State of Connecticut. Substantial Amendment to the Action Plan for Housing and Community Development for National Housing Trust Fund

Transcription

1 State f Cnnecticut Substantial Amendment t the Actin Plan fr Husing and Cmmunity Develpment fr Natinal Husing Trust Fund Submitted t the U.S. Department f Husing and Urban Develpment by the State f Cnnecticut August 2016

2 State f Cnnecticut Natinal Husing Trust Fund TABLE OF CONTENTS I. EXECUTIVE SUMMARY... 1 Overview... 1 Perfrmance... 3 Objectives and Outcmes... 4 Citizen Participatin... 4 Other Outreach... 5 II. INTRODUCTION... 6 III. CITIZEN PARTICIPATION... 9 A. Outline f Activity fr Public Hearings/Public Cmment:... 9 B. Other Outreach... 9 IV. NATIONAL HOUSING TRUST FUND (NHTF) A. Prgram Summary B. FY Resurce Allcatin Plan fr the NHTF Prgram C. Applicatin Eligibility D. Other Requirements E. Applicatin Prcess fr the NHTF Prgram F. Eligible Husing V. ATTACHMENTS List f Tables Table 1: DOH Anticipated State and Federal Funding Develpment and Husing Supprt... 2

3 I. EXECUTIVE SUMMARY Overview This Substantial Amendment t the Annual Actin Plan fr Husing and Cmmunity Develpment fr the Natinal Husing Trust Fund is the first amendment t the state s Annual Actin Plan fr Husing and Cmmunity Develpment. The Annual Actin Plan Fr Husing and Cmmunity Develpment is the secnd actin plan under the State f Cnnecticut s Cnslidated Plan fr Husing and Cmmunity Develpment (CnPlan), the five-year plan addressing Cnnecticut s husing and cmmunity develpment needs. The state submits the CnPlan t the U.S. Department f Husing and Urban Develpment (HUD) in rder t be eligible t receive funding under the HOME Investment Partnerships (HOME), Small Cities Cmmunity Develpment Blck Grant (SC/CDBG), Emergency Slutins Grant (ESG), Husing Opprtunities fr Persns with AIDS (HOPWA), and with this substantial amendment, the Natinal Husing Trust Fund (NHTF) Prgram. The prgram year fr the annual Actin Plan is based n the state fiscal year, July 1 - June 30. The Actin Plan is fr the state fiscal year July 1, 2016 t June 30, The NHTF prgram was created by sectin 1131 f the Husing and Ecnmic Recvery Act f 208 (Public Law ). Sectin 1131 amended the Federal Husing Enterprises Financial Safety and Sundness Act f 1992 (12 U.S.C et seq.) t add a new sectin 1337 Affrdable Husing Allcatin and a new sectin 1338, Husing Trust Fund. NHTF prvides frmula grants t states t increase and preserve the supply f decent, safe, and sanitary affrdable husing fr extremely lw-incme and very lw-incme husehlds, including hmeless families. HUD published an interim rule fr NHTF (Interim Rule) n January 30, The rule, cdified at 24 CFR Part 93, establishes bth the prgram requirements and the frmula fr allcating grant funds t states. The NHTF allcatin plan is an annual submissin t HUD that describes hw the state will distribute the NHTF funds, including hw it will use the funds t address its pririty husing needs. The allcatin plan als describes what activities may be undertaken with NHTF funds and hw recipients and prjects will be selected. This substantial amendment (NHTF allcatin plan)

