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HomeMy WebLinkAboutAgenda - 05-19-20; 6-c - Release of the 2020 Orange County Affordable Housing Bond Program Application 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 19, 2020 Action Agenda Item No. 6-c SUBJECT: Release of the 2020 Orange County Affordable Housing Bond Program Application DEPARTMENT: Housing and Community Development ATTACHMENT(S): INFORMATION CONTACT: Attachment 1: 2020 Orange County Emila Sutton, Director, Housing and Affordable Housing Bond Community Development, (919) Program Application 245-2490 PURPOSE: To authorize the release of the 2020 Orange County Affordable Housing Bond Program Application materials on June 8, 2020. BACKGROUND: In the fall 2016, the Board of Commissioners approved a $5 million Affordable Housing Bond. Half of the bond funds ($2.5 million) were awarded in 2017. This application is for the remaining $2.5 million of the bond funds. The 2020 application was developed based on the Request for Proposals (RFP) for the 2017 round of bond funding and the application evaluation criteria approved by the Board of Commissioners in April 2019. Eligible projects will be new construction for homeownership and/or rental development affordable to low-income households. Projects may be mixed-use and/or mixed-income. No more than 20% of residential units may be set aside for people with disabilities, in compliance with best practices outlined in the State of North Carolina's Olmstead settlement agreement. Land banking is not an eligible use. Eligible applicants for funding will be: • nonprofit organizations involved in affordable housing and community development (including faith-based organizations) • for-profit developers, and • joint ventures between eligible nonprofit and for-profit entities The application evaluation criteria consider the following factors for each proposed project: (1) income and vulnerable population targeting (2) targeting of households currently living and/or working in Orange County (3) leveraging of other funding sources 2 (4) building and site design features including environmental sustainability and accessibility features (5) community design features including neighborhood compatibility and location relative to transportation, employment opportunities, and services (6) community sponsorship, engagement, and support (7) project feasibility, and (8) developer experience Differences between this application and the 2017 RFP are mostly formatting changes in order to condense the content of application. Significant recommended changes include: • This is a funding application rather than an RFP — applications will go to the Department of Housing and Community Development (DHCD) instead of through Procurement. Because they will not go through Procurement, certain requirements of Contractors, such as E-Verify requirements and Iran Divestment Act certification requirements, are not included. • Application review and preliminary scoring will be conducted by DHCD staff, then funding recommendations will be made to the BOCC, rather than the review process going from staff to a County team, then to the Affordable Housing Advisory Board, and then to the BOCC. Because advisory boards may not be able to meet to review applications due to the COVID-19 pandemic (and the inability of advisory boards to hold virtual meetings), this process will prevent delays in application review and funding awards. If and when the 2020 application is approved by the BOCC, the proposed timeline for application review and funding award is as follows: June 8, 2020 Application Released June 15, 2020 Application Workshop July 31, 2020 Application Submission Deadline August 2020 Staff Review Applications September 1, 2020 BOCC Considers Applications and Funding Recommendations September 2 — Contracts Executed and Projects Begin October 1, 2020 FINANCIAL IMPACT: There will be no financial impact to the County, as the bond funds have already been approved. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goals are applicable to this item: • GOAL: FOSTER A COMMUNITY CULTURE THAT REJECTS OPPRESSION AND INEQUITY The fair treatment and meaningful involvement of all people regardless of race or color; religious or philosophical beliefs; sex, gender or sexual orientation; national origin or ethnic background; age; military service; disability; and familial, residential or economic status. • GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY The creation and preservation of infrastructure, policies, programs and funding necessary for residents to provide shelter, food, clothing and medical care for themselves and their dependents. 3 The creation and preservation of affordable housing options helps to meet a basic need and advances economic self-sufficiency. • GOAL: CREATE A SAFE COMMUNITY The reduction of risks from vehicle/traffic accidents, childhood and senior injuries, gang activity, substance abuse and domestic violence. Affordable housing options allow individuals to reduce risks associated with being un-housed. ENVIRONMENTAL IMPACT: There is no Orange County Environmental Responsibility Goal impact applicable to this item. RECOMMENDATION(S): The Manager recommends that the Board authorize the release of the 2020 Orange County Affordable Housing Bond Program Application materials on June 8, 2020 with any modifications from the Board. 