California Department of Housing and Community Development - PowerPoint PPT Presentation


Title: California Department of Housing and Community Development


1
Supportive Housing Multifamily Housing
Program2014 Funding Round
  • California Department of Housing and Community
    Development

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Supportive Housing Multifamily Housing Program
(SHMHP)General Fund Summary
  • 100 million allocation for affordable housing
    2014-15 State Budget (General Fund)
  • Funds include
  • MHP General 47.5 million
  • Supportive Housing 47.5 million
  • Administrative Costs 5 million

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SHMHP NOFA October 24, 2014
  • Funding Available
  • 47.5 million
  • 7 million maximum loan amount per project
  • Function of unit size, location and affordability
    level

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SHMHP Program Changes
  • Sponsors with projects whose per unit cost is 30
    or more than the historical average will be
    required to (historical data available on HCD
    website)
  • Provide written explanation of unusual cost
    features
  • Explain why an award would be sound public policy
  • Submit recommendation from relevant public entity
    endorsing and supporting the project
  • Be aware that HCD reserves the right to reject
    applications if the development costs cannot be
    reasonably justified

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SHMHP Program Changes Carried Over From Prior
Rounds
  • AB 1460 Priority points for projects which
    utilize sustainable building methods (D7 in
    Scoring)
  • USDA RD loan commitment requirements (NOFA
    Section C)
  • Scrutiny of rehabilitation projects (NOFA Section
    C)

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Timetable
NOFA issued October 24, 2014
Application forms available October 24, 2014
Applications due December 23, 2014
Loan and Grant Committee Meeting April 2015
Awards issued April 2015
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MHP Program Overview
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MHP Regulations
  • Governed by two sets of regulations
  • Multifamily Housing Program Specific Regulations
    (MHP Regulations)
  • Uniform Multifamily Regulations (UMR)
  • Available at
  • http//www.hcd.ca.gov/fa/mhp

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Eligible Sponsor
  • Non-profit, for-profit and local public agencies
  • Demonstrate
  • Experience developing, constructing, owning and
    operating affordable rental housing projects
  • The entity that submits information for the award
    of the experience points (D3) must be the named
    Sponsor on the Application
  • Must demonstrate site control
  • MHP Section 7303 and UMR Section 8303

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Eligible Project
  • Multifamily rental and transitional housing
    projects of five or more units
  • New construction
  • Acquisition and rehabilitation
  • Rehabilitation
  • Conversion of nonresidential structures
  • Must not have started construction as of the
    application due date
  • MHP Section 7302

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SH Emphasis
  • Emphasis on units for
  • Homeless or at risk of homelessness and
    disabled adult
  • Disabled mental illness, HIV/AIDS, substance
    abuse, developmental disability or long-term
    chronic health condition
  • Maximum Income 30 Area Median Income

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Eligible Use of Funds
  • Costs attributable to Restricted units for
  • Construction/rehabilitation
  • Off-site/on-site improvements
  • Capitalized operating and replacement reserves
    (replacement reserves can be funded from
    Operating Income)
  • Child care facility and social service facility
    integrally linked to Project
  • Developer fee
  • MHP Section 7304

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Permanent Only Loans
  • Loan Terms
  • 55 year term
  • 3 percent simple interest (principal and interest
    deferrable)
  • First 30 years mandatory debt service of .42
    percent of outstanding principal balance
  • Next 25 years adjusted to cover HCDs monitoring
    costs
  • Unpaid interest and principal due at end of term

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Program Limitations
  • Payment of state prevailing wages to laborers
    working on MHP-financed projects is required
  • Sponsor distributions limited to 50 percent of
    cash flow (UMR Section 8314)
  • 9 percent tax credit projects are eligible to
    apply for SHMHP funds

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Developer Fee Limits
  • Limit of 1.2 million from funding sources (C7)
  • New construction and substantial rehabilitation
    projects first 30 units, 25,000 per unit. Each
    unit in excess of 30, 9,500 per unit
  • Acquisition and rehabilitation projects without
    substantial rehabilitation first 30 units,
    12,000 per unit. Each unit in excess of 30,
    5,500 per unit
  • Land donations from local jurisdiction or master
    developer may not be counted as capital
    contribution
  • Cash contributions from master developer or other
    entities, which are contingent upon the
    development of the Project may not be counted as
    capital contribution

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Developer Fee Limits (continued)
  • Developer Fee Calculation
  • Includes lease-up fees, incentive fees, or other
    property management fees, in excess of those
    customarily charged by property management firms
    for lease up activities, which are paid to the
    Sponsor, Co-Sponsor or affiliate of the Sponsor
    or Co-Sponsor

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Application Overview
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Application
  • Universal Application used by HCD, TCAC, CDLAC
    and CalHFA
  • http//www.hcd.ca.gov/fa/mhp/
  • SHMHP Application Attachment
  • http//www.hcd.ca.gov/fa/mhp/

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General Instructions
  • Submitting Application
  • Three-ring binder with sleeve on the side
  • Large lettered tabs and divide the binder into
    seven sections Universal Application, Universal
    Application Attachments (1-11), SHMHP Attachments
    A, B, C, D, E
  • Set up dividers with numbered tabs to correspond
    to the Universal Application and MHP Program
    Specific Checklist (A1)
  • For items that are not applicable to your
    application, place a sheet stating the item is
    Not Applicable behind the tab

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General Instructions (continued)
  • COMPLETE original and one duplicate of
    application must be received by HCD no later than
    5 p.m. on December 23, 2014. Postmarks are not
    accepted
  • No facsimiles, late, incomplete, or revised
    applications will be accepted
  • Applications must meet all eligibility
    requirements upon submission
  • Applications with internal inconsistencies will
    not be rated and ranked

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Organizing the Application
  • Submit your application binders in this order
  • Universal Application
  • Universal Application Attachments 1 - 11
  • SHMHP Attachments A, B, C, D, E
  • Remember Once your application is received, it
    must stand on its own to represent your Project