4 includes the requirements and criteria fr the selectin f applicants t meet the required funding pririties, as fllws: Gegraphic Diversity; Applicant Capacity; Prject-based Rental Assistance; Duratin f Affrdability Perid; Pririty Husing Needs f the State; Leveraging; Eligible Activities; Eligible Recipients; Perfrmance Gals and Benchmarks; Maximum Per-unit Develpment Subsidy Limits; and Rehabilitatin Standards. The Actin Plan, including this substantial amendment prvides a plan fr expending FY funds fr the fllwing prgrams: Table 1: Anticipated State and Federal Funding Fr Develpment and Husing Supprt Husing (DOH) State HUD FY FY Ttal HOME $ 0 $ 6,570,671 $ 6,570,671 SC/CDBG $ 0 $ 12,162,864 $ 12,162,864 Affrdable Husing (Flex) $ 140,000,000 $ 0 $ 140,000,000 Energy Cnservatin Lan Prgram $ 0 $ 0 $ 0 Subsidized Assist Living Demnstratin $ 2,198,146 $ 0 $ 2,198,146 Elderly Rental Registry & Cunselr $ 1,054,087 $ 0 $ 1,054,087 Fair Husing $ 670,000 $ 0 $ 670,000 Husing Assistance and Cunseling $ 369,376 $ 0 $ 369,376 Elderly/Cngregate Rental Assistance $ 2,017,778 $ 0 $ 2,017,778 Cngregate Operating Subsidy $ 7,517,798 $ 0 $ 7,517,798 Tax Abatement $ 1,087,450 $ 0 $ 1,087,450 Husing Trust Fund (State) $ 15,000,000 $ 0 $ 15,000,000 Natinal Husing Trust Fund (Federal) $ 0 $ 3,000,000 $ 3,000,000 TOTAL $ 169,914,635 $ 21,733,535 $ 191,648,170 Surce: DOH/OPM 1 Please nte that the funding amunts represented fr each prgram are subject t cngressinal r legislative actin, which culd affect an increase, reductin r eliminatin f the funding amunts nted.

5 Perfrmance The CnPlan is a five-year strategic plan that examines the husing market, describes the husing needs f extremely lw-, lw- and mderate-incme residents, utlines strategies t meet these needs and lists all resurces available t implement thse strategies, and utlines gals, bjectives and measures. The CnPlan sets a unified visin, lng-term strategies and shrt-term actin steps t meet pririty needs. This substantial amendment is the first amendment t the Annual Actin Plan fr Husing and Cmmunity Develpment. This substantial amendment utlines the gals, bjectives, and strategies fr the implementatin f the Natinal Husing Trust Fund as it relates t the state s CnPlan and the state s Annual Actin Plan fr Husing and Cmmunity Develpment. This substantial amendment describes hw the state will utilize Natinal Husing Trust Funds t address its affrdable husing needs. The Cnslidated Annual Perfrmance Evaluatin Reprt (CAPER) is the annual reprt submitted t HUD that details the prgress DOH has made in carrying ut the CnPlan and the annual Actin Plan prvisins with respect t the federal CPD frmula grant prgrams fr a given prgram year. The state s prgram year is July 1 - June 30. The CAPER describes resurces made available, the investment f thse resurces, the amunt and surce f leveraged funds, the surce and use f prgram incme, gegraphic distributin and lcatin f investments, and the number f families and persns assisted and actins taken t affirmatively further fair husing. The CAPER is due within 90 days after the end f the state s prgram year. The mst recent CAPER was submitted t HUD n 9/15/15. It cntained perfrmance data fr the annual Actin Plan prgram year ending June 30, 2015 and can be accessed n DOH s website, under Publicatins. It is expected that the CAPER cntaining perfrmance data fr the annual Actin Plan fr the prgram year ending June 30, 2016 with regard t the Small Cities Cmmunity Develpment Blck Grant (SC/CDBG), HOME Investment Partnerships (HOME), Emergency Slutins Grant (ESG), and Husing Opprtunities fr Persns with AIDS (HOPWA) Prgrams will be submitted t HUD in September 2016.

6 Summary f federal funding anticipated fr FY : Small Cities Cmmunity Develpment Blck Grant (SC/CDBG) $ 12,162,864 HOME Investment Partnerships (HOME) $ 6,570,671 Emergency Slutins Grant (ESG) $ 2,179,417 Husing Opprtunities fr Persns with AIDS (HOPWA) $ 218,321 Natinal Husing Trust Fund (NHTF) $ 3,000,000 Objectives and Outcmes In this Substantial Amendment t the Actin Plan fr Husing and Cmmunity Develpment fr the Natinal Husing Trust Fund, we have utlined the state s prpsed accmplishments fr prgram year based n the perfrmance measurement system presented in the CnPlan and the Actin Plan fr Husing and Cmmunity Develpment, which is cnsistent with HUD s Ntice f Outcme Perfrmance Measurement System fr Cmmunity Planning and Develpment Frmula Grant Prgrams published in the Federal Register n March 7, Please refer t Sectin V. Prgram Activities, Sub-sectin K. Perfrmance Measurement f the FY Actin Plan fr mre detail regarding thse bjectives and utcmes. It is expected that the CAPER cntaining perfrmance data fr the annual Actin Plan prgram year with regard t the Small Cities Cmmunity Develpment Blck Grant (SC/CDBG), HOME Investment Partnerships (HOME), Emergency Slutins Grant (ESG), and Husing Opprtunities fr Persns with AIDS (HOPWA) Prgrams will be submitted t HUD in September Citizen Participatin In regard t Cnnecticut s Citizen Participatin Plan, when DOH slicited public input int the Annual Actin Plan fr Husing and Cmmunity Develpment, we included the pprtunity fr peple t prvide input n the NHTF during the citizen participatin prcess. At that time, DOH did nt receive cmments r feedback regarding the NHTF. NHTF frmula allcatins and guidance n the required cntent f the allcatin plan had nt been published at that time. As a result, the State f Cnnecticut develped this substantial amendment t the Actin Plan fr Husing and Cmmunity Develpment fr the Natinal Husing Trust Fund. DOH will hld n July 18, 2016, ne Public/Cmmunity Partner s Meeting with public and private husing (and related) agencies t: 1) slicit input int the develpment f the substantial

