Chapter 7: Distressed Rental Property Application Forms and Instructions
I. Eligibility
A. Eligible Applicants
Eligible applicants are local or regional non-profit 501(c)(3) or 501(c)(4) housing or related service organizations, local units of government, Public Housing Authorities, and state-designated Community Housing Development Organizations.
B. Eligible Activities
NAHTF funds will be available for affordable rental housing projects for families, elderly, and/or special needs populations that were financed with NAHP funds and remain in the NAHP affordability period. Activities include rehabilitation, debt refinance, project operating reserve and project replacement reserve capitalization.
C. Ineligible Activities
Any activity not specifically authorized under Eligible Activities is ineligible to be carried out with NAHTF funds. This section further identifies ineligible activities.
1. The following activities if not directly related to eligible housing activities: housing education, acquisition of property and easements, public facilities development or improvements, relocation, clearance, and demolition.
2. Rental projects that were not financed with NAHP funds.
3. Rental projects that were financed with NAHP funds, but the affordability period has expired.
4. Mobile homes, as defined by the Department.
D. Eligible Costs
1. Rehabilitation: This includes the alteration, improvement or modification of an existing structure. Rehabilitation may include adding rooms, which are not dwelling units, outside the existing walls of a structure.
2. Relocation Costs: Both permanent and temporary relocation assistance are eligible costs. Staff and overhead costs associated with relocation assistance are also eligible.
3. Housing Management/Project Soft Costs: Housing Management/Project Soft Costs must be reasonable. These costs may include the following: Finance-related costs; credit reports; title binders and insurance; surety fees; transaction taxes; legal and accounting fees, including cost certification; appraisals; environmental reviews; builders’ or developers’ fees; architectural, engineering and related professional services; homebuyer counseling; project audit costs; affirmative marketing and fair housing services to prospective tenants of an assisted project; and staff costs directly related to the project.
4. Capitalization of Operating Reserves: NAHTF funds may be used to fund an operating reserve deficit. The reserve may be used to pay for project operating expenses, scheduled payments to a replacement reserve and debt service.
5. Capitalization of Replacement Reserves: NAHTF funds may be used to fund replacement reserve deficit. The reserve may be used to pay for replacement of components and systems consistent with a Capital Reserve Schedule.
E. Grant Amounts
The maximum grant amount request is $400,000. This amount is to be used as a guideline. Amount of award will be determined on a case-by-case basis with consideration given to the number of applications and scoring and ranking criteria.
II. Application Instructions and Forms
This section contains all forms and exhibits to be submitted so that your application can be scored and ranked effectively. Application narratives should be thorough and concise. The Department reserves the right to verify all information and to consult with other agencies on the proposed project.
Generally, there are more applicants requesting funds than there are funds available. Applicants must carefully read and review the (1) 2009 Housing and Community Development Annual Action Plan Housing Priority Section and (2) Application Guidelines Chapters 1, 2, 3 and 7 to develop a competitive application.
A. Verified Information
The Department may contact the applicant for further information on any thresholds. The Department may non-select an application if any or all of the following thresholds cannot be verified.
1. Application and corresponding Parts are complete.
2. The applicant is eligible.
3. Activities are eligible and comply with national objectives and Nebraska Affordable Housing Program priorities.
4. Applicant has addressed and cleared all compliance problems (i.e. Davis-Bacon, acquisition, fair housing, etc.), if any from past awards and have responses accepted by NDED.
5. Applicant is current with all reporting requirements (semiannual status reports, closeout reports, audit reports, notification of annual audit reports, Implementation Schedule, etc.).
6. Applicant has achieved the required percentages, by the application due date, of State CDBG funds drawn down for prior State CDBG. All CDBG awards will be reviewed including those within the housing program except for Economic Development awards.
CDBG 2007 Award Drawn Down 90%
CDBG 2006 & Prior Award Drawn Down 100%
The percentage for funds drawn down shall be figured by NDED based on the final application acceptance date, except for applicants awarded funds after the initial award date in which funds drawn down shall be based on the proportionate number of months that have lapsed since the initial grant award.
7. Preliminary Property Condition Assessment & Design – Please attach a property condition assessment that is less than one year old. Applicants are highly encouraged to work with all project owners to develop the property condition assessment. The assessment must include a Capital Reserves Schedule, immediate and short-term repairs cost estimate, evaluation of the existing buildings, building architectural and structural systems, building mechanical and electrical systems, interior information on dwelling units and any other structures. [Attach Property Condition Assessment] – Attach an architectural design of the units, including schematic floor plans of the various unit sizes. List all applicable local, state and/or national building codes, zoning requirements and covenants, and describe how the project meets them.