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Disclosure
  • Disclosure of Application
  • Information becomes PUBLIC RECORD available for
    review by the public
  • Use Discretion
  • Sponsor is waiving any claim of confidentiality
    and consents to the disclosure of all submitted
    material upon request

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Project Evaluation
  • Eligibility
  • Feasibility
  • Scoring

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SHMHP Attachment
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A1 Universal Application and SHMHP Checklist
  1. Proof of site control
  2. Current Preliminary Title Report
  3. Relocation Plan with estimated costs
  4. Utility Allowance Chart by unit size
  5. Org. charts for Borrower, Sponsor, Developer,
    Affiliates
  6. Legal Status Questionnaire
  7. Previous Participation Certifications
  8. Evidence of enforceable commitments -
    Construction
  9. Evidence of enforceable commitments - Permanent
  10. Market Study with Rent Comparability Matrix
  11. Current Appraisal

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A2 Eligibility Criteria
  • Other funding sources are insufficient to cover
    Project development cost
  • As of application due date, construction has not
    commenced (demolition is considered
    construction if cost of demolition is included
    in the development budget)
  • Application complete and on MHP approved forms

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A2 Eligibility Criteria (continued)
  • Project site must be free from environmental
    conditions which are infeasible to correct
  • Site is reasonably accessible to
  • Public transportation, shopping, medical
    services, recreation, schools and employment
  • Must demonstrate Article XXXIV authority
  • New construction projects with demolition
  • Number of bedrooms in new Project must be at
    least equal to the number of bedrooms demolished

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A2 Eligibility Criteria (continued)
  • Relocation Eligibility Requirements
  • Application must contain a preliminary Relocation
    Plan
  • Developmental budget must contain funding for
    Relocation Expenses
  • Final Relocation Plan must be approved by the
    Department prior to funding
  • MHP Section 7315

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A2 Eligibility Criteria (continued)
  • Site Control Requirements
  • Must be in the name of the Sponsor
  • Documents showing site control
  • Lease
  • Contract of Sale
  • Disposition and Development Agreement
  • Preliminary Title Report
  • Option to Purchase or Lease
  • Preliminary Title Report required in all cases
  • Not older than six months
  • UMR Section 8303

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A2 Eligibility Criteria (continued)
  • Proof of Site Control
  • Can take any of the forms indicated, but must
  • Be fully executed and unilateral
  • Name seller and purchaser or lessee
  • Include dollar amount and terms of agreement
  • Be signed by all parties
  • Not have expired

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A3 Recycling Program Narrative
  • In an effort to encourage all projects to
    implement as many environmentally friendly
    options as possible, the SHMHP application will
    require a narrative describing how the Project
    will implement and encourage residents to utilize
    project-based recycling programs

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MHP AttachmentSection B - Eligibility
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B1 Tenant Selection Criteria
  • Provide description of your tenant selection
    criteria and describe rationale
  • Senior Projects (B1a) Provide evidence of Fair
    Housing Compliance (legal opinion)

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B2 Organizational Documents
  • Sponsor and Ultimate Borrower (if formed)
  • Articles of Incorporation
  • By-laws
  • Partnership Agreements
  • If organized under laws of different state
  • Submit Certificate of Good Standing for Foreign
    LP/Corp/LLC plus Certificate of Registration

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B3 Governing Board Resolution
  • Authorizes application submission
  • Specifies authorized signatory
  • Must reference the NOFA date and the amount of
    loan request
  • Must state that the entity is authorized to do
    business in California
  • Sample resolutions are available

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B4 Names of Officers and Board Members
  • Be certain not to disclose personal data
    (addresses, phone numbers, etc.) unless the board
    members have authorized the release of such
    information keep in mind that the application
    is a public document

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B5 Environmental Reports
  • Phase I Environmental Site Assessment
  • Other Environmental Reports (i.e. Phase II,
    Asbestos, Lead-based paint)
  • Mitigation information (if applicable)
  • Do not attach database records search

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B6 Maps
  • Parcel map showing site location
  • Scaled Distance Map
  • Two mile radius of site
  • Indicate amenities

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B7 Article XXXIV of the California Constitution
requires voter approval authorizing development
of low-income housing
  • Provide evidence that Article 34 authority exists
    for this Project or
  • Provide a legal opinion letter explaining why
    this Project is exempt from Article 34
    requirements

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SHMHP AttachmentSection C - Feasibility
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C1 Insert the Development Timetable
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Maximum Allowable Loan Amount
  • C2 Worksheet to Determine Maximum Allowable
    Loan Amount
  • C3 Loan Limit Worksheet
  • C4 Shared Cost Calculation Worksheet
  • C5 MHP Loan Calculation Worksheet

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Loan Limits
  • MHP
  • http//www.hcd.ca.gov/hpd/hrc/rep/state/incNote
    .html

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C6
  • This item (evidence of commitment status for
    development funding) has been replaced by
    Universal Application Attachments 8 and 9
  • See SHMHP Application Attachment Instructions
    for what constitutes evidence of commitment

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C7 Developer Fee Calculation
  • Not a required application attachment
  • Tool to assist Sponsor in calculating allowable
    amount of developer fees

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C8 Unit Mix and Income Information
  • Complete the Unit Mix and Income Information
    chart
  • For rental assistance, operating, project based
    and other subsidies attach evidence of commitment
  • If not available, attach other documentation such
    as Reservation or third-party letter stating the
    following
  • Annual subsidy amount
  • Date or expected date of award
  • Term
  • Number of subsidized units
  • If not available, attach Voucher Payment Standard
    and Fair Market Rents from Housing Authority

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C9 Transition Reserves
  • If Project depends on project-based rental
    subsidy, attach calculation of Required
    Transition Reserve funding (MHP Regs 7312f)

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C10 Justification of Services Coordinator
  • Attach narrative description of tenant needs and
    the role of the resident Services Coordinator in
    linking tenants to services

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C11 Estimate of Construction Cost Based on
Prevailing Wage
  • Complete C11 based on prevailing wages

