45 percent to the rural
areas. The allocation for each region reflects the number of households at 50 percent of median income.
OHCS has set aside a portion of the urban/metro allocation for Multnomah County.




2012 Consolidated Funding Cycle Application                                            Page 7 of 286
                                     Planned Regional Allocations




                              1
    ALLOCATION          HOME         HDGP        LIHTC        OAHTC       HELP       LIWP




   Urban/Metro                      1,750,000   2,700,000




   Multnomah                                                 10,000,000   240,000   700,000
     County                         1,000,000   1,700,000




   Rural               3,700,000    2,250,000   3,600,000




   Total Sources       3,700,000    5,000,000    8,000,000   10,000,000   240,000   700,000




2012 Consolidated Funding Cycle Application                                             Page 8 of 286
                                          2012 CFC Schedule

It is our intent to provide the best customer service possible to help applicants with the CFC Application.
We urge applicants to contact the Regional Advisor to the Department early.

January 6, 2012        The December 14, 2011 Technical Advisory, advised perspective applicants
                       to notify the Regional Advisor to the Department no later than January 6 of
                       their intent to submit a 2012 CFC Application.

January 9, 2012        Application Available on OHCS Web Site

January 9-13, 2012     OHCS will contact applicants to schedule a review team visit.

January 16, 2012       3rd Party Reports Submitted to OHCS for Evaluation Team Site Reviews.

January 26, 2012       Web-based CFC Training – 10:00 a.m. to noon – OHCS will post responses to
                       questions posed during the Webinar after the training. The comment period
                       will end on January 31, 2012.

February 3, 2012       The last day for applicant’s initial contact with RAD for Environmental
                       Checklist Review.

February 3, 2012       The last day to schedule Evaluation Team Site review. An OHCS-chosen
                       evaluation team will review new construction, LIHTC projects, projects with funding
                       sources or amounts OHCS deems necessary, and Rehabilitation/Preservation
                       projects. Applicants must submit required documentation before site reviews will
                       be scheduled. Contact the RAD for the proper documentation needed.

February 11, 2012      The last day to submit a Request Reassignment of Target Population Priority.

February 17, 2012      Environmental Checklist Review Completed by RAD

March 9, 2012          The last day to submit: Sponsor Capacity on Asset Management

March 17, 2012         The first day OHCS will accept applications

March 30, 2012         The last day OHCS will accept applications
OHCS will not consider any materials submitted or postmarked after March 30, 2012.

                       Submit complete applications to OHCS by March 30, 2012. OHCS will accept
                       applications postmarked by the deadline. The OHCS office closes at 5:00 PM.

                       Send or hand-deliver applications to:

                              Multifamily Housing Section
                              ATTN: Consolidated Funding Cycle
                              Oregon Housing and Community Services
                              725 Summer St NE, Suite B
                              Salem OR 97301-1266

                       Do not fax or email the application. Do not deliver any part of the application
                       to a branch office of OHCS or staff member working in the field.


2012 Consolidated Funding Cycle Application                                               Page 9 of 286
June 22, 2011          Target date for announcing Funding Reservations. OHCS will issue letters
                       outlining the conditions of reservation after it announces funding reservations.
                       Each applicant will get a set of deadlines for items such as programmatic,
                       financial, community support and service commitment information. OHCS will
                       compare progress against that timeline. OHCS may ask applicants who do not
                       meet deadlines to re-apply in future funding cycles.

July 13, 2011          State Housing Council – The State Housing Council will review and may approve
                       projects with grants or loans greater than $200,000 from a single funding source or
                       $400,000 from combined programs.




2012 Consolidated Funding Cycle Application                                             Page 10 of 286
PART 1- GENERAL SUBMITTAL DOCUMENT S
Overview

While the submittal documents do not have specific points assigned to each one, the
information provided is taken into consideration when scoring the application. If any required
documents are missing or incomplete, review of the application may be compromised.
Authorization and Acceptance

All applications must include the Authorization and Acceptance Form. The person(s) who
has/have authority over the terms in the Authorization and Acceptance Form, and the entity’s
owner or board chair (if applicable) must sign the form.
Board of Director’s Resolution

Many non-profit bylaws require the Board of Directors to adopt a resolution in support of a
funding application. If the organization has such a requirement, include a copy of that resolution.
If not, include a statement explaining that such a resolution is not required. OHCS has provided
a sample resolution. If the applicant uses a different format, the substituted form must include all
of the information contained in the OHCS sample.
Application and Submittal Checklist

The Application Submittal Checklist will help identify what documents the applicant must submit
and where those documents should appear in the application. Applicants should include the
completed Application Submittal Checklist with the application. Every page of the application
should appear in the same order as they appear in the checklist. Number all pages of the
application to correspond to the numbers on the checklist. The checkboxes will assist the
applicant track completed items.




2012 Consolidated Funding Cycle Application                                         Page 11 of 286
                             Authorization and Acceptance Form


  Owner/Board of Directors of:

  Project Name:

  Project Address:



By this action, the Owner/Board of Directors accepts the responsibilities and requirements of all
tax credit, grant and loan programs applied for in this Application in accordance with the
corporation's by-laws, effective this date, authorization has been given by the Owner/Board of
Directors to the following named parties to apply for programs, grants or loans in this
application: The undersigned, being duly authorized to submit this application on behalf of the
named Applicant, hereby represents and certifies that all required documents have been
submitted in this application packet, and that the information provided in this application, to the
best of his/her knowledge, is true, complete, and accurately describes the proposed project. The
undersigned further authorizes the release of project information to Oregon Housing and
Community Services ("OHCS") from all financial partners listed in the Application and authorizes
OHCS to verify any Application information, including financial information, as required to
complete its due diligence.

Primary


  Signature                                           Title


  Print Name                                          Date

Secondary


  Signature                                           Title


  Print Name                                          Date

Signed:


  Owner/Board Chair Name                              Signature


  Organization                                        Date




2012 Consolidated Funding Cycle Application                                        Page 12 of 286
                                      Board of Director’s Resolution

                                              (IF APPLICABLE)

Is a Board Resolution required to authorize this application?

If it is, include a copy of the Resolution.

                                              Sample Resolution

(Date)
(Name of sponsor), acting through its Board of Directors, at its regularly scheduled meeting, with a
quorum present, did after due deliberation, authorize (name of authorized signatory(s)) to apply to
Oregon Housing and Community Services for funding for (number) units of affordable housing in a
project to be known as (name of project). The person(s) named on the Authorization and Acceptance
Form are duly authorized to encumber, by this action, the Board of Directors accepts the responsibilities
and requirements of any tax credit and/or grant or loan programs applied for in this application for this
project. The site is located at (address and city of site).

Motion was made by _______________________ and seconded by ______________________

Signature of Board President _________________________________
        (Typed name of president)




2012 Consolidated Funding Cycle Application                                                 Page 13 of 286
                              ATTACH CHECK(S) HERE

                            Application and Charge Transmittal
Project Name:

Project Address:

Applicant Name:

Applicant Address:

Contact Name, Address:

Submit the original application, specified copies, Application Charge and this form to:

                                        Multifamily Housing Section
                                        Oregon Housing and Community Services
                                        725 Summer Street NE, Suite B
                                        Salem OR 97301-1266




   Multifamily Housing Section (MHS) Programs and CFC Application: (259)

   Minimum CFC Application charge:                                                 =      (a)   $100.00
   # units in your proposed project:                                        x 25   =      (b)   $
   Maximum CFC Application charge:
         Total of all CFC sources requested*:                       x .5% (.005)   =      (c)   $

         *includes all grant funds, amount of OAHTC requested, and equity generated
           by the LIHTC allocation.
    If the total of (b) is less than $100, you must pay the minimum charge of $100.
    If the total of (b) is more than $100, you must pay the lesser of (b) or (c).
                                                                           Amount Due:          $



   Make Checks Payable to:
   Oregon Housing and Community Services

                                                              Amount Enclosed:         $




2012 Consolidated Funding Cycle Application                                                     Page 14 of 286
                                          Applicant Checklist

Submit the application pages in the following order. Fill out this checklist with the appropriate tabs and
page numbers. (Checkboxes are for applicant’s use only.)

           Submittal Documents
Part 1:

           Application Submittal Checklist                                                 Pg.           
           Authorization and Acceptance Form                                               Pg.           
           Board of Directors’ Resolution, if applicable                                   Pg.           

           Application and Charge Transmittal Form and Payment                             Pg.           


Part 2a:   Threshold
           Certification of Zoning                                                         Pg.           

           Verification of Site Control                                                    Pg.           
           Site Control documents, including all amendments, addendums and
           extensions                                                                      Pg.           
           Verification of Submittal Documents                                             Pg.           
           OHCS Environmental Review Checklist (signed by Applicant and RAD)               Pg.           
           Vicinity Map                                                                    Pg.           
           Floodplain Map                                                                  Pg.           
           Site Map or Plan, if the project site contains wetlands                         Pg.           
           Contextual photos of site and surrounding areas                                 Pg.           
           USGS Map                                                                        Pg.           
           Physical description of any building over 50 years old                          Pg.           
           If applying for HOME funds, documentation to support Vegetation and
           Wildlife Section Responses                                                      Pg.           


Part 2b:   Threshold – Architectural
           Architectural Threshold Question                                                Pg.           
           Visitability Exemption Request Form, if applicable                              Pg.           
           Maximum Unit Floor Area/Two Bath Exemption Request Form, if applicable Pg.                    
           Architectural Plans – New Construction:
                Preliminary Site Design & Development Plan                                 Pg.           
                Preliminary Building Exterior Elevations                                   Pg.           
                Preliminary Building Floor Plans                                           Pg.           
                Preliminary Building Sections, if applicable                               Pg.           
                Typical Unit, Showing Furniture Layout Plan                                Pg.           


 2012 Consolidated Funding Cycle Application                                          Page 15 of 286
          Architectural Rehabilitation:
               Rehabilitation/Capital Needs Assessment                                    Pg.         
               Rehabilitation Scope of Work                                               Pg.         
               Pest and Dry Rot                                                           Pg.         
               Roof Inspection Report                                                     Pg.         

          All Projects:
               List of Codes and Regulations, if applicable to the Scope of Work          Pg.         
               Architect’s Letter of Intent, if applicable                                Pg.         

          Optional Documents:
               Phase 1 Executive Summary, if completed                                    Pg.         
               Soils Report Summary, if completed                                         Pg.         

Part 3:   Applicant and Project Information
          Applicant and Project Information                                               Pg.         
          2012 CFC Housing Council Report                                                 Pg.         


Part 4:   Narrative Question
          Narrative Question                                                              Pg.         


Part 5:   Self-Scored Section

          Excel Spreadsheet Self-Scored Section                                           Pg.         
          “Needs” Scoring Worksheet                                                       Pg.         
          Green building Worksheet                                                        Pg.         
          OHCS Path Worksheet, if applicable                                              Pg.         

          Request for Reassignment of Target Population Priority, if applicable           Pg.         
          Two to five supportive letters from local/state/federal governmental entities
          or officials, if the applicant claims points for governmental support?          Pg.         
          Two to five supportive letters from local community members or
          associations, if the applicant claims points for local support                  Pg.         
          Letters of committed funding, if the applicant claims points for funding
          commitments                                                                     Pg.         



Part 6:   Resident Services

          Resident Services Description                                                   Pg.         




 2012 Consolidated Funding Cycle Application                                         Page 16 of 286
Part 7:    Market and Rent Assessment
           Group Home Demand Analysis                                                     Pg.         
           Special Needs Demand Analysis                                                  Pg.         
           Special Needs Market Assessment Excel Workbook – Page 1                        Pg.         
           General Population Demand Analysis                                             Pg.         
           Third Party Market Analysis Executive Summary                                  Pg.         
           Third Party Market Analysis                                  (Attach as separate document)


Part 8:    Sponsor Capacity
           Sponsor Capacity                                                               Pg.         
           Asset Management Information Request Form                                      Pg.         

Part 9:    Financial Feasibility and Readiness to Proceed
           Project Schedule                                                               Pg.         
           Financial Assumptions                                                          Pg.         
           Schedule of the maximum rental rates allowed by the rental subsidy (i.e.
           HUD or RD) for any project-based rental assistance, if applicable              Pg.         
           Schedule of Real Estate Holdings                                               Pg.         
           30 Year Replacement Reserve Schedule                                           Pg.         
           Data Sheet and Comparables Report, if applicable                               Pg.         
           Preservation and Expiring Use Status, if applicable                            Pg.         
           Existing Tenant Survey, if existing structure is occupied                      Pg.         
           Tenant Relocation                                                              Pg.         

Part 10:   Pro Forma Spreadsheets
           Excel Pro Forma                                                                Pg.         
           Utility Allowance Verification                                                 Pg.         

Part 11:   Construction Cost Documents
           Contractor’s construction cost itemization or applicant’s cost estimate
           document OR                                                                    Pg.         
           Rehabilitation itemized costs or cost estimate document                        Pg.         

Part 12:   Supplemental HOME Forms
           HOME Application Checklist                                                     Pg.         
           Architect Certification – meets Section 504 accessibility                      Pg.         
           Copies of URA General Information Notices to residential and commercial
           tenants (forms can be located in Section 6: HOME Program Description &
           Requirements)                                                           Pg.                


           Notice 5A or 5B and 5D signed by the seller                                    Pg.         


 2012 Consolidated Funding Cycle Application                                         Page 17 of 286
           Tenant Participation Plan, if sponsor is a CHDO                             Pg.         

           Transition Plan, if there are transitional housing units                    Pg.         
           Lead Disclosure Notices, testing or assessment reports, if housing built
           pre-1978)                                                                   Pg.         
           Consolidated Plan Consistency statement (if project is located in Medford
           or Ashland jurisdiction’s Consolidated Plan)                                Pg.         
           For Special Needs populations, a letter from Oregon Dept. of Human
           Services agreeing to the HOME program requirements. (see discussion
           under Special Needs in Section 6: HOME Program Description and
           Requirements)                                                               Pg.         

Part 13:   Supplemental Low Income Housing Tax Credit Forms
           Elections and Rental Assistance Information                                 Pg.         
           Tax Credit Sale Information                                                 Pg.         
           Rehabilitation of an Existing Building                                      Pg.         
           Form 8821                                                                   Pg.         
           Request To Use 130 percent Basis Boost Form                                 Pg.         
           Letter of Intent from equity investor                                       Pg.         

Part 14:   Supplemental Low Income Weatherization Forms
           Energy Efficiency Plans – Narrative                                         Pg.         
           Energy Efficiency Plans – Rehabilitation Worksheet                          Pg.         
           Energy Efficiency Plans – Rehabilitation Calculator Page                    Pg.         
           Energy Efficiency Plans – New Construction Worksheet                        Pg.         
           Energy Efficiency Plans – New Construction Calculator Page                  Pg.         


Part 15:   Supplemental Oregon Affordable Housing Tax Credit Forms
           Loan Information                                                            Pg.         
           Letter of interest, intent or commitment from permanent lender, if received Pg.         




 2012 Consolidated Funding Cycle Application                                      Page 18 of 286
IMPORTANT INFORM ATIO N ABOUT THE 2012 CFC
CFC Training for 2012
OHCS will conduct one web-based training session on the 2012 CFC application. The session
will cover changes and new requirements in the application, and provide an opportunity to ask
questions. Contact the RAD for the project area or Roz Barnes at roz.barnes@hcs.state.or.us or
503-986-2049 with any concerns or questions. It is scheduled for:

       Thursday, January 26, 2012 10:00 a.m.–12:00 p.m.
Maximum Trust Fund Awards

The maximum award per application of HDGP will not exceed $500,000 on non LIHTC projects.
The maximum LIHTC project grant award is $200,000 with a maximum of $300,000 in a
predevelopment loan due at construction closing.
Construction Monitoring Fee

OHCS will monitor construction activities on projects funded in the 2012 CFC. OHCS (at its
discretion) may exempt Group Homes, projects with less than four units, or combined $300,000
or less in funding sources from this requirement. Applicants should include a $2,200 line item in
their budget to cover the Construction Monitoring Fee.
Best Practices Construction Standards

OHCS has published Best Practices for Construction Standards. The best practices outline
standards for new construction and rehabilitation projects to help applicants meet OHCS’s 30-
year sustainability standard. OCHS will work with successful applicants on any unanticipated
aspect of the new standards. Applicants receiving OHCS resources must meet the standards.
Progress Reports

Recipients of all CFC funds must submit monthly progress report by the 10th of the month.

OHCS format must be used and the form can be found at:
http://www.ohcs.oregon.gov/OHCS/HRS_Reservation_Letter_Attach.shtml
Retaining of Funds

Ten percent of the largest OHCS funding award will be retained until the project is completed
and until all the final documentation and requirements are submitted. The exception is if the
project has HOME funds, then it is the final 10 percent of the HOME.

These include but may not be limited to:

      All HOME program requirements submitted and approved by OHCS;
      LIHTC Final Application submitted and approved by OHCS;
      Recording of all OHCS recorded documents;
      Davis Bacon final reporting documents if Davis Bacon is being overseen by OHCS;
      OAHTC Certification signed and returned to OHCS.


2012 Consolidated Funding Cycle Application                                      Page 19 of 286
                                   Evaluation Team Reviews

Teams of qualified industry experts will review projects that applicants plan to submit for CFC
funding. These evaluation teams will visit the proposed sites, review documents, and provide
feedback to assist OHCS in ranking the applications.

The RADS will share any recommendations or observations of the team.

When submitting the application, applicants must respond to the team’s findings and
recommendations.

OHCS will consider the results of the third-party review when making funding recommendations
to the OHCS Director.

Early Deadlines

No later than February 3, 2012 every applicant must schedule an evaluation team review
with the RAD for the project area.

The table on the following page describes the types of reviews and documents required prior to
the review.




2012 Consolidated Funding Cycle Application                                       Page 20 of 286
    Project Type          Documents                            Notes                        Nature of the Review

    Non-                    Design drawings (if available)    OHCS will determine          The team will evaluate:
    Preservation            Site design (if available)        which applications will
                            All site maps including flood,                                    the location of the development relative to the
    and other                                                  require an on-site review.       population served
                             survey (if available), vicinity
    Rehabilitation           (with medical, schools, public                                    the appropriateness of the design for the site
    Projects                 transportation, etc. clearly                                       and neighborhood, based on available plans.
                             marked appropriate for the        Individuals outside the
                             targeted population)              applicant and evaluation
                            Preliminary title report with     team are not required.        The applicant and the RAD will meet with the
                             exceptions, easements and
                                                                                             team to evaluate how the project fits within the
                             plat map
                            Executive summary for Geo-                                      community meets the needs of the identified
                             tech and Phase I (if available)   Plan one hour for the site    population.
                                                               review.


    Preservation/         The Following, (if Available):       Small projects (four or      The external team will evaluate
    Non-                                                       fewer units OR less than
                           Capital Needs Assessment                                           the project’s capital needs
    Preservation            (CNA) Report                       $500,000) can submit a          the scope of the proposed rehabilitation
    LIHTC Rehab            Scope of Rehabilitation            report from a certified         likelihood that the proposed project will
    Submittal              Estimated Uses of Funding          home inspector in place of       achieve OHCS’ standard for long term viability
                            Budget                             the CNA.




2012 Consolidated Funding Cycle Application                                        Page 21 of 286
                                         OHCS Charges

Evaluating the Fees and Charges:
   1.   Application Fee - See chart below and Charge Transmittal on Page 14.
   2. The award of any resources beyond what is needed as a result of a reduced pay-in rate
      under the LIHTC Program will be imposed the charge associated with increased project
      costs or loss of a funding source.

   3. OHCS may allow an exchange of one funding source for another. If there is no net
      increase of funds, there will be no charge to the applicant. However, if any exchange
      results in the award of additional LIHTC, OHCS will charge the standard tax credit
      reservation charge for the additional credits.

   4. To determine the amount of lost or additional equity:
          Subtract the estimated equity submitted in the CFC application from the total
             revised estimated equity to derive the remaining equity.
          If remaining equity is less than or equal to zero, the amount of credits requested
             is subject solely to the CFC application charge.
          If the remaining equity is greater than zero, that amount is considered an
             increase in funding and subject to the charges as outlined in that section.

Carefully review the following chart.

  Consolidated                 Charge (All CFC Related Charges Submit with Application)
  Funding Cycle
                               Make checks payable to “Oregon Housing and Community
                                               Services Department.”

                             The lesser of $25.00 per unit or 5% of the total funds requested.
  Application Charges
                             Minimum charge is $100

                             Note: Group Homes with five or fewer bedrooms are considered
                             one (1) unit




2012 Consolidated Funding Cycle Application                                       Page 22 of 286
  Request for additional     The lesser of $25 per unit or .5 percent of the additional funds
  resources to fill a gap    requested. Minimum charge is $100. (Group homes with five or
  caused by a reduction      fewer bedrooms are one unit.)
  in federal tax credit
  pricing.

  Request for additional     Request for any CFC funding sources other than LIHTC and
  resources to fill a gap    OAHTC: 1 percent of the gross amount of the funds requested.
  caused by the loss of a
                             Request for 4 percent and 9 percent LIHTC: 1 percent of the
  funding source (not tax
                             estimated equity to be generated by the additional tax credits.
  credit pricing) or by
  increased project costs

  OAHTC                      Request for OAHTC: $25 per unit or .5 percent of additional
                             OAHTC requested. Minimum charge is $100.

  4 percent and 9            5.5 percent of annual tax credit amount for projects with 30 units or
  percent LIHTC              less; 6.5 percent of annual tax credit amount for projects with over
  Reservation Charge         30 units.

  9 percent LIHTC            $1,000, plus $200 per business day for each day late. Also $100
  Carryover Application      per hour for re-evaluation.
  received after
  December 1 deadline.

  4 percent and 9            $1,000, plus $100 per month for each month late. Also $100 per
  percent LIHTC Final        hour for re-evaluation.
  Application received
  more than six months
  after placed In service
  date.

  LIHTC Monitoring           $35 per unit per year for first 15 years.
  Charge (9 percent) and
                             $25 per unit per year for last 15 years.
  4 percent credit
  projects that are non-
  Risk Sharing and non-
  conduit.




2012 Consolidated Funding Cycle Application                                        Page 23 of 286
OHCS considered partner comments on the proposed schedule of charges last year. OHCS
presented a revised proposal to the State Housing Council at the January 21, 2011 meeting.
The following table describes the new and revised charges Council approved.



  Post Reservation                                      Charge
  Charges

  (If approved for
  funding)

  Recipient Charge                 Assessed on the cumulative total of CFC Resources

                                               <$300,000 = $1,000 Charge

                                               >$300,000 = $2,000 Charge

                                               w/LIHTC =   $2,500 Charge

  Farmworker Tax                     $200 for each development that receives credits
  Credit Program

  Document                                              Charge
  Preparation Charge

  Per Recorded               $100 (normally assessed by OHCS when program documents
  Document                                     are recorded in escrow)



The RAD can answer any questions or provide more information about charges. Applicants
must account for these charges when they develop the pro forma budget.

Charges are non-refundable but successful applicants can request grant resources to
cover the costs. The Application Fee is non-reimbursable with OHCS grant resources
but can be reimbursed with other project funding.




2012 Consolidated Funding Cycle Application                                    Page 24 of 286
                         Application Submittal and Review Process

Initial OHCS Contact, Project Discussion and Site Review

Contact the Regional Advisor to the Department (RAD) serving the region where the proposed
project is located. Arrange for an appointment to discuss the project, get technical assistance,
and schedule a site visit.

Do not wait. The RAD may not be able to help applicants who request technical assistance too
close to the application deadline. Refer to the CFC time schedule for all application cut-off
dates.

OHCS requires applicants to meet with a RAD for a site review. Before the RAD site visit,
complete the Environmental Review Checklist. In addition to the environmental assessment
forms, applicants must provide an initial site plan. The RAD will review these items during the
site review.

The RAD visit is an opportunity to determine if an applicant should proceed with the application.
When the site or the site plan do not meet OHCS application requirements, the RAD may refuse
to allow the application to continue to a CFC review. OHCS expects this will affect a small
percentage of possible applications and will save such applicants from additional expenses.
Narrative on Forms and Responses

Applicants should complete all forms and respond to all questions, unless the form includes
other directions. OHCS has clearly identified those forms that relate to specific programs (e.g.,
“HOME ONLY”). Do not refer to supplemental information when responding to the application
questions. Responses should address only the items requested. Many questions have a page
limit for the responses. Follow the directions carefully. Do not duplicate information from one
section to another.

OHCS provides the application in Microsoft Word and Excel on its website at:
www.ohcs.oregon.gov/OHCS/HRS_CFC_Overview.shtml. OHCS will not accept applications
with handwritten responses or outdated forms (i.e. CFC application materials from previous
years).

Some programs require applicants to complete forms for specific program requirements. Submit
the required forms for every OHCS funding source being requested. Before completing the
forms, thoroughly read the program requirements pertaining to the particular resource. It is
imperative to understand the program requirements when integrating each source into the
project development.




2012 Consolidated Funding Cycle Application                                        Page 25 of 286
What to Include with the Application

Applications should include ONLY the documents listed on the Application Submittal Checklist
plus any Program-related documents and in the order they appear on the Checklist. OHCS will
not review documents it does not require.

For LIHTC requests, submit two originals of the signed third party market study. Only the
Executive Summary of any report/study should be included with the application. If the project
receives funding, OHCS may request the full report.
Application Format / Submission

Submit one original and four (4) full copies. So not bind or staple the application sets. Secure
each set with a binder clip or rubber band.

Use only 8 ½ x 11” paper.

Use only 11 or 12 pt. type font.

Label each packet as “original” or “copy.”

Attach payment of all application charges to the transmittal form and place on top of the original
application packet. The application charge is non-refundable and non-reimbursable and should
not appear as a line item in the pro forma.

Submit one electronic version of the complete application on a CD. Save application materials in
Microsoft Word or Excel to the CD. Save third-party reports in a Portable Document Format
(PDF).

OHCS will not accept pre-punched (drilled) paper.

OHCS will not accept emailed or faxed applications.

Applicants should refer to the dates outlined in the application for the due date.

OHCS will not accept missing application materials after the deadline. Careful review of the
application is critical before submission. OHCS could reject an application at the Threshold
Review for missing documentation. Such an application could also receive a low score.

NOTE: Any material submitted to OHCS becomes its property.
OHCS Considerations

As federal, state and local resources become more difficult to obtain, readiness to proceed and
project appropriateness become increasingly important. OHCS seeks to fund projects that are in
the highest possible state of readiness to address local needs and market conditions. Proposals
must meet OHCS’ general requirements and meet all conditions of the requested funding
source. Responses to the application must address the need, market, site appropriateness,
resident services, community support, organizational capacity, and proposed financing plan of
the project.
When OHCS May Not Review An Application

OHCS, at its discretion, may choose not to review an application for the following reasons:

      The proposed site is near environmental hazards or in an area unsuitable for housing;


2012 Consolidated Funding Cycle Application                                          Page 26 of 286
      The site has environmental issues that would prohibit investment of HOME funds; (For
       example, a site may be adjacent to a rail line with frequent trains.)
      The applicant is not proceeding or meeting the schedule on OHCS-funded project(s)
       currently under development;
      The applicant is out of compliance with the Asset and Property Management Section on
       previously funded projects;
      The application is not complete;
      The application does not pass threshold requirements;
      Applicants have not met the architectural requirements in the application.

                                 How the Sections are Scored

Narrative Question

This does not receive points but reviewers will consider this information when scoring other
sections of the application. If the narrative is missing information, or includes information
inconsistent with other sections of the application, the discrepancy will affect the reviewer’s
score. Errors or discrepancies within the application may result in a lowered score and/or cause
the inclusion of reservation condition(s) if OHCS awards funding.
Resident Services (10 points)

OHCS will score the Resident Services Section on the following:
      Description of target population (employment, education, financial, demographics, etc.)
       and their needs.
      Services appropriate to meet the needs of the target population.
      Description of proposed services including projected results in measurable terms.
      Extent of collaboration and coordination of ongoing services after project completion
Self-Scored Section (100 points)
The Self-Scored Section measures readiness to proceed and compatibility with OHCS priorities.
It allows the applicant to know how the application ranks on those criteria before submitting the
application for consideration.

The application must include materials to support the self-scoring portion. During the scoring
process, the reviewers will review these materials. If OHCS identifies an error, points will be
adjusted. This adjustment could change the final score and ranking. The Self-Scored section
should be complete and all required back-up materials included.
Market and Rent Assessment (25 points)

OHCS will base the Market and Rent Assessment Section score on the following:
      Market area description.
      Analysis of market trends.
      Evaluation and understanding of the local affordable housing market need
      Measurable differences in proposed rents and market rents (preference for a minimum
       of 10 percent below market rents).
      Compliance with the Consolidated Plan or local plans.
      Impact on existing affordable housing developments.
      Inclusion of complete and accurate independent materials.




2012 Consolidated Funding Cycle Application                                        Page 27 of 286
Sponsor Capacity (25 points)

OHCS will base the Sponsor Capacity Section score on the following:
      Sponsor’s experience developing and owning housing
      Development team’s experience developing housing
      Readiness of sponsor to develop and maintain the project
      APM review of past performance with ongoing OHCS projects

Financial Feasibility and Readiness to Proceed (30 Points)

OHCS will base the Financial Feasibility and Readiness to Proceed section on the following:

      Level of commitment of other resources.
      Status of communication with HUD or RD.
      Level of planning for tenant relocation.
      Appropriateness of the project for the targeted population(s).
      Need for OHCS funding.
      Reasonableness of the funding request and demonstrated need of program resources.
      Reasonableness of budget assumptions.
      Reasonableness of construction and development costs for the construction type.
      Reasonableness of developer fee.
      Accuracy and completeness of required cost estimation materials.
Pro Forma Spreadsheets (Scored with other sections)
   OHCS will base the pro forma score on the following:
      Development and operating budgets reflect the project as represented in the application.
      Eligible uses of resources.
      Project’s long-term financial viability meets department’s underwriting requirements.
      Financial data and methodology are acceptable and explained in the application.
Construction Cost Documents (Scored with other sections)
   OHCS does not score this section. However, it uses these documents in the review of 1) the
   Self-Scored Section, 2) Architectural Standards in the Threshold Section, and 3) review of
   construction costs indicated on the development budget in relation to the scope of work and
   project costs.
      Documents should reflect the costs represented in the application
      Documents should be a complete, accurate and up-to-date indicator of the proposed
       project costs.
Compliance with Programmatic Requirements (10 Points)
   OHCS will base the compliance with programmatic requirements score on the following:
      Period of affordability is at least 60 years.
      Tenant incomes and rent levels meet program requirements.
      Meeting of Federally or state-mandated program requirements.
      Funds are slated for eligible costs.
      Completeness and accuracy of supplemental forms and required independent materials.
      Compatibility of multiple funding sources in project.

2012 Consolidated Funding Cycle Application                                      Page 28 of 286
Affordable Rental Housing

OHCS seeks to reduce housing insecurity and homelessness in Oregon by reducing the
percentage of low and very low income Oregon households that spend more than 30 percent of
their income on housing.

In developing these performance measures, OHCS considered the following things:

     Historical allocation of grant and tax credit resources to projects serving very low and low-
      income households.
     The increase in Low Income Housing Tax Credits and the reduction of other subsidies
      that might result in more units serving households at 60 percent of median income.

If OHCS meets its goals, the percentage of housing units developed on a statewide basis
through the CFC and other processes will meet the following criteria:

     10 percent of the units provide affordable rents for persons 30 percent of median income
      or below.
     13 percent of the units provide affordable rents for persons 31-40 percent of median
      income.
     35 percent of the units provide affordable rents for persons 41-50 percent of median
      income.
     35 percent of the units provide affordable rents for persons 51-60 percent of median
      income.

Special Needs Housing

OHCS seeks to decrease the percentage of Oregonians with special needs that do not have
permanent housing and to provide housing and access to services to increase their self-
sufficiency. The OHCS goal is that 50 percent of the housing units developed on a statewide
basis through grants, tax credits, and tax-exempt bond financed programs serve persons with
special needs, such as people with disabilities, victims of domestic violence, the elderly,
released offenders, farm workers, individuals and people experiencing homelessness, persons
with mental illness, and persons in recovery from drug and alcohol addictions.




2012 Consolidated Funding Cycle Application                                        Page 29 of 286
OHCS SET ASIDES
OHCS offers a 50 percent set aside of various funding sources available in the current CFC. At
least 25 percent of the project units must provide housing for the targeted population for the
application to qualify for the set-aside allocation.

For the 2012 CFC, OHCS will prioritize preservation of housing with existing subsidies and set
aside 50 percent of the funding for preservation.
PRESERVATION

OHCS defines preservation projects as:

Federally financed existing projects where at least 25 percent of the existing units have project-
based rental assistance. Developments participating in, but not limited to the following
programs, are considered federally financed: HUD and USDA Rural Development;

Preservation projects demonstrate the ability to meet the 25 percent PBA if, at completion,
documentation from the Rental Assistance issuing agency shows the number of units with
Rental Assistance is at least 25 percent of the project units.

Projects participating in programs that include the replacement of existing affordable housing
units including the HOPE VI program if 25 percent of the units have project-based assistance; or


PREFERENCES
OHCS will give preference to:

      Projects serving people experiencing homelessness or with a high risk of becoming
       homeless.
      Projects that include resident services appropriate to the tenant population and will
       enhance resident self-sufficiency and the long-term viability
      For developments of 20 or more units, community space designated for resident
       services is an appropriate development cost item.
      Projects with life, health, and safety issues with an urgent need for repair or assistance
       to remain operational when the applicant can demonstrate that the investment will
       preserve existing affordable housing. This does not include projects with known or
       continued issues not addressed by owners or issues resulting from improper continued
       maintenance.
      While OHCS has not set more restrictive income eligibility requirements than its
       programs require, it does have a preference for projects which serve unmet need of the
       low/lowest income populations identified in the applicant’s market research.
      Unit designs that meet the needs of the residents and project sites that are in locations
       close to employment, businesses and appropriate services.




2012 Consolidated Funding Cycle Application                                        Page 30 of 286
      The proposed affordable rents are a minimum of 10 percent below and preferably 20
       percent below local market rents. Exceptions can be made for communities that lack
       new construction, have low vacancy rates and document a need for standard housing.
       The preference for below market rents is not intended to preclude the development of
       mixed-income housing.
      Unit designs that meet the needs of the residents and project sites in locations close to
       employment, businesses and applicable tenant services.
      Regardless of the OHCS funding source requested, OHCS discourages permanent or
       temporary displacement of tenants (residential or commercial/retail), who currently
       occupy the proposed project.


Tenant Income Qualifications

OHCS shall, when awarding public funds for low-income rental housing, give a substantial
preference to housing providers who do not require applying tenants to have net income greater
than two times the rent. For purposes of implementation, net income is defined as that portion of
a household’s income remaining after standard employee deductions (e.g. taxes and SS
payments). This definition is not the same as adjusted gross incomes housing authorities or
Section 8 programs use. Implement the income qualification practice for the full period of
affordability. Applicants that select this option will receive eight points in the Self-Scored section.

Each of the grant and tax credit programs administered by OHCS features income eligibility
requirements.
Community Support

Community support can help to reduce the “NIMBY” issues that can face an affordable housing
project. The Self-Scored Section gives the applicant an opportunity to earn points for providing
written support letters from the community.
Mass Transit and Urban Growth

In order to make use of the existing transportation infrastructure and minimize development
beyond urban growth boundaries, OHCS encourages applicants of affordable housing projects
in urban areas to take advantage of "infill" sites and development opportunities that are located
within one quarter mile of a public transportation line. Communities affected by this policy will be
within the boundary of an existing municipal transit district and have transit service.
Site Preferences

Applicants are encouraged to locate sites which:

      Provide tenants with ready access to transportation, commercial and social services.
      Are not located adjacent to freeways, railroads, industrial or other noise generators and
       hazards such as potentially explosive storage tanks.
      Avoid excess developmental costs due to slope, terrain, drainage, wetlands, floodplains
       or other issues.
      Do not have excessive fill material (unless documentation is provided on engineered soil
       compaction).



2012 Consolidated Funding Cycle Application                                           Page 31 of 286
Project Merit and Feasibility

OHCS will reserve funds based on the project overall merit and feasibility. OHCS reserves the
right to adjust the amount of funding, if appropriate, and to negotiate modifications to the
proposed plan and budget.
Tiebreaker Policy

OHCS has a standardized tiebreaker policy when two or more projects rank the same and
funding sources are too limited to fund all projects. OHCS will consider the following for the tie-
breaker (not in priority order):

     Amount of OHCS funding requested compared to the amount of resources remaining in
      the funding round;
     Number of units having project-based rental subsidy;
     Percentage of OHCS resources per square foot (preference for projects that bring in
      other resources and show more leverage), and
     Priority of Need for Project.

For information about OHCS’ preferences and policies that apply to the LIHTC Program, consult
the state’s Qualified Allocation Plan.


REVIEW PROCESS
Reviewer’s rankings, evaluation team recommendations and conditions are presented to OHCS
Executive Team for final review and funding recommendations to the OHCS Director. CFC
requests can be substituted, reduced or increased by OHCS Senior Management to maximize
the number to receive reservations. OHCS reserves the right to reject projects which otherwise
may have received a conditional reservation but are deficient in one or more areas of ranking.
Examples might include income and expense statements that are either unrealistic or do not
demonstrate the need for public funding. OHCS may reject applications for facilities or projects
which don’t meet the definition of housing.

OHCS will notify all applicants of award or denial.

The State Housing Council must approve projects with grants or loans over $200,000 from any
single program or $400,000 combined programs before OHCS can reserve funds.

Each RAD will meet with the reviewers to examine why individual applications did not compete
well enough to be funded. The RAD will use this information to aid the applicant in improving
future applications. RADs will meet with the applicants of unfunded applications as soon as
possible after Housing Council and OHCS publishes the award notice.

The OHCS Director will make the final determination for the funded projects based on staff
review and recommendations.


POLICIES – STANDARDS AND REQU IREMENTS
The following OHCS policies, standards and requirements apply to all projects receiving CFC
resources. These policies define OHCS’ expectations during construction and throughout the
period of affordability.



2012 Consolidated Funding Cycle Application                                         Page 32 of 286
Period of Affordability



         New to 2012, funded CFC projects must provide a sixty year affordability period.
OHCS presented the proposal to the state Housing Council on February 18, 2011 and the
motion was passed. The background and write-up can be found on the OHCS Website under
Housing Council Meeting.
Revocation of a Reservation

OHCS may revoke the reservation if a market assessment does not support the proposed
development or the market information provided with the application. OHCS may also revoke a
reservation in other instances, including:

   the applicant does not meet development milestones on time;
   the application misrepresented the project or included false information;
   after application, the purpose or scope of the project is substantially changed; or
   The applicant changes funding sources without prior approval from OHCS.
  OHCS may reallocate revoked funds to a previously submitted project. Should a funding
  reservation be revoked, the applicant may re-apply and re-compete for financing in a future
  CFC cycle.

Readiness to Proceed

Because of the oversubscription of available funding through the CFC process, OHCS must
consider projects that make the best use of limited resources. OHCS will examine the project’s
readiness to proceed. OHCS’ goal is that the project be ready to start construction no later than
one year from CFC award. Some circumstances may slow a project’s development. Applicants
should explain such circumstances in the application.
Purchase of Department Financed Properties with HUD Section 8

Before submitting a CFC application, any applicant who proposes to acquire and rehabilitate a
project that currently has an OHCS mortgage and project-based Section 8 contract, must:

     Notify the RAD of the intent to purchase the property;
     Submit a letter to OHCS, signed by seller and buyer, requesting approval to pre-pay the
      existing mortgage;
     Determine the pre-payment and transfer charges 60 – 90 days prior to CFC application
      deadline. Include the estimated closing date in the letter; and
     Notify the OHCS Multifamily Section of the purchase intentions.
Department of State Lands (DSL) Wetlands Policy and Review

DSL will review all applications awarded funding for the possibility of regulated wetlands on the
site. OHCS will submit documents to DSL. If DSL determines wetlands are present or likely to
be present, applicants must get a qualified wetland consultant’s wetland verification and
boundary delineation for submission, review and approval by DSL. DSL may impose additional
site or design requirements for the project.




2012 Consolidated Funding Cycle Application                                       Page 33 of 286
Applicants must provide tax lot numbers for the OHCS submission to DSL. OHCS has provided
a space on the Environmental Review Checklist for this information. Include the tax lot number
for every parcel of land in the project. A failure to provide the tax lot number(s) will delay the
DSL review process.
Final Application for Non-LIHTC or Non-HOME Projects
All non-LIHTC and HOME recipients must complete Reservation Letter and Program
requirements to the satisfaction of OHCS by Final Application. The Final Application must be
submitted no later than 3 months after C of O or in the case of acquisition rehabilitation when
the project is substantially complete The following items should be included:
     Final Certified Sources and Uses
     Final Income and Expense pages from pro forma
     Applicant and Project Information from Application and updated if any changes have
        occurred since submitting the CFC Application t
     Final Project Schedule
     Final Utility Allowance
     Notice of Substantial Completion or C of O

Applicants need to allow a minimum of 30 days for the OHCS review of the Final Application.
Expectations Training

All sponsors of funded projects must participate in training on OHCS’ expectations. OHCS
encourages a board representative and the agency director and/or housing developer to attend.
Attendance is a condition of reservation. OHCS will inform awardees of the dates and times of
these training in its Conditions of Funding letter.
Availability of Funds

All materials required in the Reservation Letter must be submitted and accepted by OHCS
before the release of funds. An exception for up to 50 percent of the Housing Development
Grant Program, HELP and General Housing Account Program awards may be made. An
exception could be made if the request for funds were to complete specific OHCS conditions
from the Reservation Letter. Applicants must submit a request to the loan officer to request this
type of reimbursement.
Changes to Scope of Project

OHCS bases its funding awards upon reasonable project concepts. Applicants must consult
OHCS if they want to make changes in the project’s concept during or after award.

NOTE: LIHTC requirements do not allow a site change after carryover.

Changes in the scope of the project, substantial changes in ownership, the number of units,
income level, population to be served, or the amount of OHCS funding requested, require
approval of the OHCS Finance Committee. As material change occurs that would negatively
impact the application competitiveness, the committee may revoke the award.
Awards to Property Owners

OHCS will award and disburse grants, loans and tax credits to the owner of the property being
acquired, rehabilitated or constructed. However, when the project owner is a limited liability
corporation or limited partnership, its authorized agent can direct OHCS to award and disburse
fund to the managing partner. The owner must enter into written legally binding agreements with


2012 Consolidated Funding Cycle Application                                        Page 34 of 286
OHCS and comply with all terms and conditions during development and operation throughout
the period of affordability.
Policy on Awards for Debt Reduction

The CFC is designed to create and preserve affordable housing. Requests for funds to buy-
down or refinance current debt are not eligible for CFC funding.

This policy does not apply to payment of existing pre-development or bridge loans.
Funding for Construction Completed Prior to Application

Applicants cannot request reimbursement for construction or rehabilitation work started or
completed before they submit the CFC application. OHCS must have the opportunity to review
the scope or type of work and assure the project will meet OHCS architectural standards.
Standardized Legal Documents

OHCS has developed standard grant, loan and tax credit documents. OHCS will forward sample
documents to the sponsor/owner. The applicant and the applicant’s legal counsel should review
the document immediately. If an applicant requests any changes to the document, the applicant
must pay any reasonable legal costs OHCS incurs for their attorney’s review of the proposed
change(s).
Bureau of Labor and Industries Requirements

OHCS funding recipients must comply with the current state prevailing wage law, if applicable.
Applicants must contact BOLI for information on how state prevailing wage law might apply to
the proposed project.

Prevailing wage may apply if all or part of the project is deemed to be a public works project.
This determination might be made if the recipient is a public agency, such as a housing
authority, and the intent is to construct or contract for the construction of all or part of the project
with public funds.

The project may be subject to state prevailing wages if the applicant receives $750,000 or more
in public funds and the project meets any of the following:

      Less than 60 percent of the occupants have incomes less or equal to 60 percent of area
       median income;
      The building is more than four stories high (unless there is a local building code
       exemption); or
      The overall project includes portions, even if not constructed or contracted for
       construction by the applicant that may be deemed public works (i.e., a “mixed-use”
       project).

At any time during development, any change in the project could cause the coverage
determination to be void. Applicants should request updated determinations from BOLI as
necessary.

This notice does not constitute legal advice. OHCS does not assume responsibility for the
determination of prevailing wages status on projects. OHCS encourages applicants to have their
attorney interpret BOLI rules as they apply to the specific project.

2012 Consolidated Funding Cycle Application                                             Page 35 of 286
OHCS will not provide funding increases to fill gaps resulting from an applicant’s failure to
budget for prevailing wage requirements. OHCS specifically reserves the right to revise its
reservation of funds to a project if any BOLI-related funding gap should exist or arise.
Affirmative Outreach Practices

OHCS encourages recipients to use affirmative outreach practices when developing affordable
housing projects. The applicant must demonstrate their efforts or activities to employ minority,
women-owned, and Section 3 businesses at or before contract bidding and report those efforts
to OHCS no later than project completion.
Affirmative Hiring Practices

At project completion, project owners must complete OHCS forms for reporting minority and
women-owned business and emerging small business participation. This reporting requirement
replaces narrative responses that were part of previous CFCs. Applicants requesting HOME
funds are required to complete both narratives and reporting forms, as they do currently
Religious Requirements and Government Funding

Sponsors/owners cannot require tenants to participate in religious activities when the applicant
receives state or federal dollars for the project.

Faith-based organizations that require tenants to follow certain religious practices, should talk to
the RAD in depth prior to submitting an application.
Sustainability and Housing

“Sustainability” means simultaneously meeting Oregon’s economic, environmental, and
community needs while preserving resources and enhancing the quality of life for future
generations.

A central site for information on Sustainability in Oregon is the Sustainable Oregon web site at:
http://sustainability.oregon.gov/.
Through the Consolidated Funding Cycle prioritization process, OHCS encourages “smart
growth” through project development that is close to employment, commercial and social
services, and is friendly to the environment. Many of these are in-fill projects that use existing
infrastructure. These efforts promote environmental and economic sustainability throughout the
state.

Visitability also represents a sustainable approach. Visitable units provide more sustainable
housing for the elderly and people with disabilities through construction improvements to
entranceways, hallways, and bathrooms. Visitability requisites are included in the Architectural
Standards section. Green Building Requirements.
Green Building Requirement

OHCS requires applicants to use green building/sustainability practices as part to improve the
quality of affordable housing developed with state and federal funding.

Reasonable costs associated with green building are eligible for reimbursement. Detail these
costs in the Financial Feasibility Section.




2012 Consolidated Funding Cycle Application                                         Page 36 of 286
High Speed Internet Access

OHCS does not require a high speed internet connection for each unit, but applicants should
consider providing internet and computer access for the tenants.
Insurance Requirements

Applicants must acquire appropriate hazard, liability and/or property insurance for the project
and provide proof of insurance to OHCS. OHCS program documents describe specific
insurance requirements. Flood insurance is required if project is in a flood plain




2012 Consolidated Funding Cycle Application                                        Page 37 of 286
Developer Fees

OHCS defines the developer fee as project “soft” costs (e.g. development consultant fees,
project management fees, developer's overhead and profit, etc.), and any developer’s fees the
applicant choses to defer. Development consultant fees do not include typical professional
services such as architectural, engineering, accounting, legal or other similar services. OHCS
has established a maximum developer fee (including the consultant and other fees mentioned
above) of 15 percent for all projects.

OHCS will evaluate the amount of fees based on the risk and complexity of the proposed
development. The table on the following page is a general framework to help determine if
developer fees are reasonable. Note: The percentages do not apply to deferred developer fees.

   Complexity        Funding layers    Project Size   Site        Project Plan   Developer Fee

   Low               Minimal           > 50 units     Excellent   Repetitive     5-8%

   Mid-Range         Average           36–50 units                               9 - 12 %

   High*             Multiple          1-35 units                                13 – 15 %

   (* For Special Needs Population, Minimum Fee lesser of 15 percent or $50,000)



Calculating Developer Fee
The calculation of developer fees as a percentage of project cost must net out the development
fee and project reserves and cash accounts from the total project cost.
                                Reasonable Developer Fee divided by:
(Total Development Cost minus the Reasonable Developer Fee minus all Project Reserves and
                                Capitalized Cash Accounts)

OHCS does not expect the applicant to minimize fees. OHCS and other funders have an
interest in the developer fees, because the fees are considered a secondary source of
contingency funding. Additional factors in determining a reasonable developer’s fee may be
based on the cash at risk and the cash flow projections of the project.

High cash investments or low cash flows support requests for higher fees. Complex acquisitions
such as expiring use projects or projects with Uniform Relocation Act (URA) requirements (see
the HOME Program Description portion of this application) or projects with a commercial aspect
may justify a higher developer fee. In such instances contact the RAD to discuss the request of
the higher fee before submitting an application. OHCS and the State Housing Council will not
approve fees in excess of 15 percent.

OHCS may release up to 50 percent of the applicant’s portion of the developer fees upon 50
percent of project completion if the applicant can demonstrate there is a need for development
fees in order for the project to proceed. Submit a request for developer fees in writing. OHCS
will not release the balance of the developer fees until a Certificate(s) of Occupancy is in place.
Program resources include the Housing Development Grant Program (HDGP) General Housing
Account Program (GHAP), the HOME Program, HELP, Housing Preservation Fund (HPF), and
the proceeds from the sale of Low Income Housing Tax Credits.


2012 Consolidated Funding Cycle Application                                            Page 38 of 286
Changes to Developer Fee

Any change in developer fees or request for an increased fee must be justified to the
satisfaction of OHCS. OHCS will only consider a request for increase after certificate of
occupancy or verification of substantial project completion. Regardless of amount of increase
requested, total developer fee must be reasonable based on the type and complexity of the
project and will be limited to a maximum of 15 percent of total project cost less the developer
fee. OHCS may recapture CFC resources when an applicant does not receive prior approval to
change a fee.

For projects coming in under budget, OHCS may consider increasing the developer fee for the
following reasons:

      To recover development expenses due to unanticipated increased scope or complexity.
       Amount of developer fee increase will be limited to the lesser of: project savings or a 15
       percent increase to the existing developer fee.
      On LIHTC projects, to offset an adjuster owed to the investor for the project coming in
       under budget and therefore providing fewer credits to the investor than anticipated. The
       amount of increase is limited to the lesser of: project savings or amount of adjuster owed
       to investor.
      To assure a reasonable developer fee based on the type and complexity of project. This
       may occur in instances when the application was submitted and there were inadequate
       resources to fund a reasonable fee and still maintain a balanced sources and uses of
       funding. Amount of developer fee increase is limited to the lesser of: project savings or a
       15 percent increase to the existing developer fee.

OHCS may consider requests for an increased fee to pay incentive fees or bonuses for early
completion. Increases will be limited to 15 percent of the developer fee. Any other increase in
developer fee must be justified by a change of development scope.
Developer’s Fees for Acquisition and Rehabilitation Projects

OHCS will calculate for reasonableness the amount of developer fees related to the acquisition
and related costs. In general, developer fees will be limited as follows:

      a maximum of 5 percent of the acquisition cost
      fees for all other costs, including fees for rehabilitation as described in Figure 3.



      For Example:

      A 60 unit project with an acquisition cost of $2,000,000 and a rehabilitation
      budget of $1,000,000 could have the following maximum developer’s fee:

      Acquisition expense $2,000,000 X 5 percent          =       $100,000

      Rehabilitation expense $1,000,000 X 8 percent       =        $80,000

      Total developer’s fee                         =       $180,000

   OHCS may make exceptions for complex acquisition projects.


2012 Consolidated Funding Cycle Application                                           Page 39 of 286
Deferred Developer’s Fees

OHCS will not include deferred developer fees when computing the reasonableness of the
proposed fee. Deferred developer fees are only those fees dependent on cash flow and not fees
date certain or dependent on a particular event. Under no circumstances can the combined
total of deferred fees and fees earned through the course of construction exceed the maximum
of 15 percent. Deferred developer fees must be due and payable at a date certain (generally
within 15 years) to be included in the tax credit basis.
Cost Over-runs and Developer Fee

Developer fees should be the applicant’s next available source for project cost over-runs once
all contingencies have been exhausted.
ELIGIBLE COST DISBURSEMENTS

Housing Trust Fund (HDGP), HELP, and HOME can pay for some acquisition, predevelopment,
and development activities. List these costs on the Uses Form in the project pro forma.

Applicants must use the funds to cover actual costs. If HOME is used to pay construction
expenses, recipients must provide the subcontractor’s release of lien.

