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					          2011
Affordable Housing Program
            Workshop Agenda

•   AHP overview
•   Eligibility/threshold requirements
•   Scoring review
•   Feasibility review
•   Online application
•   AHP award obligations
•   Technical assistance process
•   Questions
 Federal Home Loan Bank of Pittsburgh

Who are we?
• One of 12 banks in the FHLB system
• Cooperatively owned
• Provide access to cheap capital
• Earnings set-aside for community
  investment
                 What is AHP?

• Supports the development of affordable housing for
  households at or below 80% of AMI (using HUD’s
  guidelines)

• Direct subsidy (grants) or low-interest loan options

• Competitive application process
       What’s Happening in 2011?

• One funding round

• Funds for 2011 AHP – approximately $3 million
• Maximum subsidy amount $250,000 per project
• Online application
• Informational webinars, workshops and technical
  assistance
        Important 2011 AHP Dates

• Now – technical assistance requests accepted
• During the month of May – webinars and workshops
  will be conducted (go to the FHLBank Pittsburgh
  website for registration information)
• June 1 – access to online system available
• July 21 (5 p.m.) – closing date for submission of
  applications; applications MUST be in “Member
  Approved” status
• October 28 - AHP funding announcement
           AHP Eligibility Criteria
General:
   – FHLBank members = Applicant
   – Nonprofit, for-profit, authorities, municipalities
     developing affordable housing = Sponsor
Project Specific Thresholds:
   – Rental projects – at least 20% of units targeted
     for families at or below 50% AMI
   – Homeownership projects – at least one unit
     targeted for families at <80% AMI
   – Project meets Fair Housing requirements
       AHP Eligibility Criteria (cont.)

– Project must comply with required retention period:
  5 years for owner-occupied housing, 15 years for
  rental, and use acceptable retention mechanism
– AHP subsidy requested must be less than or equal to
  the $250,000 maximum
– Creditworthiness of the member must be verified (by
  FHLBank Pittsburgh)
– AHP funds must be used for an eligible purpose
            Eligible AHP Uses

• Homeownership or rental
• Multi-family, single-family
• Acquisition, new construction, rehabilitation
• Scattered site, single site
• Downpayment/closing costs
            Quick Scoring Review

• The AHP uses a 100-point scoring system
• Scoring details provided in Attachment B of the AHP
  Implementation Plan
• A perfect score is not required!
• 2010 funding round results:
   – 76 applications submitted, 15 approved
   – High score = 82, score for last approved = 68.75
• Score for last approved application in 2009 funding
  round = 65
         2011 Scoring Guidelines

  Scoring Categories          Point Allocation
Use of Donated Properties           5 (fixed)
Sponsorship by Nonprofit or
 Government Entity                  5 (fixed)
Targeting                           0-20 (var.)
Housing for the Homeless            5 (fixed)
Promotion of Empowerment            0-10 (var.)
     2011 Scoring Guidelines (cont.)

  Scoring Categories         Point Allocation
First District Priorities:
    – Special Needs                7 (fixed)
    – Economic Diversity           5 (fixed)
    – Rural                        5 (fixed)
Second District Priority:
    – Readiness to Proceed         8 (fixed)
Subsidy per Unit                   0-5 (var.)
Community Stability                0-25 (var.)
              Use of Donated Properties
                              (5 points fixed)


• Projects will receive 5 points if either
   – 20% of land or units are received for a nominal price (typically
     $100 or less)

                       OR
   – At least 50% of the units or land are acquired at 50% or less of
     the Fair Market Value

                       OR
   – At least 20% of the land or units are acquired from the federal
     government, federal agency or instrumentality thereof
        Sponsorship by Nonprofit or
            Government Entity
                        (5 points fixed)

• Project must include sponsorship by one of the
  following groups:
  –   Not-for-profit organization
  –   State or political subdivision of a state
  –   State housing agency
  –   Local housing authority
  – Native American tribe
       Sponsorship by Nonprofit or
          Government Entity        (cont.)




• Rental projects – must have an ownership
  interest and be integrally involved
• Homeownership projects – must be integrally
  involved
• “Integral involvement”
   – Exercising control over planning, development
     or management of the project
                       Targeting
                      (20 points variable)


Rental projects
•   Projects with 60% or more of units targeted to
    households at 50% or less of AMI will receive
    20 points
•   Remaining projects will be scored using the
    following scale:
      1.   Percent of units at 50% or less multiplied by 20
      2.   Percent of units at 51%-60% multiplied by 14
      3.   Percent of units at 61%-80% multiplied by 8
    Total score is sum of 1, 2 and 3 above
                 Targeting           (cont.)

