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South Carolina Deed in Lieu Laws

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South Carolina Deed in Lieu Laws Powered By Docstoc
					            2004
   APPLICATION WORKSHOP



Georgia Department of Community Affairs




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

   LIHTC Policies
   HOME Loan Policies
   Rental Charts
   Appraisals
                     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
     – Rehabilitation: 5%-7% of hard cost
                         LIHTC Policies

   Relocation Budget
   Compliance Monitoring Fee
     – Based on Total # of units (USDA Sec. 538 - $600/unit)
   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*)
           When Identity of Interest exists between Developer & Gen’l Contractor

     –   Consultant Fee Limitation: 20% of Developer Fee
             No Consultant Fee allowed if Identity of Interest btwn Consultant &
              Owner/Developer
                  LIHTC Policies

   Tax Credit Percentages: 9% and 4% for application purpose
   BMIR HOME Funding & QCT
     – 40-50 Rule (seek professional advice)
     – “9% credit”: not eligible for 30% basis boost
   Per Unit Cost Limitation
     – Waiver due 3/1/04
                  LIHTC Policies

   Terms tie back to documents (including government financial
    assistance)
   Housing Credit Equity
   Deferred Developer’s Fee
     – Must be payable within 10 years from cash flow
     – Not considered in GAP method of credit calculation
                       Rent Issues
   Metro Atlanta maximum rent limit @ 54% eliminated
   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.
         Utility Allowance

   Utility Allowance
     – USDA
     – Public Housing Authority
     – DCA
        Operating Expense Budget

   Minimum Annual Operating Expense Requirements
     – Urban: $3,000/unit
     – Rural County w/USDA funding source: $2,400/unit
     – Rural County: $2,600/unit
   Operating Expense Waiver: due by March 1, 2004 or submit with
    Application
   Replacement reserve
     – Rehabilitation: $300/year per unit
     – New Construction: $200/year per unit
     – Single Family: $400/year per unit
                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 during 15 year
       compliance period
     – Tax Credit & HOME projects: no less than 1.15 during
       compliance period, period of affordability, or HOME loan
       term, whichever is longest
              Project Feasibility for
              Scattered Sites
   Scattered Site Projects
     – DCR requirements must be met by the project as a whole and for
       scattered site projects under section 10 B (1) (b) - 3 non-
       contiguous multifamily properties within 50 mile radius- each
       property must meet the criteria
             Financial Adjustments

   At DCA’s Discretion
   For each adjustment, deduct 1 point. No limit on deduction.
  HOME Policies


Additional Policies Applicable
 to HOME Funded Projects
    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
           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
            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
 Assumptions for Land Purchase
     and Existing Buildings
No Identity of Interest
   Cost limited to the lesser of sales price or appraised “as is”
    value

Identity of Interest
   Cost limited to the lesser of sales price or appraised “as is”
    value
   Appraisal prepared by an appraiser that is a Georgia Certified
    Appraiser
   Appraisal prepared within 6 months of application submission
   Provide separate land and building values
      Construction Contingency

   New Construction 2% to 5% of Total Construction Cost
   Rehabilitation 5% to 7% of Total Construction Cost
        HOME Loan/Construction
            Contingency
   DCA funds allocated to Contingency
   DCA approves all change orders
   Unused contingency used to reduce Senior Loan or HOME
    Loan
Construction Hard Cost Financing

   Site Development
   Unit/Building Construction
   Contractor services
   Builders overhead
   Builders profit
                      Conversion

   24 months of HOME loan closing
   Loan Agreements will set conversion date
    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
             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
                Syndicator Asset
                Management Fees
   Paid - “After DCA Debt Service”
   Paid - After Excess cash Flow Payment
         Operating Deficit Reserve

   No less than 6 times the secured monthly debt service plus no
    less than 6 months projected operating expenses
   Funded at or prior to conversion
   Held by DCA or Senior Lender
   Required for Term of HOME Loan
   Withdrawals must be Approved by DCA and Requested in
    Writing
             Partnership Agreement

   Must Reflect Terms of HOME Loan
   Executed Prior to HOME Loan closing
                 Payment and
              Performance Bonds

