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DCA EXPERIENCE THRESHOLD REVIEW.ppt

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DCA EXPERIENCE THRESHOLD REVIEW.ppt Powered By Docstoc
					             2005
    APPLICATION WORKSHOP

             Georgia Department of
               Community Affairs




              Presented by the Office of
                 Affordable Housing
1
    1. Project Feasibility &
    Conformance with QAP

       LIHTC Policies
       HOME Loan Policies
       Rental Charts
       Utility Allowances
       Appraisals




2
    1. Project Feasibility &
    Conformance with QAP



         LIHTC Policies




3
                         LIHTC Policies
       Assumption for land purchase
         – Identity of Interest between buyer/seller: appraisal required
       Building Basis
         – Lesser of sales price or appraised value of building(s)
       Contractor Fee Limitation
         – Overhead: 2%* (Construction Contract Amt. - Contractor Fees)
         – General Requirements: 6%
       Includes Letter of Credit fee in lieu of payment & performance bond
         – Builder’s Profit: 6%
       Construction Contingency
         – New construction: 2%-5% of construction hard cost

4        – Rehabilitation: 5%-7% of hard cost
                              LIHTC Policies

       Relocation Budget
       Compliance Monitoring Fee
         – Based on Total # of Units (not just Low Income Units)
       Maximum Developer Fee Limitation
         – New construction/Rehab only:
                 15% (TDC* - DF - Land - Builder’s Profit**)
         –   Acquisition & Rehabilitation:
               Acquisition: 15% building acquisition cost
               Rehab: 15% (TDC* - DF - Land - Bldg. Acq.- Builder’s Profit**)

         –   Consultant Fee: No Limitation, but considered part of Developer Fee
    * TDC limited to Unit Cost Limitations prior to any approved cost waiver
5   **When Identity of Interest exists between Developer & General Contractor
                         LIHTC Policies

       Tax Credit Percentages: for application purposes
         –   Competitive: Credit percentages for April 2005
         –   Non Competitive (TEB financed): Credit percentage for the month
             preceding application submission
       BMIR HOME Funding & QCT
         –   40-50 Rule: Requirement met on a building by building basis
         –   “9% credit”: not eligible for 30% basis boost
       Per Unit Cost Limitation
         –   Waiver due 3/1/05


6
                        LIHTC Policies

    Sources of Funds:
       Terms tie back to documents (including government financial
        assistance)
       Housing Credit Equity
       Deferred Developer’s Fee
        –   Must be payable within 15 years from cash flow
        –   Not considered in GAP method of credit calculation




7
                              Rent Issues
       Fair Market Rents w/ HOME
       Types of Employee Occupied Units
         –   Common space:
                 No Rent can be charged
                 Must be occupied by employee
                 Employee does not have to be income qualified
         –   Residential unit
                 Low-income unit: rent charged, must be occupied by an employee who is income
                  qualified
                 Market rate unit: rent charged, no income or rent restrictions on employee resident

       Public Housing units: tax credit/HOME cannot be used for public housing
        units except in mixed income projects.

8
                     Utility Allowance

       Utility Allowance
        –   USDA
        –   HUD
        –   Public Housing Authority / DCA
        –   Utility Provider allowances for electricity




9
               Operating Expense Budget

        Minimum Annual Operating Expense Requirements
          – Urban:                                  $3,000/unit
          – Rural County w/USDA funding source:     $2,400/unit
          – Rural County w/out USDA funding source: $2,600/unit
        Operating Expense Waiver: due by March 1, 2005 or submit with
         Application.
          –   Note: if not approved, may result in project failing Threshold Requirement
              for Feasibility

        Replacement reserve
          – New Construction:                                    $200/year per unit
          – Rehabilitation:                                      $300/year per unit
          – Single Family:                                       $400/year per unit
10
                      Operating Pro Forma
        Trending
         –   Income:                                      2%
         –   Expenses and Replacement Reserves:           3%
         –   Vacancy& Collection Loss:                    7%
        Debt Coverage Ratio
         –   First year: 1.15 - 1.35
         –   Tax Credit projects: no less than 1.15 for each year during 15 year
             compliance period
         –   Tax Credit & HOME projects: no less than 1.15 for each year during
             compliance period, period of affordability, or HOME loan term,
             whichever is longest
11
                    Project Feasibility for
                    Scattered Sites
        Scattered Site Projects
         –   DCR requirements must be met by the project as a whole




12
     LIHTC Policies




     Question and Answer




13
         1. Project Feasibility &
         Conformance with QAP



               HOME Policies

     Additional Policies Applicable to HOME
                 Funded Projects

14
         Eligible DCA HOME Loan Costs

        New Construction – any project that includes the addition of
         dwelling units outside the existing walls of a structure is
         considered new construction
        Rehabilitation – the improvement or modification of an existing
         structure
        Reconstruction – refers to rebuilding, on the same lot, where
         housing is standing at the time of project commitment
          – The number of units on the lot may not change as part of the
             reconstruction project, but the number of rooms per unit may
             change


15
                Non-Amortizing Loan -
                  Excess Cash Flow
        1/2 of the Excess Cash Flow (income after secured debt service
         payment) Deposited in Account (Excess Cash Flow Account)
        Used for Principal Reduction of HOME loan and Capital
         Improvements
        Disbursements Require DCA Prior Approval
        Funds Must Remain in Account until HOME Loan is Paid in
         Full




16
                 Non-Amortizing Loans -
                  Future Market Value
        Outstanding Loan Balance at Maturity must be less than the
         Projected Appraised Value at Maturity
        DCA Commissioned Appraisal Projects the Future Value of the
         Development
        Interest and a Portion of Principal must be repaid in Each Year
         of the HOME Loan




17
            Interest Rate Exception for
            Projects in Rural Counties
     If necessary to maintain project viability:

        Years 8-15 Interest Rate may be less than 1%, but may not
         fall below 0.5%

        Years 16-Maturity Interest Rate shall not fall below 0.25%




18
             HOME Loan/Construction
                 Contingency
        DCA funds allocated to Contingency
        DCA approves all change orders
        Unused contingency used to reduce Senior Loan or HOME
         Loan




19
     Construction Hard Cost Financing

        Site Development
        Unit/Building Construction
        Contractor services
        Builders overhead
        Builders profit
        HOME CHDO Pre-development Loan
        Construction Bridge Loan is part of the financing package
        HOME loans cannot be used to refinance or pay off an
         existing loan

20
                           Conversion

        24 months of HOME loan closing
        Loan Agreements will set conversion date




21
         Developer Overhead and Consultant fee
         (Drawn During Construction)

        Lesser of 20% of the Maximum Allowable Developer Fee, or
        50% of the Total Developers Fee Requested
        Developer Profit (80%) can not be disbursed prior to HOME Loan
         Conversion
        Disbursement Condition reflected in HOME Loan Agreement and
         Other Funding Source Agreements




22
                  Identity of Interest
     Owner/Contractor, Developer/Contractor
      Third Party Front End Analysis Required
      Commissioned by DCA during Underwriting
      Contractor Services must be reasonable as determined by DCA
     Owner/Provider of Other Service
      Three Bids during Underwriting
      Services must not exceed amount ordinarily paid
      DCA will determine reasonableness




23
                     Syndicator Asset
                     Management Fees
        Paid - “After DCA Debt Service”
        Paid - After Excess cash Flow Payment




24
              Operating Deficit Reserve

        No less than 4 times the secured monthly debt service plus no
         less than 4 months projected operating expenses
        Funded at or prior to conversion
        Held by DCA or Senior Lender
        Required for Term of HOME Loan or Period of Affordability,
         whichever is longer
        Withdrawals must be Approved by DCA and Requested in
         Writing



25
                  Partnership Agreement

        Must Reflect Terms of HOME Loan
        Executed Prior to HOME Loan closing




26
                        Payment and
                     Performance Bonds

        Required on all Developments (100% bond required on all
         developments)
        Include the cost of Payment and Performance Bond in 6%
         General Requirements




27
                      Payment and
                   Performance Bonds

     Identity of Interest
      Letter of Credit (LOC) or Construction Loan (CL)
      LOC - at least 50% of Construction Cost including Profit and
        Overhead
      Construction Loan - Amount equal to DCA Construction Loan
      DCA will disburse $2,500 per Draw Request
      Include the cost of LOC or Construction Loan in 6% General
        Requirements




28
                      Payment and
                   Performance Bonds

     Waiver Process
      Waiver Request must be submitted with Application
      DCA Waiver (Form O-3)
      Tab 2 Application Binder




29
          Disclosure of Lobbying Activities
                 (Byrd Amendment)

        Each Owner who expects to receive a HOME loan in excess of
         $150,000 must certify that the funds will not be used to lobby
         Congress
        Submittals
          – Certification for Contracts, Loans and Cooperative
            Agreements (Form B-4)
          – Applicant/Recipient Disclosure/Update Report (Form B-6)




30
          Disclosure of Lobbying Activities

        In addition, if an owner uses non-federal money to lobby
         Congress, the owner must submit a Disclosure of
         Lobbying Activities Form SF-LLL (Form B-5)




31
          Disclosure of Lobbying Activities

        Developers, contractors, subcontractors (including architects,
         engineers and other consultants) who receive federal funds in
         excess of $100,000 for any HOME activity must disclose
         lobbying activities
        Submittals
          – Certification for Contracts, Loans and Cooperative
            Agreements (Form B-4)
          – Applicant/Recipient Disclosure/Update Report (Form B-6)
          – Owners are responsible for meeting submission
            requirements


32
          Disclosure of Lobbying Activities

        All forms are located in the HOME manual and @
         www.dca.state.ga.us/housing/rentalfin.html:
        Submit disclosure forms in Tab 18 of Application Binder




33
     HOME Loan Policies




       Question and Answer




34
     1. Project Feasibility &
     Conformance with QAP



           Rent Charts




35
                       Rent Charts

        Low Income Units with No PBRA
        Low Income Units with PBRA
        Non LIHTC Units with PBRA
        Market rate units
        Project Summary by Unit Rent Types




36
     Low Income units with No PBRA

        Unit rent and income type
               30/50/60
        PHA Units – investment plus operating subsidy
        Employee Units
        Program Max Unit Rents
               LIHTC/HOME
        Proposed Unit Rent (can’t exceed Program rent)
        Utility Allowance
        Unit Rent to Collect

