Nebraska Affordable Housing Program

Southeast Investment Zone

Chapter 4B: Owner-Occupied Rehab-Targeted Revitalization Program

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, 4A and 4B for the appropriate Investment Zone or Program Set-aside to develop a competitive application.

VERIFIED INFORMATION

  • The following thresholds will be verified with data and information available to the department and do not need to be specifically addressed in the application.
  • If the department needs further information the applicant may be contacted.
  • The department may non-select an application if any or all of the following thresholds cannot be verified.
  1. Application and corresponding Parts are complete.

2. a)The grantee can choose to limit eligibility to first time homebuyers. A first time buyer shall not currently own or have any interest in other real property used for residential purposes. This restriction generally applies to the previous three years. A variety of ownership options are available. They include fee simple title, a 99-year leasehold interest, and ownership or membership in a condominium or cooperative unit. Other options can be discussed with the Department.

  1. b)Applicant is eligible.
  1. Activities are eligible and comply with national objectives and state Nebraska Affordable Housing Program priorities.
  1. Applicant has addressed and cleared all compliance problems (i.e. Davis-Bacon, acquisition, fair housing, etc.), if any, from past awards and have responses accepted by NDED.
  1. Applicant is current with all reporting requirements (semiannual status reports, closeout reports, audit reports, notification of annual audit reports, quarterly report assessment forms, etc.).
  1. Applicant has achieved the percentages, by the application due date, of State CDBG funds, State HOME, or NAHTF funds obligated or drawn down for prior State CDBG, State HOME, or NAHTF, HOME and NAHTF awards as follows (all awards will be looked at, not just within the housing program, excluding Economic Development):

CDBG 20031 Award Drawn Down 90%

CDBG 20002 & Prior Award Drawn Down 100%

HOME 2001 & Prior Award Drawn Down 100%

NAHTF 2001 & Prior Award Drawn Down100%

The percentage for funds drawn down shall be figured by NDED based on the final application acceptance date, except for applicants awarded funds after the initial award date where funds drawn down shall be based on a proportionate number of months lapsed since initial grant award.

  1. Applicant and Application preparer respond to the NDED Zone Manager with answers to clarifying questions by deadlines provided by NDED.
  1. If invited by NDED, Applicant and Application preparer participate in the Investment Zone Interview and Investment Zone Contract Negotiations on the dates and locations determined by NDED.
  1. If invited by NDED, Applicant and Application preparer respond with complete, accurate and satisfactory contract negotiation information hand-delivered, postmarked or e-mailed to Investment Zone Manager by deadlines provided by NDED.

For Application Assistance Please Contact Your Investment Zone Manager
Pamela Forster
Email:
Telephone: (402) 471-4169

INSTRUCTIONS

In submitting your application, these instructions must be followed:

Submit original and 2 complete copies of the application.

Do not staple.

Table of Contents must be included.

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

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

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

This is an outline of what your Homeowner Rehabilitation Program 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 (follow instructions)
  4. Table of Contents (include page numbers)
  5. Part III Project Budget and Financing (follow instructions)
  6. Part IV Threshold Requirements (follow instructions- narrative not to exceed 10 pages)
  7. Part V Target Plan, (include Target(s), Workplan and Milestones – not to exceed 4 pages)
  8. Part VI Project Design and Impact (include narrative not to exceed 8 pages)
  9. Part VII Proposed Rehabilitation Program Guidelines (follow instructions)
  10. Part VIII Required Exhibits

Local Government applicants:

EXHIBIT A - Notice of Required Public Hearing or Public Meeting Notice (Application Guidelines 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)

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

  1. Part IX Area Slums and Blight Requirements (complete only if applying for code enforcement)
  2. ATTACHMENTS - Provide additional supplemental documentation identified in the instructions or referred to in Part IV or Part V narrative information, such as Notice of Public Hearing or Public Meeting Notice Proof of Publication or Certificate of Posting, and a summary of citizens’ comments.

