Michigan Housing and Community Development Fund FAQ’s
Updated – 2/5/2013
My organization is the Medicaid Waiver Agent for our community, and we are working with partners to identify funding sources to create/renovate existing buildings to be used as low-income senior housing. Are MHCD funds available for allocation for this type of initiative?
It appears as if you are seeking sources for the creation/renovation of rental housing for low-income seniors. Assuming this is the case, this would be eligible for MHCD Funds.
Under a homeownership program what are the qualifications/restrictions, if any for the remaining 80% of the units that can exceed 60% of the Area Median Income (AMI)?
There are no additional income restrictions beyond the 20% at 60%AMI requirement. Mixed income projects are encouraged as noted in the scoring criteria.
I am writing to inquire if Supportive Housing projects proposed under MHCDF must be awarded to a HARA or can agencies not serving in that capacity apply?
The NOFA is open to any non-profit organization, for-profit corporation, municipality, Land Bank or approved Partnership and is not just limited to the HARA. That said, for a Supportive Housing project to realistically meet the other threshold and scoring criteria as outlined, some level of coordination or partnership with the HARA would be necessary.
Is our local unit of government eligible to receive this funding if we are a CDBG, HOME, & NSP Entitlement?
Yes – municipalities, including those that are CDBG/HOME/NSP entitlement communities, are eligible applicants for MHCD Funds.
Can funds be used for building renovation for transitional housing for homeless Veterans?
Transitional Housing for Homeless Veterans is eligible so long as the population and project type meet the parameters outlined in the NOFA and Application.
We are looking at this grant application to possibly help rehabilitate a former greenhouse into space for use by the Land Bank and an area non-profit. Our question is if this falls into the community facility category. This space would be used by the Land Bank, which serves the community in eliminating blight, selling side lots to eligible residents, and finding creative ways to put property back into re-use. In addition tothe Land Bank a local non-profit that serves the public. Please advise on if this eligible as a community facility.
Yes this would be eligible under the Community Development category, provided that the proposed site falls within an area that qualifies as a downtown or adjacent neighborhood.
Will MSHDA staff review my MOU in advance of submission to ensure it meets your requirements?
While we can’t review/approve a MOU in advance of the application, so long as one is in place that clearly articulates the roles and responsibilities of each project participant and covers critical aspects of project implementation we wouldn’t reject an application on the basis of the MOU. If the review panel has questions and/or suggestions on the MOU these would be asked during the review period and potentially added as conditions for award.
My organization is looking to request funding to acquire and rehabilitate 2 homes in an NSP target neighborhood. Is this eligible for MHCD Funds?
So long as the geographical boundaries fall within the identified “downtown or adjacent neighborhood” and the scope of rehab is sufficient to bring the units up to code this appears to be eligible.
My organization is looking to request funding to operate a minor home repair program. Is this eligible?
All units assisted must be brought up to code upon completion and must be located in an area that qualifies as a “downtown or adjacent neighborhood”. Assuming both are the case in the program you’re proposing, then this appears to be eligible.
Is it appropriate to use this opportunity to fund temporary housing subsidies for extremely low income households in connection with the HARA for Rapid ReHousing?
Temporary housing subsidies are not an eligible activity under the Supportive Housing Category.
The NOFA for applications due 2/15/2013 refers to the 2012 MHCD Fund application, but only the application labeled “2013 Application” is available on MSHDA’s website, as far as I can see. Is this the correct application?
This is an administrative issue, the application you’re referencing is the right one, the funds were appropriated in 2012 – but since the application due date and award will both happen in 2013 the application reflects the 2013 date.
We are applying for a 9% LIHTC in the Feb 15th round. We will be getting a Capital Needs Assessment (CNA) done. If we apply for MHCDF funding, do you consider that MSHDA-financing, thereby requiring a CNA by Onsight/Insight? Or can we select another firm?
Funding from MHCDF in and off itself would not necessitate a CNA being conducted by OSI, a CNA from another provider is acceptable.
Where can the pro forma/s be found that are required to be submitted with the MHCDF Application? The proformas are referred to on page 2, Section V of the application.
The proformas are imbedded as hyperlinks in the application itself in Section V: Project Type. Scrolling over the subheadings “Proforma I, Proforma II, or Proforma III” will produce a blank excel worksheet for each of the respective project types – Rental Housing, Community Development, or Permanent Supportive Housing. The completed proforma should then be included as an attachment to the final application that is submitted for review.
