2015 HOUSING TRUST FUNDSPRING ROUND

COMPETITIVE GRANTSAPPLICATION WORKSHOPS

January 23, 2015 – NashvilleJanuary 29,2015 – MaryvilleFebruary 2, 2015 - Jackson

SPRING ROUND HIGHLIGHTS

• The amount available for the Spring Round is approximately $1.8 million.• Eligible activities are Rental Only.• The maximum grant is $500,000.• Income limits are now at or below 80% AMI.• Applications will be due Friday, March 6, 2015.

NOTE: The cure period has been eliminated. Submission of a complete application is a threshold criterion.

SPRING ROUND HIGHLIGHTS

• Funding announcements May, 2015.• Contract term is July 1, 2015 through June 30, 2018.• Applicants with projects that are or will be ready to begin soon will be

viewed more favorably.

DRAW DOWN REQUIREMENTS

•Applicants with current Competitive Grants must meet draw down requirements by February 27, 2015 to be eligible.

Grant Year Draw Requirement2012 and earlier 100%2014 Fall 75%2014 Spring 50%2015 Fall 25%

ELIGIBLE APPLICANTS

• Local Governments• Development Districts• Public Housing Authorities• Departments of State Government• Non-profit Organizations

ELIGIBLE NON-PROFIT AGENCIES

• Organized under Tennessee law with a current Certificate of Existence.• Has as one of its purposes the provision of housing to low-income

households.• Has standards of financial accountability.• Has IRS 501(c)(3) or 501(c)(4) designation.• Additional requirements as noted in Attachment One: Non-Profit

Checklist.

ELIGIBLE ACTIVITIES

• Rental housing programs only!!• Homeownership is no longer an eligible activity.

RENTAL PROGRAMS

• New construction of rental units.• Acquisition of rental units.• Rehabilitation of rental units.• Conversion of non-residential space to residential units.• Combinations of the above.• The applicant must be the owner of the proposed rental project.

SPECIAL NEEDS HOUSING

• Rental housing for persons with a physical, emotional, or mental disability.• Special needs housing must include the provision of appropriate

supportive services.

ELIGIBLE RENTAL POPULATION

• Rental households must serve tenants with gross annual income at or below 80% of area median income.• Tenants may also be elderly and/or have special needs.

INELIGIBLE ACTIVITIES

• Pledge HTF funds as support for tax exempt borrowing by local grantees.

• Provide off-site improvements, neighborhood infrastructure, or public facility improvements.

• Pay administrative expenses of local governments.

• Provide assistance to private, for-profit or private non-profit owners of rental property.

• The applicant must be the owner of the rental project.

• Homeowner rehabilitation projects.

• Homeownership projects including down-payment assistance and development of units for sale.

MATCH

• Proposals must include a 50% match for the Competitive Grant funds.

• Grants from other agencies or foundations;

• Federal sources such as CDBG or USDA Rural Development;

• Non-THDA HOME funds;

• Contributions from local churches or individuals;

• Bank loans;

• Supportive services required for special needs projects.

PROGRAM REQUIREMENTS

INCOME LIMITS

• Competitive Grants use the income limits established by the US Department of Housing and Urban Development for the HOME program; and • Household income as defined by the Section 8 Rental Assistance

Program.• Attachment Three: Income Limits

COMPLIANCE PERIOD

• Rental Programs• A compliance period of 5 years, forgiven at the end of the term.• Compliance period is secured by a Grant Note, Deed of Trust and Restrictive

Covenant.• The Competitive Grant legal documents must be in place before the owner of

the rental project can begin drawing funds.

PROPERTY STANDARDS

• Rental units constructed or rehabilitated with Competitive Grant funds must meet all applicable local codes, rehabilitation standards and zoning ordinances at project completion.• In the absence of local codes, the units must meet the current State

approved edition of the applicable International Code.

PROPERTY STANDARDS

• Newly constructed units must also meet the current edition of the International Energy Conservation Code.• Rental units must, at a minimum, continue to meet THDA Property

Standards on an annual basis.• Additional points will be awarded for new construction projects

incorporating accessibility features.

RENT LIMITS

• Maximum rents are the High HOME rents.• Attachment Four: HOME Rents

• Property owners are encouraged to charge tenants no more than 30% of their gross monthly income as rent.• The published rents include utilities. The cost of utilities paid by

tenants must be subtracted from the published rent to determine the maximum allowable rent.

