MICHIGANSTATE HOUSING DEVELOPMENT AUTHORITY
NEIGHBORHOOD STABILIZATION PROGRAM
2009 COMPETITIVE APPLICATION
NEIGHBORHOOD STABILIZATION PROGRAM
2009 COMPETITIVE APPLICATION
Applicant Information
Project / Program Description
Section I. Cost-Effectiveness (30 points)
Typical Project: Sources and Uses (20 points)
Project Type 1: Acquisition and Rehabilitation/Construction of Foreclosed or Abandoned Housing for Resale
Project Type 2: Assistance to Homebuyers for Purchase with Repairs and/or Moderate Rehab
Project Type 3: Demolition of Blighted Property
Project Type 4: Redevelopment of Vacant Land for New Construction of Single-Family Housing
Project Type 5: Redevelopment of Vacant Land and Buildings for Use Other than Housing
Proposed Budget (5 points)
Leveraged Funds (5 points)
Section II. Desired Results (40 points)
Target Area(s)
Market Characteristics (10 points)
Other Characteristics (5 points)
Planning Grid (5 points)
Other Impact Factors
Energy Efficiency/Green Building (5 points)
Workforce Development (5 points)
Readiness to Proceed (10 points)
Section III. THRESHOLD REQUIREMENTS and Administrative Compliance
Threshold Requirements
Administrative Guidelines
Section IV. Component Compliance GUIDELINES
Single Family Projects
Project Type 1: Acquisition and Rehabilitation/Construction of Foreclosed or Abandoned Housing for Resale
Project Type 2: Assistance to Homebuyers for Purchase with Repairs and/or Moderate Rehab
Project Type 4: Redevelopment of Vacant Land for New Construction of Single-Family Housing
Demolition of Blighted Structures
Project Type 3: Demolition of Blighted Property
Redevelopment of Vacant and Demolished for Use
Project Type 5: Redevelopment of Vacant Land and Buildings for Use Other than Housing
Section V. Implementation and Capacity (30 points)
Addendum 1: Partnership Profile for Nonprofit Organization
Addendum 2: Sales and Marketing Plan
MICHIGANSTATE HOUSING DEVELOPMENT AUTHORITY
NEIGHBORHOOD STABILIZATION PROGRAM
2009 COMPETITIVE APPLICATION
Received by April 23, 2009
Mail original completed signed Application, required attachments, and five (5) copies to:
MichiganState Housing Development AuthorityMichiganState Housing Development Authority
Attn: Shawne Haddad ORAttn: Southeast Michigan Team
735 E. Michigan Avenue3028 West Grand Boulevard, Suite 4-600
Lansing, MI 48912Detroit, MI 48202
I. APPLICANT INFORMATIONName: / Phone:
Address: / Fax:
City, State: / Zip:
Main Contact: / Email:
MSHDA Org #: / Federal ID#:
Agency Class: Local Unit of Government Land Bank Fast Track Authority
Non-Profit For-Profit in Collaboration with Unit of Local Government
MSHDA CHDO: Yes No / Population (if local government):
II. AUTHORIZED SIGNATORY
Name: / Phone:
Title:
III. COMPONENT ATTACHMENT(S)
Number of Component(s) attached:
Acquisition and Rehabilitation/Construction of Foreclosed or Abandoned Housing for Resale
Assistance to Homebuyers for Purchase with Repairs and/or Moderate Rehab
Demolition of Blighted Property
Redevelopment of Vacant Land for New Construction of Single-Family Housing
Redevelopment of Vacant Land and Buildings for Use other than Housing
TOTAL MSHDA NSP FUNDING REQUESTED: $
PROJECT / PROGRAM DESCRIPTION
Program/Project Description
Program Title:
1
The purpose of this statement is to briefly describe the most important elements of the proposal in the spaces below. The project described below should relate to the "Desired Results" shown in Section II of this application, if applicable.
1. Describe the entire project. Specifically indicate any affordable housing units that will be produced, whether units will be rehabilitated or new construction, the proposed number of units, and any other funding sources in the project.450 characters
2. If other non-housing activities are planned with NSP funds (such as demolition or the redevelopment of property for uses other than housing) briefly describe what will be done. If a public facility is proposed, describe the public facility, whether the facility will be rehabilitated or new construction, the purpose of the facility and the intended beneficiaries of the facility. If demolition is proposed, identify the number of units to be demolished
450 characters
3. Briefly describe any activities conducted by other partners from other funding sources which will be coordinated with this project to support successful results for the target area.