                  (20 points variable)

Homeowner projects
Projects will be scored using the following
scale:
       1.   Percent of units at 50% or less multiplied by 20
       2.   Percent of units at 51%-60% multiplied by 18
       3.   Percent of units at 61%-80% multiplied by 16

    Total score is sum of 1, 2 and 3 above

   NOTE: The total number of units in the project
   will be used to determine the targeting scores
   for both rental and homeownership projects
      Housing for Homeless
               (5 points fixed)


Points will be awarded for the creation of:
• Transitional housing, excluding overnight
  shelters, for homeless households permitting a
  minimum of 6 months occupancy
• Rental housing reserving at least 20% of the
  units for homeless households
        Housing for Homeless             (cont.)




Homeless is defined as follows:
  1. Persons who are sleeping in places not meant
     for human habitation
  2. Persons sleeping in emergency shelters
  3. Persons graduating from a transitional housing
     program specifically for homeless persons
  4. Persons being discharged from an institution or
     foster care with no permanent residence
     available
  5. Persons who would be discharged from an
     institution if they had a permanent residence
     available
     Housing for Homeless (cont.)
6.   Victims of domestic violence
7.   Persons who are “doubled-up” and are in a
     situation of overcrowding, defined as:

     Unit Size        Number of People
     Efficiency          2 or more
     1 Bedroom           3 or more
     2 Bedrooms          5 or more
     3 Bedrooms          7 or more
     4 Bedrooms          9 or more
            Empowerment

• Up to 10 points for services offered to
  the residents of the proposed project
• Approved list of empowerment
  techniques
• Techniques must be documented by
  Memorandum of Understanding
                    Empowerment

Empowerment scoring – approved techniques:

4 points for the following techniques:
• Pre-homeownership counseling – complete at least 4
   hours of face-to-face homeownership counseling
• Post-homeownership counseling – complete at least 4
   hours of post-purchase face-to-face homebuyer
   counseling

2 points for the following techniques:
• Case management
• Counseling
                   Empowerment

2 points for the following techniques (continued):
• On-site primary health care services
• Resident serving on sponsor’s board
• Sweat equity – Activities required of the homebuyers or
   their families directly related to the
   construction/rehabilitation of the home.
• Tenant council
• Transportation – Project-specific private transportation
   services provided by the project and tied to residents’
   economic empowerment.
• Welfare-to-Work Initiatives.
• Youth or after-school programs
                   Empowerment

2 points for the following techniques (continued):
• Financial literacy/credit counseling/budgeting
• Homeowners association
• Life skills classes that promote economic betterment or
   self-sufficiency.
• Daycare services (youth or adult)
• Education (related to economic empowerment, other
   than employment training) –
• Employment training
• Financial – programs or services that provide direct and
   quantifiable cash assistance to residents.
                      Special Needs
                        (7 points fixed)

At least 20 percent of the units are reserved for special
needs individuals
Expanded definition of special needs:
   –   Physically and/or mentally disabled
   –   Developmentally disabled
   –   Persons recovering from domestic abuse (physical abuse)
   –   Persons recovering from domestic abuse (emotional abuse)
   –   Persons recovering from chemical dependency
   –   Persons with HIV/AIDS

Any member of a household with any one of the
qualifying special needs conditions outlined above
qualifies the household as a special needs household
                  Economic Diversity
                            (5 points fixed)


Projects that incorporate mixed-income
housing in the development scheme. Mixed
income housing is defined as:
    – 20% or more units targeted to households
      >60% of the AMI
                      OR
    – Project is located in a census tract with an
      average annual income that is at or greater
      than 100% of the AMI

Note: The total number of units in the project will be used to score this
       factor.
                   Rural
                 (5 points fixed)



• Projects that are located in rural areas
• USDA guidelines for each state are
  used
• For more information go to the USDA
  website at www.usda.gov and select
  Single family or Multi family as
  appropriate for your project
          Readiness to Proceed

• Quick start – on or before 4/28/12 (for owner-
  occupied rehab only – finish on or before 10/28/12)
• 100% site control at time of application (July 2011)
  must be documented; Exceptions: NSP projects (site
  control by 4/28/12) and owner-occupied rehab
  projects (exempt from requirement)
• Zoning/environmental – documented permissive
  zoning and environmental clearance at time of
  application
• Financing – 60% of gap funding (including AHP
  request) secured at time of application
           Subsidy Per Unit
             (0-5 points variable)


