Up to $2,000,000 in AHTF for affordable housing preservation projects formerly funded by the CDC/HACoLA.
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1 COMMUNITY DEVELOPMENT COMMISSION/HOUSING AUTHORITY OF THE COUNTY OF LOS ANGELES NOFA ROUND 24-A TERM SHEET On September 11, 2018, the Cmmunity Develpment Cmmissin f the Cunty f Ls Angeles (CDC) and the Husing Authrity f the Cunty f Ls Angeles (HACLA) will release Ntice f Funding Availability (NOFA) Rund 24-A, which will prvide capital funding, Sectin 8 Prject- Based Vuchers (PBVs), and Prject-Based Veterans Affairs Supprtive Husing (PBVASH) Vuchers fr the creatin and peratin f permanent multifamily rental husing units. Applicatins will be due n Octber 23, The CDC will issue funding cmmitments t successful applicants in time t meet the Califrnia Tax Credit Allcatin Cmmittee s (CTCAC) 2019 first rund cmpetitive tax credit applicatin deadline, as needed. Available CDC Capital Funds Up t a ttal f $106,700,000, cmprised f the fllwing: Up t $53,200,000 in Affrdable Husing Trust Funds (AHTF). Units must be reserved fr qualifying Special Needs ppulatins, r general lw-incme ppulatins, as allwed. This funding surce includes $13,800,000 in Measure H Funds targeting hmeless ppulatins. The Cmmissin will allcate Measure H funds accrding t unit eligibility. Up t $34,500,000 in Mental Health Husing Prgram Funds (MHHP). Units must be reserved fr clients that are Hmeless r at Risk f Hmelessness and wh have a mental illness in accrdance with Califrnia Welfare & Institutins Cde Sectin (a) and/r Califrnia Welfare & Institutins Cde Sectin (b). Up t $13,800,000 in MHHP Funds Targeting Hmeless Veterans. Units must be reserved fr veterans that are Hmeless r at Risk f Hmelessness and wh have a mental illness in accrdance with Califrnia Welfare & Institutins Cde Sectin (a) and/r Califrnia Welfare & Institutins Cde Sectin (b). Up t $3,200,000 in HOME Funds. Units must be reserved fr qualifying Special Needs ppulatins. Up t $2,000,000 in AHTF fr affrdable husing preservatin prjects frmerly funded by the CDC/HACLA. Available HACLA Rental Assistance Up t a ttal f 600 PBVs and PBVASH Vuchers are available t prjects within HACLA s jurisdictin. Prjects must apply fr and be awarded CDC capital funds t qualify fr rental assistance, with ne exceptin, nted belw. The fllwing types f rental assistance are nly available t prjects that als receive a capital award: A cmbined ttal f up t 300 PBVs and PBVASH Vuchers, allcated t meet demand. These vuchers are nly available fr Special Needs units funded by the
2 NOFA Rund 24-A Term Sheet Page 2 f 8 CDC. Up t 100 PBVs may be requested fr nn-special Needs units funded by the CDC. These units must be reserved fr husehlds earning n mre than 30% f the Area Median Incme (AMI) and must be filled by referrals thrugh HACLA. Up t 75 PBVs available fr eligible affrdable husing preservatin prjects. Up t 50 PBVs available fr affrdable units in eligible market-rate prjects. The fllwing rental assistance is available fr prjects withut a capital award: Up t 75 PBVASH Vuchers. Eligible Prjects Special Needs and Mixed-Ppulatin prjects using tax credit financing must prvide at least 25 units f permanent multifamily husing and set aside at least 20% f the ttal units, but n fewer than 15 units, fr qualifying Special Needs ppulatins. Prjects that d nt prpse the use f tax credit financing and Special Needs units set aside in a qualifying Market-Rate prject must include at least 15 units. Prject definitins include the fllwing: Special Needs Prject: at least 49% f the ttal units set aside fr Special Needs husehlds. Special Needs prjects will receive bnus pints in scring. Mixed-Ppulatin Prject: at least 20% f the ttal units set aside fr Special Needs husehlds, but n fewer than 15 Special Needs units. Market-Rate Prject: at least 15 units set aside fr a Special Needs ppulatin in an therwise market-rate prject, if the prject is lcated in High and Highest Resurce Areas, as defined by the TCAC/HCD Opprtunity Area Map fr the City and Cunty f Ls Angeles. Fr prjects in HACLA s jurisdictin, the units must be filled with referrals frm HACLA. Target Ppulatins and Affrdability Special Needs husehlds: Mentally Ill HIV / AIDS Develpmentally Disabled Transitin Age Yuth Frequent Users f Cunty f Ls Angeles Health and/r Mental Health Services Hmeless Husehlds Hmeless Senirs Chrnically Hmeless Hmeless Veterans Special Needs units must be restricted t husehlds earning at r belw 30% AMI. Incme targeting may be as high as 35% AMI with reasnable justificatin prvided by the applicant and apprved by the CDC.