4 Attachment 1 ORANGE COUNTY NORTH CAROLINA Orange County Affordable Housing Bond Program 2020 Funding Application Orange County Department of Housing and Community Development 919-245-2490 http://orangecountync.gov/1101/Housing- Community-Development GENERAL INFORMATION AND APPLICATION INSTRUCTIONS Overview Thank you for your interest in the Orange County Affordable Housing Bond Program.The $5 million Affordable Housing Bond was passed by the Orange County Board of Commissioners in the fall of 2016. Half of the Bond funds ($2.5 million) were awarded in 2017.This application is for the remaining half of the Bond funds. Eligible Applicants Eligible applicants for the Affordable Housing Bond Program include: nonprofit organizations involved in affordable housing and community development(including faith-based organizations), for-profit developers, and joint ventures between eligible nonprofit and for-profit entities. Applicants' past performance, experience, and partnerships will be considered in reviewing applications. Incomplete or late applications may not be considered. Eligible Projects Eligible projects are new construction for homeownership and/or rental development affordable to low- income households earning no more than 80%of area median income, adjusted by family size, as defined by the U.S. Department of Housing and Urban Development (HUD). Projects may be mixed-use and/or mixed-income. No more than 20%of residential units may be set aside for people with disabilities, in compliance with best practices outlined in the State of North Carolina's Olmstead settlement agreement. For rental developments, households applying for tenancy may not be denied based on source of income (i.e., rental assistance vouchers). Land banking is not an eligible use. Construction must begin within six months of the date of funding award, and must be completed within 18 months of award. Extensions may be granted at the discretion of the Orange County Board of Commissioners and should be submitted at least four months prior to the original project completion deadline. Application Evaluation Criteria The evaluation criteria in the Attachments section will be used in reviewing and ranking applications. The County reserves the right to add additional guidelines,terms, and/or requirements that may be needed depending on the location and nature of proposed projects. Once applications are received,they will be reviewed by staff and funding recommendations will be made to the County Manager and the Orange County Board of Commissioners.The Board of Commissioners will approve or deny funding recommendations and project proposals. Project Reporting and Monitoring During development, organizations awarded Affordable Housing Bond Program funds must submit progress reports to the County quarterly to monitor progress and performance,financial and administrative management, and compliance with the terms of the performance agreement. Please submit reports using the template in the Attachments section by email to Erika Brandt at ebrandt@orangecountync.gov. After project completion, County staff and/or the Affordable Housing Advisory Board will review funded projects at least annually for performance and compliance. Monitoring may involve site and/or office visits. Application Submission Instructions The application deadline is July 31, 2020 at 5:00 pm. Submit applications in PDF form by email to Erika Brandt at ebrandt@orangecountync.gov. Pro formas and project budgets should be submitted as an Excel file.All application materials should be clearly labeled with the name of the applicant organization,year, and name of the document. Applications may not be considered for the following reasons: 1. Projects that do not align with the eligibility criteria for this application 2. Applicant has demonstrated poor past performance or compliance with funding guidelines 3. Incomplete or late applications Checklist of Required Application Materials ❑ Section 1:Applicant and Project Overview ❑ Section 2: Project Description ❑ Project Timeline ❑ Site map showing lot boundaries, locations of structure(s), and other site features ❑ General location map (at least% mile radius) ❑ Photographs of site ❑ Floor plan(s) ❑ Elevation(s) ❑ List of Energy Efficiency measures included in the project (if applicable) ❑ List of Universal Design features included in the project (if applicable) ❑ MBE Participation Plan ❑ Section 3: Project Budget and Pro forma ❑ Detailed Project Budget ❑ Pro Forma (Rental Only) ❑ Section 4:Agency Description Nonprofit Organizations ❑ Current list of Board of Directors, including addresses, phone numbers,terms of service, and relevant affiliations ❑ Current Bylaws and Articles of Incorporation ❑ Last 2 years' operating budgets ❑ Most recent independent audit ❑ IRS Form 990 ❑ IRS tax determination letter ❑ NC Solicitation License ❑ Certificate of Liability Insurance For-profit Organizations ❑ Current list of Board of Directors, including addresses, phone numbers,terms of service, and relevant affiliations ❑ Current Bylaws and Articles of Incorporation ❑ Last 2 years' operating budgets ❑ YTD profit and loss statement and balance sheet ❑ Most recent independent audit ❑ Last 2 years' corporate tax returns ❑ Last 2 years' personal tax returns and financial statements for all persons who have more than 19.9%ownership interest in the organization ❑ Signed "Authorization to Release Information"for each persons who has more