Nebraska Affordable Housing Program

Northeast Investment Zone

Chapter 3B: Rental Rehabilitation Program for Targeted Communities Application Instructions and Forms

This section contains all forms and exhibits to be submitted so that your application can be scored and ranked effectively. Application narratives should be thorough and concise. The Department reserves the right to verify all information and to consult with other agencies on the proposed project.

Generally, there are more applicants requesting funds than there are funds available. Applicants must carefully read and review the (1) 2005 Housing and Community Development Annual Action Plan Housing Development Priority Section and (2) Application Guidelines Chapters 1, 3A and 3B for the appropriate Investment Zone or Program Set-aside to develop a competitive application.

In submitting your application, these instructions must be followed:

Submit original and two complete copies of the application.

.

Do not staple.

Table of Contents must be included.

All pages must be numbered in sequence at the bottom of the page, right-hand corner.

All Exhibits must be labeled at the bottom of the page, right-hand corner.

All Attachments must be labeled at the bottom of the page, right-hand corner.

See next page for an outline of what your application should look like.

For Application Assistance Please Contact Your Investment Zone Manager
Jennifer Buxton
Email:
Telephone: (402) 727-2908

This is an outline of what your Rental Project Application should look like.

  1. Part I General Information (use required form)
  2. Part II Funding Summary (use required form)
  3. One Page Project Summary
  4. Table of Contents (include page numbers)
  5. Part III Project Budget and Financing (follow instructions)
  6. Part IV Threshold Requirements (follow instructions)
  7. Part V Target Plan (follow instructions)
  8. Part VI Project Design and Impact (follow instructions)
  9. Part VII Proposed Rental Program Guidelines (follow instructions)
  10. Part VIII Required Exhibits

Local Government applicants:

EXHIBIT A - Notice of Required Public Hearing or Public Meeting Notice (sample format provided) - Exhibit A form language must be used for the official public hearings and must be submitted with either Proof of Publication or Certificate of Posting, and a summary of citizens’ comments.

EXHIBIT B - Authorizing Resolution (sample format provided) – must be completed after the citizens’ comment period regarding Exhibit A Notice of Required Public Hearing or Public Meeting Notice.

EXHIBIT C – Statement of Assurance and Certifications (required form)

EXHIBIT G - Applicant Certification of Rental Project Federal Assistance Form

APPLICATION FOR NEBRASKA AFFORDABLE HOUSING PROGRAM RENTAL REHABILITATION PROGRAM FOR TARGETED COMMUNITIES

Nebraska Department of Economic Development (NDED) / DED USE ONLY
Application Number
2005-RH-5

Date Received

PART I. GENERAL INFORMATION

TYPE OR PRINT ALL INFORMATION

1.APPLICANT IDENTIFICATION / 2.PERSON PREPARING APPLICATION
Applicant / Name
Contact / Address
Address / City/State/Zip
City/State/Zip / Telephone / ( / )
Telephone / ( / ) / Preparer’s Tax ID# / S.S. #
Fax / ( / ) / Email Address
Federal Tax I.D. Number / Application Preparer (Check one)
Email Address / Local Staff / Consultant / Other, Specify
CHDO / Housing Authority
Developer / Economic Development District Organization
3. TARGETED COMMUNITY INDICATOR / 4. SERVICE AREA
Columbus / Area to be served (city, county, region, etc.)
Legislative District (s)
Fremont / Congressional District (s)
Norfolk

SUBMIT THE ORIGINAL AND TWO COPIES (UNBOUND) OF THE ENTIRE APPLICATION TO:

Nebraska Department of Economic Development, Division of Community and Rural Development

PO Box 94666 - 301 Centennial Mall South

Lincoln, NE 68509-4666

(402) 471-7999 (800) 426-6505 Fax (402) 471-8405

RENTAL HOUSING CATEGORY

PART II. FUNDING SUMMARY

(Roundamounts to the nearesthundreddollars.)

Activity
CodeActivity /

NAHP Funds

/ Bank Loan / Other / Total
181 / General Administration([1])
541 / Rehabilitation
SF 1-4 Unit bldgs
561 / Rehabilitation
Multi-family
523 / Relocation
580 / Housing mgt.
(soft costs) (3)
580a / Paint Testing/Risk Assessment/Clearance Testing ([2])
TOTAL

9.CERTIFYING OFFICIAL:

To the best of my knowledge and belief, data, information, and documentation in this application is true and correct, including any commitment of local or other resources. The governing body, local or regional housing authority, or non-profit organization has duly authorized this application. This applicant will comply with all Federal and State requirements governing the use of NAHP funds.

The applicant certifies that all activities will not occur prior to receipt of a written Notice of Release of Funds from the Nebraska Department of Economic Development. If any of these activities occur in violation of this requirement the project is immediately ineligible for NAHP-assistance.

Signing the application form commits the applicant to notifying the Department of Economic Development of any changes to the original application after the application is submitted within 30 days of the change. This includes Sources statement, Uses statement (including but not limited to other federal assistance to the project) and rental operating pro forma.

