Maryland Department of Housing and Community Development
Community Development Administration
Multifamily Housing Programs
7800 Harkins Road
Lanham, Maryland 20706
(301) 429-7854
(800) 543-4505
(800) 735-2258 TTY
(410) 987-4097 Fax
www.mdhousing.org
Larry Hogan
Governor
Boyd K. Rutherford
Lt. Governor
Kenneth C. Holt
Secretary
APPLICATION
SUBMISSION
PACKAGE
Multifamily Rental Financing
Revised June 1, 2015
The Maryland Department of Housing and Community Development pledges to foster the letter and spirit of the law for achieving equal housing opportunity in Maryland.
DHCD Application Submission Package June 1, 2015 Page 44
TABLE OF CONTENTS AND
APPLICATION SUBMISSION CHECKLIST
Instructions
Quick Reference Table
¨ Application Form - cda Form 202
¨ Certifications
¨ Exhibit A: Priority Project Category
Includes: 1) Family Housing in Communities of Opportunity; 2) Community Revitalization and Investment Areas; 3) Integrated Permanent Supportive Housing Opportunities 3) Preservation of Existing Affordable Housing
¨ Exhibit B: Project Information
Includes: 1) Market Analysis; 2) Other Project Financing; and 3) Public and Assisted Housing Waiting Lists
¨ Exhibit C: Site Information
Includes: 1) Site Map and Photographs; 2) Priority Funding Area Designation; 3) Environmental Checklist; 4) Zoning; and 5) Site Control
¨ Exhibit D: Development Team Information
Includes: Exhibit D 1: Development Team Experience – Developer and Sponsor/Owner
Exhibit D.2: Development Team Experience – General Contractor
Exhibit D 3: Development Team Experience – Architect
Exhibit D.4: Development Team Experience – Management Agent
Exhibit D.5: Multifamily Funding Affidavits
¨ Exhibit E: Financial Statements of Developers, Owners and Guarantors
¨ Exhibit F: Construction Information
Includes: 1) Development Quality Threshold Mandatory Standards; 2) Cost Estimates; 3) Building Evaluation Report; 4) Schematic Documents 5) Base Level Energy Standards Certification; and 6) Base Level Green Standards Certification; 7) Energy Audit (rehabilitation projects only); 8) Development Quality Narrative; 9) Certification of use of a RESNET/BPI Multifamily Rater
3
5
6
6
7
10
14
18
27
28
¨ Exhibit G: Certifications and Waivers
Includes: 1) Threshold Owner/Sponsor Certifications; and 2) Waiver Requests
Certifications: Utility Availability; Relocation Plans; Preference for Persons with Physical Disabilities; Tenant Services; Affirmative Fair Housing Marketing; Non-Elderly Developments – Units Reserved for Persons with Disabilities.
The following Exhibits are required only for applications seeking points as outlined in the Multifamily Rental Financing Program Guide. Applications for Multifamily Bond Program (MBP) financing must score at least 92 points, so some documentation may need to be submitted. See Section 5 of the Guide for more information on scoring.
¨ Exhibit H: Nonprofits (NPs), Public Housing Authorities (PHAs) and Minority/Disadvantaged Business Enterprises (MDE/DBEs)
¨ Exhibit I: Tenant Service Plan
¨ Exhibit J: Targeted Populations: Persons with Disabilities (PWD) or Special
Need (SN)
o Exhibit K: Long-term subsidies
34
37
39
41
44
DHCD Application Submission Package June 1, 2015 Page 44
INSTRUCTIONS
INTRODUCTION
The Maryland Department of Housing and Community Development (the “Department”) administers financing programs for the construction, acquisition and rehabilitation of multifamily rental housing. The multifamily rental housing financing programs available through the Department include the following:
· Multifamily Bond Program (MBP)
· Rental Housing Program (RHP)*
· Federal Low Income Housing Tax Credit Program (Tax Credits)
· The federal HOME Investment Partnership Program (HOME)*
· Partnership Rental Housing Program (PRHP)
· Office and Commercial Space Conversion Program (OCSC)
· Rental Housing Works (RHW)
*RHP and HOME together constitute the Rental Housing Fund (RHF). DHCD regulations establish that RHF may be awarded competitively or non-competitively. All requests for RHF must be submitted using this Application Submission Package.
The Multifamily Bond Program (MBP) provides financing through the issuance of tax-exempt and taxable bonds by the Community Development Administration (CDA).
Federal Low Income Housing Tax Credits (Tax Credits) include those allocated from the State’s tax credit ceiling based on population (9% Credits) and credits that are not allocated from the State’s tax credit ceiling and available automatically upon the issuance of tax-exempt bonds (4% Credits).
RHW provides subordinate gap financing in conjunction with MBP financing and 4% Credits. There is an additional RHW application, which must be submitted in conjunction with this Application Submission Package, if the applicant wishes to request RHW funding in addition to MBP and 4% Credits.