37
                           PHA Units

        Operating subsidy should be entered in the non occupancy
         based income part of the Other income sources section
        Unit Rent to Collect should be reflected as 0




38
         Low Income Units with PBRA

        PBRA type: HUD, PHA, USDA and Governmental
        PHA: investment/PBRA
        Unit rent and income type (LIHTC)
        Program max Unit rent (LIHTC/HOME)
        Proposed unit rent
        Unit rent to collect
        Proposed unit rent without PBRA




39
         Non LIHTC Units with PBRA

        Used in rehabs
        Tenants with income in excess of 60% less than 80%
        Not market units because of PBRA units
        Not tax credit because of income




40
                    Project Summary

        Rent Type (LIHTC limitation)
        Project configuration/project summary




41
      Rent Charts



     Question and Answer




42
     1. Project Feasibility &
     Conformance with QAP



            Appraisals




43
                            Appraisals
          (applicable to LIHTC and/or HOME Projects)

        All appraisers must be certified by the Georgia Real Estate
         Appraisers Board and participate in continuing education
        The appraiser should have at minimum, five years experience
         in a combination of affordable housing and multi-family
         projects
        Appraisal Manual located in Section I of the Application
         Manual




44
                       Appraisals

     All HOME Projects
      Commissioned by DCA or Senior Lender during Underwriting
      Senior Lender Commissioned Appraisals must meet DCA
        Requirements as defined in the Appraisal Manual
      DCA’s Cost of Appraisal Passed to Developer
      If project does not meet DCA requirements, funding may be
        revoked




45
                        Appraisals

     Applicant Commissioned Appraisals required when there is
       an Identity of Interest between Purchaser and Seller
        Appraisal Commissioned by Applicant
        Appraisal must meet DCA Appraisal Manual Requirements
        “as is” Value Required

     Scattered Site Projects:
      Appraisal for each non-contiguous Parcel is Required




46
                    Appraisal Guidelines
        Values - “Tax Credit”, As is” (Land and Building), “As
         Complete” (encumbered and unencumbered)
        Value at Maturity of Loan (Non-Amortizing HOME Loan)
        Favorable Financing Value




47
     Appraisal Guidelines




       Question and Answer




48
     1. Project Feasibility &
     Conformance with QAP



         Utility Allowance




49
                    Utility Allowance

      USDA
        – Building with USDA must use USDA Allowance
        – Tenant with USDA assistance must use USDA Allowance
      HUD Regulated Buildings (such as Section 8 or 236)
        – Must use utility allowance reviewed by HUD annually
      Tenants with Section 8 Assistance
        – Must use the Local PHA Utility Allowance that administers
          the Section 8 Program.
        – This allowance must be approved for use by HUD for use in
          the Section 8 Voucher /Housing Choice Program.
50
                     Utility Allowance

        Buildings with DCA HOME and Tax Credits
          – All utility allowances except electricity must use Local PHA
            Utility Allowance that administer the Section 8 Program
          – This year TWO options for electricity allowance:
               May use the Local PHA Utility Allowance that administer
                the Section 8 Program
              OR
               Utility Provider/DCA Energy Simulation Allowance for
                electricity (APPLAUSE PLEASE)

51
                      Utility Allowance

     Using the Utility Provider/DCA Energy Simulation Allowance
      Step 1
        –   Listing of Qualified Electric Providers can be found at
                              http://www.psc.state.ga.us

        –   Let your architect know that you will be taking advantage of
            this option and forward a copy of the DCA Project Data
            Specification Form as early as possible.


52
                      Utility Allowance

     Using the Utility Provider/DCA Energy Simulation Allowance
      Step 2
        –   Contact Provider to determine if they have an approved
            energy simulation system or can obtain access to one.
        –   Submit the required documentation for DCA and approval.
        –   DCA will review the materials and issue a letter of approval
            to the Utility Provider.
        –   If the Provider should choose to use a consultant the Provider
            must submit the required materials to DCA for review.
        –   Applicant cannot go directly to a consultant. The Utility
53          Provider must deal directly with a consultant.
                     Utility Allowance
      Using the Utility Provider/DCA Energy Simulation Allowance
      Step 3
        –   Once the Energy Simulation has DCA’s approval, the Project
            Data Specification Form must be complete and accurate
        –   Using this data, the Utility Company will prepare allowance.
        –   Utility Providers provide DCA with a copy of the allowance and
            a listing of all Applicants who received an allowance.
        –   Utility Providers will provide the allowance to the Applicant.
        –   Applicant will place the Utility Provider Allowance and Project
            Data Specification form in the application.
54      –   Don’t forget about other utilities: gas, water/sewer and trash.
                       Utility Allowance
     Using the Utility Provider/DCA Energy Simulation Allowance
      Step 4 - Ongoing Compliance
       –   Utility Provider must review the Utility Allowance and Project Data
           Specification Form when last building is placed in service.
       –   Updated allowance based on actual usage must be submitted with the
           property’s second year Annual Owners’ Report and Certification.
           The Project Data Form must also be submitted. This will be required
           on an annual basis based on actual usage.
       –   Utility Provider must perform update within 90 days of any rate
           change, fuel cost change, tax change or similar change.
       –   Must use this utility allowance for the entire Compliance Period.
       –   Will involve work for both the Compliance Staff and the Utility
55         Providers….
     Utility Allowance




      Question and Answer




56
     1. Project Feasibility &
     Conformance with QAP



         Question and Answer




57
         2. Site Control Requirements

        Warranty deed that conveys title to the subject property to the
         current Applicant
          or
        a legally binding contract to purchase the proposed project site in
         the name of the Applicant (or which provides for an assignment
         to the Applicant)
          or
        a binding long-term ground lease or an option for a binding long-
         term ground lease, with a minimum term of forty-five (45) years.



58
          2. Site Control Requirements

        Contract must be executed prior to application submission date

        Must include a legal description

        Must provide legal control at least through September 15, 2005




59
     2. Site Control Requirements




            Question and Answer




60
                     3. Environmental

     All environmental matters must be resolved in a manner
     satisfactory to DCA

     Every  Project application must prepare a Phase I Environmental
     Site Assessment and include it in the application (See Tab Checklist
     #4)

     For  Scattered Site Projects, each parcel must meet this threshold
     requirement


61
           Phase I Requirements

        Must be prepared by an Environmental Consultant
        Must be prepared in accordance with DCA
         Guidelines
        Must be conducted within 6 months of the
         Application Submission
        Previous environmental studies must be included
         in the application
        Must contain proof of insurance

62
             Environmental Consultant
     DCA defines a Environmental Consultant as:
        a Professional Engineer ("P.E.") or
      a Professional Geologist ("P.G.") who is licensed to practice
     engineering or geology, respectively, in the State of Georgia.
      The P.E. or P.G. must be an employee or principal of the
     environmental consulting firm retained to complete the
     environmental assessment.
       The Environmental Consultant must have at least five (5) years
     of experience conducting and/or reviewing environmental
     assessments.
63
         Additional Environmental Issues

        WETLANDS
         –   DCA does not allow the disturbance of wetlands areas on the
             property in excess of 1/10 of one acre
         –   DCA does not allow the disturbance of any areas of wetlands
             adjacent to the property
         –   All areas of wetlands must be clearly documented with the
             appropriate maps
         –   All areas of disturbance must be clearly defined
         –   Additional requirements for documentation applicable to
             properties applying for HOME funds and will be discussed
             later this morning
64
         Additional Environmental Issues

        FLOODPLAINS
         DCA does not allow the placement of any new construction within
         a floodplain unless:
          – A FEMA Letter of Map Reclassification (LOMR) indicating
             the property is eligible for reclassification out of the floodplain
             is submitted
          – City or County provides written approval of the proposed
             reclassification
          – All floodplain areas must be clearly documented with the
             appropriate FEMA maps
          – Additional requirements for documentation are applicable to
             properties applying for HOME funds and will be discussed
             later this morning
65
         Additional Environmental Issues

        FLOODPLAINS
         The rehabilitation of existing buildings within a flood plain will
         meet threshold if:
          – All existing flood plain areas are clearly documented with the
            appropriate FEMA maps
          – The lowest existing floor elevation is at least 6” above the
            FEMA documented flood plain elevation
          – The application is for Tax Credits only and no HOME funds
            are to be part of the application


66
         Environmental Form Requirements

        OAH Form E-1 (all applications)
          – Applicant/Engineer Environmental Certification

        OAH Form E-2 (all applications)
          – Owner Environmental Questionnaire & Disclosure Statement

        OAH Form E-3 (all applications)
          – Property Log & Information Checklist

        OAH Form E-4 (HOME applications)
          – HOME Environmental Documentation


67
              Insurance requirements

        Environmental Consultants must carry insurance that
         provides full coverage for all work performed.

        The certificates must be submitted with the required Phase
         I environmental review during the Application process.