Signature in inkTyped Name and TitleDate Signed

Nebraska Affordable Housing Program 2005 Application Guidelines Page 3B-1 of 18

Chapter 3B Rental Rehab Program Application Forms and Instructions November 2004

Nebraska Affordable Housing Program

Northeast Investment Zone

Part I: General Information Instructions

Type or print all information except where signatures are required.

Box 1: Provide the requested information.

Box 2: Enter the name, mailing address and telephone number of the person who prepared the application. If prepared by a firm, identify the staff contact person. Check the appropriate application preparer status box.

Box 3: Indicate in which targeted community your project will be located. The application activities must be confined to one Investment Zone. Refer to the 2004 Annual Action Plan for identification of NAHTF region and NAHP Investment Zone boundaries.

Box 4: Indicate the area where the program will take place. Enter the appropriate Congressional and Legislative District(s) information.

Part II. Funding Summary Instructions

  • Round all numbers to the nearest one hundred dollars
  • Enter the dollar amounts into the appropriate boxes in the funding summary table.
  • Describe ALL other funds, including funds provided by the lenders, property owners, etc. during the rehabilitation phase.
  • If you have any questions about Activity Codes direct them to NDED.
  • Support activities are activities that are only allowed to be funded with NAHP in conjunction with primary activities. Support activities include, but are not limited to: relocation, etc.
  • The Part II Funding Summary should correlate with the Part III Application Threshold Requirements Sources and Uses development budget. Specifically, the Part II Funding Summary should indicate the original use of NAHP funds (such as construction). The permanent use of NAHP funds (such as a second mortgage) must be indicated in the Part III Application Threshold Requirements Sources and Uses.
  • Type the name and title of the Certifying Official and date. The certifying official for a local government applicant is the chief elected official.
  • There is a cap applied to the amount of NAHP funds that can be used for General Administration.

Housing Management (activity number 0580)

The project related soft costs, or housing management, budget should include all costs of administrative and support activities for the housing proposal except rehabilitation costs and the actual costs of demolition, clearance, etc. Major line item costs under the housing administration activity may include (but are not limited to) project promotion, HOME activity set-ups, etc. Paint testing, risk assessments and clearance testing are project-related soft costs but are subject to the $1,000 NAHP funds per unit maximum.

One Page Project Summary Instructions

Include a one-page summary of the proposed project.

Part III. Project Budget and Financing

Provide a detailed budget for the proposed program, including program costs, housing management (also referred to as housing administration or project soft costs) and general administration. The budget should include (1) costs for each item and (2) the proposed or likely funding source for each item.

Program Costs

List for each activity the major costs by line item. Major line item costs for Housing Management include “soft” costs such as providing homebuyer education, architectural, engineering, legal fees, appraisal costs, housing inspection fees and other expenses to carry out the housing program. Program costs are the “hard” costs of acquisition, rehabilitation or construction costs. The total line item costs for each activity must equal the totals by activity shown on Part II.

Administration Costs

Housing Management (activity number 0580)

The project related soft costs, or housing management, budget should include all costs of administrative and support activities for the housing proposal except rehabilitation costs. Major line item costs under the housing administration activity may include (but are not limited to) program design (i.e. finalizing housing program guideline), program promotion, application review, work write-ups, inspections, HOME activity set-ups, office rent, supplies, counseling, etc. Housing administration costs should include any developer’s fees. Paint testing, risk assessments and clearance testing are project-related soft costs but are subject to a $10,000 NAHP funds per unit maximum.

General Administration (activity number 0181)

The general administration budget includes those costs that are administrative in nature and are attributable to the receipt of the award. Common line item costs in this activity are environmental review, audits, labor standards enforcement, preparation of required grant progress reports and draws, etc. If many of the general administration duties are to be performed by local government personnel, it is acceptable to use salaries and benefits as line item costs. However, it should be noted that specific duties are to be performed under the salaries and benefits line item.

Proposed Funding Source

All budget items should also indicate the proposed source of funds for that item. NDED understands that the application budget and financing is a proposal only and may vary somewhat during project implementation. Nonetheless, a budget indicating both sources and uses must be submitted. For projects with phases of activity such as purchase of an existing home by a developer, rehabilitation of the home and resale of the home you must indicate the use and source of funds for costs in each phase. It is recommended that a single-family housing development pro forma us used in conjunction with the project budget and financing as a template to demonstrate the sources and uses in a multi-phase project.

Indicate funds reflected in the project and the category of the funds using the following definitions.

Awarded NAHP funds

These are NAHP funds provided through the project award and drawn down from NDED.

Program Income from Awarded NAHP

These are funds provided form program income generated from the proposed project awarded NAHP funds.

Targeted Program income/CHDO Proceeds from Previously Awarded NAHP Funds

These are funds provided from program income/CHDO proceeds generated from other NAHP projects that are available in the area for the program, but are not targeted to the proposed projects. Eligible as 10% match.

Available Program Income/CHDO Proceeds for Previously Awarded NAHP Funds

These are funds provided from program income/CHDO proceeds generated from other NAHP projects that are available in the area for the program, but are not targeted to the proposed projects. Eligible as 10% match.

