(cip) guidelines - Ohio Housing Finance Agency

OHIO HOUSING FINANCE AGENCY
2014 CAPITAL IMPROVEMENT
PROGRAM (CIP) GUIDELINES
web www.ohiohome.org | tollfree 888.362.6432
OHIO HOUSING
FINANCE AGENCY
The Ohio Housing Finance Agency is an Equal Opportunity Housing entity. Loans are available on a fair and equal basis regardless of race, color, religion, sex,
familial status, national origin, military status, disability or ancestry. Please visit www.ohiohome.org for more information.
2014 CIP GUIDELINES
SECTION 1: PROGRAM INFORMATION
Purpose
Ohio Mental Health and Addiction Services (OhioMHAS) has been providing capital funds since
the late 1980’s for housing for persons with severe and persistent mental illness. Since that time,
approximately 4,800 units of permanent supportive housing have been created. As the existing housing
stock continues to age, preservation of these assets becomes critical to avoid loss of units within Ohio’s
housing portfolio.
The Ohio Housing Finance Agency (OHFA) will partner with OhioMHAS and set aside approximately $3
million of Ohio Housing Trust Fund dollars for a Capital Improvement Program (CIP). OhioMHAS intends
to set aside $1 million in Capital Funds based on funding availability for a grand total of $4 million in
available CIP funding. OHFA and OhioMHAS expect to preserve approximately 80-100 housing units in
2014. This funding will be available to address a more comprehensive rehabilitation to existing capital
funded buildings by bringing the housing to current quality standards.
Questions regarding OhioMHAS mortgages should be directed to:
Doug Bailey
[email protected]
Questions regarding program guidelines should be directed to one of the following:
Karen M. Banyai [email protected]
Celia Elkins
[email protected]
Virgie Vaido
[email protected]
Kat Berry
[email protected]
Funding
Funding will be available to address the substantial rehabilitation of OhioMHAS mortgaged properties.
Buildings will be limited to $25,000 - $50,000 per unit based on the scope of work. However, other
sources of funding are permissible and applicants may exceed these limits if using other funding
sources.
Funds may be spent on construction costs and a developer fee that is up to 15 percent of the total
development costs. The developer fee may be used to reimburse hard pre-development costs,
compensate for an experienced partner, cover costs that may not be covered in other budget line items
or as a straight developer fee.
These guidelines may be subject to change, pending developments in federal and state legislative
requirements and/or OHFA and OhioMHAS policy.
OHFA reserves the right to increase and/or expand awards based on the availability of resources.
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2014 CIP GUIDELINES
SECTION 2: ELIGIBILITY
Eligible Projects
Buildings that meet the following requirements will be considered for funding:
• Permanent Supportive Housing (PSH) or Service Enriched Housing (SEH), as specified in the Gap
Financing Application. See definitions for PSH and SEH on last page of the guidelines.
• Each unit must have a bedroom, bathroom, and kitchen.
• All buildings included in the application must have a current OhioMHAS mortgage.
• The building must contain at least four units (i.e. a four or more unit building, two duplexes, or four
single buildings).
• All buildings in the project must be in reasonably close proximity but, at a minimum, within the same
county.
• All projects must have a cap of 20 units per building.
• Residents must have a standard tenant landlord lease. However, OHFA will accept projects that
offer month to month leases. Applicant leases must be renewed annually unless for cause.
• The scope of work must address, at a minimum, the healthy, safety, and code issues for all units
within the structure(s) including, but not limited to, lead and asbestos abatement.
• Buildings that were awarded funds in the Capital Improvements Pilot Program in 2011 may be
considered for funding, but the scope of work may not include or affect work funded during the pilot.
However, this is the last year projects funded in 2011 will be able to compete. Projects previously
funded with CIP grant dollars in 2012 and 2013 are not eligible to participate.
Eligible Applicants
The following applicants will be considered for funding:
• 501(c)(3), 501(c)(4) or public housing authorities (MHA and PHAs) non-profit organizations in good
standing with both OHFA and OhioMHAS.
• Local mental health boards in good standing with both OHFA and OhioMHAS.
Applicants will also be required to meet the following conditions:
• Applicants must demonstrate approval and support of their local mental health board.
• Applicants must have experience or a partner with experience in doing similar rehabilitation.
• Applicants will be limited to one application, which may include multiple properties.
• Applicants will be limited to a maximum award of $500,000.