The Partnership Rental Housing Program (PRHP) provides financing to projects which involve local governments in an ownership role. In some situations, PRHP financing is available to projects which are owned solely by non-governmental entities and which will provide units restricted for occupancy to individuals with disabilities.
Staff will review each application to determine the appropriate funding program(s) for the project.
SUBMISSION REQUIREMENTS
NOTE REGARDING COMPETITIVE FUNDING ROUNDS: Applications through Competitive Funding Rounds must be received no later than the prescribed date and time. No project information will be accepted after the application deadline date. The State will provide receipts to applicants as applications are submitted. In case of a dispute, the receipt will serve as evidence of proper submission. Applicants may use standard or express mail services. However, the State is not responsible for mail delivery and will consequently not accept applications received after the due date.
Form of Submission: Two copies of the complete application, including attachments and exhibits, and an application fee (if applicable) must be submitted. Each copy of the complete application should be prepared using separate three-ring notebook binders. Each section, attachment and exhibit must be clearly tabbed so that a reviewer may easily find the necessary materials. Application forms should not be retyped, changed or modified in any manner. All information on the application form must be completed or indicated that it is not applicable and all required exhibits must be included. A CD including the market study, CDA Form 202, Building Evaluation Report and Plans (including the building elevation, floor plans and site map) should be included in one binder.
In addition to submitting hard copies of the application as described above, all applicants must also complete and submit an on-line application using the DHCD Portal at the Department’s website: www.mdhousing.org. To receive an account name and password for accessing the DHCD Portal, e-mail your request to .
Application Fee: All requests for funding must use this application form and are subject to the Department’s underwriting and construction reviews. The application fee is $2,500 except for PHRP only applications. There is no application fee for PHRP only applications. The application fee (if applicable) must be sent directly to: DHCD Central Cashier, Post Office Box 2521, Landover Hills, MD 20784. A copy of the check, payable to the “Community Development Administration,” should be included with the application submission.
Notice: Applicants should carefully review the specific instructions for each individual exhibit in tandem with the current version of the Plan for the Allocation of Low Income Housing Tax Credits in Maryland dated July 8, 2014 (the “Plan”) and, in particular, Appendix A of the Plan, the Multifamily Rental Financing Program Guide (the “Guide”). Copies of the Plan as well as the Guide may be obtained from Multifamily Housing by calling (301) 429-7854 or from the Department’s website at:
http://www.dhcd.state.md.us/Website/programs/rhf/rhf.aspx
QUICK REFERENCE TABLE
5.1 Capacity of Development Team / 74 Total Points
5.1.1 Development Team Experience / 42 points / Exhibit D
5.1.2 Deductions from Team Experience Score / Negative10 points
5.1.3 Developer Financial Capacity / 18 points / Exhibit E
5.1.4 Nonprofits (NPs), Public Housing Authorities (PHAs) and Minority/Disadvantaged Business Enterprises (MBE/DBEs) / 14 points / Exhibit H
5.2 Community Context / 28 Total Points
5.2.1 Community Impact Projects / 16 points* / Exhibit A
5.2.2 Communities of Opportunity / 16 points* / Exhibit A
5.2.3 Transit Oriented Development / 8 points / Exhibit A
5.2.4 BRAC, Rural, Sustainable, Other Specified Communities / 4 points / Exhibit A
5.3 Public Purpose / 46 Total Points
5.3.1 Income Targeting / 14 points / Application Form 202
5.3.2 Targeted Populations: Non-Elderly PWD or Special Needs / 10 points / Exhibit J
5.3.3 Family Housing / 8 points / Application Form 202
5.3.4 Tenant Services / 8 points / Exhibit C
5.3.5 Mixed Income Housing / 4 points / Application Form 202
5.3.6 Preservation of Existing Affordable Housing / 2 points / Application Form 202
5.4 Leveraging and Cost-Effectiveness / 20 Total Points
5.4.1 Direct Leveraging / 10 points / Application Form 202
5.4.2 Operating Subsidies / 10 points / Exhibit K
5.4.3 Construction or Rehabilitation Cost Incentives / Negative 8 points
5.5 Development Quality / 32 Total Points
5.5.1 Green Features / 12 points / Exhibit F
5.5.2 Brownfields Redevelopment / 1 point / Exhibit F
5.5.3 Energy and Water Conservation / 4 points / Exhibit F
5.5.4 Site and Building Design / 15 points / Exhibit F
5.6 State Bonus Points (maximum of10 points)# / See note
Total / 200
*Project cannot receive points under both Community Impact and Communities of Opportunity categories.
#State Bonus Points may be awarded outside of the 200 point scale
APPLICATION FORM
ATTACHMENTS
¨ Application Form - CDA Form 202
A Multifamily Rental Financing Application – CDA Form 202 – must be submitted which reflects all aspects of the project, including estimated development and operating budgets and pro forma.
In addition all applicants must also complete and submit an on-line application using the DHCD Portal at the Department’s website: www.mdhousing.org. To receive an account name and password for accessing the DHCD Portal, e-mail your request to .
