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Section 202/811 Capital Advance Programs

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Title: Section 202/811 Capital Advance Programs


1
Section 202/811 Capital Advance Programs
  • Basic Program Requirements

1
2
Basic Program Requirements
  • Purpose of Programs

2
3
Basic Program Requirement
  • To expand the supply of supportive housing for
    the elderly and for persons with disabilities.

3
4
Basic Program Requirements
  • What Funding Does HUD
  • Provide?

4
5
FY 2003 APPROPRIATIONS
  • Section 202
  • 783,286,000
  • 683,036,000 for new units, amendments and PRAC
    renewals
  • 50 million for service coordinator CHSP

5
6
FY 2003 APPROPRIATIONS
  • Section 202 (contd)
  • 783,286,000
  • 25 million for ALCP
  • 250,000 transferred to Working Capital Fund
  • 25 million for Section 202 Predevelopment Grant

7
FY 2003 Appropriations
  • Section 811
  • 250,515,000
  • 196,665,000 for new units, amendments, PRAC and
    tenant-based assistance renewals
  • 53.6 million for tenant-based assistance
  • 250,000 transferred to Working Capital Fund

6
8
Section 202/811 Allocations
  • 202
  • 473.8 million/5,689 units
  • 811
  • 116.8 million/1,478 units

7
9
HUD Funding
  • Types of funds
  • Capital Advance
  • Project Rental Assistance

Funds reserved by formula
8
10
Capital Advance Funds
  • Covers the cost of developing the housing.
  • Must be repaid if units are not made available to
    very low income elderly (202 projects) or very
    low income persons with disabilities (811
    projects) for 40 years.

9
11
Capital Advance Fund Reservation Formula
  • 202 projects and 811 projects (other than group
    homes)
  • multiply approp develop cost limit (est based on
    unit size and elev or non-elev structure) by the
    no. of units of each size.

10
12
Capital Advance Fund Reservation Formula
  • 202 projects and 811 projects (other than group
    homes)
  • Ex. 20 unit elev. proj. (5 0BRs and 15 1 BRs)
  • 5 x 43,398 216,990
  • 15 x 49,748 746,220
  • 963,210

13
Capital Advance Fund Reservation Formula
  • 202 and 811 projects (other than group homes)
    (contd)
  • Multiply result (963,210) by the high cost
    factor for the area in which project will be
    located.
  • Ex. 963,210 x 156 (HCP) for Any City, USA
    1,502,600 fund reservation (rounded down to
    nearest 100)

11
14
Capital Advance Fund Reservation Formula
  • 811 group homes by no. of BRs and the development
    cost limit for the population of project
  • (i.e., physically/developmentally disabled or
    chronically mentally ill).

15
Project Rental Assistance
  • The difference between approved operating
    expenses and tenant payments (30 of adjusted
    income)
  • The initial term is 5 years.

16
Project Rental Assistance
  • Restricted up to first year of occupancy by
    formula
  • - OCS x no. of revenue producing units or, if
    GH, of residents with disabilities

17
Project Rental Assistance
  • Operating expenses can include
  • Service coordinator in 202 projects serving frail
    elderly
  • Up to 15 per unit per month for services for
    frail elderly (202)

16
18
Basic Program Requirements
  • Sponsors Financial Requirements

17
19
Sponsors Financial Requirements
Minimum capital investment 1/2 of 1 of the
Capital Advance up to maximum of 10,000(25,000
if 202 national sponsor)
  • Other costs not covered by capital
  • advance

Development costs exceeding original reservation
18
20
Basic Program Requirements
  • Who Can Apply?