Targeted and Subsidy Other Funds

These are non-NAHP funds targeted and committed to this specific project that contribute to the overall project costs. In addition, these funds are a subsidy that decreases the costs to the homebuyer. Examples: cash; yield foregone for below market interest rate products and sweat equity or donated labor (including required homebuyer sweat equity). Eligible as 10% match.

Targeted and Leverage Other Funds

These are non-NAHP funds targeted and committed to this specific project that contribute to the overall project costs. The funds, however, do not decrease the cost of purchasing the home to the homebuyer. Examples: cash, loans, required homebuyer cash contribution, development subsidy generated from Targeted Other Funds used to construct or purchase/rehabilitate a home which values at less than the development cost. Eligible as 10% match.

Part IV: Application Threshold Requirements

The department may non-select an application if any or all of the following thresholds are not clearly demonstrated as being met in the application.

Application Threshold Requirements Enforcement

The method of threshold enforcement will be determined after receipt of all applications in the Investment Zone. At that time, one of the following threshold enforcement methods will be applied to all applications in the respective Investment Zone. The NDED Housing Manager will take into account two factors (1) the ratio of available funds in the zone to the total amount of funds requested in applications in the zone and (2) the total number of applications received.

The NDED Housing Manager may choose to either

(1)Enforce Application Threshold Requirements at the time the application is submitted. If NDED cannot determine from the written application that each threshold that applies is clearly met, the application will be returned with no further review.

(2)Allow correction to Application Threshold Requirements deficiencies prior to the Preliminary Assessment stage in the NDED application review process.

Whenever possible, Applicants and Application Preparers are strongly encouraged to submit all available information by February 28, 2005 to the Investment Zone Manager for review of compliance with Application Threshold Requirements.

NDED reserves the right to negotiate at contract negotiations to further reduce the risk of NAHP funding, reduce the amount of NAHP funding needed for the project, and/or address other priorities such as supporting Economic Development activities in the community. This flexibility to address special project considerations in the contract does not supercede the requirement that the General Project Requirements, Project Design Requirements and the Project Sources must be in conformance with all of the Application Threshold Requirements before an NDED award can be made. If significant items such as (1) maximum allowable incomes, and/or (2) required affordability period are adjusted at time of contract negotiations, NDED may request additional information reflecting these adjustments.

NARRATIVE INFORMATION

  • On separate sheets of paper address any of the following threshold items that otherwise cannot be verified in the other application sections.
  • Number each page and section.
  • Not all threshold requirements listed in this section must be addressed in this narrative, however it is recommended that they are listed and either addressed in this narrative or the page number where the threshold can be verified in the application. The recommended method for demonstrating meeting the specific threshold is provided in brackets following criteria.

The items on the following list are requirements for the type of project you are applying. Read them carefully. They indicate a number of rules for NDED NAHP program as well as items that are required to be submitted as attachments to your application.

General Requirements

1)NAHP application includes all requested and required information. This includes answering all Parts of the application in full. Part VI and Part VII information will be accepted by the department after the application due date on the date provided from NDED specifically in writing to the applicant. Specifically, NDED will undertake a subsidy layering review of every project.

2)Applicant has no significant, unresolved audit finding(s) and no legal actions under way that may significantly impact implementation of the project.

3)Explanation of the Fair Housing Act and Section 504 accessibility requirements applicable to the project. Explain what Fair Housing Act and Section 504 requirements apply to the project and how they will be met. Requirements are not limited to project design. NDED may consult other agencies to review the project for compliance with these requirements. [Part III Application Threshold Requirements narrative]

4)Activities will be completed within 24 months of award.

5)The NAHP financial assistance to the unit provided by the grantee to the property owner and project soft cost (housing management) cannot exceed the maximum per unit NAHP subsidy. A listing of subsidy limits by county can be found at The NAHP financial assistance provided to the property owner by the grantee shall usually be secured by a second mortgage or other security agreement as approved by DED. (Part VI Proposed Program Guidelines, Part II Funding Summary, Part III Project Budget and Financing , and Part IV Threshold Requirements narrative)

6)Units rehabilitated must be occupied as a principal residence by the tenant and subsequent tenants for a period of at least 5 years form the date that NAHP funds are invested in the property. Five years is the minimum but longer affordability periods may be enforced in relation to higher subsidy amounts.

7)All programs must be in compliance with the Fair Housing Act. (Part VI Proposed Program Guidelines)

8)All units assisted with NAHP funds must meet NDED Rehabilitation Standards and local codes. (Part VI Proposed Program Guidelines)

9) All programs must comply with HUD’s lead-based paint regulation requirements. (Part VI Proposed Program Guidelines)

10) Units assisted with NAHP must be occupied by tenants at or below 80% of the area median income. Income limits can be found at (Part VI Proposed Program Guidelines)

11) All assistance to units shall be in the form of a loan between the grantee and the property owner at an interest rate of no less than 3% over 10-20 years or 5% if the length of time is less than 10 years. There shall be no pre-payment penalty allowed in the ban agreement. Tenants shall in no way be responsible for the repayment of the loan between the applicant and the property owner. (Part VI Proposed Program Guidelines)