home rhd application, compliance and monitoring. home rhd applications home rhd funding process...

HOME RHD Application, Compliance and Monitoring

HOME RHD Applications

HOME RHD Funding

• Process• Amount• Timetable• Threshold

criteria• Scoring criteria• Getting started


HOME RHD has funding for low-income rental housing in Wisconsin!

Per project

HUD State of Wisconsin Developers/CHDOs

$ $ $


Funding amount depends on number of factors, such as:• Number of HOME units• Number bedrooms/unit• CMI setaside• CHDO/non-CHDO status of

applicant


• Racine• Dane County• Green Bay• Eau Claire • Rock County

Consortium• Kenosha• La Crosse• Madison• Milwaukee• Milwaukee County

Consortium• Home Consortium

(Waukesha, Washington, Jefferson, Ozaukee counties)

WI Division of Housing HOME RHD

funds all areas of

Wisconsin not covered

by PJs:


3 funding rounds: 2 competitive, 1 first-come, first-serve

• June round: Open to all for- and non-profit, CHDO and HA’s applicants

• October 15th round: For CHDO’s, non-profit developers and supportive housing projects

• Rolling round: For any small, rural project (< 20 units), or supportive housing project (of any size) Funding will be awarded as long as funds last to projects that meet threshold and score at least 30 points


Threshold items

• U.S. Congress and HUD enacted a series of measures* so that HOME funds only go into projects that have undergone underwriting and due diligence to assure financial sustainability over the long-term.

*2012 Appropriations bill and HOME Final Rule 7/2013


• Long term financial viability as demonstrated by s/u, 15 year proforma with minimum of 1.05 DCR, income/expense spreadsheet and development budget

• CHDOs must have valid CHDO certification

• No debarment of development team entities

• Demonstration of market demand (market study)

• Demonstration of housing need

• WI DFI “good standing”

• Readiness to proceed: zoning, site control, financing commitments/LOIs

• (1) 30% CMI HOME unit and 20% of HOME units at 50% CMI (balance at 60%)

Threshold items


Scoring items: 100 possible points

Energy efficiency and sustainable features: maximum 10 points

Preservation of any subsidized property, including at least

$20k/HOME unit of rehab: 20 points> 50% visitable HOME units:

10 points

Number of 30% HOME units OR Number of HOME

units for homeless populations with services OR Number of

HOME units for supportive housing/section 811 units (non-homeless):

maximum 40 points

Green building

standards

Energy star appliances

Resource conservation

HOME $/HOME unit: maximum 20 points


We can also provide access to our Applied Population Lab housing software: WHIM WHIM helps you assess the need for specific types of housing in particular areas of Wisconsin

We can help walk you through the application process: review your financial projections, make suggestions, etc.

Take a look at the HOME RHD Guide, browse through it, then call us. We enjoy talking about developing or acq/rehabbing rental housing – it’s our passion.

We want new developers to explore HOME funding!


UW-Madison Applied Population Labmapping and analysis toolWHIM

Contact Wisconsin DOH for software access

• Unemployment• Area housing age• Income• Poverty• Rental and owner-occupied housing costs

WHIM Mapping a variable: Counties

WHIM Mapping a variable: Census tracts

WHIM Mapping other variables

WHIM Mapping variables: Zooming in

WHIM Mapping variables: Targeted % of CMI

WHIM Mapping variables: Shelters

WHIM Mapping variables: Query tool

WHIM Downloads

HOME RHD COMPLIANCE

HOME RHD COMPLIANCEProject Set-Up,

Payment Request, Completion

Reports: Used during the construction/rehab

phase

Inservice Report: due April 21st

each year

RHD Data Compliance

Report: due December 21st

each year

Regularly check the DOH website to ensure you are using the most current forms!

Where to find HOME forms: www.Housing.wi.gov

Project Set-Up

Payment Requests

Completion Reports

HOME RHD COMPLIANCE DURING CONSTRUCTION/REHAB

• Set-up is used to identify key aspects of the project such as total anticipated costs and sources of funds, this is completed prior to the first payment request.

• Payment requests must be accompanied by back-up documentation justifying the expenses. The number of payment requests will be identified in your contract.

• Completion report is done when the HOME units are fully leased and you may draw your remaining 5%. This reviews final sources of funds and provides us with tenant information.

HOME RHD COMPLIANCE

• Allows us to monitor the health of your project

• What is required:• An operating budget for the current year and

your projected budget for the upcoming year

• Your audited/reviewed financials for the project, or your entity if the project does not have independent financials

• Computation of the Debt Coverage Ratio (DCR)

• Certification that you carry insurance for the project that names DOH as the mortgagee, or an “additional interest” if the funds were provided as a grant or the mortgage has been satisfied

Inservice Report

Due April 21st

HOME RHD COMPLIANCE

•Ensures HOME units compliant with HUD rent and income limits•Covers period of October 1 – September 31•Lists all tenants who resided in HOME units in this time period.