68
                Minimum Coverage

        Commercial General Liability Insurance with limits of
         $1,000,000 per occurrence and $2,000,000 in general
         aggregate
        Professional Liability Insurance with limits of
         $1,000,000.00 each claim and $1,000,000.00 in the
         aggregate




69
                  Common Mistakes
        Improper Certificate of Insurance
        Insufficient or no title search
        Not a DCA environmental consultant
        Failure to follow format
        Not prepared within six months of application date
        Failure to include previous environmental study
        Failure to include all applicable OAH forms




70
     HOME Additional Environmental
           Requirements
     All HOME Applications must include additional documentation to
     satisfy the HUD requirements.
     See Environmental Manual and complete OAH Form E-4 HOME
     Environmental Documentation for the required information (See Tab
     Checklist #4):

      Sound Requirements
      Wetlands Development
      Floodplain Development
      Historic Requirements
      Other Hazards

71
           HOME Environmental Sound
               Documentation

        Locate major road/highway, railroad or airport
      Complete HUD sound calculations and the Noise Assessment if
     sound levels exceed HUD average day/night levels (65db for outside
     and 45db for inside)
      Provide a mitigation plan for all identified noise exceeding HUD
     average day/night levels
      Provide documentation on sites investigated as options to the
     proposed property


72
              HOME Environmental
              Floodplain Development
     In addition to the floodplain documentation previously discussed,
     HOME applications must also include:
      Engineer must provide a mitigation plan and sites investigated as
     options to the proposed property
      FEMA must have already issued a LOMA or LOMR, and these must
     be included
     Provide required notices from the Floodplain Management
     Requirements, 8 step process (24 CFR 55.20 Executive Order 11988)
       Engineer must provide a statement on the impact of the development
     if it is adjacent or near to a floodplain
73
                 HOME Environmental
                 Wetlands Development

     In addition to the wetlands restrictions and documentation previously
     discussed, HOME applications must also include:

     Engineer  must provide mitigation plan and documentation on sites
     investigated as options to the proposed property

     Providerequired notices from the Wetlands Management
     Requirements, 8 step process, (24 CFR 55.20 Executive Order 11990)

     Engineer   must provide a statement of the impact of the disturbance if it
     is adjacent or near to a wetlands area
74
                 HOME Environmental
                 Historic Requirements

        Is the property more than 50 years old

      Is the property listed on the Nation Register of Historic Places
     and are there Historic Credits applicable

      Documentation from the local SHPO office that the property is
     eligible and meets all requirements

      Engineer/architect must provide mitigation plan for the
     neighborhood
75
                  HOME Environmental
                    Other Hazards

        Industrial hazards must be identified

      Any   fire prone materials visible from or near to the site

        Property located near a dump or landfill

        Property located near an industry disposing of chemicals or
              hazardous wastes

        Property located near the end of a runway for a civil or
              military airport
76
     3. Environmental




     Question and Answer




77
                     4. Market Feasibility
        DCA recommends that, prior to submitting Applications, Applicants
         independently obtain a market analysis sufficient to satisfy their
         own concerns as to market viability.
      Applicants   are encouraged to submit any market information with
         the Application that they believe may be helpful in determining the
         market feasibility of their proposal.
      An Applicant    may submit an independent market study in the
         Application. However, DCA will not be bound by the opinion or
         conclusions reached by the Applicant-commissioned market study.
      Any    market information or market study provided by the Applicant
         will be given to DCA’s market analyst.
78
                         Market Feasibility

     Project feasibility as determined by the DCA market analyst will
     be based on, but not be limited, to the following factors:
      Market capture rates less than 30 percent for all LIHTC and Market units in
       the project,
      Market capture rates less than 70 percent for all units in each AMI income
       band width for the project,
      An absorption period less than 24 months to reach stabilized occupancy,
      Stabilized occupancy rate of 93% or above,
      Unit mixes or targets populations supported by the market,
      Competing proposed projects in the same geographic market area where, in
       part, location, unit mix, rent structure, market demand, and other factors
       favor one project compared to another.
      Ability of market rate units to lease at the projected rents.
79
                    Market Feasibility

      To assist in determining the effect of existing and new units on
     properties being proposed for development, analysts are now
     instructed to use a Comparability Analysis on those units
     included in the Market Supply. This will allow for a
     Comparability Factor to be assigned to each comparable
     property and a weighted average of the existing units will be
     included in the Market Supply number to be subtracted from
     Total Demand to achieve Net Demand.



80
                     Market Feasibility

      Units that are subsidized with PBRA or whose rents are
       more than 20% lower than the rent for other units of the
       same bedroom size in the same AMI band and comprise
       less than 10% of the total units, will not be used in
       determining project demand. These units, if priced 30%
       lower than the average market rent for the bedroom type
       in any income segment, will be assumed to be leasable in
       the market and deducted from the total number of units in
       the project for determining capture rates.

81
                       Retention Factor

        For existing occupied properties that are going to be
         rehabilitated, market analysts shall consider retention of
         current occupants in their demand calculations. Retention
         is measured by the number of tenants that are not rent
         burdened or over-income and the number of PBRA units.
         For Elderly projects, demand may include residents from
         outside the market area, seniors living with and/or
         supported by their children as documented by the market
         analyst.


82
                         Market Feasibility

     The analyst may also consider the following factors in
     determining demand from Elderly Households.

     •Seniors relocating from other areas outside the Primary or Secondary
      Market area.
     •Children subsidizing rents for their parents.
     •Seniors moving from their children’s homes whom they had been living
      with.
     •AMI for elderly developments will be limited to 2 person households
      regardless of the number of bedrooms per unit proposed.



83
                   Market Feasibility

     No adverse impact to the market and financial health of
     existing assisted rental housing properties in the market
     area. Assisted rental housing properties include those
     financed by Credits, USDA , HUD 202 or 811 (as
     appropriate), DCA or locally financed HOME properties,
     HTF, and HUD 221(d)(3) and 221 (d) (4) and other
     market rate FHA insured programs. DCA does not regard
     public housing as competitive with programs administered
     through the Plan; therefore, this policy does not apply to
     public housing properties,
84
     4. Market Feasibility



       Question and Answer




85
         5. Threshold Requirements

      Site Zoning
      Operating Utilities
      Project Amenities
      Site Access
      Physical Needs Assessments
      Site Information

86
                              Site Zoning
         Zoning to be confirmed in writing by the authorized Government
         Official which must include the zoning designation and land use
         classification of the property
        Documentation must be accompanied by a clear explanation of the
         designated zoning
         If there is no local zoning ordinances, a letter to that effect from the
         authorized Government Official
        The conceptual site plan must clearly demonstrate that all
         restrictions of the designated zoning have been met (See Tab
         Checklist # 5 & #11)
         For scattered site properties, each parcel must meet this threshold
         requirement
87
                      Operating Utilities

     All   operating utilities must be available to the proposed property
              as of the Application Submission
     All   easements necessary must be secured, and all commitments from
               the local utility providers must be secured as of the date of
               Application Submittal
     Any    easements and/or improvements must not be contingent on
              annexation of the property, improvements or any
              infrastructure funding due the local provider or authority
     All   easements and commitments must be documented fully in the
              application (See Tab Checklist #6)
88
                        Operating Utilities
        Operating Utilities include:
           – Water and sanitary sewer service
           – Stormwater Sewer (if in an area that has installed storm sewer
               system)
           – Electricity
           – Gas service
           – Telephone services
           – Television cable services as available

        Off-site costs for extension of utilities are not eligible for funding
               from DCA resources
        For scattered site properties, each parcel must meet this threshold
89             requirement
                      Required Amenities
     Basic threshold project amenities must include:
             – HVAC systems for each unit
             – Refrigerator and stove for each unit
             – On-site laundry (one washer and one dryer for each 25 units)
             – One equipped recreation area

      All   basic amenities must be available at no extra charge to the
               residents, with the exception of the on-site laundry
        Each tenancy characteristic may have additional basic requirements
     Basic amenities are certified on OAH Amenity Certification Forms
            D-3 – D-6, as applicable for tenancy type, i.e. Elderly, Family
            etc. (See Tab Checklist #20)
90   ALL applications must submit the appropriate Certification Form
           Project Threshold Amenities


      For scattered site 10(B)(1)(a) each parcel must include unit amenities,
     project as a whole must meet the requirements for laundry & equipped
     recreation area

      For scattered site 10(B)(1)(b) where parcels are located within a
     single neighborhood, the project as a whole must meet the requirements
     for the laundry & equipped recreation area

     ALL applications, both competitive and non-competitive, must submit the
     Certification Forms and include the basic requirements and upgrades in
91   the work scopes
     Site Access

     All sites proposed for development must be legally accessible by
     paved road.
     This does not apply to private driveways accessing only the proposed
     property.
     If such paved roads are not in place at the time of application
     documentation must be included in the application evidencing the local
     commitment for funding and the timetable for the completion of such
     paved road (See Tab Checklist #9).
        Must be indicated on OAH Site Information Form D-1
     For  scattered site properties, each parcel must meet this threshold
92   requirement.
             Physical Needs Assessment

     For  rehabilitation proposals only a physical needs assessment must
     be included in the application (See Tab Checklist #10)
     Rehabilitation proposals must be accompanied by a unit-by-unit
     work scope that reflects the information in both the physical needs
     assessment, the environmental site assessment, and the Certification
     Forms
     Work scope must include the findings from the Physical Needs
     Assessment and upgrades from the Certification Forms for ALL
     applications
     For scattered site applications, each parcel must meet this threshold
     requirement
93
              Physical Needs Assessment

        The rehabilitation must reflect an expenditure of at least $20,000
              per unit in construction hard costs
              – Refer to the Application Manual for the DCA requirements.
              – Must not be more than 90 days old at the time of application
              – Must be completed by a third party entity and include the
                       resume and the qualifications of that consultant
              – Note the sampling expectations included in the instructions
              – Forms included may be used or the consultant’s own format,
                       providing the same information is included
         The Certification Forms and Systems and Conditions Forms are
         included in the Architectural Manual and must be submitted for ALL
94       applications
             Physical Needs Assessment

       DCA requirements include replacement of all components existing on
       the property that have an Effective Remaining Life of less than five
       years must be included in the current work scope
      The completed property must exceed the life of the loan or other DCA
       funding source by five years
      No capital expenditure in the first 5 years with the exception of
       maintenance activities
      The Consultant and Design Team must complete the Physical Needs
       Assessment to meet DCA requirements
      For scattered site properties, each parcel must meet this threshold
       requirement
95
                         Site Information
     A conceptual site development plan must be submitted accompanied
     by the OAH Site Information Form D-1 (Tab Checklist #11)
        The conceptual site development plan should include:
          – Wetlands and floodplain areas
          – Utility information
          – Easements
          – Zoning restrictions and setbacks
          – Use of all adjacent properties and access from paved roads
          – Layout of all buildings, roads, parking areas and site amenities
          – Areas of tree and vegetation preservation

        For scattered site properties, each parcel must meet this requirement
96
     5. Threshold Requirements

        Question and Answer
            Site Zoning
            Operating Utilities
            Project Amenities
            Site Access
            Physical Needs Assessments
            Site Information


97
                          5. Accessibility

        All projects that receive allocations or funding under the Plan
         must comply with all applicable Federal and State accessibility
         laws
        Refer to the Accessibility Manual for the Applicability Chart for
         Accessibility Laws
        The basic requirements are to be included on OAH Accessibility
         Certification Form D-9, see Tab Checklist #27
        For scattered sites 10(B)(1)(a) & (b) each parcel must meet the
         accessibility requirements


