2004 APPLICATION WORKSHOP

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

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

LIHTC Policies

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.

Additional Policies Applicable to HOME Funded Projects

HOME Policies

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


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


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)


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


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


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


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 EnvironmentalFloodplain 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 EnvironmentalWetlands 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

Provide required 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 EnvironmentalHistoric 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 EnvironmentalOther 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 UtilitiesProject AmenitiesSite AccessPhysical Needs AssessmentsSite Information

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

Site Zoning

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

Operating Utilities

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

Required Amenities

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.

Site Access

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


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


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

Site Information

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 Lawsand 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: PurposeProperty AddressAmountInterestTerms and Conditionsand 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.

Requirements for Owners, Developers and Management

Companies

7. Experience

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 projectRegular, continuous and substantial involvement, orExecutive 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 Concentration1. Map of proposed project site2. Site map of proposed neighborhood3. Census track or enumeration district data of proposed

neighborhood population by:a. Household typeb. Tenure typec. Income group and housing conditionsd. Race of residents

Submit the above information in Tab 18 along with Certification form B-1.


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


Racially Mixed Area

1. Map of proposed project site2. Site map of proposed neighborhood3. Census track or enumeration district data of proposed neighborhood

population by:

a. Household typeb. Tenure type c. Income group and housing conditionsd. Race of residents

4. Based upon the proposed number of units, show what increase of minority residents to non-minority residents will occur



Non-minority1. Map of proposed project site2. Site map of proposed neighborhood3. Census track or enumeration district data of proposed neighborhood

population by:a. Household typeb. Tenure typec. Income group and housing conditionsd. Race of residents



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 applicable3. Relocation/Displacement Spreadsheet (Form L-5) – Must be completed4. 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


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


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



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



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 PointsDesigned to foster the development of housing for families and to encourage community activities from within the neighborhood

1. Basic Requirements 6 pointsAmenities Certification C1 (OAH Form D-3)

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

3. Optional Services 1 - 3 pointsServices 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 pointsAmenities 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


Elderly Households 20 pointsHousing 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).


Housing for Older Persons 20 PointsDesigned 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.


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 sectionScattered 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


Governmental PBRA– Executed agreement

Amount of Rental Assistance # of units assisted Duration of assistance Terms/conditions


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

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, or20-50 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

Examples - Income & Rent Restrictions

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 ProjectDevelopment 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 andaveraged 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


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.


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 audits2. 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.

Documents

2004 APPLICATION WORKSHOP