HDGP and HELP funds can pay for expenses incurred up to six months prior to the CFC
application date. The six-month limitation does not apply to pre-development loans, bridge
loans or pay off of an existing loan when approved as part of the application.

The HOME Program Funds are limited to the following pre-development costs:

      legal
      consulting
      environmental
      engineering and design costs
      zoning approvals
      inspections and testing for hazards
      costs relating to obtaining site options
      project financing
      fees for loan commitments

Note: None of the above can have a physical impact on the HOME project site.

Additionally, HOME funds are not an eligible source for the following:

      Non-predevelopment costs incurred prior to execution of the HOME Grant Agreement.
       There are exceptions to this: HOME can pay for a short-term loan or a bridge loan if it
       was used for HOME-eligible expenses.
      Off-site costs including engineering and construction.
      Payment of operating reserves unless pre-approved by OHCS and then only for new
       construction and substantial rehabilitation projects for up to 18 months of lease-up.
      Loan fees for other OHCS programs.
      Application or monitoring fees.
      Furniture/fixtures that are easily “portable”, (e.g. TVs, microwave ovens, small
       furnishings). Applicants should check with OHCS before considering the use of OHCS
       funds for furnishings (both residential use and community spaces).

2012 Consolidated Funding Cycle Application                                      Page 40 of 286
OHCS grant and loan funds cannot pay for:

          Operating Including, but not limited to, maintenance, lawn care, utility bills, staff
           salaries, office equipment, overnight mail fees, postal costs, telephone bills, office
           rent costs
          Tuition and travel expenses for staff training and seminars
          Meals (e.g. lunches, pizza feeds) even for marketing purposes
          Ground breaking and open house expenses

Request for reimbursement of all site-stored materials should occur upon installation of the
materials.

   Other federal, state, and programmatic guidelines may affect the use of OHCS funds.
Release of consultant fees:

OHCS may release reasonable consultant fees after OHCS receives and approves the
contractual agreement. The agreement must detail a disbursement schedule tied to the
completion of specific development mileposts. Mileposts can include the completion of pre-
development activities, applications, loans and equity commitments, construction, stabilized
occupancy and permanent loan closings. Additionally, until Certificate or Occupancy, the
release of OHCS funds will require there is a dedicated source for a 20 percent retainage of that
portion of developer fee assigned to the consultant.

NOTE: Certain programs may have further exceptions and restrictions not included here.
Review all program information in the specific program areas of the application. Make
early contact with the RAD for the project area to identify any restrictions on the use of
fund sources.




2012 Consolidated Funding Cycle Application                                         Page 41 of 286
NEED FOR THE PROJECT
Description

To address the state’s need for affordable housing and limited CFC funds, OHCS must target
resources to the greatest housing needs in Oregon’s communities. The OHCS Needs Analysis
identifies underserved populations. OHCS has incorporated “Need for the Project” into the
selection and ranking to give preference to projects that propose to address an unmet housing
need.
OHCS has established three broad housing needs.

The first are populations and housing types that OHCS has determined to be a Priority 1 for all
regions of the state. There are currently two populations and one project type in this
designation. They are:

     housing for people experiencing homelessness;
     housing for people experiencing chronic homelessness, and
     preservation projects under OHCS’ definition.

OHCS may make an exception to the need prioritization for any project with committed federal
funds for development that includes operating or rental assistance funding. Additionally,
applicants proposing projects in communities that are not a Priority 1 for construction of
workforce housing can receive a Priority 1 by proposing an acquisition/rehabilitation project
serving low-income community residents.

The second general category is housing serving people with special needs:

     Alcohol and Drug Rehabilitation
     People experiencing chronic homelessness
     People experiencing homelessness
     Persons with a presence of a disability
     Domestic Violence
     Elderly
     Frail Elderly
     Farm workers
     People with HIV/AIDS
     Released Offenders
     Others as approved in advance by the department

For special needs housing, OHCS compared population numbers for each group with the
number of housing units that have been financed by OHCS, HUD, RD and local jurisdictions for
that population. The priorities 1, 2, and 3 are determined by finding the natural break points in
percent of the population being served by the housing. Note: the results are different for each
county. Applicants should review the respective county’s charts to see the logical break points.

The third category of housing need is rent-burdened workforce households, as defined by the
following:

     Renter household earning 30 to 60 percent of area median income.
     More than 30 percent of the household gross income spent for housing.


2012 Consolidated Funding Cycle Application                                       Page 42 of 286
The priority levels for rent-burdened workforce households was determined by comparing
communities’ and counties’ percentage of rent burdened households between 30 and 60
percent of area median income (AMI) with the statewide average for rent-burdened households
of the same AMI.

Any community or county whose percentage of rent-burdened residents exceeded the statewide
average received a Priority 1. OHCS divided the remaining cities and counties into priority 2 and
3.

The need for a project is different than the market for the project. “Need” is an analysis to
determine which populations in a community are the most underserved, realizing there may be
a market for many populations, but a higher need for specified populations.

Find OHCS’ research methodology and results online at:
www.ohcs.Oregon.gov/OHCS/RA_Needs_Analysis.shtml. OHCS revises the needs analysis
regularly and welcomes any additional data that applicants or local jurisdictions can provide.

The points in the CFC Application awarded for “population priority need” reflect the OHCS
Housing Needs Analysis. The analysis uses accessible data to assess the supply of housing the
population for both the low-income workforce and those populations with special housing needs.
OHCS has established some policy-based priorities (such as a priority 1 assigned statewide for
housing that serves people experiencing homelessness).




2012 Consolidated Funding Cycle Application                                       Page 43 of 286
                                PART 2A-THRESHOLD
Any application missing these pieces of information will not be eligible for funding in the
2012 CFC.
Pass/Fail

The Threshold Review examines the project’s zoning, site control, OHCS/PHB Physical
Conditions Survey, Evaluation Team Review, environmental review checklist and architectural
submissions to determine if they meet OHCS requirements as stated below. Nothing can be
missing. If the application fails to address any one of the seven areas as required, it will fail the
Threshold Review and will not continue in the CFC review process.
Zoning

Applicants must use the OHCS form. Excerpts from the zone code will not substitute for the
zoning certificate. Projects that require zone changes or annexations will not meet threshold.
Site Control

Applicants must demonstrate legal control of the project site at time of application. Evidence of
site control can include the following: purchase and sale agreement, option agreement, earnest
money agreement fee simple title (warranty deed); documentation from the local government
demonstrating its intent to transfer property and under what circumstances; an agreement or
letter of intent between the landowner and application to enter into a ground lease. (NOTE:
OHCS must approve a ground lease before it can be executed).

For applications not requesting HOME funding, the acceptable term of the sales agreement
or option must be valid through December 31, 2012.

For applications requesting OHCS HOME funding, the acceptable terms of the sales
agreement or option must (at a minimum) be valid through March 31, 2013. This allows
adequate time for completion of the HOME NEPA Environmental Review. The HOME NEPA
Environmental Review requirements prohibit “choice limiting actions” on the project site. Do not
undertake any action or activity that could limit the project to a specific site after submitting the
CFC Application. Choice-limiting actions include, but are not limited to, acquisition, demolition,
or construction. Doing so will result in the project becoming ineligible for HOME funding
regardless of what funding source is used to pay for the activity(s).

Under certain limited circumstances, OHCS Administration may review site control exceptions
before submission of an application. Applicants should send requests for advance approval
through the RAD. The Housing Division Administrator can receive exception requests no less
than two weeks before the CFC application deadline. If OHCS allows the exception, it will
provide an approval letter for inclusion in this section of the application.




2012 Consolidated Funding Cycle Application                                           Page 44 of 286
OHCS/PHB Physical Conditions Survey

Applicants must complete the OHCS/PHB survey. This applies to all projects with the exception
of group homes or projects with only OAHTC or Trust Fund as a funding source. See the
instructions section of the application for further information. Contact the RAD for the project
area for details or an exception request.
Use of an Evaluation Team Review

Applicants must contact the RAD before applying to the CFC for required documentation of the
Evaluation Team Review.
Site review and preliminary environmental review

Applicants should refer to the application time schedule for exact deadlines for completion.

Architectural Standards

Applicants must answer one short question. Submit only the architectural plans specifically
listed on the Application Submittal Checklist. OHCS will not review additional plans provided.
OHCS will review plans during the Threshold Review to confirm the appropriate documents
have been submitted and are satisfactory. The Threshold section also provides two exemption
forms if the applicant wants an exemption from the visitability requirements or minimum or
maximum unit floor areas or wants funding for a single-level two bedroom/two-bath design.
OHCS will review these exemption requests during the Threshold Review. If OHCS denies an
exemption request, the applicant will need to revise the plans accordingly.
Zoning Requirement

All applications must include a zoning certification form, even if the project is solely acquisition
or rehabilitation. OHCS has designed a Zoning Certification Form to be used to document the
zoning status of the property. The department will not accept zoning approval in any other
format The City or County staff responsible for deciding issues related to comprehensive
planning and zoning must sign the Zoning Certificate. OHCS will not accept an application
without the certification or if it is incomplete or inappropriately signed. For example, an excerpt
from the zoning code is not acceptable as zoning confirmation.

OHCS will not accept application for projects that require zone changes or annexations. Such
proposals will not meet threshold.

The original application must include the original of the Zoning Certificate.
Verification of Site Control

Complete the table and attach evidence of site control. If the applicant does not yet own the
property, they need to be sure to submit all extension documents, amendments and/or
addendums to the original documents.

OHCS Administration may review site control exceptions before the application is submitted.
Send requests for an exception at least two weeks before the CFC deadline through the RAD.
If OHCS allows the exception, it will send an approval letter for inclusion in this section of the
application.




2012 Consolidated Funding Cycle Application                                           Page 45 of 286
OHCS Environmental Review Checklist

Applicants must complete the OHCS Environmental Review Checklist prior to the RAD’s site
visit. If an application involves more than one land parcel, complete a Review Checklist for each
parcel.

The RAD will review information on the checklist during the site review. Both the applicant and
the RAD must sign the Environmental Review Checklist or the application will not meet the
Threshold requirements.

Applicants must contact their RAD to set an appointment for a site visit. Find the deadline for
scheduling the site visit on 2012 CFC Schedule. If an applicant does not contact the RAD before
the deadline, the RAD has no obligation to view the project site or sign the Environmental
Review Checklist.

OHCS will use the Vicinity Map for both the environmental and architectural reviews. The map
must include the scale. Applicants should mark the site location on the map, as well as a
number of amenities and natural locales (parks, etc.). Find details in the SITE/AREA MAPS
portion of the Environmental Review Checklist.

Submit only the summary pages if an environmental Phase 1, engineering, soils or other study
have been done. Do not submit the entire report.
Architectural Threshold

Describe the overall characteristics of the project and the target population in three to five
sentences. Do not include all elements of the project. OHCS will not score this description, but
will provide information for the reviewer. Examples of optimum responses are:

      This is a 56 unit project in seven buildings on a suburban site with a separate community
       building in an established residential neighborhood targeting the senior population.
      Major elements of the proposed rehabilitation include site improvements; new roof,
       windows and siding; interior cabinet and flooring replacement; supporting workforce
       housing.
Visitability Exemption Request

Use this form if the proposed design cannot meet the state’s visitability requirements, as
described in the Architectural Standards section. If the project will require an exemption, include
a Visitability Exemption Request in this section of the application.
Request for exemption from minimum or maximum unit floor area requirements or
single-level two bedroom/two bath

Applicants should use this form if the size of the units in the proposed project is not consistent
with OHCS’ standards. (See the Architectural Standards section of the Application). Applicants
should also use this form if the proposed design includes single-level two bedroom units with
more than one bath. Include the Exemption Request in this section.
Architectural Submissions

Applicants should submit only the architectural plans and materials listed on the Submittal
Checklist. Mark the location of any context photos on the Vicinity Map. If photocopying photos
for the application, the original photos should be included in the original application and copies
of the photos in the application copies.

2012 Consolidated Funding Cycle Application                                         Page 46 of 286
                                                 Zoning Form

  Local government verification that development is consistent with zoning and Land Use
  Regulations.

   Project Name:
   Project Type and # of units:
   Project Location:
   Acreage of Project Site:                                Tax Account #(s):
   Assessor’s Map & Tax Lot(s):
  (Must be completed by local jurisdiction)
  Certification
   1. The zoning for this development site is:


   2. The number of units (not buildings) [density] allowed for this development site is:
Minim Minimum number:                                  Maximum number:
   3. The number of on-site parking spaces required per dwelling unit is:
   4. Check the applicable box. (Check only one box):
             The proposed use is consistent with the above referenced zoning and applicable
             land use regulations. The jurisdiction requires no additional land use approvals.
             The proposed use will be consistent with the above referenced zoning and
             applicable land use regulations upon obtaining of the following land use
             approval(s):


              or resolution of the following land use issue(s):


                                                                                                        has
             Applicant submitted the required application(s) for review:                      has       not
                                                                         cannot be determined to be
             The proposed use           is not allowable      or         allowable with
             the above referenced zoning and applicable land use regulations because:


                                                             has vested in me the authority to verify
   I certify that the City/County of                         consistency with local
   land use regulations and I further certify that the foregoing information is true and correct to the best
   of my knowledge.




   Signature                                         Date                        Phone




   Print Name                                        Title




  2012 Consolidated Funding Cycle Application                                                    Page 47 of 286
                                   Verification of Site Control Form

                                              Date of Last
Type of Site Control (check all that apply)   Amendment or       Date of Last   Current Expiration
(X)                                           Addendum           Extension      Date

        Deed                                  n/a                n/a            n/a
        Final Land Sale Contract              n/a                n/a            n/a

        Earnest Money Agreement
        Option

        Other:




   2012 Consolidated Funding Cycle Application                                    Page 48 of 286
                                    Environmental Review Checklist

  Applicant/
  Sponsor:                                                Project Name:

  Site Address:
  Legal
  description(required):         Township:                   Range:                    Section:
  Quarter
  Section:                                                   Tax Lot(s):

  The applicant must complete this environmental review checklist in its entirety and provide to the
  Regional Advisor to the Department (RAD) prior to the RAD’s site visit. The RAD will review the
  information during the site review. For HOME applicants, this Checklist will guide the HOME
  environmental review.

  Certification

                  This checklist has been completed accurately to the best of our knowledge, and the RAD
                  has conducted an in-person site review.


  Applicant/Sponsor Name                     Signature                                             Date


  RAD Name                                   Signature                                             Date

  Information Source Coding

Identify the source of all information provided. Record the source here and indicate the appropriate code
in the space provided throughout the checklist.
FO - Field Observation. (On-site observation or personal knowledge of the person completing the
Environmental Review Checklist.)
 Preparer:                                                      Date of field observation:
 Address:                                                       Phone:
PS - Project Sponsor.
PL - Planning Department. (Information supplied by local planning department or local official previously
listed)
R1 - Report. (Information from consultant reports, databases, licenses, other authorities. Number such
sources consecutively and list below)
 R1    Title of Report:
       Preparer:                                                             Date:

 R2    Title of Report:

       Preparer:                                                             Date:




        2012 Consolidated Funding Cycle Application                                          Page 49 of 286
Site/Area Maps


Provide a vicinity map with scale included. The site location must be visible on every copy. Note: Original
colored maps copied in black and white can be difficult to read.

Mark the following on the map:
       Location of an Airport (if applicable)           Recreational facilities (park, activity centers, etc.)
       Railroad (if applicable)                         Commercial/retail facilities (grocery, dept. stores, etc.)
       Nearest 4-lane highway or arterial               Nearby industrial facilities
       Social Service agencies                          Schools
       Hospital, police and fire departments            Rivers, streams, ponds, springs, wetlands

Also, provide the following:
         The most recent FEMA Flood Plain map including the panel number and date. Mark the project
          location on the map.
         A USGS map of the appropriate Township, Range and Section. The map submitted may be 8 ½ by
          11”, as long shows the entire “section” where the site is located. The site location must be
          sketched in. USGS maps are available at planning offices, libraries and bookstores.


Source                         Type                       Distance           Comments
                                                          from Project
Commercial Services
Employment Centers


Public Transportation



Schools                        Elementary
                               Middle/Jr. High
                               High
Parks and Open Space

Recreation/Cultural
opportunities
Social Services

Emergency Services             Police Station

                               Fire Station
                               Emergency
                               Medical
                               Hospital




        2012 Consolidated Funding Cycle Application                                             Page 50 of 286
Land Development
Existing Structures on Site                                                                Source
                                                                                                          FO
      Are there other structures on the site that will not be included in the CFC-funded      Yes              No
1.    construction or rehabilitation?
      If "yes," are there plans to demolish any or all of them? Describe all existing structures whether
2     commercial, residential, storage, etc. and any plans for them. Indicate if each building listed is
      occupied or vacant.




Soil Suitability                                                                           Source         _______
                                                                                                           PS,FO
3     Is the site level or sloped?
4.    If sloped, give the range of degrees of the slope.
      Are there any signs of unstable soils in the vicinity? (e.g. cracked foundations,
5.
      sinkholes)                                                                                 Yes             No
6.    Are area soils highly erodible? Submit soil reports if available.                          Yes             No


7.    Describe soil type and bearing. Get soil type from Natural Resource Conservation Service (local
      county jurisdiction).




Hazards                                                                                        Source          _____
                                                                                                                FO
8.    Are any natural hazards apparent? (dangerous trees, sinkholes, ravines,                       Yes          No
      avalanche-prone slopes, etc.)
9.    If “yes”, give details.


10.   Are any of the following present? (circle each that applies)
      overgrown adjacent property                excessive vibration, odors or dust
      abandoned adjacent buildings               field crops
      irrigation canals                          livestock
      drainage ditches                           unfenced commercial/industrial adjacent property
      old wells                                  high pressure petroleum or natural gas pipelines
      improperly screened street drains          high voltage power transmission lines through or adjacent
      deteriorated streets or sidewalks          other (list)
      adjacent power substations

11.   Provide details for each hazard present.




        2012 Consolidated Funding Cycle Application                                          Page 51 of 286
Contamination Screening                                                                     Source
                                                                                                       PS, FO,PL

11.   If this is a rehabilitation project or a plan to demolish an existing structure is      Yes             No
      contemplated, is there evidence of the presence of asbestos or lead-based
      paint? (Generally, lead-based paint can be found in most buildings
      constructed prior to 1978).
12.   If “yes”, describe any inspection that identified the lead and/or asbestos hazard. Provide the results
      of the inspection(s). If no inspections have been made, are they planned?



13.   Is there any knowledge of an “environmental due diligence” investigation of the            Yes          No
      site performed (TSQ, Phase I or II, site characterization, etc.)?
14.   If “yes”, are the results available? (If yes, Applicants need only to submit the           Yes          No
      executive summary and any recommendations.)
If no “environmental due diligence” investigation report is available, please answer the following
questions:
15.   Is there evidence of contamination pollution or potential possible contamination           Yes          No
      on immediately adjacent land? Such signs include landfills, chemical storage
      facilities, service stations, chemical processors, plating plants, dry cleaners,
      vehicle storage, wrecking or repair businesses, underground storage tanks,
      drums, distressed soil or vegetation, fill, contaminated wells, transformers, major
      transmission line, adjacent substation.
16.   If “yes”, provide details.




17.   Is there evidence of contamination or potential contamination on the site? This           Yes           No
      may include discarded steel or plastic drums, chemical containers, distressed
      soil or vegetation, odors, accumulation of trash or debris, contaminated wells,
      transformers, or potential USTs (underground storage tanks) [look for old
      foundations, slabs, pipes in the ground])?
18.   If “yes”, provide details.




19.   Is there evidence of fill on site?                                                        Yes       No
20.   If “yes”, does documentation exist to demonstrate that the fill was engineered and is appropriate for
      the intended use?




21.   Are all utilities presently at the site?                                                  Yes       No
22.   If “no”, what needs to be brought to the site?




       2012 Consolidated Funding Cycle Application                                           Page 52 of 286
Site Safety                                                                                  Source    _____
                                                                                                          FO, PL
List names, addresses and phone numbers of local officials and the date contacted regarding the
following:
Site Safety      Name/Title:                                Date:                    Phone:

                 Address:

Runway Clear Zones
Runway Clear Zones are areas immediately beyond the end of runways at civil airports. OHCS will not
approve a site in a Runway Clear Zone or accident potential zone will be approved.

23.   Is the site located in a Runway Clear Zone?          Yes        No

Explosive and flammable hazards
Explosive and flammable hazards are aboveground tanks that contain explosive or flammable materials.
Common examples are: commercial propane tanks, fuel oil deports, gasoline storage, industrial solvent
storage, refineries. Residential fuel oil tanks of 100 gallons or less are excepted. Tanks that are currently
empty but have not been decommissioned and can be refilled legally are considered ‘live.’

24.   Are there any aboveground tanks containing explosive or flammable materials               Yes        No
      within line of sight from any part of the proposed site?

25.   Are there any aboveground tanks containing explosive or flammable materials               Yes        No
      within 500 feet of any part of the proposed site shielded from line of sight by
      buildings but not topography (Buildings may or may not be an effective barrier,
      topography is an effective barrier)?
26.    If "yes" to either question 24 or 25, describe them and the distance from the site.




If the answer is yes to questions 23, 24 or 25, OHCS will contact the applicant later for the detailed
information necessary to complete HUD's site requirements for projects near hazardous facilities.


Noise

Effects of Noise                                                                              Source
OHCS may not approve sites next to freeways or heavily traveled rail lines. OHCS                       FO,PS, PL
may find most other sites acceptable as-is or acceptable with changes so that the
units meet the standard for interior noise levels.
27.   Is any part of the site within 15 miles of an airport with scheduled service              Yes        No
      (passenger, cargo) or 2.5 miles of a military airport?
      Check which type(s):              passenger/cargo           military


28.   Is any part of the site within 3,000 feet of a railroad?                                  Yes        No
29.   Is any part of the site within 1,000 feet of a freeway or a busy road or highway?         Yes        No




        2012 Consolidated Funding Cycle Application                                           Page 53 of 286
30.   Are any other noise generators located nearby (such as heavy industrial                        Yes        No
      facilities, rail yards, shipyards, and fire stations?
      Comment: Sites immediately adjacent to freeways and heavily traveled rail lines
      may not be acceptable. Most other sites will either be acceptable or acceptable
      with design mitigation to achieve the required interior standard.

31.   If "yes," identify them and give their distance from the site.




Air Quality
Air Quality Screening                                                                           Source
                                                                                                               FO, PL

32.     Is the site close to anything – such as a freeway, gravel pit, pulp mill or               Yes          No
        other source of air pollution – that affects air quality at the site subject to air
        quality impacts not generally shared with the entire community? (e.g., close
        proximity to freeway, gravel pit, pulp mill or other source generator or air
        pollution).

33.     If "yes," please describe.




        Historic and Preservation Values
        Historic Preservation Screening                                                         Source
        PL, R1 appropriate sources for first four questions.                            County assessor, current owner

        Every application whether for the development of bare land or scheduled for the rehabilitation
        and/or demolition of existing buildings, must include answers to the following questions below.
        Identify the source of the information. Possible sources include State Historic Preservation Office,
        local historical societies, and city and county planners.
        34.   Is any part of the site in an established, eligible or proposed historic or              Yes
              conservation district?                                                                            No
        35.   Is the site or any structure on the site listed in a local historic or cultural          Yes
              resources inventory or in the National Register of Historic Places                                No
              (NRHP)?
        36.   If “yes” on either question 34 or 35, please describe




        37.   Are any immediately adjacent sites or structures listed in a local historic or           Yes
              cultural resource inventory or the NRHP?                                                          No
        38.   If "yes," please describe.




        2012 Consolidated Funding Cycle Application                                              Page 54 of 286
   39.     Are there any known or suspected archaeological resources on or near the           Yes       No
           site or on adjacent sites or in the vicinity?
   40.     Is the site located on any historical or current Tribal land?                      Yes       No
   41.     If "yes” to either question 39 or 40, please describe.




   42.     List the year(s) built of any structure(s) on the site:


List names, addresses and phone numbers of persons or organizations that assisted in answering
the above questions.
Name/Title:                                                          Date:           Phone:

Address:


   Note to all applicants (regardless of types of funds requested):
   If any building is 50 or more years old, include the following items with this application. Applicants must
   submit the items separately for each building 50 years of age or older: requires submission of these
   items separately:

   Photographs, laser-printed photos, or color-printed digital images (no photocopies) of the targeted
   building(s) or of the proposed site, showing architectural context of the project. The photos must clearly
   show the entire building and the immediate surrounding neighborhood area.
   A physical description, including date of construction, of any building affected by the proposed project.
   If the structures have been altered since they were originally built, provide the dates of the updates.

   IMPORTANT: Note regarding HOME projects and SHPO:
   For projects applying for HOME funding from OHCS, the above historic and preservation answers and
   photos, as well as the description of the project, the address of the property and the site/locality maps
   included with the Environmental Checklist will be forwarded to the State Historical Preservation Office
   (SHPO) for approval on the project's behalf. Applicants should not forward these items to SHPO
   themselves.

   However, if applicants are requesting HOME funds from a source other than OHCS, applicants must
   work with that HOME source to determine who will complete the SHPO process.




   List name, address and phone number of persons or organizations contacted about buildings older
   than 50 years:

   Name/Title:                                                       Date:           Phone:

   Address:




         2012 Consolidated Funding Cycle Application                                        Page 55 of 286
 Natural Resources
 Flood Plains                                                                   Source
                                                                                                        PL
 Federally supported construction activities are prohibited within the 100-year flood plain as mapped by the
 Federal Emergency Management Agency (FEMA) and are not eligible for federal funds, except under
 limited circumstances. Federally supported construction activities within the floodway are totally prohibited
 under any circumstances.
 43. FEMA Map                                                             Effective Date
       Is any part of the site located within the 100-year flood plain according to the
 44.                                                                                            Yes          No
       FEMA map?
 45. Is any part of the site located within the floodway according to the FEMA map?             Yes          No
 46. Will any off-site construction occur within the 100-year flood plain?                      Yes          No
 Submit a copy of the appropriate FEMA map panel marked with the proposed site sketched in or
 identified. Please use dark ink. Colored ink or markers do not photocopy well. If the panel is not printed,
 the site is not in the flood plain. Applicants can get the flood plain maps from their local government.

 For applications for which HOME is a requested source, in addition to answering the following, Applicants
 must submit the documentation that backs up local officials’ determinations for questions 47 through 55.

Wetlands                                                                                   Source
                                                                                                      PL, FO

HUD defines wetlands as “...only those designated wetland areas identified or delineated on maps issued
by the Fish and Wildlife Service of the U.S. Department of the Interior as areas that are inundated by
surface or ground water with a frequency sufficient to support, and under normal circumstances do or
would support, a prevalence of vegetative or aquatic life that requires saturated or seasonally saturated
soil conditions for growth or reproduction.” The project site may also contain areas identified as wetlands
by state, county or local entities.
NOTE: Staff at the local planning department should know of any local, state or federal wetland
designations. Submit available documentation about the site’s wetland status.
The investigation can be brief (such as an inquiry with the planning department and field observation if the
site:
      Has no wetland characteristics (such as lots in established “high and dry” urban neighborhoods,
      Is in the desert,
      Is un-vegetated or is artificially planted with irrigation providing the needed water

The applicant must conduct a more thorough investigation when
      water resources are on or near the site
      the planning department indicates likelihood of nearby wetlands
      the public has raised wetlands as an issue

The services of a qualified professional may be necessary. OHCS considers the Oregon Department of
State Lands’ determination of wetland status as final.
Officials contacted about wetland status:
 Name/Title:                                                  Date:                  Phone:
   Address:


        2012 Consolidated Funding Cycle Application                                         Page 56 of 286
47.     Has any part of the site (including off-site construction areas) been identified as potentially a
        jurisdictional wetland by one of the following sources?
        If jurisdictional wetlands are anywhere on the site or adjacent to the site, submit a site map showing
        an overlay of the wetland area and the planned building(s). Use dark ink. Colored ink or markers do
        not photocopy well.
        Source

        US Army Corp of Engineers                                                                       Yes    No

        Oregon Division of State Lands                                                                  Yes    No

        US Fish and Wildlife (Nat’l Wetlands Inventory Maps)                                            Yes    No

        Natural Resource Conservation Service (rural areas)                                             Yes    No

        Local Planning Department (Goal 5 Inventories)                                                  Yes    No

        Wetlands Delineation consultant                                                                 Yes    No

        Other                                                                                           Yes    No
           Comment: The local planning department should be cognizant of any identification’s made by
           the above authorities. Submit any documentation available concerning the wetland status of the
           site.
48.     If potential jurisdictional wetlands have not been identified, does the site exhibit any of the following
        characteristics?
        Characteristic
        Wetland vegetation
        (cattails, rushes, reeds, sedges, reed canary grass, creeping buttercup)                        Yes          No
        Hydric Soils (Soil Conservation Service Maps)                                                   Yes          No
        Seasonally saturated conditions                                                                 Yes          No
        Water table within 18 inches of surface                                                         Yes          No
        Wetland wildlife (ducks, salamanders, frogs, nutria, etc.                                       Yes          No

      Comments:

      For sites which possess no potential wetland characteristics (such as building lots in established
      urban neighborhoods that are “high and dry,’ desert sites with no water resources in the vicinity, or
      sites with no water resources in the vicinity that are un-vegetated or artificially planted [irrigation is a
      water resource], the above investigation may be cursory (an inquiry with the planning department
      and field observation).

      If water resources are on site or adjacent, the planning department indicates potential for wetlands in
      the vicinity, any of the above characteristics are present or the public has raised wetlands as an
      issue, a more thorough examination is merited. The services of a qualified professional may be
      necessary. OHCS will not debate the delineation of any wetland (or the determination that no
      wetland is present) that has been documented as acceptable to the Oregon Division of State Lands.
           Vegetation and Wildlife                                         Source__________________


           2012 Consolidated Funding Cycle Application                                             Page 57 of 286
      List names, addresses and phone numbers of local officials and the date contacted regarding
      vegetation and wildlife:
      Name/Title___________________________ Date:_____________ Phone ________________
      Address: ____________________________________________________________________


49.      Have any endangered, threatened or candidate species (fish, animals,                    Yes            No
         plants) been identified in the quarter section of land surrounding the site?
         Use Oregon State University’s Oregon Natural Heritage Information Center
         for communities with identified species within their UGB’s

50.      If yes, provide details.                                                                         o




51.      Have any endangered, threatened or candidate species of plants, fish or                 Yes            No
         animals been identified on the actual site?

52.      If "yes," provide details.




53.      Has the locality identified the site or vicinity as wildlife habitat as part of its     Yes            No
         Goal 5 Inventory process?

54.      If "yes," provide details.




55.      Describe the predominant ground cover and any wildlife observed. Field observation is
         acceptable.




      2012 Consolidated Funding Cycle Application                                              Page 58 of 286
 Home And Risk Sharing Specific Environmental Review Questions
 Skip this section if the project does not includes OHCS HOME funds or Risk Sharing Bond Financing



      List names, addresses and phone numbers of local officials and the date contacted regarding
      the following:

  Public    Name/                                                                   Phone
  Water     Title:                                         Date:                    :

            Address:
  Public    Name/                                                                   Phone
  Sewer     Title:                                         Date:                    :

            Address:
  Storm     Name/                                                                   Phone
  Sewer     Title:                                         Date:                    :

            Address:



Solid Waste                                                                          Source
                                                                                                    FO, PS. PL

56.     Is garbage collection available?                                                      Yes       No
57.     If "yes," by commercial service?                                                      Yes       No
58.     Will curbside residential recycling be available to the proposed project?             Yes       No
59.     Is construction waste recycling available in the community?                           Yes       No

Waste Water                                                                          Source
                                                                                                    FO, PS. PL
60.    Is public sewer available at the site?                                                 Yes        No
61.    If "no," explain waste-water arrangements




Storm Water                                                                          Source
                                                                                                    FO, PS. PL

62.    Is public storm sewer available at the site?                                           Yes       No
63.    If "yes," is this a combined waste/storm sewer?                                        Yes       No
64.    If public storm sewer is not available, how will storm water drainage be handled?




65.    What will be the total square footage of impervious surfaces (roofs, parking
       areas, walkways) on the site:


      2012 Consolidated Funding Cycle Application                                           Page 59 of 286
Nearby Water                                                                 Source
                                                                                            FO, PS. PL


66.    Are there rivers, creeks or lakes within a two-mile radius of the proposed       Yes          No
       project?

       (Ponds and irrigation canals are not necessary to consider).

67.    If so, submit their official names and approximate distance from the site. Submit a map
       showing their location relative to the site.




 2012 Consolidated Funding Cycle Application                                        Page 60 of 286
              PART 2B -THRESHOLD - ARCHITECTURAL
Architectural Threshold Question

Use one to three sentences to describe the overall architectural characteristics of the project
and the intended population:




2012 Consolidated Funding Cycle Application                                        Page 61 of 286
                                      Visitability Exemption Request Form

 Applicant:___________________________________                Project Name:_______________________
 Site Address:_________________________________

 Visitability Exemption Category (check all that apply). See OAR 813-310-080

               Topographical Concerns                                    Funding Conflicts

               Undue Costs                                               Undue Constraints
               Initial Project Rejection                                 Community and Design Standards

               Community Powder Room / Adaptable Powder Rooms in each Visitable Unit

 Number of Units Requesting Exemption:
 Full Exemption:                      Partial Exemption:


 Describe the circumstances relating to the exemption request. Be as specific as possible. Use other sheets
 and provide documentation drawings, cost information or other data as necessary. Applicants should
 provide justification for each exemption category requested.




 If the exemption request is based upon conflicting community design standards, provide a written statement
 below stating whether it would be reasonably possible for the local government to exempt the site from the
 local design standard.




 Describe the effect the requested exemption would have on visitability for people with mobility impairments.




Please refer any questions regarding a Visitability Exemption Request to:

Bob Gillespie, Housing Division Administrator
503-986-2106
email: bob.gillespie@state.or.us
              Approved                     Not Approved               Not Applicable
 Name                                                         Date

 Title


         2012 Consolidated Funding Cycle Application                                         Page 62 of 286
                      Minimum or Maximum Unit Floor Area Exemption Form

Including Requests for Single-Level Two Bedroom /Two-Bath Designs

 Sponsor:                                                   Project Name:

 Site Address:


 List which Minimum or Maximum Unit Floor Area Limitation(s) the project is unable to meet.
 Include the location and number of specific units affected:




 Describe the reason(s) why the Minimum or Maximum Limitation(s) cannot be met in this/these
 particular unit design(s):




 Describe the specific reasons it is necessary to include two full baths in the two-bedroom unit design(s):




Please refer any questions regarding an Exemption Request to:
Bob Gillespie, Housing Division Administrator
503-986-2106
email: bob.gillespie@state.or.us


              Approved                    Not Approved                  Not Applicable

 Name                                                          Date

 Title




         2012 Consolidated Funding Cycle Application                                        Page 63 of 286
                        ARCHITECTURAL STANDARDS
Introduction/Overview

OHCS supports the development of affordable housing that is safe, livable and well designed;
contributes positively to the quality of life in Oregon, adds to the aesthetics and living
environment of the community, and enhances the self-esteem and empowerment of the
residents it houses and serves. OHCS’ projects should also employ sustainable and green
building practices. Note that Green Building Requirements are described specifically following
the Unit Design Requirements in this section.
Architectural Review

OHCS publishes specific Architectural Standards that include site design, building design, unit
design and other quality of life issues, including construction materials and practices affecting
the life-cycle cost of buildings. OHCS reviews the design teams’ proposals to help projects
meet the standards, thereby assuring the quality of state-funded housing projects.

OHCS’ expectation is that each new construction project will be designed by a registered
architect currently licensed in the State of Oregon. There may be cases where a project is
deemed exempt from the Oregon Architects and/or Engineer’s Law. If someone other than a
licensed architect designs a small residential project, the applicant must request a pre-approval
from OHCS two weeks prior to the CFC application deadline.
Recent Concerns in Meeting Specific Architectural Standards

Applicants need to read this entire Architectural Requirements section carefully, realizing that
meeting the minimum standards is one of the criteria for approval of project funding. Make sure
the project architect has access to the architectural requirements before the design phase
begins. It will save time and other resources during the review process.

These published minimum architectural standards are typically met as a matter of course in
well-designed projects. In excellent projects, they are exceeded. At the same time, OHCS’
recent experience has shown that more than a few projects do not meet some particular
requirements with the initial submissions for funding/financing. Spending significant resources
to redesign projects after the initial proposal is submitted can increase both soft and hard project
costs. It can result in budget shortfalls that require substantial value engineering and/or
jeopardize project livability for tenants.
Architectural 30 year Standard

The OHCS goal is for affordable housing projects to be built in such a manner they sustain
themselves for 30 years without need of significant rehabilitation work. This will require careful
design, material selection and oversight by project architects, contractors and owners. This type
of oversight ensures the affordable housing project, including building envelopes and all
structural components, have the necessary sustainability to last for 30 years with industry
standard maintenance schedules.




2012 Consolidated Funding Cycle Application                                         Page 64 of 286
The following are concerns that, if not addressed in the application materials, can result in
budgetary challenges:

      Site Design

       Geotechnical Problems: These are typically the result of inadequate subsurface
       investigations and result in higher than expected foundation costs.

       Storm Drainage: If the project includes HOME funding or is located in certain political
       jurisdictions, storm water may have to be treated on-site. Retrofitting on-site treatment
       design can be expensive, especially if it affects the number of type of units the site can
       support.

       Privacy: Walkways and traffic adjacent to apartment windows compromise privacy.
       Required design adjustments could affect unit design and/or site development density.

      Building Design

       Moisture Infiltration: Proper window and door installation is essential to long-term project
       viability, as is careful design of exterior finishes. This has been particularly challenging
       for rehabilitation projects. Moist building materials, such as “green” framing lumber, have
       caused considerable damage to otherwise viable projects. Lumber must be dry and free
       of visible mold/mildew. Maximum moisture content of 19 percent is an industry standard,
       and is OHCS’ expectation.

      Unit Design

       Furnishing the unit, Circulation and Unit Floor Area: Floor Plans that show furniture
       arrangements highlight the usefulness of a particular design. Such drawings are required
       with the initial submission drawings. Good designs should stay within the range of the
       published floor area requirements. Very small apartments typically have inadequate
       dining space and/or closet space. Apartments that are overly large often result in high
       project costs.

Note: the above list in no way diminishes the importance of meeting the complete architectural
requirements outlined and explained below. The list is provided as a tool to expedite the number
of projects that receive final plan architectural approval. It is meant to assist everyone in making
good use of limited resources and to provide high quality housing to tenants.
Overview

All new construction and rehabilitation projects must receive final plan architectural approval
from OHCS as a condition of funding.

The following outlines the architectural material to be submitted with the application, and the
architectural design requirements that must be met for developments to receive Architectural
Plan Approval:

Architectural approval is based on evaluation of each project by OHCS in relationship to the
Architectural Design Requirements listed below.




2012 Consolidated Funding Cycle Application                                         Page 65 of 286
      Sufficient information must be submitted to enable OHCS to evaluate the project’s basic
       architectural design.
      If the project is a Residential Care Facility (RCF) or Assisted Living Facility (ALF), the
       documents must be approved by:
        Oregon Licensing Plans Review Program
        3420 Cherry Avenue NE, Suite 110
        Keizer, OR 97303. (PH: 503.373.7201, Fax: 503.373.1825)

The use of some federal funding requires additional investigation of environmental conditions,
with particular attention paid to the environmental effects of storm water management.

Architectural Plan Review – For All Projects

OHCS will conduct a preliminary review of the architectural plans. Applicants will receive the
results of review in writing. A project sometimes meets OHCS’ published minimum architectural
requirements at application, and the applicant receives an architectural approval letter. If the
project has not met the architectural requirement, the applicant will receive a letter with
conditions for plan approval. OHCS minimum architectural requirements must be addressed
before the project can proceed. The applicant should allow adequate time for OHCS review
when developing the project schedule. If the initial review letter requires conditions for approval,
the applicant should allow 2 to 4 weeks after OHCS receives the additional and/or corrected
information for approval.
Architectural Review Submission Requirements – For All New Construction Projects and
Rehabilitation Projects that Include Any New Construction

Submit the specific documents required for design review with the application. These must not
be construction documents, but the schematic or early design development documents. The
architectural submission should include the information listed below:

      Vicinity map indicating the location of the site and amenities important to the residents
       such as groceries, schools, parks, activities on adjacent properties (e.g. single family
       dwellings, commercial retail etc.), and public transportation. If appropriate, the same
       vicinity map required in the environmental review checklist may be used.
      Context photos showing the property and adjacent properties. Indicate on the vicinity
       map where the photographs were taken. If the site varies in slope, submit photographs
       showing the extent and nature of the sloped areas. If photocopy photos are taken,
       include original photos in the original application and copied photos in the application
       copies.
      Preliminary site design and development plan with topographic data and a schematic
       landscape concept (1”=40’ minimum scale). The site plan should include:

   1. Site contours or, at a minimum, elevations on the corners of the property and each
      building; and preliminary grading including drainage away from buildings.




2012 Consolidated Funding Cycle Application                                         Page 66 of 286
   2. Site features such as existing structures to be removed, trees or hedges to be retained
      and general areas of new plant materials, with other site features.
   3. All buildings with unit front entries indicated.
   4. All paved surfaces and site lighting, if determined.
   5. Any fencing at perimeter of site and between units and buildings.
   6. Mechanical and electrical equipment such as transformers, if determined.
   7. Trash holding areas, if known.

   Required site accessibility and visitability features:

          Preliminary building exterior elevations at 1/8”= 1’0” minimum scale that includes
           size of building and rooflines. Include a visual indication of grade at the foundation
           wall of the site with each elevation when the site is sloped.
          Preliminary building floor plans at 1/8”= 1’0” minimum scale and unit plan(s) at ¼””=
           1’0” minimum scale.
          Preliminary building sections at 1/8” = 1’-0”, when appropriate. These are required
           for sites where the grade slope exceeds 10 percent.
          Typical unit plans with furniture arrangements. Unit interiors shall be designed for
           maximum livability and utilization of space by residents.
          List of applicable codes and regulations
          Identify all federal, state and local codes and regulations that govern the project. If
           the work falls under code jurisdiction, provide a letter of intent, signed by the
           architect, to meet all applicable federal, state and local codes and regulations.

Codes and regulations may include, but may not be limited to:

      HUD, NOAA and/or other federal regulations
      Current edition of the Oregon Structural Specialty Code
      Applicable local planning and building codes
      Accessibility and visitability requirements
      HUD Fair Housing Accessibility Guidelines
      ADA Accessibility Guidelines
      Uniform Federal Accessibility Standards (UFAS) applicable to HOME and other federally
       funded programs
      Oregon Visitability Requirements (included in this document)

Place the estimate of probable construction cost with the Construction Cost Documents.
Applicants should be aware that additional information will not be reviewed.

Construction Documents – For OHCS Bond-financed Projects Only

After the receipt of the final plan approval, OHCS bond-financed projects require review and
approval of the final construction documents. This includes complete specifications and the
construction contract when they become available. Refer to the applicable OHCS Loan




2012 Consolidated Funding Cycle Application                                         Page 67 of 286
Documents for construction inspections and other architectural requirements specific to the
Loan Programs.
Architectural review submission requirements for rehabilitation projects are included in
the Rehabilitation Assessment Standards which follow the visitability materials in this
section.




2012 Consolidated Funding Cycle Application                                      Page 68 of 286
                       ARCHITECTURAL DESIGN REQUIREMENTS

Introduction

The OHCS Architectural Design Requirements are designed to support safe, livable and well-
designed projects built for long-term viability. The requirements must be met for the project to
meet architectural design approval. Request exceptions in writing. Include a thorough and
compelling explanation for each instance a particular requirement cannot be met.

Some of the language below is italicized. These items are alternate suggestions for meeting
some of the architectural requirements, or specific modifications to the requirements based on
particular conditions. Applicants are to make every effort to accomplish the intent of these
standards.

Project Context

The project must demonstrate site-specific planning that will protect livability, long term viability
and the investment of public resources.

Site Design Requirements

A. SITE SAFETY

       Locate units so pathways from parking areas to units are direct and safe at night. Avoid
        pathways that pass through other residents’ outdoor space or within ten feet of ground
        floor dwelling unit windows.
       Locate the buildings, when possible, so unit front entries are visible from the street or
        the parking area used by visitors and emergency vehicles.
       Design vehicular traffic and parking to minimize paved surface area and to minimize
        noise and safety issues for residents, especially children. Design roadways to
        discourage excessive vehicular speed.
       Provide visual and sound buffers between residential uses and incongruent uses on
        adjacent sites, e.g. industrial buildings and highways.
       Provide lighting on site to ensure safety of cars and residents at night. Locate fixtures to
        avoid shining into apartment windows.

B. PLAY AREAS

       Provide, if family housing, one or more on-site play areas for children under six years old
        that are visible from as many dwelling units as possible.
       Avoid locations that require children to cross parking lots and/or driveways to reach play
        areas.
       Provide places for adults to sit near these play areas.

C. LANDSCAPING

       Locate plant materials to enhance the livability of the development.




2012 Consolidated Funding Cycle Application                                           Page 69 of 286
      Use plants to reinforce the separation of individual private outdoor spaces from
       community areas, to buffer cars from community outdoor space, to buffer noise, and to
       prevent soil erosion.
D. BUILDING ORIENTATION
      Orient units so every unit receives maximum daylight given the overall site development
       and specific architectural scheme.
      Organize buildings and units so that unit fronts face unit fronts and unit backs face unit
       backs, to increase the opportunity for useful common space and for privacy of
       bedrooms.
      Minimize the use of stairs on sloped sites between parking and unit entries.
      Use the topography wherever possible to gain level entry at different floors.

E. TRASH

      Provide trash holding areas that are both serviceable by truck and accessible to
       residents. Screen dumpsters from public view.
      Balance convenience to residents with adequate separation from living areas to avoid
       odor problems.

F. PROJECT SIGN

      Provide a project sign during construction which identifies the project and includes the
       Oregon Housing and Community Services name and logo as a source of funding.
      Provide a sign identifying the US Department of HUD if HOME funds are in the project
      Provide a sign with the Oregon Housing and Community Services name and logo type
       size no smaller than the other funders listed.
BUILDING DESIGN REQUIRMENTS

A. OVERALL CONSIDERATIONS

      Design the building(s) with appropriate articulation of massing and roof line to be visually
       appealing and compatible with the neighborhood context.

B. BUILDING and UNIT EXTERIORS

The following should be employed when designing building and unit exteriors:

      Use exterior materials that are compatible with the project’s context and have an
       excellent track record for performance under a variety of weather and use conditions.
       Acceptable siding materials include wood, cement fiber or vinyl lap siding, wood or
       cement fiber panel siding with battens applied horizontally and/or vertically, brick or
       textured concrete masonry units.
      Use materials other than Stucco and Synthetic stucco (EIFS) products as they are not
       approved for OHCS-funded projects.




2012 Consolidated Funding Cycle Application                                        Page 70 of 286
      Provide wood casement trim around doors and windows of buildings that have wood or
       fiber cement exteriors.
      Limit roof penetrations, when possible, to surfaces away from public view.
      Screen mechanical equipment from public view.
      Delineate the main building entrance as an inviting focal point by using forms and
       materials consistent with the building design.
      Provide every unit with its’ own exterior front door (except in apartment buildings with
       interior corridors) Include a front porch or covered landing sized to permit personal
       display and temporary placement of items being carried in and out of the unit.
      Provide a private outdoor space of at least 6 feet by 10 feet for each unit (backyard,
       porch or balcony) with direct physical and visual access from family living space.
       Buildings in zero-lot-line urban contexts may explore substituting smaller balconies,
       belevederes or bay windows when full-sized balconies are not practicable on the upper
       floors. Increased habitable common outdoor space may be substituted when all of the
       units cannot have private outdoor space.

C. PRIVACY

      Provide privacy between individual yards or patios with screens of fencing and
       landscape, or tall, thick landscaping at least six feet high.
      Minimize views from upper windows and balconies of one unit into the outdoor space or
       windows of another unit.
      Provide each unit with its’ own entry path.
      Avoid shared entry pathways where the residents of one unit must walk across the
       welcome mat of their neighbors.
UNIT DESIGN REQUIREMENTS

A. COMMON SPACES AND FURNISHINGS

      Design common living spaces (kitchen, dining area and living room) to accommodate the
       maximum number of people who might reside in the unit. (i.e. a dining area in a three
       bedroom unit needs to be larger than the dining area in a two bedroom unit).
      Design kitchens in three bedroom units to accommodate more than one person in the
       space at the same time.
      Configure bedroom windows, doors, and heat sources so residents can furnish every
       bedroom with two twin beds. OHCS may allow minor exceptions for bedroom sizes on
       an individual basis, depending on the population served.

B. CIRCULATION

      Design circulation through the unit to be as efficient as possible, incorporating it into
       living spaces, wherever possible, without diminishing furnishability and use of rooms.
       (An easily furnished room is one with uninterrupted walls and at least two corners and
       ideally three corners).




2012 Consolidated Funding Cycle Application                                        Page 71 of 286
      Create a clear transition at the entry between semi-public and more private space. This
       can be accomplished with a porch, a foyer or a vestibule at front door so that the
       dwelling unit entry is separate and distinct from the dwelling unit common spaces.
       Provide a circulation path between bedrooms and bathrooms that does not pass
       through the common living area or other bedrooms. Bathrooms shall not be accessed
       directly from common living areas. Exceptions are studio or SRO units. Circulation to
       the bathroom in one-bedroom units may skirt the common space as long as the ability to
       furnish is not compromised.

C. BATHROOMS

      Provide a minimum of 1.5 bathrooms in three bedroom units.
      Provide two full baths in four bedroom units.

   In either case above, at least one bathroom shall have a tub.

      Provide in townhouse units with two or more bedrooms, a ½ bath on the lower floor to
       serve the living/dining area (See the requirements for visitability).
      Provide no more than one full bathroom in two-bedroom flats unless an exemption has
       been obtained from OHCS. Exemptions will be granted when OHCS determines the
       additional bath is required for the target population(s). OHCS will consider specific
       exemptions on a unit-by-unit basis when a “Request for Exemption from Requirements”
       is included in the application.

D. ELEVATORS

      Provide elevators in buildings of three or more stories.
      Provide elevators in buildings of two stories that serve the elderly and/or disabled where
       units are evenly distributed between floors. “Townhouse over flat” designs totaling three
       stories need not provide elevators. Three story garden style buildings with twelve or
       fewer units per building do not need an elevator if they do not require accessibility for
       tenants with mobility impairments to the upper floors.

E. STORAGE

      Provide interior and exterior storage. Lack of adequate interior and exterior storage may
       also affect the long term unit marketability.

Include the following minimums:

      Provide a coat closet near front door.
      Provide linen storage near bedrooms and bathrooms. This can be accomplished with
       closet space or with built-in cabinets/shelves in the bathroom or laundry room.
      Provide interior bulk storage. Where feasible, provide 50 sq. ft. for two and three
       bedroom units and 60 sq. ft. for four bedroom units. Closet space in excess of the
       minimum may be counted toward this requirement. The bulk storage requirement may




2012 Consolidated Funding Cycle Application                                       Page 72 of 286
       also be partially satisfied by providing safe and convenient individual lockable interior
       storage elsewhere in the building.
      Provide Bedroom closets a minimum size of 2’ x 5’.
      Provide exterior bulk storage, to the extent feasible and where appropriate to the
       population, at a minimum of 20 sq. ft.
      Locate the outdoor storage space conveniently, near the door, porch, balcony or patio.
       Exterior storage is not included in unit floor area calculations.

F. NATURAL LIGHT

      Maximize the availability of natural light available to each unit.
      Provide natural light in every room or activity space possible, including dining areas and
       sleeping alcoves. Exceptions are the kitchens and baths.

G. LAUNDRY

      Provide a washer and dryer in family housing, or at least provide washer and dryer
       hookups in each unit.
      Provide convenient and accessible laundry rooms in projects without washers and
       dryers in the units.

H. ACOUSTIC SEPARATION

      Provide an acoustically controlled environment relative to exterior noise as well as noise
       from adjacent units and public spaces.
      Construct walls between apartments with staggered studs and sound attenuating
       insulation or resilient channels with sound attenuating insulation to minimize structure
       borne and airborne transmission of sound.
      Provide resilient channels with sound attenuating insulation ceilings between
       apartments.

I. BATHROOM AND KITCHEN EXHAUST

      Provide bathrooms with ceiling exhaust fans and kitchens with range hood exhaust fans.
      Connect all mechanical exhaust systems directly to the outside. Professionally
       engineered alternate systems that provide good bathroom and kitchen ventilation are
       acceptable, particularly for urban mid-rise buildings.