98
                      Applicable Laws
                   and DCA Requirements

        Federal Fair Housing Act (FHA)
        Section 504 of the Rehabilitation Act of 1973
        American with Disabilities Act (ADA)
        State Accessibility Laws
        DCA QAP Requirements - 5% of the units equipped for the
         mobility impaired and an additional 2% of the units equipped
         for the hearing/sight impaired
        The most restrictive law shall prevail



99
     Americans with Disabilities Act
               Applicable to areas of public accommodation

        Curb cuts at sidewalks and entrances
        Designated accessible parking spaces
        Wide doors, minimum 32” clearance
        Telephones and drinking fountains lowered
        Tactile markings on elevator control buttons
        Levered door hardware
        Wider toilet stalls with installed grab bars
10      Braille and/or large print signage.
0
            Fair Housing Act (FHA)

        Applicable to common use areas on a property
        Applicable to buildings with 4 or more units
        Accessible building entrance on an accessible route
        Accessible route into and through the dwelling units
        All exterior facilities including mail areas, bus stops, sitting areas,
         trash compactors etc., to be located in accessible locations
        All site amenities must be accessible


10
1
                             Visitability

        Recommended DCA Practice
        Provide at least one accessible means of
         egress/ingress for each unit.
         –   Ex. No step entry into units including a 36” wide
             primary door
        Provide a 32” clear opening in bathroom and
         interior doorways
        Refer to Accessibility Manual and Fair Housing
10       Requirements for more information
2
         Section 504 of the Rehabilitation Act

        A minimum of 5% of the total dwelling units or at least one unit,
         whichever is greater, must be accessible for persons with mobility
         impairments

        An additional 2% of the units or at least one unit, whichever is
         greater, must be accessible for persons who have hearing or
         vision impairments

        Refer to the Act for additional requirements


10
3
         Georgia Accessibility / Single Family

        All single-family detached units a part of a
         multifamily project funded with HOME funds
         must meet the Act’s requirements
        Not applicable to LIHTC
        Section 504 requirements must be met
        See Accessibility Manual (Tab C) for additional
         details
10
4
            DCA Requirements

        DCA requires 5% of the total dwelling units or at least one unit,
         whichever is greater, must be equipped for persons with mobility
         impairments

        An additional 2% of the units or at least one unit, whichever is
         greater, must be equipped for persons who have hearing or vision
         impairments

        Required even if there is no federal funds in the project
10
5
      6. Accessibility




     Question and Answer



10
6
                7. Preliminary Financing
                     Commitments
        Threshold Criteria 16 / Application Binder Tab 12
        Required for each Funding Source
        Preliminary Commitment must include:
         –   Purpose
         –   Property Address
         –   Amount
         –   Interest Rate
         –   Terms and Conditions
         –   and Fees must be clearly documented

10      Formal Commitment due within 75 of days of Carryover Allocation
7
               Preliminary Financing /
             Assumption of Existing Debt

        Required Documentation
         –   Certification Letter as of April 30, 2005
         –   Copy of Promissory Note and Amendments
         –   Copy of Loan Agreement and Amendments
         –   Copy of Security Instruments (Deed)


        Threshold Criteria 16 / Application Binder Tab 12



10
8
                 Preliminary Financing

     • For Scattered Site Projects all units must be developed under
       one master plan of financing and considered as a single project
       by all funding sources.

     • The preliminary commitments must be applicable to the project
       as a whole for scattered sites.



10
9
     7. Preliminary Financing
          Commitments



        Question and Answer



11
0
                 8. LEGAL OPINIONS

        ELIGIBILITY OF PROJECT FOR ACQUISITION
         CREDITS




11
1
         ACQUISITION LEGAL OPINION

       Sample Legal Opinion in Manual
      Non tax credit properties
      - 10 Year rule
      -Related parties – include related parties interest in residual
        sales, cash flow and partnership allocations
      Expiring tax credit properties
       -15 year compliance experience has or will expire




11
2
      8. Legal Opinions


     Question and Answer




11
3
        9. Experience


      Requirements for Owners,
     Developers and Management
             Companies



11
4
                    Owner Experience

        Two multifamily rental projects
        3 continuous years of ownership experience
        Experience must have occurred subsequent to January 1, 1995
        Similar size project
        Direct or indirect ownership interest in previous project
        Material participation through regular, continuos and
         substantial involvement in previous project

11
5
               Developer Experience

        Successful development experience
        Two multifamily rental housing projects
        Similar size (number of dwelling units)
        Developer experience occurred subsequent to January 1, 1995
        Experience from project inception through project completion




11
6
              Management Experience

        Management experience in two multifamily rental housing
         projects of similar size (number of dwelling units)

        Manager’s experience must extend for at least two years and
         include project lease up experience

        Management experience occurred subsequent to January 1,
         1995

11
7
                       Entity/Principal

     Owner, Developer and management entities can meet the
      QAP experience requirements in one of two ways:

        Through the entity itself
        Through the experience of a principal of the entity




11
8
         DCA Definition of Principal

      Direct or indirect ownership interest in the ownership,
       development or management entity
      Material participation in project
      Regular, continuous and substantial involvement, or
      Executive director of a non profit




11
9
               Non Profit Experience

     A non-profit General Partner may also meet the experience
     requirements through the experience of a sponsoring non-profit.




12
0
                Options for Inexperienced
                 Owners and Developers
        Partnering with an entity who has the required Owner and/or
         Developer experience, or
        By providing an executed contract with a Consultant who has the
         required experience.




12
1
            Partnering/Consulting Contract
                    Requirements


      Executed agreement.

      The training plan must be attached to the agreement as an
       exhibit; and

      The training plan must be approved by DCA at its sole and
       absolute discretion.

      The Partner/Consultant must satisfy the Threshold
12     experience requirements for Owners and/or Developers
2
             Partnering/Consulting Contract
                     Requirements

      Relationship must be that of co-developers for developers
      The responsibilities of each party to the agreement for the
       development of the project must be described in detail
      The inexperienced entity must materially participate in the
       development process
      The training services must be provided from project
       commencement, through construction, lease up and permanent
       loan conversion and/or issuance of 8609’s, whichever is later


12
3
                 Consultant / Partnering
                    Training Guide
        DCA has a Manual to assist Inexperienced entities in preparing
         their training plans (see Tab M).




12
4
                               Waiver
        A proposed Project Owner, Developer or Manager that cannot
         meet the experience requirement set forth above may request a
         waiver of the DCA experience requirements (Forms P-1, P-2,
         and/or P-3 as applicable).
        Due Date - March 1, 2005.




12
5
            Submission Requirements

        Pre-application Submission / Application Submission for
         entities that have not been determined to be experienced by
         DCA since 2003
               Forms P-1, P-2, AND/OR P-3




12
6
      9. Experience




     Question and Answer



12
7
                   9. Award Limitations

        Applicants are permitted to submit a maximum of six
         applications
        Limitation is applicable to Ownership interests




12
8
            Maximum Ownership Interests

        Limited to combined federal Credit limit cannot exceed
         $1,750,000 and
        HOME funding cannot exceed 35% of total HOME loan
         resources for year




12
9
                              Exceptions

        Partner or consult with an inexperienced entity
        Serve as a Developer in a project
        Exception can only be used for two additional projects




13
0
                        Other Limitations

        Inexperienced owners and/developers that meet experience
         through partnering or consultant contracts are limited to one
         project




13
1
     9. Award Limitations




      Question and Answer



13
2
                     9. Eligibility for Non
                        Profit Set Aside

        The Internal Revenue Code requires that 10 percent of the total
         Housing Credit ceiling amount be available only to projects
         with qualified nonprofit participants and owners.

        In order to be included in the set aside, a project must meet
         certain IRS standards as well as DCA QAP requirements.




13
3
                           Requirements

        Be an organization recognized by the Internal Revenue Service as
         a 501(c)(3) or 501(c)(4) organization

        Validly exist and be in good standing

        Have an ownership interest in the project throughout the entire 15-
         year compliance period.

        DCA requires that the non profit own 51% of the partnership

        The non profit can own stock in a corporation that owns a low
13       income housing property, if the corporation is 100% owned by a
4        qualified non profit organizations
                          Requirements

        Meet the criteria defined as material participation in Treas. Reg.
         469(h)

        The non profit not be affiliated with or controlled by any for profit
         entity

        One of the exempt purposes of the nonprofit must include the
         fostering of low income housing.



13
5
                  Material Participation
        Nonprofit participates in the activity for more than 500 hours
         during the tax year.
        Nonprofits participation constitutes substantially all of the
         participation in the activity of all individuals (including non-
         owners) for the tax year.
        Nonprofit participates in the activity for more than 100 hours
         during the tax year, and its participation is not less than the
         participation of any other taxpayer for such year.
        Nonprofit activity is a significant participation activity for the tax
         year, and the taxpayer’s participation in all significant
         participation activities during the year exceeds 500 hours. A
         significant participation activity is one in which the taxpayer has
         more than 100 hours of participation during the tax year but fails
13       to satisfy any other
6
           Additional QAP Requirements

        If the non profit is also the developer of the project, the
         nonprofit must receive a percentage of the developer fee greater
         than or equal to its percentage of ownership interest.

        A copy of the general partnership joint venture agreement
         which indicates the non profits interest and developer fee
         amount must be included in the Application binder Tab 17.



13
7
                     Additional Facts

        Status of an organization can be confirmed using the
         IRS website www.irs.com and enter 78 in the Search
         IRS site.