7 amendment and 2) slicit feedback and cmments n the drafted sectins f the substantial amendment. Legal ntice fr the public meeting will be published in tw newspapers acrss the state including ne in Spanish. The Legal Ntices will als be psted n DOH s web site, frwarded t all 169 municipal chief elected fficials, all public husing authrities and the reginal planning rganizatins (new cuncils f gvernment). An blast cntaining the Legal Ntice will be distributed t ur Cmmunity Partners, with a request t further disseminate the Ntice t their cnstituency. DOH will als slicit input n the draft substantial amendment thrugh a 30-day public cmment perid frm Thursday, July 7, 2016 t Mnday, August 8, The legal ntice and related dcuments are available n DOH s website. All cmments received will be summarized and respnded t in Attachment A f this dcument when in its final frm. Other Outreach There are ther ways in which DOH gathered infrmatin and input n what needs t cnsider in develping the Actin Plan and this Substantial Amendment. Fr example, there are meetings f apprximately 70 state bards and cmmissins thrughut the year that the Cmmissiner f DOH r designated staff (n behalf f the Cmmissiner) attends. Sme f the mre relevant cmmissins include the CT BOS/CC Steering Cmmittee; the Hmeless Management Infrmatin System (HMIS) Steering Cmmittee; CT Opening Drs Steering Cmmittee; CT Opening Drs- Crisis Re-tling Wrkshp; CT Opening Drs- Standards subcmmittee; Perfrmance Measurement Cmmittee and the Interagency Cuncil fr Supprtive Husing and Hmelessness, and the Interagency Cmmittee n Affrdable Husing.

8 II. INTRODUCTION The Substantial Amendment t the Annual Actin Plan fr Husing and Cmmunity Develpment fr the Natinal Husing Trust Fund is the first amendment t the state s Annual Actin Plan fr Husing and Cmmunity Develpment. The Annual Actin Plan Fr Husing and Cmmunity Develpment is the secnd actin plan under the State f Cnnecticut s Cnslidated Plan fr Husing and Cmmunity Develpment (CnPlan), the five-year plan addressing Cnnecticut s husing and cmmunity develpment needs. The state submits the CnPlan t the U.S. Department f Husing and Urban Develpment (HUD) in rder t be eligible t receive funding under the HOME Investment Partnerships (HOME), Small Cities Cmmunity Develpment Blck Grant (SC/CDBG), Emergency Slutins Grant (ESG), and Husing Opprtunities fr Persns with AIDS (HOPWA), and Natinal Husing Trust Fund (NHTF) Prgrams. The prgram year fr the annual Actin Plan is based n the state fiscal year, July 1 - June 30. The Actin Plan is fr the state fiscal year July 1, 2016 t June 30, References t sectins f the CnPlan are made thrughut this dcument. Nt all f these sectins are duplicated within this dcument. The CnPlan and Actin Plans are available frm the Cnnecticut Department f Husing (DOH) and can be viewed r dwnladed by visiting the Publicatins sectin f the DOH's web site at HUD published an interim rule fr NHTF (Interim Rule) n January 30, The rule, cdified at 24 CFR Part 93, establishes bth the prgram requirements and the frmula fr allcating grant funds t states. The activities, prgrams and resurces discussed in this substantial amendment (NHTF allcatin plan) will be administered by the Departments f Husing (DOH). The NHTF allcatin plan is an annual submissin t HUD that describes hw the state will distribute the NHTF funds, including hw it will use the funds t address its pririty husing needs. The allcatin plan als describes what activities may be undertaken with NHTF funds and hw recipients and prjects will be selected. This substantial amendment (NHTF allcatin plan) includes the fllwing requirements and criteria fr the selectin f applicants t meet the fllwing required funding pririties: Gegraphic Diversity The NHTF allcatin plan must prvide pririty fr funding based n gegraphic diversity, as defined by the state. The state s gegraphic

