New Requirements in Implementing the Link to Permanent Housing Strategy (Link Strategy) Responsibilities of Owners and Property Managers
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1 New Requirements in Implementing the Link to Permanent Housing Strategy (Link Strategy) Responsibilities of Owners and Property Managers Elaine Roberts Florida Housing Finance Corporation
2 Presentation will cover changes to the Link strategy The Transition from a Demonstration to Strategy The Request for Applications Set Aside Requirements The Memorandum of Understanding Unit Availability Compliance Where to find all the information you need Most of you are already doing everything that is covered here; 2
3 New Requirements in Implementing the Link to Permanent Housing Strategy (Link Strategy) Responsibilities of Owners and Property Managers New Requirements in Implementing Link begin with the RFA developed in the fall of st RFA that has the requirements is SAIL; All subsequent RFAs for Housing Credits and/or SAIL will contain the requirements; 3
4 Slides will be on our website a few days after presentation. Here are screen shots of their web location. Go to Home Page > Special Needs Housing 4
5 From Home Page > Special Needs Housing > Education, Training, & Technical Assistance > Corporation Webinars 5
6 Transition from Demonstration to Strategy Previously referred to as Special Needs Housing, but now it is the Link Strategy. (Link to Permanent Housing). Now an instituted strategy to help extremely low income persons with special needs to access Florida Housing financed rental housing; Addressing lessons learned; Executive staff identified instituting and enhancing Link as a critical goal and formed a team of staff from the Compliance Monitoring, Multifamily Rental, and Policy Units; Results of the year long effort; 6
7 Link Request for Applications The body of the RFA will specify the Link Set Aside Commitments. It will state the broad requirement: Percent_( %), which is of the required ELI Set Aside units must be set aside as Link units for Persons with (Special Needs or Disabling Condition as stipulated in the specific RFA) who are referred by a Florida Housing designated Special Needs Household Referral Agency. The purpose of the Link Strategy is to enhance the ability of ELI households of Persons with to access and retain affordable rental housing in their communities. The Applicant must execute a Link Memorandum of Understanding (MOU) with at least one of these Special Needs Household Referral Agencies serving the Development s county. The deadline for the Corporation s approval of the fully executed Link MOU will be stated in the invitation to enter credit underwriting. The specific requirements for the Link Strategy set aside units are described in the Exhibit. 7
8 The Link Exhibit to the RFA Exhibit in the RFA provides Link requirements and procedures for the owners and their property managers to follow. (Exhibit has been sent out prior to the webinar). Exhibit Sections included are: Set Aside Requirements The Memorandum of Understanding Unit Availability Compliance 8
9 The Link Exhibit to the RFA Set Aside Requirements For the affordability period as specified in the regulatory agreement, the Development shall be set aside a percentage of the ELI units as Link units for the intended population (Link Set Aside Requirement) as described in the Request for Applications (RFA). At least one member of each Link household shall be referred by a Special Needs Household Referral Agency (Referral Agency) with which the owner executes a Link Memorandum of Understanding (MOU) approved by Florida Housing. shall be the version most recently provided on the Corporation s website The MOU form executed shall be the version stated in the RFA. ( I will show you where the path is on our website in a few slides) 9
10 The Link Exhibit to the RFA Section II The Memorandum of Understanding (MOU) The owner shall execute an MOU with at least one designated Referral Agency serving the county and intended population where the Development will be located and rent units to households referred by the Referral Agency with which the MOU is executed. Referral Agencies for each county are on the Florida Housing website. 10