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Nebraska Affordable Housing Program 2005 Application GuidelinesPage 4B-1 of 17

Chapter 4B Owner-Occupied Rehab-Targeted Revitalization Program

Application Forms and InstructionsDecember 2004

Nebraska Affordable Housing Program

Southeast Investment Zone

APPLICATION FOR

CDBG OWNER-OCCUPIED REHAB

TARGETED REVITALIZATION

NEBRASKA AFFORDABLE HOUSING PROGRAM

DED USE ONLY
Application Number
05-HO-
Date Received

Nebraska Department of Economic Development (NDED)

PART I. GENERAL INFORMATION

TYPE OR PRINT ALL INFORMATION

1. APPLICANT IDENTIFICATION / 2. PERSON PREPARING APPLICATION
Applicant / Name
Contact / Address
Address / City
City/State/Zip / State/Zip
Telephone # / Telephone #
Fax # / Fax #
Federal Tax ID # / Preparer’s Tax ID# / SS#
Email Address / Email address
Application Preparer (check one)
 Local Staff  Out-of-State Consultant
 In-State Consultant  Non-Profit Organization
 Economic Development District  Other, Specify
3.HOUSEHOLDS (complete one option)
# ____ at or below 50% of the Area Median Family Income
# ____ at or below 80% of the Area Median Family Income / 4. NAHTF Region Indicator
Southeast – Region 6 (Southeast Investment Zone)
5.HOUSING ACTIVITIES
Owner-occupied Rehabilitation Program / 7. SERVICE AREA
6.TYPE OF APPLICANT
Unit of Local Government / City to be served:
Legislative District:
Congressional District:

8.CERTIFYING OFFICIAL:

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

______

Signature in InkTyped Name and TitleDate Signed

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) 471-3111 (800) 426-6505 Fax (402) 471-8405

Owner-Occupied Rehab-Targeted Revitalization

PART II. FUNDING SUMMARY (Roundamounts to the nearesthundreddollars.)

Activity
CodeActivity / *National
Objective / NAHP
Funds / Other
Funds / Total
Funds / Sources of Other Funds
0530 / Housing Rehabilitation / LMH
0522 / Demolition/Clearance 1 / LMH
0523 / Relocation 2 / LMH
0650 / Code Enforcement [3] / SB
0580 / Housing Management 4 / LMH
0580a / Paint Testing / Risk Assessments / Clearance Testing 5 / LMH
0180 / Total Non-Administration
0181 / General Administration 6 / LMA
1000TOTAL PROGRAM COSTS

Clarification for the above activities should be directed to DED.

Note: This table does notcalculate the totals.

Demolition is a support activity (limited to up to 10% of rehab hard costs) and must be done in conjunction with rehab.

2Relocation is a support activity and must be done in conjunction with rehab.

3 Code enforcement is a support activity with a maximum of $50,000.

4 Housing Management/Project-related Soft Costs maximums are 7%.

5 Paint testing, risk assessments, and clearance testing are not subject to the Housing Administration maximums but are limited to $1,000 per unit.

6 General Administration maximums are 6%.

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: Enter the minimum number of households to be served by the proposed project at the maximum income allowed program-wide.

Box 4: Indicate which Region your project will be located in. The application activities must be confined to the Southeast Investment Zone. Refer to the 2005 Annual Action Plan for identification of NAHP Investment Zone boundaries.

Box 5: Check the appropriate box(es) for the type of activity(ies) for which the application is made including proposed activities to be funded with both CDBG and Other funds.

Box 6: Check the appropriate applicant type box under which funds are being requested. If this is a joint application, check the appropriate type of applicant for the lead applicant.

Box 7: Indicate the City where the program will take place. Enter the appropriate Congressional and Legislative District(s) information.

Box 8: Type the name and title of the Certifying Official and date. The certifying official for a local government applicant is the chief elected official.

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 homeowner, lenders, builders, etc.
  • 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, demolition and code enforcement.
  • There are caps applied to the amount of NAHP funds that can be used for Housing Management and General Administration.
  • The Part II Funding Summary should correlate with the Part III. Project Budget & Financing.