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Insert the Following Documents
  • C12 Copies of Planning Approvals
  • C13 Copies of Resumes for Project Contractor and
    Architect
  • C14 Copies of Schematic Drawings

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Rehabilitation Projects
  • C15 Provide a narrative description of current
    condition of structures
  • C16 Provide a detailed narrative description of
    the intended scope of work
  • C17 Provide a copy of current rent roll including
    household composition and income

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C18 Letter to Local Government
  • Statutory requirement to notify local government
    jurisdiction that application is being submitted
  • Must be addressed to the City Council or County
    Board of Supervisors (whichever is applicable)
  • THIS IS AN ELIGIBILITY THRESHOLD REQUIREMENT

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C19 Operating Expense Comparables
  • Minimum three comparables
  • One market rate one affordable housing
  • Same primary market area
  • Similar size, number of units and amenities

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SHMHP AttachmentSection D - Scoring
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D1 Extent Project Serves Households at the Lowest
Income Levels - 35 points
  • Enter total number of Restricted Units
  • Enter number of units for MHP A, B, or C
  • Scoring sheet will auto calculate

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D2 Extent Project Addresses the Most Serious
Identified Local Housing Needs - 15 points
  • (A) 5 points for either
  • Letter from City or County
  • Local need identified in local housing policy
    document
  • The local housing policy document in which the
    need is identified
  • A statement that the Project meets the need
  • Must specifically name the Project

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D2 Extent Project Addresses the Most Serious
Housing Needs (continued)
  • Or
  • If 70 percent of Project units are reserved for
    Special Needs or Supportive Housing Populations
  • Letter from local government department stating
    that the Project will address a serious local
    housing need as it relates to Special Needs
    Populations

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D2 Extent Project Addresses the Most Serious
Housing Needs (continued)
  • AND Choose option B, C or D - 5 or 10 points
  • (B) - 10 points
  • At least 70 percent of units reserved for Special
    Needs or Supportive Housing Populations or
  • At least 70 percent of units have two or more
    bedrooms and located in Alameda, Contra Costa,
    Los Angeles, Marin, Monterey, Napa, Orange, San
    Diego, San Francisco, San Luis Obispo, San Mateo,
    Santa Barbara, Santa Clara, Santa Cruz, Solano,
    Sonoma, or Ventura counties

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D2 Extent Project Addresses the Most Serious
Housing Needs (continued)
  • (C) - 5 or 10 points
  • Comparable Market Rental Data Forms
  • At least the five nearest comparable projects
  • Senior projects - limit comparables to this
    population
  • One rental data form for each comparable
  • If weighted vacancy rate is lt 3 percent 10
    points
  • If weighted vacancy rate is lt 5 percent 5 points

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D2 Extent Project Addresses the Most Serious
Housing Needs (continued)
  • (D) - 5 or 10 points
  • Vacancy Rate Determined by Market Study
  • Performed by qualified third party per TCAC
    guidelines
  • Senior projects - limited to this population
  • Vacancy rate lt 3 percent 10 points
  • Vacancy rate lt 5 percent 5 points

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D3 Development and Ownership Experience of
Project Sponsor - 20 points
  • Affordable housing developments completed in the
    five years preceding application due date
  • Minimum ten units
  • Exception If proposed project has lt 15 units,
    and 70 percent of units reserved for Special
    Needs Populations, a completed project may have
    five units

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D3 Development and Ownership Experience of
Project Sponsor (continued)
  • Experience points awarded if
  • Project Sponsor or affiliate was sole developer
  • Project Sponsor or affiliate in partnership with
    another entity if
  • Controlled key aspects
  • Had sufficient staff to manage the development
    process
  • Received majority share of developer fee

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D3 Development and Ownership Experience of
Project Sponsor (continued)
  • Projects were developed by staff (or a principal)
    currently employed by Sponsor if
  • Staff had primary responsibility for the
    development process
  • Staff will serve as Project Manager, or directly
    supervise the Project Manager and have primary
    responsibility for managing the development
    process

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D3 Development and Ownership Experience of
Project Sponsor (continued)
  • Only experience of one entity counted
  • Experienced entity must have controlling interest
    in partnership, primary responsibility for
    development, ongoing control of operations and
    sufficient staff
  • Must receive majority share of developer fee

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D4 Percentage of Units for Families, Supportive
Housing or Special Need Populations or At-risk
Rental Housing Developments - 35 points
  • Scoring sheet will auto-calculate for unit size
    and Special Needs Population designated units
  • At-risk Rental Housing must meet TCAC definition.
    Attach completed checklist and supporting
    documentation including third-party legal opinion.

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D5 Leverage of Other Funds - 20 points
  • Deferred developer fee is not included
  • Land value may be included if supported by an
    appraisal
  • Rural, Non-rural As defined by TCAC
  • Attachment D5 will auto-calculate

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D6 Project Readiness - 15 points
  • Enforceable commitments - construction
  • Enforceable commitments - deferred
  • Environmental
  • Have all clearances (NEPA CEQA)
  • If NEPA Responsible Entity is not the locality
    Submit form to appropriate NEPA Responsible
    Entity
  • Phase I Environmental Site Assessment

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D6 Project Readiness - (continued)
  • Local design review approval
  • Public land use approvals (not to include
    building permits and ministerial approvals)
  • Either
  • Fee Title or long-term leasehold (attach PTR or
    documentation of lease agreement)
  • Working drawings at least 50 percent complete
    (attach architect certification)

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D7 Adaptive Reuse, Infill, Proximity to Site
Amenity or Sustainable Building Methods - 10
points
  • Infill Vacant or soon to be vacant lot in
    established or developed area
  • Adaptive Reuse Rehabilitation of vacant
    commercial or industrial buildings in developed
    areas
  • Proximity to Site Amenity Must qualify for any
    points under TCAC
  • Sustainable Building Methods Must qualify for
    any points under TCAC

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Supportive Housing Projects D8 Commitments for
Operating Subsidy or Services Funding - 5 points
  • A commitment for the operating subsidies,
    sufficient to sustain project operations for five
    years or longer from the local government.
  • A commitment for services funding, sufficient to
    make available services adequate to meet the
    needs of the tenants housed in the Supportive
    Housing Units, for five years or longer. Must
    include
  • Project name, description of services to be
    funded or provided, dollar value of funds or
    in-kind services (if cash is to be provided,
    state the source of funds), term of funding or
    service provision and a brief description and
    history of the agency/organization providing the
    funding or services.