than 19.9% ownership interest in the organization ❑ Completed W-9 Form ❑ Certificate of Liability Insurance ❑ Section 5: Disclosure of Potential Conflicts of Interest SECTION 1: APPLICANT AND PROJECT OVERVIEW Applicant Information Full Legal Name: Tax ID Number: Physical Address: Mailing Address: Website: Date of Incorporation: Executive Director: Telephone Number: Email Address: Project Information Project Name: Primary Project Contact and Title: Total Project Cost: Total Funds Requested: Total Number of Units in Project: Please specify the type and amount of funding requested: Affordable Housing Bond Program: $ ❑ Grant ❑ Loan Proposed Use of Funds Requested (provide a concise description of proposed project): To the best of my knowledge,all information and data in this application are true and current.The document has been duly authorized by the governing board of the applicant. Signature: Board Chairperson Date Signature: Executive Director Date SECTION 2: PROJECT DESCRIPTION Proiect Name: Project Beneficiaries Target Population(s): Who is the target population to be served and how will their needs be addressed through this project? Describe any specific targeting of the following populations (including the approximate number of households to be served)through services provided, locations, design features, etc.: • Individuals or families experiencing homelessness • People with disabilities • Housing Choice and other voucher holders • Survivors of domestic violence • Veterans Incomes: Please indicate the incomes of the households to be served through the proposed project. Income Group Number of Households %of Total Households 0-30%of AMI 31-60%of AMI 61-80%of AMI >80%of AMI TOTAL The 2020 HUD Income Limits are listed below: 1 2 3 4 5 6 7 8 Income Level person people people people people people people people 30%AMI $19,100 $21,800 $24,500 $27,250 $30,680 $35,160 $39,640 $44,120 50%AMI $31,850 $36,400 $40,950 $45,450 $49,100 $52,750 $56,400 $60,000 60%AMI $38,220 $42,680 $49,140 $54,540 $58,920 $63,084 $67,680 $72,000 80%AMI $50,900 $58,200 $65,450 $72,700 $78,550 $84,350 $90,150 $96,000 Local Residency: Please indicate the number of households who currently reside and/or work in Orange County who you expect to serve in the proposed project. Proiect Staff Please provide names of all persons and/or consultants, etc., that will be involved with the project. Describe their responsibilities with the project and experience in successful completion of similar projects in the past. Proiect Details Type of Activity: Please check all the categories that apply to your project. ❑ Acquisition ❑ Demolition ❑ Predevelopment costs ❑ Infrastructure/site improvements ❑ New construction for homeownership ❑ New construction for rental ❑ Non-residential construction (mixed-use projects) ❑ Other(specify): Project Description: Please provide a general overview of your project, including what you are planning to produce and how you are planning to carrying out the project. Include answers to the following: • Will the project pay property taxes? • Will the project repay bond funds? If so, principal only, or principal and interest? • Will the project be mixed-income? • Will the project be mixed-use? Project Location: Please be as specific as possible. Size of the Project Site(if applicable): acres Project Site Attachments: ❑ Site map showing lot boundaries, locations of structure(s), and other site features ❑ General location map (at least% mile radius) ❑ Photographs of site Project Timeline: ❑ Attach a detailed timetable showing when each work task will be completed (e.g., planning, obtaining financial commitments, design, environmental review, bidding; loan closing, construction milestones, marketing, final inspection, occupancy, etc.) Site Control and Zoning: • Has your agency acquired or optioned property in order to carry out the project? • Will the project require rezoning/zoning variance/etc.? Construction Detail: • How many units will be newly constructed? • What is the square footage of each unit? • What is the number of bedrooms in each unit? • What is the number of bathrooms in each unit? • How many units will be fully ADA accessibility? • Is the proposed project located in a Neighborhood Conservation District? (Neighborhood Conservation Districts apply only to projects located in Chapel Hill) • Describe any notable building, community, and/or site design elements (see evaluation criteria scorecard in the Attachments section for description of elements and their point values): • Please attach the following: ❑ Floor plan(s) ❑ Elevation(s) ❑ List of Energy Efficiency measures included in the project (if applicable) ❑ List of Universal Design features included in the project (if applicable) Affordability, Marketing,and Supportive Services • Describe any methods to ensure long-term affordability of housing units, including subsidy recapture, equity sharing, deed restrictions, etc.: (Note:Recipients of County funding must agree to the terms and conditions of the Orange County Long-Term Housing Affordability Policy) • What are the proposed rents (including utility costs) or sales prices for completed units? • Describe your agency's process for marketing to ensure an adequate pool of income-eligible renters to buyers: • What supportive services, if any,will be provided in this project? • Describe your affirmative marketing plan to market your project to people of color,female