• The extent to which a project uses the
  least amount of AHP subsidy per
  AHP-targeted unit
• Owner-occupied and rental projects
  scored separately on established point
  ranges
• Points will be awarded in .25
  increments
         Community Stability


• Template review

• 25 point category broken into two focus
  areas for scoring purposes:
  – Planning:    10 points
  – Impact:      15 points
        Community Stability – Planning
                           (up to 10 points)

Planning:

3 possible points for consistency with state/local/community plans

• Threshold consistency with local/state plan
   – 1 point

• Consistency with specific community plan
   – 1 point

• Consistency with special needs/homeless plan
   – 1 point

7 possible points based on the quality of the state/local/community plan
   where the project is located
        Community Stability – Impact
                          (up to 15 points)

Impact is measured using the following criteria:

• Awarded designations – up to 2 points
   – Project must be located in community with designation
   – Examples: Main Street, Elm Street, Weed and Seed, Blueprint
     Community
• Related community activity/investment – up to
  2 points
   – Project is in community that has related community activities and
     investment
   – Proof that community is moving forward with development or
     revitalization
    Community Stability – Impact (cont.)
•     Impact measures - 3 to 7 points:

       Catalytic Project – 7 points
                       OR

       Neighborhood Stabilization Program
       •   5 points < 11 units
       •   7 points 12 or more units
                       OR

       Other impact elements
       •   3 points < 11 units
       •   5 points 12 or more units
     Community Stability – Impact (cont.)

“Other” impact techniques – 3 to 5 points, project
must include one of the following activities:

     • Located in area of concentrated foreclosure under NSP
     • Owner-occupied rehab with >$10,000 unit
     • Creates homeownership in areas with homeownership rate
       less than 50%
     • Redevelops blighted property (if rehab, rehab costs >$25,000
       per unit)
     • Adaptively reuses a property; i.e., warehouse into housing
     • Rehabilitates a historic property (>$25,000 per unit costs)
     • Preserves existing subsidized housing (rehab must be
       >$10,000 per unit)
     Community Stability – Impact (cont.)

• Project Techniques – up to 2 points,
  project must include 1 of 4 techniques:
  – creation of a community asset
  – visitable units
  – proximity to amenities
  – security features
• Architectural compatibility – 2 points
  – Project is compatible with surrounding
    neighborhood
           Project Feasibility


• Projects may score well, but may not
  pass the feasibility review

• Review project feasibility guidelines in
  Attachment A of the AHP Implementation
  Plan
               Project Feasibility

• Feasibility factors:

   – Financial Structure
   – Cost Reasonableness
   – Need for Subsidy
   – Market Demand
   – Development Team Capacity
   – Readiness to Proceed

• Discuss potential feasibility issues with CID staff
  early
                Things to Do Now

• Meet with your FHLBank member
• Complete individual/person registration if you are not
  previously registered
• Review online resources: AHP Implementation Plan,
  AHP guide, subjective category guides, scoring
  templates, etc.
• Complete due diligence and start work on templates
• Request technical assistance
 Registering For The Funding Round


• Sponsors who previously registered during
  2010 AHP funding round

• New sponsor registration

• Member registration
      Previously Registered Sponsors

• If you know your user ID and password (PW), log onto
  Bank4banks and access the system as usual
• If you know your user ID, but forgot your PW, log onto
  Bank4banks and hit the reset link for “Forgot your
  password?”
• If you know your PW, but forgot your user ID, email CID
   – Dorothy Pegdan at dpegdan@fhlb-pgh.com or
   – Ann Killian at akillian@fhlb-pgh.com
          New Sponsor Registration

• New sponsors can register at any time by going to
  FHLBank Pittsburgh’s public website, clicking on the
  Bank4banks link in the lower left corner and then the
  “community investment sponsor/consultant not
  registered yet” link
• System will then prompt you to create user name/
  password, answer security questions and review/accept
  AHP Services Agreement
• Confirmation sent via email
                 Member Registration

• Different than sponsor registration:
   – All member Bank4Banks access is done through the member’s
     “Customer Security Administrator” (CSA). To access the AHP system,
     individuals must be given “AHP Role” in Bank4Banks
   – To find the CSA for your institution, you may contact Member Services
     at 1-800-288-3400, Option 2, or Community Investment Department at
     1-800-288-3400, Option 3
   – Most institutions have two CSAs. CSAs have the ability to authorize
     access to the AHP function of Bank4Banks. One CSA can create your
     account and the other will sign off as a second approver
   – Once the CSA sets up your account, the system notifies Member
     Services and they send out a confirmation packet with your token and
     instructions for logging into the system
• NOTE: members need to complete this registration only if they are
  not already an AHP user in Bank4Banks. If you previously submitted
  an AHP application in the 2010 funding round, you are already
  registered in Bank4Banks and do not need to complete the
  registration process again.
          Online Application

