Multifamily Application Training 2010 Consolidated Request for Proposals

Multifamily Application Training2010 Consolidated Request for Proposals 2011 Housing Tax Credits

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Agenda OverviewAssistant Commissioner of Programs - Patricia HansonResearch Director - John PattersonFunding, Priorities and Application Changes Diana Lund Program Updates:LAAND Carol DixonSupportive Housing Amy LongHousing Tax Credit Kasey Kier

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Minnesota Housing Assistant Commissioner of ProgramsPatricia Hanson

Minnesota Housing Research Director John Patterson

Community ProfilesObjectives:Identify higher need communitiesIdentify the type of investment neededBasis:20 indicators, for example:Homeownership ratePercentage of renters who are cost burdenedJob growth5 categories of need

Categories of NeedOpportunities for Economic IntegrationOpportunities for Community StabilizationOpportunities for a Growing WorkforceOpportunities for Increasing Emerging Market HomeownershipOpportunities for Additional Affordable Rental Housing

Community Profile LayoutCounty and large city analysesSections:Background5 Need Categories (Maps)Special Maps for 2010 Applications20 Indicators (Maps)20 Indicators (Data Tables)

Special Maps for 2010 ApplicationsForeclosures Highly impacted zip codesBased on foreclosures, delinquencies, and unemploymentEconomic Integration High income census tractsBased on Dept. of Revenue data

Using Community ProfilesData resourceTo be improved over time:Smaller geographies census tracts rather than counties and citiesFeedback from partnersStill provides useful informationCombine profile information with local and neighborhood-level data

Multifamily Construction CostsCost containment is a priorityExamining costs more closely:Industry data from RSMeansPast projects funded by Minnesota HousingExpertise of agency staffRSMeans Construction Costs: Basic 1 to 3 story apartment - $105K to $110K per unit in Minneapolis (excludes acquisition and soft costs)Minnesota Housing projects have cost 18% more after controlling for several factors

Construction Cost FactorsType of work (e.g. new construction vs. rehab)Building type and featuresLocationSize of projectSize of unitsAdded costs (e.g. historical preservation, environmental abatement, etc.)

Construction Cost ReviewMinnesota Housing will assess costsIf costs are higher than expected, will ask for further justification or a reduction in costsAssessment will include allowances for cost factors

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RFP Preferences

Foreclosure RemediationTransit Oriented DevelopmentsCost ContainmentEconomic Integration

Foreclosure RemediationMultifamily foreclosure criteria:Acquire and rehabilitate a foreclosed property located in a designated high-impact foreclosure zip codeAcquire and rehabilitate a foreclosed property that is not located in a designated high-impact foreclosure zip codeAcquire and/or rehabilitate a property that is located in a designated high-impact foreclosure zip code

Foreclosure RemediationHigh need zip codes122 eligible zip codes statewideBased on each zip codes:Foreclosure/REO rateDelinquency rateUnemployment rate Proportion of non-prime, ARMs yet to reset

http://www.mnhousing.gov/resources/apply/multifamily/MHFA_009340.aspx

Foreclosure RemediationHigh need areas outside the high-need zip code if:Target area has a 10% sheriff-sales rate or moreTarget area must have a minimum of 200 residential parcels

Foreclosure RemediationApplication requirementsTarget area map with identifying boundaries, including proposed development site(s)Total sheriff-sales for the target area in 2007, 2008 and 2009 (with a separate figure for each year)Number of residential parcels in the target area (not the number of residential households)See guidance on the RFP website

Foreclosure RemediationSheriff sales rate calculationTotal of 2007, 2008 and 2009 sheriff sales in the target area divided by the number of residential parcels in the target areaPartially completed new subdivisions are ineligible to be included in the sheriffs sale calculation

Transit Oriented DevelopmentsDevelopments located in the 7 county metro areaWithin mile radius from Red Line stationWithin -mile radius from Blue Line public transit fixed routeWithin -mile radius of Expressed Bus station/park and rideDevelopments located in Greater Minnesota Located within mile radius from a public transit fixed route stop or station

http://www.mnhousing.gov/resources/apply/multifamily/MHFA_009341.aspx

Transit Oriented Development - Metro http://www.mnhousing.gov/resources/apply/multifamily/MHFA_009341.aspx

Transit Oriented Development Greater MNProvide a map identifying the location of the development within mile radius from a public transit fixed route stop or stationInclude a copy of the route, span and frequency of the service

http://www.dot.state.mn.us/transit/Map/index2.html

Cost Containment MeasuresThe agency will be carefully reviewing each proposal for cost containment measures, without compromising the quality of the development.