J. MINIMUM AND MAXIMUM UNIT FLOOR AREAS

      Design dwelling units large enough to accommodate the intended population.
      Provide unit designs that make efficient use of public resources.
      Draw and submit typical furniture arrangements on plans to ensure and demonstrate
       adequate function of all spaces.




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The following table shows the minimum floor areas required and maximum floor areas OHCS
requires for CFC-funded projects:

See the APPENDIX for approved methods in calculating unit floor area. Exterior storage is not
included in the unit floor area calculations.

      Unit Type            Minimum Required        Maximum Allowable        Maximum Allowable
                            Unit Floor Area         Unit Floor Area           Floor Areas for
                                                                             Townhouses and
                             (Square Feet)            (Square Feet)          Accessible Units

SRO                               175

Studio                            350

1 Bed / 1 Bath                    600                      690                      740

2 Bed / 1 Bath                    800                      900                      950

3 Bed / 2 Bath                   1,000                    1,200                    1,250

4 Bed / 2 Bath                   1,250                    1,400                    1,450

ALF/RCF Studio                    300

ALF/RCF 1 Bed                     450

OHCS will only consider projects that meet both the minimum and maximum unit floor area
requirements for funding. If a “Request for Exemption from Minimum or Maximum Unit Floor
Area Requirements” is included with the application. OHCS will consider exemptions on a unit-
by-unit basis if.

While OHCS strongly supports the efficient use of financial and material resources for all
projects, maximum allowable unit floor area requirements apply only to projects seeking CFC
funding. Projects submitted for OHCS bond funding are not affected by the maximum floor area
allowances. Regardless of the funding source, the minimum unit floor area requirements apply
to all projects.

Green Building Requirements

Applicants must include green building requirements when developing the project plans.
Applicants will be expected to follow through with the green building path they chose. If
applicants are unable to complete that path, they must request approval to choose a different
path. OHCS reserves the right to rescind resources if green building activities are not followed.

OHCS has established a process that connects the applicant to three existing green building
paths available throughout the state. In addition, OHCS has established a fourth green building




2012 Consolidated Funding Cycle Application                                       Page 74 of 286
path for those projects which cannot be served by any of other three programs. The three
green building programs selected are Enterprise Green Communities, Earth Advantage Homes,
and LEED for New Construction or Homes. Applicants must choose to work within one of the
four processes. Listed below is contact and process information for each program. This is
followed by a brief description of OHCS’ green building criteria. The list of specific OHCS
criteria is on the Green Building Checklist found in the Self Scored section.

OHCS has listed the following Enterprise Green Communities, Earth Advantage and LEED
program information as a courtesy. OHCS takes no responsibility for the accuracy of the
program material. Requirements or criteria may have been updated by any of the program
providers. Applicants should confirm the provider’s expectations before committing to a specific
program.
Enterprise Green Communities (“Enterprise GC”)

      Addresses new construction and major rehabilitation (replacement of one or more major
       systems).
      Project must have at least 25 rental apartments occupied by households at or below 60
       percent AMI to qualify.
      Rehabilitation projects must undergo an energy audit that identifies baseline energy
       performance of existing measures and anticipated energy improvement from proposed
       new measures.
      Applicants are strongly encouraged to engage a contractor to review design materials,
       walk the project site, discuss green building intentions and obtain a rough cost estimate
       of total and green building-related project costs.
      Applicants may also benefit from an early project brainstorm session or “Eco-Charrette”
       with a team of experts and stakeholders to help them identify approaches to achieve
       Green Communities certification.
      Enterprise GC has grants available to assist with costs from Eco-Charrettes and pursuit
       of certification.
      Projects not selected for CFC funding may still pursue Enterprise GC certification and
       incentives.
      Successful applicants will be required to register the project with Enterprise within 60
       days of notification of a successful CFC application.
      Signed verification of registration must be provided to OHCS within 75 days of that
       notification.
      All successful applicants will receive Enterprise’s reporting and verification of green
       building certification requirements for OHCS but will not exceed those already required
       by the Enterprise GC program.
      Enterprise GC certification requires the project architect and/or engineer sign a template
       to verify that each selected criteria has been implemented into the project. No additional
       supplemental documentation is required.
      Enterprise reviews and confirms the submitted materials and the project is then certified




2012 Consolidated Funding Cycle Application                                       Page 75 of 286
         The applicant is responsible to forward the proof of certification to OHCS.

Program requirements are available at: www.greencommunitiesonline.org/tools/criteria/

or:

Enterprise Community Partners
520 S. W. Sixth Avenue, #700
Portland, Oregon 97204
Phone: 503 223-4848
Earth Advantage Homes (“EA”)
Addresses single and multi-family new construction
         Projects that pursue the EA compliance path must have an initial EA consultation.
         Applicants are strongly encouraged to engage a contractor to review design materials,
          walk the project site, discuss green building intentions and obtain a rough cost estimate
          of total and green building-related project costs.
         Successful applicants will be required to register the project with EA within 60 days of
          notification of the successful CFC application.
         Signed verification of registration must be provided to OHCS within 75 days of
          notification.
         All successful applicants will receive EA’s reporting and verification of green building
          certification requirements for OHCS but will not exceed those already required by EA.
         EA certification requires approximately 2-3 total field inspections during and after
          construction and review of the final green building worksheet by an EA representative.
         No additional supplemental documentation is required.
         EA reviews and confirms the submitted materials and the project is then certified.
         The applicant is responsible to submit the certification to OHCS.

Program requirements are available at www.earthadvantage.org/ or:

Earth Advantage National Center
16280 S. W. Upper Boones Ferry Rd
Portland, Oregon 97224
Attn: Duane Woik
Phone: 503 968-7160, x-14

Earth Advantage (So. Oregon)
715 Sunrise Street
Ashland, Oregon 97520-3349
Attn: Fred Gant
Phone: 541 840-8302
Earth Advantage (Central Oregon)
345 Century Drive, #20
Bend, Oregon 97702




2012 Consolidated Funding Cycle Application                                             Page 76 of 286
Attn: Bruce Sullivan
Phone: 541 480-7303

Earth Advantage (Valley)
2695 Madison Street
Eugene, Oregon 97405
Attn: Eli Volem
Phone: 541 510-9310

LEED Certification (“LEED”)

Applicants that pursue LEED for New Construction certification automatically comply with the
CFC Green Building Standard. LEED projects are anticipated to meet or exceed the
performance sought by the Earth Advantage and Enterprise Green Communities baseline
compliance paths. These projects must submit a completed LEED scorecard, CFC Green
Building Worksheet, proof of project registration with the U.S. Green Building Council (USGBC)
or a signed statement of intent to register the project with the USGBC for LEED for New
Construction or Homes program within 60 days of notification of a successful CFC application.

Program requirements are available at: www.usgbc.org/.



OHCS Path for Acquisition/Rehabilitation or Acquisition only projects

The OHCS Path addresses other projects not eligible for participation in the other three
programs. If a project is ineligible for Enterprise Green Communities, Earth Advantage or LEED
Certification, applicants must work with OHCS path in the CFC Self-Scored Section.
      Applicants must submit the Green Building Worksheet in the CFC application.
      Successful applicants may be required to provide a completed third party energy audit to
       OHCS within 75 days of notification of funding; and
      Submit specified evidence at project closing that verifies work was completed as stated.




2012 Consolidated Funding Cycle Application                                     Page 77 of 286
ARCHITECTURAL REHABILITATION STANDARDS

OHCS standards for rehabilitation projects are goal-oriented. The goal of project rehabilitation
is to improve the property to maximize its expected useful life for residents. In addition to
immediate rehabilitation, an assessment of repairs, maintenance and product replacement over
time must be planned and included.

The OHCS goal is for affordable housing projects to be built in such a manner that they sustain
themselves for 30 years without need of significant rehabilitation work. This will require careful
design, materials selection and oversight by project architects, contractors and owners to
ensure the affordable housing projects, including building envelopes and all structural
components, have the necessary sustainability to last for 30 years with industry standard
maintenance schedules.

OHCS has found in recent years that construction costs, especially for rehabilitation projects,
often exceed the original estimates. The process of providing and approving additional awards
after the start of construction affects OHCS’ ability to fund other projects. OHCS may not be
able to award additional funds to sponsors that are over-budget on construction costs.
Architectural Rehabilitation Submission Requirements
Rehabilitation/Capital Needs Assessment
      Rehabilitation Scope of Work
      Pest and Dry Rot Inspection Report
      Roof Inspection Report
      Estimate of probable rehabilitation cost. (Place in Part 11 of CFC application)

OHCS requires a thorough rehabilitation assessment for all rehabilitation grant, loan or tax
credit applications. A thorough Rehabilitation/Capital Needs Assessment will help determine
the appropriate rehabilitation scope of work and the estimate of probable rehabilitation cost.

The assessment must examine the following major building components and describe the work
necessary to bring each building component to the level of maximum expected life span:

      Roof and roof substructure
      Accessibility features
      Exterior walls (building envelope)
      Pest and dry rot inspection
      Insulation
      Interior spaces: appliances and structural elements
      Foundation
      Structure: basement, substructure, super structure, crawlspaces
      Electrical systems
      Plumbing systems
      Heating systems
      Site: parking, landscaping, common areas, lighting, security




2012 Consolidated Funding Cycle Application                                        Page 78 of 286
Applicants must meet the requirements of HUD 24 CFR 5.703 (uniform physical condition
standards for public housing).

Deferred maintenance may be done as part of a more substantial rehabilitation effort, but OHCS
strongly discourages the use of tax credits for the purpose of addressing deferred maintenance.

After reservation of funding is made, OHCS may, at its discretion, complete a unit by unit
inspection of developments with proposed rehabilitation to assure there is an adequate scope of
work.

OHCS encourages applicants of acquisition and rehabilitation projects to complete a
replacement schedule prior to application.

 Depending on the extent of rehabilitation and the condition of the project, OHCS may require
an analysis of cash flow and expenditures for the depreciable portions of the project. If
requested, OHCS will provide technical assistance in the completion of this analysis.
Rehabilitation Assessment Criteria

The Rehabilitation Assessment must be in a narrative form that addresses the following major
components:
   Critical repair items: All health and safety deficiencies, or violations of Housing Quality
    Standards (or Uniform Physical Inspection Standards), requiring immediate remediation.
   Two-year physical needs: Repairs, replacement and significant deferred and any other
    maintenance items that need addressed within 24 months of the date of the RA.
    Include any necessary redesign of the project and market amenities needed to restore the
    property to a reasonable standard of livability. Include these repairs in the development
    budget and fund with construction-period fund sources.
   Long term physical needs: Repairs and replacements beyond the first two years that are
    required to maintain the project’s physical integrity over the next 30 years, such as major
    structural systems that will need replacement during that period. These repairs are to be
    funded from the Replacement Reserves Account.
   Analysis of reserves for replacement: An estimate of the initial and monthly deposit of
    the Replacement Reserves Account needed to fund long-term physical needs, accounting
    for inflation, the existing Replacement Reserves Account balance, and the expected useful
    life of major building systems. This analysis should not include the cost of critical repair
    items, two-year physical needs or any work items that would be treated as normal
    maintenance or repair expense.

Applicants must adequately complete the following:
   Conduct site inspections of 100 percent of all units (a lesser percentage may be allowed at
    OHCS' discretion).
   Identify any physical deficiencies as a result of a) visual survey, b) review of pertinent
    documentation, and c) interviews with the property owner, management staff, tenants,
    community groups and government officials.
   Identify physical deficiencies, including critical repair items, two-year physical needs and
    long term physical needs. These should include repair items that represent an immediate
    threat to health and safety and all other significant defects, deficiencies, items of deferred
    maintenance, and material building code violations that would limit the expected useful life
    of major components or systems.




2012 Consolidated Funding Cycle Application                                         Page 79 of 286
   Explain how the project will meet the requirements for accessibility to persons with
    disabilities.
   Identify physical obstacles and describe methods to make the project more accessible,
    listing needed repair items in the rehabilitation plan.
   Prepare a rehabilitation plan, addressing all two-year and long term physical needs
    separately.
   Prepare a replacement reserve schedule, including an estimate of the initial and annual
    deposits, accounting for inflation and based on a 30-year term.

The applicant should engage the services of independent 3rd party professionals, currently
licensed in the state of Oregon, to perform the property inspections and prepare the Rehab
Assessment. Applicants typically contract with a licensed architect or licensed residential
property inspector* (CCB Lic# + OHCI Lic#) to provide most of the inspection services and write
the Rehab Assessment. Additional support services including construction cost estimates, roof
inspections, Pest & Dry Rot inspections, structural assessments, etc. can be provided by
general contractors, roofing contractors, Pest & Dry Rot inspectors** and licensed engineers
(structural, mechanical and/or civil).

*Home Inspectors providing rehab assessments should have an Oregon Construction
Contractor’s Board (CCB Lic#) and an Oregon Certified Home Inspector (OCHI Lic#) printed on
the cover or first page of their inspection report.

**Pest & Dry Rot Inspectors should have an Oregon Department of Agriculture (ODA Lic#)
and/or a Pest Control Operator (PCO Lic#) printed on the cover or first page of their inspection
report.
The premise for calculating the needs and capacity for the replacement reserve fund
should be guided by the following:
 OHCS expects projects will be maintained at a level comparable with the condition at the
   time the project was placed in service (for new construction- at the completion of
   construction; for rehabilitation- at the completion of rehabilitation).
 Repairs and replacements must be accomplished when items are damaged or show
   excessive wear due to use or age.
 Replacements must be “as good as new” or at least up to the original quality. OHCS realizes
   in occupied units it may be more difficult to accomplish extensive repairs and replacements
   (this will be evaluated on a case-by-case basis).
 Projects must be comparable in appearance to non-subsidized multi-family housing in the
   area with similar rents.
 Inspections are performed by OHCS as required by program regulations and loan regulatory
   documents. These inspections are intended to provide OHCS a mechanism to address
   deficient findings.




2012 Consolidated Funding Cycle Application                                       Page 80 of 286
VISITABILITY

Oregon policy, as enacted by ORS 456.510, “encourages the design and construction of
dwellings that enable easy access by individuals with mobility impairments and that allow
continued use by aging occupants".

New construction projects receiving funding from OHCS are subject to requirements for
Visitability. Although OHCS strongly encourages Visitability for all projects, the Visitability Rule
does not apply to:

      rehabilitation projects;
      projects receiving funding only from OHCS bond financing and/or non-competitive tax
       credits; or
      farmworker housing on a farm.

However, newly constructed units and newly constructed community spaces in rehabilitation
projects are subject to requirements for Visitability.

"Visitable" means able to be approached, entered and used by individuals with mobility
impairments, including but not limited to individuals using wheelchairs.

Units in projects that meet the requirements of the federal Fair Housing Act. Fair Housing
addresses "Accessibility" standards, which exceed most requirements for Visitability, meet the
visitability requirements. Since 1991, The Fair Housing Accessibility Guidelines have provided
"safe-haven" specifications for meeting requirements of the Fair Housing Act.

Visitability requirements closely follow Fair Housing Accessibility Guidelines.
The following is a summary of the differences between the Oregon Visitability Rule and
the requirements of the Fair Housing Act:

      The Visitability Rule applies to new construction of OHCS-subsidized rental projects of
       one or more units, including Group Homes. The Fair Housing Accessibility Guidelines
       apply to rental buildings of four or more units.
      The Visitability Rule applies to all ground floor units, the ground floors of multi-story
       units, and to all units in elevator buildings. Multi-story units are exempt from the Fair
       Housing Accessibility Guidelines.
      The basis for exemption from the Visitability Rule includes conflicting community design
       standards, undue cost constraint and other exemptions related to timing and funding.
       Fair Housing exemptions are based only on Site impracticality.

Site and Building Requirement Differences:

      The Visitability Rule requires a Visitable Route to all ground floor units, the ground floors
       of multi-story units, and to all units in elevator buildings. Multi-story units are exempt
       from the Fair Housing Accessibility Guidelines.
      The Visitability Rule requires edge protection for walks, patios and plazas that are 12" or
       higher than the adjacent grade.




2012 Consolidated Funding Cycle Application                                          Page 81 of 286
      For ramps not covered by other, more stringent requirements, the Visitability Rule does
       not require handrail extension, requires handrails only on one side of ramps and permits
       a ramp cross slope not to exceed 3 percent.
      In most circumstances, the Visitablity Rule requires 24 hour access for residents and
       their guests on-site, fully accessible powder room in projects of 20 or more contiguous
       units. Fair Housing has no such provision.
Unit Requirements
      The Visitability Rule requires Visitability in all ground floor units, the ground floors of
       multi-story units, and all units in elevator buildings. Fair Housing exempts multi-story
       units.
      The Rule requires a visitable route between a visitable unit entrance and at least one
       visitable common living space. Fair Housing requires accessibility to all spaces within a
       unit.
      The Rule requires at least one bathroom or powder room in each unit to be Visitable.
Relationship with other federal and state accessibility requirements
      Where existing federal and state requirements conflict with Visitability Requirements, the
       more stringent regulations apply.

The information above is intended to clarify the impact of the Visitability Rule on projects that
will be designed to already meet Fair Housing Act requirements



Visitability Requirements

The visitability requirements are organized according to site, building and unit to coincide with
the other architectural requirements. These sections are followed by specific information
regarding Exemptions to the Visitability Requirements. The requirements are based on the
Oregon Administrative Rule governing Visitability (OAR 813-310). The text of the entire Rule
can be found on the OHCS website at: www.ohcs.oregon.gov.



Site and Common Space Visitability

Visitable Exterior Route Requirements

Each unit must be connected to common use areas (such as parking, lobbies, mailboxes,
management offices, recreational facilities, laundries and garbage and recycling areas) by a
visitable exterior route.

      Walk, Ramp and Curb Ramp Requirements.
      Walks- Walks along a visitable exterior route must meet the following criteria.
      Slope and Rise - The slope of a walk must not exceed one unit vertical in 20 units
       horizontal (5 percent slope).




2012 Consolidated Funding Cycle Application                                          Page 82 of 286
      Cross Slope - The cross slope of a walk must not exceed one unit vertical in 33 units
       horizontal (3 percent slope).
      Edge Protection - Along a visitable exterior route, a continuous 2 inch high curb is
       required on the edge of walks that are 12 inches or higher above the adjacent grade.
       This applies to both flat and sloped portions of walks, regardless of size, as well as flat
       areas such as plazas and courts.
      Sloped walks that require a curb, the height of the curb must gradually taper until the
       walk is no higher than 2 inches above adjacent grade. See Figure #1.


Ramps- Ramps along a visitable exterior route must meet the following criteria:

      Width- the minimum clear width of a ramp must not be less than 36 inches.
      Slope-The maximum slope of a ramp must not exceed one unit vertical in 12 units
       horizontal (8.33 percent slope). The maximum rise for any single run can be no greater
       than 30 inches.
      Cross Slope - The cross slope of a ramp can be no greater than one unit vertical in 33
       units horizontal (3 percent slope).
      Surface- Ramps along a visitable exterior route must have a firm, stable, slip resistant
       surface.
      Landings- Ramps along a visitable route must have landings at the top and bottom, and
       at least one intermediate landing for each 30 inches of rise. Landings must have a
       minimum dimension, measured in the direction of travel of 60 inches. The width of any
       landing may not be less than the width of the ramp. Where the ramp changes direction,
       the minimum size of the ramp must be 60 inches by 60 inches.
      Handrails- Each ramp required for Visitability must have a handrail on at least one side.
       Ramps with a total rise of 12 inches or less or a horizontal projection of 12 feet or less
       are not subject to the handrail requirement.
      Curb ramps are not subject to the handrail requirement. Required handrails must be
       built and installed to meet the specifications set forth in Chapter 11, Division II-
       ELEMENT REQUIREMENTS, of the OREGON STRUCTURAL SPECIALTY CODE;
       (Oregon UBC) a handrail for Visitability need not include extensions beyond the length of
       the ramp and landing. See Figures and #2 #3.
      Ramps - Ramps are required where curbs lie along a visitable route.
      Width- Curb ramps must have a minimum width of 36 inches.
      Slope - Curb ramps can have a maximum slope of 1 unit vertical to 12 units horizontal.
       Transitions from curb ramps to walks; gutters and vehicular ways must be flush and free
       of abrupt changes in height.
      Side Slopes - Curb ramps located where pedestrians walk across the ramp must have
       sloped sides whose slope does not exceed 1:10.
      Surfaces - Curb ramps along visitable exterior routes must have a firm, stable, slip
       resistant surface.




2012 Consolidated Funding Cycle Application                                         Page 83 of 286
      Location - Curb ramps must be built so as not to project into vehicular ways or be
       located within accessible parking spaces.


Visitable Community Powder Room Requirements

A Fully Accessible (by ADA Standards) community powder room must be provided in a
development with 20 or more contiguous units.

The community powder room must be available for use 24-hours per day, 7 days per week. This
availability may be provided by on-site or on-call staff, through the use of keys, keypads or
electronic code locks, or by other means, as approved by OHCS.
Visitable Exterior Entrance Requirements

Each dwelling unit must have at least one visitable entrance that meets the following criteria:

      Exterior Door Width - An exterior door must have a clear opening of at least 32 inches.
      Threshold- The maximum allowable threshold height is ¾ inch for exterior sliding doors
       and ½ inch for all other exterior doors. The thresholds should be beveled down to
       adjacent surfaces at a rate not greater than 1:2.
      Adjacent Surfaces - Each visitable entrance must have a flat surface immediately
       adjacent to and level with the entrance. On the exterior, the surface may be sloped for
       drainage at 1:50 maximum (a 2 percent slope). The surface must be at least 36 inches
       wide and at least 48 inches deep in the direction of travel on the push side of the door.
       On the pull side of the door, it must be at less than 60 inches deep in the direction of
       travel. Where the door is not in the direction of travel, the minimum size of the flat
       surface must be 60 inches by 60 inches. See Figures #4 and #5.


Visitable Unit Interior Requirements

Each unit must have the following minimum characteristics for Visitability:

      One or more visitable routes between the visitable dwelling unit entrance and a visitable
       common living space.
      Hallways along a visitable route must have a minimum clearance of 36 inches, and
       doorways along that route must have a minimum clearance of 32 inches.
      Light switches, electrical outlets and environmental controls in the dwelling units must
       be installed no lower than 15 inches, or any higher than 48 inches, above the adjacent
       floor level.
      One or more visitable routes between the dwelling unit entrance and a Powder Room.


Powder Room with the following characteristics: See Figure #6.

      A door that does not block access along the visitable interior route, and does not block
       the reasonable use of the fixtures in the powder room.




2012 Consolidated Funding Cycle Application                                        Page 84 of 286
      Walls that are reinforced in a manner suitable for grab bar installation.
Group Home Visitability Requirements

For the purposes of Visitability, Group Homes are generally considered to be a single unit. A
Group Home requires only one visitable exterior route, one visitable entrance, one visitable
interior route to a Common Space and one visitable Powder Room.
Exemptions from the Visitability Requirements

OHCS may grant requests for exemptions from the Visitability Requirements, based on specific
conditions and for specific reasons.

Exemptions may be requested for the following conditions:

      Adverse Topography- An exemption from Visitability Requirements may be considered
       if topography or other site considerations (flood plains, conservation areas) make
       compliance impracticable. An exemption might also be warranted if specific site
       conditions require expensive deviations from accepted construction methods.
      Significant Financial Aid from Another Government Agency- An exemption from
       Visitability Requirements may be considered if another agency contributes a significant
       amount of financial aid to the housing. The financial aid becomes significant if it includes
       funding for at least 25 percent of the anticipated total development cost at the time of
       initial funding, or project based rental assistance for a minimum of 50 percent of the units
       for an anticipated period of multiple years.
      Undue Cost- An exemption from Visitability Requirements may be considered if
       additional construction costs, directly attributable to meeting the Visitability Rule, are
       unreasonably above and beyond the normal costs of meeting OHCS’ other Architectural
       Requirements. In order to be considered undue, the additional costs must exceed
       $1,000 per unit, or $2000 if associated with providing a Community Powder Room.
      Undue Constraints- An exemption from Visitability Requirements may be considered if
       financial or other factors exist that may inappropriately limit the development or its
       operation. Factors OHCS may consider in making such a determination include, but are
       not limited to:
      Application of these rules may result in a loss of units.
      Application of these rules may result in a need to raise rents by a significant amount
       (loss of affordability).
      Application of these rules may result in a significant increase in maintenance or ongoing
       expense.
      Community and Design Standards -An exemption or partial exemption may be
       considered if local government development codes or legally binding CCRs (covenants,
       conditions and restrictions) contradict the Visitability Requirements. Neighborhood or
       Management design preferences are not included.
      Alternative to 24 hour Common Powder Room Availability- An exemption from the
       requirement to make the community powder room available for use 24-hours per day




2012 Consolidated Funding Cycle Application                                        Page 85 of 286
       may be considered if each of the visitable units includes an adaptable powder room, as
       defined in Chapter 11 of the Oregon Structural Specialty Code (The Oregon UBC), and o
       has at least one properly installed grab bar on the wall beside the toilet.

Partial Exemptions

OHCS encourages Applicants to apply visitability to the greatest degree possible. The final
approval of an exemption or partial exemption request may be given for more or less than
requested.

Partial Exemption from meeting all of the Visitability Requirements

OHCS may grant an exemption for one aspect of the Visitability requirements without granting
exemption from the other project visitability requirements

Partial Exemption from Full Compliance with Visitability Requirements

OHCS may grant a partial exemption from full compliance with any Visitability requirement. A
partial exemption may be given for a ramp that cannot meet the Visitability standard. The
applicant will still be required to meet a certain standard which may be the best that can be
achieved under the circumstances.

Partial Exemption for One or More Unit

OHCS may grant an exemption or partial exemption for one or more of the units. One unit may
require an exemption while other units do not merit such an exemption.

Visitability Request Form

To request an exemption from any aspect of the Visitability Requirements, complete the OHCS
Visitability Request Form found in this packet. Answer each question, providing a complete and
thorough justification for the exemption request. Use additional sheets if necessary.

Timing of Exemption Requests

Exemption requests must be made at the time of the CFC application. OHCS may consider a
request made after application if the applicant can show there were conditions they could not
have been anticipated.

Examples of post application exemption:

      A late request might be justified if adverse sub-surface conditions are encountered
       during construction and could not have been anticipated by the geotechnical
       investigation prepared for the original application.
      A late request for exemption from the 24 hour community powder room requirement may
       be justified operational or management issues associated with maintaining availability
       could threaten to pose undue constraints on the project.




2012 Consolidated Funding Cycle Application                                      Page 86 of 286
                   CURB
                                                                          PROVIDE CURB




                                                         2"
                                                                          IF DROP IS 12"
                                                                          OR GREATER




                                                              12"
WALKING
SURFACE




                                                                                   Fig. 1

                          EDGE PROTECTION FOR WALKS,
                           RAMPS, PATIOS AND PLAZAS
                                               not to scale




 RAILING                                                            RAILING EXTENSION
 EXTENSION IS NOT                                                   IS NOT REQUIRED
 REQUIRED


                                      RAMP RAILING
                                              ELEVATION

                                              not to scale                                 Fig. 2




2012 Consolidated Funding Cycle Application                               Page 87 of 286
       RAILING IS REQUIRED                                                  WALKING
       ON ONE SIDE ONLY                                                     SURFACE




                                    RAMP RAILING
                                          SECTION

                                          not to scale


                                                                                                Fig. 3




  DIRECTION OF TRAVEL

          PULL SIDE
                                                                 60 " MIN




       DIRECTION OF
                                                                 48" MIN




          TRAVEL

           PUSH SIDE




DIRECTION OF TRAVEL
                                 36" MIN
       PULL SIDE

                             CLEARANCE AT EXTERIOR DOORS
                               DOOR IS IN THE DIRECTION OF TRAVEL
                                                                                               Fig. 4
                                                  not to scale


 2012 Consolidated Funding Cycle Application                                          Page 88 of 286
                                              60 " MIN




                                                                60 " MIN
                                                                           DIRECTION OF
                                                                           TRAVEL




                                                                48" MIN
     DIRECTION OF TRAVEL




                           CLEARANCE AT EXTERIOR DOORS
                           DOOR IS NOT IN THE DIRECTION OF TRAVEL                         Fig. 5

                                                 not to scale




2012 Consolidated Funding Cycle Application                                     Page 89 of 286
                                                                ANGLE OF STAIRS

OUTLINE OF DOOR
ON OPPOSITE
WALL




                                       ELEVATION

                                                             REINFORCE THESE WALLS
                                                             FOR POSSIBLE FUTURE GRAB
                                                             BARS




SWING THIS DOOR 180
DEGREES TO PERMIT
WHEEL CHAIR TO PASS
BY



                     VISITABLE UNDER-STAIR POWDER ROOM
                                  PLAN
                                      MINIMUM CLEARANCES                                    Fig. 6

                                              not to scale


2012 Consolidated Funding Cycle Application                                Page 90 of 286
                                          APPENDIX
Calculating Unit Floor Area

Calculate Floor areas for each unit using the following methods, based on the unit placement in
a particular building:

      Outside face of exterior wall to outside face of exterior wall.
      Outside face of exterior wall to center of party wall.
      Outside face of exterior wall to hall face of corridor wall.
      Center of party wall to center of party wall.
      All interior spaces, walls, structural elements and voids will be included in the calculated
       floor area, except as specifically excluded below.
Exclusions:

      In multi-story units, the floor area dedicated to stairs should only be counted once, for a
       total maximum exclusion of 50 (fifty) square feet.
      Vertical Mechanical and Electrical chases will be excluded from unit floor area
       calculations.
      Balconies, porches, patios and exterior storage spaces will be excluded from unit floor
       area calculations.


Calculating Room Floor Area (Net Useable Area)

      Floor area for each room will be calculated by measuring to the inside face of each wall.


Calculating Total Building Floor Area (Gross Area):

      Total building floor area will be the sum of the areas enclosed by the exterior face of the
       exterior walls on each floor.
      Balconies, porches and patios will be excluded from calculation of total building floor
       area.


Disclaimer of Liability

The responsibility for the project meeting minimum health and safety standards is the
responsibility of state and local jurisdictions and the project sponsor/owner.




2012 Consolidated Funding Cycle Application                                         Page 91 of 286
REPLACEMENT RESERVES SCHEDULE
Intent

OHCS expects projects be maintained at a level comparable with the condition at the time the
project was placed in service (for new construction: at the completion of construction; for
rehabilitation: at the completion of rehabilitation). Repairs and replacements must be
accomplished when items are damaged or show excessive wear due to use or age, and
replacements must be “as good as new” or at least up to the original quality.

The standards imposed by OHCS for projects are goal-oriented. The goal is to improve the
property in such a way as to maximize its expected life.

The following life expectancy information is to assist in developing the project's replacement
reserves.

                        LIFE EXPECTANCIES OF HOUSING COMPONENTS

                     Item                     Useful Life                    Remarks


Footings and Foundations:


Footings                                         Life       These likely to last up to 250 years. Struc-
                                                            tural defects to do develop are a result of
Foundation                                       Life       poor soil conditions


Concrete Block                                   Life


Water proofing:


Bituminous coating                              5 yrs.


Pargeting with Ionite                            Life


Termite proofing                                5 yrs.      May be earlier in damp climates


Gravel outside                                30-40 yrs.    Depends on usage


Cement block                                     Life       Less strong than concrete block


Rough Structure:


Floor system (basement)                          Life




2012 Consolidated Funding Cycle Application                                             Page 92 of 286
                     Item                     Useful Life                     Remarks


Framing exterior walls                           Life       Usually plaster directly on masonry. Plaster
                                                            is solid and will last forever. Provides
                                                            tighter seal than drywall and better
                                                            insulation


Framing interior walls                           Life       In older homes, usually plaster on wood
                                                            lath. Lath strips lose resilience, causing
                                                            waves in ceilings and walls


Concrete Work:


Slab                                             Life       (200 years)


Pre-cast decks                                10-15 yrs.


Pre-cast porches                              10-15 yrs.


Site-built porches and steps                    20 yrs.


Sheet Metal: Gutters, downspouts, flashing


Aluminum                                      20-30 yrs.    Never requires painting, but dents and pits.
                                                            May need to be replaced sooner for
                                                            appearance.


Copper                                           Life       Very durable and expensive. Requires
                                                            regular cleaning and alignment.


Galvanized iron                               15-25 yrs.    Rusts easily and must be kept painted
                                                            every 3-4 years.


Electrical Wiring:


Copper                                           Life


Aluminum                                         Life


Romex                                            Life




2012 Consolidated Funding Cycle Application                                              Page 93 of 286
                     Item                     Useful Life                   Remarks


Circuit Breaker:


Breaker panel                                 30-40 yrs.


Individual breaker                            25-30 yrs.


Plumbing pressure pipes:


Copper                                           Life       Strongest and most common. Needs no
                                                            maintenance


Galvanized iron                               30-50 yrs.    Rusts easily and is major expense in older
                                                            homes. Most common until 1940


Plastic                                       30-40 yrs.


Plumbing, waste pipe:


Concrete                                        20 yrs.


Vitreous china                                25-30 yrs.


Plastic                                       50-70 yrs.    Usage depends upon soil conditions. Acid
                                                            soils can eat through plastic.


Cast iron                                        Life


Lead                                             Life       A leak cannot be patched. If bathroom is
                                                            remodeled, lead must be replaced.


Heating and venting: Duct work, AC
rough-in


Galvanized                                    50-70 yrs.


Plastic                                       40-60 yrs.    Type used depends upon climate.


Fiberglass                                    40-60 yrs.




2012 Consolidated Funding Cycle Application                                           Page 94 of 286
                      Item                    Useful Life                      Remarks


Roof:


Asphalt shingles                              15-25 yrs.    Most common. Deterioration subject to
                                                            climate. Granules come off shingles. Check
                                                            downspouts.


Wood shingles and shakes                      30-40 yrs.    Expensive. Contracts and expands due to
                                                            climate


Tile                                          30-50 yrs.    Tendency to crack on sides.


Slate                                            Life       High quality. Maintenance every 2-3 years
                                                            as nails rust.


Metal                                            Life       Shorter life if allowed to rust.


Built-up asphalt                              20-30 yrs.    Maintenance required – exp. after winter.


Felt                                          30-40 yrs.


Tar and gravel                                10-15 yrs.


Asbestos shingle                              30-40 yrs.    Shingles get brittle when walked on.
                                                            Maintenance every 1-3 years


Composition shingles                          12-16 yrs.


Tin                                              Life       Will rust easily if not kept painted regularly.
                                                            Found a lot in inner-city row houses.


4 0r 5 built-up ply                           15-25 yrs.    Layers of tar paper on tar.


Masonry:


Chimney                                          Life


Fireplace                                     20-30 yrs.


Fire brick                                       Life




2012 Consolidated Funding Cycle Application                                               Page 95 of 286
                  Item                        Useful Life                    Remarks


Ash dump                                         Life


Metal fireplace                                  Life


Flue tile                                        Life


Brick veneer                                     Life       Joints must be pointed every 5-6 years.


Brick                                            Life


Stone                                            Life       Unless a porous grade stone like
                                                            limestone.


Block wall                                       Life


Masonry floors                                   Life       Must be kept waxed every 1-2 years.


Stucco                                           Life       Requires painting every 8-10 years. More
                                                            susceptible to cracking than brick.
                                                            Replacement is expensive. Maintenance
                                                            cycles for all types of masonry structures,
                                                            including those found in urban areas,
                                                            subjected to dirt, soot, and chemicals:

                                                            Caulking – every 20 years

                                                            Pointing – Every 35 years

                                                            Sandblasting – Every 35 years


Windows and doors:


Window glazing                                 5-6 yrs.


Storm windows and gaskets                        Life       Aluminum and wood


Screen doors                                   5-8 yrs.


Storm doors                                   10-15 yrs.




2012 Consolidated Funding Cycle Application                                             Page 96 of 286
                    Item                      Useful Life                    Remarks


Interior doors (lauan)                          10 yrs.


Sliding doors                                 30-50 yrs.


Folding doors                                 30-40 yrs.


Sliding screens                                 30 yrs.


Garage doors                                  20-25 yrs.    Depends upon initial placement of springs,
                                                            tracks and rollers.


Steel casement windows                        40-50 yrs.    Have leakage and condensation problems.
                                                            Installed mostly in the 40’s and 50’s


Wood casement windows                         40-50 yrs.    Older types very drafty.


Jalousie                                      30-40 yrs.    Fair quality available in wood and
                                                            aluminum. Used mostly for porches


Wood double-hung windows                      40-50 years


Insulation:


Foundation                                        Life


Roof, ceiling                                     Life


Roof – electric vent – automatic              10-15 yrs.


Walls                                             Life


Floor                                             Life


Weather stripping, metal                        8-9 yrs.


Weather stripping, plastic gasket               5-8 yrs.


Exterior trim:




2012 Consolidated Funding Cycle Application                                            Page 97 of 286
                    Item                      Useful Life                    Remarks


Wood siding                                      Life       Must be kept painted regularly – every 5-7
                                                            years.


Metal siding                                     Life       May rust due to climate.


Aluminum siding                                  Life       Maintenance free if baked-on finish.


Shutters:


Wood                                            20 yrs.


Metal                                         20-30 yrs.


Plastic                                          Life


Aluminum                                         Life


Posts and columns                                Life


Trellis                                         20 yrs.     Will rot in back even if painted because of
                                                            moisture.


Cornice and rake trim                            Life


Gable vents, screens:


Wood                                          10-14 yrs.


Aluminum                                         Life


Exterior Paint:


Wood                                           3-4 yrs.     Climate a strong factor.


Brick                                          3-4 yrs.


Aluminum                                      10-12 yrs.


Stairs:




2012 Consolidated Funding Cycle Application                                            Page 98 of 286
                      Item                    Useful Life                       Remarks


Stringer                                        50 yrs.


Risers                                          50 yrs.


Treads                                          50 yrs.


Baluster                                        50 yrs.


Rails                                         30-40 yrs.


Starting levels                                 50 yrs.


Disappearing stairs                           30-40 yrs.




Drywall and plaster:


Drywall                                       40-50 yrs.    Lifetime if protected by exterior walls and
                                                            roof. Cracks must be regularly spackled.


Plaster                                          Life       Thicker and more durable than drywall.
                                                            Exterior must be properly maintained.


Ceiling suspension                               Life


Acoustical ceiling                               Life


Luminous ceiling                              10-20 yrs.    Discolors easily.


Ceramic tile:


Tub alcove and shower stall                      Life       Proper installation and maintenance
                                                            required for long life. Cracks appear due to
                                                            moisture and joints; must be grouted every
                                                            3-4 years.


Bath wainscote                                   Life




2012 Consolidated Funding Cycle Application                                               Page 99 of 286
Ceramic floor                                    Life


Ceramic tile                                     Life


Finish carpentry:


Baseboard and shoe                            40-50 yrs.


Door and window trim                          40-50 yrs.


Wood paneling                                 40-50 yrs.


Closet shelves                                40-50 yrs.


Fireplace mantel                              30-40 yrs.


Flooring:

                                                                                 st                 nd
Oak floor                                        Life      In most older homes, 1 story is oak, 2
                                                                rd
                                                           and 3 stories are hard pine.


Pine floor                                       Life


Slate flagstone floor                         40-50 yrs.


Resilient (vinyl)                             10-15 yrs.   Because of scuffing, may have to be
                                                           replaced earlier.


Terrazo                                          Life


Carpeting                                      5-8 yrs.    Standard carpeting.


Cabinets and vanities:


Kitchen cabinets                              18-30 yrs.


Bath vanities                                 18-30 yrs.


Countertop                                    18-30 yrs.


Medicine cabinets                             15-20 yrs.




2012 Consolidated Funding Cycle Application                                           Page 100 of 286
Mirrors                                       10-15 yrs.


Tub enclosures                                18-25 yrs.


Shower doors                                  18-25 yrs.


Bookshelves                                      Life      Depends on wood used.


Interior painting:


Wall paint                                     3-5 yrs.


Trim and door                                  3-5 yrs.


Wallpaper                                      3-7 yrs.


Electrical finish:


Electric range and oven                       12-20 yrs.


Vent hood                                     15-20 yrs.


Disposal                                      5-12 yrs.


Exhaust fan                                   8-10 yrs.


Water heater                                  10-12 yrs.


Electric fixtures                             20-30 yrs.


Doorbell and chimes                           8-10 yrs.


Fluorescent bulbs                              3-5 yrs.


Plumbing finish:


Dishwasher                                    5-15 yrs.


Gas water heater                              8-12 yrs.


Gas refrigerator                              15-25 yrs.




2012 Consolidated Funding Cycle Application                                        Page 101 of 286
Toilet seats                                  8-10 yrs.


Commode                                       15-25 yrs.


Steel sinks                                   15-20 yrs.


China sinks                                   15-20 yrs.


Faucets                                          Life      Washers must be replaced frequently.


Flush valves                                  18-25 yrs.


Well and septic system                        15-30 yrs.   Depends on soil and rock formations.


Hot water boilers                             30-50 yrs.   Becomes increasingly inefficient with age
                                                           and may have to be replaced before it
                                                           actually breaks down.


Heating finish:


Wall heaters                                  12-17 yrs.


Warm air furnaces                             25-30 yrs.   Most common today.


Radiant heating – ceiling                     20-30 yrs.


Radiant heating – baseboard                   20-40 yrs.


AC unit                                       8-18 yrs.


AC compressors                                10-18 yrs.   Regular maintenance required.


Humidifier                                     7-8 yrs.


Electric air cleaners                         8-10 yrs.


Appliances:


Refrigerator                                  15-25 yrs.


Washer                                        8-12 yrs.




2012 Consolidated Funding Cycle Application                                          Page 102 of 286
Dryer                                         8-12 yrs.


Combo washer and dryer                        7-10 yrs.


Garage door opener                            8-10 yrs.


Disposal units                                8-10 yrs.


Dishwasher                                    8-12 yrs.


Appointments:


Closet rods                                      Life


Blinds                                        10-15 yrs.


Drapes                                        5-10 yrs.


Towel bars                                    10-15 yrs.


Soap grab                                     10-12 yrs.


Others:


Fences and screens                            20-30 yrs.


Splash blocks                                  6-7 yrs.


Patios (concrete)                             15-50 yrs.


Gravel walks                                   3-5 yrs.


Concrete walks                                10-25 yrs.


Sprinkler system                              15-25 yrs.


Asphalt driveway                               5-6 yrs.    With patchwork may last 15-20 years.


Tennis court                                  20-40 yrs.




2012 Consolidated Funding Cycle Application                                         Page 103 of 286
            FREQUENCY OF PRODUCT REPLACEMENT IN RENTAL PROJECTS

                                                                                  Not re-

                                                                                  Placed
                                                                                  by land
                               Within    3-4     5-6     7-8     9-10    Over
                                                                                  Lord
                               2 years   years   years   years   years   10
                                                                         years

                               .04
Air conditioners               percent   1.5%    7.5%    11.7%   10.0%   41.5     27.4%

Bathtubs/fixtures              0.7       2.2     3.3     3.8     7.5     70.6     11.9

Carpeting                      1.5       13.5    35.1    23.9    8.9     9.1      8.0

Dishwashers                    0.4       1.8     11.7    12.4    10.4    33.9     29.4

Faucets                        2.0       8.4     16.2    7.7     14.4    46.2     5.1

Flooring, resilient            1.1       6.6     21.5    19.2    19.2    25.3     7.1

Furniture/furnishings          2.0       4.4     5.5     5.3     5.3     6.9      70.6

Hardware/locksets              7.3       7.7     13.3    7.1     10.4    45.2     9.0

Heating Equipment              0.4       1.8     4.9     4.9     10.4    71.0     6.6

Laundry Equipment              0.4       4.2     13.5    11.1    10.2    21.7     38.9

Lighting/Electrical fixtures   0.9       3.3     6.2     8.8     12.4    58.7     9.7

Ovens/Ranges                   0.2       1.5     7.1     8.6     14.6    57.4     10.6

Paint                          37.6      41.3    13.7    2.0     0.9     1.8      2.7

Refrigerators                  0.2       1.5     7.1     8.6     14.6    57.4     10.6

Shower Surrounds               1.3       1.8     7.1     6.9     7.1     55.4     10.4

Wall Coverings                 7.3       13.5    17.7    7.7     5.1     9.7      39.0




2012 Consolidated Funding Cycle Application                                Page 104 of 286
   ATTACH ARCHITECTURAL PLANS OR REHABILITATION
                 DOCUMENTS HERE




2012 Consolidated Funding Cycle Application   Page 105 of 286
 REQUEST FOR REASSIGN MENT OF TARGET POPUL ATION
                    PRIORITY
A population not on the OHCS high-needs matrix may be a priority for a specific community or
applicant. In this situation, the applicant can request OHCS to reconsider the priority ranking. A
Request for Reassignment of Target Population Priority Form will need to be completed and
submitted explaining why the specific population should be a different priority and a request to
receive points accordingly. The form can be found on the OHCS web site under the CFC
Application, Needs Analysis and Priority Levels section and in Part 5, Self-Scored section of the
CFC Application.

Requests for reassignment must be based on current needs data or policies, and referenced on
the form for OHCS review. OHCS will only honor a request for a priority change when sufficient
needs data or policy documentation are submitted to support the request.

Send to the OHCS Research and Analysis Section via the RAD at least one month before the
CFC deadline. OHCS will review the request, make a decision, and notify the applicant within
two weeks. Submission of an original approved form in the Self-Scored section of the
application will be required

If an applicant believes the priority assigned to the target population is not correct, they may
request either a policy-based or data-based priority reassignment. To do this, applicants will
need to complete the reassignment request forms no later than February 11, 2012.

In order to pursue a policy-based reassignment of a target population priority, applicants must
substantiate the policy argument. OHCS Housing Division will review policy-based requests
within 2 weeks of receipt.

Direct questions about policy-based requests to the RAD assigned to the project area.

When requesting a data-based reassignment for a target population priority, the OHCS
Research & Analysis Section may be of assistance in identifying useful data. If the information
justifies a higher priority assignment, OHCS will grant a change in priority.

Find the data and methods used in the Needs Analysis online at:
http://www.ohcs.oregon.gov/OHCS/RA_Needs_Analysis.shtml

For more information, or to get feedback on a community’s position, please contact OHCS
Research Analyst Natasha Detweiler at: Natasha.Detweiler@state.or.us or 971-673-7183.

Here are a couple narrative examples of requests for reassignment:

Policy-based request – a project has committed housing subsidy funds (for example, 202
funds). The applicant could, through a policy based request for reassignment, make the policy
argument that bringing new subsidy to the state is as critical as preserving existing subsidy and
as such should be considered a Priority 1 along with all preservation projects.

Data-based request – low-income jobs may create an increased demand for housing. Recent
job growth may not be reflected in the Census or American Community Survey data. When




2012 Consolidated Funding Cycle Application                                         Page 106 of 286
making a request for reassignment the applicant may provide information concerning the
businesses coming into the community, anticipate wage rates, and any new rental housing
stock data. OHCS would incorporate that information into the population or household data to
estimate the comparative demand for low-income affordable housing relative to other
communities




2012 Consolidated Funding Cycle Application                                     Page 107 of 286
                          Request Form for Reassignment of Target Population Priority

Requesting Organization:

Submitted by:                                                     Date:
Submitted to (RAD):

Contact E-mail:                                                   Phone:

Project Name:
Project Address:

Target Population Priority:

Current Priority Level:

Proposed Priority Level:


Request Type:                       Data based                Policy based

   Explain why the population (s) proposed for the housing should be considered a Priority _____ (1, 2,
   or 3) using defensible data OR an OHCS policy argument.




    For a data based request, list each of the data sources used to arrive at the conclusions in Question
    #1. Document the source(s) of the data used. Include justification for using the data.




        2012 Consolidated Funding Cycle Application                                      Page 108 of 286
 OHCS DETERMINATION:

                                          Approved as Priority
  Proposed Priority Population            Level 1, 2 or 3                Not Approved




Comments:




Signed by:




Date:




   IMPORTANT NOTE: This form must be completed and provided to the RAD no later than
    February 11, 2012. OHCS will either approve or deny the request and return it to the applicant.




        2012 Consolidated Funding Cycle Application                                      Page 109 of 286
2012 CFC HOUSING COUNCIL REPORT INSTRUCTIONS
OHCS staff will provide this section of the Applicant & Project Information to OHCS’ Executive
Team and, if applicable, to the State Housing Council for review and approval.

Complete the project and contact information in full and provide a brief project narrative. Mark
all appropriate boxes for unit and priority population type.

Complete the Sources and Uses Table include total cost, total cost per unit, and total cost per
square foot.

The “Proposed Improvements” table: For an acquisition/rehabilitation project provide the scope
of rehab. For a new construction project briefly list the exterior, interior and common area
finishes (as would be found in an appraisal).

For acquisition/rehabilitation projects, provide a brief description of the relocation plan.

Complete the proposed rents table and proposed (first year) annual operating budget.

Base the Market Demographics Section on the obtained market information. This information
will come from the market study (required for tax credit projects), or market research information
gathered for the project. Applicants should use bullet points to describe the major components
of the market (i.e., economy, job growth, supply, and demand).

Submit a brief description of the Sponsor Experience and Proposed Resident Services is
required.

OHCS staff will complete the form, “Conditions for Funding”, “OHCS Funds Reserved”, and
“Recommended Motion”.




2012 Consolidated Funding Cycle Application                                           Page 110 of 286
                                   2012 CFC HOUSING COUNCIL REPORT

Project Name:                                                       No. of Units:
Project Address:                                                    County:
Project City/St/Zip:                                                US House Dist.:
Sponsor Name:                                                       State Senate Dist.:
Consultant:                                                         State House Dist.:
Architect:                                                          Years of Affordability(60 yr. Min):
Contractor:                                                         Target Population:
Property Mgmt.:

 Project Description (brief narrative):




Project and Unit Information: (“X” all boxes which apply)
          New Construction                Multi-Family Rental Housing                  Elderly/Disabled
          Acquisition                     Single-Family Housing                        Independent Living
          Rehabilitation                  Homeless Shelter                             Modular Units
          Vacant                          Transitional Housing                         Congregate/Assisted Living
          Occupied                        Group Home:             (# units)            SRO
If rehabilitation, year built:


          Family                          Persons with HIV/AIDS                        Alcohol/Drug Recovery
          Elderly                         Psychiatrically Disabled (CMI)               Ex-Offenders
          Physically Disabled             Developmentally Disabled                     Homeless
          Farmworkers                     Permanent Supportive Hsg.           Other:
          Transitional housing            Victims of Domestic Violence        Other:


          Number of units accessible to the disabled          Number of units that will be visitable
          Number of transitional housing units                Number of beds, i.e., group home or dormitory
          Number of internet connections in
          community building                                  Number of units with high speed internet




         2012 Consolidated Funding Cycle Application                                           Page 111 of 286
Proposed Sources and Uses
Uses:                                 $ Amount             Sources:              $ Amount
Acquisition                                                HOME
Construction/Rehab                                         Perm Loan/OAHTCs
Development                                                Trust Fund
                                                           Weatherization
                                                           HELP
                                                           Tax Credit Equity
                                                           Deferred Developers
                                                           Fee
                                                           Other:
                                                           Other:
                                                           Other:
                                                           Other:
Total:                                                     Total:

Use                                   Total Cost       Cost per Unit             Cost per S.F.
Residential                           $                $                         $
Commercial                            $                $                         $
Total Cost                            $                $                         $




         2012 Consolidated Funding Cycle Application                                 Page 112 of 286
Provide a brief description of improvements (for both new construction and acquisition/rehabilitation):
Proposed Improvements          Description                Comments
Exterior:




Interior:




General:




                                                                                Yes (x)    No (x)    N/A (x)
For Acquisition/Rehabilitation Projects: The scope of rehabilitation meets or
exceeds OHCS’s 30-year sustainability requirement.