9 distributin pririties must be cnsistent with the state s certificatin that it will affirmatively further fair husing and any applicable Analysis f Impediments t Fair Husing Chice. Applicant Capacity The applicant s ability t bligate HTF funds and undertake eligible activities in a timely manner. Prject-based Rental Assistance The NHTF allcatin plan must include a funding pririty that cnsiders the extent t which the prject has federal, state, r lcal prject-based rental assistance s that rents are affrdable t extremely lw-incme families. Duratin f Affrdability Perid In accrdance with (d), all NHTF units in rental husing prjects, must have affrdability requirements fr a minimum f 30 years. The funding pririty in the NHTF allcatin plan shuld cnsider hw prject underwriting supprts the financial feasibility f the prject beynd the required 30- year perid. Pririty Husing Needs f the State The plan must prvide pririty fr funding based n the merits f the applicatin in meeting the pririty needs established by the state. Leveraging The pririties must include the extent t which the applicatin makes use f nn-federal funding surces. Eligible Activities If the state plans t select applicatins submitted by eligible recipients, the NHTF allcatin plan must require the applicatin t describe the eligible activities t be cnducted with NHTF funds (as prvided in ) and cntain a certificatin by the eligible recipient that NHTF assisted units will cmply with all NHTF requirements. Eligible Recipients The NHTF allcatin plan must describe eligibility requirements fr recipients 9specified by the definitin f recipient at 93.2). Perfrmance Gals and Benchmarks the NHTF allcatin plan must establish the perfrmance gals and benchmarks against which prgress will be measured. The perfrmance gals and measures must be cnsistent with the gals established in the affrdable husing sectin f the strategic plan (91.315(b)(2)). Maximum Per-unit Develpment Subsidy Limits The plan must establish the maximum per-unit develpment subsidy limit fr husing assisted with NHTF funds, adjusted fr the number f bedrms and based upn the gegraphic lcatin f the units. If the state chses t use subgrantees, the subgrantees must use the maximum per-unit develpment subsidy amunts established the state.

10 Rehabilitatin Standards The plan must include the state s rehabilitatin standards (required by (b)(1)) fr the NHTF-assisted husing. The standards must be described in sufficient detail t determine the required rehabilitatin wrk, including methds and materials. Summary f Public Cmments - Cmments made n substantial amendment and DOH respnses. Applicatins fr Assistance - HUD Frm SF-424 fr the NHTF. Certificatins - General and prgram specific certificatins as required by HUD.

11 III. CITIZEN PARTICIPATION In regard t Cnnecticut s Citizen Participatin Plan, when DOH slicited public input int the Annual Actin Plan fr Husing and Cmmunity Develpment, we included the pprtunity fr peple t prvide input n the NHTF during the citizen participatin prcess. At that time, DOH did nt receive cmments r feedback regarding the NHTF. NHTF frmula allcatins and guidance n the required cntent f the allcatin plan had nt been published at that time. As a result, the State f Cnnecticut develped this substantial amendment t the Actin Plan fr Husing and Cmmunity Develpment fr the Natinal Husing Trust Fund. Input and citizen participatin are being accepted at this time, and will be cnsidered part f the substantial amendment prcess. In accrdance with the attached Citizen Participatin Plan fr the Natinal Husing Trust Fund, DOH slicited public input with the develpment f the Substantial Amendment fr the Annual Actin Plan fr Husing and Cmmunity Develpment fr the Natinal Husing Trust Fund. DOH will hld n July 18, 2016, ne Public/Cmmunity Partner s Meeting with public and private husing (and related) agencies t: 1) slicit input int the develpment f the substantial amendment and 2) slicit feedback and cmments n the drafted sectins f the substantial amendment. Legal ntice fr the public meeting will be published in tw newspapers acrss the state including ne in Spanish. The Legal Ntices will als be psted n DOH s web site, frwarded t all 169 municipal chief elected fficials, all public husing authrities and the reginal planning rganizatins (new cuncils f gvernment). An blast cntaining the Legal Ntice will be distributed t ur Cmmunity Partners, with a request t further disseminate the Ntice t their cnstituency. DOH will als slicit input n the draft substantial amendment thrugh a 30-day public cmment perid frm Thursday, July 7, 2016 t Mnday, August 8, The legal ntice and related dcuments are available n DOH s website. All cmments received will be summarized and respnded t in Attachment A f this dcument when in its final frm. A. Outline f Activity fr Public Hearings/Public Cmment: NOTE: Prtins f this Sectin will be cmpleted upn clse f the public cmment perid, and prir t submissin t HUD. B. Other Outreach There are ther ways in which DOH gathers infrmatin and input n what needs t cnsider in develping the Actin Plan. Fr example, there are meetings f apprximately