19
21
Sponsor (Applicant) Eligibility - Type of
Organization
  • Section 202
  • Private nonprofit
  • Nonprofit Consumer Cooperative
  • IRS tax exemption
  • Public entity or instrumentality ineligible

20
22
Sponsor (Applicant) Eligibility - Type of
Organization
  • Section 811
  • Nonprofit with IRS tax exemption under 501(c)(3)
  • Public entity eligible if it has
  • 501(c)(3)

21
23
Sponsor Eligibility - Prohibited Relationships
  • Individual Board members officers cannot
  • Provide services to sponsor/owner for a fee
  • Hire certain family members as development team
    members

22
24
Sponsor Eligibility - Prohibited Relationships
  • Individual Board members officers also cannot
  • Have Identity or Conflict of Interest with other
    development team members, e. g.
  • Gen. Contractor Attorney
  • Consultant Land Seller
  • Architect Management Agent

23
25
Sponsor Eligibility- Prohibited Relationships
  • Development team members
  • Identities of Interest are prohibited between
    development team members
  • e.g., Seller of Land cannot have Identity of
    Interest with the General Contractor

24
26
Sponsor Eligibility- Permissible Relationship
  • Sponsor or its Nonprofit Affiliate can be
  • Management Agent
  • Consultant or
  • Service Provider
  • Note No more than 2 paid officers/
    directors from the Sponsors/Affiliates Board
    can be on the Owners Board they must be
    non-voting

25
27
Sponsor Eligibility- Religious Bodies
  • Religious bodies are eligible
  • Provided they submit required documentation
    including current IRS ruling

26
28
Sponsor Eligibility- Religious Bodies
  • If the project is selected
  • Sponsor will form single asset Owner
  • Owner cannot have any religious purposes

29
Owner Eligibility - Type of Organization Section
202
  • Single-purpose private nonprofit with IRS tax
    exemption under 501(c)(3) or 501(c)(4)
  • Nonprofit Consumer Cooperative

27
30
Owner Eligibility - Type of Organization Section
202(contd)
  • For-profit limited partnership with a nonprofit
    as sole general partner
  • - Only permitted to develop a
  • mixed-finance project for
  • additional units

28
31
Owner Eligibility - Type of Organization Section
811
  • Single-purpose nonprofit with 501(c)(3) tax
    exemption
  • For-profit limited partnership with a nonprofit
    as sole general partner
  • - Only permitted to develop a mixed-
  • finance project for additional units

29
32
Basic Program Requirements
  • Who are Eligible
  • Residents?

30
33
Eligible Residents
  • Section 202
  • Very low income
  • 50 of median income for applicable County
    household size
  • One family member must be 62 or older

31
34
Eligible Residents
  • Section 811
  • Very low income
  • 50 median income for applicable County
    household size

32
35
Eligible Residents
  • Individual/family where one member is
    -18 years or older has one or more of the
    following disabilities Chronic Mental
    Illness Physical Disability Developmental
    Disability

33
36
Requests for Restricted Occupancy (Section 811)
  • Sponsors may request approval to restrict
    occupancy to
  • a subcategory of the three main disability
    categories
  • Submit detailed justification in Exhibit 5(b) of
    Application

34
37
Basic Program Requirements
  • What Methods of Development Are Eligible?

35
38
Development Methods
  • Sections 202 and 811
  • New Construction
  • Rehabilitation
  • Acquisition with/without Rehabilitation

36
39
Basic Program Requirements
  • What types of Structures are Eligible?

37
40
Eligible Structure Types
  • Section 202
  • Independent Apartment units

38
41
Eligible Structure Types
  • Section 811
  • Independent Living Projects(ILPs) containing
    individual apartment units
  • Condominium units
  • Group Homes

39
42
Eligible Structure Types- Apartment Units-Tenant
Unit Sizes
  • Section 202
  • Efficiencies 1 Bedroom only

40
43
Eligible Structure Types- Apartment Units-Tenant
Unit Sizes
  • Section 811
  • Any size, however
  • 3 Bedroom larger units must be occupied by
    families not unrelated individuals

41
44
Eligible Structure Types- Apartment Units (Sec.
202 811)
  • Maximum number of people per Section 811 ILP is
    14 persons with disabilities (an exception may be
    requested)
  • One unit for resident manager
  • Sec. 202-one or two bedroom unit
  • Sec. 811-ILP one or two bedroom unit

42
45
Eligible Structure Types- Condominium (Sec. 811
Only)
  • Same as ILP units
  • Cannot purchase separate unit for Resident Manager