NOTE: IT is important that all applicants pay close attention to the CDA FORM 202 Application Form Instructions.
¨ Certifications - A copy of the Certifications may be downloaded from the DHCD website at: http://www.dhcd.state.md.us/Website/Programs/rhf/application.aspx and must be executed and included with the application.
Exhibit A: PRIORITY PROJECT CATEGORY
(Submit under Exhibit A in Application)
Instructions: Please check the box next to the Priority Project Category the proposal fits within.
Project Name: ______
o FAMILY HOUSING IN COMMUNITIES OF OPPORTUNITY
To meet this priority the project must meet at least one of the following criteria:
(1) Be located in a “Community of Opportunity” as shown on the Maryland QAP Comprehensive Opportunity Maps posted to the DHCD Web site at http://www.mdhousing.org/website/DHCDmapper.aspx; or
(2) Be located in a geographic area defined by applicable law as a community of opportunity for affordable family housing or identified as such by an order or consent decree entered by a federal or State court of competent jurisdiction or by a settlement agreement to which DHCD or a local government in Maryland is a party. As of the publication of the Guide, DHCD is aware of one such settlement, in the case of Thompson v. HUD. The following link provides information on census tracts designated as communities of opportunity in the Thompson case: http://www.brhp.org/voucher_holders/search.
Please refer to Section 3.1 of the Guide for more information.
o COMMUNITY REVITALIZATION AND INVESTMENT AREAS
To meet this priority the project must meet at least one of the following criteria:
(1) Be located in a Qualified Census Tract (QCT) or federally designated Difficult to Develop Area (DDA), both as defined by §42(d)(5)(B) of the Code and contribute to a concerted community revitalization plan; or
(2) Be located in a Transit Oriented Development (TOD), which means an area that involves property any part of which is located within one-half mile of the passenger boarding and alighting location of: (a) a planned or existing transit rail stop or station; or (b) a transit node that brings at least two bus lines or other forms of transit (excluding cars) together.
(3) The proposed project involves a public housing authority and the production or preservation of public housing; or housing involving the U.S. Department of Housing and Urban Development’s (HUD) Choice Neighborhoods/HOPE VI programs, mixed-finance programs, or the Rental Assistance Demonstration (RAD) program; or
(4) Be located in a Sustainable Community, which is defined in Maryland Annotated Code, Housing and Community Development Article, Section 6-201 (l), as the part of a Priority Funding Area (PFA) that is; (1) Designated by the Smart Growth Subcabinet as a Sustainable Community (2) A BRAC Revitalization and Incentive Zone designated by Maryland Department of Business and Economic Development (DBED) or (3) a TOD designated by the Maryland Department of Transportation (MDOT)
Please refer to Section 3.2 of the Guide for more information.
o INTEGRATED PERMANENT SUPPORTIVE HOUSING (PSH) OPPORTUNITIES
To meet this priority, the project must provide at least 10% and not more than 25% of its total units to households with incomes at or below 30% of area median income (AMI) and headed by one of the following:
1) For general occupancy projects:
(a) Non-elderly Person with disabilities (PWD), including persons referred by the Maryland Department of Disabilities (MDOD) or Maryland Department of Health and Mental Hygiene (DHMH);
(b) Youth aging out of foster care;
(c) Persons transitioning from correctional facilities; or
(d) Veterans.
2) For Elderly Projects:
(e) Elderly Person with disabilities (PWD);
(f) Elderly Persons with special needs;
(g) Elderly Persons who are homeless;
(h) Elderly Persons transitioning from correctional facilities or other State facilities or institutions; or
(i) Elderly Veterans
Please refer to Section 3.3 of the Guide for more information.
o PRESERVATION OF EXISTING AFFORDABLE HOUSING
To meet this priority, the project must involve the acquisition and rehabilitation of an existing multifamily rental housing development, whether or not it has existing rent or income restrictions, provided that:
(1) The applicant agrees to affordability restrictions for at least thirty (30) years; and
(2) The project is not financially feasible using tax-exempt bond financing, as determined by DHCD.
Please refer to Section 3.4 of the Guide for more information.
ATTACHMENTS
¨ Family Housing in Communities of Opportunity—Attach maps/census information as applicable
¨ Community Revitalization and Investment Areas— (1) Attach QCT determination and a current community revitalization plan for the neighborhood or a current letter from the local planning or zoning board confirming the project is located within and contributes to the current community revitalization plan for the area; (2) TOD- Provide evidence that the project is within ½ mile of the closest intersection (cross streets) with the closest transit stops and submit a map showing the location of the project and the nearest rail station. Also, include a copy of the published transit schedule; (3) PHA, Choice Neighborhoods/HOPE VI, mixed-finance programs, RAD project: Project must involve a PHA and the production or preservation of public housing or provide evidence (letter from HUD) that the project is a Choice Neighborhoods/HOPE VI, mixed-finance or RAD project; (4) Evidence of Sustainable Community, BRAC or TOD designation.