affordable homebuild partnership program · the home investment partnership program (home) provides...

Memphis, TN 38103

170 North Main

THE CITY OF MEMPHIS

DIVISION OF HOUSING AND COMMUNITY

AFFORDABLE HOMEBUILD PARTNERSHIP

PROGRAM

FY 2021

GUIDELINES FOR SUBMITTING PROPOSALS

The Division of Housing and Community Development

FY20 Affordable Single Family Housing Program 1

Part I: Introduction

The City of Memphis Division of Housing and Community Development (HCD)

Guidelines for Submitting Proposals For

Affordable Homebuild Partnership

The Division of Housing and Community Development, "HCD", is the City of Memphis'

community development organization. HCD administers several programs which have been

created through Federal, State and local governments which are aimed at achieving public goals

such as urban redevelopment, housing creation, historic preservation, slum and blight removal,

and job creation. Other programs are aimed at providing social services and facilities for the

homeless. Our measurement of success is measured by the expansion/increase in the availability

of affordable housing units produced within the City of Memphis.

Part II: Program Description

The Affordable Homeownership & Rental Development Office within HCD is the custodian of the

funds available for the development and/or re-development of housing. Our programs are

targeted to reimburse developers for cost associated with creating affordable housing, to assist

individuals and families whose incomes are determined to be at or below 80% of area median

income as set forth by The Office of Housing and Urban Development, HUD. Such income limits

are set annually and can be found on the web site for HUD, www.HUD.gov, and are listed on

Appendix A-Agency Profile Instruction Packet. Our funding sources are NOT intended to

provide the primary or principal source of financing for a development but are intended to

provide financial incentives sufficient to fill "gaps" which would otherwise exist in the

development of affordable houses for low to moderate income families.

Part III: Goals and Objectives


The goal of the Strategic Community Investment Fund (SCIF) process is to provide a unified and

competitive application process for developers of affordable housing. The quality of such housing

is essential to the City's dedication in providing safe, decent, and sanitary housing for our low-to-

moderate income residents. By creating affordable housing, we are supporting the City’s

commitment to the renewed development of targeted areas.

Specific objectives of the application process are to:

1. Encourage the construction and/or rehabilitation of affordable housing units within the

targeted neighborhoods of Memphis and those neighborhoods in the greatest need of affordable

housing as denoted by the SCIF General Application.

2. Encourage the development of appropriate housing units for persons with special needs,

including seniors and persons who are homeless and/or have disabilities.

3. Encourage and promote ENERGYSTAR, Energy Efficiency, and Green building practices in

Affordable Housing.

Part IV: Other Financial Resources to Explore:

There are financing enhancements that developers can utilize to ensure affordability of affordable

housing units. (see Attachment I)

Part V: Available Sources of Funding for FY2021

The Affordable Homeownership & Rental Development Office currently utilize funding from

HUD's HOME Investment Partnership Program (HOME) for eligible rental projects. This funding

source is outlined below and with various important attachments and exhibits. The Attachments

and Exhibits are documents which accompany these guidelines to provide applicable information

and formats in which documents should be presented. Please be sure and read the packet

thoroughly before completing the application to ensure that your project complies with the

funding source guidelines.


Eligible Applicants

The HOME Investment Partnership Program (HOME) provides formula grants to states and

localities that communities use - often in partnership with local non-profit groups to fund a wide

range of activities including building, buying, and/or rehabilitating affordable housing or

providing direct rental assistance to low-income people. HOME is the largest Federal block grant

to state and local governments designed exclusively to create affordable housing for low-income

households. (See Attachment II)

Federally Funded Projects:

Federal dollars can be used for rehabilitation, new construction and site acquisition, among other

expenses. These dollars will be administered through the Affordable Homebuild Partnership and

will be in the form of a low interest loan with payback requirements. All funding committed to

approved projects will reimburse Developers for eligible costs through approved draw requests.

Eligibility requirements for the federal funding sources can be found in Exhibit "II", attached.

The minimum loan terms will coincide with the HOME Affordable Program Guidelines. The

maximum loan amounts will coincide with the Federal Housing Administration (FHA) Single

Family Mortgage Program Data. Income limits will coincide with HUD requirements please see

Attachment IV.

All project(s) requesting federal funding will be subject to a maximum funding cap of $750,000.00.