43
46
Eligible Structure Types-Group Home (Sec. 811
Only)
  • Each Group Home
  • Minimum of 2 maximum of 6 persons with
    disabilities
  • Single or double occupancy
  • Residents cannot be required to share a bedroom

44
47
Eligible Structure Types- Group Home (Sec. 811
Only)
  • One bedroom unit(apt.) for resident manager is
    permitted
  • Two group homes cannot be located next to each
    other

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LAUREL GARDENS Colorado Springs

61
Front Vestibule
62
Proud Resident With Her Unit
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Basic Program Requirements
  • Ineligible Facilities

70
74
Ineligible Facilities
  • Nursing homes medical facilities
  • Sheltered workshops
  • Intermediate Care Facilities
  • Refinancing of Sponsor-owned facilities without
    rehabilitation

71
75
Basic Program Requirements
  • Ineligible Amenities

72
76
Ineligible Amenities
  • Jacuzzi, sauna, spa
  • Swimming pool
  • Bowling alley
  • Balcony, deck, dishwasher, compactor, washer
    dryer in individual units
  • Atrium

73
77
Basic Program Requirements
  • What Are the Design
  • Standards?

74
78
Design Standards
  • HUD Minimum Property Standards
  • Local Codes
  • 202/811 Program Accessibility Requirements
    utilizing UFAS
  • Section 504 of Rehabilitation Act of 1973 24
    CFR Part 8
  • Fair Housing Act 24 CFR Part 100
  • New construction only

75
79
Basic Program Requirements
  • Supportive Services

76
80
Supportive Services
  • Acceptance of Services cannot be a condition of
    occupancy.
  • Funding
  • 202 PRAC up to 15 per unit per month for svc
    coordinator in project serving primarily frail
    elderly.
  • 811 from outside sources.

77
81
Changes Applicable to both 202 and 811
  • Applications should be mailed by the U.S. Postal
    Service, but not required
  • Still no hand deliveries
  • Minimum score raised from 70 to 75 points before
    bonus pts added

82
Changes Applicable to both 202 and 811
  • Entire application is Appendix A to the 811 NOFA
    and will also be available in a bound version.

83
Changes Applicable to Both 202 and 811
  • Form HUD-2530, Previous Participation
    Certification, must be included in application
  • Sponsors must receive clearance to be selected.
  • It is a curable deficiency.
  • Sponsors may submit application proposing
    mixed-financing but not mixed-use.

84
Changes Applicable to Both 202 and 811
  • Organization of NOFA
  • Info on of units/projects that can be applied
    for is included under Application Unit/Project
    Limits under Program Requirements instead of
    under Eligibility
  • Information on Phase I and II is described in
    Sites under Program Requirements

85
Changes Applicable to Both 202 and 811
  • Organization of NOFA
  • Program Requirements includes a paragraph
    indicating that a commercial facility for the
    benefit of the residents may be located in
    project but cannot be funded through cap advance
    or PRAC

86
Changes Applicable to Both 202 and 811
  • Application Requirements
  • Supportive Services Plan is a separate Exhibit
    Exhibit 5
  • Form HUD-424B is required which replaces
    Drug-Free Workplace (Form HUD-50070) and
    Certification Regarding Debarment and Suspension
    (Form HUD-2992)

87
Changes Applicable to Both 202 and 811
  • Application Requirements
  • Form HUD-424 now includes information previously
    in Certification of Payments to Influence Federal
    Transactions (Form HUD-50071)

88
Changes Applicable to Both 202 and 811
  • Application Requirements
  • If project will involve demolition and/or rehab,
    Phase I must include Asbestos Report identifying
    location and condition of asbestos and
    certification that it will be abated

89
Changes Applicable to Both 202 and 811
  • Application Requirements
  • If project will not involve demolition and/or
    abatement, Phase I must include certification to
    same.