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D8a Catalyst Program - 5 points
  • Projects that have received a Gold or Silver
    award from the Departments Housing Policy
    Development Division via the Catalyst Projects
    for California Sustainable Strategies Pilot
    Program will receive five bonus points in the
    application scoring process. More information is
    available on the Departments website at
    http//www.hcd.ca.gov/hpd/cpcsspp.html

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  • Service Plan Requirements

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Index and Checklist (Application Item B14)
  • Part 1. Populations to be served
  • Part 2. Supportive Services Plan
  • Part 3. Supportive Services Budget
  • Part 4. Project Sponsor and Service
    Provider Experience
  • Part 5. Property Management Experience

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Tenant Selection Narrative Part 1, Section 3
  • Must conclusively document occupancy will be
    limited to eligible households
  • For Supportive Housing projects, occupancy by
    Supportive Housing households must be documented
    for at least 5 project units or 35 of the total
    units (whichever is greater)

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Tenant Selection Narrative Part 1, Section 3
  • Threshold Eligibility Criteria
  • Other Eligibility Criteria
  • Marketing/Outreach
  • Referral Sources
  • Application Process
  • Tenant Screening
  • Fair Housing

87
Service Plan Summary Part 2, Section 1
  • Narrative Summary of Services Plan
  • Service Needs of Population
  • Lead Service Provider
  • Key Services available
  • Staffing

88
Verification from Funding Agency Part 2, Section
3
  • Agency shall be knowledgeable of the supportive
    service needs of the Target Population
  • Agency shall endorse the services plan and the
    Project Sponsor as a known provider of Supportive
    Services similar to those proposed
  • Use Supportive Service Verification Form

89
Supportive Services ChartPart 2, Section 4
  • Record in chart
  • Each Support Service separately
  • Population to be served
  • Short Description of the Service
  • Name of Service Provider
  • Relationship to Sponsor
  • Type of Agreement (i.e., MOU or letter of
    commitment)
  • Service Location on or off Project site

90
Services Delivery Chart Part 2, Section 5
  • List each Staff Position separately
  • Describe the roles and duties of each position
  • Indicate percentage of full-time equivalent staff
  • Name the employer organization of the position
  • Specify Location work will be performed

91
Staffing Level Table Part 2, Section 5b
  • Indicate staffing level by completing
    calculation
  • Total SH Units
  • Total FTE Support Service Staff
  • Number of SH Units per FTE Staff Person
  • If Staff level differs from HCDs historical
    averages 10 15 households per staff for
    intensive services or 15 25 households per
    staff for less service intensive, provide a
    narrative explanation.

92
Tenant Engagement Part 2, Section 6
  • Provide narrative of tenant engagement plan
  • Explain how the Sponsor will elicit tenant
    participation in the services
  • A tenant engagement plan may not be necessary for
    transitional housing

93
Collaboration Part 2, Section 7
  • Provide a Narrative Description of the
    Collaboration Relationship (Section 7A)
  • Provide Collaborative Relationship Documentation
    such as a Contract, MOU or Letter of Intent
    (Section 7B)

94
Measurable Outcomes and Plan for Evaluation -
Part 2, Section 8a
  • Applicants must establish reasonable outcomes and
    outcome measures for
  • Residential Stability
  • Increased Skills or income
  • Greater Self-determination
  • Applicants must reasonably describe the proposed
    system for tracking the data and agree to report
    on the data annually

95
Service Utilization Part 2, Section 8b
  • Applicant must describe plan for collecting and
    analyzing service utilization data
  • Prior to tenancy
  • During tenancy
  • Which systems of care will provide the data (i.e.
    health, mental health, substance abuse, criminal
    justice)
  • How data will be collected and analyzed

96
Supportive Services Budget Part 3, Section 1
97
Supportive Services Cost Per Unit Part 3,
Section 2
  • Indicate supportive services cost per unit by
    completing calculation
  • Total SH Units
  • Total Supportive Services Costs
  • Total Supportive Service Costs per Unit
  • If supportive service cost per unit differs from
    a range of 5,000 - 10,000 per unit, provide
    narrative explanation

98
Funding and Service Commitments Part 3, Section 3
  • A minimum of 25 of total Service Budget must be
    committed at the application stage
  • Letters of Commitment or Intent to Fund must
    provide the following on organization letterhead
  • Project name
  • Description of services to be funded or provided
  • Value of funds or in-kind services
  • Term of funding or service provision
  • History of organization providing funds or
    services

99
Experience Part 4, Section 1
  • Document 24 months experience in ownership or
    operation of one special needs or supportive
    housing project
  • Document 24 months experience in providing
    services to the target population
  • Property manager must have 24 months experience
    in managing a supportive housing or special needs
    housing project containing 5 or more dwelling
    units
  • This is a threshold requirement

100
Service Funding History Part 4, Section 2B
  • Document the funding history of the qualifying
    service provider
  • Document that the provider will be able to access
    funds from the programs that fund the services
    identified in the Supportive Services Plan
  • List only funding obtained in last 5 years

101
Contact Information
  • Regi Fletcher 916-263-5882 reginald.fletcher_at_hcd.c
    a.gov
  • Kendra Gubaydullin 916-263-1435
    kendra.gubaydullin_at_hcd.ca.gov
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Title: California Department of Housing and Community Development


1
Supportive Housing Multifamily Housing
Program2014 Funding Round
  • California Department of Housing and Community
    Development