3 NOFA Rund 24-A Term Sheet Page 3 f 8 Lw-Incme husehlds: Husehlds earning up t 50% AMI. General lw-incme units reserved fr husehlds earning at r belw 30% AMI are eligible fr PBVs in HACLA s jurisdictin. Prject Requirements Prjects that prpse t use AHTF fr lw-incme husehlds must prvide three (3) Special Needs units fr every ne (1) nn-special needs unit funded. Prjects must be new cnstructin, acquisitin and peratin, r acquisitin with rehabilitatin. A rehabilitatin prject must: Submit at the time f NOFA applicatin a Capital Needs Assessment that meets the requirements f current TCAC regulatins. Cmplete, at a minimum, $40,000 in hard cnstructin csts per unit. Prvide new affrdable units t husing stck. Prjects with existing affrdability cvenants are nt eligible, unless the cvenants are expiring within five (5) years f the NOFA applicatin due date. Nt displace lw-incme husehlds, unless the prject prvides fr a tw- (2) frne (1) unit replacement. Fr prjects develped n land wned by r frmerly-wned by the CDC r Cunty f Ls Angeles, at least 49% f the ttal units must be reserved fr an eligible Special Needs ppulatin. Prjects must be lcated in their entirety within Ls Angeles Cunty. Prjects seeking capital funds must nt have cmmenced cnstructin. Prjects seeking PBVASH Vuchers nly may be in predevelpment, r be cmpleted (but nt in cnstructin). Prjects must adhere t the Cunty s lcal hire prvisins. If any prtin f a prpsed develpment site is within 500 feet f a freeway, the prject must be designed in such a way as t exclude frm this 500-ft freeway buffer area any prtin f the residential building, as well as play areas, cmmunity rms, gardens, patis, and ther areas where residents may reasnably be expected t cngregate. An example f a suitable use within the 500-ft freeway buffer is a parking lt. The CDC shall review and apprve, at its sle discretin, any site plans fr develpments f this type. Funding and Gegraphic Restrictins The CDC may prvide separate funds fr eligible prjects based n the target ppulatins and/r gegraphic area. The CDC reserves the right t shift funding at its discretin, including incrprating federal HOME funds int eligible prjects. Prjects may apply fr AHTF and MHHP funds thrugh the NOFA, hwever, bth funding surces cannt be used t subsidize the same unit. MHHP funds may nt subsidize prjects that have a cmmitment f funds thrugh the Ls Angeles Cunty Department f Mental Health (DMH). Applicants with a DMH funding allcatin
4 NOFA Rund 24-A Term Sheet Page 4 f 8 must relinquish thse funds upn ntificatin f an award f MHHP funds. Prjects that apply fr MHHP funds cannt shw DMH funds in the prfrma. Any prject seeking MHHP funds that als reflects a prir cmmitment f DMH funds in its prfrma will be determined t be financially infeasible and will fail threshld review. Prjects that received a prir NOFA award (capital funds, PBVs, and PBVASH Vuchers) may reapply under the current NOFA withut relinquishing r endangering the prir award. Maximum Funding Per Prject: Prjects utside f the City f Ls Angeles: $7 millin, unless cmbining AHTF, and/r HOME funds (where eligible), with MHHP funds, then $14 millin. Prjects in the City f Ls Angeles: $2 millin, unless cmbining AHTF funds with MHHP funds, then $5 millin. CDC CAPITAL FUNDS Fund Type Target Ppulatin Eligible Gegraphy Maximum Subsidy Per Unit Maximum Subsidy Per Prject* Affrdable Husing Trust Funds Affrdable Husing Trust Funds MHHP Funds HOME Funds Special Needs Lw-Incme LA Cunty $140,000 per unit $100,000 per unit (nte 3:1 rati Special Needs: Nn- Special Needs) Preservatin LA Cunty $75,000/unit $1,000,000 Hmeless Mentally Ill, Hmeless Mentally Ill Veterans Special Needs LA Cunty Unincrprated Ls Angeles Cunty r HOME Participating City $250,000 per unit fr 4% $160,000 per unit fr 9% As specified under the HOME Prgram $7,000,000 in areas utside f the City f Ls Angeles r n Cunty-wned land. $2,000,000 in the City f Ls Angeles. $7,000,000 in areas utside f the City f Ls Angeles r n Cunty-wned land. $3,000,000 in the City f Ls Angeles. $3,200,000 (all funds may be awarded t the highest scring eligible prject). *Prject cap may be higher if a prject cmbines multiple surces, but cannt exceed $5M in the City f Ls Angeles (with inclusin f MHHP funds) r $14M in the balance f Ls Angeles Cunty (with inclusin f MHHP funds).