13
8
     Required Documentation for Tab 17

        IRS Tax Exempt status determination letter
        Secretary of state certification of non profit status
        General partnership joint venture agreement
        Sample Legal opinion (form A-4)
        Documentation of non profits ownership interest
        Board of directors information
        Development agreement
        Bylaws
        CHDO prequalification, (if applicable)
13
9
             Frequently Asked Questions
     Q: Is a qualified non profit automatically eligible for the non profit set
     aside?
         –   A: Applicants must indicate in the appropriate box their desire to
             compete under the Nonprofit Set-aside.
     Q: Does the non profit have to have an interest in the Developer
     entity?
         –   A: Depends on the circumstances.
     Q: If the Non-Profit set aside is reached prior to an application filed
        under the non profit set aside being funded will such Non-profit be
        considered under the general pool?
14       –   A: Yes
0
     9. Eligibility for Non
        Profit Set Aside



      Question and Answer



14
1
     10. Additional HOME Requirements



         Additional HOME Requirements




14
2
                 10(b). HOME Site and
                Neighborhood Standards

        Applicants for HOME funding of new construction projects
         must determine if the project is located in an area of minority
         concentration, a racially mixed area, or a non-minority area

         A Minority concentration is an area that has 50% or more
            minorities

         A Racially Mixed area is an area that has 25% or more
            minorities

         A Non-Minority area is an area that has less than 25%
14          minorities
3
         Site and Neighborhood Standards

        Minority Concentration
           1.   Map of proposed project site
           2.   Site map of proposed neighborhood
           3.   Census track or enumeration district data of proposed
                neighborhood population by:
                 a. Household type
                 b. Tenure type
                 c. Income group and housing conditions
                 d. Race of residents
        Submit the above information in Tab 18 along with
14       Certification form B-1.
4
     Site and Neighborhood Standards

     4.   Narrative on how the percentage of minority residents is
          determined
     5.   List of sufficient, comparable sites outside area of
          minority concentration or market study evidencing that
          there is an overriding housing need in the area of minority
          concentration
     6.   Expected rents for units on site and comparable rates to
          other low income housing near comparable sites outside
          area of minority concentration
     7.   Number of HUD assisted units located outside of the area
          of minority concentration
14
5
         Site and Neighborhood Standards

        Special Considerations When Choosing            a   Minority
         Concentrated Area for Development:

         –   Must provide strong evidence/documentation that there is
             an overriding housing need in this area of Minority
             Concentration.
         –   DCA will be forwarding applications located in an area of
             Minority Concentration to HUD for review




14
6
         Site and Neighborhood Standards
         Racially Mixed Area

         1.   Map of proposed project site
         2.   Site map of proposed neighborhood
         3.   Census track or enumeration district data of proposed neighborhood
              population by:
              a. Household type
              b. Tenure type
              c. Income group and housing conditions
              d. Race of residents
         4.   Based upon the proposed number of units, show what increase of
              minority residents to non-minority residents will occur
14
         Submit the above information in Tab 18 along with Certification form
7         B-3.
         Site and Neighborhood Standards

        Non-minority
         1.   Map of proposed project site
         2.   Site map of proposed neighborhood
         3.   Census track or enumeration district data of proposed
              neighborhood population by:
              a. Household type
              b. Tenure type
              c. Income group and housing conditions
              d. Race of residents
        Submit the above information in Tab 18 along with
14       Certification form B-2.
8
         Site and Neighborhood Standards

     The Federal Regulations Compliance Officer is responsible for
     reviewing the information submitted by the applicant. The Federal
     Regulations Compliance Officer will certify to one of the three
     statements identified in the Certification of Compliance, HOME Site
     and Neighborhood Standards (See Forms Appendix).

                             Census Website:
                http://www.census.gov/geo/www/tractez.html


14
9
      10(b). HOME Site and
     Neighborhood Standards




       Question and Answer



15
0
               10 (c) Contract Addendum

     Uniform Relocation Act (URA) Requirement for Land
     Acquisitions
        Voluntary acquisitions are subject to the requirements outlined at 49
         CFR 24.101, as outlined in HUD’s implementing instructions found in
         Chapter 5 of Handbook 1378.
        The guidance explains the voluntary acquisition process for a buyer
         that has the power of eminent domain, but does not plan to use such
         power, and for a buyer that does not have such power.



15
1
                  Contract Addendum

     The URA requirement for the acquisition of property can be
       satisfied by the following actions:
      Pre-Contract Agreement (Form B-10) -- provided before making
       the purchase offer
      Right to Withdraw (Form B-11)
         – in cases where there is an existing option or contract
         or
         – Pre-Contract Agreement was not executed prior to the
            execution of the Sales Contract/Option
      Seller must be provided the opportunity to withdraw after the
15     Notice is provided
2
                     Contract Addendum

        Applicable to voluntary acquisitions of real property with the
         intent of procuring federal financing:
        1) Vacant Land
        2) New Construction
        3) Rehabilitation (occupied or not occupied)




15
3
                   Contract Addendum

                   Pre-Contract Agreement (Form B-10)
     In voluntary acquisitions subject to 49 CFR 24.101, the buyer
        must inform the seller in writing that:
      Buyer may use Federal Funds obtained from the U.S.
        Department of Housing and Development to acquire property
        owned by Seller.
      The buyer does not have the power of eminent domain and,
        therefore, will not acquire the property if negotiations fail to
        result in an amicable agreement; or,
15
4
                    Contract Addendum

        Any tenant legally occupying the property is eligible to
         receive relocation assistance and benefits as identified in the
         Uniform Relocation Assistance and Real Property Acquisition
         Policies Act of 1970, as amended.
        The buyer’s estimate of the fair market value of the property.




15
5
                    Contract Addendum

         Examples of Reasonable Evidence of Fair Market value

        Appraisal
        Letter from an Appraiser setting out fair market value (does
         not have to be a full appraisal)
        Letter of Real Estate Broker familiar with market estimating
         fair market value – (recent comparable sales should be
         attached)
        Documentation from Tax Assessors office as to value of
         property
15      The purchase price does not have to equal the Fair Market
         Price
6
                     Contract Addendum

     If the Applicant Fails to Give Notice
        Right to Withdraw Sample Letter (Form B-11)
        The Owner must be given the option to withdraw from the purchase
         agreement after receipt of the Notice




15
7
                    Contract Addendum

        If Notice is not given, Seller may be able to claim that the
         acquisition was involuntary and relocation assistance may
         be available to the Seller.
        All Notices must be personally served or sent by certified
         or registered first class mail.
        Documentation required under this section must be
         submitted to DCA at the application stage.
        Tab 18 Additional HOME Requirements

15
8
       10 (c) Contract
         Addendum




     Question and Answer



15
9
         10. (d) Contractor Cost Certification

     Requirements
        Contractors will be required to execute a Cost Certification
         (Forms B12, B13, and B15) as to the actual costs incurred in
         construction of the project.
        A Certified Public Accountant must perform the audit and issue
         an opinion letter in accordance with Generally Accepted
         Accounting Principals and Generally Accepted Auditing
         Standards and execute CPA Certification (Form B14).
        The Cost Certification will include an audit opinion letter from a
         CPA certifying the contractors actual cost.
        The DCA Cost Certification and audit opinion letter will be
16       required prior to release of final retainage.
0
             Contractor Cost Certification

     DCA Review
        The Certification and Audit will be reviewed by DCA staff who
         will determine the total actual allowable cost for construction.
        DCA Director of the Office of Affordable Housing and of
         Housing and Finance Division will review staff
         recommendations prior to release of retainage to ensure that
         goals of preventing Contractor windfall profits and that sources
         equal uses are met. DCA shall limit the sum total of all
         payments from all sources to the Contractor to the lessor of:
          – (1) the construction contract price as adjusted for change
             orders or
16        – (2) the total actual allowable cost for construction as
1            determined by DCA
             Contractor Cost Certification

     Adjustments
        If the Cost Certification and Audit of the actual construction
         costs finds that the Contractors actual costs are equal to or more
         than the budgeted cost and DCA concurs with that finding, no
         further action is necessary.
        If audit finds that Contractors actual allowable costs for
         construction are less than budgeted costs or DCA staff
         determines that the Contractor’s actual allowable cost for
         construction is less than budgeted costs, DCA has some
         flexibility in determining the action that should be taken.
         DCA has the ability under its change order process to approve
16       legitimate cost increases to the property up to the original
2        budgeted amount
             Contractor Cost Certification

     Adjustments
        Legitimate costs increases would include (but are not
         limited to)
          – material upgrades
          – Amenities that provide security such as lightning,
            fencing, etc.
          – Amenities designed to enhance the quality of life




16
3
              Contractor Cost Certification

        If the Difference between the budgeted costs and the actual costs are
         significant or extraordinary, DCA may determine that change orders
         cannot be utilized to correct the problem. In that event, the following
         actions may be taken by DCA to meet the above referenced goals:
          – DCA may determine that the reduction in costs will reduce eligible
             basis and will decrease the amount of tax credits by an amount
             sufficient to ensure that sources will continue to equal uses.
          – DCA may determine that the project HOME loan will be reduced by
             an amount sufficient to ensure that sources will continue to equal
             uses. (DCA HOME Loan documents have been revised to reflect
             DCA’s ability to make this revision subsequent to closing).
          – DCA may also approve an exception to its policy to only fund a

16           portion of hard costs and fund all hard costs or a portion of the soft
             costs if necessary, provided that the final sources and uses remain
4            equal.
             Contractor Cost Certification

        HUD and/or DCA shall have the right to audit the
         Contractor’s Certificate of Actual Cost for a period of five
         years from project completion and require the return of an
         overpayment from the owner/borrower.




16
5
             Contractor Cost Certification

     Construction Contract Requirements
      Each construction contract between the General Contractor and the
       Developer of a HOME project shall at a minimum contain the
       following:
        1. The sum total of all payments from all sources to the contractor
           shall not exceed the actual allowable cost for Construction as
           determined by DCA.
        2. HUD and/or DCA shall have the right to audit the Contractor’s
           Certificate of Actual costs for a period of five years from project
           completion.
        3. HUD and the Georgia Department of Community Affairs shall have
           access to the Contractor’s records for the project and for his/her cost
           certification for five years after project completion in order to
           conduct audits of project costs.
16    The General Contractor of each HOME project will be required to
6      execute the Contractor’s Cost Certification Forms.
     10.(d) Contractor Cost Certification




              Question and Answer



16
7
            11. Relocation and Displacement
                         Policies
     HOME applications, 9% Tax Credit applications and 4%Tax Credit
     applications
      All participants must ensure that all reasonable steps are taken to
        minimize displacement of persons (families, individuals, businesses, non
        profit organizations) as a result of the construction or rehabilitation of the
        project.
      Impact of proposed development and relocation on the tenants of a
        proposed project on the community will be reviewed in determining
        whether displacement can occur.
      Any displacement of existing residents is subject to GHFA’s approval.
      Relocation and Displacement Policies are outlined in Manual.