1
2
Supportive Housing Multifamily Housing Program
(SHMHP)General Fund Summary
  • 100 million allocation for affordable housing
    2014-15 State Budget (General Fund)
  • Funds include
  • MHP General 47.5 million
  • Supportive Housing 47.5 million
  • Administrative Costs 5 million

2
3
SHMHP NOFA October 24, 2014
  • Funding Available
  • 47.5 million
  • 7 million maximum loan amount per project
  • Function of unit size, location and affordability
    level

3
4
SHMHP Program Changes
  • Sponsors with projects whose per unit cost is 30
    or more than the historical average will be
    required to (historical data available on HCD
    website)
  • Provide written explanation of unusual cost
    features
  • Explain why an award would be sound public policy
  • Submit recommendation from relevant public entity
    endorsing and supporting the project
  • Be aware that HCD reserves the right to reject
    applications if the development costs cannot be
    reasonably justified

4
5
SHMHP Program Changes Carried Over From Prior
Rounds
  • AB 1460 Priority points for projects which
    utilize sustainable building methods (D7 in
    Scoring)
  • USDA RD loan commitment requirements (NOFA
    Section C)
  • Scrutiny of rehabilitation projects (NOFA Section
    C)

5
6
Timetable
NOFA issued October 24, 2014
Application forms available October 24, 2014
Applications due December 23, 2014
Loan and Grant Committee Meeting April 2015
Awards issued April 2015
6
7
MHP Program Overview
7
8
MHP Regulations
  • Governed by two sets of regulations
  • Multifamily Housing Program Specific Regulations
    (MHP Regulations)
  • Uniform Multifamily Regulations (UMR)
  • Available at
  • http//www.hcd.ca.gov/fa/mhp

8
9
Eligible Sponsor
  • Non-profit, for-profit and local public agencies
  • Demonstrate
  • Experience developing, constructing, owning and
    operating affordable rental housing projects
  • The entity that submits information for the award
    of the experience points (D3) must be the named
    Sponsor on the Application
  • Must demonstrate site control
  • MHP Section 7303 and UMR Section 8303

9
10
Eligible Project
  • Multifamily rental and transitional housing
    projects of five or more units
  • New construction
  • Acquisition and rehabilitation
  • Rehabilitation
  • Conversion of nonresidential structures
  • Must not have started construction as of the
    application due date
  • MHP Section 7302

10
11
SH Emphasis
  • Emphasis on units for
  • Homeless or at risk of homelessness and
    disabled adult
  • Disabled mental illness, HIV/AIDS, substance
    abuse, developmental disability or long-term
    chronic health condition
  • Maximum Income 30 Area Median Income

11
12
Eligible Use of Funds
  • Costs attributable to Restricted units for
  • Construction/rehabilitation
  • Off-site/on-site improvements
  • Capitalized operating and replacement reserves
    (replacement reserves can be funded from
    Operating Income)
  • Child care facility and social service facility
    integrally linked to Project
  • Developer fee
  • MHP Section 7304

12
13
Permanent Only Loans
  • Loan Terms
  • 55 year term
  • 3 percent simple interest (principal and interest
    deferrable)
  • First 30 years mandatory debt service of .42
    percent of outstanding principal balance
  • Next 25 years adjusted to cover HCDs monitoring
    costs
  • Unpaid interest and principal due at end of term

13
14
Program Limitations
  • Payment of state prevailing wages to laborers
    working on MHP-financed projects is required
  • Sponsor distributions limited to 50 percent of
    cash flow (UMR Section 8314)
  • 9 percent tax credit projects are eligible to
    apply for SHMHP funds

14
15
Developer Fee Limits
  • Limit of 1.2 million from funding sources (C7)
  • New construction and substantial rehabilitation
    projects first 30 units, 25,000 per unit. Each
    unit in excess of 30, 9,500 per unit
  • Acquisition and rehabilitation projects without
    substantial rehabilitation first 30 units,
    12,000 per unit. Each unit in excess of 30,
    5,500 per unit
  • Land donations from local jurisdiction or master
    developer may not be counted as capital
    contribution
  • Cash contributions from master developer or other
    entities, which are contingent upon the
    development of the Project may not be counted as
    capital contribution

15
16
Developer Fee Limits (continued)
  • Developer Fee Calculation
  • Includes lease-up fees, incentive fees, or other
    property management fees, in excess of those
    customarily charged by property management firms
    for lease up activities, which are paid to the
    Sponsor, Co-Sponsor or affiliate of the Sponsor
    or Co-Sponsor

16
17
Application Overview
17
18
Application
  • Universal Application used by HCD, TCAC, CDLAC
    and CalHFA
  • http//www.hcd.ca.gov/fa/mhp/
  • SHMHP Application Attachment
  • http//www.hcd.ca.gov/fa/mhp/

18
19
General Instructions
  • Submitting Application
  • Three-ring binder with sleeve on the side
  • Large lettered tabs and divide the binder into
    seven sections Universal Application, Universal
    Application Attachments (1-11), SHMHP Attachments
    A, B, C, D, E
  • Set up dividers with numbered tabs to correspond
    to the Universal Application and MHP Program
    Specific Checklist (A1)
  • For items that are not applicable to your
    application, place a sheet stating the item is
    Not Applicable behind the tab

19
20
General Instructions (continued)
  • COMPLETE original and one duplicate of
    application must be received by HCD no later than
    5 p.m. on December 23, 2014. Postmarks are not
    accepted
  • No facsimiles, late, incomplete, or revised
    applications will be accepted
  • Applications must meet all eligibility
    requirements upon submission
  • Applications with internal inconsistencies will
    not be rated and ranked

20
21
Organizing the Application
  • Submit your application binders in this order
  • Universal Application
  • Universal Application Attachments 1 - 11
  • SHMHP Attachments A, B, C, D, E
  • Remember Once your application is received, it
    must stand on its own to represent your Project

21
22
Disclosure
  • Disclosure of Application
  • Information becomes PUBLIC RECORD available for
    review by the public
  • Use Discretion
  • Sponsor is waiving any claim of confidentiality
    and consents to the disclosure of all submitted
    material upon request