Economic IntegrationMultifamilyThe proposed development provides at least 25% but not greater than 50% of the total units in the development as affordable units. ORThe proposed development provides community economic integration by providing housing located in neighborhood with average incomes 150% or more above HUDs area median family incomes.http://www.mnhousing.gov/resources/apply/multifamily/MHFA_009339.aspx

RFP Funding AvailabilityDeferred loan funding approximately $24 millionPreservation ARIF (PARIF) - $7 millionPublicly Owned Housing Program (POHP) - $6.5 millionEnding Long-Term Homelessness Initiative Fund (ELHIF) -$7 millionFlexible Financing for Capital Costs (FFCC) - $3.5 millionAgency Wide Funding PoolEconomic Development and Housing Challenge Program (EDHC) Approximately $12 million (Agency-wide)

RFP Funding AvailabilityLow and Moderate Income Rental Program (LMIR) - up to $20 million Funding Partners Approximately $4.4Metropolitan Council Local Housing Incentive Account (LHIA)Minnesota Department of Employment and Economic Development (MN DEED) - Small Cities Development Program (SCDP) Greater Minnesota Housing Fund (GMHF)Department of Human Services Adult Mental Health Division (DHS-AMHD), Housing with Supports for Adults with Serious Mental Illness (HSASMI) Program Operating Subsidy

Application Materials Location http://www.mnhousing.gov

Application Information and Requirements

Master Application Checklist

Application Upload Utility

Multifamily Rental Housing Common Application

Application DeadlineSubmittal Deadline Tuesday, June 15, 2010, 5:00 p.m. Minnesota Housing 400 Sibley Street, Suite 300 St. Paul, MN 55101

Application SubmittalSubmittalSend your electronic documents to https://online2.mhfa.state.mn.us/rfp-upload/index.aspxExecuted original PLUS 2 copiesFor Housing Tax Credits, the Application must be signed by one general partner (and the non-profit partner, if appropriate), officer, director or corporate officer

Land Acquisition for Affordable New Development (LAAND)Initiative of Minnesota Housing, Family Housing Fund and Metropolitan CouncilSee Initiative Description on web for detailsLand costs an impediment to producing affordable housingAcquire sites for future development consistent with communitys future affordable housing goals and strategic growthDevelopment to occur within 5 years after acquisition

LAANDEligible applicantsLocal units of government and/or their housing or development agencies or non-profit organizations.Met Council Funding:Only communities within the seven-county metropolitan area participating in the Livable Communities Act Local Housing Incentive Account program area eligible to receive Metropolitan Council LAAND loan (or LHIA grant) funds.Affordability targets20% of units must be affordable to households with incomes:At or below 60% Area Median Income (AMI) in MetroAt or below 80% AMI in Greater Minnesota

LAANDLocation CriteriaConsistency with strategic growth concepts in Initiative descriptionSpecific transit ways (2030 Transit way System)Proximate to bus service, other transit options (see Web for specific transit way information)Funding priorities Strategic growth location criteriaDevelopment facilitates economic integrationSites near employment/wage growth centers or with low-wage jobs as a greater share of local employmentFinancial or in-kind contributions that improve housing affordability

LAANDComplete Single family standard RFP or CRV application and supplement LAAND questions on webNote some application sections do not require completion (**)Questions? Contact: Carol Dixon at 651-296-0756 or [email protected]

Ending Long Term HomelessnessGoal: To end long term homelessness

Strategy: Create 4,000 supportive housing opportunities

Need: An estimated 4,400 experience long term homelessness, including 800 children57% report serious mental illness33% report chemical dependency35% report symptoms of brain injury54% report prior incarceration14% report status as military veterans

Ending Long Term HomelessnessResults to date: 2,800 housing opportunities funded62% scattered site38% site based

1,754 households have housing41% families w/ children39% single men20% single women

Ending Long Term Homelessness

Housing Opportunities Created Under the Business Plan

Chart1

2004274

2005667

4151091

9351684

14992492

17092661

20102800

Final Goal4000

People in Housing

Funded Units

Sheet1

Final Goal:4,000 units

Status on 12/31/092,615 units

1,709 households in housing as of 09/30/2009


1,499 households in housing


935 households in housing


415 households in housing

Status on 12/31/05667 units

Status on 12/31/04274 units

So leave the green the same = current units

Change the burgandy to People in housing

and the final bar on the graph should show the 4,000 goal

THANK YOU!

Sheet2

People in HousingFunded Units

2004274

2005667

20064151091

20079351684

200814992492

200917092661

20102800

Final Goal4000

Sheet2

People in Housing

Funded Units

Sheet3

Ending Long Term HomelessnessSupportive housing is working86% of households served maintained housingEmergency expenditures are reducedPublic funds are used more effectivelySuccess stories

Ending Long Term HomelessnessEnding LTH agency priority2009 Wilder Study22% increase in homelessness27% increase in homeless families w/ children39% increase in homeless unaccompanied youth 39% adults homeless due to eviction, foreclosure, or failure to renew lease (up from 32% in 06)Business Plan recalibration

Ending Long Term HomelessnessNext Steps:Contact agency staff for technical assistancePartner with local service providersPartner with community stake holders

Ending Long Term HomelessnessThank you!Fantastic results to dateLessons learnedPartnerships & collaborationIncreased awareness & understanding