No Identity of Interest
 Required on all Developments (100% bond required on all
  developments)
 Include the cost of Payment and Performance Bond in 6%
  General Requirements
                 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
                 Payment and
              Performance Bonds

Waiver Process
 Waiver Request must be submitted with Application
 DCA Waiver (Form N-3)
 Tab 2 Application Binder
     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-5)
     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-6)
     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-5)
     – Owners are responsible for meeting submission
       requirements
     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
                 Rent Charts

   Low Income Units with No PBRA
   Low Income Units with PBRA
   Non LIHTC Units with PBRA
   Market rate units
Low Income units with No PBRA

   Unit rent and income type
         30/50/60
   PHA Units
   Program Max Unit Rents
         LIHTC/HOME
   Proposed Unit Rent (can’t exceed Program rent)
   Unit Rent to Collect
                      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
    Low Income Units with PBRA

   PBRA type: Government/Non government
   Unit rent and income type (LIHTC)
   Program max Unit rent (LIHTC/HOME)
   Proposed unit rent
   Unit rent to collect
   Proposed unit rent without PBRA
    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
         Application instructions

   New application instructions
   Use your project specific question period
                      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
                  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
                   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 or Multifamily Property
   is Required
               Appraisal Guidelines
   Values - “Tax Credit”, As is” (Land and Building), “As
    Complete” (encumbered and unencumbered)
   Unencumbered Value at Maturity of Loan (Non-Amortizing
    HOME Loan)
    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.
     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
   Requirement that a copy of warranty deed showing Seller has
    ability to convey has been eliminated
                2. 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 or each multifamily
property must meet this threshold requirement
       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
   Must have a Reliance letter
        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.
    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
    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
    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
    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
         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.
           Minimum Coverage

   Worker’s Compensation and Employer’s            Liability
    insurance, as legally required by Georgia law
   Commercial General Liability Insurance with limits of
    $1,000,000 per occurrence and $2,000,000 in general
    aggregate
   Commercial Automobile Liability insurance, total
    combined single limits of $1,000,000.00 per occurrence
    and in the aggregate
   Professional Liability Insurance with limits of
    $1,000,000.00 each claim and $1,000,000.00 in the
    aggregate
             Common Mistakes
   Improper Certificate of Insurance
   No Reliance Letter
   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
     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
        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
     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
       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
        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
        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
                3. 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.
                    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 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.
                  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,
    4. Threshold Requirements

 Site Zoning
 Operating Utilities
 Project Amenities
 Site Access
 Physical Needs Assessments
 Site Information
                      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 or each multifamily
        property must meet this threshold requirement
                  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)
           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 or each multifamily
          property must meet this threshold 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 Amenity Certifications C1-C4 (OAH
          Forms D-3 – D-6), as applicable for tenancy type, i.e.
          Elderly, Family etc. (See Tab Checklist #20)
                Required Amenities


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

   For scattered site 10(B)(1)(b) each multifamily property must
          include unit amenities, laundry & equipped recreation area
                        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 Site Information Form A (OAH Form D-1)
For scattered site properties, each parcel or each multifamily property
must meet this threshold 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 and the environmental site assessment

For  scattered site applications, each parcel or each multifamily
property must meet this threshold requirement
             Physical Needs Assessment

   The rehabilitation must reflect an expenditure of at least $12,000
          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 required documentation to be completed is included in the
          Architectural Manual
         Physical Needs Assessment

 DCA requirements include replacement of all components existing on
the property that have a useful 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

For scattered site properties, each parcel or each multifamily property
must meet this threshold requirement
                       Site Information
A conceptual site development plan must be submitted accompanied
by the site Information Form A (OAH 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 or each multifamily property
must meet this requirement
                     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 Accessibility
    Certification F (OAH Form D-9, see Tab Checklist #27)
   For scattered sites 10(B)(1)(a) the project is treated as a whole
    with accessible units distributed across the parcels
   For scattered sites 10(B)(1)(b) each multifamily property must
    meet the accessibility requirements
                 Applicable Laws
              and DCA Requirements
   American with Disabilities Act (ADA)
   Federal Fair Housing Act (FHA), including HUD visitability
    requirements
   Section 504 of the Rehabilitation Act of 1973
   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
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
   Braille and/or large print signage.
       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
   Units to be visitable (first floor units & all units in a building with
    an elevator)
   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
                          Visitability

