IHCDA CHDO Webinar Series Rental Guidelines... · 2020-03-20 · Marketing Accessible Units:...
Transcript of IHCDA CHDO Webinar Series Rental Guidelines... · 2020-03-20 · Marketing Accessible Units:...
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IHCDA CHDO Webinar Series
HOME Rental Guidelines
April 11, 2017
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Your Hosts
Joy Hudson Vice President
Heather Presley-Cowen Adjunct Director of CD Initiatives
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About HPG Network
• Indiana-based national nonprofit
• Mission to “cultivate thriving communities”
• IHCDA partnership to deliver technical assistance & training to agencies funded through IHCDA
• Follow us on facebook
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IHCDA’s Focus on CHDOs & Their Boards
Focus on CHDOs
Focus on Boards
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Today’s Learning Objectives
• At the end of today’s session, participants will have enhanced ability to:
– Comply with federal requirements related to the HOME Program by gaining an understanding of Final HOME Rule
– Determine the period of affordability and know the requirements that apply during that period for HOME-assisted rental projects
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Types of Rental Housing Projects
Permanent & Permanent Supportive
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• Traits
• Eligible Activities
• Ineligible Uses
• Leasing
Permanent Housing
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• Traits
• Eligible Activities
• Ineligible Uses
• Leasing
Permanent Supportive Housing
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RENTAL PROJECT REQUIREMENTS
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• Rent & Income Restrictions
• Utility Allowances
• Lease Language
• Tenant Selection
• Marketing
Rental Project Requirements
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Rent & Income Restrictions
• Application of set-asides
• Where to fine Rent & Income Limits
• Income certification frequency
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Utility Allowances
• Determines max rent
• Cannot exceed published rent limit
• Updated annually
• Refer to Federal Programs Ongoing Rental Compliance Manual for additional information.
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Lease Language
• Leases required
• Minimum language to be included
• Prohibited provisions
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TENANT SELECTION
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Tenant Selection Criteria
• Background Checks
• Occupancy
• Consistency is key
• Citizenship
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Tenant Selection Criteria Imposed by Management
• Program eligibility
• Minimum income requirements
• Citizenship requirements
• Other checks
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Tenant Selection Criteria Policy
• Rejection of applications
• Application & waiting list
• Transfer policies
• Preferences
• Accessible units
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Developing a Tenant Selection Criteria Policy
• Follow the rules
• Review IHCDA’s guidance
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MARKETING ACCESSIBLE UNITS
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Marketing Accessible Units: Ongoing Leasing
Order
1st Existing occupants that require accessibility features but are currently occupying a unit that does not offer such features.
2nd Qualified applicants on the waiting list that require accessibility features.
3rd Market the unit to attract new disabled applicants.
4th *Non-disabled person on the waiting list.
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PERIOD OF AFFORDABILITY (POA)
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POA Chart Activity HOME Subsidy Unit Must Remain
Affordable for At Least
Homebuyer •New Construction •Acquisition •Rehab/Acquisition
Rental •Acquisition •Rehabilitation
Less than $15K
$15K - $40K
Greater than $40K
5 years
10 years
15 years
Rehabilitation with refinancing Any amount 15 years
New construction or acquisition of newly
constructed transitional, permanent supportive or rental
housing
Any amount 20 years
RHTC Combo Deals Any amount Term of RHTC Compliance/Extended Use
Period
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POA Enforcement
• Enforce POA & related restrictions
• LCRA
• Rental POA
• Recapture
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Rental POA Requirements
Three (3) primary areas of compliance
• Rents Charged
• Condition of the Unit
• Income Levels of Tenants
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Deadlines for Rental Projects
HOME Final Rule 92.252
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Rental Occupancy Deadlines
• Occupancy within 6 months of completion
• Repayment
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Tenant Protections & Selection
• Written lease
• Lease terms
• Refusal to renew / termination
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Developing a Rental Project
A practical approach
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Project Development Phases
• Feasibility
• Pre-Development
• Development
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Feasibility Phase
Prepare the Organization
• Build a Professional Team
• Prove the Need & Demand for the Project
• Create a Development Plan
• Find a Site
• Test Financial Feasibility
• Plan for Community Engagement
• Write the Business Plan
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Traits of a Successful Professional Team
• Development “expert”
• Lawyer
• Architect
• Cost “expert”
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Traits of a Feasible Project
• Demonstrated Housing Need & Demand
• Identified Target Groups
• Understanding of the People
• Understanding of Needs of Future Residents
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Traits of the “Right” Site
• Suits your target residents
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Traits of a Financially Tested Project
• Preliminary capital budget completed
• Preliminary operating budget completed
• Pro forma developed
• Determination of how much money is needed
• Pre-development funding secured
• Viable cash flow plan
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Traits of a Solid Community Engagement Plan
• Written document
• Builds support among decision-makers
• Builds active community support to address possible community concerns
• Protects & exercises your legal rights
• Uses or responds to the media
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Writing a Business Plan
• Brings together all key aspects of your project
• Turns a proposal into a viable idea worthy of support
• Used to gain the support of funders, lenders & community members & leaders
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The Pre-Development Phase
• Secure Funding
• Design the Building
• Obtain Municipal Approvals
• Seek a Builder
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Traits of a Funding Ready Project
• Capital campaign is developed & ready to implement
• All potential sources of funding have been explored
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Traits of a Funding Ready Project cont’d
• Written commitments
• Written agreements
• Lender’s agreement & mortgage insurance
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Traits of a Well-Designed Project
• Property secured
• Environmental assessment completed
• Architect drawings prepared
• Capital & operating budgets revised accordingly
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Traits of a Permit-Worthy Project
• Permit application submitted
• Community engagement firmly underway
• Any modifications needed to secure the approvals have been made
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Traits of a Procurement Ready Project
• Detailed construction drawings
• References of prospective bidders have been checked
• Bid package assembled
• Capital & operating budgets updated
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How Ready Is Your Rental Housing Development
Project?
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Upcoming CHDO Sessions
• 4/27/17 - HOME Homebuyer Guidelines
• 5/10/17 – Project Planning for HOME 1.0 – How to Access Pre-Development Seed Money
• 5/24/17 – Project Planning for HOME 2.0 – Working with the Local Community
• 6/13/17 – Capacity Building 1.0 – Organizational Financing & Project Pipeline
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Tools & Resources
• Like us on Facebook
• HUD Webpage for CHDOs: http://www.hud.gov/offices/cpd/affordablehousing/programs/home/topical/chdo.cfm