Relocation Plan (if applicable):




        2012 Consolidated Funding Cycle Application                                       Page 113 of 286
Proposed Rents:
Unit Size(s)              # of Units                    % Area Median Income   Proposed Rent
1-Bedroom                                                                      $
2-Bedroom                                                                      $
3-Bedroom                                                                      $
 -Bedroom (Mgrs.)                                                              $




Proposed Annual Operating Budget:
Gross Potential Income                                  $
Vacancy: 5%                                             ( )
Effective Gross Income                                  $
Operating Expenses                                      ( )
Net Operating Income                                    $
Debt Service/Loan Amt.
   Rate: 0.00%
   Term:       years
   Annual Payment:                                      $
Total Debt Service                                      $
Annual Cash Flow                                        $
DCR                                                     1.00


Market Demographics: (Provide bullet points under each area)

Economy:
Job Growth:
Supply:
Demand:


Sponsor Experience:


Proposed Resident
Services:


Conditions for Funding:          (To be completed by OHCS)
OHCS Funds Reserved:             (To be completed by OHCS)

Recommended Motion:              To be completed by OHCS)



          2012 Consolidated Funding Cycle Application                              Page 114 of 286
           PART 3-APPLICANT AND PROJEC T OVERVIEW
The purpose of this section is to familiarize the reviewer with the applicant and the project in a
format that is easy and quick for the reviewer to read. Do not confuse the “Site and Building
Information” pages with the requirements of the OHCS Architectural Standards.

The Review Team uses the information in this section to score other sections. Missing
information or inconsistent information within the application will affect the application score.
Such errors or discrepancies may result in the inclusion of reservation condition(s) if OHCS
reserves funding.

OHCS uses applicant and project information to determine if the project meets programmatic
criteria for the requested funding program(s). OHCS will enter information from the application
into its database and will use the data for future benchmark reports. Submit complete and
accurate information.
Applicant and Project Information

Provide all organizational information that applies to the project. Include the contact person’s
name, direct phone number and direct e-mail address. Do not attach other material about the
business entity, such as resumes or organizational charts.
Development Team Information

Provide all information about the development team. Include the company name, the contact
person’s name, direct phone number and direct e-mail address. Do not attach other material
about the business entities, such as resumes or organizational charts.

Describe any potential identity of interest. Identity of interest is defined as a financial, familial or
business relationship that permits less than arm’s length transactions. It includes, but is not
limited to, the existence of a reimbursement program or exchange of funds, common financial
interests, common officers, directors or stockholders or family relationship between officers,
directors or stockholders.
OHCS-based Funding Requests

List all OHCS resources requested for this project. Use the same information every time there is
a reference to a specific source being requested.
OHCS Preservation Set-Aside

In order for a project to qualify for the 50 percent OHCS set-aside, the applicant must partially or
completely target a preservation project. Indicate if application will be for preservation.
Unit Type and Funding Program Designation

Complete the table, list the unit type (Single-Room Occupancy, studio, one bedroom, etc.), the
total number of each unit type, number of the units designated for each fund source (HOME,
LIHTC, Trust Fund, etc.), square footage of units and total square footage for each unit type.
Use the method described in the Architectural Standards and Product Replacement section of
the application to calculate the floor area of each unit type.

The number of various program units may exceed the Total Number of Units. However,
applicants should indicate only the number of units, which are to be restricted to the income and


2012 Consolidated Funding Cycle Application                                             Page 115 of 286
rent structure of the specific funding program. OHCS will develop restrictive use agreements
based on the number of units per funding source shown in the application.
Target Population

List the main target population(s) for units. Indicate if vacant units will be held for the target
population until an eligible household is found.

Indicate the number of targeted units for each population type.

Indicate the number of units that will meet the listed criteria.
Rent Table

Indicate the proposed income and rental limitations of the units. Assume all funding source
restrictions apply. Before rounding up, rents must correspond with the Income page of the
Operating Budget. (If requesting OAHTC, rents must correspond with the “Income With OAHTC”
page.) Round up to the nearest 10 percent, i.e.: a 47 percent rental charge on the Income page
of the Operating Budget would be listed as 50 percent in the Rent Table.

Provide an explanation if the income limitation percentage of the household residing in the unit
is not equal to the proposed rent percentage (i.e. the rent limitation is 40 percent of area median
income but the households to be served will be at 30 percent or less). A question is provided for
this purpose. This question should be skipped if the proposed rents and household income are
the same percentage.
Site and Building Information

This section is used to provide a picture of the physical project: building design, construction
method, unit amenities, etc. ALL boxes that apply to the project should be checked.

Under “Building Type” and “Building Construction Characteristics”, the number of buildings in
the project should be indicated that include the listed design feature. Buildings can be double-
counted and can exceed the total number of buildings in the project.

Under “Planned Project Elements to be Incorporated”, an “X” in each box should be indicated if
the feature is a component of the project The number of times the item will appear in the project
is not to be added. However, the number of parking spaces must be included.




2012 Consolidated Funding Cycle Application                                            Page 116 of 286
                                  APPLICANT and PROJECT INFORMATION FORM

 Project Name:
 Project Address:
                         Street                           City                     Zip Code        County

   Co-Applicant
 Business Name:__________________________                   Business Name:_________________________
 Contact_________________________________:                  Contact:_______________________________
 Title:____________________________________                 Title:__________________________________
 Street:__________________________________                  Street:_________________________________
 City/St/Zip:_______________________________                City/St/Zip:_____________________________
 Phone:__________________________________                   Phone:________________________________
 Fax:____________________________________                   Fax:__________________________________
 E-mail:__________________________________                  E-mail:________________________________
 Applicant Tax ID #:                                        Co-Applicant Tax ID #:

Applicant Type (“X” box)                                         Co-Applicant Type (“X” box)
For Profit                        Housing Authority              For Profit          Housing Authority
Nonprofit                         Local Government               Nonprofit           Local Government
CHDO                                                             CHDO

 Ownership Entity (LP, LLC, etc.)                         Consultant (if applicable)
 Business Name:________________________                   Business Name:_________________________
 Contact:______________________________                   Contact:________________________________
 Title:_________________________________                  Title___________________________________
 Street:________________________________                  Street:_________________________________
 City/St/Zip:____________________________                 City/St/Zip:______________________________
 Phone:_______________________________                    Phone:_________________________________
 Fax:_________________________________                    Fax:___________________________________
 E-mail:_______________________________                   E-mail:_________________________________
 Ownership Tax ID #:

 All Correspondence should be directed to:
 Business
 Name:__________________________________                  Phone:_____________________________
 Contact:________________________________                 Fax:_______________________________
 Title:___________________________________                E-mail:_____________________________
 Street:__________________________________
 City/State/Zip:____________________________




            2012 Consolidated Funding Cycle Application                                        Page 117 of 286
  Disbursement of Funds
 Indicate to which entity funds should be disbursed:            (1)
                                                                (2)

 Indicate to which entity tax credits
 should be awarded:

  NONPROFIT INFORMATION (If Applicable)

 Source of the exemption (“X” box)

                    IRC Section 501(a)                                          IRC Section 501 (c)(3)
                    IRC Section 501(c)(4)                                       ORS 456

 Date Incorporated:                                                   Date IRS 501(c)(3) received:
 Date Articles of Incorporate & By-laws                               Date Articles or By-laws
 filed:                                                               amended:
                                                                      Date Purpose/Mission
 Date Purpose/Mission Statement:                                      statement amended:

                                                                                                 Yes (x)   No (x)
 Do the By-laws set forth the development of affordable housing as a purpose?
 Is the project a for-profit / non-profit joint venture?
 Is the project consistent with the organization’s Strategic/Business Plan?

  DEVELOPMENT TEAM INFORMATION
(Provide the following information, as it applies to the project.)

 All correspondence should be directed to:

 Contractor:                                           Ph.:                     Email:

 Architect:                                            Ph.:                     Email:

 Tax Attorney:                                         Ph.:                     Email:

 Tax Acct:                                             Ph.:                     Email:

 Syndicator:                                           Ph.:                     Email:

 Property Mgr.                                         Ph.:                     Email:

 Other:                                                Ph.:                     Email:

 Title Company:                                        Address:
 Escrow
 Officer:                                              Phone:

 E-mail:                                               Escrow #:



            2012 Consolidated Funding Cycle Application                                             Page 118 of 286
 Define all direct or indirect financial or other identity of interest members of the development team may
 have with other members of the development team.




OHCS-Based Funding Requests
                                                                                     Recipient will loan to
 Sources of Funds               $ Amount          Grant Request     Loan Request     limited partnership
                                                  (x)               (x)              (x)
 HDGP (Trust Fund)
 HOME
 LIWP (Weatherization)
 HELP
 OAHTC (loan amount)
 LIHTC (annual allocation)

List OHCS resources (non-CFC) received, or applied to for this project, including any loans, Farmworker
Housing Tax Credits, Oregon Rural Rehab loan, etc.




Applicant is applying under the following OHCS set-aside: (“X” box)

               Preservation




         2012 Consolidated Funding Cycle Application                                        Page 119 of 286
 Unit Type and Funding Program Designation
In the table below, list the unit type (SRO, studio, one bedroom etc), the total number of each unit type,
and number of units designated as HOME, LIHTC, HDGP HELP, LIWP, etc., units, square footage of
units and total square footage for each unit type. The number of various Program units may exceed the
Total Number of Units. For the unit square footage, the inside wall measurement should be used.
  Residential Only
                             Number of Units Designated As
                                                                                          Actual
                                                                                          Square       Total
                Total No.    OHCS                                                         Footage      Square
  Unit Type*    of Units**   HOME      LIHTC     HDGP       HELP       LIWP     Other     of Unit      Footage
  Note: Manager unit(s) must be included in this table.




  Manager’s
  Unit(s)
  Total by
  Column


  Common
  Areas
  Commercia
  l Areas
  Other**

                                                                       Total Floor Area

* Unit Type can be abbreviated - Group Home, SRO, 0 bdr, 1 bdr, 2 bdr, 3 bdr, etc.
**Paved-only areas are not included in square footages. Parking garages or storage is treated as
Commercial space if there is a fee to use it.
Group Homes = 1 unit


If there is a Manager unit, what is its size? (1 bdrm, 2 bdrm, etc.)
If the Manager unit is income-qualified, what is the AMI %?
List other units designated for operations or management. (how many)
If applying for HELP, indicate the                                                              Domestic
number of units per population:                    Farmworker               Homeless            Violence




         2012 Consolidated Funding Cycle Application                                          Page 120 of 286
 Units per Target Population

The sum of targeted number of units for each population type must equal (not exceed) the total number
of units in the project. (e.g.: a 40 unit project serving families may have 30 units family, 8 disabled
(family), and 2 homeless (family) for a total of 40 family units.

 Indicate number of units per target population type: (Do not double count)

                 Family                                            Persons in Alcohol and Drug Recovery

                 Elderly                                           Farmworkers

                 Physically Disabled                               Children

                 Developmentally Disabled                          Persons with HIV/AIDS

                 Psychiatrically Disabled/CMI                      Victims of Domestic Violence

                 Homeless                                          Ex-Offenders
                 Other (please
                 describe):


 Project Rents and Income Levels                                                       Yes (x)    No (x)
 Legislation requires that when OHCS resources are utilized, OHCS will give
 substantial preference to applicants who rent to tenants whose net income is at 2
 times the rent. (e.g. if rent is $300 per month, a tenant who earns a net of $600
 should be considered income eligible.) Will the project accept this as its policy?


 Upon completion of the project, how many units will be receiving project based assistance?

 Number of RD units receiving project-based assistance?

 Number of Section 8 units project-based assistance?

 Number of units receiving other type of project-based assistance?

 Explain other type of assistance:




         2012 Consolidated Funding Cycle Application                                       Page 121 of 286
In the table below, indicate the income and rental limitations of the proposed units. Assume all funding
source restrictions when completing. Round up to the nearest 10%, i.e., a 47% rental charge would be
listed as 50%.
                         Number of units    Percent of Median Income as             Rents not to exceed the
 Unit Type by            by bedroom         adjusted for family size will not       following percent of median
 bedroom size:           size:              exceed:                                 income:
 Example:                Example:           Example:                                Example:
 2 bedroom               8                  50%                                     50%
 3 bedroom               12                 60%                                     60%




 If the income limitation percentage of the household residing in the unit is not equal to the proposed rental
 percentage charge, then provide an explanation why.




Name, title and address of the Chief Executive Officer (i.e., Mayor, City Manager) of the project's local
jurisdiction::


 Name:                                                                     Title:

 Address:                                                          City:                          Zip:




         2012 Consolidated Funding Cycle Application                                             Page 122 of 286
 Site and Building Information
Note: Green building features are addressed in the Self-Scored Section.
Size of site: (one acre = 43,560 square feet)
 Acres:                                                 or Square Feet:


Number of residential buildings                           Number of non-residential buildings
Number of residential floors                              Number of non-residential floors
Total no. of code required parking spaces                 Number of proposed parking spaces
Code-required ratio of parking spaces to units is:
                                                                                                  Yes      No
Are all utilities presently at site?
If no, what needs to be brought to the site?
Will the project offer a public facility? (i.e.: day care or community policing station)
Will the public facility be available on a preference basis to project residents?
Will the project have a community room or common area?
             Will there be a use or rental fee for these spaces?
Will the project have commercial space?
If the project consists of more than 1 building or type of use, are they located on the same
tract of land?

 Adjacent Land Uses:         North of site:
                             South of site:
                             East of site:
                             West of site:

 Building Type: (See Instructions)                                 Building Construction Characteristics:
 Indicate number of buildings                                      Foundation: Indicate number of buildings
                    Single Story Building                                   Slab-on-grade
                    Garden Style Building                                   Crawl space
                    Elevator Building                                       Basement
                    Non-elevator Multi-Story Building                       Piling
                    Row house / town house                                  Other:
                    Corridor Building
                    Other:

 SRO units include the following items in the unit: (check all that apply)
                    Toilet                                                  Shower
                    Sink                                                    Bath tub




          2012 Consolidated Funding Cycle Application                                           Page 123 of 286
 Ground Floor Construction: Indicate number of        Upper Floor Construction: Indicate number of
 buildings                                            buildings
              Wood/light gauge metal                            Wood/light gauge metal
              Concrete                                          Concrete
              Steel Frame                                       Steel Frame
              Other:                                            Other:


 Roof Construction: Indicate number of buildings      Exterior Walls: Indicate number of buildings
                  Wood/light gauge metal                        Wood or fiber cement siding
                  Concrete                                      Pre-fab panel
                  Steel Frame                                   Masonry
                  Other:                                        Other:
Planned Project Elements to be Incorporated: (Check all boxes which apply)
       Separate Community Building                               Front Porch
       Community Room in Residential Building                    Other:
       Structured Parking # Spaces                               Other:
       Surface Parking # Spaces
       Underground Parking # Spaces                         Flooring
       Common Laundry Room                                       Carpet
       Common Kitchen                                            Vinyl
       Common Restrooms (other than Community Rm)                Wood
       Playground                                                Ceramic Tile
       Exterior Security Locked Building                         Other:
       Garden Plots
       On-site Leasing Office                               Heating/Cooling/Venting
       24-Hr. Manager on site                                    Building-wide Central Ventilation
       Secure Outdoor Storage Space                              Individual Unit Ventilation
       In-unit Storage Space                                     Hydronic
       Range/oven in unit                                        Natural Gas
       Washer/dryer in unit                                      Heat Pump
       Washer/dryer hook-up in unit                              Electric resistance heating
       Patio/Balcony for each unit                               Central Air Conditioning
       Refrigerator in unit                                      Window Air Conditioning
       Microwave in unit                                         Radiant Heating
       Dishwasher in unit                                        Forced Air
       Garbage Disposal                                          Thru-Wall HVAC
       Ceiling Fan                                               Other:



        2012 Consolidated Funding Cycle Application                                    Page 124 of 286
             PART 4 NARRATIVE QUESTION DIRECTIONS
Applicants are to complete one narrative question for this section. This is the area where
applicants should relate what is important about the project. This information will assist
reviewers in understanding the dynamics of the project as they work their way through the
application. Include information in this section that may not be clear, apparent, or obvious in the
other sections of the application.

Explain why the project should receive funding. Applicants should not assume reviewers know
anything about the project or the organization. Do not repeat information that appears in other
areas of the application.

Use no less than 11 or 12 point font type; and a one inch margin is required for top, bottom and
sides of paper. Use no more than three (3) pages. OHCS will only review a maximum of three
pages of narrative.




2012 Consolidated Funding Cycle Application                                         Page 125 of 286
                                        Project Narrative

Provide a three page maximum about the project and the target population(s) to be served




2012 Consolidated Funding Cycle Application                                  Page 126 of 286
                       PART 5 -SELF-SCORED SECTION
(Worth a possible 100 points)
DIRECTIONS

Complete the Excel Workbook on a computer. Do not print and complete by hand. Enter points
into the colored cells on the right-hand column of each question. The Excel workbook will
compute the final score.

Certain questions require documentation. During the application review process, OHCS will
review the documents to confirm the project is eligible for the points claimed in the self-scored
section. Make reference to the Application Submittal Checklist to assure all required materials
have been included.

The following will help in completing the workbook:
Renter Preference

This is an all-or-nothing question. Claim eight points if the project will serve tenants with net
household income of no more than two times the net rent, eight points can be claimed. Keep
this in effect for term of affordability (60 years). Any other rental policy earns no points.
Priority Assignments

Applicants should review the Priority Assignments page to determine the priority level for the
proposed project population. OHCS updates the Priorities Assignments page in mid- January
each year; both the current year (2012) and the prior year (2011) priority assignments are
eligible to be used in the 2012 CFC application. This is located on the Needs Tab in the
Excel Workbook and is on the OHCS web site:
www.ohcs.oregon.gov/OHCS/RA_Needs_Analysis.shtml.

Completion of the Needs Scoring Worksheet is a requirement. Use the Priority Assignments
matrix to complete the worksheet. The Needs Scoring Worksheet contains three tables, one for
each priority: 1 to 3. If the project will target units to a Priority 1 population from the Priority
Assignments matrix, enter the information – the Priority 1 table. If the proposed project will
serve more than one priority population, list each population separately. Identify the county
where the project will be located and identify the target population and the number of units for
each of the target populations. Take care to not double count.

A proposed project could serve populations in every Priority group. Enter the population
information on the correct Priority table. Enter the total units in the project in the cell at the
bottom of the tables. The workbook totals the units entered for each of the populations in the
next cell at the bottom of the page. The difference between those two cells must be “0”. If it is
any other value, there is an input error. Correct the error before returning to the Self-Scored
Section.

The data from the Needs Scoring Worksheet will transfer to the Need for Project question of the
Self-Scored Section. The maximum score for this question is 37 points. If all of the project’s
units will serve Priority 1 populations, the question will receive 37 points. If all of the units are in
a Priority 2 category, the question will receive 27 points. Priority 3 category earns 17 points. The



2012 Consolidated Funding Cycle Application                                            Page 127 of 286
workbook will automatically calculate the score based upon the number of units in each Priority
category. The points awarded by the Excel program are not to be changed.
Green Building

The Green Building Worksheet is required. Read the Architectural Standards section’s Green
Building discussion. Every applicant should choose the Green Building program that applies to
the project.

Public awareness is increasing about how building design, construction and operation affect the
natural and human environment. Consumers expect builders to be more sensitive to these
affects. Projects constructed using green building concepts encourage a wise use of public
resources, including the following:

     Less pollution
     Less loss of natural habitat
     Conservation of building materials
     Less energy cost
     Better indoor environment for occupants

Applicants must certify the project under one of these programs. OHCS has included an outline
of the current Enterprise Green Communities, Earth Advantage, and LEED programs in the
Architectural Standards Section.

Directions are provided for each of the Green Building Worksheet programs. Follow the
directions at the top of the appropriate worksheet.

Submit the Green Building Worksheet and include the OHCS Path Worksheet if the option is
one of the OHCS Green Building programs.
Construction Cost Determination

This question has three parts: new construction, rehabilitation, or a combination of both new
construction and rehabilitation. (Rehabilitation projects include acquisition/rehabilitation
projects.)

OHCS uses the Construction Cost Determination questions to ensure the applicant has
provided stable and well-researched cost estimate. Applicants are to determine which statement
within the applicable part best match how the project’s construction or rehabilitation was
determined. Complete everything relating to the question to claim full points. Enter the score in
the colored cell on the right of the statement. For example: for new construction, if the
construction costs were developed by a contractor and based on the items and activities
indicated in the first statement, the project would score the full possible 40 points. In order to
receive maximum points, applicants must estimate the costs for individual line items. Lump sum
estimates will not qualify.

For new construction and rehabilitation together, the worksheet calculates rehabilitation and
new construction separately. Each part is subject to the same criteria. The Excel program will
generate the total.




2012 Consolidated Funding Cycle Application                                       Page 128 of 286
Use only current cost estimates. An application can include estimates developed for previous
CFC Applications if the applicant demonstrates in this application updated costs and describes
how all changes were determined.

NOTE: Provide the Construction cost analysis or document from which cost estimates are
based along with other documents submitted as verification of points scored. The applicant can
provide project- based rental assistance or operating subsidy commitments after funding
reservation. However, attach the cost verification in the Construction Cost Section of the
application, not in the Self-Scored Section.

To claim Priority Population points, the total number of units for each population type must equal
(not exceed) the total number of units in the project. For Example: a 40 unit project serving
families may have 30 family units, 8 disabled units (family), and 2 homeless units (family) for 40
family units total.
Community and Governmental Support

This is a two-part question: Five possible points for support letters from governmental offices,
and five possible points for community support letters.

To earn full points for governmental support, applicants must include a letter from at least two
different government offices. OHCS will accept only one federal agency letter. Applicants will
receive no points for governmental support without two letters. Submit no more than five letters
of governmental support.

To receive points for community support, applicants should include at least two letters from any
of the following: local branches of community agencies (not local branches of state or federal
agencies), local service groups, churches, neighborhood associations, neighbors of the site, or
any other local community entity. Applicants will receive no points under community support
without two letters. Submit no more than five letters of governmental support.

NOTE: Letters must support the project sponsor or applicant. Letters of support from a potential
partner such as a service provider or management agent do not qualify for points.

Letters from community action agencies (CAA) may count as either a governmental or
community letter. However, one letter from the CAA cannot be used to satisfy both categories.
Applicants must choose one category (government or community) for which the CAA letter will
apply.

OHCS discourages form letters.
Non-OHCS Sources

Applicants will receive up to five points when outside funders have committed their resources at
the time of the CFC application. Acceptable sources include HOME funding from another
jurisdiction, Rural Development or HUD funding, foundation grants or loans, present value of
donated land, property tax credits, historic tax credits, business energy tax credits, or grants
from other local or state agencies. A cash contribution from the project applicant can earn points
if it is a permanent source to the project and no repayment is due or expected.

Applicants can receive points for potential project-based rental assistance or an operating
subsidy. Those resources can be committed after OHCS issues a funding reservation.


2012 Consolidated Funding Cycle Application                                        Page 129 of 286
Applicants will not receive points for pre-development, construction, bridge loans, permanent
financing, LIHTC equity investment, or loans from any party related to the project.

To claim points, the source must be committed and the applicant must submit a copy of the
commitment or award letter with the application.

OHCS has inserted a calculator in the Self-Scored spreadsheet to help applicants determine if a
non-OHCS source qualifies for points.




2012 Consolidated Funding Cycle Application                                      Page 130 of 286
    ATTACH EXCEL SELF-SCORED SECTION, “NEEDS” SCORING WORKSHEET AND
                   GREEN BUILDING WORKSHEET(S) HERE.




2012 Consolidated Funding Cycle Application                Page 131 of 286
                           PART 6 - RESIDENT SERVICES
(Worth 10 possible points)
DESCRIPTION

OHCS has long recognized resident services as an integral part of the ongoing success of
affordable housing developments. Not only are appropriate services important and empowering to
residents, but they bring benefit to project management, to the project sponsor/owner, and to the
local community as well.

An effective Resident Service Plan adds to a development’s marketability, and can be advertised
as an added amenity. Service coordination establishes important links with providers, which can
result in positive community exposure. A Resident Services Plan can improve cash flow by
reducing turnover, evictions, and the resulting vacancy loss. An effective plan includes a provision
for crisis prevention, resulting in savings in physical damage to units, unpaid rent, and lease
violations.

The anticipated outcomes and overall goals of the Resident Services Plan are:

   Through coordination, collaboration, and community linkages, residents will be provided the
    opportunity to access appropriate services which promote self-sufficiency, maintain
    independent living, and support them in making positive life choices; and
   To maintain the fiscal and physical viability of the development by incorporating into the
    ongoing management the appropriate services to address resident issues as they arise.

When developing a Resident Services Plan consider these general guidelines:

       General low-income population support and services may include improving residents’ ability
        to maintain their lease obligations, enhance quality of life through programs for employment,
        education, income/asset building, child and youth development, community building and
        improving access to services.
       Elderly support and services could include improving residents’ ability to uphold their lease
        throughout the aging process through better access to health and other services, enhanced
        quality of life through community building, socialization, and other programs.
       Support and services for special needs population should focus on the strengths and needs
        of the target population to provide for not only the daily support but to be part of the larger
        community.

The Resident Services Description is the first opportunity for applicants to describe the project’s
resident services plan. If the applicant receives a funding reservation, the lengthier Resident
Services Plan will be a condition of the reservation.




2012 Consolidated Funding Cycle Application                                         Page 132 of 286
                                     Directions for Completing

1. The first step in developing the Resident Services Description and Plan: target population and
   service needs identification, involves collecting data and conducting research to establish the
   target population, and to determine their needs. Do not assume that a project can meet all the
   service needs of the target population or what those service needs are, without a thorough
   investigation. Contact appropriate community resources such as social service providers, civic
   organizations, health care providers, and local government agencies. Inquiries about possible
   service needs of the target population should be made at neighborhood schools, community
   centers, churches, and libraries. Housing providers and management agents are also
   knowledgeable resources regarding service needs of residents.

   In smaller communities and neighborhoods it is sometimes possible to extrapolate the needs of
   the target population of the housing development based upon identified needs of the local
   community as a whole. Review demographic information as part of this approach.

   It is beneficial to design an assessment instrument to be utilized during project lease up. Such
   an instrument can verify the accuracy of service needs projected prior to occupancy and is a
   helpful evaluation tool as service needs change from time to time.

2. The second step is identification and coordination. It includes research and data collection, with
   special focus on information about existing and available services to the target population.
   Services must be specific to the proposed development and to the needs and characteristics of
   the target population. Applicants must identify local community resources, determine specific
   eligibility requirements, and establish the availability to the residents. Success of the Resident
   Services Plan relies on the sponsor establishing strong community linkages and recognizing
   this outreach as an opportunity to market to community providers who serve the target
   population. Obtain and renew firm letters of intent or memorandums of understanding from
   potential partners. This will add to the success of the plan and services.

3. The third step is implementation and asks the applicant to describe how and where resident
   services will be provided and identify who will be responsible for service delivery.
   Sponsors/owners may arrange to offer services on-site in a community room or in the
   resident’s units for individuals who require in-home supportive services. Applicants may also
   establish a direct referral system where residents can access available services outside of the
   development. An efficient information and referral system should be more than a display of
   brochures and flyers, or a community directory. It should help build relationships among
   residents, and between residents and their larger community. An effective Services Plan is
   goal-oriented with clear and measurable outcomes, defined under “Anticipated Results”.
   Whether the implementation of the plan is through a service provider or is incorporated as the
   responsibility of the management agent, the plan should include the service provider’s duties,
   their qualifications, and experience. These will help guarantee that the anticipated results will
   be achieved. Include a description of the resources available or planned, the ongoing
   implementation of the plan, and the coordination and delivery of services.

4. The applicant should determine the scope of the Services Plan and base it upon the identified
   needs of the target population. Include only services that can be realistically delivered and that
   the most pressing needs of the residents. An effective Services Plan may include a long list of



2012 Consolidated Funding Cycle Application                                        Page 133 of 286
    services, or just one or two that are fully developed, easily accessible, and address a critical
    need of the target population.

5. Evaluation and coordination with management requires the applicant to develop and discuss
   how the services will be evaluated for effectiveness on an on-going basis, and how services
   delivery will be coordinated with the property management. Coordination of services with
   property management should include a deliberate and specific effort, such as weekly meetings,
   a system for sharing information through reports, and utilization of a formal referral system.

OHCS encourages sponsors/owners to document the effectiveness of their resident service
program activities. This recordkeeping will assist in evaluating and re-designing the Services Plan
as needed in order to maintain effectiveness. A resident services report is now part of the OHCS
monitoring and compliance requirements.


OHCS will score the Resident Services Section on the following:
   Description of the population to be served (family, elderly, singles).
   Resident qualifiers (farmworker, homeless, ex-offenders, transitional, alcohol/drug, disabled,
    HIV, domestic violence, mentally ill).
   Services appropriate to meet the needs of the proposed project tenants.
   Description of proposed services including projected results in quantifiable terms.
   Identify any collaboration and/or coordination of anticipated onsite and offsite services planned
    upon project completion.




2012 Consolidated Funding Cycle Application                                         Page 134 of 286
                                         Resident Service Questions

     Complete the following four Resident Services Description questions and table and submit
     with Application:

1. Describe the type of housing population(s) proposed for this project (i.e. Resident Qualifiers above) and
   their anticipated needs.




2. Describe why the services listed in #1 are “appropriate” for the tenants and the plan to meet the needs
   of the tenants this project will serve.




     2012 Consolidated Funding Cycle Application                                       Page 135 of 286
3. Specify any existing or proposed contractual agreements that will be in place with local service
   providers for this project.




4. Describe how resident services will be coordinated with ongoing property management of the project.




     2012 Consolidated Funding Cycle Application                                       Page 136 of 286
Type of Offsite Resident Service       Identify the entity or person   Anticipated Outcome or Goal   Number of tenants
                                       responsible to provide or                                     anticipated to
(i.e. Financial fitness, education,
                                       coordinate this service                                       participate in this
food, special needs)
                                                                                                     service




2012 Consolidated Funding Cycle Application                                                                 Page 137 of 286
               PART 7- M ARKET AND RENT ASSESSMENT
(Worth 25 possible points)
INSTRUCTIONS
NOTE: DETERMINE WHICH MARKET ASSESSMENT(S) FIT THE PROJECT AND SUBMIT
THOSE WITH APPLICATION

OHCS will score the Market and Rent Assessment Section on the following:

     Market area description.
     Analysis of market trends.
     Evaluation and understanding of the local affordable housing market need.
     Measurable differences in proposed rents and market rents (preference for a minimum of 10
      percent below market rents).
     Compliance with the Consolidated Plan or local plans.
     Impact on existing affordable housing developments.
     Required independent materials are included and are complete and accurate.

Applicants should review the following application submittal forms and complete the market area(s)
that apply to the proposed project.

Note: Some projects will serve more than one population. If more than one market assessment
will apply to the proposed project, submit them all.

Applications for LIHTC Projects should submit a Third-Party Market Study instead of the
following forms.




2012 Consolidated Funding Cycle Application                                      Page 138 of 286
Summary of Demand for Group Home

1. Describe the data that documents the community’s need for housing for the target population
and that there will be sufficient demand to keep all of the home’s bedrooms consistently rented
to the targeted population throughout the period of affordability.
(Read Instructions Section carefully before answering. Limit response to two pages maximum.)




2. Describe how this project is consistent with the priorities and objectives of the state or local
jurisdiction’s consolidated plan and other community planning processes. (i.e. urban renewal
district plan, community development plans, public housing agency plans, etc.)




2012 Consolidated Funding Cycle Application                                            Page 139 of 286
Summary Special Needs Market Assessment

1. Describe the Primary Market Area (PMA), which is the geographic boundary encompassing
the prospective tenants. Support the reasoning for selecting this area




2. Specifically identify the target population. What is the population(s) targeted (DD, CMI, A&D,
other)? What are the household sizes? What are the income ranges ($ and % MFI) of the
population served at the subject project?




2012 Consolidated Funding Cycle Application                                         Page 140 of 286
3. Describe how this project is consistent with the priorities and objectives of the state or local
jurisdiction’s consolidated plan and other community planning processes. (i.e. urban renewal
district plan, community development plans, public housing agency plans, etc.)




4. Quantify the target population and the specific housing needs. Precisely identify the number of
special needs persons in the PMA. Identify how many households are in this population and are
income qualified for the project. What unit types (group home, studios, 1, 2 bedrooms) are
needed for these household sizes?




2012 Consolidated Funding Cycle Application                                            Page 141 of 286
5. Describe the competition for this project in the market area. How many existing Special Needs
units (include all ages) are currently present in the PMA that would compete with the project?
Where is the population currently residing? How many units are proposed or in the pipeline that
could compete with the proposed project?




6. Review the estimated marginal (unmet) demand and capture rate for the project as calculated
on the excel table to confirm it represents the data discussed above. Estimate the number of
qualified households that would actually move into the project and provide reasonable support
for the figures. Narratively state the conclusions from the table. Keep any additional discussion
brief.




2012 Consolidated Funding Cycle Application                                       Page 142 of 286
7. Briefly discuss three additional demand indicators for the project and conclude this section.
These other indicators include vacancy, wait lists (current and updated), and anecdotal data
from market participants such as other service providers and managers. Discuss these variables
as indicators of demand for the subject. Include all of the competitive complexes. What is the
current vacancy rate of similar units in the PMA?




8. Precisely describe how individual unit rent is established for the project and how it compares
with similar projects housing the same population. This analysis assumes tenants do not have
incomes applicable to a typical rental analysis. Therefore, how project rental income will be
derived is critical. Describe the source and amount of the typical tenant. If tenants receive SSI,
have limited income with a voucher, or if the rent is supplied by another funding source, describe
how the unit rents are derived from these sources. How do funding trends affect these rents? If
tenants were not living in the subject project, where would they go? Compare other similar
projects’ rents to the proposed affordable project rents. Justify how and why the project rents are
applicable to the subject project.




2012 Consolidated Funding Cycle Application                                         Page 143 of 286
9. Attach Excel Special Needs Market Assessment Workbook – Page 1.




2012 Consolidated Funding Cycle Application                          Page 144 of 286
General Market Assessment

Answer all of the following:

1. Specifically identify the target population.
   What specific population(s) is the project targeting (i.e. general family, seniors, farm
   workers)?
   What are the usual household sizes (number of persons per household) of this target
   population?
   What are the median family income levels in both percent (i.e. 40-50-60%) and income (i.e.
   $19,655 to $24,307) of the target population households?




2. Briefly discuss the following regional or local (city or county) economic variables and trends,
   and their impacts on demand for the project.
   Population: What are the most recent population and growth trends (positive, negative,
   stable) and do these recent trends indicate increased demand? What is the trend for the
   next 3 to 5 years?
   Income: What are the personal income trends for the area?
   Employment: Are employment trends indicating increased demand for this project?
   Other: Are there any additional regional economic variables affecting the success of this
   project?




2012 Consolidated Funding Cycle Application                                          Page 145 of 286
3. Define and describe the Primary Market Area (PMA), which is the geographic boundary
   encompassing the prospective tenants.
   Primary Market Area: Describe the geographic boundaries of the primary market area and
   the reasoning for selecting these boundaries.
   Secondary Market Area: Include a secondary market area only if there is a compelling and
   defensible argument for additional project capture from this area.




4. Qualify the specific housing needs of the target population.
   Based on the above household sizes, what unit types (i.e. 1, 2, 3-bedroom units) are
   required for the household sizes targeted? (Use 1.5 persons per bedroom for analysis)




2012 Consolidated Funding Cycle Application                                    Page 146 of 286
5. Describe how the project is consistent with the priorities and objectives of the state or local
   jurisdiction’s consolidated plan and other community planning processes. (e.g. urban
   renewal district plan, community development plans, public housing agency plans, etc.)




6. Describe the competition for this project in the market area.

   Identify the existing market and affordable projects (and the number of units) in the PMA
   that would compete directly with this project.

   Identify the number of planned, proposed, or under construction projects (both market and
   affordable) and number of units in the development pipeline that will compete directly with
   the proposed project in the foreseeable future?

   Analyze and describe the impact of the proposed project on existing older projects and units
   in the PMA, which have similar or lower, rent levels as those proposed for the project.




2012 Consolidated Funding Cycle Application                                          Page 147 of 286
   7. Discuss the following five demand indicators from the market and conclude what these
      are indicating for the project’s demand.
       Vacancy: What are current affordable and market-rate project physical vacancies
          and recent vacancy trends indicating about the demand for this project, both project
          and unit type? Insert vacancy data into the following table “Average Vacancy Rates”.
       Rental Concessions: Are rent concessions present or absent in the PMA and what
          does this indicate about current demand?
       Absorption Data: If any projects in the area are undergoing absorption (lease-up),
          what do the rates of absorption indicate about demand, as well as demand by unit
          type?
       Wait Lists: How many households with the same income bands as the proposed
          project are on existing project wait lists, as well as the housing authority’s wait lists.
          What does this indicate for demand by unit type? Segregate these household figures
          by both income bands and unit types.
       Anecdotal Data: During interviews with market participants, such as onsite
          managers, what is the anecdotal data indicating about demand for this project and its
          unit types?




2012 Consolidated Funding Cycle Application                                          Page 148 of 286
8. Conclude the estimated demand for the project.
   Conclude with a reasonable and compelling argument the project’s demand in the
   marketplace. Use the above regional and PMA data, existing and proposed (pipeline) supply
   data, combined with data analyzed from the five demand indicators.in the marketplace. This
   demand should consider current needs as well as those forecast into the near future. If the
   proposed rents will not be below the market rents, explain the rent and occupancy
   projections.




2012 Consolidated Funding Cycle Application                                     Page 149 of 286
                                                  9. Average Vacancy Rates
                 Specified                Market Rate Complexes                                Affordable Complexes

                      Unit             Total            No. Units     Vacancy              Total      No. Units       Vacancy
                   Type                Units             Vacant            Rate            Units       Vacant             Rate
             SRO

             Studio

             1 Bedroom

             2 Bedroom

             3 Bedroom

             4 Bedroom

             Group

                   Total

        Insert data only for the units targeted for the proposed project; place a NA in those not applicable.




                                                 10. Rent Comparison Chart
                                                                                                                                  1
                                            Market Rate Projects                       Comparable Affordable Projects

             Project Units                     Similar Age Projects               Rents @ 50% MFI                 Rents @ 60% MFI
                                                                           2
      Apartment              Project           No. of             Market          No. of                        No. of
         Type                Rents             Units              Rents           Units            Rents          Units          Rents
    SRO
    Studio
    1 Bedroom

    2 Bedroom
    3 Bedroom

    4 Bedroom
    Group

    Insert data only for the units targeted or the proposed project and place an NA in those not applicable.




1
  Do not include any affordable units whose rent subsidy raises rents above fair market levels, i.e. some
Section 202, Section 811, Section 236 or RD rental assistance contracts or agreements.
2
  Insert the concluded estimated market rent for each project unit type.

2012 Consolidated Funding Cycle Application                                                                     Page 150 of 286
                         PART 8 -SPONSOR CAP ACITY
(Worth 25 possible points)
OVERVIEW

Beginning in the 2011 CFC cycle, OHCS added a physical asset management performance to
the sponsor capacity criteria. This measure assesses the sponsor’s capacity to protect the
public investment in affordable housing. OHCS shall evaluate the sponsor to assure its ability to
adequately provide routine maintenance to OHCS-funded projects and keep those projects in
good repair over their lifetime. OHCS will take into consideration ongoing condition, physical
deficiencies and maintenance of existing assets. Owners and sponsors that have deficient
existing projects may be required by OHCS to bring the existing project back to safe, sanitary,
and livable condition before applying in a CFC round.

Implementation of these changes will help identify capable partners and sustainable projects in
which to invest OHCS resources.

The section contains nine narrative questions, five tables, and instructions for sponsor capacity
for asset management. Additionally, the applicant should complete the Asset Management
Request Form. Responses to each narrative question are to be limited to one-half page, 11 or
12-point type.

The scope and scale of a proposed project should correlate to the sponsor’s or development
team’s experience. This prevents project delays and minimizes need for additional resources.

The sponsor is the primary customer and is the affordable housing owner/applicant. The
sponsor can be the managing general partner of a to-be-formed limited partnership. It is the
owning entity responsible for the day-to-day management of the real estate asset. Sponsor
capacity implies demonstration of the essential factors that lead to ongoing owner and project
financial and program success.

Some key success factors that define sponsor capacity include:
     Successful prior experience in developing and managing a similar real estate project
      successfully.
     A certification of understanding of development expectations and the specified roles for
      development team members.
     Successful prior experience in implementing similar OHCS programs.
     Specific demonstrated experience and cooperation in managing the development
      process (finance packaging, project design, pricing, rent up/marketing, and construction
      management).
     Demonstrated property management knowledge including program reporting or the
      demonstrated experience to supervise a management agent for program compliance and
      asset management.
     Demonstrated organizational financial capacity (cash or cash equivalent) to weather
      potential project difficulty.
     Community linkages that support the development and the provision of resident services.
     A business plan that supports affordable housing as an outcome.
     Sponsor in good standing with all compliance rules and regulations
     Sponsor submitting the Analysis of Income and Expense report as required
     Sponsor is current on all charges, fees and loan payments owed to OHCS

2012 Consolidated Funding Cycle Application                                  Page 151 of 286
     Sponsor has met all financial reporting requirements
     Sponsor in compliance on Section 8 properties

OHCS’ Asset and Property Management (APM) Section will conduct an evaluation of sponsor
capacity as it relates to meeting compliance and asset management obligations on projects in
operation by the owner or managing general partner of the ownership entity. APM will review a
sponsor’s compliance with program rules and regulations, reporting (Analysis of Income and
Expense) requirements and financial reporting requirements, and compliance with Section 8
properties. APM will also review the applicant’s payment record, including fees, charges and
loan payments. APM will identify sponsors who are in compliance and those sponsors who may
have material or reoccurring non-compliance issues. In the 2012 CFC, the APM evaluation will
be worth 5 points.
Previous Performance as Selection Criteria

OHCS evaluates sponsor capacity on past and present performance. OHCS will review the
sponsor’s ability to develop projects on schedule and budget. Delays, cost overruns, or change
in funding sources without prior approval from OHCS that are attributable to poor project
management may limit or disqualify the sponsor from getting additional funding for the project.
Property Management Capacity

Good property management supports the ongoing financial health of any project. After initial
reservation and before final funding award, sponsors must demonstrate capacity to manage the
property by engaging a professional management firm or an individual with relevant property
management experience. Evaluation of the proposed Management Agent’s Qualifications and
Plan will include:

     reviewing the management team’s experience and results in managing comparable
      projects;
     adequacy of staffing to manage the applicant’s portfolio;
     non-discriminatory housing practices;
     references; and
     history of maintaining decent, safe and sanitary housing.

All individuals participating in professional real estate activities must have a real estate license
as defined and determined by Chapter 696 of the Oregon Revised Statutes.
Process Steps

The RAD must receive the following form no later than March 9, 2012.




2012 Consolidated Funding Cycle Application                                     Page 152 of 286
                                 Sponsor Capacity Questions

1. Describe the sponsor’s experience and capacity to own, develop or sponsor this project:




2. List all projects (a maximum of five) the sponsor has completed (project is in operation, all
   OHCS conditions have been met, OHCS notified sponsor the development file is closed) in
   the last five years using the OHCS funding source(s) being requesting for this project:

   None

                                                               Target            OHCS
Project Name                          City                     Population        Sources(s)




2012 Consolidated Funding Cycle Application                                  Page 153 of 286
3. List all projects (a maximum of five) sponsor has completed in the last five years using other
   funding source(s), including both commercial and residential ventures: (Do not include
   projects listed above.)

   None

                                                                 Target
                                                                 Population      Non-OHCS
Project Name                             City                    or Use          Sources(s)




4. List all housing projects currently under development, including all projects not funded by
   OHCS. Note: OHCS considers a project as under development if all reservation
   requirements have not been completed, OHCS has not approved final application, or
   notification from OHCS that the project file is closed.

   None

                                                     Non-          Major
                                    Target     LIHTC LIHTC         Funding      Estimated
Project Name        City            Population (x)   (x)           Sources      Completion Date




2012 Consolidated Funding Cycle Application                                   Page 154 of 286
5. For the proposed project, list below the names of agency staff members or the third party firm
   assigned to each task.

                                                                    Years of Experience
                                   Staff Person Name or             Developing or Managing
Position Name                      Contracted Firm Name             Multi-family Housing



Executive Director/owner



CFC/grant application writer



Project Developer



Development Consultant



Construction Manager



Asset Manager



Compliance Manager



Envelope Consultant



Other



Other




2012 Consolidated Funding Cycle Application                                 Page 155 of 286
6. Explain the roles of each of the above positions in the development and management of the
proposed project: Limit the response to two pages maximum.




2012 Consolidated Funding Cycle Application                              Page 156 of 286
7. If there is currently more than one project in development, explain how multiple projects will
   be managed within the organization:




8. If staff are expected to perform other agency duties in addition to the project’s development,
   explain how the coordination of those duties will be carried out:




2012 Consolidated Funding Cycle Application                                   Page 157 of 286
9. How long will the consultant (if applicable) be staying involved in the development process?

                                         (x)                                                (x)

Through application submission                      Through Certificates of Occupancy

Through reservation award                           Through lease-up

Through funding (conditions met)                    Through stabilization or beyond

Through construction                                Not applicable




10. What is the expertise of the board or for-profit officers and principal members as it relates to
real estate development and operation?




NOTE: Sponsor capacity scoring will also include a review by OHCS of the sponsor’s past
performance, if any, related to developing previous projects on time and on budget.




2012 Consolidated Funding Cycle Application                                    Page 158 of 286
  REQUESTS FOR SPONSOR CAPACITY ON ASSET MANAGEMENT


OHCS’ Asset and Property Management section conducts evaluations of sponsor capacity on
projects currently in operation. The evaluation considers how the owner or managing general
partner of the ownership entity is meeting compliance and asset management obligations. APM
identifies sponsors who are in compliance and those sponsors who may have material or
reoccurring non-compliance issues. In the 2012 Round, the APM evaluation will be worth 5
points in the application.



NOTE: The last day to submit the Asset Management Information Request (see below) to the
RAD is:
       March 9, 2012



APM will return the completed form and ranking score to the Multifamily Housing Section. The
final APM ranking will remain in effect until the following year. Increased on-site evaluation will
help OHCS better understand the portfolio



APM will take the following items into consideration, if applicable, when determining asset
management and program compliance:
       Sponsor is in good standing with all compliance rules and regulations.
       Sponsor has submitted the Analysis of Income and Expense report as required.
       Sponsor is current on all OHCS charges, fees and loan payments.
       Sponsor has met all financial reporting requirements.
       Sponsor is in compliance on Section 8 properties.




2012 Consolidated Funding Cycle Application                                    Page 159 of 286
                               Asset Management Information Request

    Note: The term sponsor refers to the proposed project owner or the managing general partner of
    the ownership entity.



Sponsor:                                                                        Date:



Project Name:



Project Location:


                                                                       # of
Project Type:                                                          Units:


Funding Sources Requested (x):         LIHTC      HOME           Trust Fund         LIWP       OAHTC

                                       GHAP       HELP           ORR


List all developments in operation funded with OHCS resources.




    2012 Consolidated Funding Cycle Application                                    Page 160 of 286
Area below to be completed by APM                                                   Score:

1. Sponsor currently in good standing with all compliance rules and        In Compliance        Concern
regulations on all projects funded with OHCS grant, loan or tax credit
resources.
APM Comment:


1 Point to be awarded if the sponsor is responsive and working toward a resolution (if there is a compliance
issue) with the assigned Compliance Officer/Contract Officer. This would refer to issues of non-compliance
such as: a) Outstanding 8823’s b) Outstanding items from the Management and Occupancy
review/Inspections c) Outstanding issues dealing with the Section 8 Program to include the voucher process
and whether properties in the sponsor’s portfolio have been referred to the HUD Departmental Enforcement
Center (DEC)? Describe, if applicable, the steps taken to remedy the non-compliance. d) Programmatic
requirements as it applies to rent limits and income eligibility.
No point will be awarded if applicant is unresponsive and not working toward a resolution.


2. Has the sponsor been cited on any project funded with OHCS loan         In Compliance     Concern       N/A
proceeds for unauthorized distribution of surplus cash within the last
three years?
APM Comment:


If this question is not applicable, the Sponsor will receive 1 point.

3. Sponsor is current on all charges, fees, and loan payments owed to      In Compliance     Concern       N/A
OHCS.
APM Comment:
1 Point will be awarded if sponsor is current on all charges, fees and loan payments owed to OHCS.

4. Sponsor has submitted the audited financial statement as required by    In Compliance     Concern       N/A
the Loan Documents.
APM Comment:
1 Point will be awarded if sponsor has submitted the audited financial statement as required by the loan
documents. This is only applicable to sponsors who have a loan with OHCS.
If this question is not applicable, the sponsor will still receive 1 point.




Name and Signature of APM Reviewer                                                           Date




       2012 Consolidated Funding Cycle Application                                 Page 161 of 286
    PART 9 -FINANCIAL FE ASIBILITY AND RE ADINESS TO
                       PROCEED
(Worth 30 possible points)

NOTE: Question #1 in this Section does not have a page length limitation. Applicants should
limit the response to each narrative question to one-half page, 11 or 12-point type.
Proposed Project Schedule

The project schedule should be accurate and the timelines should be consistent with the
requirements of the project’s components, such as providing adequate time to complete
acquisition or satisfaction of funding conditions.
Financial Assumptions

Explain how the applicant created the development and operating budgets. For each line item of
the pro forma Uses of Funding, Income and Expenses spreadsheets, explanation of the source
or justification of the budgetary amounts is required. Provide detailed information and do not
combine line items. The application may lose points if answers do not provide adequate detail.
Non-OHCS Sources Table

Indicate the amount, source, terms and status of all non-OHCS funds and potential community-
based resources for this project. Complete the narrative request, which follows the tablet.
Developer Fee

Complete the table to demonstrate the total developer fee being requested, including consultant
fee and project management fee, if applicable. OHCS considers a project management fee, or
construction management fee, paid to the project owner, developer, contractor or consultant to
be the total developer fee (and subject to the 15 percent cap). OHCS will employ a third-party
construction inspector. Most transactions will be inspected. The OHCS Construction Analyst will
evaluate the construction/progress reports of the third-party inspector. In some cases, the
OHCS Construction Analyst may be the one to make inspections if the third-party construction
inspector is unavailable when needed.
Contractor Overhead and Profit

The general contractor/builder’s profit may not exceed 14 percent of the total hard construction
costs less contractor overhead, profit and general conditions, regardless of the funding source.
If an identity of interest exists, the general contractor/builder’s profit may not exceed 10 percent
of the total hard construction costs less contractor overhead, profit and general conditions. (For
hard construction cost, applicants are to use only the subtotal from the “Construction Costs”
section of the Uses of Funding Form).




2012 Consolidated Funding Cycle Application                                    Page 162 of 286
Builder’s profit shall include all of the following:

      Profit;
      Overhead;
      General requirements; and
      Project management fees associated with construction.

Builders’ Risk Insurance and/or performance bonds may be separate line items and are not
included in the percentage.
How the Project will Remain Affordable Over the Entire Period of Affordability

Describe the plan to control future costs such as management and operating expenses that
could affect the project is required. What will be the plan when property tax reductions, federal
or state tax credits, or other subsidies expire? If the pro forma shows the cash flow diminishing
over time or becoming negative, explain how the project will maintain a positive cash flow.
Existing Subsidies with Acquisition Projects

Reflect all rental assistance and subsidy currently in the project.
Project-based Rental Assistance

Include only those project-based rental assistance (PBA) sources from which there are
commitments for post-construction/rehabilitation. The PBA should be an expected resource for
more than one year, preferably for a minimum of 20 years, or under an existing renewable
contract.
Preservation or Expiring Use

If the proposed project is preservation of a HUD or RD financed project or an expiring LIHTC
project, detail the status of sale or transfer transactions. Complete the “Status of Negotiations”
table. Confirm that this information is consistent with the other sections of the application before
application submission.
Existing Tenant Survey

Applicants must complete this form for all projects occupied at the time of application,
regardless of the funding source(s) requested.
Tenant Relocation

This form must be completed and submitted if the proposed project will relocate (permanently or
temporarily) any household or business. The entire form is required for OHCS HOME
applications. If the application does not include a request for HOME funds, the applicant should
only answer the first five questions. The responses to each narrative question should be limited
to one-half page, e 11 or 12-point type.




2012 Consolidated Funding Cycle Application                                    Page 163 of 286
                                  Proposed Project Schedule

Project Name:                                        Schedule Date:


                                              Proposed Date   Revised Date    Completed Date
Activity                                      (month/year)*   (month/year)*   (month/year)*
Site
 Option/Contract executed
 Site Acquisition
 Zoning Approval
 Site Analysis
 Building Permits & Fees
 Off-Site Improvements
Pre-Development
 Plans Completed
 Final Bids
 Contractor Selected
Financing
  Construction Loan:
 Proposal
 Firm Commitment
 Closing/Funding of Loan
  Permanent Loan:
 Proposal
 Firm Commitment
 Closing/Funding of Loan
Development
 Syndication/Partnership Agreement
(LIHTC)
 Construction Begins
 Construction Completed
 Certificate of Occupancy
Marketing
 Lease Up Begins
 Lease Up Completed
 Absorption (units per month)

* Indicates completion by end of the month



2012 Consolidated Funding Cycle Application                               Page 164 of 286
       FINANCIAL ASSUMPTION /QUESTIONS


1. Describe in detail how development budget and operating budget figures were created.




2. If the project is a preservation project, describe what arrangement has been made with the seller
   regarding existing reserve accounts?