11 Here is a screen shot on how to find the Referral Agencies for each county.
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13 13
14 This is a screen shot of the Referral Agency list on the Florida Housing website. 14
15 The Link Exhibit to the RFA Section II The Memorandum of Understanding (MOU) Deadlines for MOU: Shall be within 9 months from Invitation to CU but no later than the 1 st bldg. being placed in service. Applicants will have this date listed in their Invitation to Credit Underwriting. There will be four unique numbered MOU forms on the website. The correct MOU form to be used will be referenced in the RFA. 15
16 16
17 The Link Exhibit to the RFA Section II The Memorandum of Understanding (MOU) There will be four unique numbered MOU forms on the website. The correct MOU form to be used will depend on the MOU form # referenced in the RFA. You will be able to view and download individual MOU templates. Population to be served as listed in RFA Special Needs Special Needs (with HUD contracts) Disabling Condition (with HUD contracts) Disabling Condition MOU Template to be used Link MOU Form 01 SPN Link MOU Form 02 SPN Link MOU Form 03 PDC Link MOU Form 04 PDC 17
18 The Link Exhibit to the RFA Section II The Memorandum of Understanding (MOU) REMINDER This is a change Deadlines for MOU: Shall be within 9 months from Invitation to CU but no later than the 1 st bldg. being placed in service. 18
19 The Link Exhibit to the RFA Section II The Memorandum of Understanding (MOU) MOU must be reviewed by Florida Housing for preliminary approval no later than ten calendar days before the deadline. Preliminary MOU shall have been reviewed and agreed upon by both parties but not signed. After preliminary MOU is approved by Florida Housing, the MOU is signed and returned to Florida Housing. 19
20 The Link Exhibit to the RFA MOU APPROVAL PROCESS Before submission and preliminary review Make contact with Referral Agency Before submission and preliminary review Download proper MOU template and send to Referral Agency for review. No owner signature yet! Before submission and preliminary review Referral Agency reviews and agrees, but does not sign. At least 10 days before deadline Send MOU to Florida Housing for Preliminary Review Upon receipt Florida Housing reviews and, if no changes are necessary, gives go ahead for final execution. By deadline in Invitation Send hard copy, original executed MOU to Florida Housing: Attention Elaine Roberts. 20
21 The Link Exhibit to the RFA MOU APPROVAL PROCESS Upon its approval: Owner receives an electronic copy of the executed MOU stamped Approved. The copy with the Approved stamp must be maintained on file on property site. Compliance Visit: Monitors will ask to see Approved MOU. If owner is unable to meet deadline? Request an extension. Non refundable processing fee of $5,000 shall be charged. No Referral Agency in county? Will be held in noncompliance correction period status until there is a placement of RA for the county on the designated list. (Section 2 #G) Necessary to terminate MOU? See Section 2 #H J of Exhibit for process. 21
22 The Link Exhibit to the RFA MOU APPROVAL PROCESS Necessary to terminate MOU? Section 2 #H J describes the process. Referral Agency intends to terminate: Owner notifies Florida Housing by at Link@floridahousing.org within 5 days; Another Referral Agency is selected; Another MOU executed with new Referral Agency no later than 45 days after notice of intent to terminate; Approval is obtained from Florida Housing for the new MOU before final execution; Owner intends to terminate: Another Referral Agency is selected AND MOU executed before termination of the prior MOU may become effective. Approval process is repeated; Florida Housing requires owner to terminate current MOU if partnership not effective: Owner executes a new MOU with a new Referral Agency before terminating old MOU. Above process is repeated to obtain approval from Florida Housing. 22
23 The Link Exhibit to the RFA Section II The Memorandum of Understanding (MOU) For Properties that have contracts with HUD, such as HAP, PBRA, ACC (PHA involvement), owners must satisfy HUD waiting list requirements AND Florida Housing requirements. The next few slides will discuss how to implement the Link Strategy with preferences as described in the HUD Occupancy Handbook and Guidance documents published by HUD. 23
24 The Link Exhibit to the RFA Section II The Memorandum of Understanding (MOU) The owner of a Development that has a HUD Contract shall establish and obtain approval from HUD for an owner adopted preference specifically for individuals or families who are referred by a partnering service agency. The partnering service agency shall be a designated Referral Agency in the county where the Development is located. HUD approval shall be demonstrated to Florida Housing by the final credit underwriting report. 24
25 The Link Exhibit to the RFA Section II The Memorandum of Understanding (MOU) A request to the HUD Field Office is made to amend the Tenant Selection Plan to establish the owner adopted preference. Approval is given by HUD Field Office. HUD Occupancy Handbook REV.1, Chapter 4 describes the preferences allowed. HUD has also issued guidance on these preferences. 25
26 The Link Exhibit to the RFA Section II The Memorandum of Understanding (MOU) Properties with a HUD contract shall maintain a separate waiting list for referred applicants and prioritize these individuals for any units that may become vacant after the initial lease up period, based upon the minimum number of Link units specified in the application. During and after lease up Referral Agency referrals must be moved in first, regardless of chronological order of the general waiting list, until all Link units are occupied with referrals. 26
27 The Link Exhibit to the RFA Section III Notification of Unit Availability for Link Households The Development owner shall meet with the Referral Agency to review: Link roles and responsibilities of each party; Household income limitation and other eligibility criteria for tenancy; Household move in expenses and on going monthly rental payments. This meeting shall be held no less than 45 days before the anticipated commencement of any activities related to the leasing on any unit in the Development. Owner shall maintain documentation of the meeting with the Referral Agency and shall provide a copy for review by Florida Housing upon its request. 27
28 Leasing Activity The Link Exhibit to the RFA Section III Notification of Unit Availability for Link Households Link unit vacancies must be held open for referrals for a period of at least 30 calendar days starting from the date the unit is suitable for occupancy and ready to lease. Lease up and Pre leasing: Owners shall make all units available for referrals from the Referral Agency until the Link Set Aside Requirement has been met. If the Development has not met its Link Set Aside Requirement by the passing of 30 days after the last unit is actually available for occupancy, then Link units may be leased to any eligible household. 28