90
Changes Applicable to Both 202 and 811
  • Application Requirements
  • A sample letter to be sent to the SHPO is
    provided as an Attachment 1 to application
    signed copy and SHPO response, if any, must be
    included in your application

91
Changes Applicable to Both 202 and 811
  • Application Requirements
  • Supplemental Guidance to Choosing an
    Environmentally Safe Site relative to
    environmental issues such as endangered species
    is Attachment 3 to application

92
Changes Applicable to Both 202 and 811
  • Application Requirements
  • Project Development Timeline listing major dev.
    stages/dates to get project to initial closing
    within 18 months, completion and final closing

93
Changes Applicable to Both 202 and 811
  • Application Requirements
  • Project Development Timeline requirement responds
    to a change in Rating Factor 5 which is now
    Achieving Results and Program Evaluation in
    order to support Departments priorities for this
    FY.

94
Changes Applicable to Both 202 and 811
  • Scoring Changes
  • Rating Factor 1
  • Overall experience is raised to 15 pts.
  • Experience in serving minorities and ties to the
    community, including the minority community, is
    divided into two criteria, worth 5 pts each.

95
Changes Applicable to Both 202 and 811
  • Scoring Changes
  • Rating Factor 1
  • Pts deducted for delay in reaching initial
    closing are increased to 4 with a gradation in
    pts based on length of delay.
  • 1 pt no longer provided if you are a grassroots
    organization.

96
Changes Applicable to Both 202 and 811
  • In your description of how the project will
    promote energy efficiency, you should include any
    plans to use Energy Star labeled products and
    appliances.

97
Changes Applicable to Both 202 and 811
  • Other Scoring Changes
  • Rating Factor 3
  • Application will receive 1 point if you plan to
    incorporate visitability standards and universal
    design in development of project.
  • Rating Factor 4 is reduced to 5 pts.

98
Changes Applicable to Both 202 and 811
  • Other Scoring Changes
  • Rating Factor 5
  • Renamed Achieving Results and Program
    Evaluation
  • No longer rated on your involvement in the
    communitys planning process

99
Changes to the Section 202 Program Only
  • Allocation formula uses 2000 Census data and
    includes two data elements
  • of elderly renter households of all sizes age
    65 and older paying more than 30 of incomes for
    gross rent
  • of elderly households age 60 and older living
    alone with incomes below poverty level

100
Changes to the Section 202 Program Only
  • Scoring Changes
  • Rating Factor 3 increased to 45 pts.
  • Rating Factor 5
  • Deleted criterion which provided 2 pts for your
    coordination efforts with other organizations.

101
Changes to the Section 811 Program Only
  • If you submit an application with site control
    for an independent living project you can, once
    again, request an exception to the 14 person
    project size limit.

102
Changes to the Section 811 Program Only
  • Added restriction under project size limits for
    an ILP
  • if you are placing an ILP on the same or an
    adjacent site already containing housing for
    persons with disabilities, the total of persons
    served (in existing and proposed project
    combined) cannot exceed 14.

103
Changes to the Section 811 Program Only
  • In a group home, only a one-bedroom unit can be
    provided for a resident manager.
  • The allocation formula consists of one data
    element from the 2000 Census the of
    non-institutionalized persons age 16 to 64 with a
    disability.

104
Changes to the Section 811 Program Only
  • Scoring Changes
  • Rating Factor 1 is increased to 30 pts
  • Due to the increase to 75 pts for selection
    eligibility, the two criteria relative to
    integrated housing have been combined into one
    and there will be a gradation of up to 5 pts
    based on whether the Sponsor has experience
    and/or the project qualifies as integrated
    housing.

105
Changes to the Section 811 Program Only
  • Scoring Changes
  • Under Rating Factor 5 the two criteria with
    respect to the project implementing practical
    solutions and providing activities to improve
    computer access, literacy and employment
    opportunities have been combined and the new
    criterion is worth 2 points.

106
Changes to the Section 811 Program Only
  • Scoring Changes
  • Rating Factor 3, Soundness of Approach, is
    increased to 40 pts.
  • Site Approvability is increased to 10 pts.
  • Site promoting greater choice for minorities is
    increased to 10 pts.

107
Changes to the Section 811 Program Only
  • Scoring Changes
  • Involvement of persons with disabilities in
    development of application and coordination of
    application with other organizations have been
    shifted from Rating Factor 5 to Rating Factor 3.