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 legal fees, appraisal costs, housing inspection fees, lead-based paint risk assessments and clearance testing 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.

Code Enforcement (activity 0650)

Eligible code enforcement activities can include the payment of salaries and overhead costs directly related to the enforcement of state and/or local codes. Code enforcement can only be used in deteriorating or deteriorated areas where such code enforcement, together with public or private improvements, rehabilitation, or services to be provided, may be expected to arrest the decline of the area. Code enforcement does not include the costs of correcting code violations identified during inspections. The correction of code violations must be charged to rehabilitation costs. The CDBG National Objective for code enforcement is slums and blight under this program. Therefore, if code enforcement is being applied for, PART IX Slums and Blight Requirements must be completed or the property owner is ineligible or non-selected.

Housing Management (activity 0580)

The project related soft costs, or housing management, budget should include all costs of administrative and support activities for the housing proposal except construction costs and the actual costs of real property acquisition, demolition, clearance, etc.

Major line item costs under the housing administration activity may include (but are not limited to) program design (i.e. finalizing housing program guidelines), program promotion, application review, work write-ups, inspections, office rent, supplies, homeowner education – counseling, 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 not the housing management maximum.

General Administration (activity 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 what 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.

Part IV: 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.

NARRATIVE INFORMATION

  • Starting on a new sheet of paper, address all of the following threshold items (narrative not to exceed 10 pages).
  • Number each page and section.
  • All threshold requirements listed in this section must be addressed in narrative form and appropriate section should be cited with the page number where the threshold can be verified in the application.
  1. Audit Findings and Legal Actions – Please cite Exhibit C for meeting the following threshold: Applicant has no significant, unresolved audit finding(s) and no legal actions under way that may significantly impact implementation of the project.
  1. Target Area Visit – A target area visit must be requested in writing to the Zone Manager 30 days prior to the application due date. The visit is to confirm the targeted revitalization area has sufficient physical, social or economic deterioration to be considered a revitalization area. The target area must be approved by the NDED Zone Manager, prior to submitting an application.
  1. Environmental Review Requirements – The Determination of Level of Review form must be completed and submitted as an attachment. Letters must be submitted to appropriate environmental agencies necessary to complete a statutory and/or environmental assessment by the application deadline. Please submit copies of these letters as an attachment.
  1. A written plan for targeted revitalization area is required. Please summarize the plan and describe the planning process for developing the plan. In addition, please submit a copy of the revitalization plan as an attachment.
  1. Submit as an attachment, a local government map with the targeted revitalization area delineated, such as a municipal plat or block map with street names, which outline the boundaries of the designated blight/substandard area. Provide a boundary description of the designated area.
  1. Describe how the targeted revitalization area has significant physical, economic or social deterioration. Include a description and number of deteriorated or deteriorating structures throughout the area, or public improvements throughout the area that are in a general state of deterioration. Provide the percentage of deteriorated buildings. Also describe the economic decline and social issues challenging the area.
  1. Describe or submit a listing of all public improvements located in the targeted revitalization area. Provide the state of deterioration for each listed public improvement and the standard for identifying the public improvement as deteriorating.
  1. Describe how the CDBG activities will address one or more critical problems, which contributed to the deterioration of the area.
  1. Describe the major investment(s) the community will make in the targeted revitalization area, above and beyond the owner-occupied rehab activity being applied for.
  1. The maximum after-rehab value cannot exceed the Section 203(b) Single Family Mortgage Limit. The 203(b) limit can be found at Attach a copy of the 203(b) limit for the county in which your program will be located. Also, state what the after-rehab value maximum will be for your program.
  1. The CDBG per unit subsidy maximum is $24,000 under this program. Please describe how your program will meet this requirement and cite where this information can be found in your Program Guidelines.

The payment is used to reduce the purchase price and may be used as part of the down payment required depending on the first mortgage source.