Colorado Division of Housing & Colorado Housing and Finance Authority Updates. October 5, 2016

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1 Colorado Division of Housing & Colorado Housing and Finance Authority Updates October 5, 2016

2 Presenters CHFA Meghen Brown Tax Credit Officer DOH Wayne McClary Housing Development Specialist

3 what is chfa? CHFA s mission is to increase affordable housing and economic development in Colorado. We provide loans and financial assistance to low and moderate income homebuyers, affordable rental housing developers, and businesses.

4 lihtc units 2010 to units percent 4 percent state lihtc and 4 percent *CHFA estimates 1,200 4% LIHTC units will be supported by year end 2015.

5 funding source examples 9% federal credit $10MM deal, 40 units ($250K/ unit) 9% federal credit $13,000,000 available in 2016 $1,000,000 in credit creates $10,000,000 in equity $2,000,000 $1,500,000 $500,000 70% 9% federal credit equity 20% hard debt $7,000,000 15% soft debt/ grants 5% deferred developer fee 4% federal credit (un capped) 4% federal credit $30MM deal, 120 units ($250K/ unit) state tax credit $5,000,000 available in 2016 $1,500,000 $4,000,000 $10,000,000 30% 4% federal credit equity $1,000,000 in credit creates $4,000,000 in equity $6,000,000 30% hard debt 20% soft debt 6% deferred developer fee $9,000,000 14% state tax credit

6 chfa loans 9% tax credit loan: HUD Risk Share 30 year fixed rate, 5.50 percent 24 month rate lock (prior to construction loan closing), 2 percent rate lock fee for up to 24 months collected at issuance of loan commitment 4% tax credit loan: HUD Risk Share Applies to projects that have been financed with tax exempt Private Activity Bonds. fha insured mortgages for non tax credit properties used for acquisition/ rehabilitation, refinance and construction

7 Division of Housing (DOH) DOH was created to improve the access of all Coloradans to decent, affordable housing Funding for operating subsidies Funding to acquire, rehabilitate and new construction Fort Lyon supportive housing program Regulatory role as building department

8 DOH Budget

9 2016 JOINT UNDERWRITING - HOUSING CONSTRUCTION PROJECTS FOR CDBG-DR FUNDING & STATE LIHTC Received 6 applications; 5 applications were awarded funding 1 project each in Weld and Larimer Counties; 3 projects in Boulder County Included senior, family, and permanent supportive housing $2.7 million in 4% LIHTC; $4 million in State LIHTC; $6.87 million in CDBG-DR 350 affordable units

10 2016 RFA for Permanent Supportive Housing Joint effort of the Governor s Office, DOH & CHFA Outcomes DOH has awarded 135 PBVs in joint underwriting led to 282 new PSH units, including 152 DOH PBVs Resources Gap funding from DOH HOME, CDBG, etc. Federal and state tax credit allocations from CHFA Permanent debt financing from CHFA Eligible Local governments must provide matching PBV funding

11 2016 RFA for Section 811 Project Rental Assistance $7.6 million for 5 years Permanent affordable housing with project-based rental assistance For very low income, non-elderly people with significant and long-term disabilities Live independently in the community with services available 30% of Area Median Income and below 30 year Use Restriction Agreement Housing that Works for People with Disabilities (@ 1:30 pm Thursday (10/06)

12 National Housing Trust Fund Projects 30% AMI units Permanent rental housing Eligible Activities Acq, Const/Rehab, Site Work Limited Soft and financing costs Colorado Priorities Supportive Housing Projects 30% AMI projects that need NHTF for feasibility Details pm Wednesday (10/05)

13 CHFA and DOH Underwriting Similarities Financially viable projects for the long term Projects that exhibit developer experience and capacity Projects located near supporting infrastructure and services for residents Priority for developments serving special needs persons Shovel-ready projects Emphasis on energy efficient and green construction and rehabilitation standards

14 CHFA and DOH Underwriting Differences 60% AMI units and below are eligible for tax credits DOH seeks to maximize the number of 30% AMI units when feasible CHFA tax credits are regulated by the IRS DOH funding generally guided by HUD regulations Tax credit compliance period is 15 years with a normally applied year extended tail DOH funded developments will have year Use Covenants attached

15 CHFA and DOH Underwriting Going Forward Due to rising construction costs and the increasing demand for affordable housing statewide, both organizations are placing more emphasis on cost containment CHFA and DOH are prioritizing funding for projects serving homeless persons and special needs individuals

16 Participant Questions and Feedback