ON-GOING OBLIGATIONS FORRENTAL PROJECTS

• Annual income certification of each tenant;• Adherence to Competitive Grants rent limits;• Compliance with THDA Property Standards; and• Reporting to THDA.

PROCUREMENT

• Solicitation of bids for goods, materials, services and/or equipment must be open and competitive.• Local governments and non-profit organizations must follow their

procurement policies.• At a minimum, there must be an established procedure and written

rationale for selecting the successful bid or proposal.

FAIR HOUSING AND EQUAL OPPORTUNITY

• Successful applicants must comply with both state and federal laws with regard to fair housing and equal opportunity.• No person can be excluded from Competitive Grant units on the basis

of race, color, national origin, religion, disability, familial status or sex.

FAIR HOUSING AND EQUAL OPPORTUNITY

• Efforts should be made to assure minority- and female-owned businesses are offered opportunities to bid on service, material and construction contracts.• Grantees must have procedures to provide information and to attract

eligible tenants without regard to race, color, national origin, religion, disability, familial status or sex.

MARKETING

• Successful applicants must develop marketing and public relations plans to accentuate the achievements of the Housing Trust Fund.• Grantees will be required to submit data and beneficiary stories to THDA.

2015 Spring Round Application

SUBMISSION INSTRUCTIONS

• One original application with supporting documentation.• No faxed or e-mailed applications.• No Binders or folders.• No cover page is necessary.• No staples. Binder clips are the best.

ALL APPLICANTS

• Complete pages 2-12 of the application.

• Answer all questions. Mark NA if not applicable to your project.

• Attach a copy of most recent financial audit.

• Non-profit agencies must include Attachment One: Non-Profit Checklist and supporting documents.

• All projects must include Attachment Two: Rental Housing Feasibility Worksheet.

NON-PROFIT CHECKLIST

• Certificate of Existence dated no more than 90 days prior to the application deadline date.

• Copy of 501(c)(3) letter from IRS or IRS documentation confirming 501(c)(4) status.

• Copy of Charter, By-Laws and resolutions approving submission of this application.

• One page explanation of how the Board of Directors is involved in the operation of the Agency.

• Attach copy of the minutes from the most recent Board meeting at which this application and/or proposal were discussed.

NON-PROFIT CHECKLIST

• Copy of business plan or strategic management plan.

• Documentation of operating funds from other sources.

• Explanation of any other programs operated by your agency and funding sources.

• One page explanation of your agency’s experience in housing.

• Attachment Five: Individual Disclosure.

• Attachment Six: Corporate Disclosure.

APPLICATION EVALUATION

THRESHOLD CRITERIA

• The application is complete.

• Note: The cure period has been eliminated.

• The proposed activity is eligible.

• The project serves the eligible income populations.

• The project is ready to go except for gap financing to be provided by Competitive Grant funding.

• The project is physically, financially and administratively feasible.

COMPETITIVE GRANT MATRIX

• A total of 100 points will be awarded in the following categories:• Capability• Need• Innovation

CAPABILITY• Program Design Up to 25 Points

• All necessary components to complete the project are identified.

• Sites have been identified and applicant has site control.

• The Rental Feasibility Worksheet shows a need for the Competitive Grant funds.

• For special needs projects, the supportive services are in place.

• The applicant has the capacity to secure the matching funds and commitment letters are included in the application.

• The project will serve low and/or very low income households.

• If new construction, the project will include design features to make the units accessible, such as a step-free entrance; 32-36” interior and exterior free passage; and easy use by an individual confined to a wheelchair.

CAPABILITY

•Applicant Capacity Up to 25 Points

•The applicant has experience in providing housing to low and very low income populations.

•The applicant has demonstrated the capacity to manage rental programs.

•The agency’s budget reflects multiple sources of funding.

CAPABILITY

• If the applicant has previous experience under Competitive Grants or HOME the applicant has demonstrated an ability to:

• Draw down funds.

• Complete the project in a timely manner.

• Operate a program within program guidelines; and

• Respond in a timely manner to client concerns or complaints, contractor concerns or complaints, and requests by THDA staff for information and/or client stories.

NEED - Up to 20 Points

• The application has demonstrated a need for the proposed project.• Meeting an area need that is not being duplicated by other agencies.• The need is so great that it exceeds the capacity of one organization to

provide the services.

INNOVATION - Up to 20 Points

• The proposal demonstrates a creative approach to affordable housing for low and very low income households.• Unique partnerships;• Variety of funding sources;• Use of alternative energy sources or energy conservation measures; and/or• Innovative means to address housing needs.

QUESTIONS