12 70 state bards and cmmissins thrughut the year that the Cmmissiner f DOH r designated staff (n behalf f the Cmmissiner) attends. Sme f the mre relevant cmmissins include the CT BOS/CC Steering Cmmittee; the Hmeless Management Infrmatin System (HMIS) Steering Cmmittee; CT Opening Drs Steering Cmmittee; CT Opening Drs- Crisis Re-tling Wrkshp; CT Opening Drs- Standards subcmmittee; Perfrmance Measurement Cmmittee and the Interagency Cuncil fr Supprtive Husing and Hmelessness, and the Interagency Cmmittee n Affrdable Husing.

13 IV. NATIONAL HOUSING TRUST FUND (NHTF) A. Prgram Summary The State f Cnnecticut will cntinue its effrt t strengthen the abilities f state and lcal gvernments t expand and preserve the supply f decent, safe, sanitary, and affrdable husing with the use f FY Natinal Husing Trust Fund (NHTF). All NHTF Prgram assisted rental units will meet all prgram guidelines fr incme eligibility and accessibility. DOH will invest in the prductin f affrdable husing thrugh new cnstructin r rehabilitatin nly when it determines that the units prduced will remain affrdable fr the minimum required time perid under the NHTF. DOH, at its discretin, may extend the affrdability perid beynd the minimum required by the NHTF. DOH views the NHTF as primarily a prductin prgram meant t add units t the supply f affrdable husing fr extremely lw-incme (ELI) (with incmes nt greater than 30 percent f area median incme (AMI)) and very lw-incme (VLI) (with incmes nt greater than 50 percent f AMI) husehlds. DOH will use NHTF funds in cmbinatin with State Bnd Funds, federal HOME, federal Sectin 811 and ther funds t develp/rehabilitate extremely lw-incme husing. In accrdance with the prgram guidelines, all f the NHTF funds received in the first year will supprt the creatin f affrdable rental husing fr ELI persns r families. DOH seeks t expand access t affrdable husing thrugh the utilizatin f partnerships with stakehlders and ther funding rganizatins that leverage nn-state resurces fr develpment r preservatin f affrdable husing. B. FY Resurce Allcatin Plan fr the NHTF Prgram The FY HUD allcatin t DOH fr the NHTF is $3,000,000. Funds are subject t availability frm the federal gvernment. If changes t this distributin becme necessary, prcedures utlined belw will be bserved in making thse changes. Fr the first year in which NHTF funds are made available, DOH is required t spend NHTF funds n husing fr ELI families r families with incmes at r belw the pverty line, whichever is greater. In additin, administrative csts cannt exceed 10 percent f the annual grant. The amunt f prgram incme is expected t be $0 as the awards will be structured as grants.

14 FY Allcatin $3,000,000 State Administratin (10%) $ 300,000 Prgram Allcatin $2,700,000 Estimated Prgram Incme $ 0 Allcatin available fr eligible activities $2,700,000 C. Applicatin Eligibility NHTF applicatins will be selected based n the fllwing criteria: 1. Gegraphic Diversity Funding will be available in all 169 cmmunities. Pririty will be given t activities in higher pprtunity areas as demnstrated thrugh Opprtunity Mapping at the DOH website in accrdance with the mst recent Analysis f Impediments t Fair Husing Chice. 2. Applicant Capacity Applicant capacity will be determined using the fllwing criteria: Previus experience with the HOME/NHTF prgram and/r ther public financing, quality f wrk prduct, efficiency and effectiveness in prject management. Number f pen cntracts with the DOH. Applicant s ability t bligate NHTF funds and undertake eligible activities in a timely manner. Prir audit r mnitring perfrmance. 3. Prject-based Rental Assistance Pririty cnsideratin will be given t prjects r activities that have a firm cmmitment fr prject-based State r prject-based Federal rental assistance. An NHTF-assisted unit that has either prject-based State r prject-based Federal rental assistance attached t it may nt als receive NHTF perating cst assistance.