22
23
Project Evaluation
  • Eligibility
  • Feasibility
  • Scoring

23
24
SHMHP Attachment
24
25
A1 Universal Application and SHMHP Checklist
  1. Proof of site control
  2. Current Preliminary Title Report
  3. Relocation Plan with estimated costs
  4. Utility Allowance Chart by unit size
  5. Org. charts for Borrower, Sponsor, Developer,
    Affiliates
  6. Legal Status Questionnaire
  7. Previous Participation Certifications
  8. Evidence of enforceable commitments -
    Construction
  9. Evidence of enforceable commitments - Permanent
  10. Market Study with Rent Comparability Matrix
  11. Current Appraisal

25
26
A2 Eligibility Criteria
  • Other funding sources are insufficient to cover
    Project development cost
  • As of application due date, construction has not
    commenced (demolition is considered
    construction if cost of demolition is included
    in the development budget)
  • Application complete and on MHP approved forms

26
27
A2 Eligibility Criteria (continued)
  • Project site must be free from environmental
    conditions which are infeasible to correct
  • Site is reasonably accessible to
  • Public transportation, shopping, medical
    services, recreation, schools and employment
  • Must demonstrate Article XXXIV authority
  • New construction projects with demolition
  • Number of bedrooms in new Project must be at
    least equal to the number of bedrooms demolished

27
28
A2 Eligibility Criteria (continued)
  • Relocation Eligibility Requirements
  • Application must contain a preliminary Relocation
    Plan
  • Developmental budget must contain funding for
    Relocation Expenses
  • Final Relocation Plan must be approved by the
    Department prior to funding
  • MHP Section 7315

28
29
A2 Eligibility Criteria (continued)
  • Site Control Requirements
  • Must be in the name of the Sponsor
  • Documents showing site control
  • Lease
  • Contract of Sale
  • Disposition and Development Agreement
  • Preliminary Title Report
  • Option to Purchase or Lease
  • Preliminary Title Report required in all cases
  • Not older than six months
  • UMR Section 8303

29
30
A2 Eligibility Criteria (continued)
  • Proof of Site Control
  • Can take any of the forms indicated, but must
  • Be fully executed and unilateral
  • Name seller and purchaser or lessee
  • Include dollar amount and terms of agreement
  • Be signed by all parties
  • Not have expired

30
31
A3 Recycling Program Narrative
  • In an effort to encourage all projects to
    implement as many environmentally friendly
    options as possible, the SHMHP application will
    require a narrative describing how the Project
    will implement and encourage residents to utilize
    project-based recycling programs

31
32
MHP AttachmentSection B - Eligibility
32
33
B1 Tenant Selection Criteria
  • Provide description of your tenant selection
    criteria and describe rationale
  • Senior Projects (B1a) Provide evidence of Fair
    Housing Compliance (legal opinion)

33
34
B2 Organizational Documents
  • Sponsor and Ultimate Borrower (if formed)
  • Articles of Incorporation
  • By-laws
  • Partnership Agreements
  • If organized under laws of different state
  • Submit Certificate of Good Standing for Foreign
    LP/Corp/LLC plus Certificate of Registration

34
35
B3 Governing Board Resolution
  • Authorizes application submission
  • Specifies authorized signatory
  • Must reference the NOFA date and the amount of
    loan request
  • Must state that the entity is authorized to do
    business in California
  • Sample resolutions are available

35
36
B4 Names of Officers and Board Members
  • Be certain not to disclose personal data
    (addresses, phone numbers, etc.) unless the board
    members have authorized the release of such
    information keep in mind that the application
    is a public document

36
37
B5 Environmental Reports
  • Phase I Environmental Site Assessment
  • Other Environmental Reports (i.e. Phase II,
    Asbestos, Lead-based paint)
  • Mitigation information (if applicable)
  • Do not attach database records search

37
38
B6 Maps
  • Parcel map showing site location
  • Scaled Distance Map
  • Two mile radius of site
  • Indicate amenities

38
39
B7 Article XXXIV of the California Constitution
requires voter approval authorizing development
of low-income housing
  • Provide evidence that Article 34 authority exists
    for this Project or
  • Provide a legal opinion letter explaining why
    this Project is exempt from Article 34
    requirements

39
40
SHMHP AttachmentSection C - Feasibility
40
41
C1 Insert the Development Timetable
41
42
Maximum Allowable Loan Amount
  • C2 Worksheet to Determine Maximum Allowable
    Loan Amount
  • C3 Loan Limit Worksheet
  • C4 Shared Cost Calculation Worksheet
  • C5 MHP Loan Calculation Worksheet

42
43
43
44
Loan Limits
  • MHP
  • http//www.hcd.ca.gov/hpd/hrc/rep/state/incNote
    .html

44
45
45
46
46
47
47
48
48
49
C6
  • This item (evidence of commitment status for
    development funding) has been replaced by
    Universal Application Attachments 8 and 9
  • See SHMHP Application Attachment Instructions
    for what constitutes evidence of commitment

49
50
C7 Developer Fee Calculation
  • Not a required application attachment
  • Tool to assist Sponsor in calculating allowable
    amount of developer fees

50
51
51
52
C8 Unit Mix and Income Information
  • Complete the Unit Mix and Income Information
    chart
  • For rental assistance, operating, project based
    and other subsidies attach evidence of commitment
  • If not available, attach other documentation such
    as Reservation or third-party letter stating the
    following
  • Annual subsidy amount
  • Date or expected date of award
  • Term
  • Number of subsidized units
  • If not available, attach Voucher Payment Standard
    and Fair Market Rents from Housing Authority

52
53
53
54
C9 Transition Reserves
  • If Project depends on project-based rental
    subsidy, attach calculation of Required
    Transition Reserve funding (MHP Regs 7312f)

54
55
C10 Justification of Services Coordinator
  • Attach narrative description of tenant needs and
    the role of the resident Services Coordinator in
    linking tenants to services

55
56
C11 Estimate of Construction Cost Based on
Prevailing Wage
  • Complete C11 based on prevailing wages