Applicable to first floor units and all units in a building with an
  elevator, where there are more than 4 units in a building:
   No step entry into units including a 36” wide primary door
   Provide a 32” clear opening in bathroom and interior doorways
   Usable kitchen and bathroom, (a five foot turning circle is not
    necessary for this requirement)
   Environmental controls at accessible heights
   Reinforced walls for grab bars
   Refer to Accessibility Manual and Fair Housing Requirements
    for more information
    Section 504 of the Rehabilitation Act

   New developments have 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
       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
           6. Preliminary Financing
                Commitments
   Threshold Criteria 16 / Application Binder Tab 12
   Required for each Funding Source
   Preliminary Commitment must include:
         Purpose
         Property Address
         Amount
         Interest
         Terms and Conditions
         and Fees must be clearly documented
   Formal Commitment due within 75 of days of Carryover Allocation
         Preliminary Financing /
       Assumption of Existing Debt

   Required Documentation
        Certification Letter
        Original Promissory Note and Amendments
        Original Loan Agreement and Amendments
        Original Security Instruments (Deed)

   Threshold Criteria 16 / Application Binder Tab 12
            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.
    7. Experience



 Requirements for Owners,
Developers and Management
        Companies
               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
          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
         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
                  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
    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
          Non Profit Experience

A non-profit General Partner may also meet the experience
requirements through the experience of a sponsoring non-profit.
           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.
       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
  experience requirements for Owners and/or Developers
        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
            Consultant / Partnering
               Training Guide
   DCA has prepared a new Manual to assist Inexperienced
    entities in preparing their training plans (see Tab M).
                          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 O-1, O-2,
    and/or O-3 as applicable).
   Due Date - March 1, 2004.
       Submission Requirements


   2003 Experience Determinations
   Preapplication Submission
   Forms O-1, O-2, AND/OR O-3
                 OR
   Application Submission
   Forms N-5, N-6, AND/OR N-7
              8. Award Limitations

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

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

   Inexperienced owners and/developers that meet experience
    through partnering or consultant contracts are limited to one
    project
                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.
                      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
    income housing property, if the corporation is 100% owned by a
    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.
             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 to satisfy any other
      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.
                Additional Facts

   Status of an organization can be confirmed using the
    IRS website www.irs.com and enter 78 in the Search
    IRS site.
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)
        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?
    –   A: Yes
             10. 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%
       minorities
    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
    Certification form B-1.
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
    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

    Submit the above information in Tab 18 along with Certification form 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
     Certification form B-2.
 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
         10 (c). Contract Addendum
   Before a binding sales contract is executed for a property that
    will ultimately receive HOME funds, owners who are
    voluntarily selling a property must receive notice that:
         Contract Addendum Notice

   Buyer is seeking federal funds through the HOME Program to
    assist in acquiring the property
   Buyer does not have right of eminent domain and will not
    acquire the Property if negotiations fail as a result of purchase
    agreement
   The estimated fair market value of the property
   Even though federal funds are used for acquisition the seller
    will not be entitled to any relocation benefits
   If an occupied property, serve notice that the buyer is required
    to send notice to tenants concerning there rights under the
    Uniform Relocation Act and the seller agrees to allow such
    delivery once the application for HOME funds has been
    accepted by DCA as complete.
                Contract Addendum

   If the Applicant fails to have the Addendum executed, the
    Seller may be able to claim that the acquisition was
    involuntary. This may cause relocation assistance to be
    available to seller.