• Applicants must have sole ownership of all buildings they submit.
• Applicants must have attended the March 14, 2014 training in order to be eligible to apply.
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2014 CIP GUIDELINES
SECTION 3: PROCESS AND PROJECT SELECTION
Program Calendar
May 2, 2014 CIP Applications Due
May 12 – June 27, 2014
Site Visits
July 3, 2014
Funding Decisions
August 15, 2014
Next Steps Meeting 9:00- 4:00pm at ODOT Columbus, Ohio
Submission Requirements
The following materials must be submitted to OHFA’s Office of Planning, Preservation & Development,
57 East Main Street, Columbus, Ohio 43215. Materials must be received no later than 4:00 p.m. May 2.
The submission requirements are as follows:
1.
Capital Improvement Grant Program Application
The Capital Improvement Grant Program application and all required materials must be
submitted on a compact disc, organized and formatted according to the index provided with the
application. Applications must be complete and consistent with all supporting documentation.
Any applications that are incomplete, inconsistent, and/or illegible will be rejected. OHFA defines
incomplete as any required documentation that is not curable within a two-week period.
2.
Scope of Work
A scope of work which includes a cost estimate detailing the rehabilitation of the proposed
building(s) must be submitted. The scope of work must meet the requirements that were outlined
during the mandatory traning on March 14, 2014.
Provide pictures of the property(s) specifically, those areas of need. Identify property(s) and
nearby sites on area map.
Capital Needs Assessments (CNA) will be provided for the highest scoring projects. OHFA will
contract and pay for the CNA’s to be completed.
3.
Development Team Experience
The applicant should include information on their development team’s experience with substantial
rehabilitation and property management.
Nonprofits must provide nonprofit status.
All agencies must provide their organizational chart and resumes for key development staff.
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2014 CIP GUIDELINES
4.
Building Narrative
A building narrative must be submitted that, at a minimum, describes the history of the building,
why the building is important to rehabilitate, and a history of the building maintenance. Building
narratives should be comprehensive and provide as much detail as possible. Narrative should not
be more than three pages.
5.
Letter of support from local mental health board
Applicants must submit a letter of support from their local mental health board affirming that they
are aware of the intended rehabilitation and support the intended proposal.
If the applying agency is a board, the board of trustees must provide a board resolution approving
the submission of their application.
6.
Additional Supporting Documentation for Competitive Criteria
Applicants should include documentation to support any point categories that would require
additional explanation or evidence.
The applicant must clearly mark the physical location of the site and provide a detailed map and
any landmarks that depict the roads leading to the site.
Utility allowance documentation must be provided.
OHFA and OhioMHAS reserve the right to require any additional documentation on a case by case
basis.
OHFA and OhioMHAS reserve the right to decline participation based on prior experience or projects that
are currently under construction in which the partner is involved.
A complete checklist of all required documents can be found in the Index Tab of the CIP application.
Site Visits
OHFA and OhioMHAS will conduct a site visit to gather information that will be used to help evaluate
applications.
• Up to two representatives of the applicant who are familiar with the housing proposal are
encouraged to accompany OHFA and OhioMHAS staff to answer any questions.
• The applicant may request in advance that additional representatives be present if necessary and
acceptable to OHFA and Ohio MHAS.
• All site visits will be scheduled at a time convenient to OHFA and OhioMHAS review staff. There
may be two site visits, one from the CNA consultant and the other from the OHFA and Ohio MHAS
staff. The dates of the site visits will be coordinated whenever possible.
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2014 CIP GUIDELINES
Selection Criteria
Projects will be selected based on the strategic criteria outlined in this section. Points for each criterion
will be awarded at the sole discretion of OHFA and OhioMHAS, based upon how specific proposed
applications meet the intent of the criteria and against other applications submitted.
Applicant Capacity
40 Points
Applications may receive a score of up to 40 points for demonstrating applicant capacity. This
information will be derived from the project narrative and any additional documentation. The score will be
determined by the following:
• (5 pts.) The steps being taken to improve and/or increase capacity, including on-going staff training.
• (5 pts.) Provide a maintenance schedule from the last three years for the unit(s).
• (2 pts.) The frequency of meetings between property owners and the service providers (case
managers and property managers) to discuss the needs of the residents.
• (3 pts.) The frequency of unit visits by the applicant, case management and property managers.
• (2 pts.) The frequency of meetings between maintenance staff and the management team.