3. Explain how the development budget figures in this application will still be valid at the time of
   construction.




4. Explain the timeline for obtaining funding and discuss why it is important the project receive CFC
   funding in this cycle.




       2012 Consolidated Funding Cycle Application                                    Page 165 of 286
5. Discuss any sources not currently committed to the project. At what point in development will these
   sources be available?




6. Explain how the choice of site for new construction or the physical aspects of the project for
   acquisition/rehab, including location, impact project costs.




7. Explain how the site location, project design and unit amenities are beneficial and appropriate for the
   target population.




8. Describe the applicant’s financial investment or contribution to the project, such as land donation, pre-
   development resources, etc.




       2012 Consolidated Funding Cycle Application                                   Page 166 of 286
  9. Complete the Sources Table below to show all non-OHCS sources of funding for project development
                                                                 Institution                      Status
                                                   Anticipated   Contact person                   (committed,
 Non-OHCS Source of funds                          amount        and phone      Anticipated       conditional,
                                                   and type      number         Terms             tentative
                                                                                                  i.e. loan
                                                   i.e. 25,000   I.M. Generous    i.e. 3%,        committee
 i.e. lender, grantor, etc.                        grant         503.123.4567     30 years        meeting 9/1/02
 Lender
 Donated land
 Waived system development charges
 CDBG from city/county
 Local general revenue funds
 Property tax exemption
 Corporate or private contributions
 Operating subsidies (Non-OHCS)
 Other?
 Other?
 Other?


  10. List the amount of Developer Fee (including consultant fee and project management fee) to be paid.
                                                                      Cash                    Deferred
 Project Applicant                                                    $                       $
 Project Developer (if different from applicant)                      $                       $
 Project Consultant                                                   $                       $
 Project Management Fee to sponsor, developer or consultant           $                       $
 Total development fees (including management fee above)
 for this project                                                     $                       $
 Term of deferred developer fee:
 Interest rate charged for the deferred developer fee:                                        %


11. List below the amount of contractor overhead and profit to be paid (include contractor liability insurance
    but exclude builders’ risk insurance and/or performance bond).


Total contractor’s overhead to be paid                                       $
Total contractor’s profit to be paid                                         $
Total contractor’s general conditions to be paid                             $
Total contractor overhead, profit and general conditions for this project    $
Percent of construction total                                                %



        2012 Consolidated Funding Cycle Application                                  Page 167 of 286
    12. Describe how the project will remain affordable over the entire period of affordability. If applicable,
        discuss the plan to maintain current levels of affordability once the benefits of OAHTC and/or LIHTC
        funding expire.




 13. Existing Subsidies with Acquisition Projects (Show number of subsidized units)
                      Section 221(d)(3) Below Market Interest Rate (BMIR)
                      Project-based Section 8
                      Section 236
                      Other. Describe:


14. Number of years remaining in Rental Assistance Contract?




 15. Describe how the Replacement Reserve Schedule was developed. Identify how the architect,
     contractor, or other professionals provided input. (e.g. – costs used for the items, materials, appliances,
     and fixtures in the spreadsheet and expected life span).




        2012 Consolidated Funding Cycle Application                                    Page 168 of 286
        *ATTACH A SCHEDULE OF THE MAXIMUM RENTAL RATES ALLOWED BY THE RENTAL
        SUBSIDY SOURCE (I.E., HUD OR RD), IF APPLICABLE.

        **ATTACH A SCHEDULE OF REAL ESTATE HOLDINGS

        OHCS requires all applicants submit a Schedule of Real Estate Holdings on projects with 10 or
        more units or the project cost is more than $500,000. The REO schedule can be provided in a
        format currently in use by the applicant or refer to the above link for the OHCS format.

        ***ATTACH THE 30 YEAR REPLACEMENT RESERVE SCHEDULE.

        OHCS requires all applicants submit a 30 Year Replacement Reserve Schedule. Submit the
        form in the OHCS format. See the above link for the OHCS form..



  16. Preservation or Expiring Use (Do not complete unless project is HUD or RD preservation or expiring
      use)
                                                                                    Date
                                                                           Yes      Completed       No
  Status of Negotiations                                                   (x)      or Expected     (x)
  Project is at risk of losing rental subsidy
  Project was developed with HUD funding and HUD has been notified of
  intent to purchase
  Project was developed with RD funding and RD has been notified of
  intent to purchase
  Project is at risk of turning to market rate
  Sales price has been negotiated with seller
  Sales price has been submitted to HUD or RD for approval
  Scope of rehab has been submitted to HUD or RD for approval
  Acquisition date has been set
  Existing loan is being assumed and the terms are being modified
  Rents will increase under the new financing


17. Name and address of the person notified of the intent to purchase.




        2012 Consolidated Funding Cycle Application                               Page 169 of 286
18. Existing Tenant Survey
    For HOME and LIHTC Applications, complete the entire form.
    *For all other applicants, complete the following columns: unit #, # of bedrooms, existing and proposed rents
Owner's                                   Project                                              Address:
Name:                                     Name:
Management Company Name:                                             Address:

Contact name and phone                                                                     Number of
number:                                                                                    Units:
Unit Mix           Family Mix                Household Information                                                   Rental Charges**
                                                                                  Date of                 Annual     30% of
*Unit      *# of   No. of Adults-Ages                                             First        Section    Househol   Monthly   *Existing   *Proposed
#          Berms   No. of Children-Ages      Name                           Sex   Occupancy    8          d Income   Income    Rent        Rent
                   A
                   C
                   A
                   C
                   A
                   C
                   A
                   C
                   A
                   C
                   C
** Excluding tenant paid utilities

If existing business(s) are located in the project, list the business name and address, owner/contact person, and phone number of each.


   2012 Consolidated Funding Cycle Application                                            Page 170 of 286
Are there any accessible units? (yes/no)                        List the unit number(s) of the accessible unit(s)
Unit Mix           Family Mix          Household Information                                               Rental Charges
                   No of Adults-                                                               Annual      30% of
*Unit      *# of   Ages No. of                                       Date of First   Section   Househol    Monthly   Existing Proposed
#          Bdrms   Children-Ages       Name                    Sex   Occupancy       8         d Income    Income    Rent     Rent
                   A
                   C
                   A
                   C
                   A
                   C
                   A
                   C
                   A
                   C
                   A
                   C
                   A
                   C
                   A
                   C
                   A
                   C




    2012 Consolidated Funding Cycle Application                                  Page 171 of 286
              A
              C
              A

              C




2012 Consolidated Funding Cycle Application   Page 172 of 286
HOME Projects Only

In October 1997, OMB significantly revised standards for federal agencies that collect, maintain or report
Federal data on race and ethnicity for statistical purposes, program administrative reporting or civil rights
compliance reporting. Under the revised policy, HUD must offer respondents the option of selecting one or
more of five racial categories. HUD must also treat ethnicity as a category separate from race. Finally,
terminology for certain racial groups and ethnic groups has been changed. The changes will have two
significant impacts on grantee data collection and reporting: (1) Hispanic will now be considered an ethnicity
category rather than a race category; and (2) Asian/Pacific Islander will be split into the two categories of Asian
and Native Hawaiian/Other Pacific Islander.

The designation categories (for head of household) are listed below. Head of Household tenants are allowed
to self-designate which ethnic and racial groups they belong to.

Please indicate ethnic and racial choices by housing unit below: (use "y/n" and "race number" codes)

    Hispanic?                              14 - American Indian/Alaska Native

    y – yes                                15 - Native Hawaiian/Other Pacific Islander

    n – no                                 16 - American Indian/Alaska Native and White

    Race of Head of Household Code         17 - Asian and White

    11 – White                             18 - Black/African American and White

    12 - Black/African American            19 - American Indian/Alaska Native and Black/African American

    13 – Asian                             20 - Other Multi Racial




   2012 Consolidated Funding Cycle Application                                                 Page 173 of 286
                      Race                            Race                    Race
    Unit #   Hisp?    code          Unit #    Hisp?   code   Unit #   Hisp?   code          Unit #   Hisp?   Race code




2012 Consolidated Funding Cycle Application                                   Page 174 of 286
Tenant Relocation

Information below is to be completed for all projects with possible temporary or permanent relocation,
regardless of funding sources.

 Type of displacement and possible number of households           Temporary         Permanent
 affected:
                                                                  (# Households)    (# Households)




 What process will be used to relocate residents?




 How will displacement and specialized housing for tenants with disabilities and/or households with
 limited financial means be addressed?




 What funding source will be used to accomplish the relocation?




 What amount of funding will be set aside for relocation assistance?   $


Additional information required if OHCS HOME is a requested source of funding:




2012 Consolidated Funding Cycle Application                                              Page 175 of 286
 What guidelines will be used for calculating relocation assistance?




 What is the availability of comparable replacement units?




 Describe the local jurisdiction's established displacement/relocation policy (if applicable):




 How can work be phased to avoid moving tenants?




 How will the newly rehabbed units be affordable to original and new tenants?




2012 Consolidated Funding Cycle Application                                                 Page 176 of 286
 Projects applying for the HOME program will trigger federal Uniform Relocation Act requirements.
 These requirements may have a significant financial impact on the project. For more information
 refer to "Relocation" in the HOME Program Section of this Application.




2012 Consolidated Funding Cycle Application                                            Page 177 of 286
                         PART 10 PRO FORM A SP RE ADSHEETS
    (These are scored with other sections)
    DIRECTIONS

    OHCS has organized the pages of the Excel workbook in a different order than how they are listed on
    the Application Submittal Checklist. The most-used pages appear at the front. Insert the hardcopy
    spreadsheets in the same order as they are listed on the Application Submittal Checklist.

    OHCS has protected the cells without a password to help avoid changing the formulas in the cells. If
    applicants wish to change data in a protected cell, they need to use the “Tools” tab to unprotect the
    cell.

    Fill in the project name on the Sources of Funding page. The spreadsheet will automatically link it
    throughout the workbook.

    Fill in the date on each spreadsheet page. The spreadsheet will not link the date through the
    workbook to allow pages to reflect revision dates.

    Do not use medium to dark colors as form fill colors as they will not copy well.

    OHCS has embedded "comments" in the cells to help applicants provide correct information.

    Generally, OHCS has highlighted (in yellow) the cells in which applicants should enter data. The
    exception to this is the Sources of Funding page.

    Sources of Funding page

    Note: If the project is a mixed-use project with a commercial/retail component, go to the row that has
    A,B,C, etc. and highlight columns F and I. In the shaded area, right click the mouse and select
    “Unhide” at the bottom. This will reveal the Commercial input column. Input information according to
    the instructions that follow:

    Fill in Project name and the date at the top of the page.

    Enter source dollar amounts in their proper locations. Be sure to include Commercial if applicable.

    If applying for LIHTC, do not attempt to enter numbers in the cell labeled “LIHTC equity.” The
    spreadsheet will automatically fill this cell after completion of the Calculation of Tax Credit page.

    Uses of Funding page

    Note: If the project is a mixed-use project with a commercial/retail component, go to the row that has
           A,B,C, etc. and highlight columns C and E. In the shaded area, right click the mouse and
           select “Unhide” at the bottom. This will reveal the Commercial input column. Input information
           according to the instructions that follow:

    Fill in date cell.




2012 Consolidated Funding Cycle Application                                                  Page 178 of 286
    Put an “x” in “acq/rehab” cell if funding is being requested for an acquisition rehabilitation application.
    This will enable the spreadsheet to correctly calculate the developer fee.

    Fill in IRS set aside (only if requesting LIHTC). See comments for that cell.

    Enter square footage for Residential areas, Common Areas, Commercial/other areas.

    The spreadsheet will calculate the Total Square Footage based on these entries.
    Cost column

    Enter costs by line item. "Other" lines for "other" costs have been provided, however most costs
    should fit into the pre-labeled line items.

    Do not combine line items or request "see above" or "see below."

    Show contractor's profit, overhead and general conditions as separate line items.
    “Cost per unit,” “square foot” and “percent of total” columns

    These columns will be calculated automatically. The calculations will be based on the residential and
    common areas only.
    Funding Source column

    List actual funding source, e.g., HOME, Trust Fund, permanent loan, donation. Even though the
    sources will often change during the development of the project. Reviewers of the application need to
    determine if the applicant proposes to use the fund sources for eligible costs.
    Reasonably Expected Basis and Estimate Gross Expended columns

    Complete these columns only if requesting LIHTC.
    Bottom of second page

    The workbook will automatically calculate and complete these cells. If the "Surplus or Gap" cell shows
    a positive or negative number, then the Sources and Uses do not match by that amount. Applicants
    need to go back and correct the error.

    Housing Operating Budget - Income page

    Enter the date at top of the page.

    Enter County name at top of the page. If this is not done, the formulas for Median Income % will not
    work.

    Every applicant must complete this page, including those requesting OAHTC.

    In the "Unit Size" column, enter the following designations for appropriate unit sizes:

    SRO - use for single resident occupancy

    0 - use for efficiencies or studio apartments

    1 - use for one bedrooms

2012 Consolidated Funding Cycle Application                                                   Page 179 of 286
    2 - use for two bedrooms

    3 - use for three bedrooms

    continue in this manner

    "Number of Baths" column - use .5, 1, 1.5, 2, etc.

    "Median Income %" column. Both the "Income without OAHTC" and the "Income with OAHTC" pages
    use formulas to automatically calculate the percentage of median income. OHCS will consider the
    percentages to be expressed as a not-to-exceed percent of median income in 10 percent intervals.
    For example, if the percentage of median income is calculated by the formula to be 43 percent, then
    OHCS will consider the not-to-exceed percentage of median income to be 50 percent. OHCS will use
    these not-to-exceed percentages in all legal agreements and declarations between the applicant and
    the state. Direct questions about this policy to the RAD.

    If requesting OAHTC, applicants must complete this page and the "Income with OAHTC" page found
    later in the workbook.

    Enter the total income for Service Revenue and any Other Revenue for the project in the “Total
    Annual Income” column. This is the annual income for all units using the service or other project
    revenue as project income.

    The spreadsheet defaults the Annual Inflation Rate Factor for income to 2 percent. If a different rate
    is used, explanation must be provided in the Financial Description section of the application. The
    same applies to the default 5 percent vacancy rate at the bottom of the page.

    The spreadsheet does not allow the Inflation Factor to vary on a line item-by-line item basis.

    Housing Operating Budget - Expenses

    Enter the date at the top of the page.

    The Annual Inflation Rate Factor at the top of the page is defaulted to 3 percent. If this rate is
    changed, the change must be supported in the Financial Description narrative.

    Complete only the highlighted cells, the spreadsheet will automatically calculate and complete the
    other cells.

    In the Permanent Loan row, enter the interest rate, term and loan amount. If requesting OAHTC,
    show the original interest rates, not the rate after the OAHTC is applied.

    The spreadsheet will complete the OAHTC permanent loan row using the information entered on the
    OAHTC calculation page.

    Enter any portion of the permanent loan not affected by the OAHTC reduction in the "Portion of loan
    w/o OAHTC" row.

    Amortized Debt row should include HOME loans, Trust Fund loans, partnership loans, etc.




2012 Consolidated Funding Cycle Application                                                  Page 180 of 286
    This spreadsheet page will calculate cash flow projections up to 30 years, but only prints the first five
    years. After that point, it shows only years 10, 15, 20 and 30.

    Utility Allowance Information

    Enter the date at the top of the page.

    Enter data as requested by the form.

    Provide a copy of the source of the Utility Allowance Calculation (Housing Authority, etc.).

    Commercial Operating Budget – Income page

    Enter the date at top of the page.

    The Annual Inflation Rate Factor at the top of the page is defaulted to 2 percent. If this rate is
    changed, applicants must justify the change in the Financial Description narrative.

    Complete only the highlighted Cells, the spreadsheet will automatically calculate and complete the
    other cells.

    Commercial Operating Budget – Expenses page

    Enter the date at the top of the page.

    The Annual Inflation Rate Factor at the top of the page is defaulted to 3%. This may be changed but
    the change must be justified in the Financial Description narrative.

    Complete only the highlighted Cells, the spreadsheet will automatically calculate and complete the
    other cells.

    In the Permanent Loan row, enter the interest rate, term and loan amount for the commercial loan.

    This spreadsheet page will calculate cash flow projections up to 30 years, but only prints the first five
    years. After that point, it shows only years 10, 15, 20 and 30.

    Pro forma Summary page

    Enter the date at the top of the page.

    This page requires no other data entry from the applicant.

    Applicants must submit this summary page with the pro forma sheets.

    Project Summary page

    Enter the date at the top of the page.

    This page requires no other data entry from the applicant.

    Applicants must submit this summary page with the pro forma sheets.

    Calculation of Tax Credit page



2012 Consolidated Funding Cycle Application                                                 Page 181 of 286
    Only applicants requesting LIHTC need submit this page.

    Enter the date at the top of the page.

    Place an "X" under either "yes” or “no" regarding Qualified Census Tract or Difficult to Develop
    designations. If "yes", the spreadsheet will automatically calculate the 130 percent.

    Enter the applicable fraction in the appropriate cell.

    Input the amount of tax credit requested and the tax credit yield. If the yield contains fractions of
    cents, enter it as a decimal of up to 3 places. The spreadsheet will calculate the tax credit equity and
    link it to the Sources of Funding page.

    Housing Operating Budget - Income with OAHTC page

    Only applicants requesting OAHTC must submit this page.

    Enter the date at the top of the page.

    In the "Unit Size" column, enter the following designations for appropriate unit sizes:

    SRO - use for single resident occupancy

    0 - use for efficiencies or studio apartments

    1 - use for one bedrooms

    2 - use for two bedrooms

    3 - use for three bedrooms

    continue in this manner

    "Number of Baths" column - use .5 or 1 or 1.5 or 2, etc.

    "Median Income %" column. Both the "Income" and the "Income with OAHTC" pages use formulas to
    automatically express the percentage of median income. OHCS will consider the percentages to be
    expressed as a not-to-exceed percentage of median income in 10 percent intervals. For example, if
    the percentage of median income is calculated by the formula to be 43 percent, then OHCS will
    consider the not-to-exceed percentage of median income to be 50 percent. OHCS will use these not-
    to-exceed percentages in all legal agreements and declarations between the applicant and the state.
    Direct questions about this policy to the RAD.

    Enter the total income for Service Revenue and any Other Revenue for the project in the “Total
    Annual Income” column. This is the annual income for all units using the service or other project
    revenue as project income.

    The spreadsheet defaults the Annual Inflation Rate Factor for income to 3 percent. If a different rate
    was used, explanation must be given in the Financial Description section of the application. The same
    applies to the default 5 percent vacancy rate at the bottom of the page.

    The spreadsheet does not allow the Inflation Factor to vary on a line item-by-line item basis.

2012 Consolidated Funding Cycle Application                                                   Page 182 of 286
    OAHTC Rent Reduction Calculation

    Enter the date at the top of page.

    Enter only the portion of the loan that is reduced by the Oregon Affordable Housing Tax Credits in the
    loan amount labeled “W/O OAHTC”, as this is used to calculate the interest rate reduction, so the
    portion at full rate does not need to be in the OAHTC calculation page.

    Input data in shaded cells and the spreadsheet will calculate and complete the other cells.

    Pass through requirements and amounts are shown just above the Loan Amortization section. The
    pass through number must be positive (or "over").




2012 Consolidated Funding Cycle Application                                              Page 183 of 286
    ATTACH PRO FORMA SPREADSHEETS AND UTILITY ALLOWANCE VERIFICATION HERE




2012 Consolidated Funding Cycle Application                     Page 184 of 286
                   PART 11- CONSTRUCTION COST DOCUMENTS
    (Scored with other sections)
    Submission of Construction Cost Documents

    Applicants must include the cost estimates used to develop the construction budget in the application.
    Acceptable cost estimates include: a contractor’s or cost estimator’s worksheet, rehabilitation
    assessment, scope of work, or any other documents that show how the construction costs were
    established.




2012 Consolidated Funding Cycle Application                                              Page 185 of 286
                    ATTACH COST ESTIMATE VERIFICATION DOCUMENT(S) HERE




2012 Consolidated Funding Cycle Application                         Page 186 of 286
           PART 12 HOME INVESTMENT PART NERSHIPS PROGRAM
                               (HOME)
    HOME FORMS SUBMITTED WITH APP.: PAGES 217-228 (Not all may apply to this project)



                                        Introduction and Requirements

    Congress created The HOME Investment Partnerships Program (HOME) in October 1990. The
    HOME Program encourages partnerships among local governments, nonprofit and for-profit
    organizations, individuals, and the State to further the development of housing to meet the needs of
    low and very low-income individuals and families. Under the HOME program, each state must
    address housing needs consistently with the regional housing priorities outlined in Oregon's
    Consolidated Plan (CP).

    HOME applicants must meet all of the following requirements as well as the items listed on the
    application checklist. Evaluators will take this into account when scoring applications.

          Applicants must have identified proposed sources of the required non-federal match in a
           minimum amount of 25% of the HOME request. Commitments of match are required prior to
           commitment of HOME funds.
          If tenants (residential and/or commercial) reside on the property, or if the project involves
           acquisition, then the Uniform Relocation and Real Property Acquisition Act may be applicable.
           Applicants must issue acquisition and/or relocation notices. Submit copies of the notices and
           receipt documentation by the tenant or seller with the CFC application. Reflect the estimated
           relocation costs in the pro forma.
          The proposed project must be consistent with Oregon’s Consolidated Plan (CP). Applications
           for projects located in Medford or Ashland must include a letter from the appropriate city
           confirming CP consistency is required.
          The proposed project must provide permanent or long-term transitional housing. Overnight
           shelters, public facilities, residential care facilities or housing for workers on a seasonal basis
           are not eligible for HOME funding.

    Community Housing Development Organizations (CHDOs)

    Community Housing Development Organizations, or CHDOs, are specific types of nonprofit
    organizations defined exclusively for the HOME Program. According to the HOME regulations,
    CHDOs must be developers, sponsors, or owners of HOME-assisted housing. CHDOs must have
    effective management control of projects, and must be organized and structured according to strict
    standards specified in the HOME regulations. A minimum of 15 percent of each annual HOME
    allocation must be set aside for State Certified CHDOs. Eligible activities under the 15 percent CHDO
    set aside include acquisition, rehabilitation and new construction of rental housing. This set aside is
    statewide, and does not preclude CHDOs from accessing other HOME funds.



2012 Consolidated Funding Cycle Application                                                  Page 187 of 286
    CHDOs who receive assistance under HOME Final Rule §92.303 must adhere to a fair lease and
    grievance procedure approved by OHCS. They must also plan for and follow a program tenant
    participation in management decisions. CHDOs who receive assistance will also be eligible to apply
    for a CHDO operating grant to pay for the reasonable and necessary costs for the operation of the
    CHDO.
    Form of Assistance

    OHCS will provide HOME financial assistance in the form of a grant or loan in an amount appropriate
    to the scope of a proposed project, and the needs and resources of the applicant. OHCS reserves the
    right to adjust the amount of HOME funds awarded to a project, and to negotiate modifications to the
    proposed work plan and budget prior to executing a grant agreement.

    OHCS reserves the right to fund projects that reflect the highest and best use of HOME funds. OHCS
    may place conditions on awarded projects, but are not limited to, decreasing rents, lower income
    levels to be served, etc.
    Eligible Applicants

    Eligible applicants include individuals, local governments, nonprofit and for-profit organizations
    including, but not limited to, cities, counties, housing authorities, nonprofit community-based
    organizations such as community housing development organizations (CHDOs), community
    development corporations (CDCs), and community action programs (CAPs). Projects proposed by
    eligible applicants must be located within the boundaries of the State's HOME Program.
    Administrative Capacity

    The HOME Program requires applicants have the experience to administer the complex requirements
    of the HOME Program. If applicants do not have adequate experience administering other State,
    Federal or local programs, OHCS may require the applicant to contract with an experienced entity to
    assist in administering and managing the HOME project.
    Eligible Projects & Properties

    An eligible HOME project is one or more buildings on a single site or multiple sites under common
    ownership, management, and financing and are part of a single undertaking. HOME-assisted projects
    may be privately or publicly owned and contain any number of units, and any combination of unit sizes
    and styles. An eligible HOME project must meet the definition of housing in accordance with 24 CFR
    Part 92.2.
    Special Needs Projects and HOME Funding

    In order to utilize HOME funding in projects planning to house special needs population, Applicants
    must certify to the following requirements:

          Lease Agreement: A one-year lease agreement must be offered to tenants in HOME-assisted
           units. In addition to the one-year term, the lease must stipulate that termination or refusal to
           renew be served to the tenant in writing, specify the grounds for the action, and provide a



2012 Consolidated Funding Cycle Application                                                Page 188 of 286
           minimum of 30 day notice before termination of tenancy. For more information on required and
           prohibited lease provisions, see CFR 92.253.
          Services: While OHCS recognizes that appropriate supportive services must be available to
           help tenants with special needs live as independently as possible, services cannot be required
           as a condition of tenancy in a HOME-assisted project providing permanent housing. Supportive
           services can be required in transitional housing.
          Affirmative Marketing Requirements: HOME-assisted projects of five or more units must be
           affirmatively marketed to all persons within the special needs group. Referrals from a single
           social service agency cannot be used exclusively to fill the units. A good faith effort must be
           made to inform and solicit applications from members of the special needs group throughout
           the market area. (Group homes are considered to be “one” HOME assisted unit).

    Please Note: HOME-assisted projects designated for persons with disabilities cannot be
    restricted to persons with specific types of diagnoses or subclasses of disabilities (such as
    developmentally disabled, chronically mentally ill, or persons with only physical disabilities).
    Resident services may be specific to subclasses of disabilities, but the housing may not.
    HOME-assisted housing for disabled persons must be open to qualified persons with any type
    of disability.

    If the proposed project will be licensed or utilize operating funds provided by the Oregon Department
    of Human Services (DHS), obtain a letter from DHS confirming the project can comply with the
    requirements as stated above and submit it with this section.
    Ineligible Properties

    HOME funds may not be used for:

          projects assisted under section 9 of the 1937 Act (annual contributions for operation of public
           housing)
          carrying out activities authorized under part 968 (Public Housing Modernization)
          providing assistance to eligible low-income housing under 24 part 248 (Pre-Payment of Low
          Income Housing Mortgages)
          providing assistance to a project previously assisted with HOME funds during the period of
           affordability
          emergency shelters or facilities such as nursing homes, convalescent homes, hospitals,
           residential treatment facilities, correctional facilities or student dormitories.

    Projects previously assisted under HUD's Rental Rehabilitation Program may or may not be eligible
    for assistance dependent upon the conditions placed against the property by the Rental Rehabilitation
    Program.

    Applicants with projects located in Portland/Multnomah County/Gresham, Washington County,
    Clackamas County, Eugene/Springfield, Salem/Keizer, or the city of Corvallis should contact those
    jurisdictions for information on their local HOME program.



2012 Consolidated Funding Cycle Application                                                Page 189 of 286
    Projects may only receive HOME funds once. This prohibits applicants from applying for HOME funds
    for the first phase of a project and reapplying for HOME funds when developing the second phase of
    the project.

    Projects that have already started construction or have executed contracts for construction are not
    eligible to apply for HOME funds.
    Eligible Activities

    For this round of the Consolidated Funding Cycle, OHCS will provide assistance for new construction,
    rehabilitation, and/or acquisition of low and very low-income rental housing units.

    Rehabilitation includes repairs to existing structures and the conversion of an existing structure to
    affordable housing. Rehabilitation also includes the reconstruction or the rebuilding, on the same lot,
    of housing as long as the number of housing units remains the same. However, the number of rooms
    per unit may be increased or decreased. The reconstructed housing must be substantially similar to
    the original housing.

    Only units receiving HOME dollars are considered "HOME-assisted Units"; therefore, only HOME-
    assisted Units must adhere to HOME expenditure limits, and rent and occupancy guidelines. This
    allows HOME funds serve the low and very low-income tenants in mixed income projects. However,
    applicants should be aware that some HUD monitoring/compliance requirements may "taint" the entire
    project, i.e., if only $1 of HOME funding is part of a project, the requirement may affect the project’s
    funding.

    Transitional housing is an eligible HOME activity. Transitional housing must be designed to provide
    housing and appropriate supportive services to persons, including (but not limited to)
    deinstitutionalized individuals with disabilities, homeless families and children, and homeless
    individuals with disabilities. The purpose of the housing is to move individuals and families to
    independent living within a reasonable time. HOME applicants undertaking transitional housing must
    submit a transitional plan with the application that describes the housing and supportive services that
    help tenants to independent living; the plan must include the estimated time it will take to transition the
    tenants. All HOME- assisted rental housing, including transitional, must offer tenants a one-
    year lease.

    Single Room Occupancy is an eligible HOME activity. For new construction, conversion of non-
    residential space, or reconstruction projects with Single Room Occupancy (SRO) units, each SRO
    unit must contain either food preparation or sanitary facilities (or both). For acquisition or rehabilitation
    of an existing residential structure, neither food preparation nor sanitary facilities are required in each
    SRO unit. If individual units do not contain sanitary facilities, they must be provided in the building for
    tenants to share.

    OHCS’s HOME Program requires that projects receiving funding be reasonably ready to start
    construction within nine months of reservation. It is important projects be ready to proceed within this
    time frame or HOME funds may be revoked.




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    Distribution of Home Units within a Project

    OHCS reserves the right to determine the number of HOME-assisted units in each HOME funded
    project. Not all units in a project must be HOME-assisted. The number of HOME- assisted units is
    based upon the amount of HOME funds contributed to a project. For example, if the total project costs
    are $800,000 and the project receives $80,000 of HOME, then at least 10 percent of the total units
    must be dedicated as HOME units. HOME-assisted units should be evenly distributed throughout the
    project. There should be an equal percentage of HOME units for each bedroom size in the project.
    For example: A 30-unit project contains 12 two-bedroom units and 18 three-bedroom units. Five of the
    units are to be HOME assisted. To assure equal distribution, then 2 of the two-bedroom units (or 16
    percent and 3 of the three bedroom units (or 16 percent) should be HOME assisted.

    To the extent possible, there should be HOME-assisted units in each building of the project. For
    projects where the number of HOME-assisted units proposed would be less than the number of
    buildings, OHCS may provide an exception.
    Eligible Home Costs

    Soft Costs: Eligible project "soft costs" must be reasonable and necessary. Eligible "soft costs"
    include the following:
          lender origination fees;
          credit reports;
          title reports;
          recordation fees;
          appraisals;
          attorney fees;
          loan fees (except for OHCS programs);
          developer's fees;
          architectural and engineering fees;
          building permits and impact fees or system development charges;
          audits, and
          affirmative marketing and fair housing expenses.

    Hard Costs: HOME funds may pay for usual and customary development hard costs, such as:

          costs to meet the HUD Section 8 Housing Quality Standards (HQS);
          costs to meet Fire Administration Act standards;
          rehabilitation and construction costs;
          essential improvements;
          energy related improvements;
          lead-based paint hazards;
          accessibility for persons with disabilities;
          correction or replacement of major housing systems;
          incipient repairs and general property improvements of a non-luxury nature;
          appliances (only those typically found in rental housing, i.e., stoves and refrigerators);
          site acquisition, and;



2012 Consolidated Funding Cycle Application                                                  Page 191 of 286
          laundry or community facilities which are located within the same building as the housing and
           used only by residents and their guests.

    Acquisition Costs: Costs of acquiring improved or unimproved real property.

    Site Improvements: Generally, HOME funds can pay for site improvements that are in keeping with
    improvements of surrounding projects. Site improvements may include on-site roads and sewer and
    water lines necessary to the development of the project. The project site is the property, owned by the
    project owner, upon which the project is located. HOME funds may pay for a utility connection
    including off-site connection from the property line to the adjacent street.

    Relocation Costs: HOME funds may pay for the relocation costs of individuals, families, and
    businesses permanently or temporarily displaced by the project. HOME recipients should know that
    relocation costs will increase the total cost per unit. For more information on relocation, refer to the
    section titled Uniform Relocation Act.

    Developer's Fee: Funding of a developer's fee with HOME funds is an eligible expense. The
    maximum amount of HOME funds that may be expended on a developer's fee will be limited based
    upon the current OHCS policy but in no circumstance shall exceed 15 percent.

    NOTE: HOME funds cannot reimburse HOME recipients for costs incurred prior to execution of
    a grant agreement. Currently the understanding of "costs incurred" includes any obligations
    incurred due to contractual agreements to perform work. Therefore do not enter into an
    agreement or contract to be paid with HOME funds until a grant agreement has been executed.

    Incurring costs may also include entering into an earnest money or sales agreement for acquisition
    and such agreements should be contingent upon receipt of HOME funds. There is one exception.
    Some pre-development costs incurred prior to execution of the HOME Grant Agreement (and no
    earlier than 6 months before application) may be eligible for reimbursement with HOME funds.
    Reimbursement will be limited to the following costs: legal, consulting, environmental and other
    studies, engineering and design costs, zoning approvals, inspections and testing for hazards, costs
    related to obtaining site options, project financing and fees for loan commitments. These activities
    must not have a physical impact on the site. OHCS must pre-approve any use of HOME funds for pre-
    development costs. Reimbursement will only occur after execution of the HOME Grant Agreement.
    Ineligible Home Costs
          HOME funds cannot fund a project reserve account for replacement, a project reserve account
           for unanticipated increases in operating costs, or operating subsidies.
          HOME funds cannot be used to pay for application or loan fees of other OHCS programs.
          HOME funds cannot be used to pay for off-site improvements such as sidewalks, aprons,
           roadways, and sewer lines.
    Minimum and Maximum Funding per Unit

    The minimum investment of HOME funds is $1,000 per unit. The maximum amount of HOME subsidy
    cannot exceed the lesser of and is limited by:




2012 Consolidated Funding Cycle Application                                                 Page 192 of 286
          The number of HOME assisted units in the project. The HOME assistance cannot exceed the
           maximum subsidy allowed per HOME unit. The HOME appendix lists the maximum per unit
           subsidies, adjusted by bedroom size.
          The total per unit development costs. HOME assistance cannot exceed the actual per unit
           development costs for the HOME assisted units in the project.
          The financial needs of the project. HOME projects may not receive more subsidy than is
           required to produce financially feasible projects.

    HOME funds may only pay the actual costs of HOME-assisted housing. If the units in a project are
    comparable in terms of size, number of bedrooms, and amenities, then the actual costs can be
    determined by pro-rating the total development costs. The HOME Program would pay the pro-rated
    share of the HOME-assisted units. When units are not comparable, HOME funds may only pay the
    actual costs incurred for the HOME-assisted units. In this case, the true and actual cost for
    rehabilitating or constructing each HOME-assisted unit must be calculated and separated from the
    total project costs.
    Match

    HOME Program regulations require a 25 percent nonfederal match for all HOME funds used for
    affordable housing. In the past, OHCS passed this match requirement directly to each HOME
    applicant to provide the entire 25 percent match contribution from local resources. OHCS realizes
    there are circumstances that may prohibit an applicant from obtaining some or all of the match
    contribution. It is not the desire of OHCS to deny HOME funds for a viable and needed affordable
    housing project because the applicant cannot identify local resources for match. Currently OHCS has
    surplus match credited to the HOME Program. Therefore, OHCS will consider allocating HOME funds
    to projects that cannot obtain all or some of match contribution. OHCS may give a preference,
    however, to applicants who have identified 100 percent of the required match.

    Eligible HOME match includes:
          A cash contribution from public or private entities (excluding the HOME applicant or project
           owner).
          The grant equivalent of a below market rate loan.
          The present value of waived taxes or fees. The present value of a granted property tax
           exemption can be credited towards the match obligation. However, if a HOME recipient has to
           apply for property tax exemption on an annual basis, then only the first year of the tax
           exemption is credited towards the match requirement. HOME regulations do not permit property
           tax exemption as an eligible form of match for properties owned by Housing Authorities.
          Program income from closed out Community Development Block Grants (CDBG), Urban
           Development Action Grants (UDAG), or HUD Rental Rehab Program funds.
          The value of donated land, not acquired with federal sources, as appraised by an independent,
           certified appraiser. The transfer of property ownership must take place after the HOME
           application has been submitted; otherwise, the donated value will be considered owner equity,
           which is not an eligible source of match.
          The cost of investment in on-site or off-site infrastructure (not made with federal resources) that
           is directly required for the affordable housing assisted with HOME funds. The completion of a


2012 Consolidated Funding Cycle Application                                                Page 193 of 286
           project’s infrastructure investment must be completed within 12 months before HOME funds are
           committed or must be completed as part of the HOME project.
          Proceeds from multi-family affordable housing and single-family project bonds financing. Bond
           financing match is limited to 25 percent of loan amount for single-family projects (1 to 4 units)
           and 50 percent of loan amount for multi-family projects. HOME regulations further limit the
           amount of match funds that can come from bond proceeds.
          The direct cost of supportive services provided to families residing in HOME assisted units
           during the period of affordability. Services must be necessary to facilitate independent living or
           be required as part of a self-sufficiency program.

    Ineligible HOME Match includes:
        Federal resources or funds
        Bank leveraging
        Cash or other forms of contributions from the HOME applicant, project owner, or developer
        Owner equity or investment in the project
        Sweat equity
        Interest rate subsidies attributable to the federal tax exemption on financing, or the value
           attributable to federal tax credits

    Projects where less than 50 percent of the units are HOME assisted will have the match credit
    prorated based upon the percentage of HOME-assisted units to total units. Projects with 50 percent or
    more HOME-assisted units are credited the entire match.

    HOME recipients will be required to provide documentation verifying the commitment and disbursal of
    all match credits.
    Subsidy Layering

    OHCS will evaluate HOME projects to ensure that an excessive amount of government (federal, state,
    or local) subsidy, or "layering" is not proposed. During the subsidy layering review, OHCS will
    evaluate the need for the HOME funds. The review can result in a reduction of HOME assistance,
    reduction in rents, or operating expenses. Factors looked at during the review include:

          Use of HOME funds in combination with other governmental assistance
          Costs are customary for the development of the project and reasonable in terms of industry
           standards
          Sources of funds versus development costs
          Rate of return
          Developer Fees
    Property Standards

    Housing constructed with HOME funds must meet all applicable local codes, ordinances, and zoning
    ordinances at the time of project completion. In the absence of a local code for new construction or
    rehabilitation, HOME assisted new construction or rehabilitation must meet, as applicable, one of
    three model codes: Uniform Building Code (ICBO), National Building Code (BOCA), Standard Building
    Code (SBCCI) or the Council of American Building Officials (CABO) one or two family code.



2012 Consolidated Funding Cycle Application                                                Page 194 of 286
    All newly constructed housing must also meet the current edition of the Model Energy Code published
    by the Council of American Building Officials.

    All housing units rehabilitated with HOME dollars shall, at a minimum, meet either HUD's Section 8
    Housing Quality Standards (HQS) as outlined in 24 CFR 982.40 or Uniform Physical Condition
    Standards, as well as all applicable local codes, rehabilitation standards, ordinances, and zoning
    ordinances. Project sponsors are required to provide documentation that each unit assisted with
    HOME dollars meets these standards when rehabilitation activities are completed.

    For all acquisition, new construction, and rehabilitation projects, HOME recipients must document on
    an annual basis that each unit assisted to provide documentation annually throughout the HOME
    minimum affordability period that each HOME assisted unit meets HQS or Uniform Physical Condition
    Standards. This is a function of project management and someone knowledgeable about the
    Standards will need to review the units. In addition, projects must meet all applicable local codes,
    standards, ordinances, zoning ordinances, and the Fire Administration Act, including installation of
    hard-wired or battery- operated smoke detectors according to standards required by the Fire
    Administration Act.
    Non-discrimination & Accessibility Standards

    Three different sets of nondiscrimination requirements apply to the HOME Program: Section 504 of
    the Federal Rehabilitation Act of 1973; the Fair Housing Act of 1988; and the Americans with
    Disabilities Act (ADA). Both new construction and substantial rehabilitation of multi-family housing
    assisted with HOME funds are subject to and must meet the standards of Section 504. Section 504
    standards apply to all units in a project and not just the HOME-assisted units.

    A substantial rehabilitation project is defined as a project with 15 or more units where the rehabilitation
    cost will equal at least 75 percent of the replacement cost of newly constructed multi-family units.

    Applicants of such rehabilitation projects must meet the following Section 504 criteria:
          Five percent of the units in the project (not just HOME-assisted units) must be accessible to
           individuals with mobility impairments, and an additional two percent must be accessible to
           individuals with sight and hearing impairments.
          Distribute the accessible units evenly throughout the project buildings
          Distribute the accessible units evenly by bedroom size throughout the project.
          When designing a larger bedroom accessible unit.as in a townhouse with inaccessible living
           areas on the second floor, Section 504 recommends the unit be a single floor design.
          When designing an accessible bathroom, consider a roll-in shower in lieu of a shower/tub not
           easily accessed by some physically disabled persons.

    When smaller projects are rehabilitated or when rehabilitation costs are less than 75 percent of the
    replacement cost then: every alteration to a unit must make the unit accessible to the maximum extent
    feasible until 5 percent of the units in the project are fully accessible to people with mobility
    impairments. Alterations to common spaces must always make the project accessible to the
    maximum extent feasible. Consult the Fair Housing Amendments for guidelines about rehabilitation of
    one to four unit rental properties.


2012 Consolidated Funding Cycle Application                                                 Page 195 of 286
    Section 504 accessibility standards are further described in the Uniform Federal Accessibility
    Standards. HOME applicants should provide this information to their architects early in the process to
    insure the project meets the accessibility criteria as defined in Section 504.

    New construction of certain multi-family housing projects is also subject to the accessibility
    requirements in the Fair Housing Act of 1988. The Americans with Disabilities Act (ADA) has a
    broader application than the Fair Housing Act or Section 504, in that it addresses employment
    practices, public services, transportation, and public accommodations. Although the ADA does not
    specifically address residential housing, since housing is covered by Section 504 and the Fair
    Housing Act of 1988, HOME recipients should be aware of the ADA's scope and requirements. HOME
    recipients will need to have the project architect verify that the plans/specifications meet the Section
    504, ADA and Fair Housing standards prior to signing a grant agreement. Architects must verify at the
    completion of the project that the constructed/rehabilitated units have met these standards.
    Allowable Home Rents

    Every HOME-assisted unit is subject to rent controls designed to keep rents affordable to low- and
    very-low income tenants. Rents must be controlled for the period of affordability.

    Two HOME rents apply to a project:

    Low HOME Rent

    For projects containing five or more units, a minimum of 20 percent of the HOME-assisted units in a
    project must have rents that are the lesser of:
          The HUD published Low HOME Rents.
          The Section 8 Fair Market Rents (FMRs) or area-wide exception rents for existing housing
           minus tenant paid utilities; or
    High HOME Rent

    No more than 80 percent of the HOME-assisted units in a project shall have rents that are the lesser
    of:

          The Section 8 Fair Market Rents (FMRs) or area-wide exception rents for existing housing
           minus tenant paid utilities; or
          The HUD published High HOME Rents.

    NOTE: If an applicant's housing authority has been granted an area-wide exception to the FMR's,
          then the applicant should contact OHCS for information on the HOME rents

    To determine the maximum allowable rents refer to the tables later in this Section, which lists the Fair
    Market Rents, High Home Rents, and Low HOME Rents for each county. Rents are adjusted based
    on the number of bedrooms in the unit and include the utility costs. The HOME rents must be
    reduced to include the amount of all utilities (except telephone and television cable) the tenant will
    pay. Applicants should coordinate with their local Public Housing Authority (PHA) to determine
    allowances for adjusting the maximum allowable HOME rents when the tenant pays some or all
    utilities.


2012 Consolidated Funding Cycle Application                                                Page 196 of 286
    Note: OHCS must approve utility allowances proposed by HOME applicants; therefore,
          documentation from the local PHA is important.

    Rents for group homes and single room occupancy (SRO) units are an exception to the above rent
    limitations. Group home rents should reflect the appropriate Fair Market Rent for the appropriate
    number of bedrooms. Do not count a bedroom for a live-in service provider when calculating the rent.
    For example: a four-bedroom group home where all bedrooms are used for tenants could have a
    maximum rent equal to the FMR for a four-bedroom unit. Or, if a four bedroom group home has a live-
    in service provider occupying a bedroom, then the maximum HOME rent would equal the FMR for a
    three-bedroom unit.

    The maximum HOME rent for an SRO cannot exceed 75 percent of the FMR for a zero-bedroom unit.
    For an SRO unit with both food and sanitary facilities contained within the unit, the Low HOME and
    High HOME rents for zero bedroom units apply.

    The Consolidated Plan priorities may dictate that lower income levels and lower rents are a priority
    need throughout the regions, and may require the applicant to reduce rents and target a lower-income
    population.
    Occupancy of HOME-Assisted Units

    The incomes of the tenants who reside in HOME-assisted units are also limited for the period of
    affordability. At least 20 percent of the HOME-assisted rental units must be occupied by very low-
    income tenants who have annual incomes 50 percent or below median income. These very low-
    income tenants must occupy units with rental charges at or below the Low HOME Rents. At least 90
    percent of all HOME funds must assist tenants who have annual incomes that are 60 percent or
    below area median income, HOME applications should be projects that show the HOME-assisted
    rental units occupied by tenants with the above income restrictions. The balance of HOME funds may
    be used to assist tenants with annual incomes between 60 percent and 80 percent of median income.

    Note: Oregon's Consolidated Plan may dictate that HOME projects serve tenants with lower
    income levels. The rental charges for those persons cannot exceed the High HOME rents. Find the
    income limits for tenants residing in HOME-assisted units in the appendix.
    Fixed or Floating Unit

    HOME recipients may, on a project by project basis, choose to use either a “fixed” or “floating”
    HOME-assisted designation for rental units. A fixed designation means a determination means the
    applicant identifies at the onset which units are “HOME-assisted. For instance, in a 10-unit rental
    project, if the applicant designates units A, B, C, D and E as the HOME-assisted units, those units
    remain the HOME-assisted units throughout the period of affordability. Fixed HOME-assisted units are
    recommended.

    HOME projects with LIHTC funding have the opportunity to choose the income structure for their non-
    HOME units from two different options. Read the LIHTC Programmatic Section for more information.
    Applicants using both HOME and LIHTC must make sure the HOME units use the most restrictive
    incomes and rents. If funded with HOME, recipients will need to track HOME units diligently,
    especially for any units that float.

2012 Consolidated Funding Cycle Application                                            Page 197 of 286
    Tenant Selection Criteria

    HOME recipients must adopt tenant selection policies that:
          are consistent with the purpose of providing housing for low and very low income persons,
          are reasonably related to program eligibility and applicant's ability to perform the obligations of
           the lease,
          provide for selection of tenants from a written waiting list in the chronological order of their
           applications, and
          provides for the prompt written notification to any rejected applicant of the grounds for the
           rejection.
    Determining Income Eligibility of HOME Tenants

    The gross annual income of each household occupant over the age of 18 determines a potential
    household’s eligibility to occupy a HOME-assisted unit.

    The following items are included as income according to HUD guidelines:
          all sources of money an individual or family member receives (wages, welfare payments,
           alimony, social security, pension, etc.),
          any money an individual receives on behalf of their children (child support, social security for
           children, etc.),
          income from assets (interest from a savings account, credit union, or certificate of deposit,
           dividends from stock, etc.),
          earnings from a second job or part time job, and
          any anticipated income (such as a bonus or pay raise expected to be received)

    Assets include all bank accounts, savings bonds, certificates of deposit, stocks, real estate, etc., that
    are owned by an individual or any adult member of the individual's family/household who lives with
    them. Assets also include any business or asset the individual sold in the last two years for less than
    its full value, such as selling their home to their children. Recipients of HOME funds will receive more
    information about calculating income of tenants after the grant award.
    Lease Conditions and Restrictions

    The length of a lease for a HOME-assisted unit must not be less than one year, unless otherwise
    modified by mutual agreement between owner and tenant.

    In addition, the HOME Program also prohibits certain provisions from being included in the lease.
    OHCS will provide more information to the HOME recipient after the grant award.

    At a minimum, termination of tenancy or refusal to renew a lease may only be for serious or repeated
    violation of the terms and conditions of the lease; for violation of applicable federal, state, or local law;
    for completion of the transitional housing tenancy period; or for other good cause. Landlords must
    give the tenant a 30 day notice of termination or refusal to renew. There is no exception to the 30-
    day notice for tenants residing in a HOME assisted unit, as this is a statutory requirement.




2012 Consolidated Funding Cycle Application                                                   Page 198 of 286
    Compliance Responsibilities during Period of Affordability

    HUD will publish the HOME Program Rents on an annual or periodic basis. Depending upon HUD's
    calculations, the HOME Program Rents may increase or decrease. The HOME recipient is
    responsible for recalculating HOME maximum monthly rents and utility allowances on an annual
    basis. OHCS must review and approve all recalculations of rent and utility allowances prior to any
    changes being implemented. Tenants must have at least 30 days written notice of any increase. All
    increases are also subject to other provisions of the lease agreements.

    HOME recipients must annually provide to OHCS documented certification, in a format acceptable to
    OHCS, that the income of each of the tenants residing in a HOME-assisted unit is within the allowable
    HOME income limits. Tenants may remain in their unit should their income increase over 80 percent
    of median income; however, the tenant's rent and utilities must be adjusted to 30 percent of the
    monthly income. During the period of affordability, the HOME recipient must ensure HOME-assisted
    units comply with all local housing code requirements and HUD's published Housing Quality
    Standards (HQS). An individual or agency, familiar with and certified to complete a review of Housing
    Quality Standards must make the inspections. The HOME recipient may need to coordinate with a
    local housing authority or an inspection agency that has the ability and qualifications to complete the
    inspection.

    OHCS will conduct on–site inspections of HOME-assisted rental housing to determine compliance
    with property standards and to verify compliance with other applicable HOME regulations such as
    tenant income certifications and rental charges. OHCS will conduct onsite inspections every three
    years for projects containing one to four units; every two years from projects containing five to twenty-
    five units; and every year for projects with twenty-six or more units.

    OHCS will annually assess a project's affirmative marketing program to determine the success of
    affirmative marketing activities and identify any needed corrective actions.
    Bid Solicitation and Contracting

    The HOME Program does not require formal competitive bids but does require evidence that bids be
    cost reasonable. To assure cost reasonableness OHCS highly encourages HOME recipients to get
    multiple bids for each contract (i.e. at least three bids). HOME recipients must document how they got
    bids and provide copies of the multiple bids. Additionally HOME recipients must do outreach to
    encourage participation by minority and women owned business enterprises. When advertising for
    bids, HOME recipients must include a statement that says "minority and women owned businesses
    are encouraged to apply."

    Find a list of all registered minority and woman owned businesses at:
    http://www.oregon4biz.com/Grow-Your-Business/Business-services/Minority-Owned-Business-
    Certification/ to access the listings. Each recipient should offer these contractors an opportunity
    submit a bid. If recipients do not have access to the internet, they may contact the Multifamily Housing
    Section at OHCS for help in obtaining the list for the area.

    The HOME recipient should also follow through with the outreach efforts identified in their response to
    application question concerning MBE/WBE outreach.


2012 Consolidated Funding Cycle Application                                                Page 199 of 286
    Finally, before a bid is made and a contract awarded, HOME recipients must be aware of and follow
    the Section 3 standards. More information on Section 3 can be found later in this chapter.
    HUD Requirements for the Selection of Contractor

    Once the recipient has selected the general contractor for the project, the recipient must verify that the
    general contractor is eligible (not debarred) to participate in Federal programs. The U.S. General
    Services Administration maintains a list of debarred contractors (Excluded Parties List System) at:
    http://www.epls.gov/. Submit a copy of the search result performed on the general contractor prior to
    signing the actual construction contract.

    Do not contract with a contractor who is ineligible under the provisions of any applicable regulations of
    the US Department of Labor.

    The same rules apply when the HOME recipient acts as the general or prime contractor in the project.
    In this case, each subcontractor must be determined eligible (not debarred) for participation in Federal
    programs.




2012 Consolidated Funding Cycle Application                                                Page 200 of 286
                                     HOME Award and Grant Agreement

    OHCS will not execute a HOME Grant Agreement until the recipient meets all of the reservation
    conditions. It can take a few weeks to as much as six or more months to meet the conditions. Allow
    time especially if there are multiple OHCS funding sources.