   Notices must be personally served or sent by certified or
    registered first class mail.
              Contract Addendum

   A copy of the Contract Addendum (Form15) is in the HOME
    manual and must be submitted with the DCA Application in
    Tab 18 under the Additional HOME Requirements section
    10.(d) Construction Cost Certification

   Required for all HOME projects

   Contractor will complete DCA Multifamily Loan Contractor’s
    Certificate of Actual Project Cost (Certificate)

   Certificate supported by an audit report and opinion letter
    prepared by a CPA in accordance with Generally Accepted
    Accounting Principals and Auditing Standards
     Construction Cost Certification

   Loan documents will contain a provision that requires the
    execution of the Certificate and supporting CPA reports

   Loan documents will include a stipulation that requires the
    borrower to refund any overpayment or windfall received by
    the Borrower and/or General Contractor

   Certification must be completed prior to release of retainage
       Construction Cost Certification

   DCA will review the Certification and supporting documents
   If actual Contractor’s cost are equal to contract amount no
    adjustment
   If actual Contractor’s cost are less than the contract retainage will
    be adjusted and proceeds will be used to reduce HOME loan
    amount
   If actual Contractor’s cost are greater than the contract no
    adjustment will be made.
   Certification form is being finalized.
     11. APPLICATION REQUIREMENTS
            FOR RELOCATION

    INCLUDES ALL PROJECTS THAT HAVE TENANTS IN PLACE AT THE
     TIME OF APPLICATION SUBMISSION (HOME and Tax Credits)
    Requirements are the same for Tax Credit and HOME projects at the time of
     application
    1.   DCA Tenant Data Forms (Form L-1) – Must be completed and submitted for
         all occupied units at the time of application
    2.   Non residential Tenants – List where applicable
    3.   Relocation/Displacement Spreadsheet (Form L-5) – Must be completed
    4.   General Information Notice (GIN) (Form L-6) – copy of GIN sent,
         explanation of the date and notification method used to send to tenant
         (certified mail, registered mail, or personal service)
    5.   Tenant Relocation Plan and Budget (to include DCA Temporary Relocation
         Cost Estimate form (Form L-3) – Detailed and Project Specific
    6.   Detailed Summary of Advisory Assistance – As well as any other contact that
         will be made by the Project Owner in an effort to assist the tenant with
         permanent or temporary relocation.
            Relocation HOME
              Projects Only

7.   Signed Certification Form L-2.

     Requirements for HOME Projects will be gone over at the
     preconstruction conference with the Participant whose Projects
     are funded.

     References:
             HUD Handbook 1378
             http://www.fhwa.dot.gov/realestate/act.htm
       SECTION II


Welcome back from lunch. Please
be seated we are about to begin.
1. Project Location Characteristics

The application must include the following documentation (See
Tab Checklist #11):

   Site Location Map
   Site photographs
   Conceptual site development plan
   Site Information Form A (OAH Form D-1)
   Site Certification B (OAH Form D-2)
   Transit documentation including endorsements, route
          information etc.
   Historic designation documentation
    Project Location Characteristics
Adjacent Residential Development                 4 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
which there is a redevelopment plan
 For Scattered Site projects each parcel or each multifamily
property must meet the requirements to qualify for the points
    Project Location 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
    – Vacant 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
 For scattered site properties 10(B)(1)(b) each multifamily property
        will be scored and the total score averaged
    Project Location Characteristics

   Quality Growth Initiatives                      11 points

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


   For scattered site properties, each parcel or each multifamily
          property must meet this requirement
    Project Location Characteristics

   Quality Growth Initiatives                     11 points

   Transportation Availability:                     2 points
      – Project formally designated as transit oriented by a Rapid Transit
          Authority, or:
      – project located on a bus route with a stop within ¼ mile, or;
      – project located on a major transportation route


 For scattered site properties 10(B)(1)(a), the project will be scored
        as a whole
 For scattered site properties 10(B)(1)(b) each multifamily property
        must meet this requirement
    Project Location Characteristics

   Quality Growth Initiatives                                 11 points

 Adaptive      Reuse & Historic Preservation:                   4 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

   For scattered site properties, each parcel or multifamily property
          must meet this requirement
           1.a Previous Projects
        within a Local Government
•   6 Points

        2004 Application is within a Local Government (city
        or unincorporated portion of a county) that is not on the
        attached list for 2001, 2002, and 2003.