Could you give me an idea of when grants may be awarded/notified for the NOFA due 2/15/13, and timeframe for grant contracting, to get an idea, if we are a successful grantee, when an acquisition closing could take place with MSHDA funds?
Following is a tentative timeline subject to review and approval by the Authority’s Board of Directors:
- HCDF Applications Due – 02/15/2013
- Application Review – February/March 2013
- Award Decisions – Late March 2013
- MSHDA Board of Directors Approval of Awards – April 2013
- Notification of Conditional Award to Recipients – Late April/Early May 2013
- Grant Contracting, Due Diligence, etc. – May/June 2013
Can NSP2 funds invested for acquisition and demolition count as leverage?
Sources of funding, such as NSP2, that are invested prior to the MHCDF award can count towards leverage provided that you can demonstrate that the project for which you are seeking MHCDF funds and for which you invested NSP2 funding were one in the same. You will need to demonstrate in your application that the proposed project was planned on the site at the time of NSP investment.
I was looking at the recent grant opportunity due February 13, and wondered if the program might cover creation of an Individual Development Account program for housing at a subsidized housing project?
IDA Programs are not eligible under the approved allocation plan.
Is Energy Star 3.0 acceptable as a “nationally recognized green building standard?”
Yes
Does MSHDA’s published list of eligible distress area qualify in response to the question, “Is the project located in a state and/or federally designated investment/incentive target area?”
No it doesn’t. There is however, a statutory earmark for projects located in eligible distressed area.
Will Davis-Bacon standards apply to this resource?
The investment of MHCDF isn’t a federal source and thereby doesn’t trigger Davis Bacon in and of itself. Projects leveraging other federal sources should be consulted to determine if it is otherwise triggered.
What qualifies as a downtown or adjacent neighborhood?
For purposes of this NOFA, an area qualifies as a downtown if it meets all of the following criteria:
- 20 or more contiguous commercial parcels that have been zoned, planned or used as commercial development for 50 or more years
- Primarily zero-lot-line developments
- Pedestrian-friendly infrastructure
- Substantial, multi-level historic buildings or a historic district
- Appropriate mix of businesses and services
Adjacent neighborhoods are those that are either directly touching or within ¼ mile of a downtown.
Where can I read the provisions of Act 346 of 1966)?
You can reference this State of Michigan Statue at: MCL 125.1458b
How does MSHDA evaluate/score the readiness of other leveraged funding – is there a difference if there is an existing award in place for the leveraged funding compared to leveraged funding that is anticipated and must be applied for?
We don’t count funds as leveraged – unless they are committed.
Does the amount of MHDC funding requested impact the score/evaluation of the proposal?
Not necessarily, however part of the evaluation does include an analysis of whether the proposed costs are reasonable and necessary –and in keeping with industry standards.
The RFP states that there can be only one application per applicant. What if we apply for funding through ABC Nonprofit Housing Corporation for one project and Housing Place for another. Because ABC NHC is a wholly owned subsidiary of Housing Place, does that constitute the same owner? ABC NHC and Housing Place are separate 501(c)3’s?
You could not proceed with two applications as you’ve proposed, a wholly owned subsidiary of an organization planning to apply would be considered the same applicant – and thereby limited to one application.
If we are planning to submit a request to use MHCD funds for development costs on a project that does have leveraged funding, how do we calculate the number of MHCD units and not-MHCD units?
Use the following formula: MHCD/Total Development Costs =Y%
Total Project Housing Units x Y%
Who should letters of support be addressed to?
Letters can be addressed to MSHDA and sent to our Lansing office at 735 E. Michigan Avenue, P.O. Box 30044 Lansing, MI 48909
If a non-profit partners with a for-profit, can the non-profit apply for the funds and lend it to the for-profit, with any program income used for additional housing activities?
Joint proposals are permissible – so long as the agencies in partnership execute and include an MOU along with their application. However, any program income generated from any transaction would have to be returned to MSHDA. You could do more than one activity within a single application such as you are suggesting, you will need to clearly articulate how the two activities are supportive of one strategy and one single application.
We intend for our proposed project to be rehabilitated/constructed to a standard which is LEED certifiable, but we do not intend to complete the certification process. In this case, is a letter from the project architect sufficient as documented proof of intention to comply with a nationally recognized green building standard?
No, “documented intention to comply with a nationally recognized green building standard” will require more than a letter from the project architect. You would, in fact, need to include information in your application that demonstrated registration with the USGBC (for LEED) . To score points in this category we are requiring applicants to comply with a third party rating system.