450 characters
4. Indicate the most important measure(s) applicant will use to determine whether the project has accomplished the results intended and identify key success measures.
450 characters
SECTION I. COST-EFFECTIVENESS
TYPICAL PROJECT: SOURCES AND USES
Instructions: Use the worksheet format on the attached Excel Spreadsheets to estimate expenses for typical projects to be undertaken with NSP funds. Use the spreadsheet to estimate amounts required for the activities connected with the proposed project, multiply by the proposed number of units, and transfer totals to the budget request. Transfer the amounts and proposed units from the proforma to the appropriate lines of the application budget.
Note that Project Types 1 and 4 use the same proforma, since they both involve the acquisition, development, and resale of residential housing that is foreclosed or abandoned (Project Type 1) or vacant, but not foreclosed or abandoned (Project Type 4).
Project Type 2 involves assistance to homebuyers to select a foreclosed or abandoned home using NSP for down payment assistance and moderate repairs.
Project Type 3 involves demolition.
Project Type 5 involves redevelopment of vacant land or buildings for a use other than housing. Because these vary widely, ranging from simple (a playground or community garden), to complex (a community center), the included proforma is primarily a just a cover sheet for additional information to be provided by the applicant. The applicant should include an operating proforma as well, showing how operating costs will be covered after the property is placed in service (minimum 5 years, 15 years preferred).
For projects which involve ongoing operating and/or maintenance costs, such as a park or community center,attach an annual operating budget, including letters of commitment for any ongoing operating costs.
Project Type 1: Acquisition and Rehabilitation/Construction of Foreclosed or Abandoned Housing for Resale
Project Type 2: Assistance to Homebuyers for Purchase with Repairs and/or Moderate Rehab
Project Type 3: Demolition of Blighted Property
Project Type 4: Redevelopment of Vacant Land for New Construction of Single-Family Housing
Project Type 5: Redevelopment of Vacant Land and Buildings for Use Other than Housing
SECTION I. COST-EFFECTIVENESS
PROPOSED BUDGET
Budget Instructions
1. Indicate an amount on the appropriate line for the appropriate activities for which funding is being requested. Do not include administrative funds. Overhead costs are paid through a “Project Delivery Fee” or “Developer Fee” as noted.
2. Indicate NSP-funded units for all component/activities which develop or demolish housing units. [c1] Make sure each unit is counted only once.
3. Leveraged funds are funds brought to the program or project which are necessary for completion.
4. Complete the Leveraged Funds Form after completing the budget, showing the status of all leveraged funds reported in the budget.
5. The total in the NSP Funds Requested column should equal the total NSP funds for the proposal. The total under “Leveraged Funds” should include any additional funds that will be needed to complete the NSP units. The total on the leveraged funds form should equal the total of the leveraged funds column on the budget spreadsheet page.
SECTION I. COST-EFFECTIVENESS
APPLICATION BUDGET
Estimated Start Date: Estimated Completion Date:
COMPONENT- ACTIVITY / NSP FUNDS REQUESTED / PROPOSED # OF NSP UNITS / PROPOSED # OF UNITS FOR DEMOLITION WITH NSP $ / LEVERAGED FUNDSDemolition of Blighted Property
Demolition / $ / $
Maintenance (Land Banks only) / $ / $
Sub-Total / $ / $
Redevelopment of Vacant and Demolished Properties
Acquisition / $ / $
New Construction Single Family Residential / $ / $
Rehabilitate Vacant Structures / $ / $
Homeownership Counseling / $ / $
Public Facilities (playgrounds, etc.) / $ / $
Sub-Total / $ / $
Foreclosed/Abandoned Residential Property
Acquisition / $ / $
Rehabilitation / $ / $
New Construction / $ / $
Down Payment Assistance / $ / $
Homeownership Counseling / $ / $
Sub-Total / $ / $
TOTAL / $ / $
SECTION I. COST-EFFECTIVENESS
LEVERAGED FUNDS
For each source of leveraged funds noted on the budget spreadsheet, list the contact person(s), telephone number(s), status and amount of commitment. Whether the Status of leveraged funding is “committed” or “pending”, provide a narrative description for each source including the proposed use of those leveraged funds.
