Housing Assistance CouncilHousing Assistance CouncilBuilding Rural Communities since 1971

Program & Program & Application Application Information Information

SessionSession

Provide a basic overviewof the SHOP Program thresholds

and requirements.

Provide and overview of HAC’s SHOP requirements.

Provided and overview HAC’s SHOP application and required documentation.

Answer any SHOP related questions.

Our mission

“To improve housing conditions for the rural poor, with an

emphasis on the poorest of the poor in the most rural places.”

Housing Assistance Council

Established in 1971

National nonprofit organization

Created to increase the availability of decent and affordable housing for low-income people in rural areas throughout the U.S.

Provide services to local, state, and national organizations

SHOP ESSENTIALS AND

PROGRAM INFORMATION

HUD’s SHOP Program

The SHOP program is authorized under Section 11 of the Housing Opportunity Program Extension Act of 1996

Funded through the U.S. Department of Housing & Urban Development (HUD)

Provides grant monies for land acquisition and infrastructure improvement costs associated with the development of self-help units

SHOPThreshold Requirements

Non-profit Status Experience Dun and Bradstreet Data Universal

Numbering System (DUNS) Active Registration System for Award

Management (SAM) - formally CCR

Resolution of Outstanding Civil Rights Matters

SHOPThreshold Requirements (continued)

Debarment and Suspension

Delinquent Federal Debts

Pre –Award Accounting System Survey

Name Check Review

False Statements

SHOPGeneral Requirements

Eligible Activities

Land Acquisition: The acquisition of land (including financing and reasonable and customary closing costs) for the purpose of developing or rehabilitating SHOP units is an eligible activity.

Infrastructure Improvements: Included but not limited to the installation, extension, construction, rehabilitation, or other improvement of utilities and other infrastructure (including the removal of environmental hazards) in support of the development or rehabilitation of SHOP units.

SHOPGeneral Requirements (continued)

Property Standards

The statute requires that funds be used for quality “decent, safe and sanitary non-luxury dwellings” that “comply with local building safety codes and standards.”

SHOPGeneral Requirements (continued)

Energy-Efficiency: Your SHOP units in newly constructed buildings or gut-rehabilitated buildings will be certified as meeting the guidelines for either ENERGY STAR New Homes or ENERGY STAR Multi-family High Rise (MFHR), as determined by the U.S. Environmental Protection Agency and the U.S. Department of Energy . http://www.energystar.gov/

Water Conservation: Applicants are required to incorporate specific water-conservation measures in the construction and/or rehabilitation of the SHOP units. http://www.epa.gov/WaterSense/

SHOPGeneral Requirements (continued)

Energy Star Version 3.0All SHOP units constructed after January 1, 2012 are

required to develop units under the following guidelines:

Thermal Enclosure System Rater ChecklistHVAC System Quality Installation Rater ChecklistHVAC System Quality Installation Contractor ChecklistWater Management System Builder Checklist

SHOPGeneral Requirements (continued)

Homebuyer Eligibility: individuals and families whose incomes do not exceed 80 percent of the median income

Sweat EquityMinimum Sweat Equity Contribution: Eligible homebuyers will contribute a minimum of 100

sweat equity hours.

Value of Sweat Equity Contribution: homebuyer must receive the full value of the homebuyer’s sweat equity contribution as an equity contribution towards the purchase of the homebuyer’s SHOP unit.

No Homebuyer Financial Contribution by the Homebuyer

SHOPGeneral Requirements (continued)

Volunteer Labor

Leveraged Resources

Affirmatively Furthering Fair Housing

SHOP General Requirements (continued)

Sale Price: You must sell each SHOP unit below the appraised value of the property.

Mortgages and Other Loans: The homebuyer’s sweat equity contribution must not be mortgaged or otherwise restricted upon future sale of the SHOP unit.

Sale Price Reduction: The SHOP unit sale price is reduced by the value of the homebuyer’s sweat equity.

Homebuyer Credit: The value of the homebuyer’s sweat equity is treated as a credit towards the SHOP unit sale price.

SHOP General Requirements (continued)

Accessibility For Qualified Individuals with Disabilities

Economic Opportunities For Low-and Very Low-Income Persons (Section 3)

Real Property Acquisition and Relocation

SHOPGeneral Requirements (continued)

Environmental Review

All projects receiving SHOP funding must complete this process

Complicated and time consuming

Start the ER process NOW

No disbursement until HAC receives HUD approval.