16
8
         Overview Relocation and displacement for
                 GA Tax Credit Projects

        Detailed project specific displacement and relocation plan
        Relocation Budget
        Explanation of efforts planned by Applicant to mitigate the impact of
         displacement and/or relocation
        GHFA requires owners to provide temporary relocation assistance to
         tenants that must move or which have a loss of use of their unit or a
         portion of their unit during the rehabilitation.
        Relocation/Displacement Spreadsheet must be kept through out
         rehabilitation process.
        Compliance will be monitoring and visiting properties.
16
9
         Overview Relocation and displacement for
                 GA Tax Credit Projects

     Temporary Relocation/30 Days
        When a tenant looses the use of a portion of his unit or his entire
         unit for a period of 30 days or less.
        Advisory services required.

     Temporary Relocation/Over 30 Days
        When a tenant looses the use of a portion of his unit or his entire
         unit for more than 30 days.
        Advisory services required
        If the tenant elects to temporarily relocate to a unit outside of the
17       immediate vicinity of the project, rent differential will be based on
0        comparable rents within the primary market area of the property.
         Overview Relocation and displacement for
                 GA Tax Credit Projects

     Tenants who remain on the property during the
     rehabilitation
        In place tenants must be offered a suitable unit at an affordable
         price when rehabilitation is complete.
        No increase in rent unit is considered affordable.
        In place tenants must be offered a one year lease at same rent
         paying prior to rehabilitation.


17
1
         Overview Relocation and displacement for
                 GA Tax Credit Projects

     Over Income Tenants
        Consider when structuring property.
        Place in Mkt. Rate Unit
        If permanently displaced before end of current lease Owner must
         agree to reimburse the tenant for the following
          – Tenant for moving expenses to a comparable site in same area
          – Pay for utility disconnect and reconnect
          – Pay difference between rent on original unit (per lease
             agreement) and comparable unit rent.
          – Advisory Services required (document).
17
2
         Overview Relocation and displacement for
                 GA Tax Credit Projects

     NEW
        Tax Credit General Information Notice (30 days after Award)
        Must document how each notice was delivered
        30 Day + 60 Day notice for tenant regarding any move
        Posters with GHFA contact (address and phone #) and Owner contact
         (address and phone #) must be posted in office and at each building.

     REMINDER
        Failure to follow the GHFA requirements for relocation and relocation
         assistance will be considered a major instance of non compliance.


17
3
          Displacement and Relocation for GA
                HOME funded Projects

      Uniform Relocation Assistance and Real Property Acquisition
                              Policies of Act of 1970
      Displacement as a result of
        – Rehabilitation
        – Demolition
        – Acquisition
      Protects all persons regardless of their income.
      Section 104(d)
      Protects low income person (under 80% of AMI) is eligible for
       assistance if unit occupies is demolished with HOME funds or the
17     person is displaced as a result of a HOME conversion.
4
           Displacement and Relocation for GA
                 HOME funded Projects

     HOME Regulations
        Notices and advisory services required outline in manual.
        Payments for relocation or displacement are also covered in
         manual.
        HUD Handbook 1378 covers the Federal Relocation requirements
        Protects all persons regardless of their income.
        Notice of Issuance of New Final Rule for URA (January 4, 2005)
        There are significant changes and all Applicants and Project
         Owners who receive HOME funding must carefully review this
         Rule.
17
5
                        Some of the Changes

        That any residential tenant who has been temporarily relocated for
         a period beyond one year must be offered all permanent relocation
         assistance. The rule also provides that temporary relocation for
         less than 12 months will be strictly construed to ensure that the
         relocation is not actually a displacement.
        Eviction for cause: an eviction related to non-compliance with a
         requirement to carry out a project (failure to move or relocate
         when instructed, or to cooperate in the relocation process) does
         not negate a person’s entitlement to relocation assistance and
         payments.
17
6
                       Some of the Changes

        Prohibit agencies from proposing or requesting a displaced person
         to waive their rights or entitlements to relocation and benefits
         provided by the Uniform Act and this regulation.
        Residential self moves cannot be based on the lower of two bids.
         They must be based on actual receipts.
        It also establishes a new category of eligible moving expense
         payments.
        Just some of the changes.


17
7
         Overview Relocation and displacement for
                 GA Tax Credit Projects

     TENANT DATA FORM
        All existing tenants complete Tenant Data Form
        Student Question added
        Special Accommodations Question
        Detailed analysis of existing tenant base
        Over-income
        Rent burdened (currently)
        Rent burdened (with new rents)
17
8
                       Things to Remember

        Notice Requirements.
        Overview in GHFA Manual.
        GIN Notice must be sent out prior to submitting the HOME
         application.
        Document method of delivery.
        HUD currently updating.




17
9
                       Things to Remember

        Required Application Documents
        All Tenant Data Certifications must be complete
        Displacement Plan and Budget
        Proof that all tenants at property applying for HOME were given
         the General Information Notice (GIN) prior to submission of
         application.
        Sample of Notice sent
        Rent rolls for 90 days (last 3 months)
        Relocation Displacement Project Spreadsheet

18
0
     11. APPLICATION REQUIREMENTS
            FOR RELOCATION




          Question and Answer



18
1
     12. Rental Access Network Certification




18
2
     www.rentalaccessnetwork.org
            (bottom of page)




18
3
     Property Manager Login




18
4
     ID Request Form




18
5
     ID Request Confirmation




18
6
     Rental Access Network (RAN)
              Main Menu




18
7
     Add or Edit a Property




18
8
     Add or Edit Accessible Unit




18
9
     Updated Property Menu




19
0
     Edit Another Property




19
1
     Additional Main Menu Options




19
2
     Transfer Properties




19
3
     RAN Search Screen




19
4
     Search Results




19
5
     Property Information as viewed by prospective renter




19
6
     Change Password




19
7
     12. Rental Access Network Certification



      Questions or Comments?


      Please contact RAN@dca.state.ga.us




19
8
     SECTION I End


       Enjoy lunch!




19
9
             SECTION II


     Welcome back from lunch. Please
     be seated we are about to begin.




20
0
     1. Project Locational Characteristics

     The application must include the following documentation (See
     Tab Checklist #11):
            Site Location Map
            Site photographs
            Conceptual site development plan
            OAH Site Information Form D-1
            OAH Site Certification Form D-2
            Transit documentation including endorsements, route
                   information etc.
            Historic designation documentation
20          Brownfields/Greyfields documentation
1
     Project Locational Characteristics

     Adjacent Residential Development                                  2 points

        Development must be adjacent to or directly across the street from
         the proposed site

        Must be stable occupied residential development

        Points available if the property is part of a larger parcel

        For Scattered Site projects each parcel must meet the requirements
20       to qualify for points allocation
2
         Project Locational Characteristics
      Desirable characteristics:    1 point for each to a maximum of 10
        – Non-rural sites must be within 1 mile walking/driving distance
        – On paved sidewalks or established walkways or trails
        – Rural site must be within 1 1/2 miles walking/driving distance
      Undesirable characteristics:           1 point deducted to zero
        – Within 1/2 mile of the proposed site both rural/non-rural
        – Properties with evidence of criminal trespass will be reviewed
             for commercial/non residential properties only

      For scattered site properties 10(B)(1)(a) the project will be scored
             as a whole
20    For scattered site properties 10(B)(1)(b) each parcel will be scored
3            and the total score averaged
      Project Locational Characteristics
     Quality Growth Initiatives                                 15 points

        Infill Sites:                                          5 points
           – Surrounded on all but one side by established development
           – Maximize use of existing utilities, infrastructure
           – Residential or retail development on one side


        For scattered site properties, each parcel must meet this requirement
         for points allocation

20
4
         Project Locational Characteristics
     Quality Growth Initiatives                                 15 points

        Community Transportation Options:                       2 points
          – Project formally designated as transit oriented by a Rapid Transit
          Authority, or:
          – project located on a bus route with a stop within ½ mile, or;
          – project located within ½ mile of a transportation roadway


     For  scattered site properties 10(B)(1)(a) & (b) each parcel must meet
     this requirement for points allocation
20
5
       Project Locational Characteristics

      Quality Growth Initiatives                                   15 points

      Adaptive Reuse, Historic Preservation, Brownfields/Greyfields
     Redevelopment:                                                  6 points
        – Project is the adaptive reuse of an existing building      2 points
        – Building is formally designated as an historic structure and
            historic tax credits are part of the application         2 points
        – Redevelopment of a brownfields site                        2 points
        – Redevelopment of a greyfields site                         2 points

20 For scattered site properties, each parcel must meet this requirement
   for points allocation
6
      Project Locational Characteristics
     Quality Growth Initiatives                                15 points

     Site Layout:                                               2 points
        – Parking located away from street                       2 points
        – Durable fencing at the site entry on street side of property
                                                                 2 points
     For scattered site properties, each parcel must meet this
            requirement for points allocation


20
7
     1. Project Locational Characteristics



              Question and Answer



20
8
         1 (a). Previous Projects within a
                 Local Government
       Please note correction in today’s package. Refer to Exhibit A to
                         Appendix II of the 2005 QAP.
     • 4 Points
             2005 Application is within a Local Government (city
             or unincorporated portion of a county) that is not on the
             attached list for 2002, 2003, and 2004.

     •   2 Points
             2005 Application is within a Local Government (city
             or unincorporated portion of a county) that is not on the
20           attached list for 2003 or 2004.
9
     1 (a). Previous Projects within a
             Local Government



            Question and Answer



21
0
              2. Tenancy Characteristics

        All Tenancy Characteristics must be certified on the OAH
         Certification Forms as is appropriate for each tenant base.
        ALL applications both competitive and non-competitive must
         certify to the basic threshold amenity requirements on the OAH
         Certification Forms D-3 – D-6
         ALL applications both competitive and non-competitive must
         certify to upgraded amenities as is appropriate for the tenant base of
         the property on the OAH Certification Forms D-3 – D-6
        ALL competitive applications must certify to the basic and optional
21       threshold services requirements on the OAH Certification Forms
1        N-1 – N-4
               Tenancy Characteristics

        Family Housing                                       22 Points
         Designed to foster the development of housing for families and to
         encourage community activities from within the neighborhood.

