TDHCA Rental Development

Application and Development Process

Getting Ready

• Technical assistance is available from the Multi-family Production Unit

• Contact David Danenfelzer 512-475-3865

• Applications are currently accepted at any time

Application Threshold Reviews

• CHDO qualification

• Organizational review

• Phase 1 Environmental

Application Review ProcessInitial Approvals

• Feasibility assessment – preliminary review done by production staff

• Site review – has TDHCA funded other projects near this site that would constitute undue competition or market impact?

• Project Design – does the design reflect the goals of the agency and the project

• HOME compliance – does application reflect probable compliance with all regs?

Underwriting and Funding Award

• Once initial reviews are completed, application is forwarded to Real Estate Analysis Unit to determine subsidy

• Costs compared to cost database• Budgets reviewed for completeness• Underwriting attempts to reconcile two

conflicting goals:– Provide as little subsidy as possible– Assure the feasibility of the project

Contract Processing

• Read and sign contract• [For CHDO operating funds only,

expenditures may begin.]• Immediately address Relocation notice

requirements• Engage in Environmental and Site and

Neighborhood reviews• Understand LURA implications• Participate in loan closing

Contract Activation

• To be covered

Pre-construction

• At this point pre-construction and acquisition draws only, until . . . .

• Plan review and corrections if necessary• Contractor Eligibility approval• Lead paint inspections• Labor Stds Officer appointment and wage rate

preparation• Preconstruction conference• Notice to proceed

During and After Construction

• Progress inspections

• Accessibility clearance

• Be prepared!

Miscellaneous Information

• http://www.hud.gov/offices/cpd/affordablehousing/programs/home/index.cfm

• Environmental Notice CPD 01-11

• 504 and Fair Housing Notice CPD 00-09 extended by 03-13

• pjones@icfconsulting.com

Tools for Developers

• http://www.enterprisefoundation.org/resources/ERD/default.asp

• LISC

• Advanced HOME training – ICF

• Housing Development for Nonprofits by Ben Hecht

Underwriting Issues

• Time delay between funding and completion• Cost of compliance• Assure contingencies and reserves are

appropriate– Construction– Replacement– Operating/rent-up– Developer fee– Debt coverage ratio

• Insurance, utilities, utility allowances• Rent increases lag inflation in expenses