Publicly Owned Housing Program(POHP) Orientation & Overview · 4. Construction Loan Closing •File...
Transcript of Publicly Owned Housing Program(POHP) Orientation & Overview · 4. Construction Loan Closing •File...
Publicly Owned Housing Program(POHP) Orientation & Overview
Irene Ruiz-Briseno| Preservation Underwriter
David Schluchter | POHP Program Manager
05/23/2019
Our Mission
Housing is the foundation for success, so we collaborate with individuals, communities and
partners to create, preserve and finance affordable housing.
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POHP Funded Developments (2012-2018)
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2018 POHP RFP
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• Applications Received:
• 20 different HRAs applied for funding
• 23 developments: 4 Metro and 19 Greater Minnesota
• Requests in excess of $12.3 million
• Recommended for Funding:
• 18 HRAs selected (which includes 3 on waiting list)
• 19 developments (which includes 3 on waiting list)
• $7,668,195 recommended for funding
• $2,273,562 on waiting list
Congratulations!
Now… What?
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Today’s Agenda
1. Things You Need To Know
• Terms and Conditions
• Program Resources
• Additional Considerations
• HUD Requirements
2. Selection & Next Steps
• Box.com
3. Due Diligence Process
• Six Phases
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Things You Need To Know:Terms and Conditions
• POHP Awards shall be structured as a zero-interest deferred End Loan or Construction Loan
• 20 year term; 35 year compliance period
• Your future funding award must comply with all POHP requirements as outlined in the Program Guide
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Things You Need To Know:Accessing Program Resources
POHP Webpage:
• www.mnhousing.gov
• Multifamily Rental Partners
• Deferred Loans
• Publicly Owned Housing Program
• View more information
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Things You Need To Know:Additional Considerations
• B3 – Buildings, Benchmarking, and Beyond
MHFA Staff will work with CSBR to determine applicability
• State Pre-Design
Applicable if construction costs exceed $1,500,000
• Energy Rebates
Katherine Teiken, Clean Energy Program Specialist
Common Items: Boilers, Furnaces, Hot Water Heaters, Insulation
• Relocation/Temporary Housing During Renovations
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Things You Need To Know:Important HUD Requirements
Procurement:
A/E Services, Environmental
Consulting, Contract Awards – must
comply with the HRAs approved
procurement policy
5-Year Capital Fund Action
Plan:
Your POHP project should be included in your 5-year plan
Davis Bacon:
Applicable if using federal funds (capital fund program) as
leverage
Environmental Review:
Should be completed and
approved
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Selection & Next Steps Letter
• Selection Letter
• Important Next Steps:
• Approved scope of work items
• Total POHP funding
• Leverage amount
• Schedule a project launch meeting
• Request access to Box.com
• Construction Loan versus End Loan
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Due Diligence Process
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1. Procurement of Architect/Engineer
2. Environmental Reports and Design Phase
3. Bidding and Contract Awards
4. Construction Loan Closing
5. Rehabilitation
6. Rehabilitation Complete / Project Closeout
Due Diligence Process
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1. Procurement of Architect/Engineer
2. Environmental Reports and Design Phase
3. Bidding and Contract Awards
4. Construction Loan Closing
5. Rehabilitation
6. Rehabilitation Complete / Project Closeout
Due Diligence Process1. Procurement of Architect/Engineer
• The HRA should conduct an RFQ for architectural and/or engineering services if required
• The RFQ should contain all of the information the proposers need to know in a manner that is easy to follow:
• Advertisement/Purpose
• Program Information
• Scope of Services
• Submission and Evaluation Requirements
• Schedule and Required Information
• Attachments
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Due Diligence Process1. Procurement of Architect/Engineer
• Architect Contract
• Draft must be reviewed and approved by MHFA
• Must include Jobs Reporting provision language
• Architect’s Evidence of Insurance
• SWIFT Vendor ID Number
• Helpline 651-201-8106
• W-9 Form
• EFT Form
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Due Diligence Process2. Environmental Reports and Design Phase
• Authority’s Enabling Resolution
• HUD Declaration of Trust
• Owner’s Evidence of Insurance
• Environmental Reports
• Asbestos
• Lead-Based Paint
• Bidding Abatement
• B3 or Limited Scope Form
• Bid/Construction Documents
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Due Diligence Process3. Bidding and Contract Awards
From the HRA:
• Owners and Encumbrance (O&E) Report
• Authority’s Certified By-laws
• Authority’s Borrowing Resolution
• Architect’s Opinion Letter
• Draft Documents from other sources (e.g. DEED SCDP, FHLB)
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From the General Contractor:
• Construction Contract• Draft must be reviewed and
approved by MHFA
• Must include Jobs Reporting provision language
• Building Permits
• Contractor’s Evidence of Insurance
• Sworn Construction Statement
• Draft Payment and Performance Bonds
Due Diligence Process4. Construction Loan Closing
• File assigned to a Loan Closer
• Previously submitted due diligence forwarded to Legal/Closing for review
• Invoices and Supporting Documentation needed for Closing Draw
• You will work with your assigned Draw Technician to prepare a payee list and initial draw
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Due Diligence Process5. Rehabilitation
• After a successful loan closing, a notice to proceed can be issued
• Monthly Draw Process
• Draw Form
• Contractor Pay Applications
• Proof of Payment Form
• Funds disbursed via SWIFT Vendor number
• Change Orders
• Require MHFA review and approval
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Due Diligence Process6. Rehabilitation Complete / Project Closeout
• Certificate(s) of Substantial Completion
• 100% Completion
• Building Permit closeout
• Environmental Documentation
• Final Sworn Construction Statement
• Photos of Completed Work
• Completed Jobs Reporting
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Communication Coordination
• It is not possible to over communicate throughout the entire POHP process:
• Due diligence
• Closing
• Construction
• Project close-out
• Communicate with all partners including:
• Program Manager
• Loan Processor
• Assigned Staff Architect
• HUD Representative, as applicable
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POHP Program Staff
David Schluchter – POHP Program Manager
[email protected] | 651.296.8161
Irene Ruiz-Briseno – Preservation Underwriter
[email protected] | 651.296.3837
Dani Salus – Preservation Manager
[email protected] | 651.294.3178
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Technical/Architectural Staff
Erika Arms – Architect
[email protected] | 651.296.9850
Jerry Narlock – Architect
[email protected] | 651.215.6239
Mike Thomas – Architect
[email protected] | 651.276.1170
Katherine Teiken – Clean Energy Program Specialist
[email protected] | 651.296.7610
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Thank you!
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