108
Changes to the Section 811 Program Only
  • Scoring Changes
  • Rating Factor 3
  • The two criteria for project design have been
    combined for a total of 4 pts.
  • Rating Factor 5
  • The two rating criteria with respect to the
    project implementing practical solutions and
    providing activities to improve computer access,
    literacy, etc. have been combined for a total of
    2 pts.

109
Section 202/811 Capital Advance Program
  • NOFA Process

88
110
Application
  • Order from
  • (800)HUD-8929
  • OR
  • (800)HUD-2209 TTY
  • Download from WEB www.HUD.gov

89
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Section 202/811 Capital Advance Program
  • FY 2003 NOFA

90
112
Submission Deadline
  • June 13, 2003
  • Mail to applicable Multifamily Program Center
    (see listing in Appendix B to 811 NOFA)
  • Projects in the areas of
  • Wash., DC mail to HUD Baltimore Ofc
  • Cincinnati, OH mail to HUD Columbus Ofc
  • Sacramento, CA mail to HUD San Fran. Ofc
  • Grand Rapids, MI mail to HUD Detroit Ofc

91
113
Method of Submission
  • Should mail applications by US Postal Service
  • HUD CANNOT accept hand delivered applications

92
114
Method of Submission (contd)
  • US Postal Service Mail
  • Postmarked on or before midnight of deadline
  • Received in HUD office within 15 days of due date
  • Proof of mailing by deadline required
  • Must have a Certificate of Mailing (USPS Form
    3817) as proof of timely mailing

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115
NOFA
  • Staff Roles

96
116
Role of HUD Staff
  • Between SuperNOFA publication deadline
  • Will conduct workshops
  • Will provide general program guidance
  • Cannot assist in preparation of application

97
117
Role of HUD Staff
  • Between deadline release of selections
  • Will request information
  • to clarify
  • to correct curable deficiency
  • Will not request information to improve quality
    of Exhibits affecting rating

98
118
Role of HUD Staff
  • Will not consider unsolicited information
  • Will not provide information on status of
    application
  • Except those that have been rejected on a
    technical basis

119
Role of Sponsor
  • You should ensure representatives are available
    to respond to requests for information

100
120
Review of Applications
  • Schedule
  • June 13, 2003 Application Deadline Date
  • HUD Office will send you an Acknowledgment Letter
  • HUD screens each application for completeness and
    issues Curable Deficiency Letters by June 23, 2003

101
121
Review of Applications (contd)
  • Curable Deficiency letter
  • Missing or incomplete Exhibits that do not affect
    rating
  • 14 calendar days to respond
  • Will Fax if Fax number provided in Exhibit 1

102
122
List of Curable Deficiencies (Exhibits identified
by an asterisk () must be dated on or before the
application deadline date.)
  • Exhibits
  • (1) Form 92015-CA or 92016- CA
  • (Application form)
  • (2)(a) Articles of Incorporation
  • (2)(b) By-laws
  • (2)(c) IRS tax exemption ruling

103
123
Curable Deficiencies (contd)
  • (4)(c)(ii) Energy efficiency
  • (4)(d)(i) Evidence of site
  • control (202 Only)
  • (4)(d)(ii) Evidence site is free of
    limitations, restrictions,
    or reverters
  • (202 Only)

104
124
Curable Deficiencies (contd)
  • (4)(d)(vi) Phase I Environmental Site
    Assessment (202 Only)
  • (4)(d)(vii) SHPO Letter
  • (4)(d)(viii) Seek Alternate Site (811 Only)

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Curable Deficiencies (contd)
  • 8(d) Form HUD-2880, Appl/Recipient
  • Disclosure/Update Report
  • (e) Form HUD-2991, Cert. of
  • Consistency with Consolidated Plan

107
127
Curable Deficiencies (contd)
  • 8 (f) Form HUD-92041, Conflict of
  • Interest Resolution
  • (g) Form HUD-92042, Resolution
  • for Commitment to Project
  • (i) Form HUD-2530, Previous
  • Participation Certification

108
128
Curable Deficiencies (contd)
  • Section 811 Only
  • 8 (j) Form HUD-92043,
  • Supportive Services
  • Certification

109
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