8. Project Physical and Financial Condition Review - Explain when the physical and financial condition review request was made to the NDED Regional Housing Specialist and the results of the review. Requests must have been made in writing to NDED by March 15, 2009. The NDED Housing Specialist must review and approve the project as a distressed rental property.
9. Fair Housing – Provide an explanation of the Fair Housing Act and Section 504 accessibility requirements applicable to the project. Explain what Fair Housing Act and Section 504 requirements apply to the project and how they will be met and/or exceeded. Requirements are not limited to project design. NDED may consult other agencies to review the project for compliance with these requirements.
10. Timeline – Your Implementation Schedule must indicate completion of the project assistance within 24 months.
In submitting your application, these instructions must be followed:
· Submit original (unbound and 2-hole punched) and 4 complete copies of the application.
· Two-Hole punch the original application in the center top.
· Do not staple.
· Table of Contents must be included.
· All pages must be numbered in sequence at the bottom right-hand corner of the page.
· All Exhibits must be labeled at the bottom right-hand corner of the page.
· All Attachments must be labeled at the bottom right-hand corner of the page.
Below is an outline of what your Rental Project Application should look like.
A. Part I General Information (use required form)
B. Part II Funding Summary (use required form)
C. One Page Project Summary
D. Table of Contents (include page numbers)
E. Part III Project Budget and Financing
F. Part IV Workout Plan
G. Part V Proposed Implementation Schedule (see Part V)
H. Part VI Release of Funds Items (submit required documentation – narrative not to exceed 1 page)
I. Part VII Project Design and Impact (include narrative not to exceed 8 pages)
J. Part VIII Required Exhibits
Local Government applicants:
EXHIBIT A - Notice of Required Public Hearing or Public Meeting Notice (sample format provided) - Exhibit A form language must be used for the official public hearings and must be submitted with either Proof of Publication or Certificate of Posting, and a summary of citizens’ comments.
EXHIBIT B - Authorizing Resolution (sample format provided) – must be completed after the citizens’ comment period regarding Exhibit A-- Notice of Required Public Hearing or Public Meeting Notice.
EXHIBIT C – Statement of Assurances and Certifications (required form)
EXHIBIT F -- Applicant Certification of Rental Project Federal Assistance Form
EXHIBIT G – Determination of level of Environmental Review
Non-profit organization and Public Housing Authority applicants:
EXHIBIT A - Notice of Required Public Hearing or Public Meeting Notice (Exhibit A form language must be used for the official public hearings and must be submitted with either Proof of Publication or Certificate of Posting, and a summary of citizens’ comments.)
EXHIBIT D- Applicant Certification Form (required form)
EXHIBIT E - Authorizing Resolution for Non-profit organization and Public Housing Authority Applicants (sample format provided)
EXHIBIT F – Applicant Certification of Rental Project Federal Assistance Form
EXHIBIT G – Determination of Level of Environmental Review
K. ATTACHMENTS Provide additional supplemental documentation identified in the instructions or referred to in Part IV or Part V narrative information. These items may include a Notice of Public Hearing, Public Meeting Notice Proof of Publication, Certificate of Posting, and a summary of citizens’ comments.
For Application Assistance Please Contact Your Regional Housing Specialist.
Region
/Housing Specialist
/Phone Number
/Email Address
Northeast / Brian Gaskill / (402)471-2280 /Central / Pat Compton / (308)865-6511 /
Western / Kristi McClung / (308)889-3420 /
Southeast / Lydia Wiles / (402)471-4169 /
2009 APPLICATION FOR
Application Number
09-TFDR-
Date Received
NEBRASKA AFFORDABLE HOUSING PROGRAM
DISTRESSED RENTAL PROPERTY ASSISTANCE
Nebraska Department of Economic Development (NDED)
PART I. GENERAL INFORMATION
Pre-application Number (if applicable): 09-______
TYPE OR PRINT ALL INFORMATION
1. APPLICANT IDENTIFICATION / 2. PERSON PREPARING APPLICATIONApplicant / Name
Contact / Address
Address / City/State/Zip
City/State/Zip / Telephone / ( / )
Telephone / ( / ) / Fax / ( / )
Email Address
Fax / ( / ) / Application Preparer (Check one)
Federal Tax I.D. Number / Developer / Economic Development District
Email Address / Local Staff / Consultant / Other, Specify
CHDO / Housing Authority
3. HOUSING ACTIVITIES Check all that apply
Debt Refinance Capitalization of Replacement Reserves
Rehabilitation Capitalization of Operating Reserves
4. TYPE OF APPLICANT / 5. SERVICE AREA
Unit of Local Government / Non-Profit 501(c)4 / Area to be served (city, county, region, etc.)