•Information collected:•Designation of the HOME unit (30% CMI, 50% CMI, 60% CMI)•Date of move-in•Rent: current and move-in•Utility allowance if utilities paid by tenant: current and move-in•Rent subsidy amounts and sources (if applicable):• current and move-in•Tenant income: current and move-in•HOME unit rent, income limits: current and move-in

HOME RHD Data

Compliance Report

Due December 21st

We are here to trouble shoot and provide solutions

HOME RHD COMPLIANCE

Electronic form includes helpful notes and makes calculations easier

Compares tenant information with HUD limits

• Rent limits are based on the county, number of bedrooms and the initial designation of the HOME unit (30%, 50%, 60% or SRO)

• Income limits are based on the county, household size, and initial designation of the HOME unit (30%, 50% or 60%)

Call RHD staff if you are having trouble completing the form

Unit (Apt.) #

60%; 50%; 30%; SRO

No. of Bedrooms

Util-incl? Yes/ No

Tenant Last Name

Initial Lease Date

Tenant Income at Move-in

HUD Listed Income Limit

Actual % CMI

Tenant Rent at Move-in

Rent Subsidy? If Yes, Source

Amount of Other Rent Subsidy

Utility Allowance

No. in Household

HUD Listed Rent Limit ($)

HOME RHD COMPLIANCEActual % of CMI (The tricky one!)CMI = “County Median Income”

HUD prints income limits by state, county, and household size annually

• Take the HUD listed 50% income limit (listed as “very low income” limit) for your county and the appropriate household size

• Double that income limit and divide by the household’s income

Income

100% CMI= Household % CMI

HOME RHD COMPLIANCEActual % of CMI (The tricky one!)

Step 1: $23,450 * 2 = $46,900 (or 100 % CMI)

Step 2: $18,600 / $46,900 = 39.7 % CMI

e.g. 2 person household in Bayfield County earns $18,600 per year

OK for “Low unit” (<50% CMI)

OK for “High unit”(<60% CMI)

Too much for “Sub unit”(<30% CMI)

HOME RHD Monitoring

HOME RHD Monitoring

Projects with HOME RHD funding monitored by Division of Housing or WHEDA staff

• Requirement of funding • Projects monitored every three years• Physical building inspection• Administrative inspection

On-site Monitoring:

HOME RHD Monitoring

3 years3 years

Project completion

HOME RHD Monitoring

Paperwork requests from Division of Housing

• Leases (current) • Tenant income documentation (most recent recertification)• Income calculations for tenant qualification (original and most recent recertification)• Original application with signed release of information and original income verification

For requested HOME units:

HOME RHD Monitoring

Documentation Requested

• Certified rent roll with designated HOME units specified, CMI designation, actual percentage of CMI, and current rent.

• Subsidy type for units (LIHTC, Section 8, RD, etc.) with income/rent limit documentation for each - could be part of rent roll or separate.

• Project LURA with stated HOME units and income restrictions.

For the building:

HOME RHD Monitoring

Paperwork requests from Division of Housing

• Unit inspection records• Copy of Tenant selection process with approval/denial/appeal process described• Utility allowance calculations, if any, with source of the allowance• Marketing efforts including MBE/WBE, Section 3, Fair Housing labeling, etc.

For the building:

The most you can charge for rent for a

HOME unit. Includes the utility

allowance

HOME RHD Monitoring

Basic Rent Roll: Information that should be captured

Income for household

Section 8 voucher + utility allowance + rent paid by tenant

List put out by Housing Authority. Add numbers for all utilities the tenant pays

on their own.

Amount paid by cash/check

to landlord each month.

<-- Needs to be smaller than HOME rent limit

Name (Last First) UnitMove-in date

Number residents Bedrooms

Total income

HOME unit?

HOME rent limit

Total HOME monthly rent

Section 8 voucher

Utility allowance

Garage fee

Rent paid by tenants HOME unit% Actual CMI% Notes

Jones, John P. 103 5/1/2011 1 1 $15,525.00 x $546.00 $513.00 $125.00 $48.00 $30.00 $370.00 50% 34.05% Lease renewed 5/1/2013

Bonham, John 104 6/1/2012 2 2 $27,050.00 x $669.00 $619.00 $59.00 $560.00 60% 51.92% Police call 6/1/12 re noise complaint; Maintenance inspection 4/6/13

Dreja, Chris

Relf, Keith 105 8/15/2009 1 2 $29,050.00 $30.00 $780.00 Plans to move out 7/1/2014, ok'd 1 month sublet

HOME RHD Monitoring

% of CMI Calculation

Use Excel or other software to calculate % of CMI for all HOME unit households

NameHOME

unit

Tenant gross yearly income Includes wages, child support, social security, and earnings from bank accounts and investments.

CMI 50% income "Very Low Income" Based on family size. Found on HUD.gov by county or city area.

HOME unit CMI% restriction (%) Tenant CMI %

example Jane Smith 125 $15,350.00 $23,750.00 50 32.32%

On-site Monitoring:

• Building exterior• Interior HOME units• Common areas

Building inspection

HOME RHD Monitoring

Remember to give tenants notice of entry!

HOME is moving to UPCS inspection standards

Questions?

Kate BloodProgram Manager Joanna [email protected] [email protected] 608.264.7839

HOME RHDDivision of HousingDepartment of AdministrationPO Box 7970101 E. Wilson Ave.Madison, WI 53707-7970

mailto:[email protected]

mailto:[email protected]

home rhd application, compliance and monitoring. home rhd applications home rhd funding process...

Documents

home funding

home funds

home rhd applications

home rhd guide

visitable home units

cmi home unit

home final rule

points number