heads of household, and people with disabilities: MBE Participation Plan ❑ Attach a MBE Participation Plan Community Sponsorship/Support Describe community partnerships, consultation, inclusive planning processes, engagement/outreach efforts, etc.: Alignment with Goals and Adopted Affordable Housing Policy Please explain how the proposed project aligns with local goals and adopted affordable housing strategies and policies: 12 SECTION 3: PROJECT BUDGET AND PRO FORMA Proiect Budget ❑ Attach a detailed project budget showing all sources and uses of funds.Attach funding commitment letters where available or a list of funding applications to other sources previously submitted. Pro forma (for rental property only) ❑ If you are developing a property for rent, please attach a 20-year pro forma showing estimated income, expenses, net operating income, debt service, and cash flow. Cost per Unit Cost per dwelling unit: Cost per square foot: 13 SECTION 4: AGENCY DESCRIPTION Agency Information Mission statement: Estimated total agency budget for this fiscal year: $ Does your agency budget show a surplus or deficit? Please explain: Is there a significant change in your budget from the previous year? Please explain: Number of FTE full-time paid positions: Number of FTE part-time paid positions: Number of volunteers: Number of FTE volunteers: Does the agency pay permanent employees a minimum living wage (yes/no)? If yes, is the agency an Orange County Living Wage Certified Employer? If no, please explain. Please include the following attachments: Nonprofit Organizations ❑ Current list of Board of Directors, including addresses, phone numbers, terms of service, and relevant affiliations ❑ Current Bylaws and Articles of Incorporation ❑ Last 2 years' operating budgets ❑ Most recent independent audit ❑ IRS Form 990 ❑ IRS tax determination letter ❑ NC Solicitation License ❑ Certificate of Liability Insurance For-profit Organizations ❑ Current list of Board of Directors, including addresses, phone numbers, terms of service, and relevant affiliations ❑ Current Bylaws and Articles of Incorporation ❑ Last 2 years' operating budgets ❑ YTD profit and loss statement and balance sheet ❑ Most recent independent audit ❑ Last 2 years' corporate tax returns ❑ Last 2 years' personal tax returns and financial statements for all persons who have more than 19.9%ownership interest in the organization 14 ❑ Signed "Authorization to Release Information" for each persons who has more than 19.9% ownership interest in the organization ❑ Completed W-9 Form ❑ Certificate of Liability Insurance Agency Experience Please provide a brief description of your organization's past achievements in carrying out similar projects and evidence of successful record of meeting proposed budgets and timetables. For all projects for which you have received County funding within the last 5 years, please provide the information below. If you have not received County funding within the last 5 years, please complete for comparable projects. Copy and paste the chart below as needed for additional projects. Project Name Total Project Cost Amount and Source of County Funding Date of Funding Award Approval Date of Project Completion Project completed on schedule? ❑ Yes ❑ No Project completed within budget? ❑ Yes ❑ No If no, how much over/under budget? Other Comments: lb SECTION 5: DISCLOSURE OF POTENTIAL CONFLICTS OF INTEREST Are any of the Board Members or employees of the agency carrying out this project, or members of their immediate families, or their business associates who are: • Employees of/or closely related to employees of the Towns of Carrboro, Chapel Hill, Hillsborough, or Orange County? ❑ Yes ❑ No • Members of/or closely related to members of the governing bodies of the Towns of Carrboro, Chapel Hill, Hillsborough, or Orange County? ❑ Yes ❑ No • Potential beneficiaries of the project/program for which funds are requested? ❑ Yes ❑ No • Paid providers of goods or services to the program or having other financial interest in the program? ❑ Yes ❑ No If you answered "yes"to any of the preceding questions, please explain below.The existence of a potential conflict of interest does not necessarily make the project ineligible for funding, but the existence of an undisclosed conflict may result in the termination of any grant awarded. ATTACHMENTS ORANGE COUNTY NORTH CAROLINA Orange County Affordable Housing Bond Program 2020 Scorecard Threshold Requirements: ❑ The application is complete with all required attachments and was submitted by the established deadline ❑ The project aligns with local affordable housing goals,strategies,and/or adopted policies ❑ Funding is for an eligible activity 1. Income Targeting and Special Needs(45 points): What income range(s)and population(s)will the proposed project serve?If serving multiple ranges,score will be prorated. Household Income Range Maximum Points 0 to<30%AMI 25 >30%to< 60% AMI 15 >60%to<80%AMI 10 People with special housing needs' 20 'Defined as people with disabilities,veterans,individuals or families experiencing homelessness,holders of Housing Choice or other vouchers,and survivors of domestic violence 2. Local Residency(5 points): Will the proposed project provide housing for Orange County residents? Percent of Current Orange County Residents'at Sale or Lease-up Maximum Points 80%to 100% 5 50%to 80% 2 0 to 50% 1 'Defined as households currently residing or working