•   4 Points

        2004 Application is within a Local Government (city
        or unincorporated portion of a county) that is not on the
        attached list for 2002 or 2003.
        2. 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
                Amenities Certification C1 (OAH Form D-3)

        2. Optional Amenities                1 -15 points
               Amenities Certification C1(OAH Form D-3)

        3. Optional Services                 1 - 3 points
               Services Certification OAH Form O-5
            Tenancy Characteristics

   Special Needs Projects                       20 Points
    For housing of the homeless, persons with disabilities (mental,
    physical, developmental), abused spouses and their children,
    persons with alcohol or other drug addition, persons living with
    HIV/AIDS, and migrant farm workers (excluding Elderly
    Housing and Housing for Older Persons).
        1. Basic Requirements                6 points
        Amenities Certification C2 (OAH Form D-4)
        2. Optional Amenities & Services     1 -14 points
        Amenities Certification C2 (OAH Form D-4)
        Services Certification OAH Form O-5
           Tenancy Characteristics

     Elderly Households              20 points
       Housing for Elderly Households

    1. Basic Requirements             6 points
        Amenities Certification C3 (OAH Form D-5)
    2. Optional Amenities/Services    1-14 points
        Amenities Certification C3 (OAH Form D-5)
        Services Certification OAH Form O-5
“Elderly Housing” means housing intended for and only occupied by Elderly
   persons including a family in which all members are Elderly (person at least
   62 years of age). All household members must be Elderly (no children, and
   no disabled persons under the age of 62).
              Tenancy Characteristics
    Housing for Older Persons 20 Points
     Designed to foster development of housing for Older Persons.
     1. Basic Requirements              6 points
         Amenities Certification C4 (OAH Form D-6)
     2. Optional Amenities/Services     1-14 points
         Amenities Certification C4 (OAH Form D-6)
         Services Certification OAH Form O-5
“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 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 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 must be evenly distributed across
         the parcels

   For scattered site properties 10(B)(1)(b) for each multifamily
         property the total points for each property will be added and
         averaged. To obtain the maximum amenity points for the
         application, each property must have amenities that add to the
         maximum. Note: It is not necessary to have the same
         amenity on each site

   See Tab Checklist #20 for documentation requirements
                  3. Additional Rent &
                    Income Elections
QAP Section 4 outlines the following requirements:
   4A: Public Housing Authority Development and Rental Subsidy - 15
    points
   4B: Very Low Income Tenancy - 6 points
   4C: Project Based Rental Assistance - 12 points
   4D: Very, Very Low Income Tenancy - 6 points
   4E: DCA PBRA-Special Needs Tenants - 2 points
   4F: Mixed Income Projects - 6 points
   4G: Extension of Cancellation Option - 3 points

For scoring purposes, no double counting of same units under this section
Scattered site project - scoring based on project as a whole
           Public Housing Authority
        Development and Rental Subsidy
   Development subsidy:
    –   PHA equity investment
   And/Or: Operating/Rental Subsidy:
     – Operating cost contributions/tenant rent subsidy - 5 years
       min.
   Executed agreement to “hold and rent” to Public Housing
    tenants
            10% of units       5 points
            20%                10 points
            30%                15 points
            Project Based Rental
                 Assistance
–   Minimum 5 years & 10% total units
        >=10% but <20%          6 points
        >=20% but <40%          7 points
        >=40% but <50%          8 points
        >=50% but <60%          9 points
        >=60% but <70%          10 points
        >=70% but <80%          11 points
        >=80%                   12 points
                Project Based Rental
                     Assistance

   Governmental PBRA
     – Executed agreement
           Amount of Rental Assistance
           # of units assisted
           Duration of assistance
           Terms/conditions
            Project Based Rental
                 Assistance
   Non-Governmental PBRA
     – Funding entity unrelated to project participant
     – Executed agreement:
   Amount of RA, # of units assisted, duration, terms/conditions
     – Board resolution
     – Current audited F/S & federal TIN of funding entity
     – PBRA = 40% FMR or balance of rent when tenant pays 30%
     – Selection plan if <100% units w/PBRA
      Very Low-Income Tenancy