         1. Basic Requirements                               6 points
                OAH Amenities Certification Form D-3
         2. Optional Amenities                               1 -15 points
                OAH Amenities Certification Form D-3
         3. Optional Services                                1 - 3 points
                OAH Services Certification Form N-1
21
2
                Tenancy Characteristics

        Special Needs Projects
         For housing of the homeless, persons with disabilities (mental,
         developmental), abused spouses and their children, persons with
         alcohol or other drug addition, and persons living with HIV/AIDS
         (excluding Elderly Housing and Housing for Older Persons).

              1. Basic Requirements
                      OAH Amenities Certification Form D-4
              2. Required Amenities & Services
                      OAH Amenities Certification Form D-4
21                    Memorandum of Understanding for Services
3
           Tenancy Characteristics

                       Special Needs Projects

     >30% of the units but <35%             24 points
     >= 35% of the units but <40%           25 points
     >= 40% of the units                    26 points




21
4
                Tenancy Characteristics

        Elderly Housing                                           20 points

         1. Basic Requirements                            6 points
                     OAH Amenities Certification Form D-5
         2. Optional Amenities/Services                   1-14 points
                     OAH Amenities Certification Form D-5
                     OAH Services Certification Form N-3

     “Elderly Housing” means housing intended for and only occupied by Elderly
        persons including a family in which all members are Elderly (person at least
21      62 years of age). All household members must be Elderly (no children, and
        no disabled persons under the age of 62).
5
                   Tenancy Characteristics
        Housing for Older Persons                                                    20 Points
         1.Basic Requirements                              6 points
                      OAH Amenities Certification Form D-6
         2.Optional Amenities/Services                     1-14 points
                      OAH Amenities Certification Form D-6
                      OAH Services Certification Form N-4
         “Housing for Older Persons Definition,” means housing intended and operated for occupancy by
           person 55 years of age or older (“Older Persons”). According to Georgia law, such housing
           must also have significant facilities and services serving the Older Person population even
           though the requirement has been eliminated from the federal definition of an elderly project. At
           least 80% of the total occupied units in such a housing project must be occupied by at least one
           Older Person. Up to 20% of the units may be occupied by others, including the landlord’s
21         employees, the surviving spouses or children who were Older Persons when they died, and
           caregivers. DCA will monitor the required facilities and services during the applicable
6          Compliance Period or the Period of Affordability whichever is longer.
                Tenancy Characteristics
        For scattered site properties 10(B)(1)(a) parcels will be scored as a
         whole. Optional amenities and services must be evenly distributed
         across the parcels
        For scattered site properties 10(B)(1)(b) parcels will be scored as a
         whole where they are located within a neighborhood. Optional
         amenities and services must be evenly distributed across the parcels
        All applications must select amenity upgrades as indicated on the
         applicable OAH Certification Forms D-3 – D-6
        Applications must meet the basic requirements before points will be
         allocated for optional amenities and services
21
        See Tab Checklist #20 for documentation requirements
7
     Tenancy Characteristics



        Question and Answer



21
8
                       3. Additional Rent &
                         Income Elections
     Scoring Section 4 outlines the following requirements:
        4A: Public Housing Authority Development and Operating Rental
         Subsidy                                       - 15 points
        4B: Very Low Income & Rent Restrictions       - 6 points
        4C: Project Based Rental Assistance           - 18 points
        4D: Very, Very Low Income & Rent Restrictions - 8 points
        4E: DCA PBRA-Special Needs Tenants            - 2 points
        4F: Mixed Income Projects                     - 4 points
        4G: Extension of cancellation option period   - 3 points

21   For scoring purposes, no double counting of same units under this section
9    Scattered site project - scoring based on project as a whole
            PHA Investment and Operating
               and/or Rental Subsidy
     Executed agreement between PHA & Project ownership
       entity
       –   Development subsidy: type, term and amount of investment
       –   AND Operating and/or Rental Subsidy: operating cost contributions
           or project-based tenant rental subsidy
              Minimum 5 years
              Number and type of rental units exclusively for public housing
               tenants
       –   10% of units w/ operating subsidy or rental subsidy AND investment
           of 5% of the total project hard cost                 5 points
       –   20% of units w/ operating subsidy or rental subsidy AND investment
           of 10% of the total project hard cost                10 points
22     –   30% of units w/ operating subsidy or rental subsidy AND investment
0          of 15% of the total project hard cost                15 points
                      Project Based Rental
                           Assistance
        PBRA – HUD, PHA or USDA
         –   Executed agreement: minimum 5 years & 10%
             of total units
               For USDA, include the amount of rental assistance
               For HUD or PHA, include the contract rent
               Number of units assisted
               Duration of assistance
               Terms/conditions

22       –   For existing HUD PBRA contract:
1              Extension   may be contingent upon LIHTC funding
                 PBRA – HUD, PHA or
                       USDA
     –   Minimum 5 years & 10% total units
              >=10% but <20%                 5 points
              >=20% but <30%                 6 points
              >=30% but <40%                 7 points
              >=40% but <50%                 8 points
              >=50% but <60%                 10 points
              >=60% but <70%                 12 points
              >=70% but <80%                 14 points
              >=80% but <90%                 16 points
              >=90%                          18 points

22
2
                       Project Based Rental
                            Assistance

        Other Governmental PBRA (Non-HUD, USDA, PHA)
          – Executed agreement: signed by COO of funding entity
                 Dollar Amount of Rental Assistance
                 Minimum term of 5 years
                 Tenant pays 30 % of income
                 Tenant selection plan for rental assistance
        Points based on percentage of: annual rental assistance divided by
         total potential gross annual rental income:
              >= 4% but < 8%                  4 points
              >= 8% but < 12%                 5 points
              >= 12% but < 18%                6 points
22            >= 18% but < 25%                7 points
3             >= 25%                          8 points
             Very Low-Income & Rent
                   Restrictions
        Rent*:        <= 50%
        Income:       >30% - 50%
        Scoring based on:
          – Applicable set-aside:
               40-60 tax credit minimum set-aside only
               20-50 tax credit minimum set-aside only
               40-50 Rule applicable (LIHTC and HOME)
          – Percentage of Total Nbr of Units @50% AMI Rent divided by
             Total Nbr of project units
        Rent/Income restriction - land use restrictive covenant (for longer of
         Compliance Period or Period of Affordability)
22
     * PBRA may be claimed only if points are not claimed under PBRA AND
4       the rents are set at 50% AMI level
             Very, Very Low Income/
                Rent Restrictions
      Rent*:                        <= 30%
      Income:                       <= 30% AMGI
      Scoring based on Total Number of Units at 30% AMI Rent as a
       percentage of the Total Number of Units:
           >3% up to 6%              2 points
           >6% up to 10%             4 points
           >10% up to 15%            6 points
           >15%                      8 points
      Rent/Income restriction - land use restrictive covenant (for longer
       of Compliance Period or Period of Affordability)
22
     * PBRA may be claimed only if points are not claimed under PBRA AND
5       the rents are set at 30% AMI level
                    DCA PBRA for Special
                       Needs Tenants
        Agreement to designate lesser of 10 units or 5% of total units by
         checking the box provided on the application:     2 points




22
6
               Mixed Income Projects

        Total market rate units divided by total residential units:

             >10% thru 20%                  2 points
             >20% thru 30%                  3 points
             >30%                           4 points




22
7
     Extension of Cancellation Option /
          Tenant Ownership Plan

        Agreement to forgo cancellation option
          – 1 point for every 5 years (3 points max.)


        Plan for tenant ownership
          – 1 point




22
8
                                   4. Preservation

     Scoring Section 5
      LIHTC projects (maximum 10 points):
          –   6 points if Credit Period ended (after Year 10)
          –   10 points if eligible to opt out w/a Qualified Contract (after Year 14)
          –   Documentation required:
                  Partnership tax returns for 1st and last year
                  IRS Form(s) 8609
                  Eligibility to opt out with a Qualified Contract (if claiming 10 points)
        USDA Projects (max 6 points):
          –   Documentation from USDA
                  4 points if High Priority
                  3 points if Medium Priority
22                2 points if Low Priority
                  With documentation from USDA, some USDA 515 projects may be eligible for
9                  2 additional points
                                Preservation

        HUD Projects (max 6 points):
          –   Documentation from HUD
                  4 points if High Priority
                  3 points if Medium Priority
                  2 points if Low Priority
                  With documentation from HUD, some HUD projects with project based
                   Section 8 contract, Section 236 program, or 221(d)(3) BMIR program may be
                   eligible for 2 additional points

        Other affordable housing projects (2 points)
          –   Documentation evidencing the rent and income restrictions or a current
              rent roll from the subject property must be submitted

23       NOTE: HUD and USDA will make their own priority designations
0        and provide any necessary documentation to the Applicant.
                          Preservation

        For Scattered Site Projects, as defined Section 10(B)(1)(a) and
         (b) of the Plan, any non-contiguous site may meet the criteria in
         order to claim points.




23
1
       Preservation




     Question and Answer



23
2
                     5. Local Government
                           Support
        Adopted Resolution of Support
        Local Government understands the proposed project. At minimum
         the type of project, the number of units and the specific location
         must be identified
        The resolution must clearly express the Local Government’s
         support of the proposed project
        Letter of Support and resolution (Tab 24)
        If the local government is governed by one elected official (as
         specified in Charter), a letter in lieu of resolution must be
         submitted
        a letter in lieu must be in the form provided by DCA
23
3
     Government Financial Assistance
     Two types of Financial Assistance
      The Local Government funds on site project development costs or
       operating cost by funding the project with HOME, CDBG funds,
       or other financial resources in the form of loans, grants or a
       combination hereof, or through its actions creates a quantifiable
       reduction of on site project development cost or operating cost.
      USDA, AHP, DCA HOME Loan or other governmental
       assistance/funding obtained by the Applicant for the on-site project
       development costs or operating cost and is in the form of loans,
       grants, or a combination thereof.
23
4
     Government Financial Assistance

        NO OTHER DOCUMENTATION NEED BE SUBMITTED
         FOR DCA HOME LOANS




23
5
     Government Financial Assistance

                     Project Development Examples

        Waiving Water and Sewer Tap Fees

        Waiving Building Permit Fees

        Foregoing Real Property Taxes

        Contributing Land for Project Development
23
        Below Market Rate Financing
6
                  Government Financial
                       Assistance

                        Project Operating Examples

        Abatement of Real Estate Taxes

        Operational Cost Subsidies




23
7
         Government Financial Assistance

        Reductions in annual operating costs must occur in each of the
         first 10 years

        Operating cost reductions for less than this 10 year period will
         not be eligible for points under this section




23
8
     Government Financial Assistance
        For contributions from the jurisdiction and/or actions by the
         jurisdiction which create a quantifiable reduction of on site
         project development cost or operating cost, documentation
         from the Local Government in which the project is located
         clearly showing the types, amounts, and terms and conditions
         of such contributions and/or quantifiable reductions must be
         included in the Application. For actions that create a
         quantifiable reduction, the documentation must include the
         basis and methodology for calculating the operating or
         development cost reduction.