in Orange County or having resided in Orange County 3. Leveraging(52 points): To what degree does the proposed project include other sources of funds? Percent Funded by Bonds and Other County Funding Maximum Points 60%to 80% 3 40%to 59% 6 20%to 39% 9 10%to 19% 15 < 10% 20 Other Criteria Project pays property taxes3 2 Project repays bond funds(principal only)3 3 Project repays bond funds(principal and intere St)3 10 Project is mixed-income, meaning it serves more than one income category (including market-rate)and minimizes geographic concentration of affordable units 10 Project is mixed-use, meaning it includes non-residential uses that offer access to employment,daily needs,and health and human services 10 3These criteria are not applicable to nonprofit sponsored projects 4. Building and Site Design (20 points): Scoring Criteria Maximum Points Project incorporates sustainable design elements,such as smaller building sizes, use of local/recycled building materials,energy efficient features, LED lighting,water conservation fixtures,efficient HVAC systems,etc. 5 (for energy efficient features,the project meets or exceeds the NC Housing Finance Agency's energy efficiency criteria) Project provides handicap accessibility and/or incorporates Universal Design 3 Project incorporates sustainable community and environmental design elements, such as flexible lot design, low impact development,storm water controls, reduced impervious surface areas, natural or drought-resistant landscaping or any additional 5 element that would serve to minimize negative environmental impacts,as Orange County regulations allow Project is connected to water and sewer service,will connect to existing service, or will use a community well and sewer system consistent with water and sewer 5 boundary agreements and local standards 5. Community Design(20 points): Scoring Criteria Maximum Points Project contributes to a mix of housing within an existing neighborhood 3 Additional points may be awarded for building appearance,quality of construction, compatibility with surrounding housing,ability to foster a sense of a secure community,and contribution to neighborhood revitalization and or affordable 5 housing preservation (details must be provided by applicant) Project is accessible to services such as healthcare,schools,grocery shopping,etc. 4 Public transportation and related facilities are available(e.g., bus shelters, accessible stops,etc.)or transportation will be provided by the development 5 Project is located in an area of the county traditionally underserved by housing development 3 6. Community Sponsorship/Support(20 points): 19 Scoring Criteria Maximum Points Applicant can show evidence that they coordinated with other organizations to complement/support the proposed project 6 Applicant can show evidence that they involved the intended beneficiaries of the project in the planning process and that the outreach and marketing plan is 6 inclusive Applicant can demonstrate it has been actively involved,or describe the steps it will take to become actively involved, in the County's Consolidated Planning process to 4 identify and address a housing need related to the proposed project Applicant has developed,or can demonstrate plans to develop, links with other community activities to provide holistic community services 4 7. Project Feasibility(30 points): Scoring Criteria Maximum Points Applicant can demonstrate site control,zoning compliance,and timely and feasible construction schedule 10 Funding(other than County funding)is in place at time of application 10 Applicant's proposal is complete and presents a proposed budget and financial model that is appropriate based on reasonable assumptions 10 8. Developer Experience(42 points): Scoring Criteria Maximum Points Applicant has experience carrying out comparable projects to that proposed and has met regulatory compliance for previous projects 10 Applicant has a proposed team with demonstrated development, managerial,and financial management capabilities in prior projects 10 Applicant and team members have a successful record of meeting proposed budgets and timelines 10 Project sponsor is a nonprofit housing provider 12 Total Points: out of 234 ORANGE COUNTY NORTH CAROLINA Orange County Affordable Housing Bond Program Quarterly Report Year: Q1 ❑ Q20 Q30 Q40 Project Name: Funded Organization: Budget/Leveraging Current Total Development Cost: $ Total Expenditures this Quarter: $ Cumulative Total Expenditures: $ Amount Leveraged this Quarter: $ Cumulative Total Leveraged: $ Please list each funding source you have leveraged this quarter and the amount of each source: Progress to Date Total Number of Units Proposed: Number of Units Under Construction This Quarter: Number of Units Completed This Quarter: Cumulative Units Completed: $ Have there been any changes in the project timeline since your last Quarterly Report? If so, please explain. Please describe any challenges encountered this quarter. Beneficiaries Total Number of Households Proposed: Number of Households This Quarter: 21 Cumulative Number of Households Served: Please describe any marketing and outreach activities to date related to lease-up and sale to proposed beneficiaries. Please list the number of households in each income category: 0-30%AM I: 31-60%AM I: 61-80%AM I: >80%AM I: Please list any other beneficiary details, such as households with special housing needs served.