Source / Contact Person / Telephone / Status / Amount1) / Committed
Pending
Narrative: 250 characters
2) / Committed
Pending
Narrative: 250 characters
3) / Committed
Pending
Narrative: 250 characters
4) / Committed
Pending
Narrative: 250 characters
5) / Committed
Pending
Narrative: 250 characters
6) / Committed
Pending
Narrative: 250 characters
7) / Committed
Pending
Narrative: 250 characters
8) / Committed
Pending
Narrative: 250 characters
9) / Committed
Pending
Narrative: 250 characters
10) / Committed
Pending
Narrative: 250 characters
TOTAL (this should match the total leveraged funds on the budget page) / $
1
SECTION II. DESIRED RESULTS
TARGET AREA(S)
Target Area Description: Describe the proposed target area(s) for the project or program. An appropriate target area is typically a neighborhood or a small community. The target area should be appropriate to the scope of the project and the nature of the activities proposed.
Name of proposed target area:
Description:
600 characters
Check one or both of the attached boxes, as appropriate:
The proposal is for multiple projects on scattered sites to be identified; a street-level map of the proposed target area(s) for sites is attached, with the boundaries clearly identified, AND/OR
The proposal includes sites which have already been identified; a street-level map of the neighborhood of the project site is attached, with the site(s) clearly identified.
TARGET AREA CHARACTERISTICS
Overall Target Area Market Characteristics
NSP-funded projects will be prioritized for neighborhoods and communities where the incidence of foreclosure and/or abandonment is a substantial threat to the stability of the neighborhood and a threat to the home equity of existing property owners, especially owner-occupants in single-family neighborhoods. Note that areas may not be the most disinvested areas of the community, but are more likely to be the areas which are at a “tipping point,” and are at risk of continuing future severe drops in neighborhood housing values. The characteristics of such neighborhoods are:
- Some continuing sales activity, with recent closed sales to new owner-occupants
- Spot (rather than extensive) vacancy and abandonment
- Average or higher rates of owner occupancy compared to surrounding communities
- Housing values higher than adjacent blocks or neighborhoods
- Sufficient presence of foreclosed homes throughout an existing neighborhood which represents a continuing threat to the equity of neighborhood property owners, especially owner occupants.
- Stabilizing factors, such as quality public services, active resident involvement in neighborhood management, or proximity to commercial center serving neighborhood residents
Attach one or more pages of neighborhood market characteristics that establish that NSP investment in the target area will support a strengthening of neighborhood housing values, based on marketability of property to owner-occupants and increased community vitality (increased population, market for neighborhood businesses, pedestrian interaction between NSP-funded units and existing owner-occupants, etc.)
Target area market characteristics are attached
Other Neighborhood Characteristics
The characteristics indicated below describe the neighborhood of the project site(s) as indicated on the map(s) above. Not all of these characteristics will apply to a given target area; check those that apply.
In addition to responding to the statements below, add any characteristics to more accurately describe the community in a way that will help MSHDA understand the changes that need to occur to achieve MSHDA’s desired result for the target area. Indicate, as appropriate, the characteristics of the target area and provide detail in comment area below.
If more than one target area is proposed, and the target areas have different characteristics, the applicant should submit separate Target Area Characteristics and Planning Grid (Sections B and C) for each target area.
Yes No N/AThe target area includes or is near a center of commerce for a larger area, with retail and other services, employers and other public amenities within and/or immediately adjacent to its boundaries.
Comment:
250 characters
Yes No N/AThe target area is strategically important to the larger community because of location, high visibility, proximity to jobs and services, etc.
Comment:
Yes No N/AThe safety of target area residents is at risk because of abandoned residential and commercial properties or other hazardous structures which will be addressed through this project.
Comment:
Yes No N/AThe target area is a high cost area for housing; an increase in the number or quality of affordable units will promote increased income diversity in the community and enable lower-wage workers to live closer to work, school, and other opportunities.