• Access to previous application information
• Financial forms attached to system – easier to
  complete offline
• Navigation enhancements
• Messaging and alert features
• Summary screen to track progress
If you initiated an application in the 2010A funding
          round, this is what you will see…
Initiating an Application June 1
If you are registering yourself in the AHP System for
the first time, you need to associate yourself with an
            organization before continuing.
On June 1, all potential applicants may begin
          initiating an application.
Accessing the Electronic Application
              Online Application Tips
• Register self and organization only ONCE; call CID with
  Login ID & Password questions
    – 1-800-288-3400 option 3
• Save each page BEFORE moving on
• 15-minute inactivity period
• Click ? on each page for more info
• No smart quotes (“ ”) or ampersands (&) in the text
  boxes
• Read Financial Feasibility Spreadsheet instructions
• Contact CID if your project is out of district to ensure
  proper 221(d)(3) and 203(b) limits and zip code info
 Attaching Supporting Documents

• .zip, .xls,.doc or .pdf file
• Excel spreadsheets, maps, site control
  documents, zoning compliance, etc. if the file is
  zipped or in .pdf format
• Zip software:
  http://www.winzip.com/ddchomea.html
          Member Role Post-Award

• Member/Sponsor/FHLBank execute AHP tri-
  party agreement when AHP funds are awarded
• AHP agreement establishes general roles and
  responsibilities
• Review Implementation Plan, Attachment C, for
  details on compliance/monitoring requirements
• Meet with member – discuss details
  – During construction
  – After construction completion
         Member Role Post-Award

Member and sponsor roles during
construction:
• Complete progress reports semi-annually until
  the project is complete
• Submit funding disbursement requests for
  subsidy draws (must submit first funding request
  draw within 12 months of application approval)
• Submit information for a compliance review at
  project completion
                 Subsidy Disbursements
•   Must have AHP system access to approve a funding request –
    submission/approval process is all done on-line

•   Tri-party agreement (direct subsidy agreement) – must be executed, signed
    by member bank, project and FHLBank Pittsburgh

•   Approved AHP retention documentation (i.e. AHP mortgage and note) for
    the amount of the AHP subsidy must be in place (be sure to have draft AHP
    retention documents approved by CID staff prior to executing and recording
    these documents)

•   Sponsor prepares and submits the disbursement (funding) request, member
    will get an e-mail notification of the submission and are required to review
    the funding request

•   If member feels that the sponsor did not adequately document the request
    something or need additional documentation, they can "reject" the funding
    request
      Project Completion Review Factors

• Scoring                    • Subsidy use verification
• Income targeting           • TDC verification
• Income verifications for   • Homeless verification
  20% of households          • Special needs verification
• Executed and recorded      • Fair housing compliance
  AHP retention document     • Empowerment
• Feasibility review           techniques verification
• Need for subsidy           • Community stability
• Subsidy delivery (Note)      verification
        Member Role Post-Award

Member and sponsor roles after project
completion:
• Compliance reporting/monitoring during
  retention period
• Sponsors/members must provide
  requested documentation in a timely
  manner in order to complete required
  monitoring/compliance reviews
             Technical Assistance

Technical assistance for FHLBank members and project
sponsors is available

Member assistance – contact CID staff

Sponsor assistance:
•  Go to AHP website and click on technical assistance
   link complete TA registration information and project
   consultation form
•  Submit completed forms
•  CID staff will initiate contact upon receipt of forms
        Community Investment Contacts:
          AHP Technical Assistance
Western Pennsylvania and   Eastern Pennsylvania and
 West Virginia:              Delaware:
John Bendel                Dave Buches
jbendel@fhlb-pgh.com       dbuches@fhlb-pgh.com
412-288-2820               302-242-1257
                           Central and Northeastern
Laura Rye                    Pennsylvania:
laura.rye@fhlb-pgh.com
                           Bill Joseph
304-291-5485
                           bjoseph@fhlb-pgh.com
                           570-823-0644
      Community Investment Contacts:
       Disbursement and Monitoring

Disbursements:
Linda Kruse
linda.kruse@fhlb-pgh.com
412-288-3420

Monitoring:
Terry Cronin
terrence.cronin@fhlb-pgh.com
412-288-3438
For more information on the 2011 AHP
 round, visit the FHLBank Pittsburgh
                website
          www.fhlb-pgh.com
Questions?

				
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