The total loan/grant amount for federally funded projects will not exceed $750,000.00 per project.

There is a limited amount of HOME funding, therefore, leveraging of other funds, public and/or

private, will be critical to the success of a project.

Part VI: Guidelines

1. Each applicant(s) must complete and submit one Agency Profile and one Affordable

Homebuild Partnership Application in the electronic portal.


Eligible Projects

5. All applicants including developers and their principal partners and contractors must be

current in all financial obligations to the City of Memphis. The City of Memphis will not award

HOME funds to an individual, organization or agency that has failed to complete an HOME-

funded project or that has an outstanding monitoring finding, disallowed cost, defaulted loan,

debarment actions, or any other legal encumbrance.

6. Nonprofit developers must be established as a 501 ( c )(3) or (4) and be incorporated in the State

of Tennessee, and be in good standing, as evidenced by a tax exemption determination letter from

Internal Revenue Service (IRS) and a Certificate of Existence filed with the Tennessee Secretary of

State's Office that is active in all respects.

7. Applicants must disclose all identity of interest relationships/contracts and /or costs involved

in a transaction, including during the development period and following the completion of the

project. An "identity of interest is any relationship based on family ties or financial interests

between or among two or more entities involved in a project-related transaction which reasonably

could give rise to a presumption that the entities may not operate at arms-length. Therefore, if

there is any question about whether an identity of interest may exist, the relationship should be

disclosed and explained to the City.

3. All applicant(s) can be a current participant in one (1) existing project(s), within the

Developmental Department of HCD during each application cycle.. The existing project(s) must

be underway with at least 75% of contracted funds drawn at the time of the new application in

order to be considered.

1. Single Family projects must contain a minimum of five (5) units.

2. Each applicant(s) must have a minimum of two years of experience with the construction

and sale of single family housing. If said applicant(s) doesn’t have the minimum experience

requirements, that applicant(s) can partner with an individual(s) and/or agency(ies) with the

required experience as stated above. The partnering agency(ies) and/or individual(s) must

provide written proof of partnership agreement with all partners.

4. All applicant(s) must be current with city and county taxes as it relates to the subject

property.


11. Maximum amount of federal funding available per project is $750,000.00.

1. Targeted redevelopment areas have been implemented as a part of the SCIF process.

Priority will be given to applications for projects that are proposed within these targeted areas.

Please refer to the referenced targeted neighborhoods map included in the Agency Profile.

6. All units constructed should be sold to eligible low to moderate income buyers upon

completion of the project.

2. The units in the development can be contiguous or infill lots, but they must be located within

the same zip code of the initial project site.

3. All project(s) must serve a low to moderate income population as determined by HUD.

8. The housing sales price for all single family units in each project must not exceed $255,000,

95% of the area median purchase price as determined by the Housing Trust Fund 2019

Homeownership Value Limits Data and referenced in Attachment IV.

4. The subject lots must not have any delinquent City or County taxes, and no delinquent or

defaulted loans.

5. The funding awarded to project(s) under this program will be disbursed by reimbursement

only.

9. All projects designed to be Energy Efficient, meet ENERGY STAR guidelines, Eco build and

Green Practices will be given priority within the targeted areas.

Part VII: Disclaimers

7. The subject property(ies) must not have received HOME funding in the past 20 years.

10. Strategic Anchor Areas have been implemented by the Memphis 3.0 Plan and are identified

as a part of the SCIF process. Priority will be given to applications for projects that are proposed

within these Strategic Anchor Areas. Please refer to the referenced Anchor Area maps included in

the link below.

(https://docs.wixstatic.com/ugd/100a0d_4c40d3f0fa9d45139ad7cbcdad411331.pdf)


1. Completed Agency Profile

2. Completed Affordable Homebuild Partnership Program Application including:

* Sources and Uses Statement

* Project Cost Summary

* Cash Flow Pro forma

* Rehab/New Construction Work Write Up

* Development Timeline & Draw Schedule

Deliverables Required to be considered for a Preliminary Award

8. All applications must submitted via the electronic portal.

2. LATE APPLICATIONS WILL NOT BE ACCEPTED. Applications are due no later than

Wednesday, January 31, 2019 at 5:00 p.m. via electronic portal. No applications will be accepted

after 5:00 p.m. on the due date.