Comment:
250 characters
Yes No N/AHousing units in the target area are in close proximity to each other; improvement of real estate will have a direct positive benefit on neighboring units.
Comment:
250 characters
Yes No N/ARehabilitation and/or infill new construction of sites on existing public water and/or sewer in the target area supports smart growth in the area by making use of existing infrastructure capacity, protecting ground water quality, and promoting wise land use.
Comment:
250 characters
Yes No N/AThe target area local government and/or community has adequate controls to assure property maintenance and prevent nuisances in order to safeguard the health and safety of residents and protect target area households and projects assisted by this proposal from loss in property value due to neighborhood blight.
Comment:
250 characters
Yes No N/AThe target area includes, or is within convenient walking distance of, services and amenities for target area residents such as schools, parks, employers, and/or retail services.
Comment:
250 characters
Yes No N/AOther:
Comment:
250 characters
Yes No N/AOther:
Comment:
250 characters
SECTION II. DESIRED RESULTS
PLANNING GRID
Proposed Project Results Planning Grid. As applicant plans the targeted program, indicate on the grid the specific conditions/ opportunities/ partners etc. that are relevant for the target area(s) proposed. By identifying the current situation applicant desires to change in the proposed target area, applicant will identify the condition to improve and/or behavior to change for property owners and/or residents of the target area. Once applicant has identified the condition or behavior, applicant will be able to identify the way to measure the success of the project.
Step / Guidance / Response1. Identify the applicant organization’s housing or community development mission. / Why does the organization exist? What elements of the organization’s mission directly support the proposed project? / 650 characters
2.Describe the housing market. / What does the data analysis from the study of the market indicate? Are there statistics or data that demonstrate trends? Is there ability to link data to any or all of the following areas: image, market, physical conditions, neighborhood management? / 650 characters
3. Describe the role of neighborhood residents in planning or implementing the proposed project. / How are neighborhood residents involved in maintaining a high quality of life in the target area? How will they be involved in the implementation of the project? How have they been involved in planning NSP-funded activities? / 650 characters
4. State the reasons for selecting this target area. Indicate what is known about the target area that has led applicant to identify this proposed project as a priority. / Why did you choose this area? What makes this area important? Why is this area important to residents and potential residents? Who have you talked to? What have you observed? How does this fit into the community plan? Is there any synergy you can capture? / 650 characters
5. Describe what else is happening in the built community. / What are the outside influences? Is there job or economic changes in the built community? Are there new investments or disinvestments? What are the area’s strengths and assets? / 650 characters
6. Explain the challenges or problems to be addressed in this target area and explain the reasons for addressing them. / What can you improve in the target area? What opportunities exist for change? What makes these challenges or problems take priority? Are you building on the strengths of the target area or trying to “fix” its biggest problem? Who else is working in the area and what are they doing? / 650 characters
7. State the results for the target area. / What will be different in terms of image, market, physical conditions and/or neighborhood management? How will people in the target area be different? / 650 characters
8. List how the results will be measured. / How will you and MSHDA know that you have succeeded? / 650 characters
9. List the Product Steps/Strategy you will use. / What has to be done? What does progress toward success look like? How will you move toward your desired results? / 650 characters
SECTION II. DESIRED RESULTS
OTHER IMPACT FACTORS
Energy Conservation Measures/Green Building (up to 5 points): Describe energy conservation measures/green building techniques that will be incorporated into construction projects to be funded by NSP. Note that no additional points will be awarded for meeting 5-star energy conservation standards for new construction projects (program requirement). Applicants proposing to meet Energy Star requirements on NSP housing projects should be aware that construction costs will need to include the cost of a HERS rating; grantees will be responsible for procuring a local HERS rater, as well as meeting any construction costs connected with achieving the promised energy star rating. Other green building/deconstruction techniques may be proposed as well, but the attachment must be specific about the energy conservation/green building benefits to be achieved and the means for achieving these benefits. Check one:
See attached description of proposed Energy Conservation/Green Building program component.
Not applicable
Coordination with Workforce Development Programs (up to 5 points): Describe any local plan to provide employment and training opportunities through construction projects funded by NSP. Be specific as to the employment and/or training elements of the program and the local job training partnership to be developed. Include a letter(s) of commitment to participate from you local job training agency(s).