5 NOFA Rund 24-A Term Sheet Page 5 f 8 HACLA RENTAL ASSISTANCE Target Type f Funds Ppulatin PBVs PBVASH Vuchers Preservatin PBVs Eligible Applicants Special Needs Hmeless veterans & their families Special Needs & Senirs Eligible Gegraphy Unincrprated LA Cunty r Participating Jurisdictin Maximum Subsidy Per Unit As specified by HACLA Sectin 8 payment standards Minimum Subsidy Per Prject Minimum 15 vuchers per prject N minimum Eligible applicants include nnprfit and fr-prfit rganizatins, limited liability cmpanies, limited partnerships, public agencies, lcal jurisdictins, and jint ventures amng any f these entities. Applicatin Prcess Applicants may submit a maximum f ne applicatin fr a prject in the City f Ls Angeles in which they are the Lead Develper. Prjects that are lcated in High and Highest Resurce Areas, as defined by TCAC, are exempt frm the ne City f Ls Angeles prject per applicant restrictin. There is n restrictin n the number f prjects per Develper utside f the City f Ls Angeles. Applicants with prjects in the City f Ls Angeles may chse t submit additinal applicatins, but these will nly be cnsidered if all ther eligible prjects have been funded and NOFA funds remain. Key Threshld Requirements Applicatins will be reviewed in tw stages: 1) threshld review and 2) technical review. The fllwing are key minimum threshld requirements that applicants and prjects must meet t be cnsidered fr technical scring: Lead Develper: Must have cmpleted a minimum f three (3) affrdable rental husing prjects. Lead Services Prvider: Must have a minimum f 12 mnths f experience in prviding services t the prject s Special Needs ppulatin in at least ne (1) husing-setting prject. If the Lead Services Prvider des nt have experience serving the prpsed Special Needs ppulatin, the Lead Services Prvider must justify hw its prir experience serving ther Special Needs ppulatins in a husing setting is transferrable t the prpsed ppulatin. Prperty Manager: Must have experience in managing at least tw (2) prjects with similar tenant ppulatins and f similar scale as the prpsed prject. The Prperty Manager may be the applicant s wn persnnel, r a third-party cntractr. Supprtive Services: The Supprtive Services Plan must address adequate service prvisin t all prject ppulatins. Design: The architect must have cmpleted at least tw (2) affrdable multifamily rental
6 NOFA Rund 24-A Term Sheet Page 6 f 8 husing prjects, r have cmpleted ne (1) CDC-funded affrdable multifamily rental husing prject f the type currently being prpsed (new cnstructin r rehabilitatin). All prjects must meet the CDC s Design Requirements. Cmpliance: Applicants must be in cmpliance with all regulatry agreements with the CDC and requirements f ther gvernmental entities r permitting agencies. The CDC retains sle discretin t apprve r reject applicants based n past perfrmance. All applicable checklist items must be submitted in the NOFA applicatin in rder fr a prject t be cnsidered fr award f funds by the CDC. Key Technical Scring Categries The fllwing are the general categries that will be used t scre applicatins. Cmmitted Public Financing: Rati f cmmitted capital funds frm public agencies t ttal develpment csts. Cmmitted Operating Subsidy: Rati f Special Needs units with cmmitted perating subsidy t ttal Special Needs units. Applicant Team Experience: In additin t meeting the minimum threshld experience, the Lead Develper will be scred based n additinal number f Special Needs and affrdable rental husing prjects cmpleted. In additin t meeting the minimum threshld experience, the Lead Services prvider will be scred based n additinal years f experience serving the prpsed Special Needs ppulatin in a husing setting. In additin t meeting the minimum threshld experience, the prperty management cmpany will be scred based n experience managing Special Needs and affrdable rental husing prjects. In additin t meeting the minimum threshld experience, the Architect f Recrd will be scred based n experience with affrdable rental husing prjects f the type prpsed (new cnstructin r rehabilitatin). Supprtive Services: Supprtive services will be evaluated n a Pass/Fail basis. A Pass rating will be awarded t Supprtive Services Plans that apprpriately cmplete address the service criteria fr the ppulatin(s) the prject will serve, which will be defined in the NOFA. The Plan must include a detailed descriptin f each service and identify the prvider. Fr Mixed Ppulatin prjects, there must be clear distinctin between the staffing resurces and services allcated t each ppulatin. Thse prjects that receive a Pass rating may als be issued a Final Cnditins List detailing sectins f the Supprtive Services Plan that must be revised prir t release f any lan funds. It is anticipated that mst prjects receiving a Pass rating will als be issued a Final Cnditins List. Design: Prjects will be evaluated n a Pass/Fail basis. Prjects will be assigned a rating f Pass if they generally adhere t the CDC s Design Requirements.