    One of the conditions is the completion of a satisfactory environmental review. The environmental
    review process must be completed and a release of funds obtained from HUD prior to taking any
    "choice limiting" actions on the project site. In other words, a HOME recipient cannot undertake any
    action or activity that could limit the project to the specific site or perform any physical development
    activities on the site until a release of funds is obtained from HUD. This includes, but is not limited to,
    property acquisition, demolition, or construction work. It does not matter whether HOME funds or
    another source of funding or the recipients’ own resources pays for these activities. No choice-limiting
    activities can occur until HUD provides the release of funds. Doing so could jeopardize the HOME
    award.

    OHCS will execute a HOME Grant Agreement after all other proposed funding is committed. HOME
    recipients will have 150 days from the date of grant reservation notification to document all other
    sources have been committed and all other conditions of award have been met. HOME recipients
    must request an extension if they cannot meet the conditions of award within the 150-day time period.
    OHCS will grant extensions on a case-by-case basis and be dependent on the progress the HOME
    recipient has taken to meet the conditions of award.

    Once the recipient has commitments from all other funding sources and has met all reservation
    conditions, they should allow four weeks to execute a contract and begin drawing down HOME funds.
    OHCS cannot advance HOME funds; the HOME recipient must incur costs and request
    reimbursement from OHCS.

    Grant funds can only be used for eligible HOME costs incurred after a grant agreement has
    been fully executed (i.e., signed by both the HOME recipient and OHCS). The only exception is
    when OHCS pre-approves the use of HOME funds for some eligible pre-development costs.

    The costs must have been incurred no earlier than 6 months before the CFC application.
    Reimbursement for eligible pre-development costs will occur after execution of the HOME Grant
    Agreement. Contact the RAD if more information about HOME pre-development costs is needed.
    Restrictions of Grant Award

    OHCS may revoke use of the HOME funds and require repayment of all expended HOME funds if
    the recipient changes the project purpose, without prior approval by OHCS, and no longer adheres to
    the original intent as described in the Application.

    HOME recipients cannot “buy out" of the affordability requirements regarding tenant incomes and rent.
    Under all circumstances, the deed restrictions will stay in effect and run with the land for the term of
    affordability.




2012 Consolidated Funding Cycle Application                                                  Page 201 of 286
    If HOME funds are spent on a project that is terminated before completion, whether voluntarily by the
    HOME recipient (or authorized contractor or sub recipient) or otherwise, an amount equal to the
    HOME funds disbursed for the project must be repaid to OHCS’ HOME account.

    OHCS may revoke an existing HOME award, withhold unexpended HOME funds, require repayment
    of expended HOME funds, and bar a recipient from applying for future HOME assistance if the
    recipient breaches any deed restrictions.




2012 Consolidated Funding Cycle Application                                             Page 202 of 286
                          HOME Environmental Review 24 CFR Parts 50 and 58

    Application Requirement: Complete the HOME Environmental Review Checklist and contact the RAD
    for the project area to schedule an on-site visit before February 3, 2012. The on-site review of the
    project must be completed by the RAD prior to submission of the HOME application.

    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 regulations in 24 CFR parts 50 and 58. It is OHCS’ responsibility, in cooperation with project
    applicants, to complete the environmental review record.

    Use the HOME Environmental Review Checklist. No other format will be accepted. OHCS will not
    accept an environmental review checklist that is more than 6 months old.

    The review’s purpose to ensure the project doesn't significantly impact the environment. The applicant
    may need to publish a notice indicating the results of the review and requesting release of funds.
    Choice-Limiting Activities

    Do not perform any action or activity that could limit the project to the specific site or perform any
    physical development activities on the site. The environmental review process and release of funds
    must be obtained from HUD first. This includes, but is not limited to; property acquisition, demolition,
    or construction work. Adjust time frames to allow a minimum of six months for the NEPA review
    process to be completed. Environmental Reviews for any project using HOME funds require complex
    documentation about endangered species, including a determination on the project’s effect on
    endangered or listed fish, wildlife and plants on or near the site. The project’s site plan is reviewed by
    U.S. Fish and Wildlife Services (USFWS) and the National Oceanic and Atmospheric Administration
    (NOAA) biologists prior to their approval of the Environmental Review.

    NOAA’s focus is storm water management. If endangered or listed fish are within a certain distance
    of the site, NOAA will require that the project include a system on-site (bio swale or dry well) to
    capture and process runoff water from the roof, parking lot, or any other impervious surfaces of the
    development. For a new construction project, NOAA will not approve connection of storm water drains
    to a municipal storm drain system under any circumstances. If the project consists of minor or
    moderate rehabilitation within the current footprint of the existing building(s), a new storm water
    system may not be required.

    USFWS is interested in protecting endangered or listed wildlife and plants on or near the site.
    Applicants must provide documentation from professionally qualified persons or firms regarding the
    existence of these endangered or listed subjects. In the past OHCS has accepted determinations from
    local officials regarding endangered species on the Environmental Review Checklist form in the CFC
    Application.

    If the project receives a Reservation of HOME Funding, OHCS will contact the applicant with specific
    information needed or requirements pertinent to the project. If there are environmental impacts, then
    mitigation measures must be completed if HOME funds are awarded. If the impacts are severe,
    OHCS may not award HOME funds.


2012 Consolidated Funding Cycle Application                                                 Page 203 of 286
     Environmental Reviews and the Acquisition of Property

    On October 29, 2003, HUD adopted a new Final Rule was adopted for 24 CFR Part 58 – the HUD
    Environmental Review regulations. In that Final Rule, HUD made clear that they consider the
    purchase of land or land/buildings, as well as construction activities or the letting of contracts, to be
    choice-limiting actions. HUD prohibits choice-limiting actions prior to the completion of a HUD
    Environmental Review. For purposes of this Policy statement, completion of a HUD Environmental
    Review means completion of OHCS' Review, the subsequent publication of findings and the issuance
    of an Authority to Use Grant Funds by HUD. The following scenarios apply to all projects receiving
    reservations of HOME funds from OHCS.
    Purchase of Property after Environmental Review Process Completed

    This is the preferred method of acquisition.

          At time of application for HOME funds, applicant has a written option or earnest money
           agreement with the seller.
          The applicant must demonstrate that the purchase of the property is a voluntary transaction by
           providing notices of disclosure to be signed by the seller. Provide an appraisal or certified
           broker's estimate of fair market value to the seller. The buyer must purchase the property at the
           lesser of the fair market value or the agreed upon sales price. The entire project is ineligible to
           receive HOME funds if these disclosure notices are not properly executed,
          No choice-limiting actions (acquisition, demolition, construction, awarding of contracts) can take
           place until the HUD Environmental Review has been completed.
          The property can be purchased with HOME funds or non-HUD funds after completion of the
           HUD Environmental Review.
          If HOME funds (specifically) are being used for acquisition of the property, then the
           Environmental Review must be completed and the applicant must have completed all
           conditions of award and have executed the HOME Grant Agreement.
    One-for-One Replacement

    HOME funds may not be used to reduce the number of affordable housing units available in a
    community. All affordable occupied or vacant-occupiable dwelling units that are demolished or
    converted to a use other than affordable housing (including conversion to transitional housing) must
    be replaced on a bedroom-by-bedroom basis.

    In addition to assuring replacement housing will be provided, there are specific public disclosure and
    submission requirements that must be met as a condition of the funding reservation prior to demolition
    of the structures and prior to the award of HOME funding.




2012 Consolidated Funding Cycle Application                                                 Page 204 of 286
    If a project receives HOME funding, the recipient must be submit the following as a condition of
    funding:

          A written description of the proposed project;
          The address, number of bedrooms and map location of the housing to be demolished;
          A time schedule for the commencement and completion of the demolition;
          The address, number of bedrooms and map location of the replacement housing to be
           provided. Replacement housing must be located in the same geographic area or neighborhood;
          The source of funding and schedule for the proposed replacement housing;
          The basis for concluding the replacement housing will remain lower-income housing for at least
           10 years from the date of initial occupancy; and
          Information demonstrating the replacement units are sufficient in number and size to house the
           same number of occupants that could have been housed in the converted or demolished unit.

    After OHCS approval of the packet, OHCS will provide recipients instructions to publish a public
    notice in a newspaper of general circulation. This notice will identify the replacement plan for the
    existing structures. This newspaper notice should not be located in the legal notice section, but rather
    as a public notice or a display ad. Recipients must submit a tear sheet of the published notice to
    OHCS immediately upon publication. OHCS will reimburse publication costs.
    Uniform Relocation Act 49 CFR Part 24

    Application Requirement: Complete a tenant survey form for all existing commercial and residential
                              tenants. Develop a relocation plan. All residential and commercial must
                              be issued a General Information Notice and appropriate brochure.
                              Provide proof of receipt of the notice and brochure by the tenant.

    Subsequent Requirement: Provide each new prospective tenant a Perspective Tenant Notice about
                              the rehabilitation project before a lease or rental agreement is signed.
                              Applicant must document that each tenant who moves after the HOME
                              application submission date does so voluntarily. Reflect move-outs,
                              move-ins, and other new information. Immediately after the HOME
                              Grant Agreement is executed, issue a Notice of Displacement or a
                              Notice of Non-Displacement to each tenant who was in occupancy on
                              the date the HOME application was submitted. Recipients must arrange
                              for temporary moves if necessary.

    The HOME Program is subject to the Uniform Relocation and Real Property Acquisition Act (URA).
    Under the URA, all persons (families, individuals, businesses, nonprofit organizations and farms)
    displaced (forced to move) as a direct result of rehabilitation, demolition or acquisition (privately
    undertaken or public) for a HUD-assisted project are entitled to relocation payments. OHCS
    encourages applicants to pursue only those projects that will not permanently displace tenants.

    Consistent with the goals and objectives of the Uniform Relocation Act, the HOME recipient must take
    all reasonable steps to minimize tenant displacement as a result of a project assisted with HOME
    funds. To the extent feasible, residential tenants must be given a reasonable opportunity to lease and



2012 Consolidated Funding Cycle Application                                                Page 205 of 286
    occupy the same or another suitable, decent, safe, sanitary, and affordable dwelling unit in the
    building/complex upon completion of the project.

    Displacement not only includes the physical displacement of persons, it also includes "economic
    displacement" which means that as a direct result of the project, the existing tenant is not able to
    afford a new, higher rent for their current unit. If a HOME applicant intends to rehabilitate an occupied
    property, the issue of economic displacement needs to be of particular concern. Rehabilitation of
    occupied structures must adhere to the following process:

    Before Applying for HOME Funds
              Complete a tenant survey: This survey identifies who currently occupies the property and
               potential URA problems. Survey both residential and commercial tenants. Use the Tenant
               Survey Form provided with the CFC application.
              Develop a relocation plan: Provide a description of how the rehabilitation will impact existing
               tenants.

          i.     Will any tenants be required to move permanently?
         ii.     Will any tenants need to move temporarily during the rehab?
        iii.     How will temporary moves be accomplished?
       iv.       Does overcrowding exist in any of the units?
         v.      Is there a way to phase the rehab to avoid moving tenants?
       vi.       Are there handicapped tenants?
       vii.      Will the rehabilitated units be affordable to the tenants?
              General Information Notice: A general information notice must be sent to all tenants (residential
               and commercial) prior to submission of a HOME application. The notice must be sent certified
               receipt requested or hand-delivered, and a delivery receipt obtained. Copies of sample notices
               can be found later in this Section. The applicable notice is: 1) intended for residential tenants
               who will be permitted to reside in the project after completion; 2) intended for residential tenants
               who will be required to move or who may be displaced because of the project; and 3) sent to
               commercial tenants.

    Submit evidence with the application that the General Information Notice was issued to all tenants.
    Applicants must document tenant-receipt by submitting a copy of a certified receipt, or a tenant-signed
    copy of the letter. Provide a copy of the brochure titled "Relocation Assistance to Persons Displaced
    from Their Homes” to all residential tenants with the General Information Notice. A copy of the
    brochure can be found later in this Section. Contact OHCS for the appropriate brochure if the tenant in
    the property is a business. Provide also the business brochure with the General Information Notice.

    Permission to send notices: If the recipient is not the property owner, the recipient must advise the
    owner of the notice requirement for all tenants. Obtain agreement from the property owner that
    tenants will not be required to move, except for cause. Advise all new tenants of the project in writing;
    and notice document if tenants moved, they did so voluntarily.




2012 Consolidated Funding Cycle Application                                                     Page 206 of 286
    After Submitting the HOME Application
          New Tenants: Each new prospective tenant must receive a notice informing about the
           rehabilitation project before signing a lease or rental agreement. The tenant must sign a form
           acknowledging receipt of this notice. Failure to issue this notice can be very costly. A copy of
           the Notice to Prospective Tenants can be found later in this Section.
          Tenants Who Move: The recipient must document that each tenant who moved after the HOME
           application submission date did so voluntarily. A person may be evicted for cause, if properly
           documented, but not in order to avoid paying relocation assistance.
    Upon Date of Execution of HOME Grant Agreement
          Update Tenant Survey: Update the tenant survey to reflect tenants who have moved; new
           tenants, and other new information.
          Notice of Displacement/Non-Displacement: As soon as possible after the date the HOME grant
           agreement is executed, a notice must be issued to each tenant who was in occupancy on the
           date the HOME application was submitted. The notice must either: Contain a specific offer of a
           suitable, affordable unit in the project, or
          Provide a notice of displacement, if the tenant will be permanently displaced. The notice
           informs the tenant of their eligibility of any relocation benefits.
          Temporary Moves: Arrange for temporary moves if necessary. Document temporary move
           notices and document all temporary moving costs. Tenants must receive reasonable advance
           written notice, notified of the terms and conditions of the move, and reimbursed for all
           reasonable out-of-pocket expenses.
          Construction Completion/Project Closeout: Update tenant survey to account for all tenants.
          Lead-Based Paint Disclosure forms: This disclosure form is in effect if the rental units were
           constructed prior to 1978. Upon execution of the HOME Grant Agreement, the recipient must
           contact each tenant household with the Lead-based Paint Disclosure Form. Find a copy of the
           form later in this part of the application. Recipients may have the agent and lessor (they may be
           the same) fill out, sign and date the disclosure form in advance. A copy of the form is then
           presented to each tenant household for original signature. The owner retains the tenant-signed
           forms and copies of the forms are sent to OHCS. If the project involves the URA process,
           obtain a signed copy from each prospective tenant as they move in. It is advised that the
           HOME recipient make these disclosure forms a part of the lease document for any buildings
           built prior to or in 1978.

    If the proposed HOME project is occupied by residential or commercial tenants and/or involves
    demolition, an applicant should contact the RAD assigned to the project area for further information on
    relocation.
    Acquisition: 49 CFR Part 24

    Application Requirement: Site control documentation. Submit a copy, signed by the seller, of the
    Notice of Disclosure to Seller with Purchase Offer or Notice of Disclosure to Seller after executing the
    Purchase Offer.

    Subsequent to Application: 1) Property fair market value appraisal by a licensed appraiser or a real-
    estate broker. Tax assessments are not allowable for appraisal purposes. 2) Signed Notice of
    Disclosure to Seller of Fair Market Value.


2012 Consolidated Funding Cycle Application                                                Page 207 of 286
    The URA also covers property acquisition. OHCS encourage HOME recipients to use voluntary
    property acquisition. Involuntary acquisition can cause indefinite project delays and potentially
    increase project costs. OHCS shall not use its power of eminent domain to acquire properties under
    the HOME Program, and encourages local governments and housing authorities sponsoring HOME
    projects to acquire property using voluntary acquisition procedures.

    The URA requires certain steps be taken when acquiring property even if HOME funds are not used
    for purchasing the property. URA acquisition rules cover all involuntary purchases by a recipient.
    Local governments and housing authorities are the only entities that would use involuntary acquisition.
    If local governments and housing authorities propose to use their option to acquire under eminent
    domain, they should contact the RAD for the project area for information on the process to be
    undertaken.

    Acquisition by other applicants would be considered voluntary. Because voluntary sales are
    negotiated between the buyer and the seller without the threat of eminent domain or condemnation,
    they are not regulated by URA except for certain notification provisions.

    Inform the seller of the property that:

          The power of eminent domain will not be in effect and, therefore, the buyer will not acquire the
           property if negotiations fail to reach an amicable agreement.
          The seller must justify the purchase price if it is not comparable to the fair market value.
          The buyer must inform the seller in writing of the property’s fair market value as determined by
           an appraisal or other means that OHCS has pre-approved.
          The seller has the opportunity to withdraw from the transaction at the time of notification of the
           fair market value.

    Provide the above information to the seller at the time that an option or purchase agreement is
    presented. If a current option or sales agreement is in existence, also provide the notice to the seller.
    The seller has the opportunity to withdraw from the current agreement after this notification. Submit
    copies of all signed seller notifications to OHCS. Find sample notices later in this part of the
    application.

    HUD prefers the use of options to obtain site control. Options should include an adequate time (one
    year) to complete all HOME requirements before the acquisition is finalized.
    Affirmative Marketing 24 CFR Part 511

    Affirmative marketing is required for HOME projects containing five or more units. Affirmative
    marketing steps consist of actions to provide information and otherwise attract eligible persons to the
    available housing from all racial, ethnic, and gender groups in the housing market area. OHCS will
    annually assess a project's affirmative marketing program to determine the success of affirmative
    marketing efforts and any necessary corrective actions.

    HOME-assisted projects serving special needs populations must meet all HOME Program
    requirements regarding affirmatively marketing the units before renting them. The units must be
    marketed to ALL persons within the special needs group. The units MAY NOT be filled exclusively



2012 Consolidated Funding Cycle Application                                                 Page 208 of 286
    through referrals from a single social service agency. A good faith effort must be made to inform and
    solicit applications from members of the special needs group throughout the market area.

    HOME-assisted projects designated for persons with disabilities cannot be restricted to
    persons with specific types of diagnoses or subclasses of disabilities (such as
    developmentally disabled, chronically mentally ill, or persons with only physical disabilities).
    Resident services may be specific to subclasses of disabilities, but the housing may not.
    HOME-assisted housing for disabled persons must be open to persons with any type of
    disability.

    Affirmative marketing activities, at a minimum, shall include:
          Insuring advertised vacant units include the Equal Housing Opportunity logo or statement.
          Posting the HUD Fair Housing poster in common area(s) of housing assisted with HOME funds.
          Soliciting applications for vacant units from persons in the housing market who are least likely
           to apply for the HOME-assisted housing without the benefit of special outreach efforts.
          Maintaining file records containing all marketing efforts (e.g., newspaper advertisements, file
           memorandums documenting phone inquiries, copies of inquiry letters and related responses,
           etc.) These records shall be made available to OHCS staff for inspection during normal working
           hours.
          Maintaining listings of all tenants residing in each unit at the time of application submittal
           through the end of the HOME compliance period.

    Section 3 of the Housing and Urban Development Act of 1968 (Implemented by 24 CFR Part
    135)

    Purpose: To ensure to the greatest extent employment and other economic opportunities generated
    by HUD financial assistance shall be directed to low and very low income persons, particularly the
    recipients of government housing assistance, and to business concerns that provide economic
    opportunities to low and very low income persons.

    Contracts       Contracts and subcontracts funded in whole or in part by HUD resources where
                    affected: the individual contract or subcontract exceeds $100,000 and the amount of
                    HUD assistance for the project exceeds $200,000. Both conditions must be present.
                    Contracts exclusively for supplies or materials are excluded unless the contract
                    includes installation of the materials

    Projects:      Covers housing rehabilitation (including reduction and abatement of lead-based
                   affected: paint hazards, but excludes routine maintenance, repair and replacement),
                   housing construction (including reconstruction, conversion), and other public
                   construction assisted with housing or community development assistance




2012 Consolidated Funding Cycle Application                                              Page 209 of 286
    Section 3 of the Housing and Urban Development Act of 1968 (Implemented by 24 CFR Part
    135)

    Purpose: To ensure to the greatest extent employment and other economic opportunities generated by
    HUD financial assistance shall be directed to low and very low income persons, particularly the recipients
    of government housing assistance, and to business concerns that provide economic opportunities to low
    and very low income persons.

    Contracts    Contracts and subcontracts funded in whole or in part by HUD resources where affected: the
    :            individual contract or subcontract exceeds $100,000 and the amount of HUD assistance for
                 the project exceeds $200,000. Both conditions must be present. Contracts exclusively for
                 supplies or materials are excluded unless the contract includes installation of the materials.

    Projects:    Covers housing rehabilitation (including reduction and abatement of lead-based affected: paint
                 hazards. Excludes routine maintenance, repair and replacement), housing construction
                 (including reconstruction, conversion), and other public construction assisted with housing or
                 community development assistance.

    Program      Commitment to award the following to Section 3 businesses:
    Goals:           10 percent of the total dollar amount in contracts for building trades work arising in
                      connection with housing rehab, housing construction;
                     3 percent of the total dollar amount of all other Section 3-covered contracts;
                     Notify Section 3 businesses of the contracting opportunities covered by these
                      requirements;
                     Notify all potential contractors of the Section 3-covered contracting requirements, and
                      include the required Section 3 clause in contracts;
                     Assist and “actively” cooperate with HUD in obtaining contractor/subcontractor compliance
                      with Section 3 requirements;
                     Refuse to award contract to any contractor who has been found to have violated the
                      Section 3 regulations;
                     Take appropriate remedial action against contractors who fail to comply with the Section 3
                      requirements (e.g. termination); and
                     Document actions (including results and impediments) taken to comply with Section 3
                      requirements.


    OHCS will provide more details on Section 3 requirements, (including the required Section 3 contract
    clause and record keeping forms) to HOME recipients after grant reservation.




2012 Consolidated Funding Cycle Application                                               Page 210 of 286
    Federal Labor Standards
    40 U.S.C. 276A-5 AND 40 U.S.C. 327-332

    Any contract for the rehabilitation or new construction of affordable housing with 12 or more HOME-
    assisted units must comply with the Davis-Bacon Act (40 U.S.C. 276a-5) and Federal Labor
    Standards. Davis-Bacon requirements apply to projects with eight or more units when the has both
    CDBG funds and HOME funds. These Federal laws require all laborers and mechanics employed in
    the development of affordable housing to receive federal prevailing wages, adjusted for the locality.
    Contracts are also subject to the overtime provisions, as applicable, of the Contract Work Hours and
    Safety Standards Act (40 U.S.C. 327-332).

    OHCS requests the most recent Davis-Bacon Wage Rates for each project. The request can take up
    to 45 days to receive, so recipients should notify the loan officer assigned to the project as soon as
    the number of units and type of project has been determined. Re-verify all wage rates 10 days prior to
    bid opening and notify OHCS of bid opening date in time for OHCS to re-verify the rates.
    Summary: Davis-Bacon Act & Related Acts
          Davis-Bacon Act: All laborers and mechanics on a HOME project shall be paid wages at rates
           not less than prevailing wages at similar construction for the locality as determined by the U.S.
           Secretary of Labor, regardless of contractual relationship. Every employee on the job (including
           company owners) must be paid weekly.
          Contract Work Hours and Safety Standards Act: The wages for every mechanic and laborer on
           the job shall be computed on a standard workweek of 40 hours. Employees will be
           compensated at a rate of not less than one and one half times the basic rate of pay for all hours
           worked in excess of forty hours in any work week (base rate x 1.5 +fringe benefits = overtime
           rate).

    No employee on the job site will be required to work in surroundings, or any other working conditions,
    which are unsanitary, hazardous or dangerous to the health and safety of an employee, as
    determined by the Construction Safety and Health Standards promulgated by the Secretary of the
    United States Department of Labor.

    Liquidated damages for failure to pay overtime will be computed at the rate of $10 for each calendar
    day for each employee who was required or permitted to work in excess of the standard 40 hour work
    week without payment of the overtime wages.

          Copeland Act (Anti-Kickback Law): Whoever by force, intimidation, or threat of procuring
           dismissal from employment, or by any other manner whatsoever, induces any person employed
           in the construction, prosecution, completion or repair of any public building, public work or
           building or work financed in whole or in part by loans or grants from the United States, to give
           up any part of the compensation to which he is entitled under his contract or employment, shall
           be fined not more than $5,000 or imprisoned not more than five years, or both.
          Apprentices: The U.S. Department of Labor recognizes only apprentices registered in a bona
           fide apprenticeship program registered with the U.S. Department of Labor, Manpower


2012 Consolidated Funding Cycle Application                                               Page 211 of 286
           Administration, Bureau of Apprenticeship and Training. The Department of Labor does not
           recognize a helper classification, unless it is on the wage determination, nor do they exempt
           from Davis-Bacon journeyman rates or, apprentices reported in excess of a program
           journeyman/apprentice ratio.
    Uniform Administrative Requirements

    Governmental entities applying for HOME funds must comply with the requirements of Offices of
    Management and Budget (OMB) Circular A-87. Nonprofit organizations must comply with the
    requirements of OMB Circular No. A-122.
    Rehabilitating Properties Containing Asbestos

    Most housing and buildings constructed before 1979 contain some form of asbestos. Undertaking
    rehabilitation actions where asbestos is present is subject to numerous and increasing regulation at all
    levels of government. Careless or illegal handling of asbestos-containing materials can subject rehab
    contractors, workers, and building occupants to health hazards, and can place the contractor,
    manager and owners in a position of serious civil and possibly criminal liability. If the property was
    built prior to 1979, contact the RAD for the area for more information.
    SUMMARY OF LEAD-BASED PAINT REGULATIONS -- REHABILITATION PROJECTS USING
    HOME FUNDING

    HUD has issued a new regulation to protect young children (under the age of six) from lead-based
    paint hazards in housing that is financially assisted by the federal government or that is sold by the
    government. The new regulation addresses the requirements for notification, evaluation and reduction
    of lead-based paint hazards in federally assisted properties. The new regulation appears within title 24
    of the Code of Federal Regulations (24 CFR 35). Find more information on the regulation and other
    educational materials at www.hud.gov/lea.This summary addresses the lead base paint requirements
    for HOME program applicants.
    Notices That Must Be Issued To Occupants of Properties

    New regulations require four types of notices:

          Distribution of a lead hazard information pamphlet to all existing tenants and all new tenants.
           Tenants must sign last page verifying receipt of pamphlet (current EPA/HUD notice still in
           effect).
          Disclosure to occupants of all known lead hazards that exist in project.
          Notice to occupants of result of lead hazard evaluation within 15 days of completed evaluation.
           This notice can be posted in a public place such as lobby or mailroom.
          Notice to occupants of reduction activities undertaken within 15 days of completion. A notice
           posted notice in a public area is allowed.




2012 Consolidated Funding Cycle Application                                               Page 212 of 286
    Regulations and Affected Properties

       The lead-based paint regulations affect acquisition and rehabilitation of housing projects
       constructed prior to 1978. All HOME grant agreements for pre-1978 projects must comply with the
       regulations. All units in the project must comply with these regulations not just the designated
       HOME-assisted units


    URA - SEVEN THINGS TO KNOW NOW

    An introduction to relocation in rental rehabilitation projects
        1. HUD cares about this. The federal government takes the rights of tenants in rental
           rehabilitation properties very seriously.
        2. So should we. Recipients and developers who are working on HUD-funded projects need to
           understand that the Uniform Relocation Act (URA) is basic consumer legislation that
           addresses “fairness” issues.

            Tenants whose living circumstances are changed by a project, either by higher rents or
            involuntary moves, should and will be protected and compensated.

        3. The relocation rules are not all one-sided. The landlord can take actions to control costs
           and prevent displacement.
               These actions include informing tenants about the project, treating them fairly during the
                process, staging work if it is feasible and keeping their rents affordable.
               Tenants must continue to pay rent and comply with the lease during the process.
        4. Mistakes can be costly. Planning for relocation and tenant concerns is critical because
           tenants can take actions that cause financial liability for the sponsor/developer.
               Displaced tenants are entitled to 42 or 60 months of rental assistance, depending on the
                situation. Many claims exceed $10,000 per household.
               Although some claims are unavoidable, there is no reason to incur these costs by failure to
                follow the rules.
        5. Planning is critical. Thoughtfully consider relocation concerns early in the process so
           decisions about rents, construction timing and project feasibility can be considered before they
           are a crisis.
        6. Cooperation is essential. All parties involved in the project must “do the right thing” in to
           make the process work.
        7. There are four basic requirements for tenants in rental rehabilitation projects:
               Give timely information to tenants about the pending application.
               If HOME funding is approved, advise the tenants about any changes that could impact
                them. Without proper notification, they could claim they were displaced even if that was not
                the recipient’s intension.


2012 Consolidated Funding Cycle Application                                                Page 213 of 286
               If displacement occurs, offer a comparable replacement unit that is decent, safe and
                sanitary. Owners must pay Moving expenses.
               Tenants cannot be required to move without a 90 days’ notice.
               Offer tenants who will stay in the property after the work is completed, a suitable unit that is
                decent, safe, and sanitary, and affordable to them.




2012 Consolidated Funding Cycle Application                                                  Page 214 of 286
    HOME Program Rents and Incomes
    The most recent HOME Program Rents and Incomes can be downloaded from the web at:

    http://www.ohcs.oregon.gov/OHCS/HPM_income_limits.shtml.

    Maximum Per Unit Subsidy Limits by Regions

    Map of Oregon HOME Regions




             Regions/County
                                          0-Bdrm         1-Bdrm     2-Bdrm     3-Bdrm           4-Bdrm
             Breakdowns

             Portland Region: Clackamas, Columbia, Multnomah, Washington, Yamhill

                                              $133,799   $153,377   $186,507   $241,278              $264,851

             Eugene Region: Benton, Douglas (E of Coast Range), Jackson, Lane (E of Coast Range),
             Josephine, Linn, Marion, Polk
                                              $132,749   $152,174   $185,044   $239,386              $262,773

             Coos Bay Region: Clatsop ,Coos, Curry, Douglas (W of Coast Range), Lane (W of Coast Range),
             Lincoln, Tillamook
                                              $128,552   $147,363   $179,193   $231,817              $254,464


             Bend Region: Baker, Crook, Deschutes, Grant, Gilliam, Harney, Hood River, Lake, Jefferson,
             Klamath, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, Wasco, Wheeler

                                              $133,799   $153,377   $186,507   $241,278              $264,851


    Effective 01/01/2010 (Published 10/5/10)


2012 Consolidated Funding Cycle Application                                                   Page 215 of 286
                              HOME APPLICATION CHECKLIS T
                                    (For OHCS - funded HOME Applicants only)

    Complete this checklist and return it with the application. If all questions cannot be answered fully,
    the application may not be ready to proceed with this funding round for HOME funds.

                                                                                        Yes       No     N/A
                                                                                        (X)       (X)    (X)

    Have you read and do you fully understand Section 6, which includes the
    Program Description and Requirements applicable to HOME funded projects?

    (If no, stop now and read the entire Section 6 before continuing with this
    Checklist).*


    Does this project consist of transitional housing? (If yes, a plan for moving
    tenants to self-sufficiency is required to be submitted with this application)

    Is the grantee a CHDO?
    (If yes, a Tenant Participation Plan must be included with this application) **

    If a new construction project with 5 or more HOME units, or if a rehabilitation
    project with 15 or more HOME units, do the specs or plans address Section
    504 requirements?

    Has the project architect certified that these units meet Section 504 in writing?

    Are 5% of total units (not just HOME units) accessible?

    Are an additional 2% of total units accessible for sight and hearing impaired?

    Write in the number of accessible units in the project.

                                                                                        Yes       No     N/A
    If the project involves occupied units:                                             (X)       (X)    (X)

    Does either a residential or commercial tenant currently occupy the property?

    Has a tenant survey been completed for each unit or commercial space?

    Are proposed rents greater than 30% of tenant's income?
    (If yes, then tenants are economically displaced)

2012 Consolidated Funding Cycle Application                                                   Page 216 of 286
    Was a General Information Notice sent to each tenant? (Attach signed
    copies)

    Will any tenants - commercial or residential - be temporarily displaced?

    If yes, how many?

    Will any tenants - commercial or residential - be permanently displaced?

    If yes, how many?                                                                                 _______________

    Has the RAD for the project area been contacted for additional information on
    relocation?


    Have funds been budgeted for relocation and are they reflected in the "Uses"
    pro forma page? (If yes, write in the amount)                                                     $_____________

    * If project serves special needs and has funding from Department of Human Services, a letter of confirmation is required.
    See discussion in HOME Section.

    ** If the sponsor is a CHDO, a Tenant Participation Plan must be attached to the HOME Supplemental pages section of the
    application. If this is transitional housing, include a plan for self-sufficiency.


    Historic Significance:                                                                        Yes (X)      No (X)     N/A (X)

    Are there any existing structures on the project site?*

    What is the age of the improvements?                                                          _________________

    Will the structures be "retained" or "demolished?"                                            _________________

       If "retained," do the plans or specs include any work that might interfere
       with the historic integrity of the structure(s)?

    *If any improvements are over 50 years old, the project must be reviewed by the State Historic Preservation Office (SHPO).
    OHCS will contact SHPO for you.




2012 Consolidated Funding Cycle Application                                                                 Page 217 of 286
    If the project includes acquisition of land or improvements:                   Yes (X)     No (X)   N/A (X)

    Was either URA notice 5A or 5B issued to seller?

    Was URA notice 5D completed and signed by the seller?

    If the land purchase has closed, was URA notice 5C issued to the seller?

    Was an appraisal obtained to support notice 5C?

    (Notice 5A or 5B and 5D signed by seller must be submitted with this Application.
    If acquisition has closed, Notice 5C and 5D must be submitted with the Application
    - see back of this section for sample forms).

    If project is located in the Cities of Medford or Ashland, was a letter
    submitted from the City indicating that the project is consistent with their
    Consolidated Plan?

    Is there an application for CHDO set-aside funds for this project?

    Determining the One-for-One Replacement Housing requirement:                   Yes (X)     No (X)   N/A (X)

    Are there affordable housing units being eliminated due to development of
    this project?

    If yes, how many bedrooms are in the housing to be
    eliminated?

    Describe how the eliminated housing will be replaced:




2012 Consolidated Funding Cycle Application                                                  Page 218 of 286
    Calculating the minimum number of HOME assisted units

    (a)    Total Project Cost amount                                              $_____________

              Less Offsite costs                                                  $(_____________)

              Less Community building costs (if detached from housing)            $(_____________)

              Less Commercial space costs                                         $(_____________)

           Total HOME eligible cost amount                                        ►$____________

    (b)    HOME request amount                                                    ►$____________

    (c)    HOME request divided by HOME eligible costs equals percentage of
           units which are HOME-assisted.

           Line (b)    ÷ Line (a) = Percentage

                       ÷                = %                                       ►_____________%

    (d)    Total number of units in project times the percentage of HOME
           Assisted units equals minimum number of HOME-assisted units.

           Total units x Line (c)       = number of HOME units

                        x               =                                         ►______________

    (e)    Verify the HOME Subsidy Limit, based on the number of HOME-assisted units in Line (d),

           equals or exceeds the HOME request. The HOME Subsidy can be found in the HOME rent section.

           (HOME subsidy per unit type times number of HOME-assisted units)

            $_______        (Subsidy limit for ____   bedroom unit) x____       =$___________
            $_______        (Subsidy limit for ____   bedroom unit) x____       =$___________
            $_______        (Subsidy limit for ____   bedroom unit) x____       =$___________
            $_______        (Subsidy limit for ____   bedroom unit) x____       =$___________

                                                                                                ►

    (f)    HOME subsidy total from Section 2(e) equals or exceeds HOME
                                                                                 ________
           request from Line 2(b)? If not, recalculate and increase number of


2012 Consolidated Funding Cycle Application                                             Page 219 of 286
            HOME units in Section 2(e).

      (g)   Minimum number of HOME-assisted units (greater of Lines 2(d) or 2(e) new
            total)                                                                               ___________

      (h)   New % of HOME-assisted units? (if different from 2(C) above)                         __________%

      Davis-Bacon applies if either:                                               Yes (X)     No (X)   N/A

      The minimum number of HOME-assisted units from Line 2(g) is 12 or
      more or

      The project is utilizing CDBG funds and has 8 or more units.

      If yes to either of the above, do the Sources and Uses reflect labor costs
      based on Davis-Bacon rates?

      Calculating HOME match: (a 25% non-federal match is required)

(a)    HOME $ request                                          ►          $_____________

                                                                           _________x.25

(b)    Match Requirement                                                  ►$__________


       Indicate each source and amount of match to the HOME funds

                                                                          $____________

                                                                          $____________

                                                                          $____________

                                                                          $____________

                                                                          $____________

                                                                          $____________

(c)    Total match resources                                   Total      $ ____________
       ►



2012 Consolidated Funding Cycle Application                                                  Page 220 of 286
       Multiply 3(c) by "% of HOME assisted units" from Line 2(c or h).
       If the greater of 2(c or h) exceeds 50%, then 100% of match can
       be credited.                                                     X________%

(d)    Total eligible match                                              ►$___________

(e)    Does line 3(d) equal or exceed line 3(b)? If not, then additional match must be identified or the amount
       of eligible match may be increased by designating additional units to be "HOME-like” units. HOME-like
       units must meet the rent, income, lease and tenant protection requirements.

       Number of designated HOME-like units                         ►    ____________

(f)    Total match resources from 3(c)                             ►     _____________

       Times the percentage of HOME assisted units Line 2(g) and
       HOME-like units Line 3(e) to total units.                         x _______%

                                                                         Total ►$___________

       Total eligible match                                              ►$_______________

      In the table below, provide information on the rents and numbers of HOME-assisted units:
      HOME Assisted Units

      # of Home-       BDR      % of          Combined rent &   Low Home Rent        High Home Rent
      Assisted Units   Size     Median        tenant-paid
                                              utilities




2012 Consolidated Funding Cycle Application                                                Page 221 of 286
                                                                                                    Yes
                                                                                                    (x)      No (x)

   Are the HOME-assisted units dispersed throughout the project?

   Number of separate buildings in the project?

   Number of HOME units in each building?

   Are HOME-assisted units distributed by bedroom size?

   For example, if a project contains 2 and 3 bedroom units and 16% of the 2-bedroom units are
   HOME-assisted, then 16% of the 3-bedroom units should be HOME assisted.


   Are there 5 or more HOME assisted and HOME-like units in the project?

   Do 80% of the HOME-assisted and HOME-like units have rents at or below the
   high HOME limits?

   Do at least 20% of the HOME-assisted and HOME-like units have rents at or
   below the low HOME limits?

                                                                                          Yes
                                                                                          (X)       No (X)   N/A (X)

   Are the HOME funds being used with LIHTC?

   Are the HOME funds being granted?

   Are HOME funds being loaned to the owner entity or partnership?

    If HOME will be loaned to the sponsor or if the sponsor will loan the HOME to the partnership, please
    provide terms of the loan below and be sure that the loan is listed under “Other Debt” on the Housing
    Operating Budget – Expenses pro forma page.

                                                     HOME loan             If loan, Interest
            HOME Grant Request                       Amount                Rate                  Term of Loan

            $____________________                    $___________           ________%            ___________




2012 Consolidated Funding Cycle Application                                                            Page 222 of 286
                                              Lead Paint Questionnaire


                                                                                                   Yes (x)   No (x)


Was the project built prior to 1978?


Has it been tested for presence of lead paint?


If yes, by whom?______________                                     Date of test?_______


If not, what are the plans for doing so and when?




How much was budgeted for lead paint assessment, stabilization and final clearance?
(should be included in Uses of Funding) What method was employed to arrive at the budget figure?




How much has been budgeted for temporary relocation of tenants during lead paint work?
(should be included in Uses of Funding) What method was employed to arrive at the budget figure?




Is a lead paint plan included in your Rehabilitation Assessment?                                   Yes (x)   No (x)




2012 Consolidated Funding Cycle Application                                                  Page 223 of 286
                                                    Form 5A
    Notes to sponsor:
        Re-type this notice on the Grantee or Organization letterhead
        A copy of either Guideform 5A or 5B must be signed by the prospective seller and submitted with this CFC
            Application for any HOME project in which land purchase is involved.
        Use this notice only if a purchase agreement has not yet been signed at time of application.
        If this notice is used, Form 5B can be disregarded

                             Notice of Disclosure to Seller with Purchase Offer

    Dear              :

    This is to inform you that  (agency/purchaser)         would like to purchase the property located at
    (Street Address or other property identification) , if a satisfactory agreement can be reached. We are
    prepared to pay $            for clear title to the property under the conditions described in the
    attached proposed (option/or sales agreement) .

    Because federal funds from the HOME Program may be used in the project, either for acquisition,
    rehabilitation, or new construction, we are required to disclose to you the following information:

    1.       This agency does not have the power of eminent domain. Your property will not be acquired
    through condemnation. If negotiations fail to result in an amicable purchase agreement, your property
    will not be acquired.2. We are also required to inform you, in writing, of the fair market value of the
    property. The estimated fair market value will be determined by a fee appraisal or other approved
    means. You will be informed of the fair market value when it is established. At that time you may
    withdraw from the transaction.

    3.     The HOME program requires that the purchase price be justifiable if not comparable to the fair
    market value of the property.

    4.     If in addition to being the seller of the property, you occupy the property, you should be aware
    that you will not be eligible for relocation assistance under the Uniform Relocation and Real Property
    Acquisition Policies Act of 1970, as amended. This transaction is considered a voluntary arm's length
    transaction.

    If you are willing to sell the property based on the above disclosures, please sign this letter and return
    it to this agency within 10 days. It is also our understanding that no tenants are occupying the
    property. If this is incorrect, please provide us with the names of the tenant-occupants of the property.

    If you have any questions, please contact     (sponsor contact person)       at (phone number).

    Sincerely,

    ________________________________________ ______________
    Name/Title                               Date

    I accept the conditions of this purchase offer disclosure.

    _______________________________________________Seller


2012 Consolidated Funding Cycle Application                                                 Page 224 of 286
                                                      Form 5B
     Notes to sponsor:
           Re-type this notice on the Grantee or Organization letterhead
           A copy of either Guideform 5A or 5B must be submitted with this application for any HOME project in which
            land purchase is involved.
           Use this notice only if a signed purchase agreement exists at time of Application and Form 5A was not given

                                         Notice of Disclosure to Seller
                                   After Purchase Offer Has Been Executed

    Dear              :

    This is a follow up to the purchase agreement that (agency/purchaser) has with you for the purchase
    of the property located at Street Address or other property identification .

    Because federal funds from the HOME Program may be used in this project, either for acquisition,
    rehabilitation, or new construction, we are required to disclose to you the following information.

            1.      This agency does not have the power of eminent domain. Your property will not be
                    acquired through condemnation. If negotiations fail to result in an amicable purchase
                    agreement, your property will not be acquired.

            2.      We have offered and you have accepted a price of $                  for this property. We
                    are also required to inform you, in writing, of the fair market value of the property. The
                    estimated fair market value will be determined by a fee appraisal or other approved
                    means. You will be informed of the fair market value when it is established. At that
                    time you may withdraw from the transaction.

            3.      The HOME program requires that the purchase price be justifiable if not comparable to
                    the fair market value of the property.

            4.      If in addition to being the seller of the property, you occupy the property, you should be
                    aware that you will not be eligible for relocation assistance under the Uniform
                    Relocation and Real Property Acquisition Policies Act of 1970, as amended. This
                    transaction is considered a voluntary arm's length transaction.

    If you are willing to sell the property based on the above disclosures, please sign this letter and return
    it to this agency within 10 days. It is also our understanding that no tenants are occupying the
    property. If this is incorrect, please provide us with the names of the tenant-occupants of the property.

    If you have any questions, please contact (sponsor contact person)           at (phone number).

    Sincerely,

    ____________________________________________                    ______________
    Name/Title                                                      Date

    I accept the conditions of this purchase offer disclosure.

    ____________________________________________ (Seller)


2012 Consolidated Funding Cycle Application                                                     Page 225 of 286
                                                      Form 5C
    Notes to sponsor:
           Re-type this notice on the Grantee or Organization letterhead
           Must be used as a follow-up notice to Form 5A or 5B once fair market value has been determined.
           A copy of Guideform 5C must be submitted with this application for any HOME project in which land purchase
            has occurred. The information necessary to provide this notice to the seller may not be available at time of
            CFC Application. It will be required that the notice be executed either before or at escrow closing.
           Fair market value (with comparatives) shall be determined and reported in writing by a licensed appraiser or
            real estate broker. Include only the summary and comparative portions of the appraisal. You may be asked for
            more information later if necessary.
           Any project which includes HOME funds may not pay more than appraised fair market value for any
            acquisition.

                              Notice of Disclosure to Seller of Fair Market Value

    Dear                  :

    This is a follow up to the purchase agreement that (agency/purchaser) has with you for the purchase
    of the property located at (street address or other property identification).

    This is to inform you that the fair market value for the property has been established at $                 .
    This value was determined by a (fee appraisal or broker estimation).

    As previously notified, we are prepared to purchase the property for $                     , which is the
    lesser of the following:

                    $                  , the agreed upon purchase price; or,

                    $                  , the fair market value.

    If you are still willing to sell the property based on the above disclosures, please sign this letter and
    return it to this agency within 10 days. If you have any questions, please contact (name) at (phone
    number).

    Sincerely,

    _______________________________________________ ________________
    Name/Title                                     Date



    I accept the conditions of this fair market value disclosure.

    _______________________________________________ ________________
    Seller                                              Date




2012 Consolidated Funding Cycle Application                                                    Page 226 of 286
                                                       Form 5D

    Notice – Seller’s Occupancy Certification:
        To be completed by and signed by the Seller of the Property at the time an option or earnest money
           agreement is executed.
        Type the certification below on Grantee or Organization letterhead.
        Submit a completed and signed copy with the application for HOME funds.


    I / We the Seller(s) of the property located at:

     Certify that:

           No tenant(s) has/have occupied the property for a period of one year prior to the date of this
    purchase or option to purchase contract.

             This property was occupied by tenant(s) within the past year prior to the date of this purchase
    or option to purchase contract, but the tenant(s) was/were not asked to move in order for me/us, as
    seller(s), to participate in this acquisition transaction. The tenant(s) moved for one of the following
    reasons(s):

            Tenant One:            Evicted for Cause,              Voluntarily Moved,            Other*

            Tenant Two:            Evicted for Cause,              Voluntarily Moved,            Other*

            Tenant Three:                     Evicted for Cause,           Voluntarily Moved,
            Other*

            Attach additional information as necessary.

            *Explain Other Move(s):



    The property is tenant occupied, and I / We agree to allow egress / ingress to the site so that the
    required notices can be delivered to each resident, and that each resident can be surveyed to
    determine their eligibility or replacement housing needs and related moving costs.

    NOTE: If the property is tenant occupied, and the buyer is not allowed access to obtain the
    required information and serve the required tenant notices, the offer may be withdrawn once
    the complexity and cost of tenant relocation has been determined.



    Signature of Seller(s)



                                                                   Date:



                                                                   Date:

2012 Consolidated Funding Cycle Application                                                  Page 227 of 286
                                   PART 13- HELP PROGRAM
    DESCRIPTION AND REQUIREMENTS

    The Financing Adjustment Factor Savings Fund (HELP Program) was established by OHCS 1991 to
    provide funding for decent, safe and sanitary housing affordable to very low-income families or
    persons.
    Eligible Sponsors

    HELP fund recipients are limited to nonprofit or local governmental entities, including housing
    authorities.
    Eligible Projects

    OHCS has, at its discretion, set aside HELP funds for three distinct populations: Homeless, including
    victims of domestic violence (Housing PLUS definition only), and group homes for persons with
    developmental disabilities or chronic mental illness.
    The homeless definition for the HELP Program is:

           Persons who have chronic health conditions that are at least episodically disabling, such as
            mental illness, substance abuse, and HIV/AIDS, or have other substantial barriers to housing
            stability (e.g. trauma, or history of placement in institutions); and
           Who have been homeless for long periods of time (one year or more) or have experienced
            repeated stays in the streets, emergency shelters, or other temporary settings, often cycling
            between homelessness and institutional systems of care such as hospitals, jails, prisons,
            foster care, or other emergency systems, or
           Who have been victims of domestic violence, face survival and safety risks, come from a
            shelter, transitional housing, or another temporary housing situation, and have substantial
            barriers to obtain and retain housing.
    Eligible Uses of Funds

    HELP funds may be used to pay development costs that would be chargeable for federal income tax
    purposes to the project's capital account.
    Terms

    HELP funds will be awarded in the form of a grant.
    Program Requirements

    Program guidelines restrict use of the funds to person(s) or families of very low income, defined by
    HUD as those with an income at or below 50 percent of the area median income. Tenants unable to
    provide evidence of this income requirement are ineligible to occupy housing benefiting from HELP
    funds.

    NOTE: If the household income was certified to be at 50% or below the area median income at the
         time of initial residency, tenants will be allowed to remain in the unit until such time as they


2012 Consolidated Funding Cycle Application                                               Page 228 of 286
            reach 80% of median area income. In such instances, tenants will be required to vacate the
            premises within 90 days or at the expiration of their lease, whichever is longer.

    The maximum grant per project is $200,000.

    For projects involving a mix of market rate and very low-income units, the percentage of grant funds
    cannot exceed the percentage of very low-income units within the project.

    (Example: If 20% of the units within a project will be affordable to persons with income at 50% of
    median, then no more than 20% of the total project cost may be requested from the HELP program).

    Recipients of funds may draw up to 50 percent of a HELP grant/loan award prior to completion of all
    Conditions of Reservation; subject to a written pre-development plan approval by the loan officer.

    A "Financing Adjustment Factor Savings Agreement" (FAF) must be executed and held in escrow
    before disbursal of funds. The (FAF) Agreement imposes certain restrictions and requirements.

    Recipients must expend the HELP funds within six months of disbursement.

    OHCS’ Asset and Property Management Division must approve the "Management Plan" and
    "Management Agent's Qualifications" to ensure the owner/agent has reasonable experience that
    would lend itself to managing the project, and that systems have been set up or will be set up to fulfill
    the HELP program requirements.

    Recipients of HELP funds must certify tenant incomes upon initial tenant application, and annually
    thereafter for ten years. Submit certifications to OHCS on each anniversary date of the FAF
    Agreement.
    Federal Status of HELP Funds

    IRS revenue procedure 2005-37 rules that HELP funds constitute federal funds for purposes of the
    LIHTC program.

    Applicants requesting both HELP and LIHTC resources must treat the HELP dollars as federal funds
    for LIHTC purposes. As far as the impact of HELP funds on the HOME program, the HELP funds are
    considered ineligible as HOME match.

    Applicants should get legal advice to ensure their compliance with IRS rules.




2012 Consolidated Funding Cycle Application                                                 Page 229 of 286
                    PART 14 – HOUSING TRUST FUND P ROGRAM

    Introduction

    The Oregon Legislature established the Housing Development Grant Program ("Trust Fund") or
    (“HDGP”) in 1991 to expand the State's supply of housing for low and very low-income families and
    individuals. HDGP provides grants and loans to construct new housing, or to acquire and/or
    rehabilitate existing structures. Historically, the program has been funded with biennial allocations
    from the legislature. Current funding comes from the Public Purpose Charge collected by investor-
    owned energy providers across the state and from interest earnings on the Trust Fund corpus.

    HDGP has three primary objectives:

        1. The creation and preservation for the longest use of safe and decent affordable housing for
           low and very low income households, including special needs housing, by providing funds to
           close a financial gap or pay pre-development costs.
        2. The pairing of ancillary social services (e.g., childcare, counseling, health care, etc.) with
           housing.
        3. Leverage of HDGP dollars through the use of other public and private resources.
    Application Requirements

    OHCS will review HDGP applications on the following requirements:

           The quality of project-related resident opportunities and services, including, but not limited to,
            day care, drug/alcohol counseling, job counseling, skills training, family self-sufficiency
            training, or other services appropriate to residents.
           Projects that demonstrate a strong probability of serving the original target group or income
            level for the longest period with a minimum affordability period of 60 years.
    Eligible Applicants

    Eligible applicants include for-profit businesses, local government entities, housing authorities,
    nonprofit agencies, nonprofit corporations, and private individuals or corporations.
    Eligible Beneficiaries

    HDGP is targeted for households, including single individuals, who are low or very low income.

    The applicant must target at least 75 percent of the HDGP funding to very low-income households.
    The applicant may target the HDGP funds for households above 50 percent of median income, but at
    or below 80 percent of area median income. Very low income households are those with incomes at
    or below 50 percent of area median income and low income households are those with incomes more
    than 50 percent and not more than 80 percent of area median income as determined by the State
    Housing Council based on information from the U.S. Department of Housing and Urban Development.