3. Deficient Applications: The Development Department may not accept any unsolicited

information from an applicant after the due date. However, we reserve the right to contact an

applicant for clarity on any item within the application or to correct technical deficiencies.

4. City Insurance Requirements: All developers awarded funds through the SCIF will be

required to have insurance for the project. Insurance coverage must meet City of Memphis

requirements. The City of Memphis must be named as an additional insured and the insurance

must remain in full effect until completion of the project.

5. All applicant(s) must be current with city and county taxes as it relates to the subject

property, and must not have any delinquent or defaulted loans.

6. The City reserves the right to accept or reject any proposal without notification.

7. If the scope and/or location of a project(s) changes, the project(s) is automatically terminated,

but can be resubmitted in the next application cycle.

Part VIII: Preliminary Award Requirements

3. Meet all eligible applicant and eligible project requirements.


Deliverables Required Prior to Execution of a Contract Agreement

Part IX: Proposal Sections

1. A completed Funding Identification Form, Exhibit II, that includes all of the information

requested.

3. A project specific market study that details the support of a particular housing type and

achievable proposed rents in a specific area. The cost of providing this market study is an eligible

project expense and should by included in the project budget.

4. Sales and Affirmative Marketing Plan.

5. Evidence of site control, which may be evidenced by deed, sales contract, or option agreement.

6. A full set of final approved construction plans. This set of plans should include all applicable

site plans with a copy of any approval certification issued by federal, state, and local government

including the local utility agency.

7. A Certificate of Insurance that meets the City of Memphis Insurance Requirements.

All applicants must use the electronic portal to submit the application and all attachments

requested. After a review of each proposal has been conducted, the staff may request additional

documentation or request clarification on specific items.

8. Meet all applicable HOME Investment Partnership Program requirements.

Part IXI: Post Award Requirements

Following the approval of an award by the City of Memphis, selected applicants will be required

to enter into a Conditional Commitment Agreement with the City of Memphis. In addition, the

Conditional Commitment will require certain deliverables to be submitted to the City of Memphis

by June 01, 2019. Such deliverables will include, but are not limited to the items listed below:

2. Firm written financial commitments for any other funding sources. All for-profit applicants

must make a 5% - 30% equity investment, Attachment V, backed by commitment letter.


1. Applicant Name:

Address:

Telephone:

Facsimile:

Email:

Address:

Telephone:

Facsimile:

Relationship to

Applicant:

Address:

Telephone:

Facsimile:

Email:

No

A. Applicant Information

2. If partnership, name of all partners, including general partners, limited partners,

etc. Please provide a copy of partnership agreement:

3. Designated Contact Person: (Please provide person with decision making

authority with whom correspondence concerning this application can be forwarded.)

4. Is there a consultant?

If corporation, name and title of executive officer:


Yes

Name:

Company Name:

Address:

Telephone:

Facsimile:

No

Yes

No

5. Applicants Federal Taxpayer Identification Number:

If yes, provide the following:

B. Development Information

1. Development Name:

2. Development Street Address & Zip Code (If vacant property, please provide all

parcel numbers). Please also attach a copy of legal description:

a. Choose all that apply:

New Construction

Acquisition

Rehabilitation

3. Development Category and Population:

b. If acquisition, rehabilitation, or acquisition/rehabilitation, is

the development occupied?

6. Nonprofit Status:

a. Is the Applicant a 501 (c)(3) non-profit organization

If yes, provide the following items:

1. Attach evidence of non-profit status.


Yes

If yes, please provide the percentage of occupancy:

Family

Elderly

Other

No

Yes

Please provide dates permits issued:

Total number of units

No

If yes, please note what work has been started, and provide a

percentage of completion:

Number of 2 bedroom units



Estimated monthly rent



c. Choose the category that describes the population to be

served:

4. Has construction begun?

Is there one or more manager or employee units in the Development?

6. Manager/Employee Units

5. Number of Units and Estimated Rents

Number of 1 bedroom units Estimated monthly rent


Yes

No

Yes

# of Bedrooms/unit # of

Bathrooms

/unit

Square

Feet Per

Unit

# of

units/

Bedroom

type

estimated

sales/rents

If yes, how many?