23
9
     Government Financial Assistance

                           Documentation
        A letter from the Chief executive officer of the Local
         Government certifying the Local Government’s contribution
         and/or actions which create a quantifiable reduction of on site
         development costs or operating costs must be included in the
         Application.




24
0
         Government Financial Assistance

     USDA, AHP, CDBG, HOME or Other Assistance
        An award letter must be included in the Application if the
         funding has been awarded. If the funding has not been awarded
         at the time of Application Submission, documentation
         indicating that the project is under final consideration must be
         submitted with the Application

        Applicant must notify DCA on or before July 28, 2005 as to
         whether funding has been awarded. Letter of Notification or
         award or commitment letter must be submitted to DCA by July
24       28, 2005. Points will not be awarded unless funding is actually
1        awarded.
         Government Financial Assistance

         USDA, AHP, CDBG, HOME or Other Assistance

        If the assistance is not awarded, the Applicant may secure
         alternate financing and revise and resubmit all applicable
         documents by August 15, 2005.

        The Application will not be eligible for additional points under
         any other criteria based on the revisions submitted in the revised
         Application.
24
2
     Government Financial Assistance

                             Calculating Points
        3% but less than 6% of the Total Project Development Cost and/or
         Average Annual Operating Cost Reduction (5 points)

        Greater than or equal to 6% but less than 10% of Total Project
         Development Cost and/or Average Operating Cost Reduction (10 points)

        10% or more of the Total Project Development Cost and/or Annual
         Operating Cost Reduction (15 points)

        Assistance that contains both Operating and Development Cost
24       Contributions will be scored by calculating the percent of assistance by
         type (development or operating) and then adding the two types of
3        assistance together
     Government Financial Assistance

                              Special Notes

        PBRA assistance does not qualify for points under this section
        HUD 221(d)(3) and (d)(4) loan guarantees are eligible but the
         Director of the Office of Multifamily Housing at HUD must
         provide documentation that reflects the basis and methodology
         for computing the amount eligible for points
        Costs associated with the waiver of zoning and or building code
         requirements are not eligible
24
4
     Government Financial Assistance
        Documentation must be clear and unambiguous
        Big points – don’t lose on a technicality
        Clarifications of support may be used for project feasibility
         but you won’t get the points
        Double check how you input your support into your
         proforma
        Be careful with tax abatements
        Don’t depend on a third party to get your notification of
         award to DCA
24
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     Government Financial Assistance




             Question and Answer



24
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              6. Project Characteristics

        See Tab Checklist #27 for documentation requirements
        Energy Efficiency & Indoor Air Quality Requirements
        Project Design Requirements
        Accessibility Requirements
        ALL applications competitive and non-competitive must select
         enhancements as indicated on the OAH Certification Forms D-7 –
         D-9
        For scattered site properties scoring see the individual scoring
         categories as listed for points allocation

24
7
          Energy Efficiency & Indoor Air
              Quality Requirements

     • ALL properties must meet Georgia energy codes as a minimum
       and certified on OAH Energy Certification Form D-7

     • Option to construct according to the EPA Energy Star program
       requirements and meet their requirements
           -10 total points or a menu of options to a total of 10 points

     • ALL applications including non-competitive projects must select
       upgrades as indicated on OAH Energy Certification Form D-7

     • For scattered site projects each parcel or each property must make
24     the same upgrade selections
8
     Project Design Requirements
     • Longevity and low maintenance should be considered in the design on
       the property and the selection of finishes
     • DCA is committed to the preservation of natural resources in the area
       of sustainable design and finishes
     • ALL properties as a minimum, must meet the Architectural
       Requirements as defined in the Application Manual
     • Total of 20 points for this category as applicable
     • ALL applications must select upgrades as indicated on OAH Design
       Certification Form D-8

     • For scattered sites each parcel score will be added and averaged over
24     the number of parcels for points allocation
9
     Accessibility Requirements
     • ALL properties as a minimum must meet applicable accessibility laws
       to be included on Accessibility Certification Form D-9
     • DCA is committed to providing housing that meets the needs of
       individuals with disabilities
     • Total of 6 points for this category
     • ALL applications must select upgrades as indicated onAccessibility
       Certification Form D-9

     • For scattered sites each parcel score will be added and
           averaged over the number of parcels for points allocation
25
0
     6. Project Characteristics




         Question and Answer


25
1
         7. Neighborhood Redevelopment

        Three (3) points will be awarded if the proposed development site is
         located in a difficult to develop area or Qualified Census Tract.

        Two (2) points will be awarded if the proposed development site is
         located in an enterprise community or an empowerment zone within
         a community or a Renewal Community.

        One (1) point will be awarded for Georgia Better Hometown or
         Georgia Mainstreet Community

25
2
           Neighborhood Redevelopment

        Three (3) points will be awarded if there is an adopted
         redevelopment plan / Community Revitalization Plan
         formulated by the community based non-profit or the Local
         Government, that clearly targets the specific neighborhood in
         which the project is located.




25
3
         Neighborhood Redevelopment

                       Requirements of Plan
        Assessment of Physical structure/strategy for social service
         needs
        6 months prior to Application Submission
        Specific time frames
        Potential funding sources
        Detailed policy goals (including housing)
        Implementation measures/specific time frames
        Development of project meets one of the goals of the plan
25
4
           Neighborhood Redevelopment

        Two (2) points will be awarded if documentation is submitted
         that evidences a commitment by the government funding entity
         to provide off-site improvements totaling no less than $150,000
         for urban off site improvements, or $50,000 for Rural off-site
         improvements. Such improvements must be completed by the
         projects placed in service date and must be located directly
         adjacent to the project site.

        All required documentation and Certification Form O-4 must be
         included in Tab 26.
25
5
          Neighborhood Redevelopment

                                   Notes
        Size of community covered by plan
        Service only plans
        Only one plan can be submitted
        Must reference where scoring requirements can be found in plan
        Following plans will not qualify for points:
          – Zoning
          – Municipal
          – Short-term work plans
25
          – Comprehensive Plans
6
     Neighborhood Redevelopment




         Question and Answer



25
7
                 8. Compliance History Scoring

        To be completed by all General Partners, Developers, Property
         Managers and Development Consultants.

        All project participants begin with a neutral score.

        Positive Compliance will result in up to ten (10) positive points
         to the overall application score.

        Poor Compliance Points may result in loosing up to (20) points
         from the overall application score or could result in not being
25       eligible to participate.
8
                  Compliance History Scoring

        Syndicators will be scored using the same criteria but will receive a
         pass or fail rating.
        In Georgia, Syndicators must track the compliance history of the
         Projects in their portfolio (GA and/or the contiguous states). Still
         have those that don’t this year will not be reviewed until complete
         Compliance History is submitted.
        Syndicators are not required to submit compliance information at
         time of application but must submit it subsequent to the Project
         Award (within 75 days of issuance of carryover).
        The approval or disapproval of a Syndicator will be based in part
         on their Compliance History Score, portfolio performance,
25       including but not limited to bankruptcies and foreclosures.
         Syndicators scoring less than -20 will not be eligible to participate.
9        The applicant would then select another Syndicator.
                  Compliance History Scoring

        Types of Housing Program Compliance Considered in
         Compliance Scoring

         –   Low Income Housing Tax Credits
         –   HOME
         –   FDIC Affordable Housing Disposition Program
         –   Georgia Housing Trust Funds


26
0
                  Compliance History Scoring

        Project Participants with no prior compliance history in Georgia
         can submit compliance history from contiguous states (Florida,
         Alabama, North Carolina, South Carolina and Tennessee).

        Project Participants with no prior compliance history in Georgia
         or the contiguous states will receive a neutral score (0).

        Once a Project Participant has one or more properties in Georgia
         or one of the contiguous states that has a Compliance Audit in
         one of the acceptable programs that Participant can receive a
         Compliance Score.
26
1
                 Compliance History Scoring

     Compliance History Summary
        Participants may update past years Compliance History
         Summaries.
        Remove any audits listed in years other than 2002, 2003 or
         2004.
        Make sure that all Tax Credit Projects have their Project
         Numbers listed.
        Be sure to update and complete all fields on the Form.
        Attach all required audit documentation.
26
2
                 Compliance History Scoring

     Things to Remember
        Questions regarding determining whether the “rating” of a
         specific instance of non compliance should be addressed
         through the project specific question process.
        Attach copies of any previous year Pre-Application Compliance
         Score Certificate(s).
        Complete a 2005 Compliance Self Score.
        Make sure that Compliance Score transfers to the Application
         Score.

26
3
                 Compliance History Scoring

     DCA Compliance Certification (NEW) ( Form J 19)
        Make sure that this form is complete and the information
         presented is accurate.




26
4
            Compliance History Scoring

                              NEW
     One point will be deducted from a project’s final compliance
     score for each instance of the following non compliance issues
     that occurred at any project listed on the Compliance History
     Summary:
     - Recapture of Federal Credits
     - Foreclosures of a HOME Loan or
     - Project bankruptcy
     - (Regardless of where the project is located)
26
5
                 Compliance History Scoring

                          Common Mistakes

        Make sure that facts listed on Application, Organizational
         Chart and Experience Information and all other materials
         submitted in the 2005 Application package are uniform.
        Compliance Self Score transfers to Application Score.
        Documentation of audits not attached.
        Failure to disclose participation in “troubled” property.
        Proof all forms.
26
6
     Compliance History Scoring




       Question and Answer



26
7
        Session II End




     Question and Answer



26
8

				
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