2012 Consolidated Funding Cycle Application                                                  Page 230 of 286
    Eligible Activities

    Eligible activities under the HDGP Programs include, but are not limited to, the following:

           Construction of new housing, acquiring and/or rehabilitating existing structures serving low and
            very low-incomes.
           Reimbursement of engineering or feasibility studies, appraisals, architectural plans, site
            acquisition, or other necessary professional services.

    Recipients of funds may draw up to 50 percent of an HDGP grant/loan award prior to completion of all
    Conditions of Reservation, subject to a written pre-development plan approval by the loan officer. A
    recorded Grant Agreement, Declaration of Restrictive Covenants, must be in force, or the unrecorded
    document must be signed and held in escrow before funds can be released.
    Other Key Application Requirements

    The maximum award per application of HDGP will not exceed $500,000 on non-LIHTC projects,
    Projects with LIHTC maximum award is $200,000.

    Awards are made in the form of grants or loans.

    If the project for which a grant or loan was awarded changes purpose, without prior written approval of
    OHCS or no longer adheres to the original intent as described in the Application, the award may be
    rescinded and/or repaid to OHCS.

    Projects must have at a minimum, a proportionate number of units by project cost or cost per unit,
    designated as HDGP units. (Example, a $3,136,000 project with 40 units requesting $100,000 in
    resources should have a minimum of two assisted units. $100,000 ÷ $3,136,000 = .0319 x 40 units =
    1.27 units, rounded up for a minimum of two units; and/or a project with a cost per unit of $80,000
    requesting $100,000 in resources would need a minimum of two units designated as HDGP.
    $100,000 - $80,000 = $20,000 remaining to pay for cost of a second unit).

    For projects involving a mix of market rents and affordable units, the percentage of HDGP funds
    cannot exceed the percentage of low and very- low income units within the project. (Example: If 20
    percent of the units within a project will be affordable to persons with income at or below 80 percent of
    median, then no more than 20 percent of the total project cost may be requested from HDGP).

    HDGP funds can only be used for project related costs incurred no more than six months prior to the
    original application. Only project-related costs will be considered. Land holding costs (i.e.: annual
    property taxes, mowing and other maintenance) are not eligible.
    HDGP Permanent Loans

    OHCS may make HDGP funding available as a loan at the applicant’s request depending on the
    source of funds available for use. Applicants can request funds as a loan and OHCS will make every
    effort to fulfill that request. The following loan terms apply:

    Maximum loan term is 30 years.



2012 Consolidated Funding Cycle Application                                                Page 231 of 286
    Resources awarded as a permanent loan will require the execution of a Loan Agreement and
    Promissory Note and the execution and recording of a Trust Deed and Regulatory Agreement and
    Declaration of Restrictive Covenants.

    Loans must be included as debt on the Expense Statement of the operating budget.
    Capital loans (“HDGP”)

    HDGP loans will be offered with either interest only or interest and principal annual payments,
    depending upon the debt coverage ratio showing on the CFC Application pro-forma expense budget
    in place at the time the HDGP loan becomes effective. Annual payments include principal and
    interest for projects with a total debt coverage ratio of 1.5 or greater (after OAHTC is applied) on the
    permanent loan and Trust Fund loan of 1.15 or greater over the term of the loan(s). Projects with total
    debt coverage of less than 1.15 will pay annual interest payments only. OHCS bills the applicant
    according to the terms of the Promissory Note. Payment will be due 120 days after the calendar year
    end. OHCS will accept prepayments with no penalty. Any unpaid principal remaining at the end of the
    loan period will be immediately due.

    OHCS may set interest rates on loans made with account funds and account investment revenue.




2012 Consolidated Funding Cycle Application                                               Page 232 of 286
         PART 15 - LOW-INCOME HOUSING TAX C REDIT PROGRAM
                              (LIHTC)
    LIHTC FORMS SUBMITTED WITH APP.: PAGES 261-269 (Not all may apply to this project)


    Introduction

    The Low Income Housing Tax Credit (LIHTC) was enacted by Congress to encourage new
    construction and rehabilitation of rental housing for low-income households. In establishing the tax
    credit incentive, Congress recognized developers might not receive enough rental income from a low-
    income housing development to: 1) cover the costs of developing and operating the project, and 2)
    provide a return to investors sufficient to attract the equity investment needed for development. To
    spur investment, Congress authorized the states, within specified limits, to allocate tax credits to
    qualifying housing projects. Owners (equity investors) may share the credits, as income and losses
    are shared among business partners for tax purposes. Generally, syndicators recruit the investors,
    and limited partnership agreements control ownership rights.

    The amount of LIHTC awarded to a building is based upon the cost of the building and the portion of
    the project that low-income households will occupy. The cost of acquiring, rehabilitating, and
    constructing a building constitutes the building’s eligible basis. The portion of the eligible basis
    attributable to low income units is the building’s qualified basis. In general, the qualified basis
    excludes the cost of land, obtaining permanent financing, rent reserves, syndication and marketing.
    The applicable percentage of the qualified basis may be claimed annually for 10 years as the low
    income housing tax credit.

    In Oregon OHCS and the IRS jointly administer the LIHTC program. The IRS provides OHCS credits
    and OHCS allocates the credits to eligible affordable housing projects. These credits are considered
    to be under the State’s per capita credit authority and are limited and scarce.
    Amendments to LIHTC Program, Changes from HERA and ARRA

    2008 and 2009 congressional action through Housing and Economic Recovery Act of 2008 (HERA)
    and the American Recovery and Reinvestment Act of 2009 (ARRA) changed the LIHTC industry and
    will continue to have an impact in 2012. Below is a brief summary of the most critical changes:

    Rent and income limits are not yet available for 2012, and will likely be published by HUD early this
    spring. For the time being, use the 2011 numbers, which reflect section 3009 of HERA. In 2009, HUD
    provided two tables for income limits separating the LIHTC program income limits from Section 8
    income limits. LIHTC income limits are now the Multifamily Tax Subsidy Program (MTSP) limits. Some
    projects will be eligible to use the greater of the non-metro national median income and the rural
    median income for that region. Find more information on the income and rent limits by county at:
    http://www.ohcs.oregon.gov/OHCS/HPM_income_limits.shtml. If the proposed project is considered
    rural by the USDA or qualifies for the non-metro national median income can be determined at:
    http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction+sfp&NavKey=property@12.




2012 Consolidated Funding Cycle Application                                             Page 233 of 286
    On April 17, 2009, the Internal Revenue Service determined in private letter ruling (PLR) 200916007
    that costs of constructing streets and related infrastructure improvements that will be dedicated to
    public use in a low-income housing tax credit project are capitalize-able into the basis of project's
    residential rental buildings. While this PLR is specific and applicable only to the project to which it was
    issued, it does shed light on the IRS’ interpretation of this type of issue.

    Unless federal legislation extends the use of the 9 percent minimum tax credit percentage, projects
    with a 2012 credit award should not use the 9 percent fixed percentage unless there is absolute
    certainty that the project will be placed in service prior to December 31, 2013. The 30percent credit
    applicable percentage continues to float monthly. OHCS will not fill financing gaps resulting from the
    inability to utilize the 9 percent rate floor.

    If a project is not in a HUD DDA/QCT, the 9 percent credit portion of a project may be eligible for the
    state’s basis boost up to 30 percent, but no greater than 130 percent. The acquisition credit basis is
    not eligible for this boost. For additional information on the use of this boost refer to the OHCS Basis
    Boost Policy, on page 10 of the current 2012 Qualified Allocation Plan (QAP, the 2012 QAP).

    The definition of a federally subsidized building for the purposes of determining eligible basis has
    been limited to any obligation on which the interest is exempt from tax under section 103. Thus,
    additional buildings are eligible for the 9 percent credit.

    Substantial rehabilitation expenditure requirements must equal the greater of an amount that is 1) at
    least 20 percent of the adjusted basis of the building being rehabbed; or 2) at least $6,000 per low
    income unit in the building being rehabbed. The $6,000 minimum is indexed to inflation.

    Community service facilities can be used to generate credit if the facility is designed to serve primarily
    low income individuals whose income is 60 percent or less of area median income. The size of the
    community service facility may not exceed the sum of 1) 25 percent of the eligible basis of up to
    $15,000,000 [of the qualified tax credit project of which it is a part]; and 2) 10 percent of any excess
    over $15,000,000 of the eligible basis [of the qualified tax credit project of which it is a part].

    All projects that receive a reservation of Low Income Housing Tax Credits will have twelve months
    from the date of their carryover allocation to meet the Ten Percent of Costs Incurred Test (10percent
    test). The 10 percent test requires third party certification of incurred project costs to date be
    presented to OHCS for review and acceptance.

    The basis reduction rule has been clarified to apply to federally-funded grants received before the
    compliance period. No basis reduction is required for federally-funded grants for the property to be
    rented to low income tenants received during the compliance period if those grants do not otherwise
    increase the taxpayer’s eligible basis in the building.

    The 10 percent attribution rule has been repealed. This was used to determine whether parties are
    related for purposes of determining whether an existing building qualified for the low income housing
    credit. Under HERA, two persons are related for this purpose if they bear a relationship to each other
    specified in sections 267(b) or 707(b)(1) (related to the disallowance of losses).




2012 Consolidated Funding Cycle Application                                                  Page 234 of 286
    The 10 year rule has been amended with a new exception which waives the 10-year rule in the case
    of any Federally- or State-assisted building. The definition of Federally-assisted building is expanded
    to include any building which is substantially assisted, financed, or operated under section 8 of the
    Housing Act of 1937 along with various other sections of the National Housing Act, section 515 of the
    Housing Act of 1949 or any housing program administered by HUD or Rural Housing Service of the
    Department of Agriculture (RD). The IRS has not issued further guidance on this waiver.

    OHCS must provide a preference for projects that: 1) include energy efficiency features in the project
    and 2) consider the historic nature of the project (e.g. encouraging rehabilitation of certified historic
    structures.)

    The area median gross income applied for residential rental property located in certain rural areas is
    modified in the case of projects subject to the low income housing tax credit volume limits. The
    income targeting rules of the housing credit are applied by reference to the greater of the otherwise
    applicable area median gross income standard or the national non metropolitan median gross income

    OHCS must provide a preference for projects located in HUD-determined Qualified Census Tracts
    (QCT), the development of which contributes to a concerted community development plan. A
    130percent bonus is available to projects located in QCTs, which are defined as census tracts in
    which 50percent or more of the households are at or below 60percent of area median income, as well
    as census tracts with a poverty rate of 25percent or higher. To determine if the project is located in a
    QCT, access the following web site: http://qct.huduser.org/QCTGIS/USMainLand/Map.aspx.

    For details on the state’s use of the basis boost, as per HERA, see the 2012 QAP.

    OHCS, at its discretion, can award credits in a manner not in accordance with the requirements of the
    Qualified Allocation Plan. Should an award be made that is not in accordance with the requirements
    of the Qualified Allocation Plan, OHCS must document this allocation in writing to the general public.

    IRC Section 42 requires a comprehensive market analysis of the housing needs of the low-income
    individuals in the area served by each housing credit project. The analysis must be conducted at the
    developer's expense and submitted with the application. A disinterested party approved by the
    allocating agency must conduct the analysis. (See Market and Rent Assessment of the application for
    more information.)

    If any funding sources are being loaned by the general partner or managing member to the limited
    partnership or limited manager, OHCS may require a legal opinion verifying to OHCS’ satisfaction that
    such loans have specified terms of repayment, consistent with the expectation that the project can
    meet such cash flow needs. Further analysis and detail of the repayment assumptions may be
    required by OHCS at any time. This letter will be required at Final Application if budget materials
    indicate project cash flows cannot pay off the loan in the identified loan term.

    Memorandum of Understanding/IRS Form 8821 Policy

    OHCS accepts and verifies LIHTC applications from developers and monitors health and safety
    violations and tenant eligibility. The IRS administers the program nationwide. The IRS is the only
    agency that can revoke or adjust the amount of LIHTC allocated to a given project. The IRS through


2012 Consolidated Funding Cycle Application                                                 Page 235 of 286
    the audit process will disallow credits that are not properly used to build affordable housing. Since
    disallowed credits cannot be re-used, OHCS has an interest in ensuring the proper usage of credits to
    increase the supply of affordable housing. Although the IRS and OHCS share responsibility for the
    Credit program in Oregon, tax payer information cannot be disclosed to OHCS unless authorized by
    the taxpayer on IRS Form 8821, Tax Information Authorization (Rev. 9-98).

    All LIHTC applicants must include a signed IRS Form 8821 in the application to OHCS. Find the form
    later in this part of the application. The Form 8821 names the housing credit agency (OHCS) as the
    appointee to receive tax information. The IRS will provide OHCS with federal tax information relating
    to LIHTC, including audit findings and assessments, and enabling OHCS to make a more informed
    LIHTC allocation.
    The Process

    OHCS will require developers to complete Form 8821 as a condition of application for an allocation of
    LIHTC. The developer will name OHCS as the appointee to receive tax information. A completed
    Form 8821 will be forwarded to the IRS by OHCS within 60 days of receipt.

    Pursuant to Internal Revenue Code Section 6103(c) after receiving Form 8821, the IRS provides
    OHCS with any federal tax information pertaining to the LIHTC, including findings and assessments,
    for the tax periods specified on the form. This includes a review of the Business Master File, revenue
    agent reports, and other sources of account data.

    OHCS will ensure information provided by the IRS under the agreement is used solely for the purpose
    of awarding LIHTC and the information will be safeguarded by OHCS to prevent improper disclosure
    according to state and federal statutes.
    Overview of the Credit Allocation and Review Process

       Under Section 42 of the Internal Revenue Code, OHCS is responsible for determining which
        applicants will receive the tax credit how much. In making these determinations, OHCS must
        comply with federal requirements and meet the following program goals
       Encourage equitable allocation of credits across the state
       Target the areas with the greatest low income housing needs and serves very low-income tenants
        for more than 30 years
       Support housing in Qualified Census Tracts and/or Difficult to Develop Areas as published by
        HUD or in other areas where community revitalization is a local priority
       Provide housing for special needs populations
       Selects tenants from a Public Housing wait list
       Support housing for families with children
       Is intended for tenant ownership
       Includes energy efficient features
       Rehabilitates and helps preserve a certified historic structure
       Encourages resident services and community involvement
       Provides an allocation of tax credits in an amount sufficient to make the project financially feasible
        and viable as a low-income housing project throughout the compliance period

2012 Consolidated Funding Cycle Application                                                 Page 236 of 286
        In addition, OHCS may supplement these general goals with more specific local goals in order to
         meet local low-income housing needs. This may include but not be limited to:
        Mixed- income projects where appropriate
        Mixed- use projects where appropriate
        Acquisition and rehabilitation of expiring use projects, especially those that include federal funding
         programs such as HOPE VI, Section 202, Section 811, RD or HUD project-based rental subsidy
        Housing near employment centers
        Approaches in design, planning, building and financing of low income housing that maintain
         quality and long-term sustainability, durability and ease of maintenance of affordable units
        Context of affordable housing in the community including but not limited to access to services and
         amenities appropriate to the tenant population, and to transportation
        Housing needs characteristics, market considerations and affordability demonstrated by rents at
         least 10 percent below market rate (as defined by a third party market analysis)
        Achievement of goals articulated in the state or local consolidated plan
        Achievement of community goals for livability
        Other goals as determined locally or by OHCS

    OHCS awards tax credits on a per building basis. For a particular building to qualify for tax credits, it
    must be a part of a low-income housing "project".

    To qualify for consideration for credits a project must:

         Be residential rental property
         Make an election to restrict both rent and income as follows:
          i.  Rent: restrict rents (including utility charges) for tenants in low-income units to 30 percent of
              either the 50 percent area median income as adjusted for family size or the 60 percent of
              area median income as adjusted for family size. Rents may be further limited based upon the
              limitation selected and other representations made in the application to OHCS.
         ii.  Income: maintain at least 20 percent of the available units for households earning up to 50
              percent of area median income as adjusted for family size, or maintain at least 40 percent of
              the available units for households earning up to 60 percent of area median income as
              adjusted for family size.
        iii.  Maintain habitability standards: if the project involves rehabilitation, there must be
              expenditures of at least $6,000 per unit or 20 percent of the unadjusted basis of the building,
              whichever is greater
        iv.   Operate under the program’s rent and income restrictions for a minimum 30-year extended
              use period.

    OHCS created the application process in compliance with the requirements of Section 42 of the
    Internal Revenue Code to select proposals for tax credit awards. This document describes the
    application process later in this document. OHCS may not award more credits to a project than are
    required to make the project financially feasible. In evaluating projects, OHCS must consider any
    expected proceeds or receipts generated by tax benefits, as well as the reasonableness of

2012 Consolidated Funding Cycle Application                                                  Page 237 of 286
    development hard and soft costs. In general, the IRS expects OHCS to compare the proposed
    project’s development costs with the non-tax credit financing, both private and public. The difference
    between the costs and the sources to finance the costs is the financing gap. Tax credits may be used,
    up to a ceiling, to attract the equity investment to fill this gap.

    Once OHCS has awarded an owner with credits, the owner typically sells the credits to private
    investors. The private investors use the credits to offset taxes otherwise owed to the federal
    government. The money private investors pay for the credits is paid into the project as equity
    financing. This equity financing is generally used to fill the gap between the development cost of a
    project and the non-tax credit financing sources available, such as mortgages, that could be expected
    to be repaid from rental income.

    Owners must place the project in service no later than December 31 of the allocation year (for
    competitive projects); unless a Carryover allocation is obtained. If a Carryover allocation is obtained,
    the project must be placed in service no later than December 31 of the second year following the
    original allocation. Investors can claim the credits for each year of a ten year period (called the “credit
    period”) as long as the project is operating in accordance with the representations made to OHCS in
    its application for credits and in accordance with IRS regulations. Individual and corporate investors
    send the IRS Form 8609 (initially obtained from OHCS in the first year of placed in service), “Low
    Income Housing Credit Allocation Certification” to the Internal Revenue Service, PO Box 331 Attn:
    LIHC Unit DP 607, South Philadelphia Campus, Bensalem, PA 19020 and a copy of the completed
    form to OHCS, APM Department, 725 Summer Street NE, Suite B, Salem OR 97301-1266 when they
    claim the credits.

    Once a project is placed in service, OHCS monitors the project for compliance with state and federal
    requirements concerning household income, rents, project habitability, resident services and other
    requirements represented in the application, Declaration of Land Use Restrictive Covenants and other
    agreements. If OHCS finds noncompliance, OHCS must report the event to the IRS and if the non-
    compliance is not corrected, the IRS may recapture or deny credit for previously used or issued tax
    credits. OHCS follows the IRS regulations for monitoring requirements. The OHCS LIHTC
    Compliance Manual describes these regulations (available from OHCS upon request).
    Application for LIHTC Funding

    To apply for tax credits, an applicant must submit a detailed proposal to OHCS in the format
    prescribed and include the following requirements:

    OHCS will evaluate all projects, including those competing for set-asides on the criteria described in
    the application package and the Qualified Allocation Plan. The evaluation process is based upon
    criteria established in response to the local or State's low-income housing priorities as well as those
    designated by the Consolidated Plan, and those categories required under amended IRC § 42.

    OHCS reserves the right to reject any application for tax credits if, in OHCS’ judgment if:

           the proposed project is not consistent with the goals of providing decent, safe and sanitary
            housing for low-income persons as set forth in its enabling legislation,



2012 Consolidated Funding Cycle Application                                                  Page 238 of 286
           does not meet the requirements of IRC Section 42, as amended and all regulations
            promulgated there under, or
           is not consistent with OHCS’s mission and value statements.

    OHCS may impose additional conditions on any LIHTC applicant.
    Rehabilitation Requirements / Replacement Reserve

    OHCS requires all LIHTC applicants for acquisition and rehabilitation credits to complete a thorough
    rehabilitation assessment satisfactory to OHCS, unless an exception is provided and granted by
    OHCS.

    OHCS may perform inspections prior to, during and following a funding award by OHCS or an OHCS-
    approved third-party representative. OHCS, based on such inspections or otherwise, may prevent an
    applicant from advancing their application, terminate or revoke a reservation or allocation, or exercise
    other remedies, including, but not limited to, requiring changes to the application or project scope of
    work or budget.

    OHCS may verify if work has been performed to its satisfaction. OHCS may require remediation of
    unsatisfactory work or conditions. Find the OHCS Architectural Standards and Building Enclosure
    Rehabilitation Guide on the OHCS website.
    LIHTC Market Study Requirement Pertaining to Certified Appraiser

    Completing a rental analysis and estimating unit rents for a specific project is considered an appraisal
    under the Uniform Standards of Professional Appraisal Practice (USPAP) and ORS 674. Therefore
    the rental analysis sections (both market and affordable) of the third party market analysis must be
    completed by a State Certified General Appraiser. Applicants should contact the Oregon Appraiser
    Certification and Licensure Board for further information regarding certification.
    Sponsor Capacity

    Applicants must be able to demonstrate an understanding of the LIHTC program, and proficiency with
    housing-related development. Applicants with limited multi-family experience will not be excluded
    from the application process if they engage the services of qualified development team members.
    OHCS may give additional consideration to applicants who have consistently completed prior LIHTC
    projects in accordance with representations made in the applications, and who are maintaining the
    project in compliance with tax credit program policies and procedures and federal regulations.

    OHCS may reject applications from previous LIHTC recipients who failed to demonstrate proficiency
    with the LIHTC Program or other government-funded housing programs. OHCS may also reject or
    discount an application from previous recipients who have failed to complete their projects in
    accordance with their applications and/or certified plans presented to OHCS or other public or private
    allocating agencies, or who have failed to effectively utilize previously allocated tax credits, or who
    have been found to be in chronic non-compliance with program rules as evidenced by OHCS or other
    public or private allocating agencies’ project monitoring.




2012 Consolidated Funding Cycle Application                                               Page 239 of 286
    The Sale of Tax Credits

    Owners of a tax credit project may syndicate the tax credits to limited partner investors who will
    contribute equity for the project in return for the use of the tax credit and other tax benefits generated
    by the project. Usually, the LIHTC recipient retains ownership in the project and acts as the general
    partner of the limited partnership.

    OHCS will use: a) current market guidelines, b) previous syndication data available, c) proposed
    syndicator data, and d) syndication or partnership agreement, if available, to estimate the proceeds
    anticipated from the sale of tax credits.
    Financial Feasibility

    Tax credits for a project may not exceed the amount necessary for the financial feasibility of the
    project. Financial feasibility analysis will include a comparison with current market costs and an
    assessment of the reasonableness of projected cost components and operating expenses. OHCS's
    project evaluation will use common lending standards and underwriting criteria for evaluating multi-
    family projects.

    These include, but are not limited to:

       Primary debt service ratio no lower than 1.15 and no higher than 1.20 (unless accompanied by an
        explanation from the lender)
       Maximization of loan to value ratios and documentation thereof from the project lender
       New construction hard costs are no more than $162 per square foot unless adequately justified by
        community constraints or building type
       Developer fees that comply with OHCS policy

    Reasonable operating expenses, as determined by OHCS for the project size, type and the population
    to be housed, including:

       Minimum operating reserves of four to six months of operating expenses. OHCS will approve
        reserves that differ from this standard on a case-by-case basis and require justification.
       Replacement reserves of no less than $250 per unit per year for new construction development for
        seniors and $300 per unit per year for new construction development for families and rehabilitation
        developments. These figures are guidelines. A carefully prepared reserve for replacement
        schedule will establish a more precise measure of the reserves needed.

    OHCS may require capitalized or cash account reserves (including, but not limited to, replacement
    reserves, operating reserves, transition reserves, liquidity reserves, guarantee reserves, etc.) to
    remain in the project through the entire affordability period and be used for their designated purpose
    or other purposes approved or negotiated by OHCS. OHCS may require securitization or use rights
    with respect to such reserves, as it deems appropriate.

    An acquisition price for buildings or land is limited to the value determined by an independent third
    party certified appraiser.

    What the ability of the project is to demonstrate long-term financial viability via a 30-year projection.

2012 Consolidated Funding Cycle Application                                                  Page 240 of 286
    What the tax credit pricing is at current market rates. In determining the anticipated tax credit
    proceeds and the corresponding tax credit factor listed in the application, OHCS may ask applicants
    to substantiate the projected tax credit pricing. If required, applicants must provide evidence of the tax
    credit pricing and/or yield factor listed in the application.
    Calculating the Amount of Tax Credit

    The maximum annual tax credits for which a project is eligible equals the project's qualified basis
    multiplied by the applicable tax credit percentage. The actual tax credit OHCS awards cannot exceed
    the amount it determines necessary for the financial feasibility of the project and its viability as a
    qualified low-income housing project throughout the project's credit period as well as the extended
    use period, in accordance with the policies outlined the QAP at the time an offer to reserve credits is
    made. This financial evaluation of the project includes, but is not limited to, establishing the net
    operating income, including the appropriate vacancy factor and reasonable operating reserves. Tax
    credits allocated to a project are available to the project's owner annually for a ten-year period.

    Eligible capital costs allowed in a project's eligible basis generally include the cost of acquisition of an
    existing building, site surveys, engineering studies, architectural specifications, relocation expenses,
    certain legal and accounting services, insurance premiums, construction period interest and taxes,
    developer fees, general contractor fees and other construction-related costs.

    In establishing a project's eligible basis, a project owner should distinguish the costs used to
    determine the basis of property from expenses, which are costs deducted in the year they are paid or
    incurred, and costs that must be amortized. Costs that must be amortized may include organizational
    costs expended in forming a corporation or partnership and expenditures for permanent financing,
    such as points charged on the permanent loan. Expenditures that do not directly relate to the project
    construction, such as syndication fees for selling an equity interest in a project and the legal and
    accounting expenses that relate to that syndication cannot be included in a project's eligible basis.
    These costs would be permanently capitalized, expensed or amortized depending upon the
    accounting treatment. Applicants are encouraged to examine the IRS Audit Guide for more
    information.

    OHCS reserves the right to adjust the amount of a tax credit award or any other OHCS funding source
    if there has been an increase in LIHTC pricing between the application and partnership closing. At
    OHCS’ discretion, any increase may be subject to the following distribution formula:

       Subject to OHCS approval, the applicant may use up to 50 percent of the increase in LIHTC equity
        resulting to a pricing increase for necessary, justifiable cost increases or to reduce deferred
        developer fee. The remaining balance shall be used to reduce the permanent loan, sponsor
        loans, tax credit allocation or other OHCS funding sources as determined by OHCS.
       OHCS may approve increases for specific, hard cost purposes, as required by the investor, may
        receive an exception to the above policy, pending OHCS approval of hard cost scope of work.

    Note: Tax- exempt bond projects that have funding gaps and request CFC funds to fill the gaps may
          be required to apply for these funds during the CFC application round.



2012 Consolidated Funding Cycle Application                                                   Page 241 of 286
    OHCS reserves the right to determine, in its sole discretion, whether the Letters of Interest or Intent,
    Award Letters, or Commitment Letters are satisfactory. A substantial change/financing restructure in
    the source or financing terms after reservation of credits may, in the sole discretion of OHCS, result in
    all or a part of the credits being recaptured or reduced or returned if OHCS determines that the project
    is unlikely to place in service within the required timeframe or the project’s completion requires
    additional LIHTC resources in excess of the limits established in the QAP.
     Long-Term Affordability

    All tax credit developments are subject to an extended use affordability period of a minimum of 15
    years for total minimum affordability period of 30 years. This Extended Use commitment is defined
    under IRC Section 42 regulations as 15 years beyond the initial 15-year compliance period. Further,
    the applicant and proposed owner must enter into a legal commitment, satisfactory to OHCS, that
    ensures the project will continually meet the applicable fraction, rent restrictions and such other
    project requirements for a minimum of years of affordability as determined by the State Housing
    Council.
    Policy on Material Participation by Nonprofit Organizations

    The nonprofit must demonstrate Material Participation when applying under the 10 percent nonprofit
    set aside. For partnerships, turnkey or joint ventures that have a local tax-exempt nonprofit
    organization as a general partner or co-general partner, OHCS expects material participation by the
    said local tax-exempt nonprofit organization to include, but not be limited to:
    Participation in developer fees and excess cash flows of at least 25 percent of the proceeds.

    There must be participation in project oversight and decision making, such as direct involvement in
    application preparation, direct involvement in discussions for construction, bridge and debt financing,
    a close working relationship with the property management firm, and tenant selection. The project
    must demonstrate an ability to further the nonprofit’s charitable mission and there should be an ability
    on the part of the nonprofit to override any fiduciary duty to the owners when that duty conflicts with
    the charitable mission of the nonprofit.
    Provision of assistance that empowers the nonprofit and enables it to gain expertise.

    It is further required the said nonprofit NOT be affiliated with or controlled by a for profit organization.
    Eligible Applicants

    Any entity legally doing business in the State of Oregon and not subject to debarment or other
    exclusion by OHCS or another state or federal agency may apply for a reservation of Low Income
    Housing Tax Credits as provided in OAR 813-050-0010.
    Basic Eligibility and Considerations for Applicants

    In order to be eligible to receive an allocation of LIHTC, a project must be considered a “qualified low
    income housing project.” To meet this test, a project must be a residential rental property for the
    purposes of IRC § 42. This definition focuses on the following issues:




2012 Consolidated Funding Cycle Application                                                    Page 242 of 286
    Residential rental properties must include separate and complete facilities for living, sleeping, eating,
    cooking and sanitation.

    In addition to actual residential units, functionally related and subordinate facilities may be included in
    eligible basis if they are available to all tenants with no additional fees attached to them.

    A scattered site project may be treated as a single project if all units in all the buildings are rent-
    restricted. A scattered site is a project where multiple buildings with similar units are located on
    separate sites, within management proximity to one another, owned by the same party, managed by
    the same party, and financed under the same agreements. All scattered site projects must be 100
    percent affordable.

    If a building consists of both residential and nonresidential areas, the nonresidential portion will not
    preclude the residential portion from qualifying for credit. Determinations will be made on a
    reasonable basis to ensure that the costs for the commercial use portion of such a mixed-use building
    are not included in the credit computation.

    Residential rental units must be available for use by the general public in a nondiscriminatory manner.
    Definitions and authority regarding public use and discrimination are provided by Housing and Urban
    Development (HUD).

    The cost and qualified basis of a community room in a phased project must be carried by both
    phases. OHCS must receive a copy of an agreement detailing the division of liability, cost burden,
    etc. between the phases.

    A building owner must elect and fulfill one of the following low-income set-asides:

       the 20/50 test: at least 20 percent of the units must be both rent restricted and occupied by
        tenants with incomes at or below 50 percent of area median income as adjusted for family size (as
        determined by HUD)
       the 40/60 test: at least 40 percent of the units must be both rent restricted and occupied by
        tenants with incomes at or below 60 percent of area median income as adjusted for family size (as
        determined by HUD)

    The minimum set aside is the election that commits the building owner to a specific income level
    which will serve to define low income for that building. Under a 20/50 election, an owner that claims
    100 percent of units as eligible for LIHTC must rent all units to households at or below 50 percent of
    area median income as adjusted for family size in order to claim 100 percent of the credit.
    Relocation

    Permanent relocation of households who qualified under the original credit allocation is not allowed for
    applicants requesting a subsequent allocation of credits for existing LIHTC projects still in their
    extended use period. The IRS has provided guidance that if the incomes of existing households
    (previously qualified under the original allocation) exceed income limits in place at the time
    subsequent credits are allocated, the households will remain protected third-party beneficiaries under
    the LIHTC program as stated in the 8823 Audit Guide. OHCS may not award subsequent tax credit


2012 Consolidated Funding Cycle Application                                                  Page 243 of 286
    allocations to existing LIHTC projects proposing permanent relocation of tenants above 60 percent
    AMI, but below 140 percent AMI.
    Other Key Application Requirements

    Applicants will be evaluated based upon information submitted in the application.

    The application charge is due with application submittal and is non-refundable. Please see the
    application materials for proper charge transmittal format.

    If awarded a reservation of credits, a reservation charge as stated in the Application Overview will be
    required at the time of signing the Reservation and Extended Use Agreement. The reservation charge
    is not to be sent with the application.

    Recipients of credit reservations must receive and sign, as appropriate, in a timely manner the Hold
    Harmless, Acceptance of Credit Offer and the Reservation and Extended Use Agreement. The
    reservation of credits will not be made and secured without these documents being fully executed and
    without receipt of the reservation of credits charge.

    Compliance monitoring charge as stated in the Application Overview must be included in the
    operating expense budget.
    Allocation Limitations

    During the application process, the following limitations shall apply:

       The maximum amount of tax credits awarded per project as stated in the QAP is no more than 10
        percent of the previous year’s State of Oregon annual cap awarded (see the Competitive
        Allocation Limitations Policy on page 30 in the 2012 QAP). For the 2012 CFC OHCS has set the
        maximum annual credit award to $820,000 per project.
       Tax Credit Offers to Reserve and/or Carryover Allocations are not transferrable to other projects.
       For projects with a nonprofit sponsor applying for the 10 percent nonprofit set-aside, it is required
        that the nonprofit applicant(s) materially participate in the development of the project; as
        previously outlined. Changes in General Partner status without the consent of OHCS may result in
        forfeiture of the Offer to Reserve or Carryover Allocation.

    OHCS will diligently enforce all agreements, warranties and representations of the sponsor regarding
    the project, especially those made in the Initial Application (also referred to as the Original
    Application) as well as those made in the Reservation and Extended Use Agreement. Failure to
    perform or demonstrate progress to achieve project completion may jeopardize the reservation for
    Carryover Allocation, tax credits previously awarded, and potential future allocations.

    Tax Credit Reservations are made based upon representations in the application. Once a
    Reservation and Extended Use Agreement has been offered or executed, written approval for any
    changes to the project must be obtained from OHCS. This approval shall be made in a timely manner
    and will not be unreasonably withheld. Changes requiring such approval include but are not limited
    to:



2012 Consolidated Funding Cycle Application                                                Page 244 of 286
       Changes in the project's composition may be approved provided the project continues to maintain
        an evaluation ranking equal to or greater than those awarded to the original project. A re-
        evaluation of the project may be necessary if there are material changes to the project scope.
        Applicants will be required to submit an amended application, and an additional application charge
        may be required.
       Composition of the partnership.
       Lender/Equity investor changes.
       Changes in the unit mix or number of units.
       Changes in cost.
       Changes in management agent.
       Any others OHCS in its discretion deem to be substantive changes.

    No executive, employee or agent of OHCS or any other official of the State of Oregon, including the
    Governor thereof, shall be personally liable concerning any matters arising out of, or in relation to, the
    allocation of Low-Income Housing Tax Credits, or the approval or administration of this plan.

    Qualified Census Tracts or Difficult Development Area as Identified by HUD

    This section lists below the 2012 Difficult to Develop Areas (DDAs) as published by the United States
    Department of Housing and Urban Development (HUD) on October 27, 2011. HUD DDAs are subject
    to change without prior notice. A revised list is typically published in the Federal Register in the middle
    of December each year, in preparation for the following year.

    The eligible basis of a project located within a DDA may be increased up to 30 percent. Only the
    eligible basis attributable to new construction or rehabilitation qualifies for the basis boost. Acquisition
    expenses do not qualify for the HUD basis boost.

    Projects in the following counties are eligible for the basis boost increase, according to HUD’s
    designation: Clatsop, Coos, Crook, Curry, Douglas, Gilliam, Grant, Hood River, Josephine, Lincoln,
    Linn, Morrow, Sherman, Tillamook, Wasco and Wheeler.

    Projects receiving a forward reservation of Low Income Housing Tax Credits are always at risk of
    losing their HUD DDA status prior to receiving the allocation of tax credits. A project receives the
    official allocation of tax credits through execution of the Carryover Agreement, not at the time of
    funding reservation. Should the DDA status of a project change prior to carryover allocation, i.e., a
    project is no longer located in an area with DDA status due to HUD revisions. See the HUD Rule on
    Effective Date in the LIHTC Program Description and Requirements Section of the application.

    The qualified census tract areas are listed below for the following counties. This most recent available
    listing was published in the Federal Register on December 12, 2002 and supplemented on December
    19, 2003 and is available at: www.taxcredithousing.com. As of November 20, 2008, the QCTs remain
    in effect for 2012. To find the census tract number for a particular address, visit the HUD User GIS
    Service – LIHTC Qualified Census Tract Locator at:
    http://qct.huduser.org/QCTGIS/USMainLand/Map.aspx.




2012 Consolidated Funding Cycle Application                                                   Page 245 of 286
                                    Metropolitan Qualified Census Tracts

     Benton County (Corvallis)          7.00, 8.02, 11.01, 11.02

     Jackson (Medford-Ashland)          1.00, 2.02, 2.03, 19.00

     Lane County                        31.02, 37.00, 38.00, 39.00, 42.00, 48.00

     Marion County (Salem)              2.00, 4.00, 5.00, 7.00, 8.00, 9.00, 10.00, 17.01

     Multnomah County (Portland)        11.01, 21.00, 22.01, 22.02, 23.01, 33.01, 34.01, 34.02, 40.01,
                                        42.00, 44.00 49.00, 51.00, 52.00, 53.00, 54.00, 55.00, 56.00,
                                        76.00, 83.01, 96.06, 98.01

     Washington County                  332.00


                                 Non-Metropolitan Qualified Census Tracts

     Clatsop County                     9503.00

     Jefferson County                   9604.00

     Klamath County                     9716.00, 9717.00, 9718.00

     Malheur County                     9704.00

     Union County                       9707.00

    To determine if the project is located in a qualified census tract (QCT) or a Difficult to Develop Area
    (DDA), consult the latest information available from the United States Department of Housing and
    Urban Development (HUD) or visit their web site, or the OHCS website at:
    http://www.ohcs.oregon.gov/OHCS/HRS_LIHTC_Program.shtml. A reference map is provided at the
    same OHCS website address.
    OHCS Basis Boost Policy

    If a project is not in a HUD DDA/QCT, the new construction or substantial rehabilitation eligible basis
    of a project may be eligible for the state’s basis boost up to 30 percent. The acquisition basis of a
    project (the eligible basis portion associated with acquisition expenses) is not eligible for this basis
    boost.

    Projects with the following characteristics may qualify for the state’s basis boost:



2012 Consolidated Funding Cycle Application                                                Page 246 of 286
    a) Preservation projects
    b) Projects serving permanent supportive housing goals.
    c) Projects located in an area where workforce housing needs are identified in the OHCS Needs
       Analysis as a number one priority in the current or prior year’s CFC Application.
    d) Projects that are located in Transit Oriented Districts (TODs) or Economic, Development Regions
       (EDRs) as designated by local governments, or projects in a designated state or federal
       empowerment/enterprise zone or Public Improvement District (PIDs), or other area or zone where
       a city or county has, through a local government initiative, encouraged or channeled growth,
       neighborhood preservation, redevelopment, or encouraged the development and use of public
       transportation.

    If the project meets the requirements of the above policy, and needs the state’s basis boost for
    financial feasibility, complete the Request to Use 130 percent Basis Boost form in the LIHTC
    Supplemental Application forms. The answers need to identify either the project meets the
    characteristics outlined in the QAP or the reasons why using the boost will make the project financially
    feasible and why financial feasibility cannot be achieved without it. OHCS approval of the basis boost
    does not imply an increase in the amount of tax credit awarded to the project.
    Projects with Project Based Vouchers – Final Rule Change

    HUD has issued a final rule which deletes the Project-Based Voucher (PBV) Program Final Rule
    established October 13, 2005. That rule stated that LIHTC projects with PBV units must limit rents to
    the lower of the tax credit rent minus utility allowance, the reasonable rent or the rent requested by the
    owner. The new final rule reinstates the former policy under which public housing agencies do not
    have to limit their Section 8 Project-Based Voucher rents to tax credit caps.
    LIHTC Documents

    LIHTC legal documents, including the Reservation and Extended Use Agreement, Carryover
    Agreement, Declaration of Land Use Restrictive Covenants, as well as a schedule of documents
    required at time of Placed-In-Service have been approved by the State’s Attorney General. It is
    expected they will be signed as written. Any proposed changes must be submitted in writing.
    Applicants must allow adequate time for review and comment by OHCS, and all changes must be
    approved by OHCS prior to execution or recording.
    Adjustment of Tax Credit Amount

    OHCS will conduct as many as four project evaluations to determine the credit reserved, committed
    and/or allocated to a project does not exceed the amount necessary for financial feasibility. OHCS
    will conduct these evaluations upon receipt of the application, upon any requests for an increase in
    the amount of awarded tax credits, at the end of the allocation year for the Carryover Agreement, and
    after the building has been Placed-In-Service (final application). The owner will be required to submit
    a final update to the application with costs certified by a CPA, when the project is Placed-In-Service.
    OHCS reserves the right to adjust the amount of tax credit and to negotiate modifications to the
    proposed project plan and budget. OHCS shall have authority to request additional information from
    the applicant as it deems necessary.


2012 Consolidated Funding Cycle Application                                                Page 247 of 286
    Project costs will be evaluated against industry cost standards, as well as average costs from
    competing projects, and OHCS may request additional substantiating documentation. Projects with
    excessive costs will be subject to adjustments to the amount of credit requested. During each
    evaluation, OHCS will determine the amount of credit to be reserved, committed or allocated by
    considering, but not limited to, the following components of each project:

           Total project costs;
           Funding sources available to the project:
            a) Loans
            b) Grants
           Tax Credit Proceeds
           Owner Equity
           Percentage of the housing credit dollar amount used for hard costs (actual construction costs,
            including builder and contractor fees);
           Projected operating income and expense, cash flow and tax benefits;
           Maximum tax credit eligibility;
           Debt Service Coverage Ratio compared to commercial lending practices; and
           Project reserves.

    OHCS will use current market guidelines to estimate the proceeds anticipated from the sale of tax
    credits. A copy of the Placement Memorandum or Syndication Agreement must be provided to OHCS
    no later than the date upon which the recipient applies for Placed-In-Service allocation. If said
    document has not been finalized, a draft Placement Memorandum or Syndication Agreement or
    Limited Partnership Agreement will be acceptable. When actual proceeds are determined, there may
    be an adjustment to the credit reserved or committed. Credits will not be increased beyond the
    amount originally reserved unless application amendments are submitted and the request is approved
    by OHCS’s Finance Committee. Tax credits will not be allocated to projects in excess of the amount
    necessary to fund the equity gap as determined by OHCS using the value of the credit (expressed as
    a percentage of the total ten-year credit) established at the time of application. If actual project costs
    or funding sources differ substantially from the projections submitted in the application, OHCS may
    reduce the final credit allocation or the owner may establish project reserves to offset the deficit for
    allowable purposes. The conditions for such reserve accounts will be determined on a case-by-case
    basis.

    Project soft costs include developer fees, consultant fees and syndication fees. Total project costs
    include all costs attributable to basis, other than land, syndication fees (if any), development fees and
    tax credit application charges. OHCS requires full disclosure of all fees paid to parties related to the
    recipient and/or developer. If an identity of interest exists between the developer and general
    contractor, contractor profit, including supervisory fees, may not exceed eight percent of the
    construction contract and contractor's overhead may not exceed two percent of the construction
    contract. Developer fees shall include: developer overhead, profit, and consultant fees for services
    normally performed by the developer.




2012 Consolidated Funding Cycle Application                                                 Page 248 of 286
    Additional eligible basis will be considered for projects located in HUD's designated "Hard to Develop
    Areas" and "Qualified Census Tracts" or project complying with the OHCS Basis Boost Policy as
    outlined earlier in this document and detailed in the 2012 QAP, if deemed necessary by OHCS for the
    viability of a project. The amount of tax credits allocated to a project will be limited in the evaluation
    process to the minimum necessary to make the project financially feasible.

    Carryover Requirement

    If a project is not placed in service by December 31st of the year tax credits are allocated, the credits
    awarded will be lost unless it meets the requirements of a Carryover Allocation. Project buildings may
    qualify for a carryover allocation if, prior to December 31st, the applicant completes the following
    steps:

       An application for a carryover allocation is submitted to OHCS by December 1st of the year of the
        tax credit allocation and includes all required documentation. Applications received after
        December 1st of the credit year are subject to a late charge.
       The time for satisfying the 10 percent test and submitting related documentation will be the later of
        12 months after the date of carryover allocation, or December 31st of the tax credit allocation year.
        The 10 percent test is verification that the owner has incurred, by the close of the calendar year of
        the allocation, costs totaling more than 10 percent of the reasonably expected basis in the project.
       The applicant must maintain site control until the time required for meeting 10 percent of the
        reasonably expected basis test and for the duration of affordability.
       Recipients should contact OHCS to obtain the carryover application materials required when
        applying for a carryover allocation.

    A project receiving a Carryover Allocation must be placed in service no later than the close of the
    second calendar year following the calendar year in which the allocation was made (e.g., if the project
    receives 2013 credits, it must be placed in service by December 31, 2015).

    The Carryover application will request the following information:

       An interim financial feasibility analysis. The applicant must provide OHCS with the following
        information as soon as possible after the project has received its Reservation but no later than
        December 1st of the year of the credits. The following documentation must be submitted in order
        to initiate the Carryover Allocation review process:
       Updated project pro forma, including sources and uses, income and expenses.
       Certification of all subsidies and grants;
       Third party certification that the owner’s basis (incurred costs) in the project is more than 10
        percent of the anticipated basis of the completed project;
       Certification that the owner has received title to the project site.
       Copy of draft Partnership Agreement if available indicating tax credit proceeds available to the
        project together with a contribution schedule.




2012 Consolidated Funding Cycle Application                                                 Page 249 of 286
    Once OHCS has received and reviewed all necessary documents, OHCS will determine whether
    carryover requirements have been met. Once met, OHCS prepare a Carryover Allocation Agreement.

    The Carryover Allocation Agreement must be executed before December 31st in the year of the
    credit. Failure to execute the document will result in a loss of LIHTC to the development. The
    Carryover Allocation Agreement will be provided to the IRS along with OHCS’s filing for Low Income
    Housing Tax Credit purposes.

    OHCS may revoke a reservation of credits if it determines, at its discretion and based on thorough
    analysis, that more than 10 percent of the total estimated project cost will not be expended within
    twelve months of the allocation date or end of the calendar year in which the Carryover Allocation is
    made (whichever is later). Furthermore OHCS may revoke a reservation of credits if it determines, at
    its discretion, the project will not be placed in service within two years following the calendar year in
    which the Carryover Allocation is made or by the dates mutually agreed upon.

    Placed In Service / Final Application

    Once a project has been Placed-In-Service, OHCS can begin the final review process for issuing IRS
    Form(s) 8609. The process begins when the owner submits a request for Issuance of IRS 8609.

    The request for Issuance of IRS 8609 (Final Application) must be submitted to OHCS no later than 6
    months after the last building is placed in service, or in the case of acquisition rehabilitation when the
    project is substantially complete. Applications received later than 6 months are subject to a late
    charge. OHCS highly encourages sponsors to submit the Final Application as soon as the information
    necessary for the issuance of 8609s is available.

    A final financial feasibility analysis will be required before OHCS issues the IRS Form(s) 8609. Allow
    a minimum of thirty days for this review, once all the necessary information has been provided to
    OHCS. The recipient must provide OHCS with the following information:

       the Final Application, as posted on the OHCS website:
        http://www.ohcs.oregon.gov/OHCS/HRS_LIHTC_Program.shtml
       certification of final costs by a third party professional such as an accountant or a tax attorney,
       copies of the Certificates of Occupancy;
       copy of the Cost Certifications required by lender or syndicator;
       copy of Placement Memorandum or Syndication Agreement indicating tax credit proceeds
        available to the project together with a contribution schedule;
       an opinion letter from the tax accountant or tax attorney that all deferred payment loans, cash flow
        only loans or partnership loans have a reasonable expectation to be repaid, if the loan/s is/are
        kept in basis;
       an approved Resident Services Plan;
       copy of the Property Management Plan acceptable to OHCS and Permanent lender;
       a Certification from the project architect; if applicable, and,
       Any other documentation OHCS requests based upon representations made in the application.



2012 Consolidated Funding Cycle Application                                                 Page 250 of 286
    Payments or charges over and above what is represented to OHCS in the application(s) or other
    documents and misrepresentations of any sort will be subject to remedial action at OHCS’s discretion.
    In instances where there are unsubstantiated costs or charges, OHCS may request a third party audit
    at the expense of the developer before action on the project’s Placed-In-Service application.
    Recordation of the Declaration

    Once OHCS has received and reviewed all necessary documentation, a determination of the final tax
    credit allocation amount will be made. OHCS will then prepare an Attorney General approved
    Declaration of Land Use Restrictive Covenants. The owner will be required to record the Declaration
    and return a copy of the recorded Declaration to OHCS. If the owner fails to properly record and
    return the original Declaration, OHCS may revoke the tax credits.
    Issuance of the IRS Form(s) 8609

    As soon as OHCS receives the recorded Declaration, the IRS Form(s) 8609 will be prepared. The
    Form(s) are then issued to the project owner. These forms are required for the credit to be claimed.
    Compliance

    All LIHTC projects are subject to compliance monitoring and reporting procedures as outlined in
    OHCS's Low Income Housing Tax Credit Compliance Manual. Monitoring and reporting procedures
    are incorporated as part of the Qualified Allocation Plan. The monitoring procedures have been
    established to meet the requirements of IRC Section 42 and are subject to amendment to conform to
    Internal Revenue Service compliance monitoring requirements. OHCS's compliance procedures
    include requirements for annual reporting and certification by owners, random inspection of a
    reasonable number of projects each year to review project resident files, conducting random resident
    interviews and making physical unit inspections, and notification to the IRS in the event of any
    noncompliance findings.

    In addition to application and reservation charges, owners are required to promptly pay specified
    compliance monitoring charges associated with inspecting or auditing sites, low-income certification
    and the supporting documentation and rent records as required. Specific compliance guidelines,
    monitoring and reporting requirements and charges schedules are included in the Low Income
    Housing Tax Credit Compliance Manual, which is available to all project owners upon request.
    Random Audits of Costs on LIHTC Projects

    As the state agency responsible for the LIHTC program in Oregon, OHCS has an obligation to affirm
    to the federal government that information reported by project sponsors, developers and owners is
    correct. OHCS may decide to commission on a random basis financial audit of completed LIHTC
    projects to verify project costs, as identified in final cost certifications, are accurately represented.
    LIHTC Construction and Rehabilitation Standards

    Section 42 (LIHTC) requires that HUD 24 CFR 5.703 be followed for all projects beginning January 1,
    2001. This citation defines physical condition standards that must be met in order for a project and/or
    unit to be considered decent, safe, sanitary, and in good repair. These standards are summarized
    below. Consult 24 CFR 5.703.

2012 Consolidated Funding Cycle Application                                                 Page 251 of 286
    The Site: Site components such as fencing, retaining walls, grounds, lighting, mailboxes/project signs,
    parking lots/driveways, play areas and equipment, refuse disposal, roads, storm drainage and
    walkways must be free of health and safety hazards and be in good repair. The site must not be
    subject to material adverse conditions, such as abandoned vehicles, dangerous walks or steps, poor
    drainage, septic tank back-ups, sewer hazards, excess accumulation of trash, vermin or rodent
    infestation or fire hazards.

    Building Exterior: Each building on the site must be structurally sound, secure, habitable and in good
    repair. Each building’s doors, fire escapes, foundations, lighting, roofs, walls and windows where
    applicable, must be free of health and safety hazards, operable and in good repair.

    Building Systems: Each building’s domestic water, electrical system, elevators, emergency power,
    fire protection, HVAC and sanitary system must be free of health and safety hazards, functionally
    adequate, operable, and in good repair.

    Dwelling units: Each dwelling unit within a building must be structurally sound, habitable, and in good
    repair. All areas and aspects of the unit must be free of health and safety hazards, functionally
    adequate, operable and in good repair. The dwelling unit must have hot and cold running water
    (where applicable), including an adequate source of potable water. SRO units need not contain water
    facilities. If the dwelling unit contains its own sanitary facility, it must be in proper operating condition,
    usable in privacy, and adequate for personal hygiene and disposal of human waste. The dwelling unit
    must contain at least one battery-operated or hard-wired smoke detector in proper working condition
    on each level of the unit.

    Common Areas: The common areas must be structurally sound, secure, and functionally adequate
    for the purposes intended. These areas should be free of health and safety hazards, operable and in
    good repair. In this context, common areas include, but are not limited to: basements, garages,
    carports, common restrooms and kitchens, closets, utility rooms, mechanical rooms, community
    rooms, day care areas, halls, corridors, stairs, laundry areas, offices, porches, patios and trash
    collection areas. These standards are particularly relevant to congregate housing, independent group
    homes and single room occupancy units where the individual dwelling units do not contain kitchen
    and/or bathroom facilities.