SHOPGeneral Requirements (continued)

Occupational Safety and Health

Lead Safe Requirements

Indoor Air Quality

Standards of Financial Control

Eligible Applicants

Eligible applicants for HAC SHOP funds are limited to local (public or private) nonprofit self-help housing organizations established under federal or state law.

An affiliate organization will be

disqualified if applying to more than one HUD

SHOP grantee

Eligible Uses

Land Acquisition

Purchase of real property pursuant to a deed or minimum 25 year lease

Financing and closing costs associated with the land acquisition transaction

Eligible UsesInfrastructure Improvements:Utility hook-ups and connections, including, but not limited to, water, electric, gas, and sewage lines; Wells and waste disposal systems, including, but not limited to, sewer and septic systems; Impact and building fees; Streets, streetlights, curbs, roads and sidewalks; Surveys; Engineering fees; and Costs associated with the removal of environmental hazards including environmental testing and site preparation, including, but not limited to grading, razing, de-leading, hazardous waste clean-up and other environmental cleanup costs.

Eligible Uses

Administrative cost: Costs associated with the closing of a SHOP award e.g.,• Settlement or closing fees• Abstract of title search, title examination, & title

insurance• Document preparation (promissory note, deed of

trust, mortgages)• Attorney fees• Recordation fees (City, County, State tax stamps)• Escrow services (Courier costs and notary fees)

Ineligible Uses

Construction, rehabilitation, or improvement of any dwelling unit.

Land acquisition for land banking purposes (i.e., holding land for an indefinite period).

Homebuyer pre- and post-purchase counseling costs

Refinancing of loans for land acquired before NOFA issue date.

Ineligible Uses

Land acquisition that does not comply with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA).

Interest on loans used to pay for infrastructure costs.

Landscaping: (e.g. plantings, seeding, and mulching) is not an eligible SHOP infrastructure cost, unless it

relates to subsurface conditions or environmental concerns such as installing a retaining wall to prevent erosion.

Eligible Homebuyers Low-income individuals and families whose

incomes are at or below 80% of AMI.

 Minimum of 100 hours (50 hours for one adult household and or disabled participant) of sweat equity by homebuyer on construction of homebuyers house.

Persons with disabilities - Tasks

Sweat equity hours exclude homebuyer counseling and home maintenance training

HAC SHOP Award Limits No maximum dollar cap

Per dwelling unit request can not exceed $15,000

Only apply for one (1) project.

Timelines

SHOP Award Terms & Conditions1. Recoverable grant.

2. All units completed and occupied by the required deadline.

3. Interest assessed on units not completed/occupied by the production deadline.

4. Up to 90% of SHOP award may be converted to a grant.

SUBMITTING APPLICATION

All applicants must complete the “SHOP Threshold and Program Requirement Questionnaires” and include them as part of the application submission.

UNDERWRITING CRITERIA

What HAC looks for in an applicationWhat HAC looks for in an application

PART IPART I:

Organizational Capability and Organizational Capability and Experience of the Applicant Experience of the Applicant

(20 Points)(20 Points)

PART II: PART II: Financial Capability and Financial Capability and

ExperienceExperience

(20 Points)(20 Points)

(50 Points)(50 Points)

(10 Points)(10 Points)

PART V: Bonus PointsPART V: Bonus Points

(6 points)(6 points)

Application FormsApplication FormsIn addition to the narrative portion of the application, all applicants must complete and submit the following documents and forms. Failure to complete and submit required documents may result in the rejection of your application.

Required Forms1 - 14

SHOP Ready or Not?

Do you have? Administrative funding in place Experienced project staff on board Construction & permanent financing identified Sites identified & pre-qualified families Waiting lists of pre-qualified homebuyers Groups should be current with HAC’s quarterly

reporting requirements.

Contact InformationHousing Assistance Council

(202) 842-8600 (202) 347-3447 Fax

Frank MartinezSenior Loan Officer

frank@rurahome.org

Ext. 126

Dierdra PressleyLoan Officer

dierdra@ruralhome.org

Ext. 154

Carlos MurallesSHOP Program Manager

carlos@ruralhome.org

Ext. 144

Tanisha JacobLoan Fund Assistant

tanisha@ruralhome.org

Ext. 128