15 If prject-based State r prject-based Federal rental assistance are included as nted abve, the applicable prgram requirements related t site and neighbrhd standards will apply t an NHTF-assisted unit. 4. Duratin f Affrdability Perid The affrdability perid shall be nt less than 30 years fr rental husing units assisted with NHTF funds, beginning after prject cmpletin. The affrdability perid is designed t wrk in cnjunctin with the 30-year affrdability perid fr Lw Incme Husing Tax Credit (LIHTC) prjects. LIHTC r ther prjects that successfully underwrite beynd the 30-year affrdability perid shall be given additinal cnsideratin. 5. Pririty Husing Needs Pririty cnsideratin will be given t prjects r activities that are cnsistent with thse pririties detailed in the mst recent CnPlan. These pririties include but shall nt be limited t: Prjects/activities that address meeting underserved needs; Prjects/activities that cntribute t the preservatin f affrdable husing; Prjects/activities lcated in a neighbrhd identified in a neighbrhd revitalizatin strategy under 24 CFR (e)(2), a federally-designated Empwerment Zne r Enterprise Cmmunity, a state-designated Neighbrhd Revitalizatin Zne, r Neighbrhd Stabilizatin Prgram; Prjects/activities that prduce permanent supprtive husing units. 6. Respnsible Grwth and Livability Initiatives Pririty cnsideratin will be given t prjects that address any f the fllwing: Prject meets current state plicy fr cnsideratin as Transit Oriented Develpment; Addresses envirnmental justice issues; Demnstrates cmmunity/neighbrhd impact; Demnstrates sustainable develpment standards.

16 7. Eligible frms f Subsidy/Leveraging NHTF funds will be prvided as nn-interest-bearing lans r advances, deferred payment lans, r grants. Prgram incme is nt anticipated as a result f these subsidy types. Pririty cnsideratin will be given t thse prjects/activities that leverage nnfederal funding surces. 8. Eligible Activities NHTF funds will be used fr prjects/activities that prvide husing pprtunities fr ELI families. NHTF funds can be used fr the prductin, preservatin, and rehabilitatin f affrdable rental husing; fr perating csts f HTF-assisted rental husing; and fr reasnable administrative and planning csts. NHTF funds may be used fr new cnstructin r rehabilitatin f public husing units nly in accrdance with the fllwing: NHTF funds may be used fr new cnstructin f public husing as part f the Chice Neighbrhds (Chice) prgram under a HUD apprpriatin act r fr new public husing units that have been allcated and will receive lw-incme husing tax credits under sectin 42 f the Internal Revenue Cde f 1986 (26 U.S.C. 42). NHTF funds may be used fr the rehabilitatin f existing public husing units in which the public husing assistance will be cnverted and used at the prperties under the Rental Assistance Demnstratin (RAD) prgram under HUD s 2012 Apprpriatins Act (Pub. L , 125 Stat. 552, apprved Nvember 18, 2011) r subsequent statutes. NHTF funds may als be used fr the rehabilitatin f existing public husing under the Chice prgram, and f existing public husing units that have been allcated and will receive lw-incme husing tax credits under sectin 42 f the Internal Revenue Cde f 1986 (26 U.S.C. 42). The public husing units cnstructed using funds under this part must replace units that were remved frm a public husing agency s public husing inventry as part f a Chice prgram grant, r as part f a mixed financed develpment under sectin

17 35 f the 1937 Act. The number f replacement units cannt be mre than the number f units remved frm the public husing agency s inventry. The public husing units cnstructed r rehabilitated using funds under this part must receive Public Husing Operating Fund assistance (and may receive Public Husing Capital Fund assistance) under sectin 9 f the 1937 Act. These units cannt receive perating csts assistance r perating cst assistance reserves under this part. NHTF-assisted husing may nt receive Operating Fund r Capital Fund assistance under sectin 9 f the 1937 Act during the NHTF perid f affrdability. NHTF funds may be used fr affrdable husing in a prject that als cntains public husing units, prvided that the NHTF funds are nt used fr the public husing units and NHTF funds are used nly fr eligible csts, in accrdance with this part. NHTF-assisted husing must be permanent husing. Nt mre than ne-third (1/3) f the annual grant may be used fr perating cst assistance and perating cst reserves. Operating cst assistance may be prvided nly t rental husing acquired, rehabilitated, r newly cnstructed with NHTF funds. The cst f relcatin payments and ther relcatin assistance t persns displaced by the NHTF-assisted units are eligible csts. Relcatin payments include replacement husing payments, payments fr mving expenses, and payments fr reasnable ut-fpcket csts incurred in the temprary relcatin f persns. The activities and csts are eligible nly if the husing meets the prperty standards in , as applicable, upn prject cmpletin. Acquisitin f vacant land r demlitin must be undertaken nly with respect t a particular husing prject intended t prvide affrdable husing within the time frames established in the definitin f cmmitment in All applicatins will cntain a certificatin by the eligible recipient that NHTFassisted husing units will cmply with all NHTF requirements.