56
57
Insert the Following Documents
  • C12 Copies of Planning Approvals
  • C13 Copies of Resumes for Project Contractor and
    Architect
  • C14 Copies of Schematic Drawings

57
58
Rehabilitation Projects
  • C15 Provide a narrative description of current
    condition of structures
  • C16 Provide a detailed narrative description of
    the intended scope of work
  • C17 Provide a copy of current rent roll including
    household composition and income

58
59
C18 Letter to Local Government
  • Statutory requirement to notify local government
    jurisdiction that application is being submitted
  • Must be addressed to the City Council or County
    Board of Supervisors (whichever is applicable)
  • THIS IS AN ELIGIBILITY THRESHOLD REQUIREMENT

59
60
C19 Operating Expense Comparables
  • Minimum three comparables
  • One market rate one affordable housing
  • Same primary market area
  • Similar size, number of units and amenities

60
61
SHMHP AttachmentSection D - Scoring
61
62
D1 Extent Project Serves Households at the Lowest
Income Levels - 35 points
  • Enter total number of Restricted Units
  • Enter number of units for MHP A, B, or C
  • Scoring sheet will auto calculate

62
63
63
64
D2 Extent Project Addresses the Most Serious
Identified Local Housing Needs - 15 points
  • (A) 5 points for either
  • Letter from City or County
  • Local need identified in local housing policy
    document
  • The local housing policy document in which the
    need is identified
  • A statement that the Project meets the need
  • Must specifically name the Project

64
65
D2 Extent Project Addresses the Most Serious
Housing Needs (continued)
  • Or
  • If 70 percent of Project units are reserved for
    Special Needs or Supportive Housing Populations
  • Letter from local government department stating
    that the Project will address a serious local
    housing need as it relates to Special Needs
    Populations

65
66
D2 Extent Project Addresses the Most Serious
Housing Needs (continued)
  • AND Choose option B, C or D - 5 or 10 points
  • (B) - 10 points
  • At least 70 percent of units reserved for Special
    Needs or Supportive Housing Populations or
  • At least 70 percent of units have two or more
    bedrooms and located in Alameda, Contra Costa,
    Los Angeles, Marin, Monterey, Napa, Orange, San
    Diego, San Francisco, San Luis Obispo, San Mateo,
    Santa Barbara, Santa Clara, Santa Cruz, Solano,
    Sonoma, or Ventura counties

66
67
D2 Extent Project Addresses the Most Serious
Housing Needs (continued)
  • (C) - 5 or 10 points
  • Comparable Market Rental Data Forms
  • At least the five nearest comparable projects
  • Senior projects - limit comparables to this
    population
  • One rental data form for each comparable
  • If weighted vacancy rate is lt 3 percent 10
    points
  • If weighted vacancy rate is lt 5 percent 5 points

67
68
D2 Extent Project Addresses the Most Serious
Housing Needs (continued)
  • (D) - 5 or 10 points
  • Vacancy Rate Determined by Market Study
  • Performed by qualified third party per TCAC
    guidelines
  • Senior projects - limited to this population
  • Vacancy rate lt 3 percent 10 points
  • Vacancy rate lt 5 percent 5 points

68
69
D3 Development and Ownership Experience of
Project Sponsor - 20 points
  • Affordable housing developments completed in the
    five years preceding application due date
  • Minimum ten units
  • Exception If proposed project has lt 15 units,
    and 70 percent of units reserved for Special
    Needs Populations, a completed project may have
    five units

69
70
D3 Development and Ownership Experience of
Project Sponsor (continued)
  • Experience points awarded if
  • Project Sponsor or affiliate was sole developer
  • Project Sponsor or affiliate in partnership with
    another entity if
  • Controlled key aspects
  • Had sufficient staff to manage the development
    process
  • Received majority share of developer fee

70
71
D3 Development and Ownership Experience of
Project Sponsor (continued)
  • Projects were developed by staff (or a principal)
    currently employed by Sponsor if
  • Staff had primary responsibility for the
    development process
  • Staff will serve as Project Manager, or directly
    supervise the Project Manager and have primary
    responsibility for managing the development
    process

71
72
D3 Development and Ownership Experience of
Project Sponsor (continued)
  • Only experience of one entity counted
  • Experienced entity must have controlling interest
    in partnership, primary responsibility for
    development, ongoing control of operations and
    sufficient staff
  • Must receive majority share of developer fee

72
73
D4 Percentage of Units for Families, Supportive
Housing or Special Need Populations or At-risk
Rental Housing Developments - 35 points
  • Scoring sheet will auto-calculate for unit size
    and Special Needs Population designated units
  • At-risk Rental Housing must meet TCAC definition.
    Attach completed checklist and supporting
    documentation including third-party legal opinion.

73
74
74
75
D5 Leverage of Other Funds - 20 points
  • Deferred developer fee is not included
  • Land value may be included if supported by an
    appraisal
  • Rural, Non-rural As defined by TCAC
  • Attachment D5 will auto-calculate

75
76
76
77
D6 Project Readiness - 15 points
  • Enforceable commitments - construction
  • Enforceable commitments - deferred
  • Environmental
  • Have all clearances (NEPA CEQA)
  • If NEPA Responsible Entity is not the locality
    Submit form to appropriate NEPA Responsible
    Entity
  • Phase I Environmental Site Assessment

77
78
D6 Project Readiness - (continued)
  • Local design review approval
  • Public land use approvals (not to include
    building permits and ministerial approvals)
  • Either
  • Fee Title or long-term leasehold (attach PTR or
    documentation of lease agreement)
  • Working drawings at least 50 percent complete
    (attach architect certification)

78
79
79
80
D7 Adaptive Reuse, Infill, Proximity to Site
Amenity or Sustainable Building Methods - 10
points
  • Infill Vacant or soon to be vacant lot in
    established or developed area
  • Adaptive Reuse Rehabilitation of vacant
    commercial or industrial buildings in developed
    areas
  • Proximity to Site Amenity Must qualify for any
    points under TCAC
  • Sustainable Building Methods Must qualify for
    any points under TCAC

80
81
Supportive Housing Projects D8 Commitments for
Operating Subsidy or Services Funding - 5 points
  • A commitment for the operating subsidies,
    sufficient to sustain project operations for five
    years or longer from the local government.
  • A commitment for services funding, sufficient to
    make available services adequate to meet the
    needs of the tenants housed in the Supportive
    Housing Units, for five years or longer. Must
    include
  • Project name, description of services to be
    funded or provided, dollar value of funds or
    in-kind services (if cash is to be provided,
    state the source of funds), term of funding or
    service provision and a brief description and
    history of the agency/organization providing the
    funding or services.