29 The Link Exhibit to the RFA Section III Notification of Unit Availability for Link Households Leasing Activity After lease up is completed, a vacated unit shall be held open for intended residents, referred by the Referral Agency, for a period of at least thirty 30 calendar days starting from the date the unit is suitable for occupancy and ready to lease. Referral Agency shall be notified that a unit is available on or before the date that the vacated unit becomes suitable for occupancy and ready to lease, but no more than 30 calendar days before the unit is anticipated to be ready to lease. If the Referral Agency cannot provide a prospective resident which can be approved for residency within the 30 day time frame, then the owner may lease the units to any qualified ELI resident. 29
30 The Link Exhibit to the RFA Section III Notification of Unit Availability for Link Households Leasing Activity If owner notifies a Referral Agency that a unit is available and the Referral Agency does not respond, the Development owner shall contact the Referral Agency at least three times, at intervals of no less than seven calendar days, during the 30 day period after the initial notice of unit availability was sent to the Referral Agency. 30
31 The Link Exhibit to the RFA Section III Notification of Unit Availability for Link Households Leasing Activity Acquisition/Rehabilitation Development occupied at the time of closing or carryover allocation: All units (at any AMI set aside level) that become available and are ready to lease must be made available to the Referral Agency until the Link unit set aside requirement has been met. 31
32 The Link Exhibit to the RFA Section III Notification of Unit Availability for Link Households All communication related to activities in Section III shall be conducted by 1. Requests to develop MOU with Referral Agency; 2. Draft reviews of MOUs between the parties; 3. Final version of executed MOU; 4. Current contact information for designated staff persons; 5. Notifications of unit availability; 6. Number of days unit will be held open for referrals. 7. Information about rental policies and eligibility criteria; 8. Outcome of referrals; 9. Notifications of issues or concerns that may adversely affect the tenancy of the household; 10.Requests for termination of MOU. 32
33 The Link Exhibit to the RFA Section III Notification of Unit Availability for Link Households The owner shall maintain a Link communication tracking log that documents: Unit number of offered unit; Date unit was rent ready; Date of notice to the Referral Agency that the unit was available for rental to a Link household, including dates of required follow up; The response from Referral Agency and the date of the response; Referral Agency response; Outcome of referral; Number of days unit was held. 33
34 The Link Exhibit to the RFA Section III Notification of Unit Availability for Link Households If Referral Agency is notified that a unit is available, and the Referral Agency does not respond: Referral Agency shall be contacted at least 3 times, at intervals of no less than 7 days, during the 30 day period after the initial notice of unit availability was sent to the Referral Agency. The owner shall document all notification activity in the Link communication tracking log. 34
35 The Link Exhibit to the RFA Section III Notification of Unit Availability for Link Households Owner shall notify the Referral Agency by regarding the outcome of each intended referral within one business day after a determination is made regarding the household s ability to occupy the available unit. This to the Referral Agency shall include if the available unit was leased to the referral, and if not leased, the reason for the denial. 35
36 The Link Exhibit to the RFA Section III Notification of Unit Availability for Link Households If a referral does not result in occupancy by the referred household: The owner shall follow up with the Referral Agency at intervals of no less than seven (7) calendar days during the remainder of the 30 day holding period. The owner shall document all notification activity on its Link communication tracking log. 36
37 The Link Exhibit to the RFA Section IV Link Compliance Monitoring Documentation Monitors will ask for following documentation for Link: 1. A copy of all active MOUs approved by Florida Housing; 2. A copy of all terminated MOUs. Terminated MOUs shall be retained for seven (7) years beyond the period of tenancy for any household referred under the particular MOU; 3. A copy of any current correction period extension granted by Florida Housing. 4. communication with the Referral Agency demonstrating timely notification regarding the availability of units for the intended Link household; outcome of each referral, and when an available unit was not rented to a Link household, the number of days the available unit was held open for intended Link household. 5. Link communication tracking log. 37
38 Here is an example of a Referral Tracking Form 38
39 The Link Exhibit to the RFA Section IV Link Compliance Monitoring Documentation The Management Review of Multifamily Housing Questionnaire now includes the following Link related questions: 1. Are the specified number of Link Units occupied by a Link household? 2. Is an executed MOU with a Florida Housing designated Referral Agency included in Development records? 3. Does the MOU agree with the Florida Housing provided document? 4. Is there a record of contact between Development and Referral Agency with the following information? i. Date the unit became available; ii. Date the availability notice was sent to the Referral Agency; iii. Name of Referral Agency; iv. Number of days a unit was held; v. Outcome of referral. 5. Were units held the number of days specified in the MOU? 39
40 The Link Exhibit to the RFA Section IV Link Compliance Monitoring Documentation The monthly Program Report submitted to the Florida Housing by the Development shall reflect the Link households residing in an ELI Set Aside unit. The Program Report will also ask for the correct Referral Agency number with whom the property has an MOU. 40
41 Screen shots of Link-related Program Report Instructions 41
42 Screen shots of Link-related Program Report Instructions 42
43 Screen shots of Link-related Program Report Instructions 43
44 This is a screen shot of the Referral Agency list on the Florida Housing website. 44
45 Link to Permanent Supportive Housing Questions?
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