Legislative District (s)
Non-Profit 501(c)3 / State-designated CHDO / Congressional District (s)
Local Or Regional Housing Authority / LIHTC Qualified Census Tract
6. NAHTF Region Indicator (check all that apply) / 7. Project Name and Location
Panhandle – Region 1 (Western Investment Zone)
North Central – Region 2 (Central Investment Zone)
Southwest – Region 3 (Western Investment Zone)
South Central – Region 4 (Central Investment Zone)
Northeast – Region 5 (Northeast Investment Zone)
Southeast – Region 6 (Southeast Investment Zone)
Lincoln– Region 8 (Southeast Investment Zone) / Current NAHP award # ______
Total Number of Units # ______
Project Name ______
Project Address ______
______
9. CERTIFYING OFFICIAL:
To the best of my knowledge and belief, data and information in this application are true and correct, including any commitment of local or other resources. This application has been duly authorized by the governing body of the applicant. This applicant will comply with all Federal and state requirements governing the use of NAHP funds.
Signature in ink Typed Name and Title Date
SUBMIT THE ORIGINAL (UNBOUND and TWO-HOLE PUNCHED) AND FOUR COPIES OF THE ENTIRE APPLICATION TO:
Nebraska Department of Economic Development
Division of Community and Rural Development
PO Box 94666 - 301 Centennial Mall South
Lincoln, NE 68509-4666
2009 NAHP Annual Application Cycle Application Guidelines
Chapter 7 Distressed Rental Property Chapter 7-12 January 2009
RENTAL HOUSING CATEGORY
PART II - FUNDING SUMMARY (Round amounts to the nearest dollar.)
ActivityCode Activity /
NAHP Funds
/ Bank Loan / NIFA Tax Credit equity / Deferred Developer Fee / Other / Total541 / Rehabilitation
SF 1-4 Unit bldgs
544 / SF 1-4 Unit bldgs. Housing New Const. Rental 1
561 / Rehabilitation
Multi-family
562 / MF New Const. Rental 1
523 / Relocation
580 / Housing mgt.
(soft costs)
580a / Paint Testing/Risk Assessment/Clearance Testing
582 / Capitalization of Operating Reserves
581 / Capitalization of Replacement Reserves
TOTAL
1 Debt reduction related to costs associated with original project construction that are currently financed with unsupportable debt.
Part I: General Information Instructions
Type or print all information except where signatures are required.
Pre-application Number: Enter the Pre-application number assigned by the Department (if applicable).
Box 1: Provide the requested information.
Box 2: Enter the name, mailing address and telephone number of the person who prepared the
application. If prepared by a firm, identify the staff contact person. Check the appropriate application
preparer status box.
Box 3: Check the appropriate box(es) for the type of activity(ies) for which the application is made
including proposed activities to be funded with both NAHP funds and non-NAHP Other funds.
Box 4: Check the appropriate applicant type box under which funds are being requested. If this is a
joint application, check the appropriate type of applicant for the lead applicant.
Box 5: Indicate the project location(s). Enter the appropriate Congressional and Legislative District(s)
information.
Box 6: Indicate which NAHTF Region your project will be located in. The application activities must be
confined to one Investment Zone. Refer to the map in Chapter 1 of the 2009 Annual Action Plan for identification of NAHTF region and NAHP Investment Zone boundaries.
Box 7: Indicate the name of the project and the location(s). Also, include the total number of units in
the project and the NAHP grant number.
Part II. Funding Summary Instructions
· Round all dollar amounts to the nearest dollar.
· Describe ALL other funds, including funds provided by the lenders, developers, builders, etc. during the development phase.
· Support activities are activities that are only allowed in conjunction with primary activities. Support activities include infrastructure costs, relocation, demolition, etc.
· Type the name and title of the Certifying Official and date. The certifying official for a local government applicant is the chief elected official. The Certifying Official for a non-profit or public housing authority applicant is the official authorized by the governing body to sign applications for state and federal funding. If the Certifying Official for a non-profit or public housing authority is not the Board President or Board Chair, attach the authorizing documentation of the governing body for the certifying official to sign the application.