For More Information Supportive Housing Contacts:Amy Long, 651-296-0751 [email protected] Doresky, [email protected] Haugen, [email protected] Farden, [email protected] Vollbrecht, [email protected] Choi, [email protected]

400 Sibley Street, Suite 300St. Paul, MN 55101651-296-7608 * 800-657-3769 * TTY 651-297-2361www.mnhousing.gov

2011 Housing Tax Credits

2011 Housing Tax CreditsApplication TimelineRound 1Applications Due: June 15, 2010Selections Announced: October 28, 2010Round 2Application Due: February 1, 2011Announcement Date: April 28, 2011

2011 Suballocators & Joint PowersSuballocators Apply directly to Suballocating Agency (nonprofits may apply to both the suballocator and to Minnesota Housing. For profit developers may ONLY apply to the suballocator)City of Minneapolis City of St. Paul Dakota County Washington CountyJoint Powers Administered by Minnesota Housing (apply to Minnesota Housing and submit a copy of the entire application to the Joint Powers Suballocator)City of DuluthCity of Rochester City of St. Cloud

Tax Credit Minimum RequirementsThreshold Requirements (Round 1)Metropolitan Area Greater MinnesotaSpecial PopulationsPreservationRDMinimum Set-Asides20% at 50%40% at 60%Minimum Points30 for Competitive Credits40 for non-competitive Tax Exempt Bonds with HTC

2011 Housing Tax CreditsGeographic Distribution of Credit2011 credit cap: $11,059,049$2.10 per capita5,266,214 population figure10% is set-aside for qualified nonprofitsState divided into two geographic areasGreater Minnesota PoolMetropolitan Pool

2011 Geographic DistributionGreater Minnesota: (38%) $3,582,196RD/Small Projects (set-aside)$ 200,000 $3,782,196Metropolitan: (62%)Minneapolis$1,257,639Saint Paul$ 937,367Washington County$ 483,802Dakota County$ 893,553MN Housing Admin. $2,598,588 $6,170,949

2011 Geographic DistributionNonprofit Set-Aside (10% of annual credit)Greater Minnesota$ 420,244Metropolitan$ 685,660 $ 1,105,904

Overview of changes: Minnesota Housing 2011 QAP

Overview of 2011 QAP ChangesSeven principle changesSix impact scoring criteriaNo statutory revisions for 2011

Local/Philanthropic ContributionsExcludes loans from the calculation unless they are deferred with a minimum term that is co-terminus with the HTC declaration at or below the AFRClarifies that contributions from any part of the ownership entity will be considered GP cash unless from a local govt entity or charitable organization pursuant to a funding competition

Readiness to ProceedFor syndication proceeds to be includedMust be awarded in a previous roundMust provide verification of syndication proceedsAdded 4 non-financial readiness itemsLand use and zoning approvals Title work and survey (survey only if located on tribal trust land)Verification all infrastructure is in placeDraft building permits

Preservation of Federally AssistedPoints increased from 10 to 20 Preserves federally assisted low income housing at risk of converting to market rate within 2 years of the applicationApplicant agrees to continue renewals of PBA and Maintain the HTC requirements for 30 yearsIdentity of Interest requirementAppraisal required post selection

Smoke Free BuildingsInstitute and maintain a written policy prohibiting smoking in all units and common areas Required for term of HTC declarationInclude procedures for transitioning to smoke-free for existing residentsConsequences determined by owner and incorporated into the written policySupports mission of sustainable, healthy housing and reduces management costs

New RFP and HTC PrioritiesTransit Oriented Development or mile of public transit station or stopsRefer to Met Council transit mapsTemporary Priority Foreclosed PropertiesCommunity Economic Integration68 eligible census tracts in the metro areaPoints only available in Round 1

Application NotesUse 2011 Tax Credit Materialshttp://www.mnhousing.gov/housing/tax-credits/allocation/MHFA_009377.aspxDocument, document, documentAttach documentation to Self-Scoring WorksheetDeclaration/LURA

For More HTC Information ContactKasey Kier [email protected] Bob Porter [email protected] Karen Hassan [email protected] Hagelberger [email protected] Sibley Street, Suite 300St. Paul, MN 55101651-296-7608 * 800-657-3769 * TTY 651-297-2361www.mnhousing.gov

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ContactsNorthwest Region Phil Hagelberger 651.297.7219 [email protected]

Northeast Region Terri Parker 651.297.5141 [email protected] West Central Region Ted Tulashie 651.297.3119 [email protected] Central Region Wendy Bednar 651.297.3540 [email protected] Southeast Region Susan Thompson 651.296.9838 [email protected] Southwest Region Phil Hagelberger 651.297.7219 [email protected]

ContactsRFP Coordinator Diana Lund 651.296.7991 [email protected]

Housing Tax Credit Lead Kasey Kier 651.284.0078 [email protected]

Supportive Housing Lead Amy [email protected] LAAND Lead Carol [email protected]

Multifamily Front Desk

651-297-3294 or1-800-657-3647

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Multifamily Application Training 2010 Consolidated Request for Proposals

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