18 9. Eligible Recipients Applicatins will nly be accepted frm eligible recipients which include: units f general lcal gvernment (including ther PJ s: Participatin Jurisdictins), fr-prfit and nnprfit entities (including CHDO s and lcal husing authrities. Every cntract fr cnstructin r rehabilitatin shall cmply with state and federal labr standards. Furthermre, every cntract fr the cnstructin r rehabilitatin f husing that includes 12 r mre NHTF -assisted units must cmply with the Davis Bacn Act, 40 USC 276a 276a-5. In rder fr a recipient t be eligible, they must: Prvide a certificatin that any husing units assisted will cmply with NHTF requirements; Be in cmpliance with all existing DOH assistance agreements and cannt be in default under any CHFA r HUD-administered prgram; and Prvide a certificatin/demnstratin f cmpliance with all fair husing and equal emplyment pprtunities bligatins/guidelines. D. Other Requirements 1. Perfrmance Gals and Bench Marks Perfrmance gals and measures fr NHTF will be cnsistent with the gals established in the mst current CnPlan as fllws: Objective 1: Enhance suitable living envirnments fr lw- and mderate-incme thrugh Fair Husing and Husing Chice. Output: Imprve availability/accessibility by supprting the cnstructin and/r rehabilitatin. Outcme: Increased pprtunities fr husing chice. Indicatr(s): Increased husing chice fr lw-and-mderate-incme residents.

19 Number f prjects funded that prmte fair husing and further the state s fair husing effrts. Objective 2: Enhance suitable living envirnments thrugh the creatin f decent affrdable husing. Output: Prduce up t 20 newly cnstructed r rehabilitated rental units that serve husehlds. Supprt energy cnservatin/efficiency activities that wuld primarily serve ELI. Outcme: Increased rental husing pprtunities that serve ELI in a variety f gegraphies. Indicatrs: Number f newly cnstructed rental units. Number f newly rehabilitated rental units. Number f new multifamily husing units created in areas f high pprtunity. 2. Maximum Per Unit Subsidy Limit The ttal amunt f NHTF funds DOH may invest n a per-unit basis shall nt exceed 210% f the statewide per-unit dllar limitatins established under sectin 221(d)(3)(ii) f the Natinal Husing Act (12 U.S.C (d)(3)(ii)) fr elevatr-type prjects, as dllar limitatins are prvided by the US HUD Hartfrd Field Office, and adjusted and published by DOH, peridically. NATIONAL HOUSING TRUST FUND 2016 STATEWIDE MAXIMUM PER-UNIT SUBSIDY AMOUNT BEDROOMS: 0 Bedrm 1 Bedrm 2 Bedrm 3 Bedrm 4 Bedrm Sectin 221(d)(3)(ii) limits f the Natinal Husing Act (12 U.S.C (d)(3)(ii)) fr elevatr-type $137, $157, $191, $247, $271, prjects NHTF Maximum Per-Unit Subsidy $288, $330, $402, $520, $571, Effective July 1, 2016, until superseded Surce: US HUD Hartfrd Office CT Maximum Mrtgage Limits -- Sectin 234 Basic Elevatr Type Unit