Unit type(s)

If so, will each unit be occupied by an income-eligible

7. Please provide a breakdown of all units by square footage and estimated sales

price or monthly rent. All units in the development must be listed, including all

manager/employee units. Indicate manager/employee units with an asterisk.

Square Footage and Estimated Sales/Rents Chart

8. Development Buildings


one story single family

two story single family

townhouse

condominium

other

Provide number of buildings with dwelling units:

Provide the total number of buildings in Development:

Describe all non-residential buildings, including size (square feet) of

each:

Total square feet in development (all buildings):

9. Development Size

1. Community impact – Describe in detail how the project will impact the community through

elimination of slum and blight, increase the availability of safe, decent and affordable housing,

how the project compares to other developments within the targeted area and the condition of

those properties:

Identify acreage or lot size of entire Development:

10. Development Design

Check the one design that best describes this Development:

C. Project Impact (30 points)


2. City's development efforts – Describe other projects within the immediate area that are

currently under construction or planned that will enhance the overall effort to revitalize the

neighborhood:

3. Job creation - Describe in detail the number of jobs which will be created by this project:

4. MBE/WBE Involvement -Provide the percentage of Minority Business Enterprise and

Women-owned Business Enterprise that will be involved in this project:


Name:

Principal(s):

Address:

5. Programs Within Project – Describe in detail all resident programs and activities that will be

provided by the Applicant:

6. Quality of Life – Describe in detail all design and other physical amenities that will provide

an enhanced quality of life, energy efficiency, increased security, handicapped accessibility, or

other features in this development:

D. Applicant & Project Participants & Experience (30 points)

Participants must be able to demonstrate a minimum of 2-year history with projects that can be

evaluated. If the applying participant does NOT have a 2-year history, they MUST partner

with someone who does have a PROVEN track record in the development of same or similar

projects.

Provide the names, addresses, telephone numbers, and past performance of the development

team , which should consist of Developer, Management Agent, General Contractor,

Architect/Engineer, Attorney, and Accountant:

1. Experience of Developer:


Phone:

Email:

Development Name Location # of

Units

New

Constructi

on or

Rehab

Unit Type

Single

Family,

Duplex,

Triplex,

Quad, or

Apartment

Source of

Financin

g

LIHTCs,

Bonds,

HOME,

CDBG,

Private

No

Yes

Name:

If entity, name of

principal(s):

2. Experience of General Partner:

b. Has the Developer, or any of the Principals of the Developer been associated with any

development that gone into default or near default?

a. Fill out the chart below

If yes, attach a detailed explanation of the situation(s) and resolution labeled “Troubled

Development Status.”


Address:

Phone:

Email:


Units

New

Constructi

on or

Rehab

Unit Type

Single

Family,

Duplex,

Triplex,

Quad, or

Apartment

Source of

Financin

g

LIHTCs,

Bonds,

HOME,

CDBG,

Private

No

Yes

Name:

3. Experience of Real Estate/Management

Agent.

a. Fill out the chart below

b. Has the General Partner, or any of the principals of the General Partner been associated with

any development that has gone into default or near default?

If yes, attach a detailed explanation of the situation(s) and resolution labeled “Trouble

Development Status.”


Principal(s):

Address:

Phone:

Email:


Units

New

Constructi

on or

Rehab

Unit Type

Single

Family,

Duplex,

Triplex,

Quad, or

Apartment

Source of

Financin

g

LIHTCs,

Bonds,

HOME,

CDBG,

Private

No

Yes

Name:

Address:

a. Fill out the chart below.

b. Has the Real Estate/Management Agent, or any of the principals of the Real

Estate/Management Agent been associated with any development that has gone into default or

near default?

4. Experience of General Contractor.

If yes, attach a detailed explanation of the situation label “Trouble Development Status.”