    Health and Safety Considerations: All areas and components of the housing must be free of health
    and safety hazards. These areas include, but are not limited to: air quality, electrical hazards,
    elevators, emergency/fire exits, flammable materials, garbage and debris, handrail hazards,
    infestation, and lead based paint. The housing must comply with all requirements related to the
    evaluation and reductions of lead based paint hazards and have available proper certifications of such
    as per 24 CFR part 35.
    Technical Assistance Memoranda from the IRS

    Periodically the Internal Revenue Service releases technical assistance memoranda and private letter
    rulings that impact administration of the Low Income Housing Tax Credit Program. Applicants are
    encouraged to consult knowledgeable sources to stay informed of current developments that impact
    the LIHTC program.


2012 Consolidated Funding Cycle Application                                                    Page 252 of 286
    Developer Fees

    IRS takes the position that, to the extent a developer’s services relates either (1) to the acquisition of
    land or (2) to those land preparation activities which would not qualify for eligible basis, then that
    portion of the developer fee would not be included in eligible basis. The National Office of the IRS
    has not ruled on this topic.
    Good Cause Eviction

    The IRS ruled in Revenue Ruling 2004-82 that Low-Income Housing Tax Credit units under Section
    42(h)(6)(B)(i) have an extended low-income housing commitment which includes a prohibition during
    the extended use period against (1) the eviction or the termination of tenancy (other than for good
    cause) of an existing tenant of any low-income unit (no-cause eviction protection) and (2) any
    increase in the gross rent with respect to the unit not otherwise permitted under §42.
    Organization/Syndication Costs

    If the developer or the development team is involved in finding an investor limited partner or assists in
    the negotiation of the partnership agreement, the portion of the developer fee associated with this
    activity cannot be included in eligible basis.

    The IRS feels that expenses associated with preparing and negotiating a partnership agreement and
    preparing cash flow and tax projections to be used by the general partner and the investor limited
    partners are not part of eligible basis.
    Land Preparation Costs

    Land preparation costs, inextricably associated with the land, are added to the cost of the land and in
    general may not be included in eligible basis.

    Costs associated with land preparation that are inextricably linked to the building are added to the
    cost of building construction and may be included in eligible basis. These costs include, but are not
    limited to, digging spaces and trenches for a building foundation and utilities.

    Project owners should seek professional advice when determining which costs may be included in
    eligible basis.
    LIHTC Definitions

     Annual Tax           The amount of credit allocated to a project. The credit is available annually to
     Credit              the sponsor for a period of ten years. The amount of credit cannot exceed what
                         OHCS deems necessary for the project's financial feasibility, or the amount the
                         project is eligible to receive.

     Applicable          Equals the lesser of the "unit fraction" or the "floor space fraction." The "unit
     Fraction            fraction" is calculated by dividing the number of low-income units in a building by
                         the total units in the building, and the "floor space fraction" is calculated by
                         dividing the total floor space of the low-income units in a building by the total floor
                         space of the residential units in the building.


2012 Consolidated Funding Cycle Application                                                  Page 253 of 286
     Applicable Tax      The percentage used in the calculation of the amount of tax credit available to a
     Credit              project, depending upon its development and financing characteristics. A
     Percentage          qualified low-income housing project may be eligible for one or both of two types
                         of credit. A 30 percent net present value (NPV) tax credit applies to new
                         construction and substantial rehabilitation that receive federally subsidized
                         financing as well as to the acquisition of eligible existing buildings, regardless of
                         the financing source. A 70 percent NPV applies to new construction and
                         substantial rehabilitation that do not receive federally subsidized financing.
                         Consequently, a single project may receive two rates of tax credit.

     Compliance          The period of 15 taxable years beginning with the first year of a building's ten-
     Period              year "credit period." In addition, each building must have an extended low-
                         income housing commitment which requires, at a minimum, a 15-year extended
                         use period that begins on the first day of the compliance period and ends 15
                         years after the close of the compliance period.

     Credit Period       The period of ten taxable years beginning with the taxable year in which the
                         building is placed-in-service or, at the election of the sponsor, the succeeding
                         taxable year, but only if the building is a qualified low-income building at the close
                         of the first year of the period. The credit period for the acquisition of an existing
                         building may not begin until the first year of the credit period for the rehabilitation
                         expenditures for that building.

     Deferred            The portion of the developer fee taken over a 10 to 15 year period of time. The
     Developer Fee       deferred fee must be able to be repaid within the specified timeline, and is
                         considered a secondary debt.

     Depreciable         The development costs incurred in connection with a capital asset that is subject
     Costs               to a loss of value brought about by age, physical deterioration, or functional or
                         economic obsolescence.

     Eligible Basis      Consists of the eligible expenditures, new construction, rehabilitation and
                         acquisition, incurred up to the close of the first taxable year of a project's "credit
                         period." Eligible basis includes: the adjusted basis of depreciable property
                         (without regard to depreciation); certain deductions from these costs must be
                         made, including but not limited to: (1) the cost or value of the land underlying the
                         project; (2) the value of federal grants used to finance the project; (3) tax credits
                         received under certain provisions of state and federal tax law; and (4) the amount
                         of "nonqualified non-recourse financing" used in the project.

                         Eligible basis also includes the cost of personal property for use by the residents,
                         such as major appliances. A project owner may also include the cost of facilities
                         and extra amenities such as common areas, parking facilities and recreation

2012 Consolidated Funding Cycle Application                                                  Page 254 of 286
                         equipment in the project's eligible basis if there is no separate fee for the use of
                         the facilities and they are available to all residents on a comparable basis. Costs
                         of the residential units in a building which are not low-income units may be
                         included, but only if such units are not above the average quality standard of the
                         low-income units, or if such excess costs are deducted from the eligible basis.
                         Project buildings located in "qualified census tracts or difficult to develop areas"
                         are entitled to an increase in their eligible basis.

     Eligible Existing   A taxpayer may normally receive a 30 percent NPV credit for the acquisition of an
     Building            existing building if (1) it was purchased from an unrelated entity that owned it for
                         at least ten years and kept it in active use; (2) for the ten-year period preceding
                         the purchase it did not undergo any rehabilitation in excess of 25 percent of its
                         basis; and (3) no 15-year compliance period is in effect for any previously
                         received low-income housing tax credits.

     Federally           A building is deemed to be federally subsidized if it is financed by federal tax-
     Subsidized          exempt bonds, federal grants, or below market federal loans.
     Building

     Gross Rent          An amount that does not exceed 30 percent of the applicable income limitation.
                         Gross rent includes an utility allowance determined by the Secretary of the U.S.
                         Department of Treasury; but does not include any payment under Section 8 or
                         any comparable rental assistance program; and does not include fees for
                         supportive services paid by governmental or nonprofit organizations if such
                         programs include rental assistance and rent is not separable from the amount of
                         assistance provided for supportive services; and does not include any rental
                         payments to the owner of the unit to the extent such owner pays an equivalent
                         amount to the Farmers Home Administration under Section 515 of the Housing
                         Act of 1949.

                         Supportive services, as used in the paragraph above, means any service
                         provided under a planned program of services designed to enable residents of a
                         residential rental property to remain independent and avoid placement in
                         hospitals, nursing homes or intermediate care facilities for the mentally or
                         physically handicapped. In the case of a single-room occupancy unit or a
                         building providing transitional housing to the homeless, this term includes any
                         service provided to assist residents in locating and retaining permanent housing.

     Nonqualified        General. Nonqualified non-recourse financing means any non-recourse financing
     Non-recourse        which is not "qualified commercial financing." Financing is non-recourse if the
     Financing           borrower is not personally at risk to repay the loan or if the lender has an interest
                         in the financed project (other than as a creditor). The borrower may be protected
                         against loss on a loan through guarantees, stop-loss agreements or other similar


2012 Consolidated Funding Cycle Application                                                 Page 255 of 286
                         arrangements.

     Placed-In-          The Placed-In-Service date for a new or existing building is the date on which the
     Service             building is ready and available for its specifically-assigned function. This is
                         usually the date the first unit in the building is certified as being suitable for
                         occupancy under state or local law. Substantial rehabilitation expenditures are
                         treated as Placed-In-Service at the close of any 24-month period over which the
                         expenditures are aggregated.

     Qualified           The plan, signed by the Governor, establishes the process by which OHCS will
     Allocation Plan     allocate Tax Credit to qualified projects. This is available upon request from
                         OHCS, or can be downloaded from the OHCS web page at:
                         http://www.ohcs.oregon.gov/OHCS/HRS_LIHTC_Program.shtml.



     Qualified Basis     The portion or percentage of the eligible basis that qualified for the tax credit
                         becomes the qualified basis. The "eligible basis" is multiplied by the "applicable
                         fraction" to obtain the amount of "qualified basis" attributable to the housing
                         project.

     Qualified           Projects located in difficult to develop areas and qualified census tracts are
     Census Tract or     eligible for additional credit. The maximum credit to such projects is calculated by
     Difficult           increasing the eligible basis by 130 percent. To determine if the project is located
     Development         in a qualified census tract, contact Portland State University Center for Population
     Area                Research and Census at1-503-725-3922, the local city hall or look for this data in
                         the Qualified Census Tracts or Difficult to Develop Areas section.

     Qualified           Financing generally constitutes qualified commercial financing when (1) seller of
     Commercial          the financed property is not a "related person" to the borrower; (2) amount of the
     Financing           non-recourse financing does not exceed 80 percent of the property's credit base;
                         and (3) financing is borrowed from a "qualified person" party or is borrowed or
                         guaranteed by a governmental entity. A "qualified person" is a party actively and
                         regularly engaged in the business of lending money that is not (1) a "related
                         person" to the borrower; (2) the seller of the financed property or a "related
                         person" to the seller; or (3) a party receiving a fee from the borrower's investment
                         in the property or a "related person" to such a party. Certain "qualified
                         commercial financing" and "qualified person" requirements do not apply when the
                         borrower is a qualified nonprofit organization.




2012 Consolidated Funding Cycle Application                                                Page 256 of 286
     Qualified Low-      Any project qualifies for residential rental property that meets the "20-50 Test" or
     Income Housing      the "40-60 Test," as elected by the taxpayer. This election, once made, is
     Project             irrevocable.

     The 20-50 Test      This test is satisfied if at least 20 percent of the residential units in a project are
                         both rent-restricted and occupied by individuals whose household income is no
                         more than 50 percent of the area median gross income.

     The 40-60 Test      This test is satisfied if at least 40 percent of the residential units in a project are
                         both rent-restricted and occupied by individuals whose household income is no
                         more than 60 percent of the area median gross income.

     Qualified           An organization described in IRC Section 501(c)(3) or 501(c)(4) that is exempt
     Nonprofit           from federal income tax under IRC Section 501(a) if OHCS determines the
     Organization        organization is not affiliated with or controlled by a for profit organization and an
                         exempt purpose of such organization includes fostering low-income housing.

     Related             Related persons include, but are not limited to (1) members of a family; (2) a
     Entity/Person       fiduciary and either a grantor or a beneficiary of a trust; (3) a party and a federally
                         tax-exempt organization that the party, or members of the party's family, controls;
                         (4) a party and either a corporation or a partnership in which the party has more
                         than a 50 percent interest; (5) two business entities, either corporations or
                         partnerships, where a party has more than a 50 percent interest in each; (6) two
                         corporations that are members of the same controlled group; and (7) two parties
                         engaged in trades or businesses under common control.

     Substantial         Rehabilitation projects qualify for the 70 percent present value credit if they have
     Rehabilitation      not received any federal financing subsidies and have total rehabilitation and
                         related expenditures attributable to or benefiting one or more units (incurred over
                         a 24-month period ending when the buildings are placed-in-service) in an amount
                         equal to the greater of: not less than ten percent of the adjusted basis of the
                         building; or $3,000 or more per low-income unit.

     Tax Credit          Under the federal income tax code, a tax credit is a dollar-for-dollar reduction in
                         the tax liability. A tax credit is subtracted after the amount of taxes is calculated.
                         The use of tax credits can be limited by the application of the passive loss
                         provisions, the alternative minimum tax and limits on the use of general business
                         credits.




2012 Consolidated Funding Cycle Application                                                    Page 257 of 286
     Tax Credit          Owners of an LIHTC project may sell (syndicate) the tax credits to limited partner
     Syndication         investors who contribute equity for the project in return for the use of the tax
                         credit and other tax benefits generated by the project. The project developer
                         usually retains ownership in the project and acts as the general partner. The
                         limited partner investors are usually not involved in the management of the
                         project, but have concerns that the project be maintained in compliance with tax
                         credit regulations. If not, they may be subject to tax credit recapture and
                         penalties.

     Transitional        A housing unit does not qualify for the LIHTC program as a low-income unit if it
     Housing for         used on a transient basis. Transitional housing for the homeless is not
     Homeless            considered to be used on a transient basis if the units contain sleeping
                         accommodations, bathroom and kitchen facilities and are located in a building in
                         which a governmental entity or qualified nonprofit organization provides residents
                         with temporary housing and supportive services designed to assist them in
                         locating and retaining permanent housing and is used exclusively to facilitate the
                         transition of homeless individuals (as the term is used in Section 103 of the
                         Steward B. McKinney Homeless Assistance Act) to independent living within 24
                         months. The qualified basis of a building that provides transitional housing for the
                         homeless may be increased by the amount of the eligible basis of the building
                         that is used throughout the year to provide supportive services designed to assist
                         residents in locating and retaining permanent housing to the extent this amount
                         does not exceed 20 percent of the building's other qualified basis.

     LIHTC Market        This information has been moved to the Market and Need section.
     Analysis
     Requirement

    LIHTC Program Rents and Incomes

    The most recent LIHTC Program (Multifamily Tax Subsidy Program) Rents and Incomes can be
    downloaded from the web at:

    http://www.ohcs.oregon.gov/OHCS/HPM_income_limits.shtml.




2012 Consolidated Funding Cycle Application                                                Page 258 of 286
                                   Elections and Rental Assistance Information

    Difficult to Develop Area’s Basis Boost:

    The LIHTC Program Description and Requirements Section of this Application lists 2011 Difficult to Develop
    Areas (DDAs) as published by the United States Department of Housing and Urban Development (HUD). HUD
    DDAs are subject to change without prior notice. A revised list is typically published in the Federal Register in the
    middle of December each year, in preparation for the following year.

    The eligible basis of a project located within a DDA may be increased up to 30 percent. Only the eligible basis
    attributable to new construction or rehabilitation qualifies for the basis boost. Acquisition expenses do not qualify
    for the HUD basis boost.

    Projects receiving a forward reservation of Low Income Housing Tax Credits are always at risk of losing their
    HUD DDA status prior to receiving the allocation of tax credits. A project receives the official allocation of tax
    credits through execution of the carryover agreement, not at the time of funding reservation. Should the
    DDA status of a project change prior to carryover allocation, i.e., a project is no longer located in an area with
    DDA status due to HUD revision, see the HUD Rule on Effective Date in the LIHTC Program Description and
    Requirements Section of the application.




    State’s Basis Boost QAP Policy:

    If a project is not in a HUD DDA/QCT, the new construction or rehabilitation eligible basis of a project may be
    eligible for the state’s basis boost up to 30 percent. The acquisition basis of a project (the eligible basis portion
    associated with acquisition expenses) is not eligible for this basis boost.

    Projects with the following characteristics may qualify for the state’s basis boost:
        a. Preservation projects
        b. Projects serving permanent supportive housing goals
        c. Projects located in an area where workforce housing needs are identified in the OHCS Needs as a
           Number One Priority in the current or prior year’s CFC Application
        d. Projects that are located in Transit Oriented Districts (TODs) or Economic, Development Regions
           (EDRs) as designated by local governments, or projects in a designated state or federal
           empowerment/enterprise zone or Public Improvement District (PIDs), or other area or zone where a city
           or county has, through a local government initiative, encouraged or channeled growth, neighborhood
           preservation, redevelopment, or encouraged the development and use of public transportation.

    If your project meets the requirements of the above policy, and needs the state’s basis boost for financial
    feasibility, please complete the Request to Use 130 percent Basis Boost form located at the end of this section,
    and explain in detail the project’s need for the State’s basis boost. The answer needs to identify that the project
    meets the characteristics outlined in the QAP or the reasons why using the boost will make the project
    financially feasible.

    Minimum Set-Aside Election

    The sponsor elects one of the Minimum Set-Aside Requirements:



2012 Consolidated Funding Cycle Application                                                           Page 259 of 286
    (X) Mark only one


              At least 20 percent of the rental residential units in this development are rent-restricted and are to be
              occupied by individuals whose income is 50 percent or less of family adjusted area median income.


              At least 40 percent of the rental residential units in this development are rent-restricted and are to be
              occupied by individuals whose income is 60 percent or less of family adjusted area median income.

    Federal Preferences

    This project will address one or more of the following federal tax credit preferences:

    (X) Mark all that apply


               Serves very low-income tenants for more than 30 years


               Is located in a Qualified Census Tract or Difficult to Develop Area as published by HUD


               Serves tenants with special needs


               Selects tenants from Public Housing wait list


               Serves tenants with children


               Is intended for tenant ownership


               Includes energy efficiency features


               Rehabilitates and helps preserve a certified historic structure




2012 Consolidated Funding Cycle Application                                                         Page 260 of 286
    Funding Set-Asides

    Will the project be considered under one or more of the following? (Mark X, as applicable)




              10 percent Federally mandated nonprofit set aside, or


              25 percent State Preservation Projects set-aside


    Preservation projects include, but are not limited to:

       Those federally financed existing projects where at least 25 percent of the existing project’s units have
        project based rental assistance which are currently offering rents below market. Projects participating in,
        but not limited to the following programs, are considered federally financed: HUD and USDA Rural
        Development.
       Projects participating in programs that include the replacement of existing affordable housing units including
        the HOPE VI program as long as 25 percent of the units have project based assistance.
       Expiring LIHTC projects if proposed rents are at least 10 percent below market.

    In funding preservation projects, OHCS will give funding preference to those preservation projects where at
    least 25 percent of the units have project based rental assistance.

    Non-Profit Set Aside

    If the applicant wishes to be considered under the 10 percent federally mandated nonprofit set aside, nonprofit
    participants will be subject to Material Participation requirements as defined by the Internal Revenue Service
    and any other LIHTC program requirements. Applicants may want to seek professional advice prior to making
    this election.

    Compliance Period Election and Owner Agreements

    1. Owner agrees to extend the low income commitment period to be               set a minimum term as determined
       by the State Housing Council (currently 60 years).

    2. Choose one of the below: The earliest date upon which the Owner may request the Department to procure a
       qualified contract for acquisition of the Project:


                            Set to after year 29 but before the end of year 30 (or)


                            Postpone from after year 29 to year


    3. Maintain the applicable fraction for each building in the project as        percent ( percent of the units to be
    LIHTC units). Provide a building by building applicable fraction as follows:




2012 Consolidated Funding Cycle Application                                                         Page 261 of 286
                                                  Floor Area Ratio                    Unit Ratio

                   Building Number            (SF affordable/Total SF       (Affordable units/Total units)


                            1


                            2


                            3


                            4


                            5


                            6


                            7


                            8


                            9


                           10


                          Total




    The applicable fraction for the project will be the lesser of the Floor Area Ratio or the Unit Ratio Total.


    If the project consists of more than one building or type of use, are they:                Yes (X)       No (X)


    Common ownership for federal tax purposes?


    Financed pursuant to a common plan of financing?


    Managed pursuant to a common property management plan?




2012 Consolidated Funding Cycle Application                                                           Page 262 of 286
    Name, title and address of the Chief Executive Officer (i.e.: Mayor, City Manager) of the project’s locality:


    Name:                                                       Title:


    Address:                                                    City:                         Zip:




                                            Tax Credit Sale Information


    Proceeds from sale of Low-Income Housing Tax Credits                 $


    Is the partnership agreement signed?*     (yes/no)


    Proceeds from sale of Historic Rehabilitation Tax Credits            $


    Proceeds from sale of other Tax Credits    (type)                                          $


    Type of offering: (x)     Public                         Private


    Type of investors: (x)    Individuals                    Corporations               Local Employer


    Type of bonds: (x)        Taxable                        Tax-Exempt                 Percentage Taxable




    Describe the anticipated LIHTC equity pay-in schedule and amounts to be received:




2012 Consolidated Funding Cycle Application                                                          Page 263 of 286
                                            Investment Fund Information


    Fund:


    Syndicator:


    Address:


    City:                                       State:                                    Zip Code:


    Telephone:        ( )                                Facsimile:    ( )




    * Attach letter of intent or commitment indicating the project has been reviewed by an investor for financial
    feasibility, and has determined a market price, terms and conditions of equity pay-in. Please complete the Tax
    Credit Sale Information and Investment Fund Information as thoroughly as possible.




2012 Consolidated Funding Cycle Application                                                         Page 264 of 286
                                       Rehabilitation of an Existing Building

             Note: If the project involves the rehabilitation of an existing building, this form must be completed.

                                          Acquisition of Existing Buildings


    Building(s) acquired or to be acquired from:                       Related party                Unrelated party


        For a definition of the term "unrelated party," applicants may wish to consult IRC Sections 42(d)(2)(D)(iii) as
        well as the Housing and Economic Recovery Act of 2008 Section 3003. Generally, the relationship between
        the taxpayer claiming acquisition credits and the seller of the property is increased to 50 percent,
        conforming it to the related party rule used in other parts of the Internal Revenue Code.


     For acquired building(s), how is the value of the land determined?




    Is this property currently substantially assisted, financed, or operated under           Yes (X)     No (X)
    Section 8, 221(d)(3), 221(d)(4) or 236 of the National Housing Act; Section 515 of
    the Housing Act of 1949, or “any other housing program administered by the
    Department of Housing and Urban Development or by the Rural Housing Service?
    Alternatively, is the property substantially State assisted, financed, or operated
    under any state law similar in purpose to any of the federal laws listed above?


    If no, what was the precise date this property/bldg. was last sold? (Prior to sponsor
    involvement)


    (OHCS may request additional information if the project, in whole or in part was previously placed in service
    within the last 10 years and is not or was not substantially assisted, financed or operated by HUD, RD or state
    programs as mentioned above.)




2012 Consolidated Funding Cycle Application                                                         Page 265 of 286
                  Instructions for Filling out IRS Form 8821, Tax Information Authorization

          For complete instructions, please go to: http://www.irs.gov/pub/irs-pdf/f8821.pdf.
    Complete one IRS Form 8821 for each Financial Beneficiary, including the Developer:

    1.      Taxpayer Information:                   Fill in Financial Beneficiary Name, address and other
                                                    requested information


    2.      Appointee:                              If not already printed, fill in Oregon Housing and Community
                                                    Services
                                                    725 Summer St NE Ste B
                                                    Salem, Oregon 97301-1266
                                                    Attn: LIHTC Program Manager

    3.      Tax Matters:
             Type of Tax:                          Choose "Income"
             Tax Form Number                       Fill in the tax forms normally filed by the Financial Beneficiary;
                                                    i.e.: Individual - Form 1040, Corporation - Form 1120, Small
                                                    Corporation - Form 1120-S, Partnership - Form 1065, etc.
               Year(s) or Period(s):               Type in the years. (5 yrs. prior to application. See example on
                                                    form 8821, Line 3, tax matters.)

    4.      Specific Use Not Recorded on
            Centralized Authorization File
            (CAF):                                          Completed by OHCS

    5.      Disclosure of Tax Information:

    6.      Retention/Revocation of Tax             See instructions on form 8821, line 6.
            Information Authorization:

    7.      Signature of Taxpayer(s):               Financial Beneficiary must sign and date

                  INSERT THE ORIGINAL SIGNED IRS FORM 8821 FOR EACH FINANCIAL
                  BENEFICIARY INCLUDING THE DEVELOPER, IN THE ORIGINAL COPY OF
                  THE CONSOLIDATED FUNDING CYCLE APPLICATION

    For the purposes of this form, a Financial Beneficiary is defined as any party with a financial benefit of 10
    percent or more from the proposed project. This includes, but not be limited to, the General Partner and in
    certain cases where the financial benefit is 10 percent or more, the developer and/or contractor.




2012 Consolidated Funding Cycle Application                                                        Page 266 of 286
                                              Form 8821

    Please use the most recent form 8821 and IRS instructions as posted at the following
    link: http://www.irs.gov/pub/irs-pdf/f8821.pdf . The form is attached below for reference only




2012 Consolidated Funding Cycle Application                                         Page 267 of 286
                               Low Income Housing Tax Credits
                                      CFC Application
                                Request to Use 130 percent Basis Boost


Project Name:


Date of Application:

Projects requesting a boost to their eligible basis which are not located in a HUD determined DDA/QCT,will
need to submit this completed form. Applicants should carefully read page 10 of the Amended 2012 QAP,
OHCS Basis Boost Policy, before completing the request.

The form must be included in the LIHTC Supplemental Forms section of the CFC application for initial
consideration in a completed state. It will be reviewed during the CFC application review process. Should
the application receive a reservation of funds, the applicant will be notified at that time whether the request to
use the 130 percent basis boost has been granted.

Please check all that apply (X):

                The project meets the State’s definition of a preservation project.

                The project’s target population serves permanent supportive housing goals.

                The Project is located in an area where workforce housing needs are identified in the OHCS
                Needs as a Number One Priority in the current or prior year’s CFC Application


                The project is located in a Transit Oriented District (TOD); or an Economic Development
                Region (EDR as designated by the local jurisdiction; or the project is located in an
                empowerment/enterprise zone or Public Improvement District (PID). Applicants must
                provide documentation in support of the project’s location if any of three above apply.




Explain why the use of the boost is needed for this project. Describe the financial assumptions you have
made for the project and compare these with and without the boost. What will the boost help you
accomplish from a financing perspective? Please note that a request for the state’s basis boost will not
automatically result in additional credits being awarded to your project.




For comparison purposes in evaluating the financial feasibility with the boost, please, attach Sources
of Funds and Tax Credit Calculation Page which do not incorporate the boost assumptions.




2012 Consolidated Funding Cycle Application                                           Page 268 of 286
                                    OHCS Determination
                                    (To be completed by OHCS)

         Project Name:

Request to Use the State’s Basis Boost is:       Approved__________
                                                    Denied__________




Notes:




 (to be signed by OHCS)

Signed by:

Title:

Date:




2012 Consolidated Funding Cycle Application                        Page 269 of 286
PART 16 - LOW INCOME WEATHERIZ ATION PROGRAM (LIWP)
LIWP WORD FORMS SUBMITTED WITH APP.: PAGES 296-298

LIWP SPREADSHEETS: In the LIWP SUPPLEMENTAL FORMS



Introduction

LIWP Funds support energy conservation measures in affordable housing projects. Applicants may
apply to LIWP Funds to upgrade existing eligible areas of rehabilitation projects or to exceed
energy codes on new construction.

The purpose of the LIWP funds is to reduce energy use and heating costs for low and lower-
income (60 percent of area median income and below) Oregonians through energy conservation
measures. Energy-efficient appliances and Energy Star Compact Fluorescent Light fixtures are
eligible conservation measures for these funds.
Restricted Availability of Low Income Weatherization Program Funds

For 2012, OHCS will award $700,000 in LIWP funds. Projects located in PGE and PPL service
areas will be eligible. Other restrictions apply depending on the type of fuel used for heating and
the weatherization activities planned.
 “Will Serve” Letter

All applications for LIWP funds must include a “will serve” letter from the electric utility showing that
the proposed site is in PGE or PPL territory. The letter must be on PGE or PPL letterhead, identify
the project address and clearly state the utility will provide electrical service to that site/project.

Applications missing the “will serve” letter in the LIWP section of the application will not be eligible
for LIW funds.
Terms

Applicants may request one dollar of LIWP funds for every projected kilowatt-hour saved during the
first year. OHCS will award the LIWP funds as grants unless the applicant requests a loan.

The maximum award is the lesser of the cost to complete eligible weatherization work or the total
first year energy savings. OHCS may award grants or loans in excess of $100,000 on an as-
needed basis and when the applicant can demonstrate maximum energy savings. All awards are
subject to funds availability and approval of the State Housing Council.

The LIWP program targets households with low- or very-low incomes. At least half of the units in
the project must serve households with incomes at or below 60 percent of the area median income
(adjusted by family size) as defined by HUD. Applicants must keep the units affordable to the
target households for a minimum of 10 years, or the proposed affordability term at time of
application. OHCS will disburse funds only after the county records an executed Project Use
Agreement.




2012 Consolidated Funding Cycle Application                                   Page 270 of 286
Eligible Applicants

Eligible applicants include for-profit businesses, local government entities and nonprofit
organizations including, but not limited to, cities, counties, housing authorities, nonprofit community
organizations, regional or statewide nonprofit entities and private individuals or corporations.
Eligible Projects

Projects must meet all of the following requirements as well as the requirements of the
Consolidated Funding Cycle process. Take the CFC Weatherization Eligibility Quiz at the end of
this program section.
OHCS will consider the following kinds of applications

New construction projects that exceed energy code minimums for insulation, lighting and windows
and/or that include new energy efficient appliances and fixtures.

Acquisition/rehabilitation projects specifying upgrades from original levels of insulation, windows,
and lighting, and/or that include new energy efficient appliances and fixtures. Measures must meet
all current codes.
Ineligible Projects

OHCS will not award LIWP Funds when the only planned rehabilitation activities are weatherization
measures. Applicants of such projects should instead contact the local community action agency
for weatherization assistance.
Demonstrated Energy Savings

Eligible activities for these funds must demonstrate measurable cost-effective energy conservation.
Energy-efficient applications must show first-year savings of equal to or greater than one kilowatt-
hour saved for each LIWP dollar spent on the measure. The cost-effective calculation will be
determined for each project. Measures within a project can be considered individually or as a total
project package.

Example: Attic insulation improves from R-6 to R-38 at a cost of $850 and produces 2200 kilowatt
hours in first-year energy savings. This measure is cost-effective, because it saves 2.59 kilowatts
for each dollar spent.
Eligible Activities for Rehabilitation and Construction

Rehabilitation Projects: LIWP Funds may pay for labor and materials on all or part of the following
activities for existing projects that involve rehabilitation and repair work:

Only if the development is electrically heated can LIWP funds pay for:

Installation of attic, floor and wall insulation on existing structures (shell measures).

Repair of air leakage or air flow through the dwelling (including chase ways) that may cause
structural damage.




2012 Consolidated Funding Cycle Application                                    Page 271 of 286
Upgrading windows from single pane to double pane. (Windows are generally not sufficiently cost
effective to justify their entire expense unless packaged with other weatherization measures on a
project.)

Installation of electric heating systems, including heat pumps.

Installation of Energy Star-rated Compact Fluorescent Light (CFL) fixtures.

The cost of energy audits and pre- and post-rehabilitation energy inspections.

Upgrades, including some appliances (refrigerators, water heaters, washers and common-area
lighting) above OHCS minimum base-load measures. To determine energy savings, use the CFC
WX calculator and the manufacturer’s calculations or an Oregon Department of Energy approved
energy savings calculation tool.

Cost of new energy-efficient appliances. To determine energy savings, use the CFC WX calculator
and the manufacturer’s calculations or an Oregon Department of Energy approved energy savings
calculation tool. Please keep all Energy Guide information and/or appliance stickers, as these
documents will be requested for verification of energy savings.

Installation of electric heating systems.

Green building technology such as solar additions and heat recovery systems with verifiable
energy savings.
Ineligible activities

OHCS does not allow the use of LIWP for the purchase and installation of oil or gas-fired devices
(or for work related to those devices).

New Construction Projects: Fewer activities are eligible for LIWP funds in electrically heated new
construction projects. Funds may pay only for the cost involved in energy conservation measures
that exceed those required under building and energy codes for new construction. Based on first-
year kilowatt-hour savings, a new construction project can use LIWP funds to pay for all or part of
the difference in cost between energy conservation measures required by the Oregon Residential
Energy Code and the cost of the above-code upgrade.

Cost difference for upgraded attic, floor and wall insulation.

Cost difference for upgraded electric heating systems.

Cost difference for upgraded windows.

Cost of new energy-efficient appliances. To determine energy savings, use the CFC WX calculator
and the manufacturer’s calculations or an Oregon Department of Energy approved energy savings
calculation tool. Applicants must keep all Energy Guide information and/or appliance stickers, as
OHCS will require these documents to verify energy savings.

Green building technology such as solar additions and heat recovery systems may be eligible if
savings can be verified.

Installation of Energy Star Compact Fluorescent Light fixtures.



2012 Consolidated Funding Cycle Application                                Page 272 of 286
Application Submittal, Energy Analysis and Inspection Requirements

Applicants must submit the following with the CFC application:

A copy of the new construction or rehabilitation Energy Efficiency Plan Worksheet.

A copy of the CFC WX Calculator demonstrating energy savings if the proposed weatherization
work includes envelope measurements and appliances.

Use an approved DOE evaluation tool to evaluate weatherization measures not listed on the CFC
WX Calculator. Applications must include the energy analysis with the CFC application to be
eligible for the funding. The energy analysis must identify each planned energy conservation
measure and the annual energy savings that it will generate measures. An independent third party
trained to use the evaluation tool must complete the energy analysis. This may include energy
consultants, engineers, architects, HVAC specialists or a weatherization representative of the local
community action agency. Include the name and organization of the individual who completed the
analysis.

For rehabilitation projects, analyze a representative number of units to develop the proposed scope
of weatherization work and conducting the energy analysis.

 OHCS requires a post-rehabilitation or new construction inspection and certification by an
independent third party to verify satisfactory completion of the proposed energy measures. (The
independent third party can be an energy consultant, or a weatherization representative of the local
community action agency, or architect not associated with the project. The person or organization
that performed the work cannot conduct this inspection/certification). OHCS will only disburse full
LIW funds after it receives the inspection report and certification, Find the certification form at:
www.ohcs.oregon.gov/OHCS/HD/HRS/LIWX/CertWXProjCompletion.doc.

Low Income Weatherization funds may pay the cost of obtaining an energy analysis and
inspections as long as adequate energy savings are demonstrated.

A grant or loan award may be reduced if the amount of LIWP funds requested exceeds the actual
energy savings identified by the energy savings analysis.
Energy Analysts

OHCS keeps a list of qualified Energy Analysts who can help applicant’s complete LIWP
worksheets and calculators. This list is located at:
www.ohcs.oregon.gov/OHCS/HD/HRS/LIWX/WXContactList.doc.

The compilation of this list does not imply that the State of Oregon or OHCS endorses or
recommends any particular contractor, nor does it imply the selection of any contractor is any
guarantee of project feasibility or receipt of funding. This list is NOT an all-inclusive list of qualified
energy analysts or energy technicians.

OHCS can review any analysis in the LIWP application as well as the qualifications of the preparer.




2012 Consolidated Funding Cycle Application                                     Page 273 of 286
Recommended Inspections

OHCS suggests applicants conduct an infiltration / air leakage test before and after rehabilitation.
This test identifies areas of air infiltration / leakage to correct during the rehabilitation to maximize
energy savings of conservation measures performed. A post-rehabilitation infiltration test would
measure the reduction in air leakage.
OHCS Contact

For more information or technical assistance with the CFC WX Calculator or the LIWP Program,
contact the RAD for the area in which the project is located.




2012 Consolidated Funding Cycle Application                                     Page 274 of 286
                     CFC Low Income Weatherization Fund Eligibility Quiz

(Submit with CFC Application)

1.     Is the CFC project new construction?                  If yes, go to #5

                                                             If no, go to #2

2.     Is the CFC project rehabilitation?                    If yes, go to #5

                                                             If no, go to #3

3.     Is the CFC project both new and rehab?                If yes, go to #5

                                                             If no, go to #4

4.     Is the CFC project weatherization only?      Weatherization only projects are not CFC
       eligible. Contact the local community action agency or natural gas or fuel oil vendor.

5.     Is the project served by PGE or PPL?          If yes, go to #9, $700,000 is available this
       round. If no, no LIW are available for the 2011 CFC.

6.     Is the project served by PacificCorp?                 If yes, Sorry, no money this round.

                                                             Go to #8

7.     Is the project served by another utility?             If yes, Sorry, no money this round.

                                                             Go to #8

8.     Sorry. No funds in CFC are available.                 Contact the local community action
       agency.

9.     Is the project all electric?                          If yes, go to #10

                                                             If no, go to #11

10.    All electric projects are eligible to apply for envelope measures, appliances, and Compact
       Fluorescent Light fixtures.

11.    If the project is not all electric, the only eligible weatherization measures are appliances and
       CFL fixtures. Envelope measures (doors, windows, insulation etc.) are not eligible.
       Applicants may also want to contact the local community action agency, or natural gas or
       fuel oil vendor for envelope measures.

      Review the following LIWP forms and submit all that apply to the proposed CFC project.




2012 Consolidated Funding Cycle Application                                    Page 275 of 286
Energy Efficiency Plans

LIW Program funds are available for energy efficiency improvements on projects submitted for
funding through the CFC. For new construction projects, all work must exceed the minimum
required by the local or Oregon Residential Energy Code. For existing housing, funds may be used
to bring current conditions up to code. Energy efficient appliances and energy saving lighting may
also be eligible uses of the funds. The following outlines the current Oregon Residential Energy
Code:



                   Building Components

                   Maximum Allowable Window Area                   No Limit

                   Window Class                                    U=0.35

                   Exterior Doors                                  U=0.20

                   Wall Insulation                                 R-21

                   Under floor Insulation                          R-30

                   Flat Ceilings                                   R-38

                   Vaulted Ceilings                                R-38

                   Skylight Class                                  U=0.60

                   Skylight Area                                   <2 percent

                   Basement Walls                                  R-21

                   Slab Floor Edge Insulation                      R-15

                   Forced Air Duct Insulation                      R-8

It is highly recommended all applicants refer to the Oregon DOE website for accurate code
requirements and qualifying appliances and applications: http://www.energy.state.or.us/.




2012 Consolidated Funding Cycle Application                               Page 276 of 286
 Describe all the energy efficient measures proposed for this project.




Calculating Energy Savings

To assist in completing the Energy Efficiency Plan worksheets, OHCS has developed two
spreadsheets (calculators) for calculating energy savings for new construction and rehabilitation.
These calculators are located at:
www.ohcs.oregon.gov/OHCS/HD/HRS/LIWX/WXCalculator_NewConst.xls or

www.ohcs.oregon.gov/OHCS/HD/HRS/LIWX/WXCalculator_Rehab.xls. Applicants may choose to
use this tool or any other U.S. Department of Energy (DOE) approved tool. The calculator in this
application is designed for most weatherization activities. It reflects the kWh savings for the first
year.

It is recommended applicants contact an energy consultant if they are unsure of weatherization
measures that need to take place in the proposed project construction or rehabilitation. A listing of
possible contractors for Weatherization application assistance can be found at:

www.ohcs.oregon.gov/OHCS/HD/HRS/LIWX/WXContactList.doc.

The compilation of the above-referenced list does not imply the State of Oregon or OHCS
endorses or recommends any particular contractor, nor does it imply the selection of any contractor
is any guarantee of project feasibility or receipt of funding. This list is NOT an all-inclusive list of
qualified energy analysts or energy technicians. OHCS reserves the right to review any analysis
submitted with the Weatherization application as well as the qualifications of the preparer, when
application forms have been completed by an outside independent third party.




2012 Consolidated Funding Cycle Application                                  Page 277 of 286
                              Rehabilitation Worksheet Instructions

Proposed R/U Value: Refer to the Manufacturer's Info Tag

Increased R/U Value: Difference between existing and proposed R/U Values

Square Feet:           Square footage (footprint) of the total conditioned area to be weatherized.

Cost:                  Labor and materials for weatherization activities only.

For appliances, the cost of the appliance only

For CFLs, cost of installed Energy Star approved pin-based fixtures and lamps.

Energy saved:          From Excel "CFC WX Calculator Spreadsheet" provided on the website.

Analysis:     The OHCS goal is to allow Weatherization funding of one dollar for every kilowatt
hour (kWh) saved the first year or the cost of installation, whichever is less.
Appliances

REFRIGERATORS 1) must be metered (10 percent sample required of each type in a multi-family
complex). OR 2) supply usage value from refrigerator usage reference available in the CFC WX
spreadsheet of each type of refrigerator within the units

CLOTHES WASHERS must be 8 years or older for eligibility in replacement. Supply annual usage
of the model in kWh and use the calculator. See instructions.
DISHWASHERS must be 8 years or older for eligibility requirements. Supply annual usage of the
existing and proposed model in kWh and use the calculator. See instructions




2012 Consolidated Funding Cycle Application                                 Page 278 of 286
                            New Construction Worksheet Instructions

Code or Minimum Standard: On windows, insulation, etc., self-explanatory. On appliances and
Energy Star Compact Fluorescent Lighting fixtures (CFLs), applicants should use normal rating
from the yellow tag (energy guide) on the appliance or manufacturer's information and subtract the
baseline KWh usage to determine savings.

Proposed R or U-Value       On anything rated in U-values, a lower number is better. R-values
must exceed code to increase energy savings. U / R values are the reciprocal of each other.

Square Footage         Total only the conditioned area that is improved. Square footage is not
applicable for appliance calculations.

Increased Cost:        Includes the labor and materials for weatherization activities only.

For appliances, it is the cost of the appliance only.

For CFLs, it is the cost of installed Energy Star approved pin-based fixtures and lamps.

Kilowatts Saved:      Applicants should use the CFC WX spreadsheet or any DOE approved tool
to forecast the energy savings.

Appliances                     REFRIGERATORS must be new. The kWh can be found on the
                               energy guide for the appliance
                               CLOTHES WASHERS must be new. The kWh can be found on the
                               energy guide for the appliance.
                               DISHWASHERS must be new. The kWh can be found on the energy
                               guide for the appliance.




2012 Consolidated Funding Cycle Application                                  Page 279 of 286
                        WX Worksheet Instructions (Excel spreadsheet)

For electrically heated units, shell measures must be calculated in kWh savings.

Insert information into the BLUE cells only, when entering data into the CFC WX calculator.

CFC WX Calculator:

Project Name:          Insert name of project

Location:              Insert street address and city

Degree Days/Design Temp: These are the heating degree days for the climate location of the
project. By selecting the geographic region from the drop down box, the degree days and design
temperature will automatically change to coincide with that area.

Salem area =           4740 degree days/design temp 22

Redmond area =         6746 degree days/design temp 6

Portland area =        4693 degree days/design temp 22

North Bend area =      4664 degree days/design temp 32

Medford =              4803 degree days/design temp 23

Astoria =              5250 degree days/design temp 29

Pick an area closest to your located project and apply.

Air Heat Capacity:             Leave as is. Worksheet will not allow changes

Project Volume:       Remember, volume is square foot time’s height. Applicants can do the entire
complex or one unit of each type depending on design differences, as long as each unit is
represented and modeled.

If the entire complex has units that are all the same, then applicants can do one unit in the
calculator and multiply the savings by the amount of total units OR do the whole facility as one unit.
If there are multiple buildings and each one is different design the applicant will need to run the
calculations on each building.

Heat Pump:      Please insert "1" if a heat pump exists (rehab) or is being proposed. “0” is the
default.

Component: These are the measures this tool can consider. If there are other measures, i.e.
GFX systems, solar systems or heating recovery systems, etc., another DOE approved tool will
need to be used.

Area: Total square footage of project.

U-Values:       Existing and Proposed values must be indicated in U-values. U-values and R-values
are related in that they are a reciprocal of one another. R-Values can be added together. U-
values are numbers needed for the calculator. Applicants can convert R-values to U-values by 1/R

2012 Consolidated Funding Cycle Application                                  Page 280 of 286
(1 divided by R). Example: The R-value of the batt of insulation is R-19. The U-value of this would
be 1 divided by 19=.052. Therefore the U-value is .052. When entering the U-values, only round to
the thousandth position.

Table of Values:              Worksheet will not allow the numbers or formulas to be altered.

Totals:                       Will be displayed via category and total in KWH’s at the
                              bottom.

For more information or technical assistance with the CFC WX workbook spreadsheet or the Low
Income Weatherization Program, contact the RAD for the area in which the project is located.




2012 Consolidated Funding Cycle Application                               Page 281 of 286
    PART 17 - OREGON AFFORDABLE HO USING TAX CREDIT
                    PROGRAM (OAHTC)
OAHTC FORM SUBMITTED WITH APP.: Page 287

Introduction

The 1989 Oregon Legislature created the Oregon Affordable Housing Tax Credit (OAHTC)
Program. Under the OAHTC Program, OHCS has the authority to certify tax credits for projects.
Through the use of tax credits, lending institutions are able to lower the cost of financing by as
much as 4 percent for housing projects programs. Only fixed-rate financing will be eligible for this
program. In exchange for this tax credit, project tenants get lower rents for each dollar of credit
taken by the bank (unless it is a preservation project). This is a project-specific requirement based
on the credits taken by the bank or designee. The amortization of interest in the loan taken by the
bank will vary each year. The reduction to tenant’s rents will be averaged over 20 years to provide
the same tenant reduction to rent each year by the owner/borrower.

Applicants proposing the use of OAHTC to acquire a rate reduction in the permanent financing will
need to provide two sets of Pro forma. One set is to include the OAHTC before and after showing
the required pass through. The second set is to show how the project will remain financially
feasible if a lender is not secured using the OAHTC as permanent financing and what additional
source will be used to fill any resulting financing gap. Applicants may also need the OAHTC benefit
to keep project rents at similar affordability levels.

Program Requirements

Applicants must demonstrate in writing that the benefits of the projects’ reduction of interest are
passed onto the tenants in its entirety. This benefit is reviewed at initial application or purchase
and throughout the term of the credit, benefiting households at 80 percent or less of the area
median income level. (See the exception to this requirement below)

Exceptions

If the project is a preservation project, no pass through of interest savings to tenant is required. A
preservation project is existing affordable housing, currently financed by HUD or RD and has a
contract for rental assistance from HUD or RD on at least 25 percent of the units in the project. The
requirement to pass the interest savings on to the tenant is waived. The project must still meet all
other funding program requirements. Rental assistance provided must be maintained by the
qualified borrower for the term of the tax credit. Preservation projects must meet income
qualifications for the tenant.

For manufactured dwelling park, no pass through is required, and there is no income qualifications
required.

OAHTC must be used to lower rents after all other OHCS subsidies and requirements for rents
have been applied. A project utilizing other OHCS programs must meet the minimum requirements
of those programs, and meet OHCS underwriting parameters, before OAHTC will be considered.
For example, if an applicant applies for LIHTC and indicates they are targeting 60 percent median
income rents, the application must show the project is financially feasible at the targeted 60


2012 Consolidated Funding Cycle Application                                  Page 282 of 286
percent median rents without the OAHTC subsidy. The project should have a positive cash flow
before the interest savings passed to the tenant is applied to rents.

The OAHTC subsidy will then be applied to reduce rents. This subsidy, which in effect is the
savings generated by the lower interest rate, must be passed through directly to the tenants in its
entirety. However, such pass through need not be distributed evenly among the units. Some units
may receive more of a reduction than others, subsequently driving those rents down to even
deeper levels. After OAHTC is applied, the rents for all units receiving the OAHTC subsidy must
be less than the market rate rent for comparable units in the general market area. OHCS’
preference is that post-OAHTC rents are at least 10 to 20 percent less than the comparable market
rents.

If OAHTC is requested but not received, project rents must be at or below the area’s comparable
market rents to obtain an award of any other department resources.

The applicant is required to submit two income statements in the pro forma; one showing the
project's rents at the targeted levels with financing at market lending rates and one showing the
project's targeted rents reduced by the amount of interest savings generated by the lower interest
rate on the financing. The Expense Statement should not change with the exception of reflecting
the reduced debt service.

A letter from the lender indicating its willingness to participate in the OAHTC program must
accompany the application. The lender will be required to submit an annual report with a fee equal
to 5 percent of the tax credits claimed for the prior calendar year by the banking entity. It is very
important for applicants to understand that a few lenders are currently not currently participating in
project loans for this tax credit subsidy.

Term

Tax credits may be claimed to reduce Oregon tax liability for a period not to exceed 20 years,
reduced to the term of the loan if less than 20 years.

Eligible Applicants

An eligible OAHTC applicant is a borrower who is a nonprofit corporation, state, or local
government entity including, but not limited to a housing authority, which may be a controlling
general partner in a limited partnership. An applicant may be any person including a nonprofit/for-
profit or local government entity, but not limited to a housing authority, that enters into restrictive
covenants regarding the rents on the property and eligibility of occupants.

Eligible Beneficiaries

This program serves low-income households earning less than 80 percent of the area median
income as defined by HUD. In the case of manufactured dwelling parks, there are no income
qualifications. This area median income will be further capped by other OHCS grant subsidies as
required by LIHTC, HOME, Trust Fund, and Low Income Weatherization. Rental units covered by
Section 8 Project Based Assistance (PBA), or other project based rental assistance, are not
eligible to be used to demonstrate pass-through savings for the Program. If the project has at least
25 percent of HUD or RD project based assisted units, no pass through is required.


2012 Consolidated Funding Cycle Application                                  Page 283 of 286
Additional Program Requirements

A letter of intent from a qualified lender is required before a conditional commitment of tax credits
in the form of a reservation will be made. This letter should contain, at a minimum, the following:
amount of the loan; rate and terms; specific conditions pertaining to the project; and a statement
indicating what the sponsor would need to do to advance the letter of intent to a commitment. It
must state clearly the lender is willing to participate in the OAHTC program.

A firm commitment of financing from a qualified lender is required before a final commitment of tax
credits in the form of a Certification will be made. At this point, pass-through of the tax credit to the
tenants will be re-checked before a certification is released. Applicants should be prepared to
provide the spreadsheet pro forma pages to the OHCS loan officer to demonstrate pass-through
compliance for applicable projects. Also, the applicant must verify that the interest rate is correct
for the certification amortization schedule and notify the loan officer if the interest rate or bank
entity has changed.

The borrower must execute restrictive covenants to be recorded at the time of permanent loan
closing. If not a preservation project or manufactured park project a final check of pass-through
rents will be performed. If the applicant has not provided updated pro forma pages, OHCS may
request the borrower to provide forms for review before loan closing. A Declaration of Restrictive
Covenant will be provided for recording after needed pass-through analysis is completed at the
time of loan closing.




2012 Consolidated Funding Cycle Application                                   Page 284 of 286
                          Loan Information (OAHTC Applicants only)

NOTE: Every OAHTC applicant must complete this page

Project Name:______________________________

Lending Institution:______________________________________________

       Address:__________________________________________________

       City/Zip___________________________________________________

       Telephone:________________________________________________

       Loan Officer_______________________________________________
Loan Details

       Date of loan application:______________________________________

       Proposed loan amount:_________________$_____________________

       Portion of loan covered by OAHTC_______ $_____________________
Market Lending Rate Terms:

       Interest rate:_______________________________________________

       Number of years to amortize:__________________________________

       Number of years until due in full:_______________________________

       Monthly payment amount:_______________$____________________
Reduced Rate Terms:

       Interest rate:__________________________ percent______________

       Number of years to amortize:__________________________________

       Number of years until due in full:_______________________________

       Monthly payment amount:_______________$____________________


Projected Average Loan Balance/Yearly Tax Credit Amounts

Attach a letter from the lender indicating the lender’s willingness to participate in the OAHTC
Program unless that is provided in the letter of intent. The lender must provide a projected average
loan balance and the projected yearly OAHTC amounts for twenty years of participation.

    Total tax credit reflected in above information:   $________________




2012 Consolidated Funding Cycle Application                                Page 285 of 286
CFC APPLICATION GENERAL REMINDERS
Before completing the forms, thoroughly read the program requirements pertaining to the particular
resource, as understanding the program is vital when integrating each funding source into the
project development.

Any program an applicant applies to may have additional forms specific to the program – make
sure to check the Supplemental HOME, LIHTC, LIWP and OAHTC forms on the web page.

Complete and submit all of the supplemental forms for each funding source the application is
requesting.

Follow the order of the Application Submittal Checklist completely and accurately.

Make sure to provide all requested material in the order indicated on the Checklist.

Submit only the documents which are listed on the Application Submittal Checklist.

Use divider tabs to identify each Part.

Number every page of the application: including all attachments, maps, and charts.

When answering narrative questions, do not remove the question, question number, or the box
provided.

Keep responses within the stated length and font size limits.

Do not double-space the text responses.

Always mark the project’s location on maps and context photos.

Identify acronyms used by the applying organization.

Answer questions completely. Do not assume the reader is familiar with the organization or project.

Double-check that each copy of the application includes all the same documents as the original.

Do not use a medium to dark as a fill color on pro forma.




2012 Consolidated Funding Cycle Application                                Page 286 of 286

				
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