   Rent: <= 50%
   Income: >30% - 50%
   Exceed program requirements
          10% up to 20%                  4 points
          >20% up to 40%                 5 points
          > 40%                          6 points
   Rent/Income restriction - land use restrictive covenant (for
    longer of Compliance Period or Period of Affordability)
        Very, Very Low Income/
           Rent Restrictions
 Rent: <= 30%
 Income: <= 30% AMGI
 Number of Units as a percentage of the Total:
      >3% up to 6%              2 points
      >6% up to 10%             4 points
      >10%                      6 points
 Rent/Income restriction - land use restrictive covenant (for longer
  of Compliance Period or Period of Affordability)
Very Low vs. Very, Very Low
  Income/Rent Restrictions
               Examples - Income & Rent
                     Restrictions
Total units: 100            Low Income units: 80       Market Rate Units: 20

Example 1: 40-60 Tax Credit Minimum Set-aside Applicable only
   Among LI units:      60% R&I units: 30           50% R&I units: 35            30% R&I units: 15

                            Units Counted for Points   % of Total Units          Points
    Very Low R&I:                    35                     35%                    5
    Very, Very Low R&I:              15                     15%                    6

Example 2: 40-60 Tax Credit Min. Set-aside and 40/50 TC & Home Min. Set-aside
    Among LI units:     60% R&I units: 30 (15)        50% R&I units: 35 (50)     30% R&I units: 15

                            Units Counted for Points   % of Total Units          Points
     Very Low R&I:                  0 (10)                 0% (10%)              0 (4)
     Very, Very Low R&I:            15                     15%                      6

Example 3:     20-50 Tax Credit Minimum Set-aside Applicable only, or
               20-50 Tax Credit Minimum Set-aside and 40/50 TC & Home Min Set-aside

    Among LI units:         60% R&I units: 0           50% R&I units: 70         30% R&I units: 15

                            Units Counted for Points   % of Total Units          Points
     Very Low R&I:                  0                        0%                    0
     Very, Very Low R&I:            15                       15%                   6
              DCA PBRA for Special
                 Needs Tenants
   Agreement to designate lesser of 10 units or 5% of total units
          Mixed Income Projects

   Total market rate units/total residential units:

   >40% thru 50%              6 points
   >20% thru 40%              4 points
   >10% thru 20%              2 points
                Extension of
             Cancellation Option

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


   Plan for tenant ownership
     – 1 point
                      4. Preservation

Maximum of 5 points awarded for this category:
   Five (5) points will be awarded for an Application that
    proposes the preservation of an affordable housing project with
    low income housing tax credits that will expire. Please see the
    “Important Notices, Tips and Updates” section on the web site
    at     http://www/housing/2004_tc_app.html       for    further
    clarification.
                    Preservation

   Up to four (4) points will be awarded for an Application that
    proposes the preservation of a previously HUD funded or
    USDA funded affordable non-public housing project.

    NOTE: HUD and USDA will make their own priority
    designations and provide documentation of such
    designation to the Applicant.
                    Preservation

   Two (2) points will be awarded for an Application that
    proposes the preservation of any other affordable housing
    project.

   Documentation evidencing the rent and income restrictions
    applicable to such property including the term of such
    restrictions must be submitted with the Application.

   Documentation regarding preservation should be included in
    Application Tab 23.
                     Preservation

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

   NO OTHER DOCUMENTATION NEED BE SUBMITTED
             Examples of Project
             Development Costs

   Waiving Water and Sewer Tap Fees

   Waiving Building Permit Fees

   Foregoing Real Property Taxes

   Contributing Land for Project Development

   Below Market Rate Financing
                Examples of Project
                  Operating Cost

   Abatement of Real Estate Taxes

   Operational Cost Subsidies
        Operating Cost Reductions

   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
Operating and Total Development
        Cost Reductions
   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.
                    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.
         USDA, AHP, CDGB, 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, 2004 as to
    whether funding has been awarded. Letter of Notification or
    award or commitment letter must be submitted to DCA by July
    28, 2004. Points will not be awarded unless funding is actually
    awarded.
       USDA, AHP, CDGB, 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. 2004.