Phone:

Email:


Units

New

Constructi

on or

Rehab

Unit Type

Single

Family,

Duplex,

Triplex,

Quad, or

Apartment

Source of

Financin

g

LIHTCs,

Bonds,

HOME,

CDBG,

Private

5. Experience of Architect.

Name:

Address:

Phone:

Email:





Units

New

Constructi

on or

Rehab

Unit Type

Single

Family,

Duplex,

Triplex,

Quad, or

Apartment

Source of

Financin

g

LIHTCs,

Bonds,

HOME,

CDBG,

Private

Name:

Address:

Phone:

Email:

6. Experience of Engineer.




Units

New

Constructi

on or

Rehab

Unit Type

Single

Family,

Duplex,

Triplex,

Quad, or

Apartment

Source of

Financin

g

LIHTCs,

Bonds,

HOME,

CDBG,

Private

7. Experience of Attorney.

Name:

Address:

Phone:

Email:


Units

New

Constructi

on or

Rehab

Unit Type

Single

Family,

Duplex,

Triplex,

Quad, or

Apartment

Source of

Financin

g

LIHTCs,

Bonds,

HOME,

CDBG,

Private

a. Fill out attached chart.


8. Experience of Accountant.

Name:

Address:

Phone:

Email:


Units

New

Constructi

on or

Rehab

Unit Type

Single

Family,

Duplex,

Triplex,

Quad, or

Apartment

Source of

Financin

g

LIHTCs,

Bonds,

HOME,

CDBG,

Private

a. Fill out attached chart.


Yes

No

or

G. Project Cost Summary Sheet

Site Control must be demonstrated by the Applicant prior to completion of a development

agreement with the City of Memphis. At a minimum, a Contract for Purchase and Sale must be

held by the applicant at the time of application. Please check the box that indicates how the site is

currently controlled:

a. Contract for Purchase and Sale in the name of the seller

b. Recorded Deed in the name of the applicant

3. Zoning and Land Development Regulations

a. Is the site appropriately zoned for the proposed Development?

b. Indicate the zoning designation(s)

c. Current zoning permits units per acre,

for the site (PUD).

d. total number of Units in Development

If applicant currently owns the property please provide documentation of the current ownership,

this documentation will help substantiate site control.

F. Property Ownership Status

1. Please include the name in which the property is held.

2. Site Control


Please complete the Project Cost Summary Sheet attached as Exhibit "III" for the proposed

project. Please identify which costs will be expended with the funds requested from the City of

Memphis. This form MUST be completed in its entirety and should be accompanied by a

completed Cost Estimate or Schedule of Values provided by your architect or contractor. If both

documents are not submitted with the completed application, the application will be denied.

H. Single Family Applicants -- Developer's Cash Flow Statement (50 points)

1. Total Development Costs:

Please complete the Housing Development Cash Flow Statement attached as Exhibit "IV" for the

proposed project. Assumptions in the Cash Flow MUST be supported by the Market Study.

All project(s) requesting federal funding will be subject to a maximum funding cap of $750,000.00.

The total loan/grant amount for federally funded projects will not exceed $750,000.00 per project.

I. Rehabilitation/New Construction Work Write Up (20 points)

Please submit a complete work write up for each unit in the same format as Exhibit "V". Please

be advised that ALL Work Write Ups MUST follow the CONSTRUCTION AND

REHABILITATION GUIDELINES available in print form or at http://scif.memphistn.gov. The

work write up must be performed by a current licensed architect or general contractor in the state

of Tennessee.

J. Development Time Line and Draw Schedule (20 points)

The development time line and draw schedule is a task driven timeline that outlines the

developers time line to meet critical dates for financing, design, construction, lease up/sale and

occupancy of units. The developer shall submit a detailed schedule outlining those tasks affecting

the critical date to complete the project and should also identify funding draw requirement to

achieve the goal. This schedule should also be accompanied by a detailed construction schedule

for completion as prepared by the General Contractor selected for the project.

Part IX: Evaluation of Proposals


1 Project Impact 30 points

2 Applicant and Project Participant Experience 30 points

3 Project Budget

6 Cash Flow

11 Construction Work Write Up

12 Development Time Line & Draw Schedule

15 Energy Efficiency

16 Anchor Areas

17 Senior Housing

30 points

This application will be evaluated by an external review committee selected by The Division of

Housing & Community Development. The application will be reviewed according to a scoring

matrix based on developer capacity, financial feasibility, and how project relates to HCD’s

priorities. Please be sure that all areas of the application are complete to ensure that all proposals

submitted can be reviewed and scored competitively. There will be a maximum of 225 points that

can be earned for all Affordable Single Family Housing Applications. All applications must earn

at least 85% of maximum points (191) to be considered for approval. The underwriting criteria

and maximum points that can be earned for each area are listed below:

20 points

15 points

15 points

15 points

20 points

50 points


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