82
D8a Catalyst Program - 5 points
  • Projects that have received a Gold or Silver
    award from the Departments Housing Policy
    Development Division via the Catalyst Projects
    for California Sustainable Strategies Pilot
    Program will receive five bonus points in the
    application scoring process. More information is
    available on the Departments website at
    http//www.hcd.ca.gov/hpd/cpcsspp.html

82
83
  • Service Plan Requirements

84
Index and Checklist (Application Item B14)
  • Part 1. Populations to be served
  • Part 2. Supportive Services Plan
  • Part 3. Supportive Services Budget
  • Part 4. Project Sponsor and Service
    Provider Experience
  • Part 5. Property Management Experience

84
85
Tenant Selection Narrative Part 1, Section 3
  • Must conclusively document occupancy will be
    limited to eligible households
  • For Supportive Housing projects, occupancy by
    Supportive Housing households must be documented
    for at least 5 project units or 35 of the total
    units (whichever is greater)

86
Tenant Selection Narrative Part 1, Section 3
  • Threshold Eligibility Criteria
  • Other Eligibility Criteria
  • Marketing/Outreach
  • Referral Sources
  • Application Process
  • Tenant Screening
  • Fair Housing

87
Service Plan Summary Part 2, Section 1
  • Narrative Summary of Services Plan
  • Service Needs of Population
  • Lead Service Provider
  • Key Services available
  • Staffing

88
Verification from Funding Agency Part 2, Section
3
  • Agency shall be knowledgeable of the supportive
    service needs of the Target Population
  • Agency shall endorse the services plan and the
    Project Sponsor as a known provider of Supportive
    Services similar to those proposed
  • Use Supportive Service Verification Form

89
Supportive Services ChartPart 2, Section 4
  • Record in chart
  • Each Support Service separately
  • Population to be served
  • Short Description of the Service
  • Name of Service Provider
  • Relationship to Sponsor
  • Type of Agreement (i.e., MOU or letter of
    commitment)
  • Service Location on or off Project site

90
Services Delivery Chart Part 2, Section 5
  • List each Staff Position separately
  • Describe the roles and duties of each position
  • Indicate percentage of full-time equivalent staff
  • Name the employer organization of the position
  • Specify Location work will be performed

91
Staffing Level Table Part 2, Section 5b
  • Indicate staffing level by completing
    calculation
  • Total SH Units
  • Total FTE Support Service Staff
  • Number of SH Units per FTE Staff Person
  • If Staff level differs from HCDs historical
    averages 10 15 households per staff for
    intensive services or 15 25 households per
    staff for less service intensive, provide a
    narrative explanation.

92
Tenant Engagement Part 2, Section 6
  • Provide narrative of tenant engagement plan
  • Explain how the Sponsor will elicit tenant
    participation in the services
  • A tenant engagement plan may not be necessary for
    transitional housing

93
Collaboration Part 2, Section 7
  • Provide a Narrative Description of the
    Collaboration Relationship (Section 7A)
  • Provide Collaborative Relationship Documentation
    such as a Contract, MOU or Letter of Intent
    (Section 7B)

94
Measurable Outcomes and Plan for Evaluation -
Part 2, Section 8a
  • Applicants must establish reasonable outcomes and
    outcome measures for
  • Residential Stability
  • Increased Skills or income
  • Greater Self-determination
  • Applicants must reasonably describe the proposed
    system for tracking the data and agree to report
    on the data annually

95
Service Utilization Part 2, Section 8b
  • Applicant must describe plan for collecting and
    analyzing service utilization data
  • Prior to tenancy
  • During tenancy
  • Which systems of care will provide the data (i.e.
    health, mental health, substance abuse, criminal
    justice)
  • How data will be collected and analyzed

96
Supportive Services Budget Part 3, Section 1
97
Supportive Services Cost Per Unit Part 3,
Section 2
  • Indicate supportive services cost per unit by
    completing calculation
  • Total SH Units
  • Total Supportive Services Costs
  • Total Supportive Service Costs per Unit
  • If supportive service cost per unit differs from
    a range of 5,000 - 10,000 per unit, provide
    narrative explanation

98
Funding and Service Commitments Part 3, Section 3
  • A minimum of 25 of total Service Budget must be
    committed at the application stage
  • Letters of Commitment or Intent to Fund must
    provide the following on organization letterhead
  • Project name
  • Description of services to be funded or provided
  • Value of funds or in-kind services
  • Term of funding or service provision
  • History of organization providing funds or
    services

99
Experience Part 4, Section 1
  • Document 24 months experience in ownership or
    operation of one special needs or supportive
    housing project
  • Document 24 months experience in providing
    services to the target population
  • Property manager must have 24 months experience
    in managing a supportive housing or special needs
    housing project containing 5 or more dwelling
    units
  • This is a threshold requirement

100
Service Funding History Part 4, Section 2B
  • Document the funding history of the qualifying
    service provider
  • Document that the provider will be able to access
    funds from the programs that fund the services
    identified in the Supportive Services Plan
  • List only funding obtained in last 5 years

101
Contact Information
  • Regi Fletcher 916-263-5882 reginald.fletcher_at_hcd.c
    a.gov
  • Kendra Gubaydullin 916-263-1435
    kendra.gubaydullin_at_hcd.ca.gov
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