20 3. Rehabilitatin Standard All NHTF assisted units (new and/r rehab) must meet lcal r state building cde, including but nt limited t the fllwing: Health and safety; Majr systems, including structural supprt, plumbing, electrical, and HVAC; and, Handicapped Accessibility Recipients must adhere t the fllwing regulatins gverning accessibility f federally assisted buildings, facilities and prgrams: Americans with Disabilities Act, Fair Husing Act and Sectin 504 f the Rehabilitatin Act f 1973; and Lead based paint. Fr new cnstructin, NHTF prjects must meet the energy efficiency standards established under sectin 109 f the Cranstn-Gnzalez Natinal Affrdable Husing Act f 1990 (42 U.S.C ) which was amended by Sectin 481 f the Energy Independence and Security Act f E. Applicatin Prcess fr the NHTF Prgram DOH will accept applicatins fr the NHTF Prgram thrugh ne r mre cmpetitive applicatin funding runds. DOH will prvide adequate advance ntice f fund availability and reserves the right t cease accepting applicatins at any time that all available funds have been cmmitted. Based n funding availability and ther cnsideratins, DOH may limit the number f applicatins that can be submitted by an eligible applicant in a funding rund. Ntificatin f such limitatin will be included in DOH s ntice f fund availability shuld DOH elect t set such a limitatin. Applicants fr NHTF funds are required t submit their requests in a cmpleted frmat using the Cnslidated Applicatin develped jintly by DOH and CHFA and used as the applicatin fr all DOH husing develpment prpsals. Staff will review the Cnslidated Applicatin and any attached materials t determine if the prject/activity meets minimum prgram eligibility and threshld requirements. Minimum prgram eligibility and threshld requirements include applicant s experience with the HOME/NHTF Prgram and/r ther public

21 financing, and current status f existing cntracts with DOH and CHFA. Applicatins that d nt meet basic eligibility and threshld requirements will be rejected fr funding. Depending n the nature f the prpsed activity, site inspectins may be cnducted by DOH staff. An evaluatin f the site s feasibility will be cmpleted and cnsidered as part f the review prcess. All applicatins, and any attached materials thrughut the applicatin prcess, may be reviewed and evaluated by senir staff in the Office f Husing Develpment. Applicatins will be cnsidered against financial and qualitative issues, including but nt limited t: Financial feasibility; Gegraphic diversity; The extent t which rents fr units in the prject are affrdable t ELI families and the duratin f the units affrdability perid; The merits f the applicatin in meeting the pririty husing needs f the jurisdictin; Reasnableness t prceed t cnstructin; Financial leveraging and firm financial cmmitments, including the extent t which the applicatin makes use f nn-federal funding surces; The extent t which the prject has Federal, State, r lcal prject-based rental assistance s that rents are affrdable t extremely lw-incme families. Scial and ecnmic impact n the neighbrhd, cmmunity, regin and state as defined in the strategies and pririties utlined in the CnPlan, including but nt limited t transprtatin, educatin, and jb creatin/retentin. Level f cnsistency with DOH s respnsible grwth criteria including cmpliance with the current Cnservatin and Develpment Plicies Plan fr Cnnecticut; Fair Husing and Equal Opprtunity Cmpliance; Number f current pen cntracts; Final recmmendatins t the Cmmissiner will be based n the verall quality f the applicatin as well as fund availability. Apprved applicants will receive ntificatin frm the Cmmissiner's ffice.

22 If the applicatin is nt apprved, senir staff will advise the applicant f the rejectin in writing and identify the reasns fr the rejectin. F. Eligible Husing Eligible husing shall cnsist f affrdable husing that has maximum rent (including utilities) that is established at 30 percent f the annual incme f a family whse incme equals 30 percent f AMI r 30 percent f the pverty line, whichever is greater. HUD will publish the NHTF rent limits n an annual basis. NHTF maximum rents will nt exceed the HUD published NHTF rents, n an annual basis. Incme frm all family members must be included when determining incme eligibility. DOH will utilize the definitin f annual incme in 24 CFR (Sectin 8 definitins). If the NHTF- assisted unit receives Federal r State prject-based rental subsidy, the maximum rent is the rent allwable under the Federal r State prject-based subsidy prgram. Utility Allwances DOH will allw the use f any f the fllwing relative t utility allwance schedules: a. Published utility allwance schedules fr the Sectin 8 Husing Chice Vucher Prgram, as calculated and published by administering entity; b. Published utility allwance schedules fr the state Rental Assistance Payments Prgram, as calculated and published by DOH; r c. Results f a dcumented utility study cnsistent with industry standards n the same r similar units. DOH shall annually review and apprve rents fr NHTF units. In a prject cntaining NHTF-assisted and ther units, the grantee may designate fixed r flating NHTF units. This designatin must be made at the time f prject cmmitment in the written agreement between the DOH and the recipient, and the NHTF units must be identified nt later than the time f prject cmpletin. Fixed units must remain the same thrughut the affrdability perid. Flating units must be changed t maintain cnfrmity with NHTF requirements during the affrdability perid s that the ttal number f husing units meeting the requirements remains the same.

23 V. ATTACHMENTS There are n attachments at this time.