Developers’ Workshop

Agenda

1. Welcome & Introductions

2. Draft 2016 QAP & Appendix B

3. Olmstead Settlement

4. Questions

2016 QAP

Disclaimers

•Not covering every topic

• Focusing on significant changes and what you need to know before submitting application

•Applicants are responsible for knowing rules

• If questions are not covered, ask today or follow up with staff

QAP Status

• First draft released on September 30

• Public Hearing was held on October 14

• Comments are due by November 2

• Can submit comments more than once

•As always, specificity is very helpful

• Second draft released mid-November

• Looking for final approval early December

QAP Changes• County Income Designations

• Application Requirements

• Site Scoring Criteria

• Workforce Housing Loan Program

• Developer Experience

• Credits per Unit Average

• Targeting Plans, Bond Requirements

• Underwriting Changes

• Appendix B - Design

County Income Designations

• Follows the 2015 County Tier Designations published by NC Department of Commerce

• Tier 3 = High, Tier 2 = Moderate, and Tier 1 = Low

• Commerce considers four factors:– Adjusted property tax base per capita– Percentage population growth– Median household income– Average unemployment rate

County Income Designations

• The following 9 counties will change for 2016:

– Haywood (Moderate to High)

– Guilford (High to Moderate)

– Burke, Caldwell, Hoke, Mitchell (Low to Moderate)

– Ashe, Macon, Nash (Moderate to Low)

Application Requirements

•Only one application can be submitted per site

– May not submit both 9% and 4% application

– May not submit family and elderly

Site Scoring

•Grocery, Shopping and Pharmacy all must be separate establishments to qualify for points.

• The ability to double-count an establishment has been removed (for example: Walmart Supercenter counting as Grocery and Shopping or Harris Teeter counting as Grocery and Pharmacy).

•Other Service will not qualify for points if it is located within a Grocery, Shopping or Pharmacy establishment that is receiving points.

• Points are now available for an uncovered bus stop.

Workforce Housing Loan Program

• $12.5 million appropriation for 2016, $15 million for 2017

•Only Metro counties are ineligible for WHLP

• For all other counties, the combination of local funds plus the WHLP request cannot exceed the initial WHLP calculated maximum

Workforce Housing Loan Program

• Example:

WHLP calculated maximum $600,000

Loan from City/County -$250,000

Maximum WHLP request $350,000

• Requesting WHLP may result in an application being ineligible due to inadequate funds

Developer Experience and General Contractor

• Points for Developer Experience and General Contractor have been eliminated

•A Principal with 6 tax credit properties and 200 units outside of North Carolina is now eligible for an award

Credit per Unit Average

• Points will be awarded based on a projects credits per unit request as it relates to the average credits per unit requested for a given region

•All full application projects in a region will be used to calculate the average, including those ineligible for award

Targeting Plans,Bond Requirements

• Primary change is to remove any reference to Local Lead Agencies

•NCHFA will approve targeting plans

• Bond projects are no longer required to include deeper income targeting for any units

•As part of Olmstead Settlement Initiative, bond projects must now comply with the Targeting Plan section of the QAP (10% of units)

Underwriting Changes

•Any project requesting RPP funds must use HOME rents

–Rationale: an Applicant does not know what type of funds the project will receive upon award and the project needs to be structured in such a way that it works should it receive HOME funds

• Construction contingency for new construction projects must be exactly 5% and exactly 10% for adaptive reuse and rehabilitation projects.

Appendix B - Design

•All property entrances must have a brick or stone monument sign with lighting

•Windows must meet current Model Energy Code

• Clarified one elevator per 60 units language to be a minimum of 48 units in a building

•All residential units must have a double bowl sink

Appendix B - Design

• If providing laundry hookups, a laundry room closet is required

• Tubs and showers must be one-piece and a minimum of 32” in width in new construction projects

• Type A and B unit tubs and showers must have wood blocking installed on the bathing fixture

Appendix B - Design

• The use of duct board is prohibited

•Dehumidifiers can be an alternative installation to a hard duct, vented range hood

• Clarified when Agency approval is required for parking less than QAP minimum

•All buildings must be within 200 feet of a refuse collection area unless served by a single roll-off dumpster

Questions?

Carryover Loan Program

• 14 loans to 2014 awards; available for 2015 new construction 9% awards

•Only covering up to 95% of land (max of $1M)

•Not paying for any other costs, owner needs another source for the remainder

•Will have first priority deed of trust on the land

• Paid off with the construction loan; otherwise the term is 12 months