• (20 pts.) The experience of the applicant or partner with experience doing similar rehabilitation in
this category.
• (3 pts.) The management history, including but not limited to vacancy rates, how often unit owners
meet to checks on properties, how often management meets with maintenance staff, and any
properties that the applicant has been involved in that have been foreclosed upon.
Review of applicant’s credit report: OHFA will order credit reports for all applicants (we will not be scoring
on credit reports, but credit reports will be pulled and considered).
(Extra consideration will be given to groups working with supportive services and meeting regularly with
case managers.)
Applications that do not receive a score of at least 30 points will not be considered for funding and will
not be scored for Financial or Building Characteristics.
Financial Characteristics
40 Points
Applications may receive a score of up to 40 points based on financial characteristics. This score will be
determined by the following criteria:
• (10 pts.) Applicant’s history of the use of replacement reserves to maintain the property.
• (10 pts.) Applicant’s ability to leverage other funds for this project.
• (10 pts.) Applicant’s ability to develop creative cost savings techniques to maximize resources.
• (10 pts.) Applicant’s ability to demonstrate that the project will be sustainable.
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Building Characteristics
20 Points
Applications may receive a score of up to 20 points based on the characteristics of the buildings
included in the proposed rehabilitation. This score will be determined by the following criteria and will be
determined following the site visit:
• (10pts.) The scope of work for the building is consistent with the capital needs assessment
completed by OHFA.
• (10 pts.) The building units’(s) capital needs are appropriate for the Capital Improvement Program.
This will be completed by the OHFA contractor.
OHFA reserves the right to make final funding decisions based on the following strategic priorities:
• Highest priority units (regardless of points) include critical units in a specific area of scarce housing
resources for the population. We reserve the right to fund these projects regardless of the total
points received. OhioMHAS will be critical in the final determination.
• OHFA will consider the geographic distribution of resources based on 2013 and the current funding
round.
• 50 percent of Ohio Housing Trust Fund dollars must be allocated to Non-Participating Jurisdiction
(Non-PJ) areas.
• The efficient use of resources to reach the program’s goal of funding 80-100 units.
SECTION 4: POST AWARD
OHFA and OhioMHAS will meet with applicants to discuss next steps in moving forward in the application
process.
Successful applicants may be required to work with OHFA’s architect to finalize a scope of work.
Applicants may not enter into a contract before OHFA approval. Any activities paid through OhioMHAS
will be subject to public bid.
OHFA requires successful projects to conduct and complete a public notification process.
OhioMHAS will require that awarded projects have a contract mortgage and note for 30 years. OHFA’s
term will be 30 years in the form of a grant or forgivable loan. All projects will be required to have a
restrictive covenant ensuring the affordability and occupancy for 30 years.
The applicant must contract with a third party inspector during the construction process to oversee and
report on the rehabilitation.
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Definitions:
Leveraging - to use an initial investment, credit, or borrowed funds to obtain additional (usually a larger
amount) funding; to gain a higher return in relation to one’s investment; to control a larger investment; or
to reduce one’s own liability.
Permanent Supportive Housing (PSH) - housing that provide access both to affordable housing and
to a flexible and comprehensive array of supportive services designed to help tenants to achieve and
sustain housing stability and to move toward recovery. Housing is covered by Ohio tenant-landlord
law. For the purposes of this grant each unit must have a bedroom, kitchen and bathroom. PSH is
an evidence-based practice for people with mental illnesses and is typically defined by the following
features:
• Tenant households execute leases (or sub-lease) agreements with the same rights and
responsibilities as other households renting housing in the community;
• Tenants are not required to have roommates;
• Supportive services are readily available to tenants, are designed to promote housing stability, and
include access to crisis services 24 hours per day, 7 days a week;
• Supportive services are flexible and individualized, adjusted to meet the tenants’ evolving needs
and preferences;
• On-going participation in supportive services is not required in order for tenants to retain their
housing; and
• Access to the housing opportunity and the services is not time-limited.
Service-Enriched Housing - a housing setting where a person is living in an apartment and has entered
into an agreement that may not be covered by Ohio tenant landlord law. This housing is contingent upon
adherence to rules or specific services. Typically owned and managed by ADAMH/CMH/ADAS Board,
provider or private owner. For the purposes of this grant, the individual must have their own apartment
that includes a kitchen, bedroom and bathroom.
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