7 NOFA Rund 24-A Term Sheet Page 7 f 8 Gegraphy: Pints will be awarded, in descending amunts, fr prjects lcated in: 1) Unincrprated Areas f Ls Angeles Cunty and then 2) Areas utside f the City f Ls Angeles. Affrdable Husing and Sustainable Cmmunities (AHSC) Prjects: Prjects that have been apprved fr participatin in the Cunty f Ls Angeles AHSC readiness prgram and are receiving technical assistance thrugh this prgram will be priritized. Special Needs Prject: Extra pints will be awarded t prjects in which at least 49% f ttal units are set aside fr Special Needs Husehlds. In additin t the NOFA applicatin scre, the Cmmissin will determine prject funding by taking int accunt, in descending rder, the fllwing factrs: whether a prject is supprted by the Cunty s Affrdable Husing and Sustainable Cmmunities wrkgrup, using Cunty-wned land, r is part f a Cunty supprted effrt; the gegraphic distributin f applicatins (by Service Planning Area r Supervisrial District); the ttal number f units being prduced; the ppulatin served and percentage f units fr each ppulatin type; the TCAC tiebreaker scre (9% prjects nly), and the number f Cmmissin prjects in applicatin, predevelpment, r cnstructin by the applicant. Key Underwriting Requirements Cash Flw: Must demnstrate psitive cash flw fr 15 years. Affrdability: All units funded by the CDC must target husehlds earning at r belw 30% AMI fr Special Needs units r 50% AMI fr lw-incme units, except as nted abve in Target Ppulatin and Affrdability. Supprtive Services: Prject case managers and supprtive service crdinatrs may be paid thrugh cash flw, hwever, the CDC anticipates that prject supprtive services fr Special Needs units will be funded thrugh Measure H. Furnishings fr Hmeless Units: Applicants must include csts t furnish all Hmeless units in the prpsed develpment budget. Significant Changes Remved the requirement that prjects must be eligible fr and include 4% r 9% Lw-Incme Husing Tax Credit financing. PBVs allcated t any general lw-incme unit, r units in qualified market rate prjects must be filled with referrals frm HACLA. Funding and PBVs fr preservatin prjects have been set aside as a separate funding categry. Instituted additinal cnsideratins fr prject evaluatin and award, in additin t verall NOFA scre. Qualified prjects may request PBVASH Vuchers frm HACLA withut seeking an allcatin f capital funds frm the CDC.
8 NOFA Rund 24-A Term Sheet Page 8 f 8 Develpers with City f Ls Angeles prjects that are lcated in High and Highest Resurce Areas, as defined by the TCAC/HCD Opprtunity Area Map fr the City and Cunty f Ls Angeles, may submit an additinal applicatin fr a prject in the City f Ls Angeles. Develpers with prjects in the City f Ls Angeles may submit additinal applicatins, hwever, these additinal applicatins will nly be cnsidered if all ther eligible prjects have been funded and NOFA funds remain. Added the ability t fund at least 15 Special Needs units in an therwise market-rate prject, if the prject is lcated in High and Highest Resurce Areas, as defined by the TCAC/HCD Opprtunity Area Map fr the City and Cunty f Ls Angeles. A prject using CDC r Cunty-wned land, regardless f jurisdictin, will be treated as an unincrprated Cunty prject fr scring and funding cap purpses. Prjects that cannt be fully funded will be skipped fr the next prject that can be fully funded. Bnus pints have been remved. Funding under this NOFA will be awarded n a cmpetitive basis. The CDC reserves the right in its sle discretin t mdify any terms in this Term Sheet. This Term Sheet is issued t highlight general prgram gals and requirements. Full requirements and regulatins will be included in the published NOFA.
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COMMUNITY DEVELOPMENT COMMISSION/HOUSING AUTHORITY OF THE COUNTY OF LOS ANGELES NOFA ROUND 24-A TERM SHEET On September 11, 2018, the Cmmunity Develpment Cmmissin f the Cunty f Ls Angeles (CDC) and the
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