   The Application will not be eligible for additional points under
    any other criteria based on the revisions submitted in the revised
    Application.
               Calculating Points

   2% but less than 4% of the Total Project Development Cost and/or
    Average Annual Operating Cost Reduction (5 points)
   Greater than or equal to 4% but less than 7% of Total Project
    Development Cost and/or Average Operating Cost Reduction (10
    points)
   7% or more of the Total Project Development Cost and/or Annual
    Operating Cost Reduction (15 points)
   Assistance that contains both Operating and Development Cost
    Contributions will be scored by calculating the percent of
    assistance by type (development or operating) and then adding the
    two types of assistance together
                Special Notes

   PHA 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
   All documentation should be provided in Tab 25
                    Use of GORA

   Resource
   Not precedent
   Use project specific question period if you have any doubts
    regarding your support
           6. Project Characteristics

   See Tab Checklist #27 for documentation requirements

   Energy Efficiency and Indoor Air Quality Requirements

   Project Design Requirements

   Accessibility Requirements

   For scattered site properties scoring see the individual scoring
    categories as listed
Energy Efficiency & Indoor Air
Quality Requirements

• All properties must meet Georgia energy codes as a minimum to be
         included on Energy Certification D (OAH Form D-7)
• New this year is the option to construct according to the
        EPA Energy Star program requirements and meet
        their requirements - 10 total points
• Expanded menu of options to a total of 10 points
• Points must be certified on Energy Certification D
         (OAH Form D-7)
• For scattered site projects each parcel or each
        multifamily property must make the same elections
 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 22 points for this category
•Points must be certified on Property Design Certification E
        (OAH Form D-8)

For scattered sites each property/parcel score will be added and
        averaged over the number of parcels/properties
 Accessibility Requirements

• All properties as a minimum must meet applicable accessibility
        laws to be included on Accessibility Certification F
        (OAH Form D-9)
• DCA is committed to providing housing that meets the needs of
       individuals with disabilities
• Total of 6 points for this category
• Points must be certified on Accessibility Certification F
         (OAH Form D-9)
• For scattered sites each property/parcel score will be added and
        averaged over the number of parcels/properties
 7. Neighborhood Redevelopment

Two   (2) 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
    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.
            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
    Neighborhood Redevelopment

 One (1) point - at least two (2) previous redevelopment activities
within the last 12 months, that has occurred within the defined
community area of the proposed development project. This activity
may be evidenced as either services or construction of residential or
support facilities.
    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.
                          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
                        8. Compliance

Compliance History Status

   Prior compliance experience and administrative performance with
    HOME, Housing Trust Fund, FDIC and Tax Credit Programs from 2001,
    2002, and 2003.
   Project Participants with no prior compliance history in GA can submit
    compliance history from contiguous states (Florida, Alabama, North
    Carolina, South Carolina and Tennessee)
   Project Participants that have no prior compliance history in Georgia or
    the contiguous states will receive a neutral score. (no negative/no
    positive points)
   The scores for Participation’s with experience will be weighed along
    with the neutral scores of those Participants with no experience.
                          Compliance

Compliance History Status
   Project participants basically begin with neutral score until they
    have a “compliance history”.
   The final compliance score may result in an addition of up to ten
    (10) points or a reduction of as many as twenty (20) points to/from
    the overall application score.
   Syndicators will be scored using the same criteria. (pass or fail)
   Syndicators must track the compliance history of Projects in
    Georgia and/or the contiguous states still have those that don’t
   Syndicators are not required to submit compliance information at
    time of application but must submit this information within 75 days
    of issuance of carryover.
                      Compliance

•   Questions regarding determining whether the “rating” of a specific
    instance of noncompliance should be addressed through the project
    specific question process.
•   Examples of Major and Minor Noncompliance are found in Appendix II
    Scoring Criteria.
•   Noncompliance Categories Numerical Values are found on Table I.
•   Assign a numerical value to each instance of noncompliance.
•   Divide the total numerical value of the projects’ noncompliance and by
    total the number of units audited. This will determine the Participant
    Compliance Factor.
•   Once you have one audit in GA you have a GA history and we do not
    consider the history in the contiguous states in determining the
    compliance score.
                      Compliance

   Applicants who have submitted Compliance History Package in
    2000, 2001, 2002, and 2003 may update their package.

    1.   Pull Compliance History Summary – Add 2003 audits
    2.   Attach required audit documentation that was not in
         previously submitted material
    3.   When calculating 2004 compliance self score drop 2000
         properties that were used in calculation last year then use
         2001, 2002, and 2003 audits to arrive at your self score.

				
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